0001493152-18-016485.txt : 20181119 0001493152-18-016485.hdr.sgml : 20181119 20181119163229 ACCESSION NUMBER: 0001493152-18-016485 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 48 CONFORMED PERIOD OF REPORT: 20180930 FILED AS OF DATE: 20181119 DATE AS OF CHANGE: 20181119 FILER: COMPANY DATA: COMPANY CONFORMED NAME: XTribe P.L.C. CENTRAL INDEX KEY: 0001690622 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-214799 FILM NUMBER: 181192870 BUSINESS ADDRESS: STREET 1: 1ST FLOOR VICTORY HOUSE 99-101 STREET 2: REGENT STREET CITY: LONDON STATE: X0 ZIP: W1B4EZ BUSINESS PHONE: 4402032140420 MAIL ADDRESS: STREET 1: 1ST FLOOR VICTORY HOUSE 99-101 STREET 2: REGENT STREET CITY: LONDON STATE: X0 ZIP: W1B4EZ 10-Q 1 form10-q.htm

 

 

 

U.S. 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 fiscal quarter ended September 30, 2018

 

[  ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

 

For the transition period from                      to                    

 

XTRIBE P.L.C.

(Exact name of small business issuer as specified in its charter)

 

England and Wales   333-214799   Not Applicable

(State of Incorporation)

 

(Commission File Number)

 

(IRS Employer Identification No.)

 

37-38 Long acre

WC2E9JT London

United Kingdom

(Address of principal executive offices) (Zip code)

 

Issuer’s telephone number +44020 32140420

 

Securities registered under Section 12(g) of the Exchange Act:

Ordinary Shares

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 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 during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [  ] No [  ]

 

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

 

Large Accelerated Filer [  ] Accelerated Filer [  ]
Non-accelerated Filer [  ] (Do not check if a smaller reporting company) Smaller Reporting Company [X]

 

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

 

There were 9,100,000 shares outstanding of registrant’s Ordinary Shares as of August 17, 2018.

 

Transitional Small Business Disclosure Format (check one): Yes [  ] No [X]

 

 

 

   
 

 

TABLE OF CONTENTS

 

PART I  
Item 1. Financial Statements 3
  Condensed Balance Sheets as of September 30, 2018 (unaudited) and December 31, 2017 (audited) F-1
  Unaudited Condensed Statements of Operations for the three and nine months ended September 30, 2018 and September 30, 2017. F-2
  Unaudited Condensed Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2018 and September 30, 2017. F-3
  Unaudited Condensed Consolidated Statement of Changes in Shareholders’ Deficit F-4
  Unaudited Condensed Statements of Cash Flows for the nine months ended September 30, 2018 and September 30, 2017. F-5
  Notes to Unaudited Condensed Consolidated Financial Statements F-6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operation 4
Item 3. Quantitative and Qualitative Disclosures About Market Risk 8
Item 4. Controls and Procedures 8
PART II  
Item 1. Legal Proceedings 9
Item 1A. Risk Factors 9
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 9
Item 3. Defaults Upon Senior Securities 9
Item 4. Mine Safety Disclosures 9
Item 5. Other Information 9
Item 6. Exhibits 9
     
SIGNATURES 10

 

 2 
 

 

PART I

 

ITEM 1. FINANCIAL STATEMENTS

 

CONTENTS

 

  PAGE
Condensed Consolidated Balance Sheets F-1
   
Condensed Consolidated Statements of Operations F-2
   
Condensed Consolidated Statements of Comprehensive Income (Loss) F-3
   
Condensed Consolidated Statement of Changes in Shareholders’ Deficit F-4
   
Condensed Consolidated Statements of Cash Flows F-5
   
Notes to Condensed Consolidated Financial Statements F-6 to F-14

 

 3 
 

 

XTRIBE P.L.C.

Condensed Consolidated Balance Sheets

 

   September 30, 2018   December 31, 2017 
   (Unaudited)   (Audited) 
         
ASSETS          
           
CURRENT ASSETS          
Cash and cash equivalents  $41,220   $41,870 
Prepaid expenses   15,516    431 
Other receivable   49,683    - 
           
TOTAL CURRENT ASSETS   106,419    42,301 
           
TANGINBLE ASSETS          
Machinery and Equipment net of accumulated depreciation   8,197    - 
           
INTANGIBLE ASSETS          
Software, net of accumulated amortization   12,356    26,924 
Goodwill   20,397    - 
           
OTHER ASSETS          
Deposits   6,058    2,550 
           
TOTAL ASSETS  $153,427   $71,775 
           
LIABILITIES AND SHAREHOLDERS’ DEFICIT          
           
CURRENT LIABILITIES          
Accounts payable and accrued expenses  $604,690   $236,040 
Accounts payable - related party   -    20,346 
Loan payable - other   318,699    101,818 
Loans payable - shareholders   1,079,339    1,141,141 
           
TOTAL CURRENT LIABILITIES   2,002,728    1,499,345 
           
COMMITMENTS AND CONTINGENCIES          
           
SHAREHOLDERS’ DEFICIT          
           
Ordinary shares, Series A, $0.034 par value; unlimited shares authorized; 9,100,000 shares issued and outstanding at September 30, 2018 and December 31, 2017   309,400    309,400 
           
Ordinary shares, Series B, $0.034 par value; unlimited shares authorized; 579,538 shares issued and outstanding at September 30, 2018 and 0 shares issued and outstanding at December 31, 2017   19,704    - 
           
Additional paid in capital   2,013,471    1,268,764 
           
Accumulated deficit   (4,151,283)   (2,941,411)
           
Accumulated other comprehensive loss   (40,593)   (64,323)
           
SHAREHOLDERS’ DEFICIT   (1,849,301)   (1,427,570)
           
TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT  $153,427   $71,775 

 

See the accompanying notes to the condensed consolidated financial statements.

 

 F-1 
 

 

XTRIBE P.L.C.

Condensed Consolidated Statements of Operations

(Unaudited)

 

   For the Three Months Ended   For the Nine Months Ended 
   September 30, 2018   September 30, 2017   September 30, 2018   September 30, 2017 
                 
SALES  $17,580   $-   $17,580   $- 
                     
OPERATING EXPENSES                    
General and administrative   359,760    156,895    825,569    457,034 
Provision for bad debts   -    272,186    -    272,186 
Sales and marketing   (1,589)   95,895    137,919    217,310 
Research and development   82,128    151,670    263,964    383,413 
Total operating expenses   440,299    676,646    1,227,452    1,329,943 
                     
NET LOSS  $(422,719)  $(676,646)  $(1,209,872)  $(1,329,943)
                    
BASIC AND DILUTED NET LOSS PER ORDINARY SHARE  $(0.04)  $(0.07)  $(0.13)  $(0.15)
                    
BASIC AND DILUTED WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING   9,679,538    9,100,000    9,615,145    9,038,889 

 

See the accompanying notes to the condensed consolidated financial statements.

 

 F-2 
 

 

XTRIBE P.L.C.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)

 

   For the Three Months Ended   For the Nine Months Ended 
   September 30, 2018   September 30, 2017   September 30, 2018   September 30, 2017 
                 
NET LOSS  $(422,719)  $(676,646)  $(1,209,872)  $(1,329,943)
                     
OTHER COMPREHENSIVE INCOME (LOSS)                     
Foreign Currency Translation Adjustments, net of tax   1,823    (33,016)   23,730    (85,750)
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), net of tax    1,823    (33,016)   23,730    (85,750)
                     
COMPREHENSIVE LOSS   $(420,896)  $(709,662)  $(1,186,142)  $(1,415,693)

 

See the accompanying notes to the condensed consolidated financial statements.

 

 F-3 
 

 

XTRIBE P.L.C.

Condensed Consolidated Statement of Changes in Shareholders’ Deficit

For the Nine Months Ended September 30, 2018

 

   Ordinary Shares Series A   Ordinary Shares Series B                           Accumulated     
  

Number
of

Shares

   Amount  

Number
of

Shares

   Amount   Ordinary Shares
Subscribed
   Subscription
Receivable
   Additional Paid-In Capital   Accumulated
Deficit
   Other Comprehensive Income   Total 
Balance December 31, 2017 (Audited)   9,100,000   $309,400    -   $-   $-   $-   $1,268,764   $(2,941,411)  $(64,323)  $(1,427,570)
                                                   
Sale of ordinary shares - Series B   -    -    351,500    11,951    35,340    (35,340)   416,338    -    -    428,289 
Settlement of loans payable -shareholder                                                  
for ordinary shares - Series B   -    -    228,038    7,753              293,029    -    -    300,782 
Settlement of subscriptions receivable                                                  
for reduction of loans payable - shareholder   -    -    -    -    (35,340)   35,340    35,340    -    -    35,340 
Net loss   -    -    -    -    -    -    -    (1,209,872)   -    (1,209,872)
Cumulative translation adjustment   -    -    -    -    -    -    -    -    23,730    23,730 
Balance September 30, 2018 (Unaudited)   9,100,000   $309,400    579,538   $19,704   $-   $-   $2,013,471   $(4,151,283)  $(40,593)  $(1,849,301)

 

See the accompanying notes to the condensed consolidated financial statements.

 

 F-4 
 

 

XTRIBE P.L.C.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

   For the Nine Months Ended 
   September 30, 2018   September 30, 2017 
CASH FLOWS FROM OPERATING ACTIVITIES           
Net loss  $(1,209,872)  $(1,329,943)
Adjustments to reconcile net loss to cash used in operating activities:           
Depreciation & Amortization   12,912    11,951 
Provision for bad debts    -    272,186 
(Increase) decrease in assets, net of acquisition:          
Prepaid expenses    (6,297)   (616)
Other receivable   (20,065)   69,764 
Deposits    24    - 
           
Increase (decrease) in liabilities, net of acquisition:           
Accounts payable and accrued expenses   299,825    (75,550)
Accounts payable - related party    (20,346)   - 
           
Net cash used in operating activities    (943,819)   (1,052,208)
           
CASH FLOWS FROM INVESTING ACTIVIITES           
Investment in subsidiary   (17,521)   - 
Cash acquired in acquisition   1,687    - 
Purchase of software & equipment   (2,243)   (1,523)
Net cash used in investing activities   (18,077)   (1,523)
CASH FLOWS FROM FINANCING ACTIVIITES           
Proceeds from loans payable   216,881    - 
Proceeds from loans payable - Shareholder     343,942    100,300 
Sale of common stock   -    600,000 
Sale of ordinary shares, Series B     428,289    - 
           
Net cash provided by financing activities     989,112    700,300 
           
EFFECT OF EXCHANGE RATE ON CASH    (27,866)   10,125 
           
NET DECREASE IN CASH AND CASH EQUIVALENTS    (650)   (343,306)
           
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR    41,870    427,777 
CASH AND CASH EQUIVALENTS - END OF PERIOD  $41,220   $84,471 
           
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:          
           
Settlement of loans payable -shareholder for ordinary shares - Series B  $336,122   $- 
           
Goodwill  $20,397   $- 

 

 F-5 
 

 

XTRIBE P.L.C.

Notes to the Condensed Consolidated Financial Statements

 

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Nature of the Business

 

XTRIBE P.L.C. was originally registered as a private limited company in the United Kingdom as MEC FOOD (UK) LTD on December 12, 2011. On May 12, 2014, MEC FOOD (UK) changed its name to XTRIBE Limited. On April 30, 2016, the XTRIBE Limited was registered as a public limited company and changed its name to XTRIBE P.L.C.

 

On March 17, 2017, XTRIBE, P.L.C. formed a wholly owned subsidiary, XTRIBE USA Corp. in the State of Delaware. This corporation will be responsible for operations in the United States.

 

On March 9, 2018, XTRIBE, P.L.C. formed a wholly owned subsidiary, XTRIBE SUISSE SA in Switzerland. This corporation will be responsible for operations in Switzerland.

 

On June 5, 2018 (for accounting purposes the effective date is July 1,2018), XTRIBE P.L.C. acquired 100% of interest in X-SOLUTION S.R.L. This corporation will be responsible for operations in Italy.

 

XTRIBE P.L.C. and its wholly owned subsidiaries are collectively referred to as the “Company.”

 

The Company has developed a free smartphone application which allows the user to sell, buy, swap and rent objects and services utilizing an active geolocation tool which locates all potential customers within any specified geographic target. Transactions can be completed without any intermediary, directly between the party and counter-party, without any commissions or third-party payments. Users have the option of customizing the app to best promote commerce. The Company derives revenues by its B2B division, XTRIBE Store. The XTRIBE application is available for Apple and Android devices and can be easily downloaded for free to a user’s mobile device. Once installed, the user establishes a free account and can immediately transact and communicate with other users.

 

The Company’s principal office is located in London, England.

 

Basis of Presentation

 

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). All significant intercompany transactions and balances have been eliminated in consolidation. Certain information and note disclosures normally included in the financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the accompanying disclosures are adequate to make the information presented not misleading. As such, the information included in these financial statements should be read in conjunction with the audited financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 as filed with the Securities and Exchange Commission (“SEC”). In the opinion of the management, these consolidated financial statements include all adjustments, consisting of only normal recurring nature, necessary for a fair statement of the financial position of the Company as of September 30, 2018 and its results of operations and cash flows for the three and nine months ended September 30, 2018 and 2017. The results of operations for the three and nine months ended September 30, 2018 are not necessarily indicative of the results to be expected for the full fiscal year ending December 31, 2018.

 

 F-6 
 

 

The Company is an emerging growth company as the term is used in The Jumpstart Our Business Startups Act enacted on April 5, 2012 and has elected to comply with certain reduced public company reporting requirements

 

Revenue Recognition

 

In accordance with FASB ASC 605, “Revenue Recognition,” the Company recognizes revenue when (i) persuasive evidence of a customer or distributor arrangement exists, (ii) a retailer, distributor or wholesaler receives the goods and acceptance occurs, (iii) the price is fixed or determinable, and (iv) collectability of revenue is reasonably assured.

 

Comprehensive Loss

 

The Company follows Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 220, “Comprehensive Income,” in reporting comprehensive income. Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income. The Company has one item of other comprehensive income (loss), consisting of a foreign translation adjustment.

 

Use of Estimates

 

The preparation of financial statements in conformity with US GAAP 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 revenues and expenses during the reporting period. The management makes the estimates based on its knowledge about current events and expectations about actions that it may undertake in the future. Actual results could differ materially from these estimates.

 

Foreign Currency Transactions and Translation

 

The functional currency of the operations of the Company is the Euro. The capitalization of the Company is provided in British pounds (“GBP”) and US dollars, while the Company transacts a majority of its other transactions including loans from shareholders in Euros, which makes the Euro the functional currency. Gains and losses resulting from transactions in currencies other than the functional currency of the Company are recorded in the statement of operations for the reporting periods as part of general and administrative expense. Included in general and administrative expense were foreign currency transaction gain of $12,850 and loss of $48,553 for the three and nine months ended September 30, 2018 and foreign currency transaction gains of $13,527 and $1,790 for the three and nine months ended September 30, 2017.

 

 F-7 
 

 

The reporting currency of the Company is the United States (U.S.) dollar. The financial statements in functional currency are translated to U.S. dollars using the closing rate of exchange for assets and liabilities and average rate of exchange for the statement of operations. The capital accounts are translated at historical rate. Translation gains and losses are recorded in accumulated other comprehensive income as a component of shareholders’ equity.

 

Advertising Costs

 

Advertising costs are expensed as incurred. Advertising costs were $5,776 and $26,559 for the three and nine months ended September 30, 2018 and $16,585 and $64,115 for the three and nine months ended September 30, 2017 and are included in sales and marketing expenses.

 

Basic and Diluted Net Income per Share of Ordinary Shares

 

The Company follows FASB ASC 260, “Earnings Per Share,” when reporting Earnings Per Share resulting in the presentation of basic and diluted earnings per share. Because the Company reported a net loss for all periods presented and because the Company has no ordinary share equivalents, the amounts reported for basic and diluted loss per share were the same.

 

Research and Development Costs

 

In accordance with FASB ASC 730, research and development costs are expensed when incurred. Research and development costs for the three and nine months ended September 30, 2018 were $82,128 and $263,964 and were $151,670 and $383,413 for the three and nine months ended September 30, 2017.

 

Software development costs that were incurred during the three and nine months ended September 30, 2018 and 2017 have been expensed as incurred and recorded in research and development costs in the statement of operations.

 

Recently Adopted Accounting Pronouncements

 

As of September 30, 2018, and for the period then ended, there were no recently adopted accounting pronouncements that had a material effect on the Company’s financial statements.

 

Recently Issued Accounting Pronouncements Not Yet Adopted

 

As of September 30, 2018, there are no recently issued accounting standards not yet adopted which would have a material effect on the Company’s financial statements through 2018.

 

NOTE 2 – MANAGEMENT PLANS

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred significant losses and experienced negative cash flow from operations since inception. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

 F-8 
 

 

Since inception, the Company has focused on developing and implementing its business plan. The Company believes that its existing cash resources will not be sufficient to sustain operations during the next twelve months. The Company currently needs to generate revenue in order to sustain its operations. In the event that the Company cannot generate sufficient revenue to sustain its operations, the Company will need to reduce expenses or obtain financing through the sale of debt and/or equity securities. The issuance of additional equity would result in dilution to existing shareholders. If the Company is unable to obtain additional funds when they are needed or if such funds cannot be obtained on terms acceptable to the Company, the Company would likely be unable to execute upon the business plan or pay costs and expenses as they are incurred, which would have a material, adverse effect on the business, financial condition and results of operations.

 

Based upon the current cash position and the Company’s planned expense run rate, management believes the Company has funds currently to finance its operations through December 31, 2018.

 

NOTE 3 – Acquisition of X-SOLUTION S.R.L.

 

On June 5, 2018 XTRIBE P.L.C. (the “Company”) acquired 100% of interest in X-SOLUTION S.R.L. for $17,521 (EURO 15,000). For accounting purposes, the effective date of the acquisition is July 1, 2018. The purchase price of the acquisition is allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. The excess of the purchase price over the fair value of identifiable net assets is recorded as goodwill.

 

The purchase price allocation was estimated based on X-SOLUTION S.R.L. historical financial information reflecting International Financial Reporting Standards (“IFRS”) adjusted to U.S. Generally Accepted Accounting Principles (“GAAP”). Using the total consideration for the acquisition, the Company has estimated the allocations to such assets and liabilities. The following table summarizes the allocation of the preliminary purchase price as of the July 1, 2018, effective date of the transaction’s closing:

 

Recognized amounts of identifiable assets acquired, and liabilities assumed at fair value of X-SOLUTION S.R.L.:

 

Cash and cash equivalents  $1,687 
Accounts receivable, net   50,641 
Prepaid expenses and other current assets   8,787 
Preliminary costs, net   - 
Development costs   - 
Equipment, net   472 
Furniture, net   1,450 
Office equipment, net   2,882 
Deposits   3,532 
Accounts payable and accrued expenses   (72,329)
Total identifiable net assets - Fair value   (2,877)
      
Acquisition date Fair value of X-SOLUTION S.R.L.   17,521 
      
Goodwill  $20,397 

 

The following unaudited pro forma consolidated financial data of XTRIBE P.L.C. has been prepared by applying pro forma adjustments to XTRIBE P.L.C. and X-SOLUTION S.R.L.’s historical financial statements to reflect the acquisition of X-SOLUTION S.R.L., an Italian company. The unaudited pro forma consolidated financial data does not purport to represent what the financial condition would have been on July 1, 2018 (the effective acquisition date), nor do they purport to project the results of operations or financial condition for any future period or as of any future date.

 

 F-9 
 

 

The unaudited pro forma consolidated balance sheet presented below assumes that the acquisition occurred on June 30, 2018.

 

Unaudited Pro Forma Consolidated Balance Sheet

as of June 30, 2018

 

   Xtribe PLC
historical
  

X-Solution SRL
(IFRS)
converted to
USD

   X-Solution SRL
US GAAP
adjustments
   Pro forma adjustments   Notes   Pro forma combined 
ASSETS                        
CURRENT ASSETS                              
Cash and cash equivalents  $49,444   $1,686   $-   $-        $51,130 
Accounts receivable, net   -    120,727    (70,084)        3    29,618 
                   (21,025)   4-c      
Prepaid expenses and other current assets   13,481    8,787    -    -         22,268 
TOTAL CURRENT ASSETS   62,925    131,200    (70,084)   (21,025)        103,016 
                               
Equipment, net   -    472    -    -         472 
Furniture, net   -    1,450    -    -         1,450 
Office equipment, net   -    2,882    -    -         2,882 
Goodwill   -    -    -    20,397    4-a    20,397 
Software, net   20,422    -    -    -         20,422 
Preliminary costs, net   -    185,353    (185,353)   -    2-a    - 
Development costs   -    131,892    (131,892)   -    2-b    - 
OTHER ASSETS                              
Deposits   2,550    3,532    -    -         6,082 
Investment - X-Solution SRL   -    -    -    17,521    4-b    - 
                   (17,521)   4-f      
TOTAL ASSETS  $85,897   $456,781   $(387,329)  $(628)       $154,721 
                               
LIABILITIES AND SHAREHOLDERS EQUITY (DEFICIT)                              
                               
CURRENT LIABILITIES                              
Accounts payable and accrued expenses  $274,681   $443,010   $(370,681)        2-a   $343,505 
                  $17,521    4-b      
                   (21,025)   4-c      
Loans payable other   157,688    -    -    -         157,688 
Loans payable shareholders   1,078,288    -    -    -         1,078,288 
TOTAL CURRENT LIABILITIES   1,510,657    443,010    (370,681)   (3,504)        1,579,481 
                               
COMMITMENTS AND CONTINGENCIES                              
                               
SHAREHOLDERS’ DEFICIT                              
                               
Ordinary shares, Series A, $0.034 par value; unlimited shares authorized; 9,100,000 shares issued and outstanding at June 30, 2018   309,400    11,680    -    (11,680)   4-f    309,400 
Ordinary shares, Series B, $0.034 par value; unlimited shares authorized; 579,538 shares issued and outstanding at June 30, 2018   19,704    -    -    -         19,704 
                               
Additional paid in capital   2,013,471    -    -    -         2,013,471 
Accumulated deficit   (3,728,564)   3,011    (16,648)   13,636         (3,728,564)
                        2-a      
                        2-b      
                        2-c      
                        3      
                        4-f      
Accumulated other comprehensive loss   (38,771)   (920)   -    920    4f   (38,771)
SHAREHOLDERS’ DEFICIT   (1,424,760)   13,771    (16,648)   2,876         (1,424,760)
                               
TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT  $85,897   $456,781   $(387,329)  $(628)       $154,721 

 

 F-10 
 

 

The unaudited pro forma consolidated statements of operations presented below assumes that the acquisition occurred on January 1, 2017.

 

   Unaudited Pro Forma Consolidated Statement of Operations as of
June 30, 2018
   Unaudited Pro Forma Consolidated Statement of Operations as of
December 31, 2017
 
                                                 
   Xtribe
PLC
   X-Solution SRL (IFRS)
converted
to
   X-Solution SRL
US GAAP
   Pro forma       Pro forma   Xtribe PLC  

X-Solution SRL

(IFRS)
converted
to

   X-Solution SRL
US GAAP
   Pro forma       Pro forma 
   historical   USD   adjustments   adjustments   Notes   combined   historical   USD   adjustments   adjustments   Notes   combined 
                                                 
SALES  $-   $191,512   $-    $(164,251   4-d   $27,261   $-   $388,681   $-    $(261,568   4-e   $127,113 
                                                             
OPERATING EXPENSES                                                            
General and administrative   465,809    193,725    (37,978   -    2-c    621,556    695,916    384,535    (71,892   -    2-d    1,008,558 
Sales and marketing   139,508    -    -    -         139,508    325,551    1,689    -    -         327,240 
Research and development   181,836    -    -    (164,251   4-d    17,585    468,657    -    127,111         2-e    334,200 
                                                 (261,568   4-e      
Provision for bad debts   -    -    -    -         -    273,270    -    -              273,270 
Total operating expenses   787,153    193,725    (37,978   (164,251        778,649    1,763,394    386,224    55,219    (261,568        1,943,268 
                                                             
LOSS BEFORE OTHER INCOME   (787,153   (2,213   37,978    -         (751,388   (1,763,394   2,457    (55,219   -         (1,816,155
                                                             
OTHER INCOME                                                            
Interest income   -    -    -    -         -    -    1    -    -         1 
    -    -    -    -         -    -    1    -    -         1 
OTHER EXPENSES                                                            
Interest Expense   -    -    -    -         -    -    8    -    -         8 
    -    -    -    -         -    -    8    -    -         8 
NET LOSS ATTRIBUTABLE TO ORDINARY SHAREHOLDERS  $(787,153  $(2,213  $37,978   $-        $(751,388  $(1,763,394  $2,450   $(55,219  $-        $(1,816,162
                                                             
BASIC AND DILUTED NET LOSS PER ORDINARY SHARE ATTRIBUTABLE TO ORDINARY SHAREHOLDERS  $(0.08  $(22.13                 $(0.08  $(0.19  $24.50                  $(0.20
                                                             
BASIC AND DILUTED WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING   9,582,948    100                   9,582,948    9,100,000    100                   9,100,000 

 

 F-11 
 

 

NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION

 

Pro Forma adjustments:

 

1 - IFRS to U.S. GAAP and accounting policy adjustments

 

X-SOLUTION S.R.L. historical financial statements have been prepared in accordance with IFRS as issued by the International Accounting Standards Board (“IASB”), which differs in certain respects from U.S. GAAP, and are reported in Euros. X-Solution S.R.L.’s historical figures in the pro forma have been translated from Euros to U.S. Dollars and the pro forma statements include adjustments to a U.S. GAAP basis.

 

X-SOLUTION S.R.L. historical financial information has been translated as follows:

 

  the unaudited pro forma balance sheet has been translated at the closing rate of 1.16806 U.S. Dollars to one Euro, as of June 30, 2018.
  the unaudited pro forma statement of operations for the six months ended June 30, 2018 has been translated using the average exchange rate for the period of 1.19891 U.S. Dollars to one Euro.
  the unaudited pro forma statement of operations for the year ended December 31, 2017 has been translated using the average exchange rate for the period of 1.12571 U.S. Dollars to one Euro.

 

The following adjustments have been made to X-SOLUTION S.R.L. historical financial information to present it on a U.S. GAAP basis and conform to XTRIBE P.L.C. accounting policies for the purposes of the pro forma financial information:

 

2 - Adjustments to intangible assets

 

Balance Sheet adjustments as of June 30, 2018:

 

  (a) Preliminary costs, net, as of June 30, 2018 in the amount of $185,353 are written off as expenses under U.S. GAAP. In order to be consistent with XTRIBE P.L.C.’s books, $370,681 of accounts payable were written off against accumulated deficit since XTRIBE P.L.C. wrote off in its books the balance of the accounts receivable in 2017.
  (b) Development costs as of June 30, 2018 in the amount of $131,892 are written off as expenses under U.S. GAAP.

 

Profit and Loss adjustment for the period January 1, 2018 to June 30, 2018:

 

  (c) Depreciation expense of $37,978 is reversed since the intangible assets are expensed as incurred under U.S. GAAP.

 

Profit and Loss adjustments for the period January 1, 2017 to December 31, 2017:

 

  (d) Depreciation expense in the amount of $71,892 is reversed since the intangible assets are expensed as incurred under US GAAP.
  (e) In 2017 the intangible costs were recorded as capitalized cost in the amount of $127,111 which is expensed in the proforma, since the intangible assets are expensed as incurred under U.S. GAAP.

 

 F-12 
 

 

3 - Adjustment of Accounts Receivable

 

X-SOLUTION S.R.L. accounts receivable related to XTRIBE P.L.C. as of December 31, 2017 is $70,084. XTRIBE P.L.C. wrote off in its books as accounts payable to X-SOLUTION S.R.L. the balance of $70,084 on December 31, 2017. To reflect the adjustment that XTRIBE P.L.C. did in its books, X-SOLUTION S.R.L. adjusted the accounts receivable balance of $70,084 on June 30, 2018.

 

4 - Pro forma adjustments

 

The following pro forma adjustments have been reflected in the company’s unaudited pro forma consolidated financial information:

 

  (a) To record goodwill. The preliminary purchase price has been allocated to the net fair value of tangible identifiable assets. The excess of the purchase price over the fair value of the tangible assets acquired, and liabilities assumed, resulted in goodwill of $20,397.
  (b) To record the acquisition payable and the investment by XTRIBE P.L.C. to acquire X-SOLUTION S.R.L. on July 1, 2018.
  (c) To reflect the elimination of X-SOLUTION S.R.L. accounts receivable related to XTRIBE P.L.C. as of June 30, 2018 in the amount of $21,025 against the XTRIBE P.L.C. accounts payable.
  (d) To reflect the elimination of intercompany income and expense on the unaudited proforma consolidated statement of operations for the six months ended June 30, 2018 in the amount of $164,251.
  (e) To reflect the elimination of intercompany income and expense on the unaudited proforma consolidated statement of operations for the year ended December 31, 2017 in the amount of $261,568.
  (f) To reflect the elimination of X-SOLUTION S.R.L. equity accounts against the investment in X-SOLUTION S.R.L. by XTRIBE P.L.C.

 

NOTE 4 – OTHER RECEIVABLES

 

On September 30, 2016, the Company entered into an agency agreement whereby the agent would receive five percent of all sales that the agent introduced to the Company. In addition, the agent would reimburse the Company 55 percent of the software development costs that the Company had expended, which were $638,720 as of September 30, 2016. Therefore, the amount of $351,296 was billed to the agent in British pounds (£262,288) and was to be paid by December 31, 2016 and has been recorded as other receivable. In 2017, the Company established 100% reserve for this receivable and wrote-off the receivable against this reserve as of June 30, 2018.

 

NOTE 5-A – LOANS PAYABLE – OTHER

 

During the nine months ended September 30, 2018, the Company borrowed an additional $216,881 in loans payable.

 

The loans are interest-free and unsecured with no formal repayment terms, except for a loan in the amount of $171,740 which is due to be repaid on December 31, 2018 and bears interest at 4% per annum.

 

 F-13 
 

 

NOTE 5-B – LOANS PAYABLE – SHAREHOLDERS

 

During the first quarter ended March 31, 2018, a shareholder and officer of the Company exchanged $300,782 of a loan for 228,038 ordinary shares Series B of the Company.

 

In June 2018, above shareholder exchanged $35,340 from his loan balance for settlement of an outstanding subscription receivable.

 

During the nine months ended September 30, 2018 certain shareholders and officer of the Company loaned the Company $ 343,942. The loans are interest-free and unsecured with no formal repayment terms.

 

NOTE 6 – SHAREHOLDERS’ EQUITY

 

During the nine months ended September 30, 2018, the Company sold 351,500 ordinary shares Series B for $428,289, exchanged 228,038 ordinary shares Series B for $336,122 in loans payable-shareholder and settled an outstanding subscription receivable of $35,340 for a reduction in loans payable – shareholder

 

The ordinary shares Series B have no voting rights and are not negotiable in the United States but are included in earnings per share calculation.

 

NOTE 7 – OPERATING LEASES

 

As of September 30, 2018, the Company was not obligated under any non-cancelable operating lease arrangements.

 

NOTE 8 – RELATED PARTY TRANSACTIONS

 

The Company has a consulting arrangement with Phronesis Consulting Sagl in which the Chief Financial Officer has a material interest. As of September 30, 2018, and December 31, 2017, this company was owed $0 and $20,364. During the three and nine months ended September 30, 2018 the Company paid $18,565 and $56,391 to this company. During the three and nine months ended September 30, 2017, the Company paid $33,655 and $101,072 to this company.

 

The Company received shareholder loans from a company in which the Chief Financial Officer has a material interest. As of September 30, 2018, and December 31, 2017, the balance of the loans was $313,409 and $333,784, the change in the balance resulting from the foreign currency translation.

 

As of September 30, 2018, and December 31, 2017, the Company owed $98,980 and $299,465 to one of the shareholders who is also the Chief Financial Officer of the Company.

 

At September 30, 2018 and December 31, 2017, the Company owed shareholders other than those described above $318,699 and $507,892.

 

NOTE 9 – INCOME TAXES

 

Income tax expense was $0 for the three and nine months ended September 30, 2018 and 2017.

 

As of January 1, 2018, the Company had no unrecognized tax benefits, and accordingly, the Company did not recognize interest or penalties during 2018 related to unrecognized tax benefits. There has been no change in unrecognized tax benefits during the three and nine months ended September 30, 2018, and there was no accrual for uncertain tax positions as of September 30, 2018. Tax years from 2014 through 2017 remain subject to examination by major tax jurisdictions.

 

There is no income tax benefit for the losses for the three and nine months ended September 30, 2018 and 2017, since management has determined that the realization of the net tax deferred asset is not assured and has created a valuation allowance for the entire amount of such benefits.

 

NOTE 10 - Subsequent Events

 

On November 15, 2018 the Company converted all of the series B shares into 579,538 “A” ordinary shares.

 

 F-14 
 

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

 

Forward Looking Statements

 

This Interim Report on Form 10-Q contains, in addition to historical information, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (“PLSRA”), Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) regarding XTribe P.L.C. (the “Company” or “XTribe”, also referred to as “us”, “we” or “our”). Forward-looking statements give our current expectations or forecasts of future events. You can identify these statements by the fact that they do not relate strictly to historical or current facts. Forward-looking statements involve risks and uncertainties. Forward-looking statements include statements regarding, among other things, (a) our projected sales, profitability, and cash flows, (b) our growth strategies, (c) anticipated trends in our industries, (d) our future financing plans and (e) our anticipated needs for working capital. They are generally identifiable by use of the words “may,” “will,” “should,” “anticipate,” “estimate,” “plans,” “potential,” “projects,” “continuing,” “ongoing,” “expects,” “management believes,” “we believe,” “we intend” or the negative of these words or other variations on these words or comparable terminology. These statements may be found under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Description of Business,” as well as in this Form 10-Q generally. In particular, these include statements relating to future actions, prospective products or product approvals, future performance or results of current and anticipated products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, and financial results.

 

Any or all of our forward-looking statements in this report may turn out to be inaccurate. They can be affected by inaccurate assumptions we might make or by known or unknown risks or uncertainties. Consequently, no forward-looking statement can be guaranteed. Actual future results may vary materially as a result of various factors, including, without limitation, the risks outlined under “Risk Factors” detailed in the Company’s Form S-1 registration statement and matters described in this Form 10-Q generally. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this filing will in fact occur. You should not place undue reliance on these forward-looking statements. The forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to publicly update any forward-looking statements, whether as the result of new information, future events, or otherwise. We intend that all forward-looking statements be subject to the safe harbor provisions of the PSLRA.

 

Overview

 

The Company was originally registered as a private limited company in the United Kingdom as MEC FOOD (UK) LTD on December 12, 2011. On May 12, 2014, the Company changed its name to XTRIBE Limited. On April 30, 2016, the Company was registered as a public limited company and changed its name to XTRIBE P.L.C. The Company has developed a free smartphone application which allows the user to sell, buy, swap and rent objects and services utilizing an active geolocation tool which locates all potential customers within any specified geographic target. Transactions can be completed without any intermediary, directly between party and counter-party, without any commissions or third-party payments. Users have the option of customizing the app to best promote commerce. The Company derives revenues by its B2B division, XTRIBE Store. The XTRIBE application is available for Apple and Android devices and can be easily downloaded for free to a user’s mobile device. Once installed, the user establishes a free account and can immediately transact and communicate with other users.

 

 4 
 

 

To date we have not generated material revenues. Commencing in 2017, we expect to generate revenue streams through the use of our fully developed and operational application by its registered users. The Company is currently only operating in Italy, but plans to expand its operations to the United States and other selected markets in the next 12-24 months.

 

As of September 30, 2018, the Company had $41,220 cash on hand which management believes is sufficient to fund expenses of operation through December 31, 2018. Management further believes that it needs to raise a minimum of an additional approximately $1,000,000 in the Offering to complete its product roll-out and marketing and support in Italy. Additional proceeds will enable the Company to expand to the United States and other international markets.

 

Strategic Outlook

 

We believe that the connectivity between by buyers and sellers, the geolocation attributes, and the multilingual capabilities of our application will provide the source for our success in a currently underutilized market.

 

As our registered user base grows, we intend to hire additional information technology staff to maintain our product offerings and develop new products to increase our market share.

 

We believe that our near-term success will depend particularly on our ability to develop customer awareness and confidence in our application. Since we have limited capital resources, we will need to closely manage our expenses and conserve our cash by continually monitoring any increase in expenses and reducing or eliminating unnecessary expenditures. Our prospects must be considered in light of the risks, expenses and difficulties encountered by companies at an early stage of development, particularly given that we operate in new and rapidly evolving markets, that we have limited financial resources, and face an uncertain economic environment. We may not be successful in addressing such risks and difficulties.

 

Results of Operations

 

Comparison of the Three Months Ended September 30, 2018 and 2017

 

The following discussion analyzes our results of operations for the three months ended September 30, 2018 and 2017. The following information should be considered together with our condensed consolidated financial statements for such periods and the accompanying notes thereto.

 

Net Revenue/Net Loss

 

We have not generated significant revenue since our inception. For the three months ended September 30, 2018, we have generated limited sales and in 2017, we have not generated any sales. For the three months ended September 30, 2018 and 2017, we had a net loss of $422,719 and $676,646.

 

General and Administrative Expenses

 

General and administrative expenses increased by $202,865 to $359,760 for the three months ended September 30, 2018 from $156,895 for the three months ended September 30, 2017. The increase resulted primarily from combined net increases in management, consulting, and professional fees during the three months ended September 30, 2018.

 

 5 
 

 

Provision for bad debts

 

The provision for bad debts decreased by $272,186 to $0 for the three months ended September 30, 2018, from $272,186 for the three months ended September 30, 2017. This was a result of the write-off of the provision for bad debts.

 

Sales and Marketing

 

Sales and marketing expenses for the three months ended September 30, 2018 were ($1,589) as compared to $95,895 for the three months ended September 30, 2017, a decrease of $97,484. The decrease resulted primarily from combined net decreases in sales and marketing expenses during the three months ended September 30, 2018.

 

Research and Development

 

Research and development expenses were $82,128 and $151,670 for the three months ended September 30, 2018 and 2017, a decrease of $69,542. The decrease is related to a reduction in research and development activity required during the three months ended September 30, 2018.

 

Comparison of the Nine Months Ended September 30, 2018 and 2017

 

The following discussion analyzes our results of operations for the six months ended September 30, 2018 and 2017. The following information should be considered together with our condensed consolidated financial statements for such periods and the accompanying notes thereto.

 

Net Revenue/Net Loss

 

We have not generated significant revenue since our inception. For the nine months ended September 30, 2018, we have generated limited sales and in 2017, we have not generated any sales. For the nine months ended September 30, 2018 and 2017, we had a net loss of $1,209,872 and $1,329,943

 

General and Administrative Expenses

 

General and administrative expenses increased by $368,535 to $825,569 for the nine months ended September 30, 2018 from $457,034 for the nine months ended September 30, 2017. The increase resulted primarily from increases in professional fees and increase in employee head count and corresponding increase in payroll costs.

 

Provision for bad debts

 

The provision for bad debts decreased by $272,186 to $0 for the nine months ended September 30, 2018, from $272,186 for the nine months ended September 30, 2017. This was a result of the write-off of the provision for bad debts.

 

Sales and Marketing

 

Sales and marketing expenses for the nine months ended September 30, 2018 were $137,919 as compared to $217,310 for the nine months ended September 30, 2017, a decrease of $79,391. This is a result of the Company’s decrease in marketing and advertising expenses during the nine months ended September 30, 2018.

 

 6 
 

 

Research and Development

 

Research and development expenses were $263,964 and $383,413 for the nine months ended September 30, 2018 and 2017, a decrease of $119,449. The decrease is related to a reduction in research and development required during the nine months ended September 30, 2018.

 

Liquidity and Capital Resources

 

As of November 16, 2018, we had cash on hand of approximately $32,707.

 

Net cash used in operating activities decreased by $108,389 to $943,819 for the nine months ended September 30, 2018 as compared to $1,052,208 for the nine months ended September 30, 2017. The decrease resulted primarily from a decrease in the net loss and an increase in accounts payable and accrued expenses.

 

Net cash used in investing activities increased by $16,554 to $18,077 for the nine months ended September 30, 2018 as compared to $1,523 for the nine months ended September 30, 2017. The increase resulted primarily from a increase in the investment in subsidiary.

 

Net cash provided by financing activities increased by $288,812 to $989,112 for the nine months ended September 30, 2018 as compared to $700,300 for the nine months ended September 30, 2017. The increase resulted from proceeds from loans payable, proceeds from shareholder loans and sales of Series B ordinary shares.

 

As we have not realized any significant revenues since our inception, we have financed our operations through private offerings of debt and equity securities. We do not currently maintain a line of credit or term loan with any commercial bank or other financial institution.

 

Since our inception, we have focused on developing and implementing our business plan. We believe that our existing cash resources will not be sufficient to sustain our operations during the next twelve months. We currently need to generate sufficient revenues to support our cost structure to enable us to pay ongoing costs and expenses as they are incurred, finance the development of our platform, and execute the business plan. If we cannot generate sufficient revenue to fund our business plan, we intend to seek to raise such financing through the sale of debt and/or equity securities. The issuance of additional equity would result in dilution to existing shareholders. If we are unable to obtain additional funds when they are needed or if such funds cannot be obtained on terms acceptable to us, we will be unable to execute upon the business plan or pay costs and expenses as they are incurred, which would have a material, adverse effect on our business, financial condition and results of operations.

 

Even if we are successful in generating sufficient revenue or in raising sufficient capital in order to complete the platform, our ability to continue in business as a viable going concern can only be achieved when our revenues reach a level that sustains our business operations. There can be no assurance that we will raise sufficient proceeds, or any proceeds, for us to implement fully our proposed business plan. Moreover there can be no assurance we will generate revenues sufficient to fund our operations. In either such situation, we may not be able to continue our operations and our business might fail.

 

The foregoing forward-looking information was prepared by us in good faith based upon assumptions that we believe to be reasonable. No assurance can be given, however, regarding the attainability of the projections or the reliability of the assumptions on which they are based. The projections are subject to the uncertainties inherent in any attempt to predict the results of our operations, especially where new products and services are involved. Certain of the assumptions used will inevitably not materialize and unanticipated events will occur. Actual results of operations are, therefore, likely to vary from the projections and such variations may be material and adverse to us. Accordingly, no assurance can be given that such results will be achieved. Moreover due to changes in technology, new product announcements, competitive pressures, system design and/or other specifications we may be required to change the current plans.

 

 7 
 

 

Off-Balance Sheet Arrangements

 

As of September 30, 2018, we do not have any off-balance sheet arrangements.

 

Subsequent Events

 

On November 15, 2018 the Company converted all of the series B shares into 579,538 “A” ordinary shares.

 

Critical Accounting Policies

 

Our financial statements are impacted by the accounting policies used and the estimates and assumptions made by management during their preparation. A complete summary of these policies is included in Note 1 of the Notes to Financial Statements included elsewhere herein.

 

Recently Issued Accounting Pronouncements

 

Recently issued accounting pronouncements are discussed in Note 1 of the Notes to Financial Statements contained elsewhere in this prospectus.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Not applicable.

 

ITEM 4. CONTROLS AND PROCEDURES

 

(a) Evaluation of Disclosure Controls and Procedures

 

Our Chief Executive Officer and Chief Financial Officer, after evaluating the effectiveness of our disclosure controls and procedures (as defined in Securities Exchange Act Rule 13a-15(e)) as of the end of the quarterly period covered by this report, have concluded that our disclosure controls and procedures are not effective to reasonably ensure that material information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the Securities and Exchange Commission’s Rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. The principal basis for this conclusion is the lack of segregation of duties within our financial function and the lack of an operating Audit Committee.

 

(b) Changes in Internal Control over Financial Reporting

 

There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) under the Exchange Act) during the fiscal period to which this report relates that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

 8 
 

 

PART II. OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

None.

 

ITEM 1A. RISK FACTORS

 

Smaller reporting companies are not required to provide the information required by this item.

 

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.

 

ITEM 6. EXHIBITS

 

Exhibit No.   Description
     
31.1/31.2   Certification of Principal Executive Officer and Principal Financial Officer pursuant to Rule 13a-14(a) and Rule15d-14(a) of the Securities Exchange Act of 1934, as amended
     
32.1/32.2   Certification of Principal Executive Officer and Principal Financial Officer, pursuant to 18 U.S.C. 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.PRE   XBRL Taxonomy Extension Presentation Linkbase Document
     
101.CAL   XBRL Taxonomy Extension Calculation Linkbase Document
     
101.LAB   XBRL Taxonomy Extension Label Linkbase Document
     
101.DEF   XBRL Taxonomy Extension Definition Linkbase Document

 

 9 
 

 

SIGNATURES

 

In accordance with the requirements of the Securities Exchange Act of 1934, the Registrant has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  XTRIBE P.L.C.
     
November 19, 2018 By: /s/ Enrico dal Monte
    Enrico dal Monte,
    Chief Executive Officer

 

 10 
 

 

EX-31.1 2 ex31-1.htm

 

Exhibit 31.1

 

XTRIBE, P.L.C.

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Enrico dal Monte, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of XTRIBE, P.L.C.;
   
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 (or persons performing the equivalent functions):

 

  (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.

 

By: /s/ Enrico dal Monte  
  Enrico dal Monte  
  Chief Executive Officer  
  (Principal Executive Officer)  
Date: November 19, 2018  

 

   
 

EX-31.2 3 ex31-2.htm

 

Exhibit 31.2

 

XTRIBE, P.L.C.

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Enrico dal Monte, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of XTRIBE, P.L.C.;
   
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 (or persons performing the equivalent functions):

 

  (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.

 

By: /s/ Enrico dal Monte  
  Enrico dal Monte  
  Principal Accounting Officer  
Date: November 19, 2018  

 

   
 

 

EX-32.1 4 ex32-1.htm

 

Exhibit 32.1

 

XTRIBE, P.L.C.

CERTIFICATION PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with this Quarterly Report on Form 10-Q of XTRIBE, P.L.C. (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, in the capacity and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

 

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

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

 

By: /s/ Enrico dal Monte  
  Enrico dal Monte  
  Chief Executive Officer  
  (Principal Executive Officer)  
Date: November 19, 2018  

 

   
 

 

EX-32.2 5 ex32-2.htm

 

Exhibit 32.2

 

XTRIBE, P.L.C.

CERTIFICATION PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with this Quarterly Report on Form 10-Q of XTRIBE, P.L.C. (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, in the capacity and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

 

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

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

 

By: /s/ Enrico dal Monte  
  Enrico dal Monte  
  Principal Accounting Officer  
Date: November 19, 2018  

 

   
 

 

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Loans payable other Loans payable shareholders TOTAL CURRENT LIABILITIES COMMITMENTS AND CONTINGENCIES Ordinary shares value Additional paid in capital Accumulated deficit Accumulated other comprehensive loss SHAREHOLDERS’ DEFICIT TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT SALES General and administrative Sales and marketing Research and development Provision for bad debts Total operating expenses LOSS BEFORE OTHER INCOME Interest income Total other income Interest Expense Total other expense NET LOSS ATTRIBUTABLE TO ORDINARY SHAREHOLDERS BASIC AND DILUTED NET LOSS PER ORDINARY SHARE ATTRIBUTABLE TO ORDINARY SHAREHOLDERS BASIC AND DILUTED WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING Percentage of software development cost expended Software development cost Other receivables Reserve for receivables, write-off percentage Loans payable Loan principal amount Loan due date Loan interest rare per annum Exchange of loans, amount Number of shares exchanged Settlement of subscription receivable for reduction of loan payable - shareholder Proceeds from loans payable - shareholder Number of ordinary shares sold during period Ordinary shares, value Value of shares exchanged for loans payable Extinguishment of Debt [Axis] Accounts payable to related parties Repayments of related party debt Loans outstanding resulting from the foreign currency translation Due to related parties Income tax expense Number of shares converted Acquisition date fair value of acquired entity. Agent Reimbursement [Member] Board of Directors [Member] Business Combination, recognized identifiable assets acquired and liabilities assumed deposits. Business Combination, recognized identifiable assets acquired and liabilities assumed development costs. Business combination recognized identifiable assets acquired and liabilities assumed furniture. Business Combination, recognized identifiable assets acquired and liabilities assumed preliminary costs. Consultant [Member] Consulting Agreement [Member] GBP Currency [Member] GBP [Member] Management plans disclosure [Text Block] Nature of the Business [Policy Text Block] Ordinary Shares Series A [Member] Ordinary Shares Series B [Member Ordinary Shares Subscribed [Member] Percentage of software development cost expended. Recently Issued Accounting Pronouncements Not Yet Adopted [Policy Text Block] Reserve for receivables, write-off percentage. Series A Ordinary Shares [Member] Series B Ordinary Shares [Member] Settlement of loans payable. Settlement of Subscription receivable for reduction of loan payable - shareholder. Shareholders [Member] Stock issued during period shares for settlement of loans payable. Stock issued during period value for settlement of loans payable. Subscription Receivable [Member] United Kingdom [Member] United States [Member] X-SOLUTION S.R.L [Member] EURO [Member] Balance Sheet Adjustment [Member] Statement of Operations Adjustment [Member] June 30, 2018 [Member] December 31, 2017 [Member] Xtribe PLC Historical [Member] X-Solution SRL (IFRS) Converted to USD [Member] X-Solution SRL US GAAP Adjustments [Member] Proforma Adjustments [Member] Proforma Combined [Member] Business acquisitions pro forma, cash and cash equivalents. Business acquisitions pro forma, Accounts receivable. Business acquisitions pro forma, prepaid expenses and other current assets. Business acquisitions pro forma, current assets. Business acquisitions pro forma, equipment, net. Business acquisitions pro forma, furniture, net. Business acquisitions pro forma, office equipment, net. Business acquisitions pro forma, goodwill. Business acquisitions pro forma preliminary costs net. Business acquisitions pro forma, development costs. Business acquisitions pro forma, deposits. Business acquisitions pro forma, investments. Business acquisitions pro forma, assets. Business acquisitions pro forma, accounts payable and accrued expenses. Business acquisitions pro forma, loans payable other. Business acquisitions pro forma, loans payable shareholders. Business acquisitions pro forma, liabilities current. Business acquisitions pro forma, commitments and contingencies. Business acquisitions pro forma, additional paid in capital. Business acquisitions pro forma, ordinary shares value. Business acquisitions pro forma, accumulated deficit. Business acquisitions pro forma, accumulated other comprehensive loss. Business acquisitions pro forma, liabilities and shareholders’ deficit. Business acquisitions pro forma, general and administrative expenses. Business acquisitions pro forma, sales and marketing expenses. Business acquisitions pro forma, research and development expenses. Business acquisitions pro forma, provision for bad debts. Business acquisitions pro forma, total operating expenses. Business acquisitions pro forma, income loss before other income expense. Business acquisitions pro forma, interest income. Business acquisitions pro forma, interest expense. Business acquisition pro forma, earnings per share basic and diluted. Business acquisition pro forma, basic and diluted weighted average ordinary shares outstanding. Intercompany accounts. Intercompany income and expense. Accounts payable written off. Preliminary costs written off. Development costs written off. Business acquisitions pro forma shareholders equity deficit. Business acquisitions pro forma, total other income. Business acquisitions pro forma, total other expense. Business acquisitions pro forma, goodwill software net. Business acquisitions pro forma, investments elimination. Business acquisitions pro forma, accouts receivable to entity. Business acquisitions pro forma, investments entity. Assets, Current Assets Liabilities, Current Stockholders' Equity Attributable to Parent Liabilities and Equity Operating Expenses Other Comprehensive Income (Loss), Net of Tax Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest Shares, Outstanding Increase (Decrease) in Prepaid Expense Increase (Decrease) in Other Receivables Increase (Decrease) in Deposits Increase (Decrease) in Accounts Payable and Accrued Liabilities Increase (Decrease) in Accounts Payable, Related Parties Net Cash Provided by (Used in) Operating Activities Payments to Acquire Interest in Subsidiaries and Affiliates Payments to Acquire Property, Plant, and Equipment Net Cash Provided by (Used in) Investing Activities Net Cash Provided by (Used in) Financing Activities Cash and Cash Equivalents, Period Increase (Decrease) Goodwill, Acquired During Period ManagementPlansDisclosureTextBlock Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedDeposits Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net BusinessAcquisitionsProFormaCashAndCashEquivalents BusinessAcquisitionsProFormaAccountsReceivable BusinessAcquisitionsProFormaPrepaidExpensesAndOtherCurrentAssets BusinessAcquisitionsProFormaCurrentAssets BusinessAcquisitionsProFormaEquipment BusinessAcquisitionsProFormaFurnitureNet BusinessAcquisitionsProFormaOfficeEquipmentNet BusinessAcquisitionsProFormaGoodwill BusinessAcquisitionsProFormaPreliminaryCostsNet BusinessAcquisitionsProFormaDevelopmentCosts BusinessAcquisitionsProFormaDeposits BusinessAcquisitionsProFormaAssets BusinessAcquisitionsProFormaAccountsPayableAndAccruedExpenses BusinessAcquisitionsProFormaCurrentLiabilities BusinessAcquisitionsProFormaCommitmentsAndContingencies BusinessAcquisitionsProFormaAdditionalPaidInCapital BusinessAcquisitionsProFormaRetainedEarningsAccumulatedDeficit BusinessAcquisitionsProFormaAccumulatedOtherComprehensiveLoss BusinessAcquisitionsProFormaShareholdersEquityDeficit Business Acquisition, Pro Forma Revenue BusinessAcquisitionsProFormaGeneralAndAdministrative BusinessAcquisitionsProFormaSalesAndMarketing BusinessAcquisitionsProFormaResearchAndDevelopment BusinessAcquisitionsProFormaProvisionForBadDebts BusinessAcquisitionsProFormaOperatingExpenses BusinessAcquisitionsProFormaIncomeLossBeforeOtherIncomeExpense BusinessAcquisitionsProFormaOtherIncome BusinessAcquisitionsProFormaOtherExpense BusinessAcquisitionProFormaBasicAndDilutedWeightedAverageOrdinarySharesOutstanding EX-101.PRE 11 xtrib-20180930_pre.xml XBRL PRESENTATION FILE XML 12 R1.htm IDEA: XBRL DOCUMENT v3.10.0.1
Document and Entity Information - shares
9 Months Ended
Sep. 30, 2018
Aug. 17, 2018
Document And Entity Information    
Entity Registrant Name XTribe P.L.C.  
Entity Central Index Key 0001690622  
Document Type 10-Q  
Document Period End Date Sep. 30, 2018  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Entity Filer Category Non-accelerated Filer  
Entity Small Business Flag true  
Entity Emerging Growth Company false  
Entity Ex Transition Period false  
Entity Common Stock, Shares Outstanding   9,100,000
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2018  
XML 13 R2.htm IDEA: XBRL DOCUMENT v3.10.0.1
Condensed Consolidated Balance Sheets - USD ($)
Sep. 30, 2018
Dec. 31, 2017
CURRENT ASSETS    
Cash and cash equivalents $ 41,220 $ 41,870
Prepaid expenses 15,516 431
Other receivable 49,683
TOTAL CURRENT ASSETS 106,419 42,301
TANGINBLE ASSETS    
Machinery and Equipment net of accumulated depreciation 8,197
INTANGIBLE ASSETS    
Software, net of accumulated amortization 12,356 26,924
Goodwill 20,397
OTHER ASSETS    
Deposits 6,058 2,550
TOTAL ASSETS 153,427 71,775
CURRENT LIABILITIES    
Accounts payable and accrued expenses 604,690 236,040
Accounts payable - related party 20,346
Loan payable - other 318,699 101,818
Loans payable - shareholders 1,079,339 1,141,141
TOTAL CURRENT LIABILITIES 2,002,728 1,499,345
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' DEFICIT    
Additional paid in capital 2,013,471 1,268,764
Accumulated deficit (4,151,283) (2,941,411)
Accumulated other comprehensive loss (40,593) (64,323)
SHAREHOLDERS' DEFICIT (1,849,301) (1,427,570)
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT 153,427 71,775
Series A Ordinary Shares [Member]    
SHAREHOLDERS' DEFICIT    
Ordinary shares, value 309,400 309,400
Series B Ordinary Shares [Member]    
SHAREHOLDERS' DEFICIT    
Ordinary shares, value $ 19,704
XML 14 R3.htm IDEA: XBRL DOCUMENT v3.10.0.1
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
9 Months Ended 12 Months Ended
Sep. 30, 2018
Dec. 31, 2017
Series A Ordinary Shares [Member]    
Ordinary shares, par value $ 0.034 $ 0.034
Ordinary shares, authorized Unlimited Unlimited
Ordinary shares, issued 9,100,000 9,100,000
Ordinary shares, outstanding 9,100,000 9,100,000
Series B Ordinary Shares [Member]    
Ordinary shares, par value $ 0.034 $ 0.034
Ordinary shares, authorized Unlimited Unlimited
Ordinary shares, issued 579,538 0
Ordinary shares, outstanding 579,538 0
XML 15 R4.htm IDEA: XBRL DOCUMENT v3.10.0.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Income Statement [Abstract]        
SALES $ 17,580 $ 17,580
OPERATING EXPENSES        
General and administrative 359,760 156,895 825,569 457,034
Provision for bad debts 272,186 272,186
Sales and marketing (1,589) 95,895 137,919 217,310
Research and development 82,128 151,670 263,964 383,413
Total operating expenses 440,299 676,646 1,227,452 1,329,943
NET LOSS $ (422,719) $ (676,646) $ (1,209,872) $ (1,329,943)
BASIC AND DILUTED NET LOSS PER ORDINARY SHARE $ (0.04) $ (0.07) $ (0.13) $ (0.15)
BASIC AND DILUTED WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING 9,679,538 9,100,000 9,615,145 9,038,889
XML 16 R5.htm IDEA: XBRL DOCUMENT v3.10.0.1
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Statement of Comprehensive Income [Abstract]        
NET LOSS $ (422,719) $ (676,646) $ (1,209,872) $ (1,329,943)
OTHER COMPREHENSIVE INCOME (LOSS)        
Foreign Currency Translation Adjustments, net of tax 1,823 (33,016) 23,730 (85,750)
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), net of tax 1,823 (33,016) 23,730 (85,750)
COMPREHENSIVE LOSS $ (420,896) $ (709,662) $ (1,186,142) $ (1,415,693)
XML 17 R6.htm IDEA: XBRL DOCUMENT v3.10.0.1
Condensed Consolidated Statement of Changes in Shareholders' Deficit - 9 months ended Sep. 30, 2018 - USD ($)
Ordinary Shares Series A [Member]
Ordinary Shares Series B [Member]
Ordinary Shares Subscribed [Member]
Subscription Receivable [Member]
Additional Paid-In Capital [Member]
Accumulated Deficit [Member]
Accumulated Other Comprehensive Income [Member]
Total
Balance at Dec. 31, 2017 $ 309,400 $ 1,268,764 $ (2,941,411) $ (64,323) $ (1,427,570)
Balance, shares at Dec. 31, 2017 9,100,000            
Sale of ordinary shares - Series B $ 11,951 35,340 (35,340) 416,338 428,289
Sale of ordinary shares - Series B, shares 351,500            
Settlement of loans payable - shareholder for ordinary shares - Series B $ 7,753 293,029 300,782
Settlement of loans payable - shareholder for ordinary shares - Series B, shares 228,038            
Settlement of subscriptions receivable for reduction of loans payable - shareholder (35,340) 35,340 35,340 35,340
Net loss (1,209,872) (1,209,872)
Cumulative translation adjustment 23,730 23,730
Balance at Sep. 30, 2018 $ 309,400 $ 19,704 $ 2,013,471 $ (4,151,283) $ (40,593) $ (1,849,301)
Balance, shares at Sep. 30, 2018 9,100,000 579,538            
XML 18 R7.htm IDEA: XBRL DOCUMENT v3.10.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (1,209,872) $ (1,329,943)
Adjustments to reconcile net loss to cash used in operating activities:    
Depreciation & Amortization 12,912 11,951
Provision for bad debts 272,186
(Increase) decrease in assets, net of acquisition:    
Prepaid expenses (6,297) (616)
Other receivable (20,065) 69,764
Deposits 24
Increase (decrease) in liabilities, net of acquisition:    
Accounts payable and accrued expenses 299,825 (75,550)
Accounts payable - related party (20,346)
Net cash used in operating activities (943,819) (1,052,208)
CASH FLOWS FROM INVESTING ACTIVIITES    
Investment in subsidiary (17,521)
Cash acquired in acquisition 1,687
Purchase of software & equipment (2,243) (1,523)
Net cash used in investing activities (18,077) (1,523)
CASH FLOWS FROM FINANCING ACTIVIITES    
Proceeds from loans payable 216,881
Proceeds from loans payable - Shareholder 343,942 100,300
Sale of common stock 600,000
Sale of ordinary shares, Series B 428,289
Net cash provided by financing activities 989,112 700,300
EFFECT OF EXCHANGE RATE ON CASH (27,866) 10,125
NET DECREASE IN CASH AND CASH EQUIVALENTS (650) (343,306)
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 41,870 427,777
CASH AND CASH EQUIVALENTS - END OF PERIOD 41,220 84,471
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:    
Settlement of loans payable -shareholder for ordinary shares - Series B 336,122
Goodwill $ 20,397
XML 19 R8.htm IDEA: XBRL DOCUMENT v3.10.0.1
Summary of Significant Accounting Policies
9 Months Ended
Sep. 30, 2018
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Nature of the Business

 

XTRIBE P.L.C. was originally registered as a private limited company in the United Kingdom as MEC FOOD (UK) LTD on December 12, 2011. On May 12, 2014, MEC FOOD (UK) changed its name to XTRIBE Limited. On April 30, 2016, the XTRIBE Limited was registered as a public limited company and changed its name to XTRIBE P.L.C.

 

On March 17, 2017, XTRIBE, P.L.C. formed a wholly owned subsidiary, XTRIBE USA Corp. in the State of Delaware. This corporation will be responsible for operations in the United States.

 

On March 9, 2018, XTRIBE, P.L.C. formed a wholly owned subsidiary, XTRIBE SUISSE SA in Switzerland. This corporation will be responsible for operations in Switzerland.

 

On June 5, 2018 (for accounting purposes the effective date is July 1,2018), XTRIBE P.L.C. acquired 100% of interest in X-SOLUTION S.R.L. This corporation will be responsible for operations in Italy.

 

XTRIBE P.L.C. and its wholly owned subsidiaries are collectively referred to as the “Company.”

 

The Company has developed a free smartphone application which allows the user to sell, buy, swap and rent objects and services utilizing an active geolocation tool which locates all potential customers within any specified geographic target. Transactions can be completed without any intermediary, directly between the party and counter-party, without any commissions or third-party payments. Users have the option of customizing the app to best promote commerce. The Company derives revenues by its B2B division, XTRIBE Store. The XTRIBE application is available for Apple and Android devices and can be easily downloaded for free to a user’s mobile device. Once installed, the user establishes a free account and can immediately transact and communicate with other users.

 

The Company’s principal office is located in London, England.

 

Basis of Presentation

 

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). All significant intercompany transactions and balances have been eliminated in consolidation. Certain information and note disclosures normally included in the financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the accompanying disclosures are adequate to make the information presented not misleading. As such, the information included in these financial statements should be read in conjunction with the audited financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 as filed with the Securities and Exchange Commission (“SEC”). In the opinion of the management, these consolidated financial statements include all adjustments, consisting of only normal recurring nature, necessary for a fair statement of the financial position of the Company as of September 30, 2018 and its results of operations and cash flows for the three and nine months ended September 30, 2018 and 2017. The results of operations for the three and nine months ended September 30, 2018 are not necessarily indicative of the results to be expected for the full fiscal year ending December 31, 2018.

 

The Company is an emerging growth company as the term is used in The Jumpstart Our Business Startups Act enacted on April 5, 2012 and has elected to comply with certain reduced public company reporting requirements

 

Revenue Recognition

 

In accordance with FASB ASC 605, “Revenue Recognition,” the Company recognizes revenue when (i) persuasive evidence of a customer or distributor arrangement exists, (ii) a retailer, distributor or wholesaler receives the goods and acceptance occurs, (iii) the price is fixed or determinable, and (iv) collectability of revenue is reasonably assured.

 

Comprehensive Loss

 

The Company follows Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 220, “Comprehensive Income,” in reporting comprehensive income. Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income. The Company has one item of other comprehensive income (loss), consisting of a foreign translation adjustment.

 

Use of Estimates

 

The preparation of financial statements in conformity with US GAAP 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 revenues and expenses during the reporting period. The management makes the estimates based on its knowledge about current events and expectations about actions that it may undertake in the future. Actual results could differ materially from these estimates.

 

Foreign Currency Transactions and Translation

 

The functional currency of the operations of the Company is the Euro. The capitalization of the Company is provided in British pounds (“GBP”) and US dollars, while the Company transacts a majority of its other transactions including loans from shareholders in Euros, which makes the Euro the functional currency. Gains and losses resulting from transactions in currencies other than the functional currency of the Company are recorded in the statement of operations for the reporting periods as part of general and administrative expense. Included in general and administrative expense were foreign currency transaction gain of $12,850 and loss of $48,553 for the three and nine months ended September 30, 2018 and foreign currency transaction gains of $13,527 and $1,790 for the three and nine months ended September 30, 2017.

 

The reporting currency of the Company is the United States (U.S.) dollar. The financial statements in functional currency are translated to U.S. dollars using the closing rate of exchange for assets and liabilities and average rate of exchange for the statement of operations. The capital accounts are translated at historical rate. Translation gains and losses are recorded in accumulated other comprehensive income as a component of shareholders’ equity.

 

Advertising Costs

 

Advertising costs are expensed as incurred. Advertising costs were $5,776 and $26,559 for the three and nine months ended September 30, 2018 and $16,585 and $64,115 for the three and nine months ended September 30, 2017 and are included in sales and marketing expenses.

 

Basic and Diluted Net Income per Share of Ordinary Shares

 

The Company follows FASB ASC 260, “Earnings Per Share,” when reporting Earnings Per Share resulting in the presentation of basic and diluted earnings per share. Because the Company reported a net loss for all periods presented and because the Company has no ordinary share equivalents, the amounts reported for basic and diluted loss per share were the same.

 

Research and Development Costs

 

In accordance with FASB ASC 730, research and development costs are expensed when incurred. Research and development costs for the three and nine months ended September 30, 2018 were $82,128 and $263,964 and were $151,670 and $383,413 for the three and nine months ended September 30, 2017.

 

Software development costs that were incurred during the three and nine months ended September 30, 2018 and 2017 have been expensed as incurred and recorded in research and development costs in the statement of operations.

 

Recently Adopted Accounting Pronouncements

 

As of September 30, 2018, and for the period then ended, there were no recently adopted accounting pronouncements that had a material effect on the Company’s financial statements.

 

Recently Issued Accounting Pronouncements Not Yet Adopted

 

As of September 30, 2018, there are no recently issued accounting standards not yet adopted which would have a material effect on the Company’s financial statements through 2018.

XML 20 R9.htm IDEA: XBRL DOCUMENT v3.10.0.1
Management Plans
9 Months Ended
Sep. 30, 2018
Management Plans  
Management Plans

NOTE 2 – MANAGEMENT PLANS

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred significant losses and experienced negative cash flow from operations since inception. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Since inception, the Company has focused on developing and implementing its business plan. The Company believes that its existing cash resources will not be sufficient to sustain operations during the next twelve months. The Company currently needs to generate revenue in order to sustain its operations. In the event that the Company cannot generate sufficient revenue to sustain its operations, the Company will need to reduce expenses or obtain financing through the sale of debt and/or equity securities. The issuance of additional equity would result in dilution to existing shareholders. If the Company is unable to obtain additional funds when they are needed or if such funds cannot be obtained on terms acceptable to the Company, the Company would likely be unable to execute upon the business plan or pay costs and expenses as they are incurred, which would have a material, adverse effect on the business, financial condition and results of operations.

 

Based upon the current cash position and the Company’s planned expense run rate, management believes the Company has funds currently to finance its operations through December 31, 2018.

XML 21 R10.htm IDEA: XBRL DOCUMENT v3.10.0.1
Acquisition of X-SOLUTION S.R.L.
9 Months Ended
Sep. 30, 2018
Business Combinations [Abstract]  
Acquisition of X-SOLUTION S.R.L.

NOTE 3 – Acquisition of X-SOLUTION S.R.L.

 

On June 5, 2018 XTRIBE P.L.C. (the “Company”) acquired 100% of interest in X-SOLUTION S.R.L. for $17,521 (EURO 15,000). For accounting purposes, the effective date of the acquisition is July 1, 2018. The purchase price of the acquisition is allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. The excess of the purchase price over the fair value of identifiable net assets is recorded as goodwill.

 

The purchase price allocation was estimated based on X-SOLUTION S.R.L. historical financial information reflecting International Financial Reporting Standards (“IFRS”) adjusted to U.S. Generally Accepted Accounting Principles (“GAAP”). Using the total consideration for the acquisition, the Company has estimated the allocations to such assets and liabilities. The following table summarizes the allocation of the preliminary purchase price as of the July 1, 2018, effective date of the transaction’s closing:

 

Recognized amounts of identifiable assets acquired, and liabilities assumed at fair value of X-SOLUTION S.R.L.:

 

Cash and cash equivalents   $ 1,687  
Accounts receivable, net     50,641  
Prepaid expenses and other current assets     8,787  
Preliminary costs, net     -  
Development costs     -  
Equipment, net     472  
Furniture, net     1,450  
Office equipment, net     2,882  
Deposits     3,532  
Accounts payable and accrued expenses     (72,329 )
Total identifiable net assets - Fair value     (2,877 )
         
Acquisition date Fair value of X-SOLUTION S.R.L.     17,521  
         
Goodwill   $ 20,397  

 

The following unaudited pro forma consolidated financial data of XTRIBE P.L.C. has been prepared by applying pro forma adjustments to XTRIBE P.L.C. and X-SOLUTION S.R.L.’s historical financial statements to reflect the acquisition of X-SOLUTION S.R.L., an Italian company. The unaudited pro forma consolidated financial data does not purport to represent what the financial condition would have been on July 1, 2018 (the effective acquisition date), nor do they purport to project the results of operations or financial condition for any future period or as of any future date.

  

The unaudited pro forma consolidated balance sheet presented below assumes that the acquisition occurred on June 30, 2018.

 

Unaudited Pro Forma Consolidated Balance Sheet

as of June 30, 2018

 

    Xtribe PLC
historical
    X-Solution SRL
(IFRS)
converted to
USD
    X-Solution SRL
US GAAP
adjustments
    Pro forma adjustments     Notes     Pro forma combined  
ASSETS                                    
CURRENT ASSETS                                                
Cash and cash equivalents   $ 49,444     $ 1,686     $ -     $ -             $ 51,130  
Accounts receivable, net     -       120,727       (70,084 )             3       29,618  
                              (21,025 )     4-c          
Prepaid expenses and other current assets     13,481       8,787       -       -               22,268  
TOTAL CURRENT ASSETS     62,925       131,200       (70,084 )     (21,025 )             103,016  
                                                 
Equipment, net     -       472       -       -               472  
Furniture, net     -       1,450       -       -               1,450  
Office equipment, net     -       2,882       -       -               2,882  
Goodwill     -       -       -       20,397       4-a       20,397  
Software, net     20,422       -       -       -               20,422  
Preliminary costs, net     -       185,353       (185,353 )     -       2-a       -  
Development costs     -       131,892       (131,892 )     -       2-b       -  
OTHER ASSETS                                                
Deposits     2,550       3,532       -       -               6,082  
Investment - X-Solution SRL     -       -       -       17,521       4-b       -  
                              (17,521 )     4-f          
TOTAL ASSETS   $ 85,897     $ 456,781     $ (387,329 )   $ (628 )           $ 154,721  
                                                 
LIABILITIES AND SHAREHOLDERS EQUITY (DEFICIT)                                                
                                                 
CURRENT LIABILITIES                                                
Accounts payable and accrued expenses   $ 274,681     $ 443,010     $ (370,681 )             2-a     $ 343,505  
                            $ 17,521       4-b          
                              (21,025 )     4-c          
Loans payable other     157,688       -       -       -               157,688  
Loans payable shareholders     1,078,288       -       -       -               1,078,288  
TOTAL CURRENT LIABILITIES     1,510,657       443,010       (370,681 )     (3,504 )             1,579,481  
                                                 
COMMITMENTS AND CONTINGENCIES                                                
                                                 
SHAREHOLDERS’ DEFICIT                                                
                                                 
Ordinary shares, Series A, $0.034 par value; unlimited shares authorized; 9,100,000 shares issued and outstanding at June 30, 2018     309,400       11,680       -       (11,680 )     4-f       309,400  
Ordinary shares, Series B, $0.034 par value; unlimited shares authorized; 579,538 shares issued and outstanding at June 30, 2018     19,704       -       -       -               19,704  
                                                 
Additional paid in capital     2,013,471       -       -       -               2,013,471  
Accumulated deficit     (3,728,564 )     3,011       (16,648 )     13,636               (3,728,564 )
                                      2-a          
                                      2-b          
                                      2-c          
                                      3          
                                      4-f          
Accumulated other comprehensive loss     (38,771 )     (920 )     -       920       4f       (38,771 )
SHAREHOLDERS’ DEFICIT     (1,424,760 )     13,771       (16,648 )     2,876               (1,424,760 )
                                                 
TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT   $ 85,897     $ 456,781     $ (387,329 )   $ (628 )           $ 154,721  

 

The unaudited pro forma consolidated statements of operations presented below assumes that the acquisition occurred on January 1, 2017.

 

    Unaudited Pro Forma Consolidated Statement of Operations as of
June 30, 2018
    Unaudited Pro Forma Consolidated Statement of Operations as of
December 31, 2017
 
                                                                         
    Xtribe
PLC
    X-Solution SRL (IFRS)
converted
to
    X-Solution SRL
US GAAP
    Pro forma           Pro forma     Xtribe PLC    

X-Solution SRL

(IFRS)
converted
to

    X-Solution SRL
US GAAP
    Pro forma           Pro forma  
    historical     USD     adjustments     adjustments     Notes     combined     historical     USD     adjustments     adjustments     Notes     combined  
                                                                         
SALES   $ -     $ 191,512     $ -      $ (164,251     4-d     $ 27,261     $ -     $ 388,681     $ -      $ (261,568     4-e     $ 127,113  
                                                                                                 
OPERATING EXPENSES                                                                                                
General and administrative     465,809       193,725       (37,978     -       2-c       621,556       695,916       384,535       (71,892     -       2-d       1,008,558  
Sales and marketing     139,508       -       -       -               139,508       325,551       1,689       -       -               327,240  
Research and development     181,836       -       -       (164,251     4-d       17,585       468,657       -       127,111               2-e       334,200  
                                                                              (261,568     4-e          
Provision for bad debts     -       -       -       -               -       273,270       -       -                       273,270  
Total operating expenses     787,153       193,725       (37,978     (164,251             778,649       1,763,394       386,224       55,219       (261,568             1,943,268  
                                                                                                 
LOSS BEFORE OTHER INCOME     (787,153     (2,213     37,978       -               (751,388     (1,763,394     2,457       (55,219     -               (1,816,155
                                                                                                 
OTHER INCOME                                                                                                
Interest income     -       -       -       -               -       -       1       -       -               1  
      -       -       -       -               -       -       1       -       -               1  
OTHER EXPENSES                                                                                                
Interest Expense     -       -       -       -               -       -       8       -       -               8  
      -       -       -       -               -       -       8       -       -               8  
NET LOSS ATTRIBUTABLE TO ORDINARY SHAREHOLDERS   $ (787,153   $ (2,213   $ 37,978     $ -             $ (751,388   $ (1,763,394   $ 2,450     $ (55,219   $ -             $ (1,816,162
                                                                                                 
BASIC AND DILUTED NET LOSS PER ORDINARY SHARE ATTRIBUTABLE TO ORDINARY SHAREHOLDERS   $ (0.08   $ (22.13                           $ (0.08   $ (0.19   $ 24.50                             $ (0.20
                                                                                                 
BASIC AND DILUTED WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING     9,582,948       100                               9,582,948       9,100,000       100                               9,100,000  

  

NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION

 

Pro Forma adjustments:

 

1 - IFRS to U.S. GAAP and accounting policy adjustments

 

X-SOLUTION S.R.L. historical financial statements have been prepared in accordance with IFRS as issued by the International Accounting Standards Board (“IASB”), which differs in certain respects from U.S. GAAP, and are reported in Euros. X-Solution S.R.L.’s historical figures in the pro forma have been translated from Euros to U.S. Dollars and the pro forma statements include adjustments to a U.S. GAAP basis.

 

X-SOLUTION S.R.L. historical financial information has been translated as follows:

 

  the unaudited pro forma balance sheet has been translated at the closing rate of 1.16806 U.S. Dollars to one Euro, as of June 30, 2018.
  the unaudited pro forma statement of operations for the six months ended June 30, 2018 has been translated using the average exchange rate for the period of 1.19891 U.S. Dollars to one Euro.
  the unaudited pro forma statement of operations for the year ended December 31, 2017 has been translated using the average exchange rate for the period of 1.12571 U.S. Dollars to one Euro.

 

The following adjustments have been made to X-SOLUTION S.R.L. historical financial information to present it on a U.S. GAAP basis and conform to XTRIBE P.L.C. accounting policies for the purposes of the pro forma financial information:

 

2 - Adjustments to intangible assets

 

Balance Sheet adjustments as of June 30, 2018:

 

  (a) Preliminary costs, net, as of June 30, 2018 in the amount of $185,353 are written off as expenses under U.S. GAAP. In order to be consistent with XTRIBE P.L.C.’s books, $370,681 of accounts payable were written off against accumulated deficit since XTRIBE P.L.C. wrote off in its books the balance of the accounts receivable in 2017.
  (b) Development costs as of June 30, 2018 in the amount of $131,892 are written off as expenses under U.S. GAAP.

 

Profit and Loss adjustment for the period January 1, 2018 to June 30, 2018:

 

  (c) Depreciation expense of $37,978 is reversed since the intangible assets are expensed as incurred under U.S. GAAP.

 

Profit and Loss adjustments for the period January 1, 2017 to December 31, 2017:

 

  (d) Depreciation expense in the amount of $71,892 is reversed since the intangible assets are expensed as incurred under US GAAP.
  (e) In 2017 the intangible costs were recorded as capitalized cost in the amount of $127,111 which is expensed in the proforma, since the intangible assets are expensed as incurred under U.S. GAAP.

 

3 - Adjustment of Accounts Receivable

 

X-SOLUTION S.R.L. accounts receivable related to XTRIBE P.L.C. as of December 31, 2017 is $70,084. XTRIBE P.L.C. wrote off in its books as accounts payable to X-SOLUTION S.R.L. the balance of $70,084 on December 31, 2017. To reflect the adjustment that XTRIBE P.L.C. did in its books, X-SOLUTION S.R.L. adjusted the accounts receivable balance of $70,084 on June 30, 2018.

 

4 - Pro forma adjustments

 

The following pro forma adjustments have been reflected in the company’s unaudited pro forma consolidated financial information:

 

  (a) To record goodwill. The preliminary purchase price has been allocated to the net fair value of tangible identifiable assets. The excess of the purchase price over the fair value of the tangible assets acquired, and liabilities assumed, resulted in goodwill of $20,397.
  (b) To record the acquisition payable and the investment by XTRIBE P.L.C. to acquire X-SOLUTION S.R.L. on July 1, 2018.
  (c) To reflect the elimination of X-SOLUTION S.R.L. accounts receivable related to XTRIBE P.L.C. as of June 30, 2018 in the amount of $21,025 against the XTRIBE P.L.C. accounts payable.
  (d) To reflect the elimination of intercompany income and expense on the unaudited proforma consolidated statement of operations for the six months ended June 30, 2018 in the amount of $164,251.
  (e) To reflect the elimination of intercompany income and expense on the unaudited proforma consolidated statement of operations for the year ended December 31, 2017 in the amount of $261,568.
  (f) To reflect the elimination of X-SOLUTION S.R.L. equity accounts against the investment in X-SOLUTION S.R.L. by XTRIBE P.L.C.

XML 22 R11.htm IDEA: XBRL DOCUMENT v3.10.0.1
Other Receivables
9 Months Ended
Sep. 30, 2018
Receivables [Abstract]  
Other Receivables

NOTE 4 – OTHER RECEIVABLES

 

On September 30, 2016, the Company entered into an agency agreement whereby the agent would receive five percent of all sales that the agent introduced to the Company. In addition, the agent would reimburse the Company 55 percent of the software development costs that the Company had expended, which were $638,720 as of September 30, 2016. Therefore, the amount of $351,296 was billed to the agent in British pounds (£262,288) and was to be paid by December 31, 2016 and has been recorded as other receivable. In 2017, the Company established 100% reserve for this receivable and wrote-off the receivable against this reserve as of June 30, 2018.

XML 23 R12.htm IDEA: XBRL DOCUMENT v3.10.0.1
Loans Payable - Other
9 Months Ended
Sep. 30, 2018
Payables and Accruals [Abstract]  
Loans Payable - Other

NOTE 5-A – LOANS PAYABLE – OTHER

 

During the nine months ended September 30, 2018, the Company borrowed an additional $216,881 in loans payable.

 

The loans are interest-free and unsecured with no formal repayment terms, except for a loan in the amount of $171,740 which is due to be repaid on December 31, 2018 and bears interest at 4% per annum.

XML 24 R13.htm IDEA: XBRL DOCUMENT v3.10.0.1
Loans Payable - Shareholders
9 Months Ended
Sep. 30, 2018
Debt Disclosure [Abstract]  
Loans Payable - Shareholders

NOTE 5-B – LOANS PAYABLE – SHAREHOLDERS

 

During the first quarter ended March 31, 2018, a shareholder and officer of the Company exchanged $300,782 of a loan for 228,038 ordinary shares Series B of the Company.

 

In June 2018, above shareholder exchanged $35,340 from his loan balance for settlement of an outstanding subscription receivable.

 

During the nine months ended September 30, 2018 certain shareholders and officer of the Company loaned the Company $ 343,942. The loans are interest-free and unsecured with no formal repayment terms.

XML 25 R14.htm IDEA: XBRL DOCUMENT v3.10.0.1
Shareholders' Equity
9 Months Ended
Sep. 30, 2018
Equity [Abstract]  
Shareholders' Equity

NOTE 6 – SHAREHOLDERS’ EQUITY

 

During the nine months ended September 30, 2018, the Company sold 351,500 ordinary shares Series B for $428,289, exchanged 228,038 ordinary shares Series B for $336,122 in loans payable-shareholder and settled an outstanding subscription receivable of $35,340 for a reduction in loans payable – shareholder

 

The ordinary shares Series B have no voting rights and are not negotiable in the United States but are included in earnings per share calculation.

XML 26 R15.htm IDEA: XBRL DOCUMENT v3.10.0.1
Operating Leases
9 Months Ended
Sep. 30, 2018
Leases [Abstract]  
Operating Leases

NOTE 7 – OPERATING LEASES

 

As of September 30, 2018, the Company was not obligated under any non-cancelable operating lease arrangements.

XML 27 R16.htm IDEA: XBRL DOCUMENT v3.10.0.1
Related Party Transactions
9 Months Ended
Sep. 30, 2018
Related Party Transactions [Abstract]  
Related Party Transactions

NOTE 8 – RELATED PARTY TRANSACTIONS

 

The Company has a consulting arrangement with Phronesis Consulting Sagl in which the Chief Financial Officer has a material interest. As of September 30, 2018, and December 31, 2017, this company was owed $0 and $20,364. During the three and nine months ended September 30, 2018 the Company paid $18,565 and $56,391 to this company. During the three and nine months ended September 30, 2017, the Company paid $33,655 and $101,072 to this company.

 

The Company received shareholder loans from a company in which the Chief Financial Officer has a material interest. As of September 30, 2018, and December 31, 2017, the balance of the loans was $313,409 and $333,784, the change in the balance resulting from the foreign currency translation.

 

As of September 30, 2018, and December 31, 2017, the Company owed $98,980 and $299,465 to one of the shareholders who is also the Chief Financial Officer of the Company.

 

At September 30, 2018 and December 31, 2017, the Company owed shareholders other than those described above $318,699 and $507,892.

XML 28 R17.htm IDEA: XBRL DOCUMENT v3.10.0.1
Income Taxes
9 Months Ended
Sep. 30, 2018
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 9 – INCOME TAXES

 

Income tax expense was $0 for the three and nine months ended September 30, 2018 and 2017.

 

As of January 1, 2018, the Company had no unrecognized tax benefits, and accordingly, the Company did not recognize interest or penalties during 2018 related to unrecognized tax benefits. There has been no change in unrecognized tax benefits during the three and nine months ended September 30, 2018, and there was no accrual for uncertain tax positions as of September 30, 2018. Tax years from 2014 through 2017 remain subject to examination by major tax jurisdictions.

 

There is no income tax benefit for the losses for the three and nine months ended September 30, 2018 and 2017, since management has determined that the realization of the net tax deferred asset is not assured and has created a valuation allowance for the entire amount of such benefits.

XML 29 R18.htm IDEA: XBRL DOCUMENT v3.10.0.1
Subsequent Events
9 Months Ended
Sep. 30, 2018
Subsequent Events [Abstract]  
Subsequent Events

NOTE 10 - Subsequent Events

 

On November 15, 2018 the Company converted all of the series B shares into 579,538 “A” ordinary shares.

XML 30 R19.htm IDEA: XBRL DOCUMENT v3.10.0.1
Summary of Significant Accounting Policies (Policies)
9 Months Ended
Sep. 30, 2018
Accounting Policies [Abstract]  
Nature of the Business

Nature of the Business

 

XTRIBE P.L.C. was originally registered as a private limited company in the United Kingdom as MEC FOOD (UK) LTD on December 12, 2011. On May 12, 2014, MEC FOOD (UK) changed its name to XTRIBE Limited. On April 30, 2016, the XTRIBE Limited was registered as a public limited company and changed its name to XTRIBE P.L.C.

 

On March 17, 2017, XTRIBE, P.L.C. formed a wholly owned subsidiary, XTRIBE USA Corp. in the State of Delaware. This corporation will be responsible for operations in the United States.

 

On March 9, 2018, XTRIBE, P.L.C. formed a wholly owned subsidiary, XTRIBE SUISSE SA in Switzerland. This corporation will be responsible for operations in Switzerland.

 

On June 5, 2018 (for accounting purposes the effective date is July 1,2018), XTRIBE P.L.C. acquired 100% of interest in X-SOLUTION S.R.L. This corporation will be responsible for operations in Italy.

 

XTRIBE P.L.C. and its wholly owned subsidiaries are collectively referred to as the “Company.”

 

The Company has developed a free smartphone application which allows the user to sell, buy, swap and rent objects and services utilizing an active geolocation tool which locates all potential customers within any specified geographic target. Transactions can be completed without any intermediary, directly between the party and counter-party, without any commissions or third-party payments. Users have the option of customizing the app to best promote commerce. The Company derives revenues by its B2B division, XTRIBE Store. The XTRIBE application is available for Apple and Android devices and can be easily downloaded for free to a user’s mobile device. Once installed, the user establishes a free account and can immediately transact and communicate with other users.

 

The Company’s principal office is located in London, England.

Basis of Presentation

Basis of Presentation

 

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). All significant intercompany transactions and balances have been eliminated in consolidation. Certain information and note disclosures normally included in the financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the accompanying disclosures are adequate to make the information presented not misleading. As such, the information included in these financial statements should be read in conjunction with the audited financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 as filed with the Securities and Exchange Commission (“SEC”). In the opinion of the management, these consolidated financial statements include all adjustments, consisting of only normal recurring nature, necessary for a fair statement of the financial position of the Company as of September 30, 2018 and its results of operations and cash flows for the three and nine months ended September 30, 2018 and 2017. The results of operations for the three and nine months ended September 30, 2018 are not necessarily indicative of the results to be expected for the full fiscal year ending December 31, 2018.

 

The Company is an emerging growth company as the term is used in The Jumpstart Our Business Startups Act enacted on April 5, 2012 and has elected to comply with certain reduced public company reporting requirements

Revenue Recognition

Revenue Recognition

 

In accordance with FASB ASC 605, “Revenue Recognition,” the Company recognizes revenue when (i) persuasive evidence of a customer or distributor arrangement exists, (ii) a retailer, distributor or wholesaler receives the goods and acceptance occurs, (iii) the price is fixed or determinable, and (iv) collectability of revenue is reasonably assured.

Comprehensive Loss

Comprehensive Loss

 

The Company follows Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 220, “Comprehensive Income,” in reporting comprehensive income. Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income. The Company has one item of other comprehensive income (loss), consisting of a foreign translation adjustment.

Use of Estimates

Use of Estimates

 

The preparation of financial statements in conformity with US GAAP 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 revenues and expenses during the reporting period. The management makes the estimates based on its knowledge about current events and expectations about actions that it may undertake in the future. Actual results could differ materially from these estimates.

Foreign Currency Transactions and Translation

Foreign Currency Transactions and Translation

 

The functional currency of the operations of the Company is the Euro. The capitalization of the Company is provided in British pounds (“GBP”) and US dollars, while the Company transacts a majority of its other transactions including loans from shareholders in Euros, which makes the Euro the functional currency. Gains and losses resulting from transactions in currencies other than the functional currency of the Company are recorded in the statement of operations for the reporting periods as part of general and administrative expense. Included in general and administrative expense were foreign currency transaction gain of $12,850 and loss of $48,553 for the three and nine months ended September 30, 2018 and foreign currency transaction gains of $13,527 and $1,790 for the three and nine months ended September 30, 2017.

 

The reporting currency of the Company is the United States (U.S.) dollar. The financial statements in functional currency are translated to U.S. dollars using the closing rate of exchange for assets and liabilities and average rate of exchange for the statement of operations. The capital accounts are translated at historical rate. Translation gains and losses are recorded in accumulated other comprehensive income as a component of shareholders’ equity.

Advertising Costs

Advertising Costs

 

Advertising costs are expensed as incurred. Advertising costs were $5,776 and $26,559 for the three and nine months ended September 30, 2018 and $16,585 and $64,115 for the three and nine months ended September 30, 2017 and are included in sales and marketing expenses.

Basic and Diluted Net Income Per Share of Ordinary Shares

Basic and Diluted Net Income per Share of Ordinary Shares

 

The Company follows FASB ASC 260, “Earnings Per Share,” when reporting Earnings Per Share resulting in the presentation of basic and diluted earnings per share. Because the Company reported a net loss for all periods presented and because the Company has no ordinary share equivalents, the amounts reported for basic and diluted loss per share were the same.

Research and Development Costs

Research and Development Costs

 

In accordance with FASB ASC 730, research and development costs are expensed when incurred. Research and development costs for the three and nine months ended September 30, 2018 were $82,128 and $263,964 and were $151,670 and $383,413 for the three and nine months ended September 30, 2017.

 

Software development costs that were incurred during the three and nine months ended September 30, 2018 and 2017 have been expensed as incurred and recorded in research and development costs in the statement of operations.

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

 

As of September 30, 2018, and for the period then ended, there were no recently adopted accounting pronouncements that had a material effect on the Company’s financial statements.

Recently Issued Accounting Pronouncements Not Yet Adopted

Recently Issued Accounting Pronouncements Not Yet Adopted

 

As of September 30, 2018, there are no recently issued accounting standards not yet adopted which would have a material effect on the Company’s financial statements through 2018.

XML 31 R20.htm IDEA: XBRL DOCUMENT v3.10.0.1
Acquisition of X-SOLUTION S.R.L. (Tables)
9 Months Ended
Sep. 30, 2018
Business Combinations [Abstract]  
Schedule of Recognized Amounts of Identifiable Assets Acquired, and Liabilities Assumed at Fair Value

Recognized amounts of identifiable assets acquired, and liabilities assumed at fair value of X-SOLUTION S.R.L.:

 

Cash and cash equivalents   $ 1,687  
Accounts receivable, net     50,641  
Prepaid expenses and other current assets     8,787  
Preliminary costs, net     -  
Development costs     -  
Equipment, net     472  
Furniture, net     1,450  
Office equipment, net     2,882  
Deposits     3,532  
Accounts payable and accrued expenses     (72,329 )
Total identifiable net assets - Fair value     (2,877 )
         
Acquisition date Fair value of X-SOLUTION S.R.L.     17,521  
         
Goodwill   $ 20,397  

Schedule of Unaudited Pro Forma Consolidated Balance Sheet and Consolidated Statements of Operations

The unaudited pro forma consolidated balance sheet presented below assumes that the acquisition occurred on June 30, 2018.

 

Unaudited Pro Forma Consolidated Balance Sheet

as of June 30, 2018

 

    Xtribe PLC
historical
    X-Solution SRL
(IFRS)
converted to
USD
    X-Solution SRL
US GAAP
adjustments
    Pro forma adjustments     Notes     Pro forma combined  
ASSETS                                    
CURRENT ASSETS                                                
Cash and cash equivalents   $ 49,444     $ 1,686     $ -     $ -             $ 51,130  
Accounts receivable, net     -       120,727       (70,084 )             3       29,618  
                              (21,025 )     4-c          
Prepaid expenses and other current assets     13,481       8,787       -       -               22,268  
TOTAL CURRENT ASSETS     62,925       131,200       (70,084 )     (21,025 )             103,016  
                                                 
Equipment, net     -       472       -       -               472  
Furniture, net     -       1,450       -       -               1,450  
Office equipment, net     -       2,882       -       -               2,882  
Goodwill     -       -       -       20,397       4-a       20,397  
Software, net     20,422       -       -       -               20,422  
Preliminary costs, net     -       185,353       (185,353 )     -       2-a       -  
Development costs     -       131,892       (131,892 )     -       2-b       -  
OTHER ASSETS                                                
Deposits     2,550       3,532       -       -               6,082  
Investment - X-Solution SRL     -       -       -       17,521       4-b       -  
                              (17,521 )     4-f          
TOTAL ASSETS   $ 85,897     $ 456,781     $ (387,329 )   $ (628 )           $ 154,721  
                                                 
LIABILITIES AND SHAREHOLDERS EQUITY (DEFICIT)                                                
                                                 
CURRENT LIABILITIES                                                
Accounts payable and accrued expenses   $ 274,681     $ 443,010     $ (370,681 )             2-a     $ 343,505  
                            $ 17,521       4-b          
                              (21,025 )     4-c          
Loans payable other     157,688       -       -       -               157,688  
Loans payable shareholders     1,078,288       -       -       -               1,078,288  
TOTAL CURRENT LIABILITIES     1,510,657       443,010       (370,681 )     (3,504 )             1,579,481  
                                                 
COMMITMENTS AND CONTINGENCIES                                                
                                                 
SHAREHOLDERS’ DEFICIT                                                
                                                 
Ordinary shares, Series A, $0.034 par value; unlimited shares authorized; 9,100,000 shares issued and outstanding at June 30, 2018     309,400       11,680       -       (11,680 )     4-f       309,400  
Ordinary shares, Series B, $0.034 par value; unlimited shares authorized; 579,538 shares issued and outstanding at June 30, 2018     19,704       -       -       -               19,704  
                                                 
Additional paid in capital     2,013,471       -       -       -               2,013,471  
Accumulated deficit     (3,728,564 )     3,011       (16,648 )     13,636               (3,728,564 )
                                      2-a          
                                      2-b          
                                      2-c          
                                      3          
                                      4-f          
Accumulated other comprehensive loss     (38,771 )     (920 )     -       920       4f       (38,771 )
SHAREHOLDERS’ DEFICIT     (1,424,760 )     13,771       (16,648 )     2,876               (1,424,760 )
                                                 
TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT   $ 85,897     $ 456,781     $ (387,329 )   $ (628 )           $ 154,721  

 

The unaudited pro forma consolidated statements of operations presented below assumes that the acquisition occurred on January 1, 2017.

 

    Unaudited Pro Forma Consolidated Statement of Operations as of
June 30, 2018
    Unaudited Pro Forma Consolidated Statement of Operations as of
December 31, 2017
 
                                                                         
    Xtribe
PLC
    X-Solution SRL (IFRS)
converted
to
    X-Solution SRL
US GAAP
    Pro forma           Pro forma     Xtribe PLC    

X-Solution SRL

(IFRS)
converted
to

    X-Solution SRL
US GAAP
    Pro forma           Pro forma  
    historical     USD     adjustments     adjustments     Notes     combined     historical     USD     adjustments     adjustments     Notes     combined  
                                                                         
SALES   $ -     $ 191,512     $ -      $ (164,251     4-d     $ 27,261     $ -     $ 388,681     $ -      $ (261,568     4-e     $ 127,113  
                                                                                                 
OPERATING EXPENSES                                                                                                
General and administrative     465,809       193,725       (37,978     -       2-c       621,556       695,916       384,535       (71,892     -       2-d       1,008,558  
Sales and marketing     139,508       -       -       -               139,508       325,551       1,689       -       -               327,240  
Research and development     181,836       -       -       (164,251     4-d       17,585       468,657       -       127,111               2-e       334,200  
                                                                              (261,568     4-e          
Provision for bad debts     -       -       -       -               -       273,270       -       -                       273,270  
Total operating expenses     787,153       193,725       (37,978     (164,251             778,649       1,763,394       386,224       55,219       (261,568             1,943,268  
                                                                                                 
LOSS BEFORE OTHER INCOME     (787,153     (2,213     37,978       -               (751,388     (1,763,394     2,457       (55,219     -               (1,816,155
                                                                                                 
OTHER INCOME                                                                                                
Interest income     -       -       -       -               -       -       1       -       -               1  
      -       -       -       -               -       -       1       -       -               1  
OTHER EXPENSES                                                                                                
Interest Expense     -       -       -       -               -       -       8       -       -               8  
      -       -       -       -               -       -       8       -       -               8  
NET LOSS ATTRIBUTABLE TO ORDINARY SHAREHOLDERS   $ (787,153   $ (2,213   $ 37,978     $ -             $ (751,388   $ (1,763,394   $ 2,450     $ (55,219   $ -             $ (1,816,162
                                                                                                 
BASIC AND DILUTED NET LOSS PER ORDINARY SHARE ATTRIBUTABLE TO ORDINARY SHAREHOLDERS   $ (0.08   $ (22.13                           $ (0.08   $ (0.19   $ 24.50                             $ (0.20
                                                                                                 
BASIC AND DILUTED WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING     9,582,948       100                               9,582,948       9,100,000       100                               9,100,000  

XML 32 R21.htm IDEA: XBRL DOCUMENT v3.10.0.1
Summary of Significant Accounting Policies (Details Narrative) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Jun. 05, 2018
Research and development costs $ 82,128 $ 151,670 $ 263,964 $ 383,413  
General and Administrative Expense [Member]          
Foreign currency transaction gain 12,850 13,527 12,850 1,790  
Foreign currency transaction loss 48,553   48,553    
Selling and Marketing Expense [Member]          
Advertising costs $ 5,776 $ 16,585 $ 26,559 $ 64,115  
X-SOLUTION S.R.L [Member]          
Ownership percentage         100.00%
XML 33 R22.htm IDEA: XBRL DOCUMENT v3.10.0.1
Acquisition of X-SOLUTION S.R.L. (Details Narrative)
6 Months Ended 12 Months Ended
Jun. 05, 2018
USD ($)
Jun. 30, 2018
USD ($)
Dec. 31, 2017
USD ($)
Sep. 30, 2018
USD ($)
Jun. 05, 2018
EUR (€)
Goodwill     $ 20,397  
X-SOLUTION S.R.L [Member]          
Ownership percentage 100.00%       100.00%
Acquisition date fair value of X-SOLUTION S.R.L $ 17,521        
Effective date of acquisition Jul. 01, 2018        
Goodwill $ 20,397        
X-SOLUTION S.R.L [Member] | Balance Sheet Adjustment [Member]          
Foreign currency translation from IFRS to U.S. GAAP, translation rate   1.16806      
Preliminary costs written off   $ 185,353      
Accounts payable written off   370,681      
Development costs written off   131,892      
Accounts receivable adjusted amount   70,084 $ 70,084    
Goodwill   20,397      
Intercompany accounts adjusted amount   $ 21,025      
X-SOLUTION S.R.L [Member] | Statement of Operations Adjustment [Member]          
Foreign currency translation from IFRS to U.S. GAAP, translation rate   1.19891 1.12571    
Depreciation expense   $ 37,978 $ 71,892    
Intangible costs capitalized     127,111    
Intercompany income and expense adjusted amount   $ 164,251 $ 261,568    
X-SOLUTION S.R.L [Member] | EURO [Member]          
Acquisition date fair value of X-SOLUTION S.R.L | €         € 15,000
XML 34 R23.htm IDEA: XBRL DOCUMENT v3.10.0.1
Acquisition of X-SOLUTION S.R.L. - Schedule of Recognized Amounts of Identifiable Assets Acquired, and Liabilities Assumed at Fair Value (Details) - USD ($)
Sep. 30, 2018
Jun. 05, 2018
Dec. 31, 2017
Goodwill $ 20,397  
X-SOLUTION S.R.L [Member]      
Cash and cash equivalents   $ 1,687  
Accounts receivable, net   50,641  
Prepaid expenses and other current assets   8,787  
Preliminary costs, net    
Development costs    
Equipment, net   472  
Furniture, net   1,450  
Office equipment, net   2,882  
Deposits   3,532  
Accounts payable and accrued expenses   (72,329)  
Total identifiable net assets - Fair value   (2,877)  
Acquisition date Fair value of X-SOLUTION S.R.L   17,521  
Goodwill   $ 20,397  
XML 35 R24.htm IDEA: XBRL DOCUMENT v3.10.0.1
Acquisition of X-SOLUTION S.R.L. - Schedule of Unaudited Pro Forma Consolidated Balance Sheet and Consolidated Statements of Operations (Details) - USD ($)
6 Months Ended 12 Months Ended
Jun. 30, 2018
Dec. 31, 2017
Xtribe PLC Historical [Member]    
Cash and cash equivalents $ 49,444  
Accounts receivable, net  
Prepaid expenses and other current assets 13,481  
TOTAL CURRENT ASSETS 62,925  
Equipment, net  
Furniture, net  
Office equipment, net  
Goodwill  
Software, net 20,422  
Preliminary costs, net  
Development costs  
Deposits 2,550  
Investment - X-Solution SRL  
TOTAL ASSETS 85,897  
Accounts payable and accrued expenses 274,681  
Loans payable other 157,688  
Loans payable shareholders 1,078,288  
TOTAL CURRENT LIABILITIES 1,510,657  
COMMITMENTS AND CONTINGENCIES  
Additional paid in capital 2,013,471  
Accumulated deficit (3,728,564)  
Accumulated other comprehensive loss (38,771)  
SHAREHOLDERS’ DEFICIT (1,424,760)  
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT 85,897  
SALES
General and administrative 465,809 695,916
Sales and marketing 139,508 325,551
Research and development 181,836 468,657
Provision for bad debts 273,270
Total operating expenses 787,153 1,763,394
LOSS BEFORE OTHER INCOME (787,153) (1,763,394)
Interest income
Total other income
Interest Expense
Total other expense
NET LOSS ATTRIBUTABLE TO ORDINARY SHAREHOLDERS $ (787,153) $ (1,763,394)
BASIC AND DILUTED NET LOSS PER ORDINARY SHARE ATTRIBUTABLE TO ORDINARY SHAREHOLDERS $ (0.08) $ (0.19)
BASIC AND DILUTED WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING 9,582,948 9,100,000
Xtribe PLC Historical [Member] | Series A Ordinary Shares [Member]    
Ordinary shares value $ 309,400  
Xtribe PLC Historical [Member] | Series B Ordinary Shares [Member]    
Ordinary shares value 19,704  
X-Solution SRL (IFRS) Converted to USD [Member]    
Cash and cash equivalents 1,686  
Accounts receivable, net 120,727  
Prepaid expenses and other current assets 8,787  
TOTAL CURRENT ASSETS 131,200  
Equipment, net 472  
Furniture, net 1,450  
Office equipment, net 2,882  
Goodwill  
Software, net  
Preliminary costs, net 185,353  
Development costs 131,892  
Deposits 3,532  
Investment - X-Solution SRL  
TOTAL ASSETS 456,781  
Accounts payable and accrued expenses 443,010  
Loans payable other  
Loans payable shareholders  
TOTAL CURRENT LIABILITIES 443,010  
COMMITMENTS AND CONTINGENCIES  
Additional paid in capital  
Accumulated deficit 3,011  
Accumulated other comprehensive loss (920)  
SHAREHOLDERS’ DEFICIT 13,771  
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT 456,781  
SALES 191,512 $ 388,681
General and administrative 193,725 384,535
Sales and marketing 1,689
Research and development
Provision for bad debts
Total operating expenses 193,725 386,224
LOSS BEFORE OTHER INCOME (2,213) 2,457
Interest income 1
Total other income 1
Interest Expense 8
Total other expense 8
NET LOSS ATTRIBUTABLE TO ORDINARY SHAREHOLDERS $ (2,213) $ 2,450
BASIC AND DILUTED NET LOSS PER ORDINARY SHARE ATTRIBUTABLE TO ORDINARY SHAREHOLDERS $ (22.13) $ 24.5
BASIC AND DILUTED WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING 100 100
X-Solution SRL (IFRS) Converted to USD [Member] | Series A Ordinary Shares [Member]    
Ordinary shares value $ 11,680  
X-Solution SRL (IFRS) Converted to USD [Member] | Series B Ordinary Shares [Member]    
Ordinary shares value  
X-Solution SRL US GAAP Adjustments [Member]    
Cash and cash equivalents  
Accounts receivable, net (70,084)  
Prepaid expenses and other current assets  
TOTAL CURRENT ASSETS (70,084)  
Equipment, net  
Furniture, net  
Office equipment, net  
Goodwill  
Software, net  
Preliminary costs, net (185,353)  
Development costs (131,892)  
Deposits  
Investment - X-Solution SRL  
TOTAL ASSETS (387,329)  
Accounts payable and accrued expenses (370,681)  
Loans payable other  
Loans payable shareholders  
TOTAL CURRENT LIABILITIES (370,681)  
COMMITMENTS AND CONTINGENCIES  
Additional paid in capital  
Accumulated deficit (16,648)  
Accumulated other comprehensive loss  
SHAREHOLDERS’ DEFICIT (16,648)  
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT (387,329)  
SALES
General and administrative (37,978) (71,892)
Sales and marketing
Research and development 127,111
Provision for bad debts
Total operating expenses (37,978) 55,219
LOSS BEFORE OTHER INCOME 37,978 (55,219)
Interest income
Total other income
Interest Expense
Total other expense
NET LOSS ATTRIBUTABLE TO ORDINARY SHAREHOLDERS 37,978 (55,219)
X-Solution SRL US GAAP Adjustments [Member] | Series A Ordinary Shares [Member]    
Ordinary shares value  
X-Solution SRL US GAAP Adjustments [Member] | Series B Ordinary Shares [Member]    
Ordinary shares value  
Proforma Adjustments [Member]    
Cash and cash equivalents  
Accounts receivable, net (21,025)  
Prepaid expenses and other current assets  
TOTAL CURRENT ASSETS (21,025)  
Equipment, net  
Furniture, net  
Office equipment, net  
Goodwill 20,397  
Software, net  
Preliminary costs, net  
Development costs  
Deposits  
Investment - X-Solution SRL 17,521  
Investment - X-Solution SRL (elimination) (17,521)  
TOTAL ASSETS (628)  
Investment - XTRIBE P.L.C 17,521  
Accounts receivable to XTRIBE P.L.C. (21,025)  
Loans payable other  
Loans payable shareholders  
TOTAL CURRENT LIABILITIES (3,504)  
COMMITMENTS AND CONTINGENCIES  
Additional paid in capital  
Accumulated deficit 13,636  
Accumulated other comprehensive loss 920  
SHAREHOLDERS’ DEFICIT 2,876  
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT (628)  
SALES (164,251) (261,568)
General and administrative
Sales and marketing
Research and development (164,251) (261,568)
Provision for bad debts  
Total operating expenses (164,251) (261,568)
LOSS BEFORE OTHER INCOME
Interest income
Total other income
Interest Expense
Total other expense
NET LOSS ATTRIBUTABLE TO ORDINARY SHAREHOLDERS
Proforma Adjustments [Member] | Series A Ordinary Shares [Member]    
Ordinary shares value (11,680)  
Proforma Adjustments [Member] | Series B Ordinary Shares [Member]    
Ordinary shares value  
Proforma Combined [Member]    
Cash and cash equivalents 51,130  
Accounts receivable, net 29,618  
Prepaid expenses and other current assets 22,268  
TOTAL CURRENT ASSETS 103,016  
Equipment, net 472  
Furniture, net 1,450  
Office equipment, net 2,882  
Goodwill 20,397  
Software, net 20,422  
Preliminary costs, net  
Development costs  
Deposits 6,082  
Investment - X-Solution SRL  
TOTAL ASSETS 154,721  
Accounts payable and accrued expenses 343,505  
Loans payable other 157,688  
Loans payable shareholders 1,078,288  
TOTAL CURRENT LIABILITIES 1,579,481  
COMMITMENTS AND CONTINGENCIES  
Additional paid in capital 2,013,471  
Accumulated deficit (3,728,564)  
Accumulated other comprehensive loss (38,771)  
SHAREHOLDERS’ DEFICIT (1,424,760)  
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT 154,721  
SALES 27,261 127,113
General and administrative 621,556 1,008,558
Sales and marketing 139,508 327,240
Research and development 17,585 334,200
Provision for bad debts 273,270
Total operating expenses 778,649 1,943,268
LOSS BEFORE OTHER INCOME (751,388) (1,816,155)
Interest income 1
Total other income 1
Interest Expense 8
Total other expense 8
NET LOSS ATTRIBUTABLE TO ORDINARY SHAREHOLDERS $ (751,388) $ (1,816,162)
BASIC AND DILUTED NET LOSS PER ORDINARY SHARE ATTRIBUTABLE TO ORDINARY SHAREHOLDERS $ (0.08) $ (0.20)
BASIC AND DILUTED WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING 9,582,948 9,100,000
Proforma Combined [Member] | Series A Ordinary Shares [Member]    
Ordinary shares value $ 309,400  
Proforma Combined [Member] | Series B Ordinary Shares [Member]    
Ordinary shares value $ 19,704  
XML 36 R25.htm IDEA: XBRL DOCUMENT v3.10.0.1
Acquisition of X-SOLUTION S.R.L. - Schedule of Unaudited Pro Forma Consolidated Balance Sheet and Consolidated Statements of Operations (Details) (Parenthetical) - $ / shares
6 Months Ended 9 Months Ended 12 Months Ended
Jun. 30, 2018
Sep. 30, 2018
Dec. 31, 2017
Series A Ordinary Shares [Member]      
Ordinary shares, par value   $ 0.034 $ 0.034
Ordinary shares, authorized   Unlimited Unlimited
Ordinary shares, issued   9,100,000 9,100,000
Ordinary shares, outstanding   9,100,000 9,100,000
Series B Ordinary Shares [Member]      
Ordinary shares, par value   $ 0.034 $ 0.034
Ordinary shares, authorized   Unlimited Unlimited
Ordinary shares, issued   579,538 0
Ordinary shares, outstanding   579,538 0
Xtribe PLC Historical [Member] | Series A Ordinary Shares [Member]      
Ordinary shares, par value $ 0.034    
Ordinary shares, authorized Unlimited    
Ordinary shares, issued 9,100,000    
Ordinary shares, outstanding 9,100,000    
Xtribe PLC Historical [Member] | Series B Ordinary Shares [Member]      
Ordinary shares, par value $ 0.034    
Ordinary shares, authorized Unlimited    
Ordinary shares, issued 579,538    
Ordinary shares, outstanding 579,538    
X-Solution SRL (IFRS) Converted to USD [Member] | Series A Ordinary Shares [Member]      
Ordinary shares, par value $ 0.034    
Ordinary shares, authorized Unlimited    
Ordinary shares, issued 9,100,000    
Ordinary shares, outstanding 9,100,000    
Proforma Adjustments [Member] | Series A Ordinary Shares [Member]      
Ordinary shares, par value $ 0.034    
Ordinary shares, authorized Unlimited    
Ordinary shares, issued 9,100,000    
Ordinary shares, outstanding 9,100,000    
Proforma Combined [Member] | Series A Ordinary Shares [Member]      
Ordinary shares, par value $ 0.034    
Ordinary shares, authorized Unlimited    
Ordinary shares, issued 9,100,000    
Ordinary shares, outstanding 9,100,000    
Proforma Combined [Member] | Series B Ordinary Shares [Member]      
Ordinary shares, par value $ 0.034    
Ordinary shares, authorized Unlimited    
Ordinary shares, issued 579,538    
Ordinary shares, outstanding 579,538    
XML 37 R26.htm IDEA: XBRL DOCUMENT v3.10.0.1
Other Receivables (Details Narrative)
Sep. 30, 2016
USD ($)
Jun. 30, 2018
Dec. 31, 2016
USD ($)
Dec. 31, 2016
GBP (£)
Percentage of software development cost expended 55.00%      
Software development cost $ 638,720      
Other receivables     $ 351,296  
Reserve for receivables, write-off percentage   100.00%    
GBP [Member]        
Other receivables | £       £ 262,288
XML 38 R27.htm IDEA: XBRL DOCUMENT v3.10.0.1
Loans Payable - Other (Details Narrative)
9 Months Ended
Sep. 30, 2018
USD ($)
Payables and Accruals [Abstract]  
Loans payable $ 216,881
Loan principal amount $ 171,740
Loan due date Dec. 31, 2018
Loan interest rare per annum 4.00%
XML 39 R28.htm IDEA: XBRL DOCUMENT v3.10.0.1
Loans Payable - Shareholders (Details Narrative) - USD ($)
3 Months Ended 6 Months Ended 9 Months Ended
Mar. 31, 2018
Jun. 30, 2018
Sep. 30, 2018
Sep. 30, 2017
Settlement of subscription receivable for reduction of loan payable - shareholder   $ 35,340 $ 35,340  
Proceeds from loans payable - shareholder     343,942 $ 100,300
Series B Ordinary Shares [Member]        
Exchange of loans, amount $ 300,782   $ 336,122  
Number of shares exchanged 228,038   228,038  
Settlement of subscription receivable for reduction of loan payable - shareholder     $ 35,340  
XML 40 R29.htm IDEA: XBRL DOCUMENT v3.10.0.1
Shareholders' Equity (Details Narrative) - USD ($)
3 Months Ended 6 Months Ended 9 Months Ended
Mar. 31, 2018
Jun. 30, 2018
Sep. 30, 2018
Ordinary shares, value     $ 428,289
Settlement of subscription receivable for reduction of loan payable - shareholder   $ 35,340 $ 35,340
Series B Ordinary Shares [Member]      
Number of ordinary shares sold during period     351,500
Ordinary shares, value     $ 428,489
Number of shares exchanged 228,038   228,038
Value of shares exchanged for loans payable $ 300,782   $ 336,122
Settlement of subscription receivable for reduction of loan payable - shareholder     $ 35,340
XML 41 R30.htm IDEA: XBRL DOCUMENT v3.10.0.1
Related Party Transactions (Details Narrative) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Dec. 31, 2017
Accounts payable to related parties     $ 20,346
Loans outstanding resulting from the foreign currency translation 216,881   216,881    
Chief Financial Officer [Member]          
Loans outstanding resulting from the foreign currency translation 313,409   313,409   333,784
Due to related parties 98,980   98,980   299,465
Shareholders [Member]          
Due to related parties 318,699   318,699   507,892
Consulting Agreement [Member] | Chief Financial Officer [Member]          
Accounts payable to related parties 0   0   $ 20,364
Repayments of related party debt $ 18,565 $ 33,655 $ 56,391 $ 101,072  
XML 42 R31.htm IDEA: XBRL DOCUMENT v3.10.0.1
Income Taxes (Details Narrative) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Income Tax Disclosure [Abstract]        
Income tax expense $ 0 $ 0 $ 0 $ 0
XML 43 R32.htm IDEA: XBRL DOCUMENT v3.10.0.1
Subsequent Events (Details Narrative)
Nov. 15, 2018
shares
Subsequent Event [Member] | Series A Ordinary Shares [Member]  
Number of shares converted 579,538
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