10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)
x	QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED September 30, 2017
¨	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

FOR THE TRANSITION PERIOD FROM __________ TO __________

COMMISSION FILE NUMBER 000-55661

EOS Inc.

(Exact name of registrant as specified in its charter)

Nevada	30-0873246
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Room 519, 5F., No. 372, Linsen N. Road,

Zhongshan District,

Taipei City 104, Taiwan (R.O.C.)

(Address of principal executive offices, Zip Code)

+8862-2568-3278

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	x
(Do not check if smaller reporting company)		Emerging growth company	¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨No x

The number of shares of registrant’s common stock outstanding, as of November 10, 2017, is 64,122,997.

TABLE OF CONTENTS

		Page
PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements		3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operation		14
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		16
Item 4.	Controls and Procedures		16
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings		17
Item 1A.	Risk Factors		17
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		17
Item 3.	Defaults Upon Senior Securities		17
Item 4.	Mine Safety Disclosures		17
Item 5.	Other Information		17
Item 6.	Exhibits		18
SIGNATURES			19

2

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

FINANCIAL STATEMENT SCHEDULES

Financial Statements:
Consolidated Balance Sheets	4
Consolidated Statements of Operations and Other Comprehensive Income (Loss)	5
Consolidated Statements of Cash Flows	6
Notes to Consolidated Financial Statements	7 - 13

3

EOS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	September 30,			December 31,
	2017			2016
	(Unaudited)
Assets
Current Assets
Cash and cash equivalents	$	8,740		$	42,086
Account receivable		83,481			-
Accounts receivable – related parties		130,528			-
Inventory		3,492			1,919
Advance to suppliers		40,989			-
Prepaid expenses		4,995			6,311
Total current assets		272,225			50,316
Property and Equipment, net		7,737			3,180
Security deposit		7,663			2,544
Total Assets	$	287,625		$	56,040
Liabilities and Stockholders’ Equity
Current Liabilities
Accounts payable		10,023			2,778
Accrued expenses		16,070			24,089
Due to shareholders		304,392			263,879
Advance from customers		-			34,797
Total current liabilities		330,485			325,543
Total liabilities		330,485			325,543
Stockholders’ Equity
Common stock, $0.001 par value; 75,000,000 shares authorized, 64,122,997 shares issued and outstanding		64,123			64,123
Additional paid-in capital		90,000			90,000
Accumulated deficit		(191,551	)		(424,166	)
Accumulated other comprehensive income (loss)		(5,432	)		540
Total stockholders’ equity(deficit)		(42,860	)		(269,503	)
Total Liabilities and Stockholders’ Equity	$	287,625		$	56,040

The accompanying notes are an integral part of these consolidated financial statements.

4

EOS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

	FOR THE NINE MONTHS ENDED SEPTEMBER 30,						FOR THE THREE MONTHS ENDED SEPTEMBER 30,
	2017			2016			2017			2016
Net Sales:
Net sales	$	109,590		$	-		$	93,822		$	-
Net sales to related parties		446,778			273,407			178,640			107,812
Total		556,368			273,407			272,462			107,812
Cost of sales		127,571			126,974			61,674			59,337
Gross profit		428,797			146,433			210,788			48,475
Selling, general and administrative expenses		256,401			331,686			84,582			82,543
Income (loss) from operations		172,396			(185,253	)		126,206			(34,068	)
Other income (expenses)
Interest income		14			47			-			-
Other income – related party		59,460			-			1,338			-
Gain (loss) on foreign currency exchange		744			(4,279	)		(273	)		(1,950	)
Total other income		60,218			(4,232	)		1,065			(1,950	)
Income (loss) before provision for income taxes		232,614			(189,485	)		127,271			(36,018	)
Provision for income taxes		-			-			-			-
Net Income (loss)	$	232,614		$	(189,485	)	$	127,271		$	(36,018	)
Weighted average number of common shares:
Basic and diluted		64,122,997			62,152,194			64,122,997			64,122,997
Net income (loss) per share:
Basic and diluted	$	0.00		$	(0.00	)	$	0.00		$	(0.00	)
Other Comprehensive Income (loss):
Net income (loss)	$	232,614		$	(189,485	)	$	127,271		$	(36,018	)
Foreign currency translation adjustment, net of tax		(5,972	)		(898	)		221			(827	)
Comprehensive (Loss) Income	$	226,642		$	(190,383	)	$	127,492		$	(36,845	)

The accompanying notes are an integral part of these consolidated financial statements.

 

5

EOS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Nine Months ended September 30,
	2017			2016
Cash Flows from Operating Activities
Net income (loss)	$	232,614		$	(189,485	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Depreciation		769			259
Foreign currency exchange (gain) loss		(744	)		-
Changes in assets and liabilities:
Decrease (Increase) in accounts receivable		(212,074	)		(3,038	)
Decrease (Increase) in inventory		(1,434	)		46,127
Decrease (Increase) in advance to suppliers		(40,761	)		(449	)
Decrease (Increase) in prepaid expense and other assets		1,735			(3,153	)
Decrease (Increase) in security deposits		(4,918	)		(2,636	)
Increase (decrease) in accounts payable		(6,447	)		(32,020	)
Increase (decrease) in accrued expenses		4,750			22,221
Increase (decrease) in advance from customers		(36,966	)		-
Increase (decrease) in due to shareholders		66,982			82,636
Net cash provided by (used in) operating activities		3,506			(79,538	)
Cash flows from investing activities
Purchase of equipment		(5,086	)		(3,717	)
Acquisition of subsidiary equity interest		(30,562	)		-
Net cash used in investing activities		(35,648	)		(3,717	)
Cash Flows from Financing Activities
Proceeds from issuance of common stock		-			100,000
Net cash provided by financing activities		-			100,000
Effect of exchange rate changes on cash and cash equivalents		(1,204	)		(889	)
Net increase (decrease) in cash and cash equivalents		(33,346	)		15,856
Cash and Cash Equivalents
Beginning		42,086			58,424
Ending	$	8,740		$	74,280
Supplemental Disclosure of Cash Flows
Cash paid during the year for:
Interest	$	-		$	-
Income taxes	$	-		$	-

The accompanying notes are an integral part of these consolidated financial statements.

 

6

EOS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDAED FINANCIAL STATEMENTS SEPTEMBER 30, 2017

(UNAUDITED)

Note 1. NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting and in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the unaudited consolidated financial statements contained in this report reflect all adjustments that are normal and recurring in nature and considered necessary for a fair presentation of the financial position and the results of operations for the interim periods presented. The year-end balance sheet data were derived from audited consolidated financial statements, but does not include all disclosures required by GAAP. The results of operations for the interim period are not necessarily indicative of the results expected for the full year. These unaudited consolidated financial statements, footnote disclosures, and other information should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

Organization

EOS Inc. was incorporated on April 3, 2015 in the State of Nevada. The Company’s business plan is to market and distribute skin care products, including masks and serums.

On November 18, 2016, the Company has set up a wholly-owned subsidiary in Taiwan to assist the Company to promote the business in Taiwan.

Emperor Star International Trade Co., Ltd., (“Emperor Star”), was incorporated on November 16, 2015 under the laws of Taiwan. The Company is in the business of marketing and distribution of various products, including detergents, nutrition supplements, and skin care products.

On May 3, 2017, the Company entered into and closed a Share Purchase and Sale Agreement (the “Purchase Agreement”) with Emperor Star and the shareholder of Emperor Star to acquire all issued and outstanding shares of Emperor Star in consideration of $30,562 in cash. As a result of the Purchase, Emperor Star becomes the Company’s wholly owned subsidiary. Upon consummation of the Purchase, the Company has assumed the business of Emperor Star and ceased to be a shell company.

Principles of Consolidation

The accompanying unaudited consolidated financial statements, including the accounts of EOS Inc. and its wholly owned subsidiaries in Taiwan, have been prepared in conformity with accounting principles generally accepted in the United States of America. Since the Company and Emperor Star are entities under Mr. Yu Cheng Yang’s common control prior to the acquisition of Emperor Star, the transaction is accounted for as a restructuring transaction. The Company has recast prior period financial statements to reflect the conveyance of Emperor Star’s common shares as if the restructuring transaction had occurred as of the earliest date of the financial statements. All material intercompany accounts, transactions, and profits have been eliminated in consolidation.

 

7

The functional currency of the subsidiaries in Taiwan is the New Taiwan dollars, however the accompanying unaudited consolidated financial statements have been translated and presented in United States Dollars ($). In the accompanying unaudited consolidated financial statements and notes, “$”, “US$” and “U.S. dollars” mean United States dollars, and “NT$” and “NT dollars” mean New Taiwan dollars. 

Going Concern

These unaudited consolidated financial statements were prepared on the basis of accounting principles applicable to going concern, which assumes the realization of assets and discharge of liabilities in the normal course of business. As shown in the accompanying unaudited consolidated financial statements, the Company had accumulated deficit of $191,551 and $424,166 as of September 30, 2017 and December 31, 2016, respectively.

The Company faces all the risks common to companies at development stage, including capitalization and uncertainty of funding sources, high initial expenditure levels, uncertain revenue streams, and difficulties in managing growth. The Company’s losses raise substantial doubt about its ability to continue as a going concern. The Company’s financial statements do not reflect any adjustments that might result from the outcome of this uncertainty.

The Company is currently addressing its liquidity issue by continually seeking investment capital through private placements of common stock and debt. The Company believes its current and future plans enable it to continue as a going concern. The Company’s ability to achieve these objectives cannot be determined at this time. These financial statements do not give effect to any adjustments which would be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts which may differ from those in the accompanying consolidated financial statements.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Classification

Certain classifications have been made to the prior year financial statements to conform to the current year presentation. The reclassification had no impact on previously reported net loss nor accumulated deficit.

Cash and Cash Equivalents

Cash and cash equivalents include cash and all highly liquid instruments with original maturities of three months or less.

 

8

Accounts Receivable

Accounts receivable are stated at carrying value less estimates made for doubtful receivables. An allowance for impairment of trade receivables is established if the collection of a receivable becomes doubtful. Such receivable becomes doubtful when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy or financial reorganization, and default or delinquency in payments are considered indicators that the receivable is impaired. The amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. An impairment loss is recognized in the statement of income, as are subsequent recoveries of previous impairments.

Inventory

Inventory is stated at the lower of cost and net realizable value. Net realizable value (NRV) is defined as estimated selling prices less costs of completion, disposal, and transportation. Inventory consists mainly of finished goods held for resale. Cost is determined on a weighted average cost method. The Company periodically reviews the age and turnover of its inventory to determine whether any inventory has become obsolete or has declined in value, and incurs a charge to operations for known and anticipated inventory obsolescence.

Property and Equipment

Property and equipment is carried at cost net of accumulated depreciation. Repairs and maintenance are expensed as incurred. Expenditures that improve the functionality of the related asset or extend the useful life are capitalized. When property and equipment is retired or otherwise disposed of, the related gain or loss is included in operating income. Leasehold improvements are depreciated on the straight-line method over the shorter of the remaining lease term or estimated useful life of the asset. Depreciation is calculated on the straight-line method, including property and equipment under capital leases, generally is five years. Depreciation expense is $769 and $259 for the nine months ended September 30, 2017 and 2016, respectively.

Impairment of Long-Lived Assets

The Company has adopted Accounting Standards Codification subtopic 360-10, Property, Plant and Equipment (“ASC 360-10”). ASC 360-10 requires that long-lived assets and certain identifiable intangibles held and used by the Company be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company evaluates its long lived assets for impairment annually or more often if events and circumstances warrant. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve breakeven operating results over an extended period. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Should impairment in value be indicated, the carrying value of intangible assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset. ASC 360-10 also requires assets to be disposed of be reported at the lower of the carrying amount or the fair value less costs to sell. Management has determined that no impairments of long lived assets currently exist.

 

9

Revenue Recognition

Revenues are recognized when products are shipped to customers, both title and the risks of ownership are transferred, and the collectability of accounts receivable can be reasonably assured. The Company’s standard shipping term is Free on Board (FOB) destination. Usually no sales returns, discounts or other allowances are provided to customers. Shipping and handling charges to customers are included in net sales. Shipping and handling charges incurred by the Company are included in selling, general and administrative expenses.

Advertising Costs

Advertising costs are expensed at the time such advertising commences. Advertising expenses were $50 and $23,953 for the nine months ended September 30, 2017 and 2016, respectively.

Post-retirement and post-employment benefits

The Company’s subsidiaries adopted the government mandated defined contribution plan pursuant to the Labor Pension Act (the “Act”) in Taiwan. Such labor regulations require that the rate of contribution made by an employer to the Labor Pension Fund per month shall not be less than 6% of the worker’s monthly salaries. Pursuant to the Act, the Company makes monthly contribution equal to 6% of employees’ salaries to the employees’ pension fund. The Company has no legal obligation for the benefits beyond the contributions made. The total amounts for such employee benefits, which were expensed as incurred, were $4,173 and $1,993 for the nine months ended September 30, 2017 and 2016, respectively. Other than the above, the Company does not provide any other post-retirement or post-employment benefits.

Net Income (loss) per Share

Basic income (loss) per share is computed by dividing net income by weighted average number of shares of common stock outstanding during each period. Diluted income per share is computed by dividing net loss by the weighted average number of shares of common stock, common stock equivalents, and potentially dilutive securities outstanding during each period. At September 30, 2017 and December 31, 2016, the Company does not have any outstanding common stock equivalents; therefore, a separate computation of diluted loss per share is not presented.

Income Taxes

The Company accounts for income taxes in accordance with ASC 740, Income Taxes, which requires that the Company recognize deferred tax liabilities and assets based on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit (expense) results from the change in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when, in the opinion of management, it is more likely than not that some or all of any deferred tax assets will not be realized.

Foreign-currency Transactions

Foreign-currency transactions are recorded in New Taiwan dollars (“NTD”) at the rates of exchange in effect when the transactions occur. Gains or losses resulting from the application of different foreign exchange rates when cash in foreign currency is converted into New Taiwan dollars, or when foreign-currency receivables or payables are settled, are credited or charged to income in the year of conversion or settlement. On the balance sheet dates, the balances of foreign-currency assets and liabilities are restated at the prevailing exchange rates and the resulting differences are charged to current income except for those foreign currencies denominated investments in shares of stock where such differences are accounted for as translation adjustments under Equity.

 

10

Translation Adjustment

The accounts of the Company’s subsidiaries were maintained, and their financial statements were expressed, in New Taiwan Dollar (“NTD”). Such financial statements were translated into U.S. Dollars (“$” or “USD”) in accordance ASC 830, “Foreign Currency Matters”, with the NTD as the functional currency. According to the Statement, all assets and liabilities are translated at the current exchange rate, Equity’s deficit are translated at the historical rates and income statement items are translated at an average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income as a component of Equity’s deficit.

Comprehensive Income (loss)

Comprehensive income (loss) includes accumulated foreign currency translation gains and losses. The Company has reported the components of comprehensive income (loss) on its consolidated statements of operations and other comprehensive income (loss).

Recent Accounting Pronouncements

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on its result of operations, financial position or cash flow.

Subsequent events

Management has evaluated subsequent events through the date which the financial statements are available to be issued. All subsequent events requiring recognition as of September 30, 2017 have been incorporated into these consolidated financial statements and there are no subsequent events that require disclosure in accordance with FASB ASC Topic 855, “Subsequent Events.”

Note 2. RELATED PARTY TRANSACTIONS

Related party sales

(1)	The Company had sales to EOS Trading Co., Ltd., (“EOS Trading”), a Hong Kong company owned by the officer, director, and shareholder of the Company in an aggregate amount of $369,849 and $273,407 for nine months ended September 30, 2017 and 2016, respectively. Accounts receivable due from EOS Trading was $73,233 and $0 as of September 30, 2017 and December 31, 2016, respectively.
(2)	The Company had sales to Able Vision Ltd., (“ABLE Vision”), a Seychelles company owned by one of shareholders of the Company in an aggregate amount of $76,929 and $0 for nine months ended September 30, 2017 and 2016, respectively. Accounts receivable due from ABLE Vision was $57,295 and $0 as of September 30, 2017 and December 31, 2016, respectively.

11

Related party other income

On February 24, 2017, the Company entered an agreement with EOS Trading to assist EOS Trading to design and develop a customer management and sales integration system. As of September 30, 2017, the service has been fully rendered and the Company recognized other income of NT$1,780,000, equivalent $59,460, accounting for a one-time service fee, net of cost incurred for the nine months ended September 30, 2017.

Due to shareholders

The Company has advanced funds from one of its directors and shareholder for working capital purposes. As of September 30, 2017 and December 31, 2016, there were $304,392 and $263,879 advances outstanding, respectively. The Company has agreed that the outstanding balances bear 0% interest rate and are due upon demand after 30 days written notice by the officer and shareholder.

Note 3. INCOME TAXES

United States

EOS, Inc. is incorporated in the United States of America and is subject to United States federal taxation. No provisions for income taxes have been made as the Company has no taxable income for the period. The applicable income tax rate for the Company was 34% for the nine months ended September 30, 2017 and 2016, respectively. As of September 30, 2017, the Company had net operating loss carry forwards of approximately $382,343 that may be available to reduce future years’ taxable income through 2037. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards. No tax benefit has been realized since a 100 % valuation allowance has offset deferred tax asset resulting from the net operating losses.

Taiwan

The Taiwan Income Tax Act (ITA) generally imposes a unified enterprise income tax rate of 17% on all enterprises with taxable income greater than approximately $3,900 (NT$120,000). The subsidiary of EOS Inc. is incorporated under the laws of Taiwan. No income tax liabilities existed as of September 30, 2017 and December 31, 2016 due to the Company’s continuing operating losses.

Provision for income tax consists of the following:

	For the Nine Months Ended			For the Nine Months Ended
	September 30, 2017			September 30, 2016
Current
U.S.	$	-		$	-
Taiwan		-			-
Deferred
U.S.
Deferred tax assets for NOL carryforwards		(26,030	)		(49,225	)
Valuation allowance		26,030			49,225
Net changes in deferred income tax under non-current portion		-			-

 

12

The following is a reconciliation of the statutory tax rate to the effective tax rate:

	For the Nine Months Ended September 30,			For the Nine Months Ended September 30,
	2017			2016
U.S. statutory income tax rate		34			34
Foreign statutory income tax rate difference		(17	)		(17	)
Changes in valuation allowance		(17	)		(17	)
Effective income tax rate		0			0

Significant components of the Company’s deferred taxes as of September 30, 2017 and December 31 2016 were as follows:

	September 30,			December 31,
	2017			2016
Deferred tax assets:
Net operating loss carryforwards	$	129,997		$	103,967
Less: Valuation allowance		(129,997	)		(103,967	)
Deferred tax assets, net	$	-		$	-

Note 4. COMMITMENT

Operating lease commitments consist of leases for office space and copy machines under various operating lease agreements which expire in December 2019. Operating lease agreements generally contain renewal options that may be exercised at the Company’s discretion after the completion of the terms.

Future minimum lease payments under the operating leases are summarized as follows:

As of September 30,	Amount
2018	$	10,642
2019		806
2020		201
Total		11,649

13

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operation.

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q, including this discussion and analysis by management, contains or incorporates forward-looking statements. All statements other than statements of historical fact made in report are forward looking. In particular, the statements herein regarding industry prospects and future results of operations or financial position are forward-looking statements. These forward-looking statements can be identified by the use of words such as “believes,” “estimates,” “could,” “possibly,” “probably,” anticipates,” “projects,” “expects,” “may,” “will,” or “should” or other variations or similar words. No assurances can be given that the future results anticipated by the forward-looking statements will be achieved. Forward-looking statements reflect management’s current expectations and are inherently uncertain. Our actual results may differ significantly from management’s expectations.

The following discussion and analysis should be read in conjunction with our financial statements, included herewith. This discussion should not be construed to imply that the results discussed herein will necessarily continue into the future, or that any conclusion reached herein will necessarily be indicative of actual operating results in the future. Such discussion represents only the best present assessment of our management.

Three months ended September 30, 2017 compared to the three months ended September 30, 2016

Net revenue was $272,462 for the three months ended September 30, 2017, representing an increase of $164,650, or 152.72%, as compared to $107,812 for the three months ended September 30, 2016. The increase was primarily due to the increase in sales of nutrition supplements and skin care products.

Cost of sales was $61,674 for the three months ended September 30, 2017, representing an increase of $2,337, or 3.94%, as compared to $59,337 for the three months ended September 30, 2016. The increase was mainly attributable to the increase in sales.

Gross profit was $210,788 for the three months ended September 30, 2017, compared to $48,475 for the same period in 2016. Gross profit as a percentage of net sales was approximately 77% in the third quarter of 2017, compared to approximately 45% in the same period in 2016. The change in gross profit margin is due to more skin care products with higher yield margin sold during the three months ended September 30, 2017.

Selling, general and administrative expenses consist primarily of export expense, compensation and related costs for personnel and facilities, and professional service fees. Selling, general and administrative expenses were $84,582 for the three months ended September 30, 2017, an increase of $2,039, or 2.47%, as compared to $82,543 for the three months ended September 30, 2016, which was not considered a substantial change.

Other income (expense) was $1,065 for the three months ended September 30, 2017, an increase of $3,015, or 154.62%, from $(1,950) for the three months ended September 30, 2016. The increase was mainly attributable to service fees of $1,338 charged to our related party during the three months ended September 30, 2017.

As a result of the above factors, our net income was $127,271 for the three months ended September 30, 2017, as compared to a net loss of $36,018 for the three months ended September 30, 2016, representing an increase of $163,289, or 453.35%.

14

Nine months ended September 30, 2017 compared to the nine months ended September 30, 2016

Net revenue was $556,368 for the nine months ended September 30, 2017, representing an increase of $282,961, or 103.49%, as compared to $273,407 for the nine months ended September 30, 2016. The increase was primarily due to the increase in sales of nutrition supplements and skin care products.

Cost of sales was $127,571 for the nine months ended September 30, 2017, representing an increase of $597, or 0.47%, as compared to $126,974 for the nine months ended September 30, 2016, which was not considered a substantial change.

Gross profit was $428,797 for the nine months ended September 30, 2017, compared to $146,433 for the nine months ended September 30, 2016. Gross profit as a percentage of net sales was approximately 77% for the nine months ended September 30, 2017, compared to approximately 54% in the same period in 2016. The change in gross profit margin was due to more skin care products with higher yield margin sold during the nine months ended September 30, 2017.

Selling, general and administrative expenses consist primarily of export expense, compensation and related costs for personnel and facilities, and professional service fees. Selling, general and administrative expenses were $256,401 for the nine months ended September 30, 2017, a decrease of $75,285, or 22.70%, as compared to $331,686 for the nine months ended September 30, 2016. The decrease in selling, general and administrative expenses was mainly due to the decrease in payroll expenses by $35,223 and the decrease in advertising expenses by $25,370 during the nine months ended September 30, 2017.

Other income (expense) was $60,218 for the nine months ended September 30, 2017, an increase of $64,450, or 1522.92%, from $(4,232) for the nine months ended September 30, 2016. The increase was mainly attributable to service fee of $59,460 charged to our related party and an increased gain on foreign currency exchange during the nine months ended September 30, 2017.

As a result of the above factors, our net income was $232,614 for the nine months ended September 30, 2017, as compared to a net loss of $189,485 for the nine months ended September 30, 2016, representing an increase of $422,099, or 222.76%.

Liquidity and Capital Resources

Cash and cash equivalents were $8,740 at September 30, 2017, and $42,086 at December 31, 2016. Our total current assets were $272,225 at September 30, 2017, as compared to $50,316 at December 31, 2016. Our total current liabilities were $330,485 at September 30, 2017, as compared to $325,543 at December 31, 2016.

15

We had negative working capital of $58,260 at September 30, 2017, compared to negative working capital of $275,227 at December 31, 2016. The decrease in negative working capital was primarily due to the increases in account receivable and advance to suppliers.

Net cash provided by operating activities was $3,506 during the nine months ended September 30, 2017, as compared to net cash used in operating activities $79,538 for the nine months ended September 30, 2016. The increase in net cash provided by operating activities was primary attributable to the increase in net income.

Net cash used in investing activities was $35,648 during the nine months ended September 30, 2017, as compared to $3,717 for the nine months ended September 30, 2016. The increase in net cash used in investing activities primarily because we acquired all issued and outstanding shares of one of our subsidiaries in Taiwan in consideration of $30,562 in cash during the nine months ended September 30, 2017.

Net cash provided by financing activities was $0 for the nine months ended September 30, 2017, as compared to $100,000 for nine months ended September 30, 2016. The decrease in net cash provided by financing activities was because we did not issue any new common stock shares during the nine months ended September 30, 2017.

Net change in cash and cash equivalents was a decrease of $33,346 for the nine months ended September 30, 2017. Net change in cash and cash equivalents was an increase of $15,856 for the nine months ended September 30, 2016.

Inflation

Our opinion is that inflation has not had a material effect on our operations and is not expected to have any material effect on our operations.

Climate Change

Our opinion is that neither climate change, nor governmental regulations related to climate change, have had, or are expected to have, any material effect on our operations.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

As a smaller reporting company, we are not required to provide this information.

Item 4. Controls and Procedures.

As of the end of the period covered by this report, we conducted an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act). Based upon this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of end of the period covered by this report to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is (1) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure; and (2) recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the Securities and Exchange Commission.

There was no change to our internal controls or in other factors that could affect these controls during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

16

PART II – OTHER INFORMATION

Item 1. Legal Proceedings.

None.

Item 1A. Risk Factors.

As a smaller reporting company, we are not required to provide this information.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.

17

ITEM 6. EXHIBITS 

The following exhibits are filed herewith:

Exhibit No.	Description
31.1	Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

18

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	EOS Inc.
Date: November 13, 2017	By:	/s/ He-Siang Yang
		He-Siang Yang
		Principal Executive Officer, Principal Financial Officer, President and Chairman of the Board

19

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, He-Siang Yang, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017 of EOS Inc.;
2	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4	The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c.	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d.	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5	The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors:
	a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
	b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 13, 2017	By:	/s/ He-Siang Yang
		He-Siang Yang Principal Executive Officer

EX-31.2 3 eos_ex312.htm CERTIFICATION

EXHIBIT 31.2

CERTIFICATION OF THE PINCIPAL FINANCIAL OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, He-Siang Yang, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017 of EOS Inc.;
2	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4	The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c.	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d.	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5	The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors:
	a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
	b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 13, 2017	By:	/s/ He-Siang Yang
		He-Siang Yang Principal Financial Officer

EX-31.2

eos_ex312.htm

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

SECTION 906 OF SARBANES-OXLEY ACT OF 2002

I, He-Siang Yang, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

1. The Quarterly Report on Form 10-Q of EOS Inc. (the “Company”) for the quarterly period ended September 30, 2017 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (U.S.C. 78m or 78o(d)); and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 13, 2017	By:	/s/ He-Siang Yang
		He-Siang Yang
		Principal Financial Officer

The foregoing certification is being furnished solely pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code) and is not being filed as part of a separate disclosure document.

EX-32.2 5 eos_ex322.htm CERTIFICATION

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

SECTION 906 OF SARBANES-OXLEY ACT OF 2002

I, He-Siang Yang, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

1. The Quarterly Report on Form 10-Q of EOS Inc. (the “Company”) for the quarterly period ended September 30, 2017 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (U.S.C. 78m or 78o(d)); and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 13, 2017	By:	/s/ He-Siang Yang
		He-Siang Yang
		Principal Financial Officer

The foregoing certification is being furnished solely pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code) and is not being filed as part of a separate disclosure document.

EX-32.2

eos_ex322.htm

XML

Document Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 10, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	EOS INC.
Entity Central Index Key	0001651958
Trading Symbol	eoss
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		64,122,997
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3

XML

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents	$ 8,740	$ 42,086
Account receivable	83,481	0
Accounts receivable - related parties	130,528	0
Inventory	3,492	1,919
Advance to suppliers	40,989	0
Prepaid expenses	4,995	6,311
Total current assets	272,225	50,316
Property and Equipment, net	7,737	3,180
Security deposit	7,663	2,544
Total Assets	287,625	56,040
Current Liabilities
Accounts payable	10,023	2,778
Accrued expenses	16,070	24,089
Due to shareholders	304,392	263,879
Advance from customers	0	34,797
Total current liabilities	330,485	325,543
Total liabilities	330,485	325,543
Stockholders' Equity
Common stock, $0.001 par value; 75,000,000 shares authorized, 64,122,997 shares issued and outstanding	64,123	64,123
Additional paid-in capital	90,000	90,000
Accumulated deficit	(191,551)	(424,166)
Accumulated other comprehensive income (loss)	(5,432)	540
Total stockholders' equity(deficit)	(42,860)	(269,503)
Total Liabilities and Stockholders' Equity	$ 287,625	$ 56,040

XML

CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	75,000,000	75,000,000
Common stock shares issued	64,122,997	64,122,997
Common stock, shares outstanding	64,122,997	64,122,997

XML

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net Sales:
Net sales	$ 93,822	$ 0	$ 109,590	$ 0
Net sales to related parties	178,640	107,812	446,778	273,407
Total	272,462	107,812	556,368	273,407
Cost of sales	61,674	59,337	127,571	126,974
Gross profit	210,788	48,475	428,797	146,433
Selling, general and administrative expenses	84,582	82,543	256,401	331,686
Income (loss) from operations	126,206	(34,068)	172,396	(185,253)
Other income (expenses)
Interest income	0	0	14	47
Other income - related party	1,338	0	59,460	0
Gain (loss) on foreign currency exchange	(273)	(1,950)	744	(4,279)
Total other income	1,065	(1,950)	60,218	(4,232)
Income (loss) before provision for income taxes	127,271	(36,018)	232,614	(189,485)
Provision for income taxes	0	0	0	0
Net Income (loss)	$ 127,271	$ (36,018)	$ 232,614	$ (189,485)
Weighted average number of common shares:
Basic and diluted (in shares)	64,122,997	64,122,997	64,122,997	62,152,194
Net income (loss) per share:
Basic and diluted (in dollars per share)	$ 0.00	$ 0.00	$ 0.00	$ 0.00
Other Comprehensive Income (loss):
Net income (loss)	$ 127,271	$ (36,018)	$ 232,614	$ (189,485)
Foreign currency translation adjustment, net of tax	221	(827)	(5,972)	(898)
Comprehensive (Loss) Income	$ 127,492	$ (36,845)	$ 226,642	$ (190,383)

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash Flows from Operating Activities
Net income (loss)	$ 232,614	$ (189,485)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Depreciation	769	259
Foreign currency exchange (gain) loss	(744)
Changes in assets and liabilities:
Decrease (Increase) in accounts receivable	(212,074)	(3,038)
Decrease (Increase) in inventory	(1,434)	46,127
Decrease (Increase) in advance to suppliers	(40,761)	(449)
Decrease (Increase) in prepaid expense and other assets	1,735	(3,153)
Decrease (Increase) in security deposits	(4,918)	(2,636)
Increase (decrease) in accounts payable	(6,447)	(32,020)
Increase (decrease) in accrued expenses	4,750	22,221
Increase (decrease) in advance from customers	(36,966)	0
Increase (decrease) in due to shareholders	66,982	82,636
Net cash provided by (used in) operating activities	3,506	(79,538)
Cash flows from investing activities
Purchase of equipment	(5,086)	(3,717)
Acquisition of subsidiary equity interest	(30,562)	0
Net cash used in investing activities	(35,648)	(3,717)
Cash Flows from Financing Activities
Proceeds from issuance of common stock	0	100,000
Net cash provided by financing activities	0	100,000
Effect of exchange rate changes on cash and cash equivalents	(1,204)	(889)
Net increase (decrease) in cash and cash equivalents	(33,346)	15,856
Cash and Cash Equivalents
Beginning	42,086	58,424
Ending	8,740	74,280
Cash paid during the year for:
Interest	0	0
Income taxes	$ 0	$ 0

XML

NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2017

Nature of Operations and Summary of Accounting Policies [Abstract]

NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES

Note 1. NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting and in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the unaudited consolidated financial statements contained in this report reflect all adjustments that are normal and recurring in nature and considered necessary for a fair presentation of the financial position and the results of operations for the interim periods presented. The year-end balance sheet data were derived from audited consolidated financial statements, but does not include all disclosures required by GAAP. The results of operations for the interim period are not necessarily indicative of the results expected for the full year. These unaudited consolidated financial statements, footnote disclosures, and other information should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

Organization

EOS Inc. was incorporated on April 3, 2015 in the State of Nevada. The Company’s business plan is to market and distribute skin care products, including masks and serums.

On November 18, 2016, the Company has set up a wholly-owned subsidiary in Taiwan to assist the Company to promote the business in Taiwan.

Emperor Star International Trade Co., Ltd., (“Emperor Star”), was incorporated on November 16, 2015 under the laws of Taiwan. The Company is in the business of marketing and distribution of various products, including detergents, nutrition supplements, and skin care products.

On May 3, 2017, the Company entered into and closed a Share Purchase and Sale Agreement (the “Purchase Agreement”) with Emperor Star and the shareholder of Emperor Star to acquire all issued and outstanding shares of Emperor Star in consideration of $30,562 in cash. As a result of the Purchase, Emperor Star becomes the Company’s wholly owned subsidiary. Upon consummation of the Purchase, the Company has assumed the business of Emperor Star and ceased to be a shell company.

Principles of Consolidation

The accompanying unaudited consolidated financial statements, including the accounts of EOS Inc. and its wholly owned subsidiaries in Taiwan, have been prepared in conformity with accounting principles generally accepted in the United States of America. Since the Company and Emperor Star are entities under Mr. Yu Cheng Yang’s common control prior to the acquisition of Emperor Star, the transaction is accounted for as a restructuring transaction. The Company has recast prior period financial statements to reflect the conveyance of Emperor Star’s common shares as if the restructuring transaction had occurred as of the earliest date of the financial statements. All material intercompany accounts, transactions, and profits have been eliminated in consolidation.

The functional currency of the subsidiaries in Taiwan is the New Taiwan dollars, however the accompanying unaudited consolidated financial statements have been translated and presented in United States Dollars ($). In the accompanying unaudited consolidated financial statements and notes, “$”, “US$” and “U.S. dollars” mean United States dollars, and “NT$” and “NT dollars” mean New Taiwan dollars. 

Going Concern

These unaudited consolidated financial statements were prepared on the basis of accounting principles applicable to going concern, which assumes the realization of assets and discharge of liabilities in the normal course of business. As shown in the accompanying unaudited consolidated financial statements, the Company had accumulated deficit of $191,551 and $424,166 as of September 30, 2017 and December 31, 2016, respectively.

The Company faces all the risks common to companies at development stage, including capitalization and uncertainty of funding sources, high initial expenditure levels, uncertain revenue streams, and difficulties in managing growth. The Company’s losses raise substantial doubt about its ability to continue as a going concern. The Company’s financial statements do not reflect any adjustments that might result from the outcome of this uncertainty.

The Company is currently addressing its liquidity issue by continually seeking investment capital through private placements of common stock and debt. The Company believes its current and future plans enable it to continue as a going concern. The Company’s ability to achieve these objectives cannot be determined at this time. These financial statements do not give effect to any adjustments which would be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts which may differ from those in the accompanying consolidated financial statements.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Classification

Certain classifications have been made to the prior year financial statements to conform to the current year presentation. The reclassification had no impact on previously reported net loss nor accumulated deficit.

Cash and Cash Equivalents

Cash and cash equivalents include cash and all highly liquid instruments with original maturities of three months or less.

Accounts Receivable

Accounts receivable are stated at carrying value less estimates made for doubtful receivables. An allowance for impairment of trade receivables is established if the collection of a receivable becomes doubtful. Such receivable becomes doubtful when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy or financial reorganization, and default or delinquency in payments are considered indicators that the receivable is impaired. The amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. An impairment loss is recognized in the statement of income, as are subsequent recoveries of previous impairments.

Inventory

Inventory is stated at the lower of cost and net realizable value. Net realizable value (NRV) is defined as estimated selling prices less costs of completion, disposal, and transportation. Inventory consists mainly of finished goods held for resale. Cost is determined on a weighted average cost method. The Company periodically reviews the age and turnover of its inventory to determine whether any inventory has become obsolete or has declined in value, and incurs a charge to operations for known and anticipated inventory obsolescence.

Property and Equipment

Property and equipment is carried at cost net of accumulated depreciation. Repairs and maintenance are expensed as incurred. Expenditures that improve the functionality of the related asset or extend the useful life are capitalized. When property and equipment is retired or otherwise disposed of, the related gain or loss is included in operating income. Leasehold improvements are depreciated on the straight-line method over the shorter of the remaining lease term or estimated useful life of the asset. Depreciation is calculated on the straight-line method, including property and equipment under capital leases, generally is five years. Depreciation expense is $769 and $259 for the nine months ended September 30, 2017 and 2016, respectively.

Impairment of Long-Lived Assets

The Company has adopted Accounting Standards Codification subtopic 360-10, Property, Plant and Equipment (“ASC 360-10”). ASC 360-10 requires that long-lived assets and certain identifiable intangibles held and used by the Company be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company evaluates its long lived assets for impairment annually or more often if events and circumstances warrant. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve breakeven operating results over an extended period. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Should impairment in value be indicated, the carrying value of intangible assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset. ASC 360-10 also requires assets to be disposed of be reported at the lower of the carrying amount or the fair value less costs to sell. Management has determined that no impairments of long lived assets currently exist.

Revenue Recognition

Revenues are recognized when products are shipped to customers, both title and the risks of ownership are transferred, and the collectability of accounts receivable can be reasonably assured. The Company’s standard shipping term is Free on Board (FOB) destination. Usually no sales returns, discounts or other allowances are provided to customers. Shipping and handling charges to customers are included in net sales. Shipping and handling charges incurred by the Company are included in selling, general and administrative expenses.

Advertising Costs

Advertising costs are expensed at the time such advertising commences. Advertising expenses were $50 and $23,953 for the nine months ended September 30, 2017 and 2016, respectively.

Post-retirement and post-employment benefits

The Company’s subsidiaries adopted the government mandated defined contribution plan pursuant to the Labor Pension Act (the “Act”) in Taiwan. Such labor regulations require that the rate of contribution made by an employer to the Labor Pension Fund per month shall not be less than 6% of the worker’s monthly salaries. Pursuant to the Act, the Company makes monthly contribution equal to 6% of employees’ salaries to the employees’ pension fund. The Company has no legal obligation for the benefits beyond the contributions made. The total amounts for such employee benefits, which were expensed as incurred, were $4,173 and $1,993 for the nine months ended September 30, 2017 and 2016, respectively. Other than the above, the Company does not provide any other post-retirement or post-employment benefits.

Net Income (loss) per Share

Basic income (loss) per share is computed by dividing net income by weighted average number of shares of common stock outstanding during each period. Diluted income per share is computed by dividing net loss by the weighted average number of shares of common stock, common stock equivalents, and potentially dilutive securities outstanding during each period. At September 30, 2017 and December 31, 2016, the Company does not have any outstanding common stock equivalents; therefore, a separate computation of diluted loss per share is not presented.

Income Taxes

The Company accounts for income taxes in accordance with ASC 740, Income Taxes, which requires that the Company recognize deferred tax liabilities and assets based on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit (expense) results from the change in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when, in the opinion of management, it is more likely than not that some or all of any deferred tax assets will not be realized.

Foreign-currency Transactions

Foreign-currency transactions are recorded in New Taiwan dollars (“NTD”) at the rates of exchange in effect when the transactions occur. Gains or losses resulting from the application of different foreign exchange rates when cash in foreign currency is converted into New Taiwan dollars, or when foreign-currency receivables or payables are settled, are credited or charged to income in the year of conversion or settlement. On the balance sheet dates, the balances of foreign-currency assets and liabilities are restated at the prevailing exchange rates and the resulting differences are charged to current income except for those foreign currencies denominated investments in shares of stock where such differences are accounted for as translation adjustments under Equity.

Translation Adjustment

The accounts of the Company’s subsidiaries were maintained, and their financial statements were expressed, in New Taiwan Dollar (“NTD”). Such financial statements were translated into U.S. Dollars (“$” or “USD”) in accordance ASC 830, “Foreign Currency Matters”, with the NTD as the functional currency. According to the Statement, all assets and liabilities are translated at the current exchange rate, Equity’s deficit are translated at the historical rates and income statement items are translated at an average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income as a component of Equity’s deficit.

Comprehensive Income (loss)

Comprehensive income (loss) includes accumulated foreign currency translation gains and losses. The Company has reported the components of comprehensive income (loss) on its consolidated statements of operations and other comprehensive income (loss).

Recent Accounting Pronouncements

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on its result of operations, financial position or cash flow.

Subsequent events

Management has evaluated subsequent events through the date which the financial statements are available to be issued. All subsequent events requiring recognition as of September 30, 2017 have been incorporated into these consolidated financial statements and there are no subsequent events that require disclosure in accordance with FASB ASC Topic 855, “Subsequent Events.”

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RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2017

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

Note 2. RELATED PARTY TRANSACTIONS

Related party sales

(1)	The Company had sales to EOS Trading Co., Ltd., (“EOS Trading”), a Hong Kong company owned by the officer, director, and shareholder of the Company in an aggregate amount of $369,849 and $273,407 for nine months ended September 30, 2017 and 2016, respectively. Accounts receivable due from EOS Trading was $73,233 and $0 as of September 30, 2017 and December 31, 2016, respectively.
(2)	The Company had sales to Able Vision Ltd., (“ABLE Vision”), a Seychelles company owned by one of shareholders of the Company in an aggregate amount of $76,929 and $0 for nine months ended September 30, 2017 and 2016, respectively. Accounts receivable due from ABLE Vision was $57,295 and $0 as of September 30, 2017 and December 31, 2016, respectively.

Related party other income

On February 24, 2017, the Company entered an agreement with EOS Trading to assist EOS Trading to design and develop a customer management and sales integration system. As of September 30, 2017, the service has been fully rendered and the Company recognized other income of NT$1,780,000, equivalent $59,460, accounting for a one-time service fee, net of cost incurred for the nine months ended September 30, 2017.

Due to shareholders

The Company has advanced funds from one of its directors and shareholder for working capital purposes. As of September 30, 2017 and December 31, 2016, there were $304,392 and $263,879 advances outstanding, respectively. The Company has agreed that the outstanding balances bear 0% interest rate and are due upon demand after 30 days written notice by the officer and shareholder.

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INCOME TAXES

9 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

INCOME TAXES

Note 3. INCOME TAXES

United States

EOS, Inc. is incorporated in the United States of America and is subject to United States federal taxation. No provisions for income taxes have been made as the Company has no taxable income for the period. The applicable income tax rate for the Company was 34% for the nine months ended September 30, 2017 and 2016, respectively. As of September 30, 2017, the Company had net operating loss carry forwards of approximately $382,343 that may be available to reduce future years’ taxable income through 2037. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards. No tax benefit has been realized since a 100 % valuation allowance has offset deferred tax asset resulting from the net operating losses.

Taiwan

The Taiwan Income Tax Act (ITA) generally imposes a unified enterprise income tax rate of 17% on all enterprises with taxable income greater than approximately $3,900 (NT$120,000). The subsidiary of EOS Inc. is incorporated under the laws of Taiwan. No income tax liabilities existed as of September 30, 2017 and December 31, 2016 due to the Company’s continuing operating losses.

Provision for income tax consists of the following:

	For the Nine Months Ended			For the Nine Months Ended
	September 30, 2017			September 30, 2016
Current
U.S.	$	-		$	-
Taiwan		-			-
Deferred
U.S.
Deferred tax assets for NOL carryforwards		(26,030	)		(49,225	)
Valuation allowance		26,030			49,225
Net changes in deferred income tax under non-current portion		-			-

The following is a reconciliation of the statutory tax rate to the effective tax rate:

	For the Nine Months Ended September 30,			For the Nine Months Ended September 30,
	2017			2016
U.S. statutory income tax rate		34			34
Foreign statutory income tax rate difference		(17	)		(17	)
Changes in valuation allowance		(17	)		(17	)
Effective income tax rate		0			0

Significant components of the Company’s deferred taxes as of September 30, 2017 and December 31 2016 were as follows:

	September 30,			December 31,
	2017			2016
Deferred tax assets:
Net operating loss carryforwards	$	129,997		$	103,967
Less: Valuation allowance		(129,997	)		(103,967	)
Deferred tax assets, net	$	-		$	-

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COMMITMENT

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

COMMITMENT

Note 4. COMMITMENT

Operating lease commitments consist of leases for office space and copy machines under various operating lease agreements which expire in December 2019. Operating lease agreements generally contain renewal options that may be exercised at the Company’s discretion after the completion of the terms.

Future minimum lease payments under the operating leases are summarized as follows:

As of September 30,	Amount
2018	$	10,642
2019		806
2020		201
Total		11,649

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NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2017

Nature of Operations and Summary of Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting and in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the unaudited consolidated financial statements contained in this report reflect all adjustments that are normal and recurring in nature and considered necessary for a fair presentation of the financial position and the results of operations for the interim periods presented. The year-end balance sheet data were derived from audited consolidated financial statements, but does not include all disclosures required by GAAP. The results of operations for the interim period are not necessarily indicative of the results expected for the full year. These unaudited consolidated financial statements, footnote disclosures, and other information should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

Principles of Consolidation

Principles of Consolidation

The accompanying unaudited consolidated financial statements, including the accounts of EOS Inc. and its wholly owned subsidiaries in Taiwan, have been prepared in conformity with accounting principles generally accepted in the United States of America. Since the Company and Emperor Star are entities under Mr. Yu Cheng Yang’s common control prior to the acquisition of Emperor Star, the transaction is accounted for as a restructuring transaction. The Company has recast prior period financial statements to reflect the conveyance of Emperor Star’s common shares as if the restructuring transaction had occurred as of the earliest date of the financial statements. All material intercompany accounts, transactions, and profits have been eliminated in consolidation.

The functional currency of the subsidiaries in Taiwan is the New Taiwan dollars, however the accompanying unaudited consolidated financial statements have been translated and presented in United States Dollars ($). In the accompanying unaudited consolidated financial statements and notes, “$”, “US$” and “U.S. dollars” mean United States dollars, and “NT$” and “NT dollars” mean New Taiwan dollars. 

Going Concern

Going Concern

These unaudited consolidated financial statements were prepared on the basis of accounting principles applicable to going concern, which assumes the realization of assets and discharge of liabilities in the normal course of business. As shown in the accompanying unaudited consolidated financial statements, the Company had accumulated deficit of $191,551 and $424,166 as of September 30, 2017 and December 31, 2016, respectively.

The Company faces all the risks common to companies at development stage, including capitalization and uncertainty of funding sources, high initial expenditure levels, uncertain revenue streams, and difficulties in managing growth. The Company’s losses raise substantial doubt about its ability to continue as a going concern. The Company’s financial statements do not reflect any adjustments that might result from the outcome of this uncertainty.

The Company is currently addressing its liquidity issue by continually seeking investment capital through private placements of common stock and debt. The Company believes its current and future plans enable it to continue as a going concern. The Company’s ability to achieve these objectives cannot be determined at this time. These financial statements do not give effect to any adjustments which would be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts which may differ from those in the accompanying consolidated financial statements.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Classification

Classification

Certain classifications have been made to the prior year financial statements to conform to the current year presentation. The reclassification had no impact on previously reported net loss nor accumulated deficit.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents include cash and all highly liquid instruments with original maturities of three months or less.

Accounts Receivable

Accounts Receivable

Accounts receivable are stated at carrying value less estimates made for doubtful receivables. An allowance for impairment of trade receivables is established if the collection of a receivable becomes doubtful. Such receivable becomes doubtful when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy or financial reorganization, and default or delinquency in payments are considered indicators that the receivable is impaired. The amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. An impairment loss is recognized in the statement of income, as are subsequent recoveries of previous impairments.

Inventory

Inventory

Inventory is stated at the lower of cost and net realizable value. Net realizable value (NRV) is defined as estimated selling prices less costs of completion, disposal, and transportation. Inventory consists mainly of finished goods held for resale. Cost is determined on a weighted average cost method. The Company periodically reviews the age and turnover of its inventory to determine whether any inventory has become obsolete or has declined in value, and incurs a charge to operations for known and anticipated inventory obsolescence.

Property and Equipment

Property and Equipment

Property and equipment is carried at cost net of accumulated depreciation. Repairs and maintenance are expensed as incurred. Expenditures that improve the functionality of the related asset or extend the useful life are capitalized. When property and equipment is retired or otherwise disposed of, the related gain or loss is included in operating income. Leasehold improvements are depreciated on the straight-line method over the shorter of the remaining lease term or estimated useful life of the asset. Depreciation is calculated on the straight-line method, including property and equipment under capital leases, generally is five years. Depreciation expense is $769 and $259 for the nine months ended September 30, 2017 and 2016, respectively.

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

The Company has adopted Accounting Standards Codification subtopic 360-10, Property, Plant and Equipment (“ASC 360-10”). ASC 360-10 requires that long-lived assets and certain identifiable intangibles held and used by the Company be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company evaluates its long lived assets for impairment annually or more often if events and circumstances warrant. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve breakeven operating results over an extended period. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Should impairment in value be indicated, the carrying value of intangible assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset. ASC 360-10 also requires assets to be disposed of be reported at the lower of the carrying amount or the fair value less costs to sell. Management has determined that no impairments of long lived assets currently exist.

Revenue Recognition

Revenue Recognition

Revenues are recognized when products are shipped to customers, both title and the risks of ownership are transferred, and the collectability of accounts receivable can be reasonably assured. The Company’s standard shipping term is Free on Board (FOB) destination. Usually no sales returns, discounts or other allowances are provided to customers. Shipping and handling charges to customers are included in net sales. Shipping and handling charges incurred by the Company are included in selling, general and administrative expenses.

Advertising Costs

Advertising Costs

Advertising costs are expensed at the time such advertising commences. Advertising expenses were $50 and $23,953 for the nine months ended September 30, 2017 and 2016, respectively.

Post-retirement and post-employment benefits

Post-retirement and post-employment benefits

The Company’s subsidiaries adopted the government mandated defined contribution plan pursuant to the Labor Pension Act (the “Act”) in Taiwan. Such labor regulations require that the rate of contribution made by an employer to the Labor Pension Fund per month shall not be less than 6% of the worker’s monthly salaries. Pursuant to the Act, the Company makes monthly contribution equal to 6% of employees’ salaries to the employees’ pension fund. The Company has no legal obligation for the benefits beyond the contributions made. The total amounts for such employee benefits, which were expensed as incurred, were $4,173 and $1,993 for the nine months ended September 30, 2017 and 2016, respectively. Other than the above, the Company does not provide any other post-retirement or post-employment benefits.

Net Income (loss) per Share

Net Income (loss) per Share

Basic income (loss) per share is computed by dividing net income by weighted average number of shares of common stock outstanding during each period. Diluted income per share is computed by dividing net loss by the weighted average number of shares of common stock, common stock equivalents, and potentially dilutive securities outstanding during each period. At September 30, 2017 and December 31, 2016, the Company does not have any outstanding common stock equivalents; therefore, a separate computation of diluted loss per share is not presented.

Income Taxes

Income Taxes

The Company accounts for income taxes in accordance with ASC 740, Income Taxes, which requires that the Company recognize deferred tax liabilities and assets based on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit (expense) results from the change in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when, in the opinion of management, it is more likely than not that some or all of any deferred tax assets will not be realized.

Foreign-currency Transactions

Foreign-currency Transactions

Foreign-currency transactions are recorded in New Taiwan dollars (“NTD”) at the rates of exchange in effect when the transactions occur. Gains or losses resulting from the application of different foreign exchange rates when cash in foreign currency is converted into New Taiwan dollars, or when foreign-currency receivables or payables are settled, are credited or charged to income in the year of conversion or settlement. On the balance sheet dates, the balances of foreign-currency assets and liabilities are restated at the prevailing exchange rates and the resulting differences are charged to current income except for those foreign currencies denominated investments in shares of stock where such differences are accounted for as translation adjustments under Equity.

Translation Adjustment

Translation Adjustment

The accounts of the Company’s subsidiaries were maintained, and their financial statements were expressed, in New Taiwan Dollar (“NTD”). Such financial statements were translated into U.S. Dollars (“$” or “USD”) in accordance ASC 830, “Foreign Currency Matters”, with the NTD as the functional currency. According to the Statement, all assets and liabilities are translated at the current exchange rate, Equity’s deficit are translated at the historical rates and income statement items are translated at an average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income as a component of Equity’s deficit.

Comprehensive Income (loss)

Comprehensive Income (loss)

Comprehensive income (loss) includes accumulated foreign currency translation gains and losses. The Company has reported the components of comprehensive income (loss) on its consolidated statements of operations and other comprehensive income (loss).

Recent Accounting Pronouncements

Recent Accounting Pronouncements

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on its result of operations, financial position or cash flow. 

Subsequent events

Subsequent events

Management has evaluated subsequent events through the date which the financial statements are available to be issued. All subsequent events requiring recognition as of September 30, 2017 have been incorporated into these consolidated financial statements and there are no subsequent events that require disclosure in accordance with FASB ASC Topic 855, “Subsequent Events.”

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INCOME TAXES (Tables)

9 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

Schedule of provision for income tax

	For the Nine Months Ended			For the Nine Months Ended
	September 30, 2017			September 30, 2016
Current
U.S.	$	-		$	-
Taiwan		-			-
Deferred
U.S.
Deferred tax assets for NOL carryforwards		(26,030	)		(49,225	)
Valuation allowance		26,030			49,225
Net changes in deferred income tax under non-current portion		-			-

Schedule of reconciliation of statutory tax rate to effective tax rate

	For the Nine Months Ended September 30,			For the Nine Months Ended September 30,
	2017			2016
U.S. statutory income tax rate		34			34
Foreign statutory income tax rate difference		(17	)		(17	)
Changes in valuation allowance		(17	)		(17	)
Effective income tax rate		0			0

Schedule of components of the deferred taxes

	September 30,			December 31,
	2017			2016
Deferred tax assets:
Net operating loss carryforwards	$	129,997		$	103,967
Less: Valuation allowance		(129,997	)		(103,967	)
Deferred tax assets, net	$	-		$	-

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COMMITMENT (Tables)

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Schedule of future minimum lease receipts under the lease

As of September 30,	Amount
2018	$	10,642
2019		806
2020		201
Total		11,649

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NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES (Detail Textuals) - USD ($)		9 Months Ended
	May 03, 2017	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Nature of Operations and Summary of Accounting Policies [Abstract]
Payments to acquire shares of Emperor Star	$ 30,562	$ 30,562	$ 0
Accumulated deficit		(191,551)		$ (424,166)
Depreciation expense		769	259
Advertising expense		$ 50	23,953
Rate of contribution made		6.00%
Amount of employee benefits		$ 4,173	$ 1,993

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RELATED PARTY TRANSACTIONS (Detail Textuals)	3 Months Ended		9 Months Ended
	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2017 TWD	Sep. 30, 2016 USD ($)	Dec. 31, 2016 USD ($)
Related Party Transaction [Line Items]
Net sales to related parties	$ 178,640	$ 107,812	$ 446,778		$ 273,407
Accounts receivable - related parties	130,528		130,528			$ 0
Other income - related party	1,338	$ 0	59,460		0
Advances outstanding of officer and shareholder	304,392		$ 304,392			263,879
Interest rate of outstanding balances			0.00%	0.00%
Due of written notice by officer and shareholder			30 days	30 days
EOS Trading Co Ltd
Related Party Transaction [Line Items]
Net sales to related parties			$ 369,849		273,407
Accounts receivable - related parties	73,233		73,233			0
Other income - related party			59,460	TWD 1,780,000
Able Vision Ltd
Related Party Transaction [Line Items]
Net sales to related parties			76,929		$ 0
Accounts receivable - related parties	$ 57,295		$ 57,295			$ 0

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INCOME TAXES (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Current
U.S.	$ 0	$ 0
Taiwan	0	0
Deferred
Deferred tax assets for NOL carryforwards	(26,030)	(49,225)
Valuation allowance	26,030	49,225
Net changes in deferred income tax under non-current portion	$ 0	$ 0

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INCOME TAXES (Details 1)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Income Tax Disclosure [Abstract]
U.S. statutory income tax rate	34.00%	34.00%
Foreign statutory income tax rate difference	(17.00%)	(17.00%)
Changes in valuation allowance	(17.00%)	(17.00%)
Effective income tax rate	0.00%	0.00%

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INCOME TAXES (Details 2) - USD ($)	Sep. 30, 2017	Sep. 30, 2016
Deferred tax assets:
Net operating loss carryforwards	$ 129,997	$ 103,967
Less: Valuation allowance	(129,997)	(103,967)
Deferred tax assets, net	$ 0	$ 0

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INCOME TAXES (Detail Textuals)	9 Months Ended
	Sep. 30, 2017 USD ($)	Sep. 30, 2017 TWD	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Applicable income tax rate	34.00%	34.00%	34.00%
Operating loss carryforwards	$ 382,343
Foreign statutory income tax rate	17.00%	17.00%	17.00%
Threshold limit for foreign statutory income tax amount	$ 3,900	TWD 120,000

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COMMITMENT (Details)	Sep. 30, 2017 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2018	$ 10,642
2019	806
2020	201
Total	$ 11,649