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2. Summary of Significant Accounting Policy (Policies)
3 Months Ended
Mar. 31, 2019
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

 

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, these financial statements do not include all of the information and footnotes required for complete financial statements and should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on April 15, 2019.

 

In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair presentation of the Company’s unaudited condensed consolidated financial position as of March 31, 2019, its consolidated results of operations for the three months ended March 31, 2019, cash flows for the three months ended March 31, 2019 and change in equity for the three months ended March 31, 2019, as applicable, have been made. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the operating results that may be expected for the year ending December 31, 2019 or any future periods.

Concentrations of Credit Risk

Concentrations of Credit Risk

 

There were two customers accounted for 100% of net sales for the three months ended March 31, 2019. Net sales for the three months ended March 31, 2018 was nil, as the Company started to deliver goods to customers since November 2018.

 

Two customers accounted for 99.47% and 99.29% of accounts receivables as of March 31, 2019 and December 31, 2018, respectively.

 

During the three months ended March 31, 2019, there was one major suppliers accounted for 91% of our total purchase amount. There were two suppliers accounted for 31.6% and 57.4% respectively of our total purchase amount during the three months ended March 31, 2018.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

 

Recently Adopted Accounting Standards

 

ASU No. 2016-02. In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, “Lease (Topic 842)”, a new lease standard requiring lessees to recognize lease assets and lease liabilities for most leases classified as operating leases under previous U.S. GAAP. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset (“ROU” asset) representing its right to use the underlying asset for the lease term. The guidance is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company has adopted this standard effective January 1, 2019. The Company elected the optional transition method that permits adoption of the new standard prospectively, as of the effective date, without adjusting comparative periods presented. Adoption of the standard resulted in the recognition of $155,982 of ROU assets and $8,378 of lease liabilities on the consolidated balance sheet as of March 31, 2019 at adoption related to office space, data and fulfillment centers, and other corporate assets.

 

See Note 6 for disclosure required by ASC 842.

 

Except for the ASUs issued but not yet adopted disclosed in Note 3 to the financial statements on Form 10-K for the fiscal year ended December 31, 2018, previously filed with the SEC, there is no ASU issued by the FASB that is expected to have a material impact on the condensed consolidated financial statements upon adoption.