0001096906-23-001625.txt : 20230817 0001096906-23-001625.hdr.sgml : 20230817 20230817150955 ACCESSION NUMBER: 0001096906-23-001625 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 93 CONFORMED PERIOD OF REPORT: 20230630 FILED AS OF DATE: 20230817 DATE AS OF CHANGE: 20230817 FILER: COMPANY DATA: COMPANY CONFORMED NAME: QMIS TBS Capital Group Corp. CENTRAL INDEX KEY: 0001796160 STANDARD INDUSTRIAL CLASSIFICATION: SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211] IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-238872 FILM NUMBER: 231181458 BUSINESS ADDRESS: STREET 1: 37-12 PRINCE ST. STREET 2: #9C CITY: FLUSHING STATE: NY ZIP: 11354 BUSINESS PHONE: 9176753214 MAIL ADDRESS: STREET 1: 37-12 PRINCE ST. STREET 2: #9C CITY: FLUSHING STATE: NY ZIP: 11354 FORMER COMPANY: FORMER CONFORMED NAME: TBS Capital Management Group Corp. DATE OF NAME CHANGE: 20191206 10-Q 1 qmis-20230630.htm QMIS TBS CAPITAL GROUP CORP. - FORM 10-Q SEC FILING QMIS TBS CAPITAL GROUP CORP. - Form 10-Q SEC filing
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

 

For the quarterly period ended June 30, 2023

 

TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Commission file number: 333-238872

 

QMIS TBS CAPITAL GROUP CORP.

(Exact name of registrant as specified in its charter)

 

Delaware

 

32-0619708

(State or Other Jurisdiction of

Incorporation or Organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

100 N. Barranca St. #1000

 

 

West Covina, CA

 

91791

(Address of Principal Executive Offices)

 

(Zip Code)

 

            Registrant’s telephone number, including area code: 917-675-3214            

(Former name, former address and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading

Symbols

Name of each exchange

on which registered

None

N/A

None

 

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 No


 

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

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.

 

Large accelerated filer

Accelerated filer

Non-accelerated Filer

Smaller reporting company

 

 

Emerging growth company

 

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

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(1) of the Exchange Act.

 

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: As of August 17, 2023, the issuer had 301,000,100 shares of its common stock issued and outstanding.

 

 


TABLE OF CONTENTS

 

PART I

 

Page

 

 

 

Item 1.

Financial Statements

2

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

22

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

37

 

 

 

Item 4.

Controls and Procedures

37

 

 

 

PART II

 

 

 

 

Item 1.

Legal Proceedings

39

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

39

 

 

 

Item 6.

Exhibits

39

 

 

 

Signatures

40

 

CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS

 

Certain statements and information in this Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 (the “Quarterly Report”) may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, which address activities, events, or developments that we expect or anticipate will or may occur in the future, including such things as future capital expenditures, commencement of business operations, business strategy, statements related to the expected effects on our business from the novel coronavirus (“COVID-19”) pandemic, and other similar matters are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “hope,” “intend,” “project,” “positioned,” or “strategy” or other comparable terminology. These forward-looking statements are based largely on our current expectations and assumptions and are subject to a number of risks and uncertainties, many of which are beyond our control. These statements are subject to many risks, uncertainties, and other important factors that could cause actual future results to differ materially from those expressed in the forward-looking statements including, but not limited to, the duration and scope of the COVID-19 pandemic and impact on the demand for the products we distribute; our ability to obtain the products from the manufacturer; actions governments, businesses, and individuals take in response to the pandemic, including mandatory business closures and restrictions on onsite commercial interactions; the impact of the COVID-19 pandemic and action taken in response to the pandemic on global and regional economies and economic activity; the pace of recovery when the COVID-19 pandemic subsides; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; our inability to sustain profitable sales growth; and circumstances or developments that may make us unable to implement or realize the anticipated benefits, or that may increase the costs, of our current and planned business initiatives. For a more thorough discussion of these risks, you should read this entire Report carefully, as well as the risks discussed under “Risk Factors” in our Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission on April 17, 2023.

 

Although management believes that the assumptions underlying the forward-looking statements included in this Report are reasonable, such statements do not guarantee our future performance, and actual results could differ from those contemplated by these forward-looking statements. The assumptions used for purposes of the forward-looking statements specified in the following information represent estimates of future events and are subject to uncertainty as to possible changes in economic, legislative, industry, and other circumstances. As a result, the identification and interpretation of data and other information and their use in developing and selecting assumptions from and among reasonable alternatives require the exercise of judgment. To the extent that the assumed events do not occur, the outcome may vary substantially from anticipated or projected results, and, accordingly, no opinion is expressed on the achievability of those forward-looking statements. In the light of these risks and uncertainties, all of the forward-looking statements made herein are qualified by these cautionary statements, and there can be no assurance that the results and events contemplated by the forward-looking statements contained in this Report will in fact transpire. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. We expressly disclaim any obligation to update or revise any forward-looking statements.


3


 

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

 

 

QMIS TBS CAPITAL GROUP CORP. AND SUBSIDIARIES

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

ASSETS

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

$

120,605  

 

187,437  

 

Accounts receivable, net (Note 4)

 

 

 

 

100,039  

 

2,054  

 

Prepaid expenses

 

 

 

 

322  

 

-  

 

Contract security deposit

 

 

 

 

8,062  

 

8,506  

         Total Current Assets

 

 

 

 

229,028  

 

197,997  

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net (Note 5)

 

 

 

3,430  

 

4,557  

Operating lease right of use asset, net (Note 10)

 

 

550  

 

12,801  

Total Assets

 

 

 

$

233,008  

 

215,355  

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

 

Accounts payable (Note 6)

 

 

 

$

36,441  

 

33,566  

 

Accrued expenses (Note 7)

 

 

 

 

251,685  

 

181,253  

 

Deferred revenue-related parties (Note 9 (1))

 

 

-  

 

1,500  

 

Taxes payable (Note 8)

 

 

 

 

983,996  

 

1,017,176  

 

Operating lease liabilities – current (Note 10)

 

 

860  

 

14,796  

 

Due to related parties (Note 9 (5))

 

 

 

 

761,195  

 

675,374  

 

 

Total Current Liabilities

 

 

 

 

2,034,177  

 

1,923,665  

 

 

 

 

 

 

 

 

 

 

 

 

Operating lease liabilities – noncurrent (Note 10)

 

 

114  

 

357  

Total Liabilities

 

 

 

 

2,034,291  

 

1,924,022  

 

 

 

 

 

 

 

 

 

 

 

 

Commitments and Contingencies (Note 15)

 

 

 

-  

 

-  

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' Equity:

 

 

 

 

 

 

 

 

 

Preferred stock, par value $0.0001, 10,000,000 shares authorized;0 share issued and outstanding as of December 31, 2022 and 2021

 

 

-  

 

-  

 

 

Common stock, par value $0.0001, 750,000,000 shares authorized; 301,000,100 shares issued and outstanding as of June 30, 2023 and December 31, 2022 *

 

 

30,100  

 

30,100  

 

 

Additional paid-in capital

 

 

 

 

1,251,350  

 

1,251,350  

 

 

Retained Earnings (Accumulated deficit)

 

 

(3,135,389) 

 

(3,013,236) 

 

 

Accumulated other comprehensive income

 

 

60,597  

 

30,104  

 

 

Total QMIS TBS Capital Group Corp. shareholders' equity

 

 

(1,793,342) 

 

(1,701,682) 

 

 

 

Non-controlling interest

 

 

 

 

(7,941) 

 

(6,985) 

 

 

Total Shareholders' Equity (Deficit)

 

 

 

(1,801,283) 

 

(1,708,667) 

 

 

 

Total Liabilities and Shareholders' Equity (Deficit)

 

$

233,008  

 

215,355  

 

 

 

 

 

 

* Retrospectively restated for effect of share issuances on February 13, 2023.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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


4


QMIS TBS CAPITAL GROUP CORP. AND SUBSIDIARIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

For the Six Months Ended

 

 

 

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Consultant services

$

 319,937 

 

$

 (1,638)

 

$

 1,096,284 

 

$

 630,040 

 

Software development and maintenance services-Related parties (Note 9 (1))

 

 15,243 

 

 

 5,344 

 

 

 30,970 

 

 

 95,997 

 

Software development and maintenance services

 

 2,614 

 

 

 - 

 

 

 18,085 

 

 

 - 

 

 

Total revenue

 

 337,794 

 

 

 3,706 

 

 

 1,145,339 

 

 

 726,037 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs of Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Costs of consultant services

 

 291,636 

 

 

 32,370 

 

 

 412,453 

 

 

 1,083,141 

 

Costs of software development and maintenance services

 

 11,741 

 

 

 1,748 

 

 

 31,138 

 

 

 65,367 

 

 

Total of costs of revenue

 

 303,377 

 

 

 34,118 

 

 

 443,591 

 

 

 1,148,508 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

 34,417 

 

 

 (30,412)

 

 

 701,748 

 

 

 (422,471)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Payroll and employee benefit

 

 12,115 

 

 

 7,159 

 

 

 27,473 

 

 

 14,601 

 

 

Depreciation expenses

 

 997 

 

 

 1,166 

 

 

 2,133 

 

 

 2,367 

 

 

Office expenses

 

 68,346 

 

 

 13,338 

 

 

 80,816 

 

 

 26,643 

 

 

Rental expenses

 

 9,230 

 

 

 9,909 

 

 

 19,133 

 

 

 19,770 

 

 

Due and subscription

 

 5,300 

 

 

 115 

 

 

 39,550 

 

 

 33,435 

 

 

Professional fees

 

 191,802 

 

 

 43,921 

 

 

 245,867 

 

 

 91,885 

 

 

Consultant fees

 

 - 

 

 

 50,000 

 

 

 - 

 

 

 137,000 

 

 

Management fees

 

 - 

 

 

 10,000 

 

 

 - 

 

 

 30,000 

 

 

Management fees-related party (Note 9 (2))

 

 99,977 

 

 

 (2,120)

 

 

 385,166 

 

 

 820,686 

 

 

Advisory fee-related party (Note 9 (3))

 

 3,600 

 

 

 - 

 

 

 7,205 

 

 

 - 

 

 

 

Total general and administrative expenses

 

 391,367 

 

 

 133,488 

 

 

 807,343 

 

 

 1,176,387 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Operating Expenses

 

 391,367 

 

 

 133,488 

 

 

 807,343 

 

 

 1,176,387 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) from Operation

 

 (356,950)

 

 

 (163,900)

 

 

 (105,595)

 

 

 (1,598,858)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expenses)

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 224 

 

 

 - 

 

 

 235 

 

 

 2 

 

Gain (loss) on foreign currency transaction

 

 (1,462)

 

 

 299 

 

 

 573 

 

 

 7,491 

 

 

Total Other Income (Expenses)

 

 (1,238)

 

 

 299 

 

 

 808 

 

 

 7,493 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before Provision for Income Tax

 

 (358,188)

 

 

 (163,601)

 

 

 (104,787)

 

 

 (1,591,365)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for Income Tax

 

 77 

 

 

 (1,027)

 

 

 19,202 

 

 

 109,994 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

 (358,265)

 

 

 (162,574)

 

 

 (123,989)

 

 

 (1,701,359)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: net income attributable to non-controlling interest

 

 (2,297)

 

 

 (5,746)

 

 

 (1,836)

 

 

 2,633 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to

 

 

 

 

 

 

 

 

 

 

 

 

QMIS TBS Capital Group Corp.

$

 (355,968)

 

$

 (156,828)

 

$

 (122,153)

 

$

 (1,703,992)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

Effects of foreign currency conversion

 

 23,004 

 

 

 13,575 

 

 

 31,373 

 

 

 18,136 

Total comprehensive income (loss)

 

 (332,964)

 

 

 (143,253)

 

 

 (90,780)

 

 

 (1,685,856)

 

Less: comprehensive income attributable to non-controlling interest

 

 435 

 

 

 (852)

 

 

 880 

 

 

 (981)

Comprehensive income (loss) attributable to

 

 

 

 

 

 

 

 

 

 

 

 

QMIS TBS Capital Group Corp.

$

 (333,399)

 

$

 (142,401)

 

$

 (91,660)

 

$

 (1,684,875)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Fully Diluted Loss per Share

$

 (0.00)

 

$

 (0.00)

 

$

 (0.00)

 

$

 (0.01)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 301,000,100 

 

 

 301,000,100 

 

 

 301,000,100 

 

 

 301,000,100 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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


5


 

QMIS TBS CAPITAL GROUP CORP. AND SUBSIDIARIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retained

 

Accumulated

 

Total QMIS TBS

 

 

 

Total

 

 

Ordinary Shares

 

Additional

 

Earnings

 

Other

 

Capital Group Corp.

 

 

 

Shareholders'

 

 

Number of

 

 

 

Paid-in

 

(Accumulated

 

Comprehensive

 

Shareholders'

 

Non-controlling

 

Equity

 

Shares*

 

Amount

 

Capital

 

Deficit)

 

Income (Loss)

 

Equity (Deficit)

 

Interest

 

(Deficit)

Balance at

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   January 1, 2023*

 

301,000,100

 

30,100 

 

1,251,350 

 

(3,013,236)

 

30,104  

 

(1,701,682) 

 

(6,985) 

 

(1,708,667)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

-

 

- 

 

- 

 

233,815 

 

-  

 

233,815  

 

461  

 

234,276 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

-

 

- 

 

- 

 

- 

 

7,924  

 

7,924  

 

445  

 

8,369 

Balances at

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   March 31, 2023*

 

301,000,100

 

30,100 

 

1,251,350 

 

(2,779,421)

 

38,028  

 

(1,459,943) 

 

(6,079) 

 

(1,466,022)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

-

 

- 

 

- 

 

(355,968)

 

-  

 

(355,968) 

 

(2,297) 

 

(358,265)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

-

 

- 

 

- 

 

- 

 

22,569  

 

22,569  

 

435  

 

23,004.00 

Balances at

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   June 30, 2023*

 

301,000,100

 

30,100 

 

1,251,350 

 

(3,135,389)

 

60,597  

 

(1,793,342) 

 

(7,941) 

 

(1,801,283)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   January 1, 2022*

 

301,000,100

 

30,100 

 

251,375 

 

(786,951)

 

(17,445) 

 

(522,921) 

 

16,951  

 

(505,970)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital contribution

 

-

 

- 

 

999,975 

 

- 

 

-  

 

999,975  

 

-  

 

999,975 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

-

 

- 

 

- 

 

(1,547,164)

 

-  

 

(1,547,164) 

 

8,379  

 

(1,538,785)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

-

 

- 

 

- 

 

- 

 

4,690  

 

4,690  

 

(129) 

 

4,561 

Balances at

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   March 31, 2022*

 

301,000,100

 

30,100 

 

1,251,350 

 

(2,334,115)

 

(12,755) 

 

(1,065,420) 

 

25,201  

 

(1,040,219)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

-

 

- 

 

- 

 

(156,828)

 

-  

 

(156,828) 

 

(5,746) 

 

(162,574)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

-

 

- 

 

- 

 

- 

 

14,427  

 

14,427  

 

(852) 

 

13,575 

Balances at

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   June 30, 2022*

 

301,000,100

 

30,100 

 

1,251,350 

 

(2,490,943)

 

1,672  

 

(1,207,821) 

 

18,603  

 

(1,189,218)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Retrospectively restated for effect of share issuances on February 13, 2023.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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


6


QMIS TBS CAPITAL GROUP CORP. AND SUBSIDIARIES

 

 

 

 

 

 

 

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

2023

 

 

2022

 

 

 

 

 

 

 

Cash Flows from Operating Activities

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

$

(123,989) 

 

$

(1,701,359) 

Adjustments to reconcile net loss

 

 

 

 

 

  Depreciation

 

2,133  

 

 

2,367  

  Amortization of operating lease right-of-use assets

 

12,065  

 

 

11,656  

  Changes in assets and liabilities

 

 

 

 

 

      Accounts receivable

 

(102,706) 

 

 

138,787  

      Prepaid expenses

 

(338) 

 

 

52,891  

      Contract security deposit

 

(40) 

 

 

1,177  

      Accounts payable

 

5,005  

 

 

2,892  

      Accrued expenses

 

72,827  

 

 

35,204  

      Taxes payable

 

(15,207) 

 

 

109,993  

      Deferred revenue

 

(1,481) 

 

 

6,955  

      Operating lease liabilities

 

(13,944) 

 

 

(11,487) 

Net cash used by operating activities

 

(165,675) 

 

 

(1,350,924) 

 

 

 

 

 

 

 

Cash Flows from Investing Activities

 

 

 

 

 

      Purchase of property and equipment

 

(1,224) 

 

 

(363) 

Net cash provided (used) by investing activities

 

(1,224) 

 

 

(363) 

 

 

 

 

 

 

Cash Flows from Financing Activities

 

 

 

 

 

      Shareholders capital contribution

 

-  

 

 

999,975  

      Proceeds from related parties

 

116,707  

 

 

70,106  

      Repayment to related parties

 

(17,889) 

 

 

(943,054) 

Net cash provided (used) by financing activities

 

98,818  

 

 

127,027  

 

 

 

 

 

 

 

Effect on changes in foreign exchange rate

 

1,249  

 

 

(2,137) 

Increase (decrease) in cash

 

(66,832) 

 

 

(1,226,397) 

Cash at beginning of period

 

187,437  

 

 

1,409,794  

Cash at end of period

$

120,605  

 

$

183,397  

 

 

 

 

 

 

 

Supplemental Disclosures of Cash Flow Information:

 

 

 

 

 

  Cash paid during the year for:

 

 

 

 

 

      Interest

$

-  

 

$

-  

      Income tax

$

34,353  

 

$

-  

 

 

 

 

 

 

 

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

 


7


 

QMIS TBS CAPITAL GROUP CORP. AND SUBSIDIARIES

 

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

 

Note 1 - ORGANIZATION

 

QMIS TBS Capital Group Corp. (the “Company” or "QMIS USA") was incorporated in the state of Delaware on November 21, 2019, under the name TBS Capital Management Group Corp. The name was changed to QMIS TBS Capital Group Corp. on February 10, 2020.

 

On February 13, 2023, the Company entered into a share exchange agreements (the “Share Exchange Agreements”) with the shareholders of all 1,000,100 outstanding shares of common stock of QMIS Securities Capital SDN BHD (“QSC”), which was incorporated by the Companies Commission of Malaysia on January 13, 2015 under the Companies Act 1965 as a private limited company with the name Multi Securities Capital (M) SDN BHD, which was subsequently changed to QMIS Securities Capital (M) SDN BHD on March 19, 2015. The two QSC shareholders were Dr. Chin Yung Kong, the Company’s Chief Executive Officer, and Chin Hua Fung, Dr. Chin’s son.

 

Pursuant to the Share Exchange Agreements, Dr. Chin exchanged 700,070 shares of QSC common stock for 700,070 shares of the Company’s common stock. Dr. Chin exchanged 300,030 shares of QSC common stock for 300,030 shares of the Company’s common stock. Accordingly, the Company became the sole shareholder of QSC after the share exchanges.

 

The share exchanges have been accounted for as a recapitalization between entities under common control since the same controlling shareholders controlled these two entities before and after the transaction. The consolidation of the Company and its subsidiary has been accounted for at historical cost and prepared on the basis as if the transaction had become effective as of the beginning of the earliest period presented in the accompanying consolidated financial statements.

 

On November 16, 2015, QSC acquired 99.9% equity ownership interest of QMIS Capital Venture SDN BHD (“QCV”), which was incorporated by the Companies Commission of Malaysia on January 14, 2015, under the private limited company act with the name Diversified Multi Capital Venture (M) SDN BHD. Subsequently, the name was changed to QMIS Capital Venture SDN BHD on March 19, 2015.

 

On October 15, 2015, QSC acquired 69.99% equity ownership interest of QMIS World Trade International SDN BHD (“QWT”), and subsequently on November 27, 2015, QSC acquired anther 0.01% equity ownership interest in QWT, which was incorporated by the Companies Commission of Malaysia on 15 October 2014 under the private limited company act with the name of Santubong Business Trading SDN BHD. Subsequently, the name was changed to QMIS World Trade International SDN BHD on August 7, 2015.

 

On December 31, 2021, QSC acquired 100% equity ownership interest of QMIS TBS Capital Group Corporation Limited (“QTBS”), which was incorporated in Hong Kong on September 9, 2013, under the Companies Ordinance as a limited liability company under the name QMIS Huayin Finance Credit Limited. Subsequently, the name was changed to QMIS Ample Luck Financial Group Limited on July 19, 2018, and finally QMIS TBS Capital Group Corporation Limited on June 16, 2020.

 

On December 31, 2021, QSC acquired 100% equity ownership interest of QMIS Finance Limited (“QFL”), which was incorporated in Hong Kong on July 20, 2007, under the Companies Ordinance as a limited liability company with the name of Hua Xia Syndicate Financial Credit Limit. Subsequently, the name is changed to QMIS Syndicate Financial Credit Limited on February 21, 2014, and finally to QMIS Finance Limited on March 31, 2016.

 

On May 27, 2020, QFL, QSC, and QWT acquired 60%, 20%, and 20%, respectively, equity ownership interest in QMIS Green Energy Berhad (“QGE”), which was incorporated by the Companies Commission of Malaysia on May 27, 2020, under the private limited company act with the name of QMIS Waste Management Group Berhad. Subsequently, the name was changed to QMIS Green Energy Berhad on September 13, 2022.

 

On May 8, 2020, QFL, QSC, and QWT acquired 60%, 20%, and 20%, respectively, equity ownership interest in QMIS Biotech Group Berhad (“QBT”), which was incorporated by the Companies Commission of Malaysia on 8 May 2020 under the private limited company act with the name of QMIS Biotech Group Berhad. Subsequently, the name was changed to QMIS Biotech Group Berhad on May 29, 2020.

 

On June 22, 2020, QFL incorporated QMIS Investment Bank Limited (“QIB”) by the Labuan Financial Services Authority (LFSA) in Malaysia under the company limited by shares act with the name of QMIS Finance (L) Limited. Subsequently, the name was changed to QMIS Labuan Investment Bank Limited on March 24, 2021, and finally to QMIS Investment Bank Limited on 28 July 2022. QFL owns 100% equity ownership interest in QIB.

 


8


On June 21, 2021, QFL and four other shareholders incorporated QMIS Richwood Blacktech Sdn. Bhd. (“QR”) by the Companies Commission of Malaysia under the private limited company act. QFL owns 51% equity ownership interest in QR.

 

On August 3, 2023, QMIS Investment Bank Limited (“QIB”) and Dr. Chin incorporated a company, QMIS Micropay Berhad, in Kuala Lumpur, Malaysia. QIB and Dr. Chin own 60% and 40% of the ownership equity interests of QMIS Micropay Berhad, respectively. QMIS Micropay Berhad plans to carry on the business of electronic payments and transactions but had not engaged in any business operation as of the date of this Quarterly Report.

 

The Company’s organizational chart after the share exchanges and other transactions discussed above was as follows:

Picture 

 

As of the date of this Report, QMIS USA was a holding company. QSC, QFL, and QTBS work together to provide consultant services. QR is engaged in the business of software development. Beginning from early 2023, QR generates revenue from the usage of an online payment software, QRPay, which is maintained by QR. None of the other subsidiaries were engaged in business operations as of the date of this Report.

 

Except as set forth in the relevant discussion, QMIS USA, QSC, QFL, QTBS, QR, QIB, QGE, QBT, QWT, and QCV are hereafter referred to collectively as the Company.

 

Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation and Principles of Consolidation

 

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated.

 


9


These unaudited interim consolidated financial statements do not include all of the information and disclosure required by the U.S. GAAP for complete financial statements. Interim results are not necessarily indicative of results for a full year. In the opinion of management, all adjustments consisting of normal recurring nature considered necessary for a fair presentation of the financial position and the results of operations and cash flows for the interim periods have been included. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2022.

 

Non-controlling Interest

 

Non-controlling interest in the consolidated balance sheets represents the portion of the equity in the subsidiaries not attributable, directly or indirectly, to the Company. The portion of the income or loss applicable to the non-controlling interest in subsidiaries is also separately reflected in the consolidated statements of operations and comprehensive income (loss).

 

Foreign Currency Translation

 

The accompanying consolidated financial statements are presented in United States Dollar (“US$”), which is the reporting currency of the Company. The functional currency of QSC, QWT, QCV, QGE, QBT, and QR are Malaysian Ringgit (“MYR”). The functional currency of QFL and QTBS are Hong Kong dollar ("HKD"). The functional currency of QMIS USA and QIB is US$.

 

Each subsidiary of the Company maintains its books and records in its respective functional currency.  Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. The resulting exchange differences are recorded in the statements of operations.

 

The reporting currency of QMIS USA is the United States Dollar, and the accompanying consolidated financial statements have been expressed in US$. In accordance with ASC Topic 830-30, “Translation of Financial Statements,” assets and liabilities of the Company whose functional currency is not US$ are translated into US$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from the translation of financial statements are recorded as a separate component of accumulated other comprehensive gain (loss) within the statements of changes in shareholders’ deficit.

 

The exchange rates used for foreign currency translation were as follows:

 

US$1 = HKD

 

Period Covered

 

 

 

 

Balance Sheet Date Rates

 

Average Rates

 

 

 

 

 

 

 

 

 

Six months ended June 30, 2023

 

 

7.8363

 

7.8394

Six months ended June 30, 2022

 

 

7.8472

 

7.8260

 

US$1 = MYR

 

Period Covered

 

 

 

 

Balance Sheet Date Rates

 

Average Rates

 

 

 

 

 

 

 

 

 

Six months ended June 30, 2023

 

 

4.6650

 

4.4559

Six months ended June 30, 2022

 

 

4.4075

 

4.2710

 

Use of Estimates

 

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates and judgments on historical experience and on various other assumptions and information that are believed to be reasonable under the circumstances. Estimates and assumptions of future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as operating environment changes. Significant estimates and assumptions by management include, among others, estimated life and impairment of long-lived assets, allowance for doubtful accounts, contingencies, and income taxes including the valuation allowance for deferred tax assets.

 


10


While the Company believes that the estimates and assumptions used in the preparation of the financial statements are appropriate, actual results could differ from those estimates. Estimates and assumptions are periodically reviewed, and the effects of revisions are reflected in the financial statements in the period they are determined to be necessary.

 

Fair Value of Financial Instruments

 

The Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements,” which defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosures requirements for fair value measures. Current assets and current liabilities qualified as financial instruments and management believes their carrying amounts are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and if applicable, their current interest rate is equivalent to interest rates currently available. The three levels are defined as follow:

 

Level 1:Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. 

 

Level 2:Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. 

 

Level 3:Inputs to the valuation methodology are unobservable and significant to the fair value. 

 

As of the balance sheet date, the estimated fair values of the financial instruments approximated their fair values due to the short-term nature of these instruments. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates the hierarchy disclosures each year.

 

Cash and Cash Equivalents

 

Cash and cash equivalents include cash on hand and cash in time deposits, certificates of deposit and all other highly liquid instruments with original maturities of three months or less.

 

Statements of Cash Flows

 

In accordance with ASC 830-230, “Statement of Cash Flows,” cash flows from the Company’s operations are calculated based upon the functional currency. As a result, amounts related to assets and liabilities reported on the statement of cash flows may not necessarily agree with changes in the corresponding balances on the balance sheet.

 

Accounts Receivable

 

Accounts receivable, net represent the amounts that the Company has an unconditional right to consideration, which are stated at the original amount less an allowance for doubtful receivables. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. The Company usually determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of operations and comprehensive income (loss). Delinquent account balances are written off against the allowance for doubtful accounts after management has determined that the likelihood of collection is remote. In circumstances in which the Company receives payment for accounts receivable that have previously been written off, the Company reverses the allowance and bad debt.

 

Property, plant and equipment

 

Property and equipment primarily consist of cultivation equipment, office equipment, furniture, tools and construction in progress. Cultivation equipment, office equipment, furniture and tools are stated at cost less accumulated depreciation less any provision required for impairment in value. Depreciation is computed using the straight-line method based on the estimated useful lives as follows:

 

Office equipment and furniture

 

 

10 years

Computers and printers

 

 

2.5 years

Leasehold improvements

 

 

5 years (lease term)

 


11


Costs of repairs and maintenance are expensed as incurred and asset improvements are capitalized. The cost and related accumulated depreciation of assets disposed of or retired are removed from the accounts, and any resulting gain or loss is reflected in the consolidated statement of income.

 

Impairment of long-lived assets

 

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. No impairment of long-lived assets was recognized for the six months ended June 30, 2023 and 2022.

 

Operating lease

 

The Company’s leases are classified as operating leases in accordance with ASC Topic 842, “Leases.” Under Topic 842, lessees are required to recognize the following for all leases (with the exception of short-term leases) on the commencement date: (i) lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term.

 

At the commencement date, the Company recognizes the lease liability at the present value of the lease payments not yet paid, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate for the same term as the underlying lease. The right-of-use asset is recognized initially at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All right-of-use assets are reviewed for impairment. No impairment for right-of-use lease assets incurred in the six months ended June 30, 2023 and 2022.

 

Concentration of Credit Risk

 

Financial instruments the Company holds that are subject to concentrations of credit risk are cash and accounts receivable arising from its normal business activities. The Company places its cash and restricted cash in what it believes to be credit-worthy financial institutions. The Company conducts periodic reviews of the financial condition and payment practices of its customers to minimize collection risk on accounts receivable.

 

For the six months ended June 30, 2023 and 2022, customer A accounted for 95.7% and 86.7%, respectively, of the Company’s total revenues.

 

For the six months ended June 30, 2023 and 2022, no vendor accounted for more than 10% of the Company’s total purchases.

 

Revenue Recognition

 

The Company adopted ASC 606, “Revenue from Contracts with Customers,” upon inception. Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation.

 

The Company currently generates its revenue from the following main sources:

 

Revenue from consultant services

 

QSC, QFL, and QTBS work together to provide business consultant services to customers. The revenue is recognized at the point in time when the consultant services promised are performed and accepted by the customers, which is generally when the consultant project is delivered to and accepted by the customer.

 

Revenue from Software Development and maintenance services

 

QR provides customers with software development and maintenance services pursuant to their specific requirements, which primarily compose of custom application development, supporting, and training. The Company generally recognizes revenue at a point in time when control is transferred to the customers and the Company is entitled to the payment, or when the promised services are delivered and accepted by the customers.


12


 

Beginning from early 2023, QR generates revenue from the usage of an online payment software, QRPay, which is maintained by QR. QR recognizes such revenue at a point in time when the related online payment transaction is successfully completed and QR is entitled to the revenue.

 

Payments for services received in advance in accordance with the contract are recognized as deferred revenues when received.

 

Cost of Revenues

 

Cost of revenues primarily consists of salaries and related expenses (e.g., bonuses, employee benefits, statutory pension contribution, and payroll taxes) for personnel directly involved in the delivery of services and products directly to customers.

 

Comprehensive Income (Loss)

 

ASC 220, “Comprehensive Income,” established standards for reporting and display of comprehensive income/loss, its components and accumulated balances. Components of comprehensive income/loss include net income/loss and foreign currency translation adjustments. The component of accumulated other comprehensive income (loss) consisted of foreign currency translation adjustments.

 

Income Taxes

 

The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

 

An uncertain tax position is recognized only if it is “more likely than not” that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred.

 

QSC, QWT, QCV, QGE, QBT, QIB, and QR operate in Malaysia and are subject to the income tax laws of Malaysia. QFL and QTBS operate in Hong Kong and are subject to the income tax law of Hong Kong. As of June 30, 2023, and December 31, 2022, all of the Company’s tax returns remain open for statutory examination by relevant tax authorities.

 

The Company accounts for income taxes in interim periods in accordance with FASB ASC 740-270, “Interim Reporting.” The Company has determined an estimated annual effective tax rate. The rate will be revised, if necessary, as of the end of each successive interim period during the Company's fiscal year to its best current estimate. The estimated annual effective tax rate is applied to the year-to-date ordinary income (or loss) at the end of the interim period.

 

Service taxes

 

Service tax is a consumption tax levied by Malaysian tax authorities and is charged on any taxable service income (including digital services) provided in Malaysia by a registered company in carrying on their business. The rate of service tax is 6% ad valorem for all taxable services. A taxable entity is a company that is registered or liable to be registered for service taxes. A company is liable to be registered if the total value of its taxable services for a 12-month period exceeds or is expected to exceed the prescribed registration threshold of MYR500,000 as consultancy, training or coaching services providers and digital and information technology services providers. QSC, QWT, QCV, QGE, QBT, and QR are all subject to these service taxes. Service taxes were recorded with respect to these Malaysian subsidiaries as a deduction against the Company’s gross revenue.

 

Earnings per share

 

Basic earnings per ordinary share is computed by dividing net earnings attributable to ordinary shareholders by the weighted-average number of ordinary shares outstanding during the period. Diluted earnings per share is computed by dividing net income attributable to ordinary shareholders by the sum of the weighted average number of ordinary share outstanding and of potential ordinary share (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted earnings per share. For the six months ended June 30, 2023 and 2022, the Company had no dilutive stocks.

 


13


Related Parties Transactions

 

The Company identifies related parties, and accounts for, discloses related party transactions in accordance with ASC 850, “Related Party Disclosures,” and other relevant ASC standards.

 

A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered as a related party transaction when there is a transfer of resources or obligations between related parties. Related parties may be individuals or corporate entities.

 

Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts of related party transactions due to their related party nature.

 

Segment Reporting

 

ASC 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s chief operating decision maker organizes segments within the Company for making operating decisions assessing performance and allocating resources. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company.

 

Management determined the Company’s operations constitute two reportable segments in accordance with ASC 280, business consultant services and software development and maintenance services.

 

Recently Issued Accounting Pronouncements

 

In August 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. This ASU (1) simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock; (2) revises the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification; and (3) revises the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. For SEC filers, excluding smaller reporting companies, ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. For all other entities, ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Entities should adopt the guidance as of the beginning of the fiscal year of adoption and cannot adopt the guidance in an interim reporting period. The Company is currently evaluating the impact that ASU 2020-06 may have on its consolidated financial statement presentation and related disclosures.

 

In March 2023, the FASB issued ASU 2023-01, Lease (Topic 842): Common Control Arrangements, which clarifies the accounting for leasehold improvements associated with leases between entities under common control (hereinafter referred to as common control lease). ASU 2023-01 requires entities to amortize leasehold improvements associated with common control lease over the useful life to the common control group (regardless of the lease term) as long as the lessee controls the use of the underlying asset through a lease, and to account for any remaining leasehold improvements as a transfer between entities under common control through an adjustment to equity when the lessee no longer controls the underlying asset. This ASU will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been made available for issuance. An entity may apply ASU 2023-01 either prospectively or retrospectively. The Company is currently evaluating the impact that the adoption of ASU 2023-01 will have on its consolidated financial statement presentation and disclosures.


14


 

Note 3 - GOING CONCERN

 

The financial statements have been prepared “assuming that we will continue as a going concern,” which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.

 

The Company incurred a loss of $123,989 and $1,701,359 for the six months ended June 30, 2023 and 2022, respectively. The Company also had working capital deficit of $1,810,863 and $1,725,668 as of June 30, 2023, and December 31, 2022, respectively. In addition, the Company had accumulated deficit of $3,135,389 and $3,013,236 as of June 30, 2023, and December 31, 2022, respectively. These factors among others raise substantial doubt about the ability to continue as a going concern for a reasonable period of time.

 

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan is to obtain such resources by obtaining capital from directors/shareholders sufficient to meet its minimal operating expenses and seeking third party equity and/or debt financing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. These financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

Note 4 - ACCOUNTS RECEIVABLE

 

Accounts receivable consists of the following:

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

$

          100,039

$

                   -   

Accounts receivable-related parties*

 

 

 

                   -   

 

              2,054

Less: Allowance for doubtful accounts

 

 

 

                   -   

 

                   -   

   Accounts receivable, net

 

 

$

          100,039

$

              2,054

 

Bad debt expense charged to operations was $0 for the six months ended June 30, 2023 and 2022.

 

* Refer to Note 9 (1) - Related party transactions.

 

Note 5 - PROPERTY, PLANT AND EQUIPMENT

 

The following is a summary of property, plant and equipment:

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Office equipment and furniture

 

 

 

              5,902

 

              5,017

Computers and printers

 

 

 

            11,337

 

            12,019

Leasehold improvements

 

 

 

            19,283

 

            20,444

     Total

 

 

 

            36,522

 

            37,480

Less: Accumulated depreciation

 

 

 

          (33,092)

 

          (32,923)

     Total property, plant and equipment, net

 

 

$

              3,430

$

              4,557

 

Depreciation expense charged to operations was $2,133 and $2,367 for the six months ended June 30, 2023 and 2022, respectively.

 

Note 6 - ACCOUNTS PAYABLE

 

Accounts payable consist of the following:

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

$

                   -   

$

            10,840

Accounts payable-related parties*

 

 

 

            36,441

 

            22,726

      Total

 

 

$

            36,441

$

            33,566

* Refer to Note 9 (4) - Related party transaction.


15


 

Note 7 - ACCRUED EXPENSES

 

Accrued expenses consist of the following:

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Accrued pension and employee benefit

 

 

$

            31,919

$

            32,651

Accrued professional fees

 

 

 

          211,592

 

          140,001

Accrued office expenses

 

 

 

              8,174

 

              8,601

      Total

 

 

$

          251,685

$

          181,253

 

Note 8 - TAXES PAYABLE

 

Taxes payable consist of the following:

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Malaysia income taxes payable

 

 

$

            76,552

$

          115,947

Malaysia services taxes payable

 

 

 

          161,004

 

          170,750

Hong Kong income taxes payable

 

 

 

          746,440

 

          730,479

      Total

 

 

$

          983,996

$

       1,017,176

 

Note 9 - RELATED PARTY TRANSACTIONS

 

The Company had transactions with the following related parties:

 

Name of Related Party

 

Nature of Relationship

 

 

 

 

 

 

 

 

Dr. Yung Kong Chin

 

 

CEO and a director of the Company.

 

 

 

Mr. Hua Fung Chin

 

 

A director of the Company and son of Mr. Yung Kong Chin.

 

Mr. Ting Teck Sheng

 

 

A director of the Company.

 

 

 

Ms. Tingting Gu

 

 

A director of the Company.

 

 

 

Mr. Kar Yee Ong

 

 

CFO and a director of the Company.

 

 

 

Richwood Ventures Berhad

 

A Malaysia company of which Mr. Ting Teck Sheng is a director.

Panpay Holdings SDN BHD

 

A Malaysia company of which Mr. Ting Teck Sheng is a director.

Pantop Venture Capital SDN BHD

 

A Malaysia company which owns 40% of QMIS Richwood Blacktech SDN BHD

Pantop Millennium SDN BHD

 

A Malaysia company which owns 3% of QMIS Richwood Blacktech SDN BHD

QMIS Financial Group Limited

 

A Hong Kong company of which Mr. Yung Kong Chin is a director.

QMIS Asset Management Limited

 

A Hong Kong company of which Ms. Tingting Gu is a director.

 

(1)Software development and maintenance services provided to Richwood Ventures Berhad and Panpay Holdings SDN BHD 

 

QMIS Richwood Blacktech SDN BHD ("QR") provides software development and maintenance services to Richwood Ventures Berhad and Panpay Holdings SDN BHD. In the six months ended June 30, 2023, QR generated revenue of $10,323 and $20,647 from Richwood Ventures Berhad and Panpay Holdings SDN BHD, respectively. In the six months ended March 31, 2022, QR generated revenue of $28,799 and $67,198 from Richwood Ventures Berhad and Panpay Holdings SDN BHD, respectively. As of June 30, 2023, accounts receivable from Richwood Ventures Berhad was $0, and deferred revenue from Panpay Holdings SDN BHD amounted to $0. As of December 31, 2022, accounts receivable from Richwood Ventures Berhad was $2,054, and deferred revenue from Panpay Holdings SDN BHD amounted to $1,500.

 

(2)Management fees paid to QMIS Financial Group Limited 

 

QMIS Finance Limited ("QFL") and QMIS TBS Capital Group Corp. ("QTBS") paid management fees as needed to QMIS Financial Group Limited for business advice and general and administrative services, such as office space and bookkeeping. The management fees amounted to $385,166 and $820,686 in the six months ended June 30, 2023 and 2022, respectively. There was no outstanding balance for accounts payable to QMIS Finance Group Limited as of June 30, 2023, and December 31, 2022, respectively.

 


16


 

(3)Advisory fees paid to QMIS Asset Management Limited 

 

QFL and QTBS paid advisory fees to QMIS Asset Management Limited for business advice as needed. The advisory fees amounted to $7,205 and $0 in the six months ended June 31, 2023 and 2022, respectively. There was no outstanding balance for accounts payable to QMIS Asset Management Limited as of June 30, 2023, and December 31, 2022, respectively.

 

(4)Accounts payable to Pantop Millennium SND BHD 

 

Pantop Millennium SND BHD has provided operating support and general and administrative services, such as office space and bookkeeping, to QR since QR’s inception in June 2021. The amount of the services was $20,198 and $14,048 for the six months ended June 31, 2023 and 2022, respectively. The accounts payable to Pantop Millennium SND BHD amounted to $36,441 and $22,726 as of June 30, 2023, and December 31, 2022, respectively.

 

(5)Due to related parties 

 

Because QR did not have a bank account until November 2022, Pantop Venture Capital SDN BHD has traditionally paid QR's expenses for its operation. These advanced payments are unsecured, non-interest bearing and payable on demand. There are no written agreements for these advances.

 

Due to lack of cash resources, Dr. Yung Kong Chin has financed the Company's operations. From time to time, Dr. Chin has lent funds to the Company to support its operations. These loans are unsecured, non-interest bearing and payable on demand. There are no written agreements for these advances.

 

Dr. Yung Kong Chin, Mr. Hua Fung Chin, Mr. Kar Yee Ong, and Ms. Tingting Gu lead the consultant service team which provides consultant services to customers. Their compensation was included in the costs of consultant services, and was accrued if they were not paid as of the balance sheet date.

 

Due to related parties consists of the following:

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Dr. Yung Kong Chin

 

 

$

          680,186

$

          610,557

Pantop Venture Capital SDN BHD

 

 

 

            69,434

 

            64,817

Ms. Tingting Gu

 

 

 

              6,471

 

                   -   

Mr. Kar Yee Ong

 

 

 

              5,104

 

                   -   

      Total

 

 

$

          761,195

$

          675,374

 

(6)Compensation paid to directors 

 

As noted above, Dr. Yung Kong Chin, Mr. Hua Fung Chin, Mr. Kar Yee Ong, and Ms. Tingting Gu lead the consultant service team which provides consultant services to customers. Their compensation was included in the costs of consultant services.

 

Compensation paid to directors consists of the following:

 

 

 

 

 

For the Six Months Ended June 30,

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Dr. Yung Kong Chin

 

$

          253,201

$

          417,314

Mr. Hua Fung Chin

 

 

            35,648

 

            33,327

Ms. Tingting Gu

 

 

              5,102

 

                   -   

Mr. Kar Yee Ong

 

 

              5,102

 

                   -   

Total

 

$

          299,053

$

          450,641

 

Note 10 - LEASES

 

The Company has operating leases for corporate offices, employees’ accommodations, and office equipment. These leases have initial lease terms of 12 months to 5 years. The Company has elected not to recognize lease assets and liabilities for leases with an initial term of 12 months or less.

 


17


The Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The discount rate used to calculate present value is the incremental borrowing rate or, if available, the rate implicit in the lease. The Company determines the incremental borrowing rates for these leases based primarily on lease terms, which were 8% in Malaysia.

 

The components of lease costs, lease term and discount rate with respect of operating leases with an initial term of more than 12 months are as follows:

 

 

 

 

For the Six Months Ended

 

 

 

 

 

 

June 30,

 

June 30,

 

 

 

 

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Operating lease cost

 

 

 

 

$

          12,361

$

          12,497

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

 

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Weighted Average Remaining Lease Term - Operating leases

 

1.25 years

 

0.58 years

 

 

 

 

 

 

 

 

 

Weighted Average Discount Rate - Operating leases

 

8.00%

 

8.00%

 

As of June 30, 2023, future minimum lease payments under the non-cancelable lease agreements are as follows:

 

 

 

 

 

 

 

 

 

June 30,

 

 

 

 

 

 

 

 

2023

 

 

 

 

 

 

 

 

 

2023

 

 

 

 

 

 

$

               887

2024

 

 

 

 

 

 

 

               116

Total lease payments

 

 

 

 

 

 

 

            1,003

Less: imputed interest

 

 

 

 

 

 

 

                (29)

Total lease liabilities

 

 

 

 

 

 

 

               974

Less: current portion

 

 

 

 

 

 

 

               860

Non-current lease liabilities

 

 

 

 

 

$

               114

 

Note 11 - INCOME TAXES

 

United States

 

QMIS USA is a company registered in the State of Delaware incorporated in November 21, 2019, and is subject to federal income tax at 21% statutory tax rate with respect to the profit generated from the United States.

 

Malaysia

 

QMIS Securities Capital (M) SDN BHD (“QSC”); QMIS World Trade International SDN BHD (“QWT”) and QMIS Capital Venture SDN BHD (subsidiaries of QSC); QMIS Green Energy Berhad and QMIS Biotech Group Berhad (jointly owned by QSC, QMIS Finance Limited (“QFL”), and QWT); and QMIS Investment Bank Limited, and QMIS Richwood Blacktech SDN BHD (owned 100% and 51%, respectively, by QFL) were incorporated in Malaysia, and accordingly are governed by the income tax laws of Malaysia. The income tax provision in respect of operations in Malaysia is calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations, and practices. Under the Income Tax Act of Malaysia, enterprises incorporated in Malaysia are usually subject to a unified 24% enterprise income tax rate while prefer, tax holidays, and tax exemptions may be granted on a case-by-case basis. The tax rate for small and medium sized companies (generally companies incorporated in Malaysia with paid-in capital of MYR2,500,000 or less, and gross income of not more than MYR50 million) is 17% for the first MYR600,000 (or approximately $150,000) taxable income, with the remaining balance being taxed at the 24% rate.

 

Hong Kong

 

QMIS Finance Limited and QMIS TBS Capital Group Corp. were incorporated in Hong Kong, and accordingly are subject to income tax at 8.25% on the first HKD 2,000,000 profit and 16.5% on the remaining profits arising in or derived from Hong Kong.

 


18


 

The components of the income tax provision were as follows:

 

 

 

 

For the Six Months ended

 

 

 

 

 

 

June 30,

 

June 30,

 

 

 

 

 

2023

 

2022

Current tax provision:

 

 

 

 

 

 

 

 

United States

 

 

 

 

$

                  -   

$

                  -   

Malaysia

 

 

 

 

 

                  -   

 

                  -   

Hong Kong

 

 

 

 

 

          19,202

 

        109,994

 

 

 

 

 

          19,202

 

        109,994

Deferred tax provision:

 

 

 

 

 

 

 

 

United States

 

 

 

 

 

                  -   

 

                  -   

Malaysia

 

 

 

 

 

                  -   

 

                  -   

Hong Kong

 

 

 

 

 

                  -   

 

                  -   

 

 

 

 

 

                  -   

 

                  -   

 

 

 

 

$

          19,202

$

        109,994

Accounting for Uncertainty in Income Taxes

 

The local tax authority conducts periodic and ad hoc tax filing reviews on business enterprises after those enterprises complete their relevant tax filings. Therefore, the Company’s tax filings are subject to examination. It is therefore uncertain as to whether the local tax authority may take different views about the Company’s tax filings, which may lead to additional tax liabilities.

 

Note 12 - SEGMENT REPORTING

 

Revenue by service categories

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended

 

 

 

 

 

 

June 30,

 

June 30,

 

 

2023

 

2022

Revenue

 

 

 

 

 

 

 

 

 

 

 

Consultant services

$

     1,096,284

$

        630,040

 

Software development and maintenance services

 

          49,055

 

          95,997

 

 

     1,145,339

 

        726,037

Operating costs

 

 

 

 

 

 

 

 

 

Consultant services

 

     1,199,119

 

     2,235,400

 

Software development and maintenance services

 

          51,815

 

          89,495

 

 

     1,250,934

 

     2,324,895

Income (loss) from operations

 

 

 

 

 

 

 

 

 

Consultant services

 

       (102,835)

 

    (1,605,360)

 

Software development and maintenance services

 

           (2,760)

 

            6,502

 

 

       (105,595)

 

    (1,598,858)

Other income (expenses)

 

 

 

 

 

 

 

 

 

Consultant services

 

               808

 

            7,493

 

Software development and maintenance services

 

                  -   

 

                  -   

 

 

               808

 

            7,493

Income (loss) before income tax expense

 

 

 

 

 

 

 

 

Consultant services

 

       (102,027)

 

    (1,597,867)

 

Software development and maintenance services

 

           (2,760)

 

            6,502

 

 

       (104,787)

 

    (1,591,365)

Income tax expense

 

 

 

 

 

 

 

 

 

Consultant services

 

          19,202

 

        109,994

 

Software development and maintenance services

 

                  -   

 

                  -   

 

 

          19,202

 

        109,994

Net income (loss)

 

 

 

 

 

 

 

 

 

Consultant services

 

       (121,229)

 

    (1,707,861)

 

Software development and maintenance services

 

           (2,760)

 

            6,502

 

$

       (123,989)

$

    (1,701,359)

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditure

 

 

 

 

 

 

 

 

 

Consultant services

$

                  -   

$

               363

 

Software development and maintenance services

 

            1,224

 

                  -   

 

$

            1,224

$

               363

 

 

 

 

 

 

 

 

 

 

 

 

 


19


 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

 

 

 

2023

 

2022

Total assets

 

 

 

 

 

 

 

 

 

Consultant services

$

          49,535

$

          27,973

 

Software development and maintenance services

 

          13,703

 

            6,543

 

Other

 

169,770

 

180,839

 

$

        233,008

$

        215,355

 

Note 13 - EQUITY CAPITAL

 

Authorized Capital

 

On the date its of incorporation, QMIS USA was authorized to issue 750,000,000 shares of common stock, par value $0.0001 per share. On October 7, 2020, the Company amended its Certificate of Incorporation to be authorized to issue 760,000,000 shares of stock, consisting of 750,000,000 shares of common stock having a par value of $0.0001 per share, and 10,000,000 shares of preferred stock having a par value of $0.0001 per share.

 

Issuance of Common Stock

 

On February 12, 2020, 300,000,000 shares of common stock were issued at par value $0.0001 per share to three directors as director fees, totaling $30,000.

 

On February 13, 2023, a total of 1,000,100 shares of common stock were issued to Dr. Chin Yung Kong and Mr. Chin Hua Fung for acquisition of QMIS Securities Capital SDN BHD.

 

Capital Stock Issued and Outstanding

 

As of June 30, 2023, and December 31, 2022, 301,000,100 shares of common stock were issued and outstanding, respectively, and no shares of preferred stock were issued and outstanding, respectively. The number of shares reflects the retrospective presentation of the share issuance on February 13, 2023 for acquisition of QMIS Securities Capital SDN BHD, due to the recapitalization between entities under common control.

 

Note 14 - CONVERTIBLE PROMISSORY NOTE

 

On October 30, 2020, the Company entered into an agreement to issue a convertible promissory note (the "Note") in the principal amount of one million five hundred thousand dollars ($1,500,000), to the Chairman of the Board and CEO, Dr. Yung Kong Chin. The Company will pay interest from the date of issuance of the Note on the unpaid principal balance at the annual rate of interest equal to eight percent (8%) per six months, such principal and interest to be payable on demand. The Note is a general unsecured obligation of the Company. At any time, the unpaid principal amount of the Note and any unpaid interest accrued thereon can be converted into the Company's common stock at $1.50 per share. However, the Note has not been issued and no fund has been made to the Company at the date of this report. The Company and Dr. Chin anticipate that the Note will be issued in the fourth quarter of 2023.

 

Note 15 - CONTINGENCIES, RISKS AND UNCERTAINTIES

 

Foreign operation

 

The Company’s operations are carried out in Malaysia and Hong Kong. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments therein. In addition, the Company’s business may be influenced by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, rates and methods of taxation among other factors.

 

Liquidity risk

 

The Company is exposed to liquidity risk which is the risk that the Company is unable to provide sufficient capital resources and liquidity to meet its commitments and business needs. Liquidity risk is controlled by the application of financial position analysis and monitoring procedures. When necessary, the Company will turn to other financial institutions and the shareholders to obtain short-term funding to meet the liquidity shortage.

 


20


 

Other risk

 

The Company’s business, financial condition and results of operations may also be negatively impacted by risks related to natural disasters, extreme weather conditions, health epidemics and other catastrophic incidents, such as the COVID-19 outbreak and spread, which could significantly disrupt the Company’s operations.

 

Note 16 - SUBSEQUENT EVENTS

 

On August 3, 2023, QMIS Investment Bank Limited (“QIB”) and Dr. Chin incorporated a company, QMIS Micropay Berhad, in Kuala Lumpur, Malaysia. QIB and Dr. Chin own 60% and 40% of the ownership equity interests of QMIS Micropay Berhad, respectively. QMIS Micropay Berhad plans to carry on the business of electronic payments and transactions but had not engaged in any business operation as of the date of this Quarterly Report.


21


 

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

 

There are statements in this Report that are not historical facts. These “forward-looking statements” can be identified by use of terminology such as “believe,” “hope,” “may,” “anticipate,” “should,” “intend,” “plan,” “will,” “expect,” “estimate,” “project,” “positioned,” “strategy” and similar expressions. You should be aware that these forward-looking statements are subject to risks and uncertainties that are beyond our control. For a discussion of these risks, you should read this entire Report carefully, especially the risks discussed under “Risk Factors.” Although management believes that the assumptions underlying the forward-looking statements included in this Report are reasonable, they do not guarantee our future performance, and actual results could differ from those contemplated by these forward-looking statements. The assumptions used for purposes of the forward-looking statements specified in the following information represent estimates of future events and are subject to uncertainty as to possible changes in economic, legislative, industry, and other circumstances. As a result, the identification and interpretation of data and other information and their use in developing and selecting assumptions from and among reasonable alternatives require the exercise of judgment. To the extent that the assumed events do not occur, the outcome may vary substantially from anticipated or projected results, and, accordingly, no opinion is expressed on the achievability of those forward-looking statements. In the light of these risks and uncertainties, there can be no assurance that the results and events contemplated by the forward-looking statements contained in this Report will in fact transpire. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. We expressly disclaim any obligation or intention to update or revise any forward-looking statements.

 

Corporate History and Organization

 

QMIS TBS Capital Group Corp. (the “Company” or "QMIS USA") was incorporated in the state of Delaware on November 21, 2019, under the name TBS Capital Management Group Corp. The name was changed to QMIS TBS Capital Group Corp. on February 10, 2020.

 

On February 13, 2023, the Company entered into a share exchange agreements (the “Share Exchange Agreements”) with the shareholders of all 1,000,100 outstanding shares of common stock of QMIS Securities Capital SDN BHD (“QSC”), which was incorporated by the Companies Commission of Malaysia on January 13, 2015 under the Companies Act 1965 as a private limited company with the name Multi Securities Capital (M) SDN BHD, which was subsequently changed to QMIS Securities Capital (M) SDN BHD on March 19, 2015. The two QSC shareholders were Dr. Chin Yung Kong, the Company’s Chief Executive Officer, and Chin Hua Fung, Dr. Chin’s son.

 

Pursuant to the Share Exchange Agreements, Dr. Chin exchanged 700,070 shares of QSC common stock for 700,070 shares of the Company’s common stock. Dr. Chin exchanged 300,030 shares of QSC common stock for 300,030 shares of the Company’s common stock. Accordingly, the Company became the sole shareholder of QSC after the share exchanges.

 

The share exchanges have been accounted for as a recapitalization between entities under common control since the same controlling shareholders controlled these two entities before and after the transaction. The consolidation of the Company and its subsidiary has been accounted for at historical cost and prepared on the basis as if the transaction had become effective as of the beginning of the earliest period presented in the accompanying consolidated financial statements.

 

On November 16, 2015, QSC acquired 99.9% equity ownership interest of QMIS Capital Venture SDN BHD (“QCV”), which was incorporated by the Companies Commission of Malaysia on January 14, 2015, under the private limited company act with the name Diversified Multi Capital Venture (M) SDN BHD. Subsequently, the name was changed to QMIS Capital Venture SDN BHD on March 19, 2015.

 

On October 15, 2015, QSC acquired 69.99% equity ownership interest of QMIS World Trade International SDN BHD (“QWT”), and subsequently on November 27, 2015, QSC acquired anther 0.01% equity ownership interest in QWT, which was incorporated by the Companies Commission of Malaysia on 15 October 2014 under the private limited company act with the name of Santubong Business Trading SDN BHD. Subsequently, the name was changed to QMIS World Trade International SDN BHD on August 7, 2015.

 

On December 31, 2021, QSC acquired 100% equity ownership interest of QMIS TBS Capital Group Corporation Limited (“QTBS”), which was incorporated in Hong Kong on September 9, 2013, under the Companies Ordinance as a limited liability company under the name QMIS Huayin Finance Credit Limited. Subsequently, the name was changed to QMIS Ample Luck Financial Group Limited on July 19, 2018, and finally QMIS TBS Capital Group Corporation Limited on June 16, 2020.

 

On December 31, 2021, QSC acquired 100% equity ownership interest of QMIS Finance Limited (“QFL”), which was incorporated in Hong Kong on July 20, 2007, under the Companies Ordinance as a limited liability company with the name of Hua Xia Syndicate Financial Credit Limit. Subsequently, the name is changed to QMIS Syndicate Financial Credit Limited on February 21, 2014, and finally to QMIS Finance Limited on March 31, 2016.

 

On May 27, 2020, QFL, QSC, and QWT acquired 60%, 20%, and 20%, respectively, equity ownership interest in QMIS Green Energy Berhad (“QGE”), which was incorporated by the Companies Commission of Malaysia on May 27, 2020, under the private limited


22


company act with the name of QMIS Waste Management Group Berhad. Subsequently, the name was changed to QMIS Green Energy Berhad on September 13, 2022.

 

On May 8, 2020, QFL, QSC, and QWT acquired 60%, 20%, and 20%, respectively, equity ownership interest in QMIS Biotech Group Berhad (“QBT”), which was incorporated by the Companies Commission of Malaysia on 8 May 2020 under the private limited company act with the name of QMIS Biotech Group Berhad. Subsequently, the name was changed to QMIS Biotech Group Berhad on May 29, 2020.

 

On June 22, 2020, QFL incorporated QMIS Investment Bank Limited (“QIB”) by the Labuan Financial Services Authority (LFSA) in Malaysia under the company limited by shares act with the name of QMIS Finance (L) Limited. Subsequently, the name was changed to QMIS Labuan Investment Bank Limited on March 24, 2021, and finally to QMIS Investment Bank Limited on 28 July 2022. QFL owns 100% equity ownership interest in QIB.

 

On June 21, 2021, QFL and four other shareholders incorporated QMIS Richwood Blacktech Sdn. Bhd. (“QR”) by the Companies Commission of Malaysia under the private limited company act. QFL owns 51% equity ownership interest in QR.

 

On August 3, 2023, QMIS Investment Bank Limited (“QIB”) and Dr. Chin incorporated a company, QMIS Micropay Berhad, in Kuala Lumpur, Malaysia. QIB and Dr. Chin own 60% and 40% of the ownership equity interests of QMIS Micropay Berhad, respectively. QMIS Micropay Berhad plans to carry on the business of electronic payments and transactions but had not engaged in any business operation as of the date of this Quarterly Report.

 

The Company's organizational chart following the share exchanges and other transactions discussed above is as follows:

 

Picture 

As the result of the Share Exchange Agreements (discussed above), the Company, through its wholly owned subsidiary QSC has diversified its business focus from consultancy services to investment banking and payment gateway platform through its 100% owned in QMIS Finance Limited (HK)'s subsidiaries: (i) QIB; and (ii) QR.  


23


 

As of the date of this Report, QMIS USA was a holding company. QSC, QFL, and QTBS work together to provide consultant services. QR is engaged in the business of software development. Beginning from early 2023, QR generates revenue from the usage of its online payment software which is maintained by QR. None of the other subsidiaries were engaged in business operations as of the date of this Report.

 

Business Overview

 

The current structure and operations of the Company, which is comprised of QMIS TBS Capital Group Corp as the holding company, along with its subsidiaries QSC, QFL, QTBS, QR, QIB, QGE, QBT, QWT, and QCV.

 

QSC, QFL, and QTBS collaborate to provide consultant services, while QR is focused on software development. Starting from early 2023, QR generates revenue from its online payment software. At present, the other companies are not engaged in any business operations.

 

Henceforth, for the purposes of this statement, QMIS TBS Capital Group Corp, QSC, QFL, QTBS, QR, QIB, QGE, QBT, QWT, and QCV will be referred to as the Company.

 

QSC is an investment holding company and involved in providing investment banking and other financial services in Hong Kong and Malaysia through its direct and indirect subsidiaries shown below:

 

-QMIS Securities Capital (M) Sdn. Bhd. (“QSC”), 

-QMIS TBS Capital Group Corp. (HK) (“QTBS”), 

-QMIS Finance Limited (“QFL”), 

-QMIS Investment Bank Limited (“QIB”), 

-QMIS Richwood Blacktech Sdn. Bhd. (“QR”). 

 

QMIS Securities Capital (M) Sdn. Bhd. (“QSC”)

 

QSC is a professional firm geared to support and provide advisory services which includes the incubations of high tech and high growth companies.

 

QSC owns the following companies:

 

·100% stake in QMIS TBS Capital Group Corp (HK) ("QTBS"). 

·100% stake in QMIS Finance Limited ("QFL"). 

·99.9% stake in QMIS Capital Venture Sdn. Bhd ("QCV"). 

·70% stake in QMIS World Trade International Sdn. Bhd. ("QWT"). 

·20% interest in QMIS Biotech Group Berhad ("QBT"). 

·20% interest in QMIS Green Energy Berhad ("QGE"). 

 

QMIS TBS Capital Group Corp. (HK) (“QTBS”)

 

QTBS is a limited liability company incorporated and domiciled in Hong Kong. QMIS TBS Group perpetually generates ideas to grow and add value to its people, clients, shareholders, and the communities it serves. It aims to excel in dimensions such as client service and support with effective risk management and decision making.

 

The principal activity of QTBS is the provision of corporate advisory services which includes incubating FinTech and high growth companies. QTBS focuses on the small to middle market companies in China, Malaysia and South East Asia. It has an extensive international, national, and local network of consultants, business advisors, and directors to assist clients with business incubators: raising capital, private equity, due diligence, business valuation, merger and acquisition, accounting and market research services.

 

QTBS provides a wide range of corporate advisory services to its clients as follow:

 

•Management and Strategy Consulting 

•Corporate Advisory 

•Market Research and Survey 

•Business Incubation 

 


24


 

QMIS Finance Limited (“QFL”)

 

QFL is an Investment Holding Company and has two subsidiaries as of August 31, 2021:

 

-QMIS Investment Bank Limited (“QIB”) (100%); and 

-QMIS Richwood Blacktech Sdn. Bhd. (“QR”) (51%)      

 

QMIS Investment Bank Limited (“QIB”)

 

QIB is set to offer a full range of financial products and services covering investment banking, digital banking, private banking and asset management services licensed by Labuan Financial Services Authority (LOFSA), Malaysia.

 

Furthermore, QIB will also provide conventional investment banking services such as private placement, wealth management, and corporate finance advisory and solutions in working capital management, fund raising, IPO, and merger and acquisition consulting services to its clients.

 

QMIS Richwood Blacktech Sdn. Bhd. (“QR”)

 

QR is a new company established in Malaysia involved in the Electronic Payment and Transaction Enabler services with a centralized platform for various payment transactions and value-added services. QR has entered into a partnership with ManagePay Services Sdn. Bhd. (“MPay”) for the issuance of e-wallet and prepaid card services. MPay will act as the underlying technology provider and licensing for QR's payment solutions, while QR acts as a payment system enabler, providing payment infrastructure and card processing for card payment scheme owners. with QR's mobile e-wallet tied up with an international prepaid card as an addition payment option can be used by consumers at merchants for cashless transactions in various retail sectors. QR's goal is to develop comprehensive payment products and services with international payment capability and security compliance to tap into the FinTech market. We are partnering with experienced players in the payment system industry and plan to develop a Super App to upgrade the payment system infrastructure and solutions.

 

As of the date of this Report, QMIS USA was a holding company. QSC, QFL, and QTBS work together to provide consultant services. QR is engaged in the business of software development. Beginning from early 2023, QR generates revenue from the usage of its online payment software which is maintained by QR. None of the other subsidiaries were engaged in business operations as of the date of this Report.

 

KEY FACTORS AFFECTING OUR RESULTS OF OPERATIONS

 

Our results of operations have been and will continue to be affected by a number of factors, including those set out below:

 

Corporate Consultant Services

 

Corporate consultant professional firms play a critical role in providing strategic, operational and organizational advice to businesses. Their success is influenced by a variety of internal and external factors that can positively or negatively impact their operations.

 

Market and Competitive Environment

 

The market and competitive environment are among the most significant drivers of success for a corporate consultant professional firm. Firms must be aware of the current trends in their respective industries and the competitive landscape to remain relevant and competitive. To address this challenge, QSC must continuously innovate their services and develop new, more effective solutions to meet their clients' evolving needs. Additionally, they must maintain strong relationships with clients and establish a reputation as a trusted advisor in their industry.

 

Talent Management

 

The quality of talent and the ability to attract, retain, and develop top-performing employees is critical to the success of a corporate consultant professional firm. To address this challenge, firms must have a robust human resource management strategy in place that prioritizes talent management, career development, and diversity and inclusion. QSC must also provide competitive compensation and benefits packages and cultivate a positive, supportive work environment to retain top talent and attract new hires.

 

Industry Knowledge

 

Keeping up with the latest industry knowledge is important for staying competitive and meeting the evolving needs of customers and users. Firms must continuously invest in training and professional development programs that support the delivery of effective solutions and services to clients. To address this challenge, QSC must have a clear human resources development strategy in place that aligns with our business goals and supports its operations.


25


 

Additionally, firms must invest in training and development programs for their employees to ensure that they have the skills and knowledge necessary to effectively use technology in their work.

 

Research methodology, Data Analysis and Interpretation

 

The quality of the research methodology used by a market research firm affects its results. Firms that use rigorous and reliable research methods are more likely to deliver accurate and relevant insights to their clients.

 

The ability to analyze and interpret data effectively is a key factor in the success of a market research firm. A firm that can turn raw data into meaningful insights and recommendations is more likely to deliver value to its clients. Market research firms that have a deep understanding of specific industries are more likely to deliver relevant and accurate insights. This requires a combination of knowledge and experience in the industry and an understanding of the current market trends and dynamics.

 

Client relationships

 

A strong client relationship is essential for the success of a consultant firm. Firms that build strong relationships with our clients are more likely to receive repeat business and positive word-of-mouth referrals.

 

Electronic Payment Solution

 

Regulation and compliance:

 

In Malaysia, the regulation and compliance for operating an e-wallet, a payment gateway business activity is governed by the central bank of Malaysia, Bank Negara Malaysia (“BNM”). BNM oversees and regulates the payment system in Malaysia to ensure its safety, efficiency, and stability. To operate an e-wallet payment gateway business, the service provider needs to obtain an e-money issuer (EMI) license from Malaysia Central Bank (“BNM”). In addition, the operator must comply with Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) regulations set by BNM to prevent illegal activities such as money laundering and terrorism financing. The operator will also need to comply with Personal Data Protection Act (PDPA) to ensure the security and privacy of your customers' personal and financial information.

 

As of the date of this Report, QR did not hold an e-money issuer (EMI) license, but instead uses the license held by ManagePay Services Sdn. Bhd. (“MPay”). QR operates as a white-label partner of MPay, utilizing MPay's e-money issuer (EMI) license, which is regulated by the Malaysia Central Bank (“BNM”). This partnership enables QR to provide e-wallet services to its customers under its own brand, while ensuring compliance with applicable regulations through MPay's license.

 

Other General Market Conditions Affecting the Performance of the Company:

 

·Technical expertise  

QR's success in the e-wallet payment solution business is dependent on its technical expertise. QR must have a deep understanding of the technology used in the payment solutions industry, and continually invest in its people and technology to remain at the forefront of the industry.

 

·Compliance with regulations  

The e-wallet payment solution business is subject to strict regulations, and QR must comply with these regulations to operate successfully. QR employed a strong compliance program in place to ensure that its solutions are secure, transparent, and compliant with all relevant regulations.

 

·User adoption   

QR's success in the e-wallet payment solution business is dependent on the adoption of its solutions by users. We are committed to develop payment solutions that are user-friendly, secure, and accessible to a wide range of users.

 

·Market competition  

The e-wallet payment solution market is highly competitive, and QR must be able to compete effectively against other solutions providers. QR must differentiate itself from its competitors through its expertise, quality of service, and pricing strategy.

 

·Data security  

The security of user data is a critical factor in the success of QR's e-wallet payment solution business. We are committed to invest in robust security measures to ensure that user data is protected against cyber threats.

 


26


 

·Market demand   

The demand for the services is constantly evolving, and QR must be able to adapt to changing market conditions. QR must be able to respond to changes in technology and the needs of its clients to remain competitive.

 

·Client satisfaction   

QR's success is dependent on the satisfaction of its clients. QR must deliver high-quality software development solutions that meet the needs of its clients and provide ongoing support to ensure their continued success.

 

·Financial resources   

QR's financial stability is a key factor in its success. QR must have the resources to invest in its people and technology, and maintain a healthy balance sheet to support its growth.

 

·Cost management   

QR's ability to manage costs is also important to its success. QR must balance the cost of delivering high-quality software development services with the need to remain profitable.

 

·Challenges of geographic concentration  

QR may only be able to serve a smaller portion of the overall market. Additionally, geographic concentration can also lead to increased competition in a particular area, which can drive down prices and make it more difficult for us to differentiate our services from those of our competitors.

 

·Marketing and brand awareness  

Marketing and brand awareness can greatly impact the success of an e-wallet service provider. Firms that are able to effectively market their services and build a strong brand are more likely to attract and retain users.

 

QR is committed to continually evaluating these factors and implementing strategies to overcome any risk factors that may affect its success. This may include:

 

·User experience  

A user-friendly interface and seamless transaction process are crucial for attracting and retaining users.

 

·Security   

Ensuring the security of users' funds and personal information is paramount.

 

·Partnership and integration   

Establishing partnerships and integrating with merchants, banks, and other financial institutions is crucial for providing a comprehensive service and increasing adoption.

 

·Marketing and user acquisition   

Effective marketing and user acquisition strategies are important to reach and onboard a large user base.

 

·Regulation compliance  

Ensuring compliance with regulatory requirements and obtaining necessary licenses is critical for operating legally and building trust with users.

 

·Scalability   

The ability to scale the platform and handle increasing transaction volumes is crucial for long-term success.

 

·Regional market expanding  

QR plans to adopt a more diversified approach to its service offerings and consider expanding into new geographic areas. This could include investing in new infrastructure and resources, as well as developing new partnerships and strategic alliances with local businesses and organizations.

 

·Continuous innovation   

Keeping up with the latest technologies and continuously improving the platform is important for staying competitive and meeting the evolving needs of users.


27


 

Investment Banking Services

 

Regulation and compliance

 

Operating a Labuan FSA-licensed investment bank in Malaysia requires strict adherence to the regulations and guidelines set by the Labuan Financial Services Authority (Labuan FSA) and international regulatory bodies. A strong commitment to compliance and a robust risk management framework are essential for the success and sustainability of the business. The regulatory authority responsible for overseeing and regulating the financial services industry in the Labuan International Business and Financial Centre (IBFC). The Labuan IBFC is a special economic zone in Malaysia established to promote and develop the offshore financial services industry.

 

As a licensed investment bank in Labuan, Malaysia, QMIS Investment Bank Limited (”QIB”) must comply with the licensing requirements set by the Labuan FSA. This includes submitting an application for a license, providing evidence of financial stability and operational readiness, and demonstrating a strong commitment to compliance with regulatory requirements and ethical standards. In terms of ongoing compliance, QIB must adhere to the regulations and guidelines set by the Labuan FSA, including those related to financial reporting, risk management, and consumer protection. QIB will also be required to conduct periodic internal audits to ensure compliance with regulations and to identify any potential risks or areas for improvement.

 

Additionally, QIB must comply with international regulations and standards, such as the Basel Accords and the Financial Action Task Force (FATF) recommendations, to prevent money laundering, terrorism financing, and other illegal activities. This includes implementing and maintaining robust Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) policies and procedures, as well as performing customer due diligence and monitoring transactions for suspicious activities.

 

Other General Market Conditions Affecting the Performance of the Company:

 

Labuan FSA licensed investment banks operate in a highly competitive and regulated financial services market. The results of these banks are impacted by a variety of factors, including economic conditions, competition, regulatory environment and technology advancements.

 

Economic conditions

 

The performance of investment banks is closely tied to the state of the economy. A strong economy generally leads to increased demand for investment banking services, while a weak economy can result in decreased demand. The impact of economic conditions is particularly pronounced in the investment banking industry due to its reliance on capital markets, which are subject to fluctuations based on economic performance.

 

Competition

 

The investment banking industry is highly competitive, with many players vying for a share of the market. Competition can impact the results of investment banks in several ways, including pricing pressure, increased marketing and advertising expenses, and the need to invest in technology and other resources to remain competitive. In addition, new entrants into the market can disrupt existing players by offering new products and services.

 

Regulatory environment

 

The investment banking industry is heavily regulated, with regulations affecting virtually every aspect of the business. Changes in regulations, particularly in response to economic or market conditions, can have a significant impact on the results of investment banks. For example, increased regulatory requirements may result in increased compliance costs, while changes to existing regulations may impact QIB's ability to generate revenue from certain products and services.

 

Technology advancements

 

Technology continues to play an increasingly important role in the investment banking industry, with advances in areas such as automation, artificial intelligence and blockchain having the potential to disrupt existing business models and create new opportunities. Investment banks that fail to keep up with technology advancements may find themselves at a disadvantage compared to their competitors, while those that embrace new technologies may reap significant benefits in terms of efficiency and profitability.

 

The success of our business operation is impacted by a variety of factors, including economic conditions, competition, regulatory environment and technology advancements. The management strategies that are able to effectively navigate these factors and adapt to changing conditions are likely to be more successful than those that do not. To remain competitive, business model and decision must be proactive in their approach, continuously monitoring changes in the market and adapting their strategies as needed to stay ahead of the competition.


28


 

INDUSTRY

 

The Market Size of E-payment Industry in Southeast Asia.

 

The e-payment industry in Southeast Asia is growing rapidly, driven by the region's large and growing population, increasing smartphone adoption, and favorable demographic and economic trends. According to a recent report by Google, Temasek, and Bain & Company, the e-payment market in Southeast Asia is expected to reach $300 billion by 2025, representing a significant opportunity for companies operating in this space. Southeast Asia has a young and tech-savvy population, with a large proportion of the population having access to smartphones and internet services. This has led to the growth of online commerce and digital financial services, including e-payments, in the region. According to the same report, e-commerce sales in Southeast Asia are projected to reach $300 billion by 2025, representing a significant portion of the overall e-payment market.

 

The e-payment industry in Southeast Asia is highly competitive, with several major players vying for market share. Some of the key players in the region include Grab, Gojek, Razer, Sea Limited, and Singtel. These companies offer a range of services, including ride-hailing, food delivery, mobile payments, and digital wallets. In terms of growth, the e-payment market in Southeast Asia is expected to grow at a rapid pace over the next few years, driven by increasing adoption of digital financial services, the expansion of e-commerce, and the growth of the region's young and tech-savvy population.

 

Overall, the e-payment industry in Southeast Asia presents a significant opportunity for companies looking to enter this market. With a large and growing population, increasing smartphone adoption, and favorable demographic and economic trends, the region is poised for continued growth in the e-payment space.

 

Impact of the COVID-19 Pandemic on Our Business and Operations

 

The pandemic has resulted in widespread economic disruption and uncertainty, which has caused many organizations to reduce their budgets and spending on consulting services. Additionally, the shift to remote work and the need to rapidly adapt to changing circumstances has created new challenges and opportunities for consulting and investment banking firms.

 

The COVID-19 pandemic has had a negative impact on our consulting business segment, primarily due to our main client base and revenue being generated from Malaysia and Hong Kong. The uncertain economic conditions, travel restrictions, and quarantines have impeded our ability to contact clients and build trust, leading to a decrease in demand for our services. The operations of our clients have also been negatively impacted, further exacerbating the situation. Although the full impact of the pandemic is difficult to predict, the prolonged nature of the pandemic and potential mutations of the virus poses significant uncertainties that may materially and adversely affect our business, results of operations, and financial condition.

 

To mitigate these impacts, we have adapted our operations to a virtual or remote-based model, while also finding ways to help clients address the unique challenges posed by the pandemic. Despite these challenges, the investment banking and consulting industry is likely to remain an important source of support and expertise for organizations as they navigate this crisis and beyond.

 

The lockdowns, quarantines, and travel restrictions have led to a shift towards digital and online transactions, resulting in increased adoption of e-wallet services as people opt for contactless and cashless payment options. This has created new opportunities for e-wallet providers to grow their market share and attract new users. On the retail side, the pandemic has led to store closures and reduced foot traffic, causing many brick-and-mortar retailers to shift their focus towards online sales and e-commerce. This has put pressure on retailers to enhance their digital capabilities and develop new strategies to reach customers through online channels. However, any resurgence of the pandemic could have a negative impact on consumer spending and lead to further reductions in retail sales and e-wallet transaction volume as well.

 

Impact of the Russia-Ukraine war on Our Business and Operations

 

The ongoing Russia-Ukraine war may have some indirect effects on the consultant firm, investment banking, and e-wallet business in Malaysia and the Asia Pacific region. Conflict in the region can lead to geopolitical tensions, economic uncertainty, inflation, rise of interest rate and decreased investor confidence, which could negatively impact the consulting and investment banking industries as clients become more cautious with their spending. In the e-wallet sector, the impact may be limited, as e-wallet services are less dependent on geopolitical stability and more on consumer adoption and usage. However, if the conflict escalates and leads to a broader economic slowdown in the region, it could lead to decreased consumer spending and negatively impact the e-wallet industry. It is important to note that the extent of the impact will depend on the evolution of the conflict and its impact on the global economy.

 

Financial Overview

 

For the three months ended June 30, 2023 and 2022, we generated revenues of $337,794 and $3,706, respectively, and reported net losses of $358,265 and net losses of $162,574, respectively. For the six months ended June 30, 2023 and 2022, we generated revenues of $1,145,339 and $726,037, respectively, and reported net losses of $123,989 and net losses of $1,701,359, respectively, and cash out


29


flow used in operating activities of $165,675 and $1,350,924, respectively. As noted in our unaudited consolidated financial statements, as of June 30, 2023, we had an accumulated deficit of $3,135,389.

 

Results of Operations

 

Comparison of Results of Operations for the Three Months ended June 30, 2023 and 2022

 

The following table summarizes our operating results as reflected in our statements of income during the three months ended June 30, 2023 and 2022, respectively, and provides information regarding the dollar and percentage increase (or decrease) during such periods.

 

 

 

For the Three Months Ended June 30,

 

 

2023

 

 

2022

 

 

Variance

 

 

Amount

 

% of Revenue

 

 

Amount

 

% of Revenue

 

 

Amount

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUE

$

      337,794

 

100%

 

$

          3,706

 

100%

 

$

       334,088

 

9015%

COST OF REVENUES

 

      303,377

 

90%

 

 

        34,118

 

921%

 

 

       269,259

 

789%

GROSS PROFIT

 

        34,417

 

10%

 

 

      (30,412)

 

-821%

 

 

        64,829

 

-213%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Administrative

Expenses

 

         391,367

 

116%

 

 

         133,488

 

3602%

 

 

257,879

 

193%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Operating Expenses

 

      391,367

 

116%

 

 

      133,488

 

3602%

 

 

       257,879

 

193%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) from Operation

 

   (356,950)

 

-106%

 

 

   (163,900)

 

-4423%

 

 

    (193,050)

 

-118%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Other Income (Expense)

 

        (1,238)

 

0%

 

 

             299

 

8%

 

 

         (1,537)

 

-514%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit/(Loss) Before Provision of Income Tax

 

(358,188)

 

-106%

 

 

 163,601)

 

-4414%

 

 

 (194,587)

 

-119%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for Income Tax

 

                77

 

0%

 

 

        (1,027)

 

-28%

 

 

           1,104

 

-107%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

$

   (358,265)

 

-106%

 

$

    (162,574)

 

-4387%

 

$

    (195,691)

 

120%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Income attributable to non- controlling interests

 

            (2,297)

 

-1%

 

 

            (5,746)

 

-155%

 

 

3,449

 

-60%

Net Income (Loss) attributable to QMIS Securities Capital (M) Sdn. Bhd.

 

       (355,968)

 

-107%

 

 

       (156,828)

 

-4542%

 

 

(199,140)

 

127%

 

Revenues

 

Our different revenue sources for the three months ended June 30, 2023 and 2022, were as follows:

 

 

 

For the Three Months Ended June 30,

 

 

2023

 

2022

 

Variance

 

 

Amount

 

%

 

Amount

 

%

 

Amount

 

%

Consultant Services

$

    319,937

 

95%

$

   (1,638)

 

-44%

$

 321,575

 

19632%

Software-development and maintenance-related parties

 

       15,243

 

5%

 

      5,344

 

144%

 

      9,899

 

185%

Software-development and maintenance

 

         2,614

 

1%

 

              -

 

0%

 

      2,614

 

100%

Total Revenue

$

    337,794

 

100%

$

      3,706

 

100%

$

 334,088

 

9015%


30


 

Our total revenues increased by $334,088, or 9,015%, to $337,794 for the three months ended June 30, 2023 from $3,706 for the three months ended June 30, 2022. The increase in our revenues was attributable to the following reasons:

 

(i)In the three months ended June 30, 2023, revenue from consultant services amounted to $319,937, constituting 95% of our total revenue. This stands in contrast to a revenue deficit of ($1,638), which was due to the float of foreign currency exchange rate. The surge of $321,575 or a 19,632% increase in revenue in 2023 was primarily driven by the recovery of our consultancy activities. 

 

(ii)Our revenue from software development and maintenance services provided to related parties increased by $9,899, or 185%, to $15,243 for the three months ended June 30, 2023, from $5,344 in the same period of 2022. This growth can be attributed to heightened maintenance service charges in our software-maintenance collaborations with affiliated entities. 

 

(iii)Furthermore, our revenue from software development and maintenance services provided for online payment transactions amounted to $2,614 for the three months ended June 30, 2023, compared to $0 in the same period of 2022. This growth in revenue exemplifies our successful efforts to expand our service offerings, particularly in the realm of maintenance, driven by the usage of an online payment software. 

Cost of Revenues

 

The following table sets forth the breakdown of our total cost of revenue for the three months ended June 30, 2023, and June 30, 2022:

 

 

 

For the Three Months Ended June 30,

 

 

2023

 

2022

 

Variance

 

 

Amount

 

%

 

Amount

 

%

 

Amount

 

%

Cost of Consultant Services

$

291,636

 

96%

$

32,370

 

95%

$

    259,266

 

801%

Cost of Software development and maintenance

 

 11,741

 

4%

 

1,748

 

5%

 

9,993

 

572%

Total Cost of Revenue

$

303,377

 

100%

$

34,118

 

100%

$

    269,259

 

789%

 

Our total costs of revenues increased by $269,259, or 789%, to $303,377 for the three months ended June 30, 2023 from $34,118 for the three months ended June 30, 2022.

 

The cost associated with consultant services amounted to $291,636, constituting 96% of our total cost of revenue. Comparatively, for the same period in 2022, this cost stood at $32,370, representing 95% of the total cost of sales. The increase of $259,266 or an 801% surge in 2023 was primarily due to increased revenue related to consultant services.

 

Our software development costs reached $11,741, comprising 4% of total costs for June 30, 2023, contrasting $1,748 (5%) for the same 2022 period. The increase of $9,993 denotes escalated software maintenance expenses in 2023.

 

Gross Profit

 

Our gross profit increased by $64,829, or 213% to $34,417 in the three months ended June 30, 2023, from net deficit of $30,412 for the three months ended June 30, 2022, primarily due to the increases of $62,309 in gross profit from consultant services, as a result of recovery of our consultancy activities.

 

General Administrative Expenses

 

Our general and administrative expenses primarily consist of professional fees, management fees to related parties, employee salaries and welfare, rental expenses, license renewal fees, office utility, travel and entertainment expenses.

 

The total operating expenses for the three months ended June 30, 2023, reached $391,367, reflecting a substantial $257,879 or 193% increase from the $133,488 in the three months ended June 30, 2022, primarily attributable to:

 

(i)Professional fees totaled $191,802, contributing 49% to total expenses. This marks an increased by $147,881 or a 337% increase from the $43,921 in 2022, mainly attributable to our effort to become publicly traded on a national exchange; 

(ii)Management fees paid to a replated party experienced an increase of $102,097, or 100%, in the three months ended June 30, 2023, as we needed more assistances to explore the capital market; 

(iii)Our travel expense increased by $59,925, 100%, as our management team travelled to the US in connection with our efforts to become publicly traded on a national exchange; and 

(iv)Offset by a decrease of $50,000, or 100% in our consultant fees related to the establishment of QIB in Labuan, Maylasia in 2022. 


31


As a percentage of revenues, general and administrative expenses were 116% and 3,602% of our revenues for the three months ended June 30, 2023 and 2022, respectively.

 

Other Income (Expenses), Net

 

Our other income (expenses) primarily consists of interest income generated from bank deposits and gains and losses on foreign currency transactions. Net interest income increased by $224 during the three months ended June 30, 2023. No interest income was recorded in the corresponding period of the previous year. Additionally, there were net losses of $1,462 and $1,761 in the three months ended June 30, 2023 and 2022, respectively, in foreign currency transactions due to the fluctuations in foreign currency exchange rates.

 

Income Tax Expense

 

In the three months ended June 30, 2023, our income tax expense amounted to $77 due to the translation caused by the float of foreign currency exchange rate, as compared to the income tax benefit of $1,027 in the three months ended June 30, 2022, cause by the net loss.

 

Net Income (Loss)

 

As a result of the foregoing, we reported a net loss of $358,265 for the three months ended June 30, 2023, representing a substantial increase of $195,691, or 120%, compared to the net loss of $162,574 recorded in the three months ended June 30, 2022.

 

Net Loss Attributable to Non-controlling Interest

 

As referenced in the discussion of our company structure, we have non-controlling interest in our equity, meaning the portion of the equity in the subsidiaries of the Company not attributable, directly or indirectly to the Company. Accordingly, we recorded non-controlling interest income (loss) attributable to the non-controlling interest. In the three months ended June 30, 2023, we recorded net loss attributable to the non-controlling interest of $2,297. This represents a decrease of $3,449 or 60% from the net loss attributable to non-controlling interest of $5,746 recorded in the three months ended June 30, 2022.

 

Net income (loss) attributable to QMIS TBS Capital Group Corp.

 

As a result of the foregoing, we reported a net loss attributable to QMIS TBS Capital Group Corp. of $355,968 for the three months ended June 30, 2023, which represented an increase of $199,140 or 127% compared to the net loss of $156,828 reported in the three months ended June 30, 2022.


32


 

Comparison of Results of Operations for the Six Months ended June 30, 2023 and 2022

 

The following table summarizes our operating results as reflected in our unaudited statements of operations during the six months ended June 30, 2023 and 2022, respectively, and provides information regarding the dollar and percentage increase (or decrease) during such periods.

 

 

 

For the Six Months Ended June 30,

 

 

2023

 

2022

 

Variance

 

 

Amount

% of Revenue

 

Amount

 

% of Revenue

 

Amount

 

%

 

 

 

 

 

 

 

 

 

 

 

 

REVENUE

$

        1,145,339

100%

$

      726,037

 

100%

$

      419,302

 

58%

COST OF REVENUES

 

           443,591

39%

 

  1,148,508

 

158%

 

   (704,917)

 

-61%

GROSS PROFIT

 

           701,748

61%

 

   (422,471)

 

-58%

 

  1,124,219

 

-266%

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

General Administrative Expenses

 

           807,343

70%

 

  1,176,387

 

162%

 

   (369,044)

 

-31%

Total operating expenses

 

           807,343

70%

 

  1,176,387

 

162%

 

   (369,044)

 

-31%

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) from Operation

 

        (105,595)

-9%

 

(1,598,858)

 

-220%

 

  1,493,263

 

-93%

 

 

 

 

 

 

 

 

 

 

 

 

Total Other Income (Expense)

 

                   808

0%

 

          7,493

 

1%

 

        (6,685)

 

-89%

 

 

 

 

 

 

 

 

 

 

 

 

Loss before Provision of Income Tax

 

(104,787)

-9%

 

  (1,591,365)

 

-219%

 

   1,486,578

 

-93%

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income tax

 

             19,202

2%

 

      109,994

 

15%

 

     (90,792)

 

-83%

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

$

        (123,989)

-11%

$

(1,701,359)

 

-234%

$

  1,577,370

 

-93%

 

 

 

 

 

 

 

 

 

 

 

 

Less: Income attributable to non-controlling interests

 

              (1,836)

0%

 

           2,633

 

0%

 

         (4,469)

 

-170%

Net Income (Loss) attributable to

 

 

 

 

 

 

 

 

 

 

 

QMIS Securities Capital (M) Sdn. Bhd.

 

          (122,153)

-11%

 

  (1,703,992)

 

-235%

 

   1,581,839

 

-93%

 

Revenues

 

Our different revenue sources for the six months ended June 30, 2023 and 2022, were as follows:

 

 

 

For the Six Months Ended June 30,

 

 

2023

 

2022

 

Variance

 

 

Amount

 

%

 

Amount

 

%

 

Amount

 

%

Consultant Services

$

 1,096,284

 

96%

$

630,040

 

87%

$

466,244

 

74%

Software-development and maintenance-related parties

 

      30,970

 

3%

 

95,997

 

13%

 

(65,027)

 

-68%

Software-development and maintenance

 

      18,085

 

2%

 

-

 

0%

 

  18,085

 

100%

Total Revenue

$

 1,145,339

 

100%

$

726,037

 

100%

$

419,302

 

58%

 

Our total revenues increased by $419,302, or 58%, to $1,145,339 for the six months ended June 30, 2023, from $726,037 for the six months ended June 30, 2022. The increase in our revenues was attributable to the following reasons:

 

(i)In the six months ended June 30, 2023, revenue from consultant services amounted to $1,096,284, constituting 96% of our total revenue. In comparison, during the same period in 2022, revenue from consultant services was $630,040, representing 87% of the total revenue. The surge of $466,244, a 74% increase in consultant services revenue, was primarily propelled by the recovery of our consultancy activities. 


33


(ii)Our revenue from software development and maintenance services provided to related parties decreased by $65,027, marking a 68% decline to $30,970 for the six months ended June 30, 2023, from the $95,997 recorded in the corresponding period of 2022, primarily due to the decrease in sales of software.  

 

(iii)The revenue generated from software development and maintenance services provided for online payment transactions amounted to $18,085 for the six months ended June 30, 2023, compared to $0 in the same period of 2022. This growth in revenue exemplifies our successful efforts to expand our service offerings, particularly in the realm of maintenance, driven by the usage of an online payment software. 

 

Cost of Revenues

 

The following table sets forth the breakdown of our total cost of revenue for the six months ended June 30, 2023 and 2022:

 

 

 

For the Six Months Ended June 30,

 

 

2023

 

2022

 

Variance

 

 

Amount

 

%

 

Amount

 

%

 

Amount

 

%

Cost of Consultant Services

$

412,453

 

93%

$

1,083,141

 

94%

$

(670,688)

 

-62%

Cost of Software development and maintenance services

 

   31,138

 

7%

 

   65,367

 

6%

 

 (34,229)

 

-52%

Total Cost of Revenue

$

443,591

 

100%

$

1,148,508

 

100%

$

(704,917)

 

-61%

 

Our total cost of revenues decreased by $704,917, or 61%, to $443,591 for the six months ended June 30, 2023, compared to $1,148,508 for the same period in 2022.

 

The cost associated with consultant services amounted to $412,453, accounting for 93% of our total cost of revenue. In contrast, during the same period in 2022, this cost totaled $1,083,141, representing 94% of the total cost of revenue. The reduction of $670,688, accounting for a 62% decrease in 2023, was primarily driven by more streamlined costs related to consultant services.

 

Our software development and maintenance costs recorded $31,138, comprising 7% of the total costs for June 30, 2023, compared to $65,367 (6%) for the same period in 2022. This $34,229 drop highlights a reduction in software development expenses in 2023.

 

Gross Profit

 

Our gross profit for the six months ended June 30, 2023, amounted to $701,748, representing an increase of $1,124,219 from a gross deficit of $422,471 in the corresponding period in 2022. This significant positive variance can be attributed primarily to the increase of $1,136,932 in gross profit from consultant services. Our overall gross profit margin increased to 61.3% for the six months ended June 30, 2023, from -58.2% for the six months ended June 30, 2022

 

General Administrative Expenses

 

Our general and administrative expenses encompass various components such as professional, management fees to related parties, employee salaries and benefits, rental expenses, license renewal fees, office utilities, travel, and entertainment expenses.

 

The total operating expenses for the six months ended June 30, 2023, amounted to $807,343, making a significant reduction of $369,044 or 31% compared to the $1,176,387 in the corresponding period of 2022. This reduction was primarily attributed to the following factors:

 

(i)Management fees paid a related party experienced a significant decrease of $435,520 in the six months ended June 30, 2023, as we needed less business advice and administrative services from the related party in the current period.  

 

(ii)Consultation fees related to QIB’s establishment and development decreased by $137,000, compared to the prior period.  

 

(iii)Management fees paid to a former subsidiary then to-be-acquired reduced by $30,000 as we terminated the acquisition in November 2022. 

 

(iv)Offset by an increase of $153,982 in professional fees related to our effort to become publicly traded on a national exchange. 

 

(v)Our travel expense increased by $59,925, 100%, as our management team travelled to the US in connection with our efforts to become publicly traded on a national exchange.  

As a percentage of revenues, general and administrative expenses were 71% and 162% of our revenues for the six months ended June 30, 2023 and 2022, respectively.


34


Other Income (Expenses), Net

 

Our other income (expenses) primarily consists of interest income generated from bank deposits and gains and losses on foreign currency transactions. Net interest income increased by $233 during the six months ended June 30, 2023. Additionally, there was net income of $573 and $7,491 in the six months ended June 30, 2023 and 2022, respectively, from foreign currency transactions due to the fluctuations in foreign currency exchange rates.

 

Income Tax Expense

 

Our income taxes expense was $19,202 in the six months ended June 30, 2023, as compared to the income taxes expense of $109,994 in the six months ended June 30, 2022, a decrease by $90,792 or 83%, as QSC recorded income tax expenses for prior periods in 2022, pursuant to a notice from local tax authority.

 

Net Income (Loss)

 

As a result of the foregoing, we reported a net loss of $123,989 for the six months ended June 30, 2023, representing a substantial decrease of $1,577,370, or 92%, compared to the net loss of $1,701,359 reported in the six months ended June 30, 2022.

 

Net Loss Attributable to Non-controlling Interest

 

As referenced in the discussion of our company structure, we have non-controlling interest in our equity, meaning the portion of the equity in the subsidiaries of the Company not attributable, directly or indirectly to the Company. Accordingly, we recorded net loss attributable to the non-controlling interest. The net income (loss) attributable to non-controlling interest was $(1,836) and $2,633 in the six months ended June 30, 2023 and 2022, respectively.

 

Net income (loss) attributable to QMIS TBS Capital Group Corp.

 

As a result of the foregoing, we reported a net loss attributable to QMIS TBS Capital Group Corp. of $122,153 for the six months ended June 30, 2023. This demonstrates a substantial decline of $1,581,839, representing a 93% decrease, from the net loss attributable to QMIS TBS Capital Group Corp. of $1,703,992 reported during the corresponding period in 2022.

 

Liquidity and Capital Resources

 

As of June 30, 2023, we had $120,605 in cash as compared to $183,397 as of December 31, 2022. As of June 30, 2023, our working capital was $1,810,863 in deficit as compared to $1,725,668 as of December 31, 2022, respectively. In addition, we also had $100,039 in accounts receivable as of June 30, 2023. Our accounts receivable primarily include balances due from customers for our services provided to and accepted by customers.

 

The following table sets forth summary of our cash flows for the periods indicated:

 

 

 

For the Six Months Ended

 

 

June 30,

 

June 30,

 

 

2023

 

2022

 

 

 

 

 

Net cash used by operating activities

$

(165,675)

$

(1,350,924)

Net cash provided (used) by investing activities

 

(1,224)

 

(363)

Net cash provided (used) by financing activities

 

98,818 

 

127,027 

Effect on changes in foreign exchange rate

 

1,249 

 

(2,137)

NET CHANGE IN CASH

 

(66,832)

 

(1,226,397)

CASH BEGINNING OF YEAR

 

187,437 

 

1,409,794 

CASH END OF YEAR

$

120,605 

$

183,397 

 

Operating Activities

 

Net cash used in operating activities was $165,675 for the six months ended June 30, 2023, primarily consisting of the following:

 

·Net loss of $123,989 for the six months ended June 30, 2023. 

·Accounts receivable increased by $102,706 during the current period, primarily due to the increase in accounts receivable resulted from consultant services, and such accounts receivable was subsequently received. 

·A decrease of $15,207 in taxes payable, as we paid off portion of the taxes accrued. 

·Offset by an increase in accrued expenses of $72,827, mainly due to the increase in professional fees related to becoming publicly traded on a national exchange. 


35


 

Net cash used in operating activities was $1,350,924 for the six months ended June 30, 2022, primarily consisting of the following:

 

·A net loss of $1,701,359 for the six months ended June 30, 2022. 

·Offset by a decrease of $138,787 in accounts receivable, mainly because the Company subsequently received a payment of $240,178 for an account receivable recorded in December 2021. 

·Offset by an increase of $109,993 in taxes payment, as the Company recorded income tax expense for prior periods in 2022. 

Investing Activities

 

Net cash used in investing activities amounted to $1,224 for the six months ended June 30, 2023, as compared to net cash used in investing activities amounted to $363 for the six months ended June 30, 2022, primarily consisting of the purchase of fixed assets.

 

Financing Activities

 

Net cash provided by financing activities amounted to $98,818 for the six months ended June 30, 2023, as compared to $127,027 for the six months ended June 30, 2022. Net cash provided by financing activities in the six months ended June 30, 2023, primarily consisted of advancement from a principal officer to fund the company’s operation, offset by a payback of $17,889 for such advancement. Net cash provided by financing activities in the six months ended June 30, 2022, primarily consisted capital contribution of $999,975, and loans from related parties of $70,106, offset by a payback of $943,054 for such loans.

 

Lease Commitment

 

The Company has operating leases for corporate offices, employees’ accommodation, and office equipment. These leases have initial lease terms of 12 months to 5 years. The Company has elected not to recognize lease assets and liabilities for leases with an initial term of 12 months or less.

 

As of June 30, 2023, future minimum lease payments under the non-cancelable lease agreements are as follows:

 

 

 

 

 

June 30, 2023

 

 

 

 

 

2023

 

 

$

887

2024

 

 

 

116

Total lease payments

 

 

1,003

Less: imputed interest

 

 

(29)

Total lease liabilities

 

 

974

Less: current portion

 

 

860

Non-current lease liabilities

$

114

 

Critical Accounting Policies

 

The Company’s significant accounting policies are presented in the Company’s notes to financial statements which are contained in this filing. The significant accounting policies that are most critical and aid in fully understanding and evaluating the reported financial results include the following:

 

The Company prepares its financial statements in conformity with generally accepted accounting principles in the United States of America. These principals require 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. Management believes that these estimates are reasonable and have been discussed with the Board of Directors; however, actual results could differ from those estimates.

 

Going Concern

 

The financial statements have been prepared “assuming that we will continue as a going concern,” which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.

 

The Company incurred a loss of $123,989 and $1,701,359 for the six months ended June 30, 2023 and 2022, respectively. The Company also had working capital deficit of $1,810,863 and $1,725,668 as of June 30, 2023, and December 31, 2022, respectively. In addition, the Company had accumulated deficit of $3,135,389 and $3,013,236 as of June 30, 2023, and December 31, 2022, respectively. These factors among others raise substantial doubt about the ability to continue as a going concern for a reasonable period of time.


36


In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan is to obtain such resources by obtaining capital from directors/shareholders sufficient to meet its minimal operating expenses and seeking third party equity and/or debt financing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. These financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

Revenue Recognition

 

The Company adopted ASC 606, “Revenue from Contracts with Customers,” upon inception. Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation.

 

The Company currently generates its revenue from the following main sources:

 

Revenue from Consultant Services

 

QSC, QFL, and QTBS work together to provide business consultant services to customers. The revenue is recognized at the point in time when the consultant services promised are performed and accepted by the customers, which is generally when the consultant project is delivered to and accepted by the customer.

 

Revenue from Software Development and maintenance services

 

QR provides customers with software development and maintenance services pursuant to their specific requirements, which primarily compose of custom application development, supporting, and training. The Company generally recognizes revenue at a point in time when control is transferred to the customers and the Company is entitled to the payment, or when the promised services are delivered and accepted by the customers.

 

Beginning from early 2023, QR generates revenue from the usage of an online payment software, QRPay, which is maintained by QR. QR recognizes such revenue at a point in time when the related online payment transaction is successfully completed and QR is entitled to the revenue.

 

Payments for services received in advance in accordance with the contract are recognized as deferred revenues when received.

 

Cost of Revenues

 

Cost of revenues primarily consists of salaries and related expenses (e.g., bonuses, employee benefits, statutory pension contribution, and payroll taxes) for personnel directly involved in the delivery of services and products directly to customers.

 

Comprehensive Income (Loss)

 

ASC 220, “Comprehensive Income,” established standards for reporting and display of comprehensive income/loss, its components and accumulated balances. Components of comprehensive income/loss include net income/loss and foreign currency translation adjustments. The component of accumulated other comprehensive income (loss) consisted of foreign currency translation adjustments.

 

Credit Risk

 

Customer accounts typically are collected within a short to medium period of time, and based on its assessment of current conditions and its experience collecting such receivables, management believes it has no significant risk related to accounts receivable.

 

Research and Development Expenses

 

Research and development expenses consist primarily of fees we are being charged for developing the source code of the software platform enabling us to build new products as well as improve existing products. We expense substantially all of our research and development costs as they are incurred.


37


 

Item 3. Qualitative and Qualitative Disclosures About Market Risk.

 

As a Smaller Reporting Company, the Company is not required to include the disclosure under this Item.

 

Item 4. Controls and Procedures.

 

Evaluation of Disclosure Controls and Procedures

 

As required by Rule 13a-15 under the Securities Exchange Act of 1934, we have carried out an evaluation of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this quarterly report, June 30, 2023. This evaluation was carried out under the supervision and with the participation of our management, including our Chief Executive Officer.

 

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in our company’s reports filed under the Securities Exchange Act of 1934 is accumulated and communicated to management, including our Chief Executive Officer, to allow timely decisions regarding required disclosure.

 

Based upon that evaluation, we have concluded that our disclosure controls and procedures were ineffective as of the end of the period covered by this report due to the following material weaknesses in our internal control over financial reporting, many of which are indicative of many small companies with small staff: (i) inadequate segregation of duties and effective risk assessment; and (ii) inadequate control activities and monitoring processes over financial reporting. Management will continue to work to improve the Company’s disclosure controls and procedures throughout 2023.

 

Changes in Internal Control over Financial Reporting

 

There were no changes in our internal control over financial reporting during the quarter ended June 30, 2023, that have materially affected or are reasonably likely to materially affect, our internal control over financial reporting.


38


 

PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings.

 

From time to time, the Company may become involved in lawsuits and other legal proceedings that arise in the course of business. Litigation is subject to inherent uncertainties, and it is not possible to predict the outcome of litigation with total confidence. The Company is currently not aware of any legal proceedings or potential claims against it whose outcome would be likely, individually or in the aggregate, to have a material adverse effect on the Company’s business, financial condition, operating results, or cash flows.

 

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

 

On February 13, 2023, the two shareholders of all 1,000,100 of the outstanding shares of common stock of QMIS Securities Capital (M) Sdn. Bhd. (“QSC”) entered into share exchange agreements (the “Share Exchange Agreements”) with the QMIS TBS Capital Group (“QMIS TBS”). The two QSC shareholders were Dr. Chin Yung Kong, the Chief Executive Officer of QMIS TBS, and Chin Hua Fung, Dr. Chin’s son.

 

Dr. Chin exchanged 700,070 shares of QSC common stock for 700,070 shares of QMIS TBS common stock.  Mr. Chin exchanged 300,030 shares of QSC common stock for 300,030 shares of QMIS TBS common stock.  Pursuant to the Share Exchange Agreements, QMIS TBS became the sole shareholder of QSC.

 

The 1,000,100 shares of QMIS TBS common stock were issued without registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the “1933 Act”) and rules and regulations promulgated under the 1933 Act.

 

Item 6. Exhibits.

 

EXHIBIT NUMBER

 

DESCRIPTION

3.1

 

Certificate of Incorporation (previously filed)

3.2

 

By-Laws (previously filed)

10.1

 

Broker/Dealer Purchase Agreement dated April 30, 2020 (previously filed)

31.1

 

Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 

31.2

 

Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 

32.1

 

Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 

32.2

 

Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 

 

 

101 INS

 

XBRL Instance Document*

101 SCH

 

XBRL Schema Document*

101 CAL

 

XBRL Calculation Linkbase Document*

101 DEF

 

XBRL Definition Linkbase Document*

101 LAB

 

XBRL Labels Linkbase Document*

101 PRE

  

XBRL Presentation Linkbase Document*

 

*The XBRL related information in Exhibit 101 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section and shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document. 


39


 

SIGNATURES

 

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

 

 

QMIS TBS CAPITAL GROUP CORP.

 

 

 

Dated: August 17, 2023

 

 

 

 

 

 

By:

/s/ Yung Kong Chin

 

 

Yung Kong Chin

 

 

Chief Executive Officer

 

 

(Principal Executive Officer)

Dated: August 17, 2023

 

 

 

By:

/s/ Ong Kar Yee

 

 

Ong Kar Yee

 

 

Chief Financial Officer

 

 

(Principal Financial Officer)


40

EX-31.1 2 qmis_ex31z1.htm CERTIFICATION

EXHIBIT 31.1

CERTIFICATIONS

 

I, Chin Yung Kong, certify that:

 

1.I have reviewed this Quarterly Report on Form 10-Q of QMIS TBS Capital Group Corp.; 

 

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(s) 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 (the registrant's fourth fiscal quarter in the case of the annual report) 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(s) 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. 

 

Dated:  August 15, 2023

 

By: /s/ Chin Yung Kong  

Chin Yung Kong

Chief Executive Officer

(Principal Executive Officer)

 

EX-31.2 3 qmis_ex31z2.htm CERTIFICATION

 

EXHIBIT 31.2

CERTIFICATIONS

 

I, Ong Kar Yee, certify that:

 

1.I have reviewed this Quarterly Report on Form 10-Q of QMIS TBS Capital Group Corp.; 

 

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(s) 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 (the registrant's fourth fiscal quarter in the case of the annual report) 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(s) 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. 

 

Dated:  August 15, 2023

 

By: /s/ Ong Kar Yee  

Ong Kar Yee

Chief Financial Officer

(Principal Financial Officer)

EX-32.1 4 qmis_ex32z1.htm CERTIFICATION

Exhibit 32.1

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report on Form 10-Q of QMIS TBS Capital Group Corp. (the “Company”) for the quarter ending June 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Chin Yung Kong, Chief Executive Officer of the Company, 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 operations of the Company. 

 

 

Dated:  August 15, 2023

By:

/s/ Chin Yung Kong

 

 

Chin Yung Kong

 

 

Chief Executive Officer

 

 

 

This certification accompanies each Report pursuant to § 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of §18 of the Securities Exchange Act of 1934, as amended.

 

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

 

 

EX-32.2 5 qmis_ex32z2.htm CERTIFICATION

Exhibit 32.1

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report on Form 10-Q of QMIS TBS Capital Group Corp. (the “Company”) for the quarter ending June 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Ong Kar Yee, Chief Financial Officer of the Company, 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 operations of the Company. 

 

 

Dated:  August 15, 2023

By:

/s/ Chin Yung Kong

 

 

Chin Yung Kong

 

 

Chief Executive Officer

 

 

 

This certification accompanies each Report pursuant to § 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of §18 of the Securities Exchange Act of 1934, as amended.

 

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

 

EX-101.CAL 6 qmis-20230630_cal.xml XBRL TAXONOMY EXTENSION CALCULATION LINKBASE DOCUMENT EX-101.DEF 7 qmis-20230630_def.xml XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT EX-101.LAB 8 qmis-20230630_lab.xml XBRL TAXONOMY EXTENSION LABELS LINKBASE DOCUMENT Product and Service [Axis] Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent Mr. Huan Fung Chin Represents the Mr. Huan Fung Chin, during the indicated time period. Concentration Risk, Supplier Accounts Receivable Foreign Currency Translation Note 15 - CONTINGENCIES, RISKS AND UNCERTAINTIES Note 6 - ACCOUNTS PAYABLE Income Taxes Paid, Net Net cash provided (used) by financing activities Net cash provided (used) by financing activities Statements of Cash Flows Common Stock Comprehensive income (loss) attributable to QMIS TBS Capital Group Corp. Comprehensive income (loss) attributable to QMIS TBS Capital Group Corp. Less: net income attributable to non-controlling interest Net loss Net loss Net loss Total general and administrative expenses Total general and administrative expenses Non-controlling interest Local Phone Number Entity Address, State or Province Details Imputed Interest Represents the monetary amount of Imputed Interest, as of the indicated date. Accounts Payable {1} Accounts Payable Office Equipment Long-Lived Tangible Asset Malaysian Ringgit to United States Dollar Exchange Average Rates Represents the Malaysian Ringgit to United States Dollar Exchange Average Rates, during the indicated time period. Hong Kong Dollar to United States Dollar Exchange Average Rates Represents the Hong Kong Dollar to United States Dollar Exchange Average Rates, during the indicated time period. Property, Plant and Equipment {1} Property, Plant and Equipment Cash at beginning of period Cash at beginning of period Cash at end of period Deferred revenue Interest income Consultant fees Represents the monetary amount of Consultant fees, during the indicated time period. Common Stock, Shares, Outstanding Preferred Stock, Par or Stated Value Per Share Entity Registrant Name Document Transition Report Director Fees Represents the monetary amount of Director Fees, during the indicated time period. Capital Leases, Future Minimum Payments, Due in Rolling Year Two Concentration Risk Benchmark [Axis] Schedule of Compensation paid to directors Represents the textual narrative disclosure of Schedule of Compensation paid to directors, during the indicated time period. Tables/Schedules Earnings Per Share Retained Earnings Professional fees Depreciation Total of costs of revenue Total of costs of revenue Consultant services Represents the monetary amount of Consultant services, during the indicated time period. Taxes payable (Note 8) Document Fiscal Year Focus Entity Ex Transition Period Entity Current Reporting Status Income Tax Rate on first HKD 2,000,000 Profits Represents the percentage value of Income Tax Rate on first HKD 2,000,000 Profits, during the indicated time period. Malaysia Represents the Malaysia, during the indicated time period. Geographical [Axis] Property, Plant and Equipment, Gross Schedule of Future Minimum Payments for Operating Leases Schedule of Accrued Liabilities Schedule of Exchange Rates Used for Foreign Currency Translation Represents the textual narrative disclosure of Schedule of Exchange Rates Used for Foreign Currency Translation, during the indicated time period. Note 10 - LEASES Note 1 - ORGANIZATION AND BUSINESS BACKGROUND Operating lease liabilities Accounts receivable Accounts receivable Changes in assets and liabilities Adjustments to reconcile net loss Income (Loss) from Operation Income (Loss) from Operation Management fees-related party (Note 9 (2)) Represents the monetary amount of Management fees-related party, during the indicated time period. Common Stock, Par or Stated Value Per Share Total Assets Total Assets Accounts receivable, net (Note 4) Document Fiscal Period Focus Entity Emerging Growth Company Stock Issued During Period, Shares, Acquisitions Operating Costs and Expenses Other Represents the Other, during the indicated time period. Hong Kong Represents the Hong Kong, during the indicated time period. Less: Allowance for doubtful accounts Accounts receivable-related parties* Represents the monetary amount of Accounts receivable-related parties, as of the indicated date. Finite-Lived Intangible Asset, Useful Life Leasehold Improvements Schedule of Accounts Payable Statements of Cash Flows {1} Statements of Cash Flows Represents the textual narrative disclosure of Statements of Cash Flows Policy, during the indicated time period. Notes Accrued expenses Accumulated Other Comprehensive Income (Loss) Represents the Accumulated Other Comprehensive Income (Loss), during the indicated time period. Weighted average shares outstanding Represents the Weighted average shares outstanding (number of shares), during the indicated time period. UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Preferred Stock, Shares Issued Operating lease liabilities - current (Note 10) LIABILITIES AND SHAREHOLDERS' EQUITY ASSETS Entity Common Stock, Shares Outstanding Entity Interactive Data Current Current Federal Tax Expense (Benefit) Accrued pension and employee benefit Accounts Payable, Related Parties Represents the Accounts Payable, Related Parties, during the indicated time period. Less: Accumulated depreciation Less: Accumulated depreciation Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease) Customer A Accounted for Percentage of Revenue Revenue Benchmark Use of Estimates Note 5 - PROPERTY, PLANT AND EQUIPMENT Cash Flows from Investing Activities Net cash used by operating activities Net cash used by operating activities Equity Component UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) Loss before Provision for Income Tax Loss before Provision for Income Tax Accrued expenses (Note 7) Cash and cash equivalents Current Assets CONSOLIDATED BALANCE SHEETS CONSOLIDATED BALANCE SHEETS - Parenthetical Phone Fax Number Description Registrant CIK Product and Service Enterprise Income Tax Rate Represents the percentage value of Enterprise Income Tax Rate, during the indicated time period. Related Party, Type Malaysia income taxes payable Represents the monetary amount of Malaysia income taxes payable, as of the indicated date. Schedule of Taxes Payable Represents the textual narrative disclosure of Schedule of Taxes Payable, during the indicated time period. Concentration of Credit Risk Note 3 - GOING CONCERN Supplemental Disclosures of Cash Flow Information Accounts payable Net Cash Provided by (Used in) Operating Activities {1} Net Cash Provided by (Used in) Operating Activities Preferred Stock, Shares Authorized Common stock, par value $0.0001, 750,000,000 shares authorized; 301,000,100 shares issued and outstanding as of June 30, 2023 and December 31, 2022 * Contract security deposit Entity File Number Capital Leases, Future Minimum Payments Due Operating Lease, Cost Related Party, Type [Axis] Note 8 - TAXES PAYABLE Represents the textual narrative disclosure of Taxes Payable Disclosure, during the indicated time period. Interest Paid, Including Capitalized Interest, Operating and Investing Activities Shareholders capital contribution Amortization of operating lease right-of-use assets Common stock issued for directors' fees, shares Common stock issued for directors' fees Noncontrolling Interest QMIS TBS Capital Group Corp. Shareholders' Equity (Deficit) Represents the QMIS TBS Capital Group Corp. Shareholders' Equity (Deficit), during the indicated time period. Preferred Stock, Shares Outstanding Retained Earnings (Accumulated deficit) Retained Earnings (Accumulated deficit) Amendment Flag Entity Small Business Document Quarterly Report Income Tax Rate on remaining profits Represents the percentage value of Income Tax Rate on remaining profits, during the indicated time period. Capital Leases, Future Minimum Payments, Next Rolling 12 Months Concentration Risk Benchmark Hong Kong Dollar to United States Dollar Exchange Rate Represents the Hong Kong Dollar to United States Dollar Exchange Rate, during the indicated time period. Schedule of Segment Reporting Information, by Segment Recently Issued Accounting Pronouncements Revenue Recognition Operating lease Costs of Revenue Accumulated other comprehensive income Software development Represents the Software development, during the indicated time period. Finance Lease, Weighted Average Discount Rate, Percent Accounts receivable {1} Accounts receivable Working capital deficit Represents the monetary amount of Working capital deficit, as of the indicated date. Comprehensive Income (Loss) Impairment of long-lived assets Policies Note 16 - SUBSEQUENT EVENTS Note 12 - SEGMENT REPORTING Note 11 - INCOME TAXES Note 9 - RELATED PARTY TRANSACTIONS Foreign currency translation adjustment Additional Paid-in Capital Net loss {1} Net loss Represents the monetary amount of Effects of foreign currency conversion, during the indicated time period. Payroll and employee benefit Gross Profit Gross Profit Costs of software development and maintenance services Commitments and Contingencies (Note 15) Operating lease liabilities - noncurrent (Note 10) Due to related parties (Note 9 (5)) Represents the monetary amount of Due to related parties (Note 9 (4)), as of the indicated date. Property, plant and equipment, net (Note 5) Total Current Assets Total Current Assets Entity Incorporation, State or Country Code Document Period End Date Debt Instrument, Annual Principal Payment Accrued office expenses Liability Class [Axis] Malaysian Ringgit to United States Dollar Exchange Rates Represents the Malaysian Ringgit to United States Dollar Exchange Rates, during the indicated time period. Note 4 - ACCOUNTS RECEIVABLE Effect on changes in foreign exchange rate Represents the monetary amount of Effect on changes in foreign exchange rate, during the indicated time period. Net cash provided (used) by investing activities Net cash provided (used) by investing activities Total comprehensive income (loss) Total comprehensive income (loss) Other Income (Expenses) Common Stock, Shares Authorized Entity Address, Address Line Two Deferred Tax Liabilities, Deferred Expense Operating Lease, Weighted Average Remaining Lease Term Malaysia services taxes payable Represents the monetary amount of Malaysia services taxes payable, as of the indicated date. Fair Value by Liability Class Related Parties Transactions Policy Represents the textual narrative disclosure of Related Parties Transactions Policy, during the indicated time period. Property, Plant and Equipment Fair Value of Financial Instruments Note 2 - SIGNIFICANT ACCOUNTING POLICIES Shares, Outstanding, Beginning Balance Shares, Outstanding, Beginning Balance Shares, Outstanding, Ending Balance Total Operating Expenses Total Operating Expenses Software development and maintenance services Represents the monetary amount of Software development and maintenance services, during the indicated time period. Common Stock, Shares, Issued Additional paid-in capital Preferred stock, par value $0.0001, 10,000,000 shares authorized;0 share issued and outstanding as of December 31, 2022 and 2021 Entity Address, Address Description Entity Tax Identification Number Fiscal Year End Dr Yung Kong Chin, CEO Represents the Dr Yung Kong Chin, CEO, during the indicated time period. Hong Kong income taxes payable Represents the monetary amount of Hong Kong income taxes payable, as of the indicated date. Computer Equipment Schedule of Accounts, Notes, Loans and Financing Receivable Repayment to related parties Purchase of property and equipment Purchase of property and equipment Contract security deposit {1} Contract security deposit Prepaid expenses {1} Prepaid expenses Capital contribution Represents the monetary amount of Capital contribution, during the indicated time period. Statement Operating Expenses {1} Operating Expenses Total Shareholders' Equity (Deficit) Total Shareholders' Equity (Deficit) Equity, Attributable to Parent, Beginning Balance Equity, Attributable to Parent, Ending Balance Accounts payable (Note 6) Prepaid expenses Entity Address, City or Town Convertible Principal Percentage Represents the percentage value of Convertible Principal Percentage, as of the indicated date. Operating Lease, Liability Ms. Tingting Gu Represents the Ms. Tingting Gu, during the indicated time period. Schedule of Related Party Transactions Note 13 - EQUITY CAPITAL Increase (decrease) in cash Increase (decrease) in cash Proceeds from related parties Provision for Income Tax Rental expenses Office expenses Represents the monetary amount of Office expenses, during the indicated time period. General and administrative expenses Costs of consultant services Represents the monetary amount of Costs of consultant services, during the indicated time period. Total QMIS TBS Capital Group Corp. shareholders' equity Total QMIS TBS Capital Group Corp. shareholders' equity City Area Code Document Type United States Represents the United States, during the indicated time period. Compensation paid to directors Represents the monetary amount of Compensation paid to directors, during the indicated time period. Mr. Kar Yee Ong Represents the Mr. Kar Yee Ong, during the indicated time period. Accrued professional fees Schedule of Components of Income Tax Expense (Benefit) Lessee, Operating Lease, Disclosure Income Taxes Cash and Cash Equivalents Note 14 - CONVERTIBLE PROMISSORY NOTE Represents the textual narrative disclosure of Note 14 - CONVERTIBLE PROMISSORY NOTE, during the indicated time period. Note 7 - ACCRUED EXPENSES Less: comprehensive income attributable to non-controlling interest Advisory fee-related party (Note 9 (3)) Software development and maintenance services-Related parties (Note 9 (1)) Represents the monetary amount of Software development-related parties, during the indicated time period. Revenue Deferred revenue-related parties (Note 9 (1)) Represents the monetary amount of Deferred revenue-related parties, as of the indicated date. Entity Shell Company Entity Filer Category Capital expenditure Represents the monetary amount of Capital expenditure, during the indicated time period. 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Segment Reporting Service Taxes Policy Represents the textual narrative disclosure of Service Taxes Policy, during the indicated time period. Cash Flows from Financing Activities Statement [Line Items] Basic and Fully Diluted Loss per Share Represents the per-share monetary value of Basic and Fully Diluted Loss per Share, during the indicated time period. Due and subscription Represents the monetary amount of Due and subscription, during the indicated time period. 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Document and Entity Information - shares
6 Months Ended
Jun. 30, 2023
Aug. 17, 2023
Details    
Registrant CIK 0001796160  
Fiscal Year End --12-31  
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2023  
Document Transition Report false  
Entity File Number 333-238872  
Entity Registrant Name QMIS TBS CAPITAL GROUP CORP.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 32-0619708  
Entity Address, Address Line One 100 N. Barranca St.  
Entity Address, Address Line Two #1000  
Entity Address, City or Town West Covina  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 91791  
Entity Address, Address Description (Address of Principal Executive Offices)  
Phone Fax Number Description Registrant’s telephone number, including area code  
City Area Code 917  
Local Phone Number 675-3214  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company true  
Entity Shell Company false  
Entity Ex Transition Period true  
Entity Common Stock, Shares Outstanding   301,000,100
Amendment Flag false  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q2  
XML 13 R2.htm IDEA: XBRL DOCUMENT v3.23.2
CONSOLIDATED BALANCE SHEETS - USD ($)
Jun. 30, 2023
Dec. 31, 2022
Current Assets    
Cash and cash equivalents $ 120,605 $ 187,437
Accounts receivable, net (Note 4) 100,039 2,054
Prepaid expenses 322 0
Contract security deposit 8,062 8,506
Total Current Assets 229,028 197,997
Property, plant and equipment, net (Note 5) 3,430 4,557
Operating lease right of use asset, net (Note 10) 550 12,801
Total Assets 233,008 215,355
Current Liabilities    
Accounts payable (Note 6) 36,441 33,566
Accrued expenses (Note 7) 251,685 181,253
Deferred revenue-related parties (Note 9 (1)) 0 1,500
Taxes payable (Note 8) 983,996 1,017,176
Operating lease liabilities - current (Note 10) 860 14,796
Due to related parties (Note 9 (5)) 761,195 675,374
Total Current Liabilities 2,034,177 1,923,665
Operating lease liabilities - noncurrent (Note 10) 114 357
Total Liabilities 2,034,291 1,924,022
Commitments and Contingencies (Note 15) 0 0
Shareholders' Equity    
Preferred stock, par value $0.0001, 10,000,000 shares authorized;0 share issued and outstanding as of December 31, 2022 and 2021 0 0
Common stock, par value $0.0001, 750,000,000 shares authorized; 301,000,100 shares issued and outstanding as of June 30, 2023 and December 31, 2022 * 30,100 30,100
Additional paid-in capital 1,251,350 1,251,350
Retained Earnings (Accumulated deficit) (3,135,389) (3,013,236)
Accumulated other comprehensive income 60,597 30,104
Total QMIS TBS Capital Group Corp. shareholders' equity (1,793,342) (1,701,682)
Non-controlling interest (7,941) (6,985)
Total Shareholders' Equity (Deficit) (1,801,283) (1,708,667)
Total Liabilities and Shareholders' Equity (Deficit) $ 233,008 $ 215,355
XML 14 R3.htm IDEA: XBRL DOCUMENT v3.23.2
CONSOLIDATED BALANCE SHEETS - Parenthetical - $ / shares
Jun. 30, 2023
Dec. 31, 2022
CONSOLIDATED BALANCE SHEETS    
Preferred Stock, Par or Stated Value Per Share $ 0.0001 $ 0.0001
Preferred Stock, Shares Authorized 10,000,000 10,000,000
Preferred Stock, Shares Issued 0 0
Preferred Stock, Shares Outstanding 0 0
Common Stock, Par or Stated Value Per Share $ 0.0001 $ 0.0001
Common Stock, Shares Authorized 750,000,000 750,000,000
Common Stock, Shares, Issued 301,000,100 301,000,100
Common Stock, Shares, Outstanding 301,000,100 301,000,100
XML 15 R4.htm IDEA: XBRL DOCUMENT v3.23.2
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Revenue        
Consultant services $ 319,937 $ (1,638) $ 1,096,284 $ 630,040
Software development and maintenance services-Related parties (Note 9 (1)) 15,243 5,344 30,970 95,997
Software development and maintenance services 2,614 0 18,085 0
Total revenue 337,794 3,706 1,145,339 726,037
Costs of Revenue        
Costs of consultant services 291,636 32,370 412,453 1,083,141
Costs of software development and maintenance services 11,741 1,748 31,138 65,367
Total of costs of revenue 303,377 34,118 443,591 1,148,508
Gross Profit 34,417 (30,412) 701,748 (422,471)
General and administrative expenses        
Payroll and employee benefit 12,115 7,159 27,473 14,601
Depreciation 997 1,166 2,133 2,367
Office expenses 68,346 13,338 80,816 26,643
Rental expenses 9,230 9,909 19,133 19,770
Due and subscription 5,300 115 39,550 33,435
Professional fees 191,802 43,921 245,867 91,885
Consultant fees 0 50,000 0 137,000
Management fees 0 10,000 0 30,000
Management fees-related party (Note 9 (2)) 99,977 (2,120) 385,166 820,686
Advisory fee-related party (Note 9 (3)) 3,600 0 7,205 0
Total general and administrative expenses 391,367 133,488 807,343 1,176,387
Total Operating Expenses 391,367 133,488 807,343 1,176,387
Income (Loss) from Operation (356,950) (163,900) (105,595) (1,598,858)
Other Income (Expenses)        
Interest income 224 0 235 2
Gain (loss) on foreign currency transaction (1,462) 299 573 7,491
Total Other Income (Expenses) (1,238) 299 808 7,493
Loss before Provision for Income Tax (358,188) (163,601) (104,787) (1,591,365)
Provision for Income Tax 77 (1,027) 19,202 109,994
Net loss (358,265) (162,574) (123,989) (1,701,359)
Less: net income attributable to non-controlling interest (2,297) (5,746) (1,836) 2,633
Net income (loss) attributable to QMIS TBS Capital Group Corp. (355,968) (156,828) (122,153) (1,703,992)
Net loss 23,004 13,575 31,373 18,136
Total comprehensive income (loss) (332,964) (143,253) (90,780) (1,685,856)
Less: comprehensive income attributable to non-controlling interest 435 (852) 880 (981)
Comprehensive income (loss) attributable to QMIS TBS Capital Group Corp. $ (333,399) $ (142,401) $ (91,660) $ (1,684,875)
Basic and Fully Diluted Loss per Share $ (0.00) $ (0.00) $ (0.00) $ (0.01)
Weighted average shares outstanding 301,000,100 301,000,100 301,000,100 301,000,100
XML 16 R5.htm IDEA: XBRL DOCUMENT v3.23.2
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) - USD ($)
Common Stock
Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
QMIS TBS Capital Group Corp. Shareholders' Equity (Deficit)
Noncontrolling Interest
Total
Equity, Attributable to Parent, Beginning Balance at Dec. 31, 2021 $ 30,100 $ 251,375 $ (786,951) $ (17,445) $ (522,921) $ 16,951 $ (505,970)
Shares, Outstanding, Beginning Balance at Dec. 31, 2021 301,000,100            
Capital contribution $ 0 999,975 0 0 999,975 0 999,975
Net loss 0 0 (1,547,164) 0 (1,547,164) 8,379 (1,538,785)
Equity, Attributable to Parent, Ending Balance at Mar. 31, 2022 $ 30,100 1,251,350 (2,334,115) (12,755) (1,065,420) 25,201 (1,040,219)
Shares, Outstanding, Ending Balance at Mar. 31, 2022 301,000,100            
Equity, Attributable to Parent, Beginning Balance at Dec. 31, 2021 $ 30,100 251,375 (786,951) (17,445) (522,921) 16,951 (505,970)
Shares, Outstanding, Beginning Balance at Dec. 31, 2021 301,000,100            
Foreign currency translation adjustment $ 0 0 0 4,690 4,690 (129) 4,561
Net loss             (1,701,359)
Equity, Attributable to Parent, Ending Balance at Jun. 30, 2022 $ 30,100 1,251,350 (2,490,943) 1,672 (1,207,821) 18,603 (1,189,218)
Shares, Outstanding, Ending Balance at Jun. 30, 2022 301,000,100            
Equity, Attributable to Parent, Beginning Balance at Mar. 31, 2022 $ 30,100 1,251,350 (2,334,115) (12,755) (1,065,420) 25,201 (1,040,219)
Shares, Outstanding, Beginning Balance at Mar. 31, 2022 301,000,100            
Foreign currency translation adjustment $ 0 0 0 14,427 14,427 (852) 13,575
Net loss 0 0 (156,828) 0 (156,828) (5,746) (162,574)
Equity, Attributable to Parent, Ending Balance at Jun. 30, 2022 $ 30,100 1,251,350 (2,490,943) 1,672 (1,207,821) 18,603 (1,189,218)
Shares, Outstanding, Ending Balance at Jun. 30, 2022 301,000,100            
Equity, Attributable to Parent, Beginning Balance at Dec. 31, 2022 $ 30,100 1,251,350 (3,013,236) 30,104 (1,701,682) (6,985) (1,708,667)
Shares, Outstanding, Beginning Balance at Dec. 31, 2022 301,000,100            
Foreign currency translation adjustment $ 0 0 0 7,924 7,924 445 8,369
Net loss 0 0 233,815 0 233,815 461 234,276
Equity, Attributable to Parent, Ending Balance at Mar. 31, 2023 $ 30,100 1,251,350 (2,779,421) 38,028 (1,459,943) (6,079) (1,466,022)
Shares, Outstanding, Ending Balance at Mar. 31, 2023 301,000,100            
Equity, Attributable to Parent, Beginning Balance at Dec. 31, 2022 $ 30,100 1,251,350 (3,013,236) 30,104 (1,701,682) (6,985) (1,708,667)
Shares, Outstanding, Beginning Balance at Dec. 31, 2022 301,000,100            
Net loss             (123,989)
Equity, Attributable to Parent, Ending Balance at Jun. 30, 2023 $ 30,100 1,251,350 (3,135,389) 60,597 (1,793,342) (7,941) (1,801,283)
Shares, Outstanding, Ending Balance at Jun. 30, 2023 301,000,100            
Equity, Attributable to Parent, Beginning Balance at Mar. 31, 2023 $ 30,100 1,251,350 (2,779,421) 38,028 (1,459,943) (6,079) (1,466,022)
Shares, Outstanding, Beginning Balance at Mar. 31, 2023 301,000,100            
Foreign currency translation adjustment $ 0 0 0 22,569 22,569 435 23,004.00
Net loss 0 0 (355,968) 0 (355,968) (2,297) (358,265)
Equity, Attributable to Parent, Ending Balance at Jun. 30, 2023 $ 30,100 $ 1,251,350 $ (3,135,389) $ 60,597 $ (1,793,342) $ (7,941) $ (1,801,283)
Shares, Outstanding, Ending Balance at Jun. 30, 2023 301,000,100            
XML 17 R6.htm IDEA: XBRL DOCUMENT v3.23.2
Statements of Cash Flows - USD ($)
6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Net Cash Provided by (Used in) Operating Activities    
Net loss $ (123,989) $ (1,701,359)
Adjustments to reconcile net loss    
Depreciation 2,133 2,367
Amortization of operating lease right-of-use assets 12,065 11,656
Changes in assets and liabilities    
Accounts receivable (102,706) 138,787
Prepaid expenses (338) 52,891
Contract security deposit (40) 1,177
Accounts payable 5,005 2,892
Accrued expenses 72,827 35,204
Taxes payable (15,207) 109,993
Deferred revenue (1,481) 6,955
Operating lease liabilities (13,944) (11,487)
Net cash used by operating activities (165,675) (1,350,924)
Cash Flows from Investing Activities    
Purchase of property and equipment (1,224) (363)
Net cash provided (used) by investing activities (1,224) (363)
Cash Flows from Financing Activities    
Shareholders capital contribution 0 999,975
Proceeds from related parties 116,707 70,106
Repayment to related parties (17,889) (943,054)
Net cash provided (used) by financing activities 98,818 127,027
Effect on changes in foreign exchange rate 1,249 (2,137)
Increase (decrease) in cash (66,832) (1,226,397)
Cash at beginning of period 187,437 1,409,794
Cash at end of period 120,605 183,397
Supplemental Disclosures of Cash Flow Information    
Interest Paid, Including Capitalized Interest, Operating and Investing Activities 0 0
Income Taxes Paid, Net $ 34,353 $ 0
XML 18 R7.htm IDEA: XBRL DOCUMENT v3.23.2
Note 1 - ORGANIZATION AND BUSINESS BACKGROUND
6 Months Ended
Jun. 30, 2023
Notes  
Note 1 - ORGANIZATION AND BUSINESS BACKGROUND

Note 1 - ORGANIZATION

 

QMIS TBS Capital Group Corp. (the “Company” or "QMIS USA") was incorporated in the state of Delaware on November 21, 2019, under the name TBS Capital Management Group Corp. The name was changed to QMIS TBS Capital Group Corp. on February 10, 2020.

 

On February 13, 2023, the Company entered into a share exchange agreements (the “Share Exchange Agreements”) with the shareholders of all 1,000,100 outstanding shares of common stock of QMIS Securities Capital SDN BHD (“QSC”), which was incorporated by the Companies Commission of Malaysia on January 13, 2015 under the Companies Act 1965 as a private limited company with the name Multi Securities Capital (M) SDN BHD, which was subsequently changed to QMIS Securities Capital (M) SDN BHD on March 19, 2015. The two QSC shareholders were Dr. Chin Yung Kong, the Company’s Chief Executive Officer, and Chin Hua Fung, Dr. Chin’s son.

 

Pursuant to the Share Exchange Agreements, Dr. Chin exchanged 700,070 shares of QSC common stock for 700,070 shares of the Company’s common stock. Dr. Chin exchanged 300,030 shares of QSC common stock for 300,030 shares of the Company’s common stock. Accordingly, the Company became the sole shareholder of QSC after the share exchanges.

 

The share exchanges have been accounted for as a recapitalization between entities under common control since the same controlling shareholders controlled these two entities before and after the transaction. The consolidation of the Company and its subsidiary has been accounted for at historical cost and prepared on the basis as if the transaction had become effective as of the beginning of the earliest period presented in the accompanying consolidated financial statements.

 

On November 16, 2015, QSC acquired 99.9% equity ownership interest of QMIS Capital Venture SDN BHD (“QCV”), which was incorporated by the Companies Commission of Malaysia on January 14, 2015, under the private limited company act with the name Diversified Multi Capital Venture (M) SDN BHD. Subsequently, the name was changed to QMIS Capital Venture SDN BHD on March 19, 2015.

 

On October 15, 2015, QSC acquired 69.99% equity ownership interest of QMIS World Trade International SDN BHD (“QWT”), and subsequently on November 27, 2015, QSC acquired anther 0.01% equity ownership interest in QWT, which was incorporated by the Companies Commission of Malaysia on 15 October 2014 under the private limited company act with the name of Santubong Business Trading SDN BHD. Subsequently, the name was changed to QMIS World Trade International SDN BHD on August 7, 2015.

 

On December 31, 2021, QSC acquired 100% equity ownership interest of QMIS TBS Capital Group Corporation Limited (“QTBS”), which was incorporated in Hong Kong on September 9, 2013, under the Companies Ordinance as a limited liability company under the name QMIS Huayin Finance Credit Limited. Subsequently, the name was changed to QMIS Ample Luck Financial Group Limited on July 19, 2018, and finally QMIS TBS Capital Group Corporation Limited on June 16, 2020.

 

On December 31, 2021, QSC acquired 100% equity ownership interest of QMIS Finance Limited (“QFL”), which was incorporated in Hong Kong on July 20, 2007, under the Companies Ordinance as a limited liability company with the name of Hua Xia Syndicate Financial Credit Limit. Subsequently, the name is changed to QMIS Syndicate Financial Credit Limited on February 21, 2014, and finally to QMIS Finance Limited on March 31, 2016.

 

On May 27, 2020, QFL, QSC, and QWT acquired 60%, 20%, and 20%, respectively, equity ownership interest in QMIS Green Energy Berhad (“QGE”), which was incorporated by the Companies Commission of Malaysia on May 27, 2020, under the private limited company act with the name of QMIS Waste Management Group Berhad. Subsequently, the name was changed to QMIS Green Energy Berhad on September 13, 2022.

 

On May 8, 2020, QFL, QSC, and QWT acquired 60%, 20%, and 20%, respectively, equity ownership interest in QMIS Biotech Group Berhad (“QBT”), which was incorporated by the Companies Commission of Malaysia on 8 May 2020 under the private limited company act with the name of QMIS Biotech Group Berhad. Subsequently, the name was changed to QMIS Biotech Group Berhad on May 29, 2020.

 

On June 22, 2020, QFL incorporated QMIS Investment Bank Limited (“QIB”) by the Labuan Financial Services Authority (LFSA) in Malaysia under the company limited by shares act with the name of QMIS Finance (L) Limited. Subsequently, the name was changed to QMIS Labuan Investment Bank Limited on March 24, 2021, and finally to QMIS Investment Bank Limited on 28 July 2022. QFL owns 100% equity ownership interest in QIB.

 

On June 21, 2021, QFL and four other shareholders incorporated QMIS Richwood Blacktech Sdn. Bhd. (“QR”) by the Companies Commission of Malaysia under the private limited company act. QFL owns 51% equity ownership interest in QR.

 

On August 3, 2023, QMIS Investment Bank Limited (“QIB”) and Dr. Chin incorporated a company, QMIS Micropay Berhad, in Kuala Lumpur, Malaysia. QIB and Dr. Chin own 60% and 40% of the ownership equity interests of QMIS Micropay Berhad, respectively. QMIS Micropay Berhad plans to carry on the business of electronic payments and transactions but had not engaged in any business operation as of the date of this Quarterly Report.

 

The Company’s organizational chart after the share exchanges and other transactions discussed above was as follows:

Picture 

 

As of the date of this Report, QMIS USA was a holding company. QSC, QFL, and QTBS work together to provide consultant services. QR is engaged in the business of software development. Beginning from early 2023, QR generates revenue from the usage of an online payment software, QRPay, which is maintained by QR. None of the other subsidiaries were engaged in business operations as of the date of this Report.

 

Except as set forth in the relevant discussion, QMIS USA, QSC, QFL, QTBS, QR, QIB, QGE, QBT, QWT, and QCV are hereafter referred to collectively as the Company.

XML 19 R8.htm IDEA: XBRL DOCUMENT v3.23.2
Note 2 - SIGNIFICANT ACCOUNTING POLICIES
6 Months Ended
Jun. 30, 2023
Notes  
Note 2 - SIGNIFICANT ACCOUNTING POLICIES

Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation and Principles of Consolidation

 

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated.

 

These unaudited interim consolidated financial statements do not include all of the information and disclosure required by the U.S. GAAP for complete financial statements. Interim results are not necessarily indicative of results for a full year. In the opinion of management, all adjustments consisting of normal recurring nature considered necessary for a fair presentation of the financial position and the results of operations and cash flows for the interim periods have been included. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2022.

 

Non-controlling Interest

 

Non-controlling interest in the consolidated balance sheets represents the portion of the equity in the subsidiaries not attributable, directly or indirectly, to the Company. The portion of the income or loss applicable to the non-controlling interest in subsidiaries is also separately reflected in the consolidated statements of operations and comprehensive income (loss).

 

Foreign Currency Translation

 

The accompanying consolidated financial statements are presented in United States Dollar (“US$”), which is the reporting currency of the Company. The functional currency of QSC, QWT, QCV, QGE, QBT, and QR are Malaysian Ringgit (“MYR”). The functional currency of QFL and QTBS are Hong Kong dollar ("HKD"). The functional currency of QMIS USA and QIB is US$.

 

Each subsidiary of the Company maintains its books and records in its respective functional currency.  Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. The resulting exchange differences are recorded in the statements of operations.

 

The reporting currency of QMIS USA is the United States Dollar, and the accompanying consolidated financial statements have been expressed in US$. In accordance with ASC Topic 830-30, “Translation of Financial Statements,” assets and liabilities of the Company whose functional currency is not US$ are translated into US$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from the translation of financial statements are recorded as a separate component of accumulated other comprehensive gain (loss) within the statements of changes in shareholders’ deficit.

 

The exchange rates used for foreign currency translation were as follows:

 

US$1 = HKD

 

Period Covered

 

 

 

 

Balance Sheet Date Rates

 

Average Rates

 

 

 

 

 

 

 

 

 

Six months ended June 30, 2023

 

 

7.8363

 

7.8394

Six months ended June 30, 2022

 

 

7.8472

 

7.8260

 

US$1 = MYR

 

Period Covered

 

 

 

 

Balance Sheet Date Rates

 

Average Rates

 

 

 

 

 

 

 

 

 

Six months ended June 30, 2023

 

 

4.6650

 

4.4559

Six months ended June 30, 2022

 

 

4.4075

 

4.2710

 

Use of Estimates

 

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates and judgments on historical experience and on various other assumptions and information that are believed to be reasonable under the circumstances. Estimates and assumptions of future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as operating environment changes. Significant estimates and assumptions by management include, among others, estimated life and impairment of long-lived assets, allowance for doubtful accounts, contingencies, and income taxes including the valuation allowance for deferred tax assets.

 

While the Company believes that the estimates and assumptions used in the preparation of the financial statements are appropriate, actual results could differ from those estimates. Estimates and assumptions are periodically reviewed, and the effects of revisions are reflected in the financial statements in the period they are determined to be necessary.

 

Fair Value of Financial Instruments

 

The Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements,” which defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosures requirements for fair value measures. Current assets and current liabilities qualified as financial instruments and management believes their carrying amounts are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and if applicable, their current interest rate is equivalent to interest rates currently available. The three levels are defined as follow:

 

Level 1:Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. 

 

Level 2:Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. 

 

Level 3:Inputs to the valuation methodology are unobservable and significant to the fair value. 

 

As of the balance sheet date, the estimated fair values of the financial instruments approximated their fair values due to the short-term nature of these instruments. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates the hierarchy disclosures each year.

 

Cash and Cash Equivalents

 

Cash and cash equivalents include cash on hand and cash in time deposits, certificates of deposit and all other highly liquid instruments with original maturities of three months or less.

 

Statements of Cash Flows

 

In accordance with ASC 830-230, “Statement of Cash Flows,” cash flows from the Company’s operations are calculated based upon the functional currency. As a result, amounts related to assets and liabilities reported on the statement of cash flows may not necessarily agree with changes in the corresponding balances on the balance sheet.

 

Accounts Receivable

 

Accounts receivable, net represent the amounts that the Company has an unconditional right to consideration, which are stated at the original amount less an allowance for doubtful receivables. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. The Company usually determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of operations and comprehensive income (loss). Delinquent account balances are written off against the allowance for doubtful accounts after management has determined that the likelihood of collection is remote. In circumstances in which the Company receives payment for accounts receivable that have previously been written off, the Company reverses the allowance and bad debt.

 

Property, plant and equipment

 

Property and equipment primarily consist of cultivation equipment, office equipment, furniture, tools and construction in progress. Cultivation equipment, office equipment, furniture and tools are stated at cost less accumulated depreciation less any provision required for impairment in value. Depreciation is computed using the straight-line method based on the estimated useful lives as follows:

 

Office equipment and furniture

 

 

10 years

Computers and printers

 

 

2.5 years

Leasehold improvements

 

 

5 years (lease term)

 

Costs of repairs and maintenance are expensed as incurred and asset improvements are capitalized. The cost and related accumulated depreciation of assets disposed of or retired are removed from the accounts, and any resulting gain or loss is reflected in the consolidated statement of income.

 

Impairment of long-lived assets

 

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. No impairment of long-lived assets was recognized for the six months ended June 30, 2023 and 2022.

 

Operating lease

 

The Company’s leases are classified as operating leases in accordance with ASC Topic 842, “Leases.” Under Topic 842, lessees are required to recognize the following for all leases (with the exception of short-term leases) on the commencement date: (i) lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term.

 

At the commencement date, the Company recognizes the lease liability at the present value of the lease payments not yet paid, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate for the same term as the underlying lease. The right-of-use asset is recognized initially at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All right-of-use assets are reviewed for impairment. No impairment for right-of-use lease assets incurred in the six months ended June 30, 2023 and 2022.

 

Concentration of Credit Risk

 

Financial instruments the Company holds that are subject to concentrations of credit risk are cash and accounts receivable arising from its normal business activities. The Company places its cash and restricted cash in what it believes to be credit-worthy financial institutions. The Company conducts periodic reviews of the financial condition and payment practices of its customers to minimize collection risk on accounts receivable.

 

For the six months ended June 30, 2023 and 2022, customer A accounted for 95.7% and 86.7%, respectively, of the Company’s total revenues.

 

For the six months ended June 30, 2023 and 2022, no vendor accounted for more than 10% of the Company’s total purchases.

 

Revenue Recognition

 

The Company adopted ASC 606, “Revenue from Contracts with Customers,” upon inception. Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation.

 

The Company currently generates its revenue from the following main sources:

 

Revenue from consultant services

 

QSC, QFL, and QTBS work together to provide business consultant services to customers. The revenue is recognized at the point in time when the consultant services promised are performed and accepted by the customers, which is generally when the consultant project is delivered to and accepted by the customer.

 

Revenue from Software Development and maintenance services

 

QR provides customers with software development and maintenance services pursuant to their specific requirements, which primarily compose of custom application development, supporting, and training. The Company generally recognizes revenue at a point in time when control is transferred to the customers and the Company is entitled to the payment, or when the promised services are delivered and accepted by the customers.

 

Beginning from early 2023, QR generates revenue from the usage of an online payment software, QRPay, which is maintained by QR. QR recognizes such revenue at a point in time when the related online payment transaction is successfully completed and QR is entitled to the revenue.

 

Payments for services received in advance in accordance with the contract are recognized as deferred revenues when received.

 

Cost of Revenues

 

Cost of revenues primarily consists of salaries and related expenses (e.g., bonuses, employee benefits, statutory pension contribution, and payroll taxes) for personnel directly involved in the delivery of services and products directly to customers.

 

Comprehensive Income (Loss)

 

ASC 220, “Comprehensive Income,” established standards for reporting and display of comprehensive income/loss, its components and accumulated balances. Components of comprehensive income/loss include net income/loss and foreign currency translation adjustments. The component of accumulated other comprehensive income (loss) consisted of foreign currency translation adjustments.

 

Income Taxes

 

The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

 

An uncertain tax position is recognized only if it is “more likely than not” that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred.

 

QSC, QWT, QCV, QGE, QBT, QIB, and QR operate in Malaysia and are subject to the income tax laws of Malaysia. QFL and QTBS operate in Hong Kong and are subject to the income tax law of Hong Kong. As of June 30, 2023, and December 31, 2022, all of the Company’s tax returns remain open for statutory examination by relevant tax authorities.

 

The Company accounts for income taxes in interim periods in accordance with FASB ASC 740-270, “Interim Reporting.” The Company has determined an estimated annual effective tax rate. The rate will be revised, if necessary, as of the end of each successive interim period during the Company's fiscal year to its best current estimate. The estimated annual effective tax rate is applied to the year-to-date ordinary income (or loss) at the end of the interim period.

 

Service taxes

 

Service tax is a consumption tax levied by Malaysian tax authorities and is charged on any taxable service income (including digital services) provided in Malaysia by a registered company in carrying on their business. The rate of service tax is 6% ad valorem for all taxable services. A taxable entity is a company that is registered or liable to be registered for service taxes. A company is liable to be registered if the total value of its taxable services for a 12-month period exceeds or is expected to exceed the prescribed registration threshold of MYR500,000 as consultancy, training or coaching services providers and digital and information technology services providers. QSC, QWT, QCV, QGE, QBT, and QR are all subject to these service taxes. Service taxes were recorded with respect to these Malaysian subsidiaries as a deduction against the Company’s gross revenue.

 

Earnings per share

 

Basic earnings per ordinary share is computed by dividing net earnings attributable to ordinary shareholders by the weighted-average number of ordinary shares outstanding during the period. Diluted earnings per share is computed by dividing net income attributable to ordinary shareholders by the sum of the weighted average number of ordinary share outstanding and of potential ordinary share (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted earnings per share. For the six months ended June 30, 2023 and 2022, the Company had no dilutive stocks.

 

Related Parties Transactions

 

The Company identifies related parties, and accounts for, discloses related party transactions in accordance with ASC 850, “Related Party Disclosures,” and other relevant ASC standards.

 

A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered as a related party transaction when there is a transfer of resources or obligations between related parties. Related parties may be individuals or corporate entities.

 

Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts of related party transactions due to their related party nature.

 

Segment Reporting

 

ASC 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s chief operating decision maker organizes segments within the Company for making operating decisions assessing performance and allocating resources. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company.

 

Management determined the Company’s operations constitute two reportable segments in accordance with ASC 280, business consultant services and software development and maintenance services.

 

Recently Issued Accounting Pronouncements

 

In August 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. This ASU (1) simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock; (2) revises the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification; and (3) revises the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. For SEC filers, excluding smaller reporting companies, ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. For all other entities, ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Entities should adopt the guidance as of the beginning of the fiscal year of adoption and cannot adopt the guidance in an interim reporting period. The Company is currently evaluating the impact that ASU 2020-06 may have on its consolidated financial statement presentation and related disclosures.

 

In March 2023, the FASB issued ASU 2023-01, Lease (Topic 842): Common Control Arrangements, which clarifies the accounting for leasehold improvements associated with leases between entities under common control (hereinafter referred to as common control lease). ASU 2023-01 requires entities to amortize leasehold improvements associated with common control lease over the useful life to the common control group (regardless of the lease term) as long as the lessee controls the use of the underlying asset through a lease, and to account for any remaining leasehold improvements as a transfer between entities under common control through an adjustment to equity when the lessee no longer controls the underlying asset. This ASU will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been made available for issuance. An entity may apply ASU 2023-01 either prospectively or retrospectively. The Company is currently evaluating the impact that the adoption of ASU 2023-01 will have on its consolidated financial statement presentation and disclosures.

XML 20 R9.htm IDEA: XBRL DOCUMENT v3.23.2
Note 3 - GOING CONCERN
6 Months Ended
Jun. 30, 2023
Notes  
Note 3 - GOING CONCERN

Note 3 - GOING CONCERN

 

The financial statements have been prepared “assuming that we will continue as a going concern,” which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.

 

The Company incurred a loss of $123,989 and $1,701,359 for the six months ended June 30, 2023 and 2022, respectively. The Company also had working capital deficit of $1,810,863 and $1,725,668 as of June 30, 2023, and December 31, 2022, respectively. In addition, the Company had accumulated deficit of $3,135,389 and $3,013,236 as of June 30, 2023, and December 31, 2022, respectively. These factors among others raise substantial doubt about the ability to continue as a going concern for a reasonable period of time.

 

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan is to obtain such resources by obtaining capital from directors/shareholders sufficient to meet its minimal operating expenses and seeking third party equity and/or debt financing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. These financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

XML 21 R10.htm IDEA: XBRL DOCUMENT v3.23.2
Note 4 - ACCOUNTS RECEIVABLE
6 Months Ended
Jun. 30, 2023
Notes  
Note 4 - ACCOUNTS RECEIVABLE

Note 4 - ACCOUNTS RECEIVABLE

 

Accounts receivable consists of the following:

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

$

          100,039

$

                   -   

Accounts receivable-related parties*

 

 

 

                   -   

 

              2,054

Less: Allowance for doubtful accounts

 

 

 

                   -   

 

                   -   

   Accounts receivable, net

 

 

$

          100,039

$

              2,054

 

Bad debt expense charged to operations was $0 for the six months ended June 30, 2023 and 2022.

 

* Refer to Note 9 (1) - Related party transactions.

XML 22 R11.htm IDEA: XBRL DOCUMENT v3.23.2
Note 5 - PROPERTY, PLANT AND EQUIPMENT
6 Months Ended
Jun. 30, 2023
Notes  
Note 5 - PROPERTY, PLANT AND EQUIPMENT

Note 5 - PROPERTY, PLANT AND EQUIPMENT

 

The following is a summary of property, plant and equipment:

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Office equipment and furniture

 

 

 

              5,902

 

              5,017

Computers and printers

 

 

 

            11,337

 

            12,019

Leasehold improvements

 

 

 

            19,283

 

            20,444

     Total

 

 

 

            36,522

 

            37,480

Less: Accumulated depreciation

 

 

 

          (33,092)

 

          (32,923)

     Total property, plant and equipment, net

 

 

$

              3,430

$

              4,557

 

Depreciation expense charged to operations was $2,133 and $2,367 for the six months ended June 30, 2023 and 2022, respectively.

XML 23 R12.htm IDEA: XBRL DOCUMENT v3.23.2
Note 6 - ACCOUNTS PAYABLE
6 Months Ended
Jun. 30, 2023
Notes  
Note 6 - ACCOUNTS PAYABLE

Note 6 - ACCOUNTS PAYABLE

 

Accounts payable consist of the following:

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

$

                   -   

$

            10,840

Accounts payable-related parties*

 

 

 

            36,441

 

            22,726

      Total

 

 

$

            36,441

$

            33,566

* Refer to Note 9 (4) - Related party transaction.

XML 24 R13.htm IDEA: XBRL DOCUMENT v3.23.2
Note 7 - ACCRUED EXPENSES
6 Months Ended
Jun. 30, 2023
Notes  
Note 7 - ACCRUED EXPENSES

Note 7 - ACCRUED EXPENSES

 

Accrued expenses consist of the following:

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Accrued pension and employee benefit

 

 

$

            31,919

$

            32,651

Accrued professional fees

 

 

 

          211,592

 

          140,001

Accrued office expenses

 

 

 

              8,174

 

              8,601

      Total

 

 

$

          251,685

$

          181,253

XML 25 R14.htm IDEA: XBRL DOCUMENT v3.23.2
Note 8 - TAXES PAYABLE
6 Months Ended
Jun. 30, 2023
Notes  
Note 8 - TAXES PAYABLE

Note 8 - TAXES PAYABLE

 

Taxes payable consist of the following:

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Malaysia income taxes payable

 

 

$

            76,552

$

          115,947

Malaysia services taxes payable

 

 

 

          161,004

 

          170,750

Hong Kong income taxes payable

 

 

 

          746,440

 

          730,479

      Total

 

 

$

          983,996

$

       1,017,176

XML 26 R15.htm IDEA: XBRL DOCUMENT v3.23.2
Note 9 - RELATED PARTY TRANSACTIONS
6 Months Ended
Jun. 30, 2023
Notes  
Note 9 - RELATED PARTY TRANSACTIONS

Note 9 - RELATED PARTY TRANSACTIONS

 

The Company had transactions with the following related parties:

 

Name of Related Party

 

Nature of Relationship

 

 

 

 

 

 

 

 

Dr. Yung Kong Chin

 

 

CEO and a director of the Company.

 

 

 

Mr. Hua Fung Chin

 

 

A director of the Company and son of Mr. Yung Kong Chin.

 

Mr. Ting Teck Sheng

 

 

A director of the Company.

 

 

 

Ms. Tingting Gu

 

 

A director of the Company.

 

 

 

Mr. Kar Yee Ong

 

 

CFO and a director of the Company.

 

 

 

Richwood Ventures Berhad

 

A Malaysia company of which Mr. Ting Teck Sheng is a director.

Panpay Holdings SDN BHD

 

A Malaysia company of which Mr. Ting Teck Sheng is a director.

Pantop Venture Capital SDN BHD

 

A Malaysia company which owns 40% of QMIS Richwood Blacktech SDN BHD

Pantop Millennium SDN BHD

 

A Malaysia company which owns 3% of QMIS Richwood Blacktech SDN BHD

QMIS Financial Group Limited

 

A Hong Kong company of which Mr. Yung Kong Chin is a director.

QMIS Asset Management Limited

 

A Hong Kong company of which Ms. Tingting Gu is a director.

 

(1)Software development and maintenance services provided to Richwood Ventures Berhad and Panpay Holdings SDN BHD 

 

QMIS Richwood Blacktech SDN BHD ("QR") provides software development and maintenance services to Richwood Ventures Berhad and Panpay Holdings SDN BHD. In the six months ended June 30, 2023, QR generated revenue of $10,323 and $20,647 from Richwood Ventures Berhad and Panpay Holdings SDN BHD, respectively. In the six months ended March 31, 2022, QR generated revenue of $28,799 and $67,198 from Richwood Ventures Berhad and Panpay Holdings SDN BHD, respectively. As of June 30, 2023, accounts receivable from Richwood Ventures Berhad was $0, and deferred revenue from Panpay Holdings SDN BHD amounted to $0. As of December 31, 2022, accounts receivable from Richwood Ventures Berhad was $2,054, and deferred revenue from Panpay Holdings SDN BHD amounted to $1,500.

 

(2)Management fees paid to QMIS Financial Group Limited 

 

QMIS Finance Limited ("QFL") and QMIS TBS Capital Group Corp. ("QTBS") paid management fees as needed to QMIS Financial Group Limited for business advice and general and administrative services, such as office space and bookkeeping. The management fees amounted to $385,166 and $820,686 in the six months ended June 30, 2023 and 2022, respectively. There was no outstanding balance for accounts payable to QMIS Finance Group Limited as of June 30, 2023, and December 31, 2022, respectively.

 

 

(3)Advisory fees paid to QMIS Asset Management Limited 

 

QFL and QTBS paid advisory fees to QMIS Asset Management Limited for business advice as needed. The advisory fees amounted to $7,205 and $0 in the six months ended June 31, 2023 and 2022, respectively. There was no outstanding balance for accounts payable to QMIS Asset Management Limited as of June 30, 2023, and December 31, 2022, respectively.

 

(4)Accounts payable to Pantop Millennium SND BHD 

 

Pantop Millennium SND BHD has provided operating support and general and administrative services, such as office space and bookkeeping, to QR since QR’s inception in June 2021. The amount of the services was $20,198 and $14,048 for the six months ended June 31, 2023 and 2022, respectively. The accounts payable to Pantop Millennium SND BHD amounted to $36,441 and $22,726 as of June 30, 2023, and December 31, 2022, respectively.

 

(5)Due to related parties 

 

Because QR did not have a bank account until November 2022, Pantop Venture Capital SDN BHD has traditionally paid QR's expenses for its operation. These advanced payments are unsecured, non-interest bearing and payable on demand. There are no written agreements for these advances.

 

Due to lack of cash resources, Dr. Yung Kong Chin has financed the Company's operations. From time to time, Dr. Chin has lent funds to the Company to support its operations. These loans are unsecured, non-interest bearing and payable on demand. There are no written agreements for these advances.

 

Dr. Yung Kong Chin, Mr. Hua Fung Chin, Mr. Kar Yee Ong, and Ms. Tingting Gu lead the consultant service team which provides consultant services to customers. Their compensation was included in the costs of consultant services, and was accrued if they were not paid as of the balance sheet date.

 

Due to related parties consists of the following:

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Dr. Yung Kong Chin

 

 

$

          680,186

$

          610,557

Pantop Venture Capital SDN BHD

 

 

 

            69,434

 

            64,817

Ms. Tingting Gu

 

 

 

              6,471

 

                   -   

Mr. Kar Yee Ong

 

 

 

              5,104

 

                   -   

      Total

 

 

$

          761,195

$

          675,374

 

(6)Compensation paid to directors 

 

As noted above, Dr. Yung Kong Chin, Mr. Hua Fung Chin, Mr. Kar Yee Ong, and Ms. Tingting Gu lead the consultant service team which provides consultant services to customers. Their compensation was included in the costs of consultant services.

 

Compensation paid to directors consists of the following:

 

 

 

 

 

For the Six Months Ended June 30,

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Dr. Yung Kong Chin

 

$

          253,201

$

          417,314

Mr. Hua Fung Chin

 

 

            35,648

 

            33,327

Ms. Tingting Gu

 

 

              5,102

 

                   -   

Mr. Kar Yee Ong

 

 

              5,102

 

                   -   

Total

 

$

          299,053

$

          450,641

XML 27 R16.htm IDEA: XBRL DOCUMENT v3.23.2
Note 10 - LEASES
6 Months Ended
Jun. 30, 2023
Notes  
Note 10 - LEASES

Note 10 - LEASES

 

The Company has operating leases for corporate offices, employees’ accommodations, and office equipment. These leases have initial lease terms of 12 months to 5 years. The Company has elected not to recognize lease assets and liabilities for leases with an initial term of 12 months or less.

 

The Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The discount rate used to calculate present value is the incremental borrowing rate or, if available, the rate implicit in the lease. The Company determines the incremental borrowing rates for these leases based primarily on lease terms, which were 8% in Malaysia.

 

The components of lease costs, lease term and discount rate with respect of operating leases with an initial term of more than 12 months are as follows:

 

 

 

 

For the Six Months Ended

 

 

 

 

 

 

June 30,

 

June 30,

 

 

 

 

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Operating lease cost

 

 

 

 

$

          12,361

$

          12,497

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

 

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Weighted Average Remaining Lease Term - Operating leases

 

1.25 years

 

0.58 years

 

 

 

 

 

 

 

 

 

Weighted Average Discount Rate - Operating leases

 

8.00%

 

8.00%

 

As of June 30, 2023, future minimum lease payments under the non-cancelable lease agreements are as follows:

 

 

 

 

 

 

 

 

 

June 30,

 

 

 

 

 

 

 

 

2023

 

 

 

 

 

 

 

 

 

2023

 

 

 

 

 

 

$

               887

2024

 

 

 

 

 

 

 

               116

Total lease payments

 

 

 

 

 

 

 

            1,003

Less: imputed interest

 

 

 

 

 

 

 

                (29)

Total lease liabilities

 

 

 

 

 

 

 

               974

Less: current portion

 

 

 

 

 

 

 

               860

Non-current lease liabilities

 

 

 

 

 

$

               114

XML 28 R17.htm IDEA: XBRL DOCUMENT v3.23.2
Note 11 - INCOME TAXES
6 Months Ended
Jun. 30, 2023
Notes  
Note 11 - INCOME TAXES

Note 11 - INCOME TAXES

 

United States

 

QMIS USA is a company registered in the State of Delaware incorporated in November 21, 2019, and is subject to federal income tax at 21% statutory tax rate with respect to the profit generated from the United States.

 

Malaysia

 

QMIS Securities Capital (M) SDN BHD (“QSC”); QMIS World Trade International SDN BHD (“QWT”) and QMIS Capital Venture SDN BHD (subsidiaries of QSC); QMIS Green Energy Berhad and QMIS Biotech Group Berhad (jointly owned by QSC, QMIS Finance Limited (“QFL”), and QWT); and QMIS Investment Bank Limited, and QMIS Richwood Blacktech SDN BHD (owned 100% and 51%, respectively, by QFL) were incorporated in Malaysia, and accordingly are governed by the income tax laws of Malaysia. The income tax provision in respect of operations in Malaysia is calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations, and practices. Under the Income Tax Act of Malaysia, enterprises incorporated in Malaysia are usually subject to a unified 24% enterprise income tax rate while prefer, tax holidays, and tax exemptions may be granted on a case-by-case basis. The tax rate for small and medium sized companies (generally companies incorporated in Malaysia with paid-in capital of MYR2,500,000 or less, and gross income of not more than MYR50 million) is 17% for the first MYR600,000 (or approximately $150,000) taxable income, with the remaining balance being taxed at the 24% rate.

 

Hong Kong

 

QMIS Finance Limited and QMIS TBS Capital Group Corp. were incorporated in Hong Kong, and accordingly are subject to income tax at 8.25% on the first HKD 2,000,000 profit and 16.5% on the remaining profits arising in or derived from Hong Kong.

 

 

The components of the income tax provision were as follows:

 

 

 

 

For the Six Months ended

 

 

 

 

 

 

June 30,

 

June 30,

 

 

 

 

 

2023

 

2022

Current tax provision:

 

 

 

 

 

 

 

 

United States

 

 

 

 

$

                  -   

$

                  -   

Malaysia

 

 

 

 

 

                  -   

 

                  -   

Hong Kong

 

 

 

 

 

          19,202

 

        109,994

 

 

 

 

 

          19,202

 

        109,994

Deferred tax provision:

 

 

 

 

 

 

 

 

United States

 

 

 

 

 

                  -   

 

                  -   

Malaysia

 

 

 

 

 

                  -   

 

                  -   

Hong Kong

 

 

 

 

 

                  -   

 

                  -   

 

 

 

 

 

                  -   

 

                  -   

 

 

 

 

$

          19,202

$

        109,994

Accounting for Uncertainty in Income Taxes

 

The local tax authority conducts periodic and ad hoc tax filing reviews on business enterprises after those enterprises complete their relevant tax filings. Therefore, the Company’s tax filings are subject to examination. It is therefore uncertain as to whether the local tax authority may take different views about the Company’s tax filings, which may lead to additional tax liabilities.

XML 29 R18.htm IDEA: XBRL DOCUMENT v3.23.2
Note 12 - SEGMENT REPORTING
6 Months Ended
Jun. 30, 2023
Notes  
Note 12 - SEGMENT REPORTING

Note 12 - SEGMENT REPORTING

 

Revenue by service categories

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended

 

 

 

 

 

 

June 30,

 

June 30,

 

 

2023

 

2022

Revenue

 

 

 

 

 

 

 

 

 

 

 

Consultant services

$

     1,096,284

$

        630,040

 

Software development and maintenance services

 

          49,055

 

          95,997

 

 

     1,145,339

 

        726,037

Operating costs

 

 

 

 

 

 

 

 

 

Consultant services

 

     1,199,119

 

     2,235,400

 

Software development and maintenance services

 

          51,815

 

          89,495

 

 

     1,250,934

 

     2,324,895

Income (loss) from operations

 

 

 

 

 

 

 

 

 

Consultant services

 

       (102,835)

 

    (1,605,360)

 

Software development and maintenance services

 

           (2,760)

 

            6,502

 

 

       (105,595)

 

    (1,598,858)

Other income (expenses)

 

 

 

 

 

 

 

 

 

Consultant services

 

               808

 

            7,493

 

Software development and maintenance services

 

                  -   

 

                  -   

 

 

               808

 

            7,493

Income (loss) before income tax expense

 

 

 

 

 

 

 

 

Consultant services

 

       (102,027)

 

    (1,597,867)

 

Software development and maintenance services

 

           (2,760)

 

            6,502

 

 

       (104,787)

 

    (1,591,365)

Income tax expense

 

 

 

 

 

 

 

 

 

Consultant services

 

          19,202

 

        109,994

 

Software development and maintenance services

 

                  -   

 

                  -   

 

 

          19,202

 

        109,994

Net income (loss)

 

 

 

 

 

 

 

 

 

Consultant services

 

       (121,229)

 

    (1,707,861)

 

Software development and maintenance services

 

           (2,760)

 

            6,502

 

$

       (123,989)

$

    (1,701,359)

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditure

 

 

 

 

 

 

 

 

 

Consultant services

$

                  -   

$

               363

 

Software development and maintenance services

 

            1,224

 

                  -   

 

$

            1,224

$

               363

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

 

 

 

2023

 

2022

Total assets

 

 

 

 

 

 

 

 

 

Consultant services

$

          49,535

$

          27,973

 

Software development and maintenance services

 

          13,703

 

            6,543

 

Other

 

169,770

 

180,839

 

$

        233,008

$

        215,355

XML 30 R19.htm IDEA: XBRL DOCUMENT v3.23.2
Note 13 - EQUITY CAPITAL
6 Months Ended
Jun. 30, 2023
Notes  
Note 13 - EQUITY CAPITAL

Note 13 - EQUITY CAPITAL

 

Authorized Capital

 

On the date its of incorporation, QMIS USA was authorized to issue 750,000,000 shares of common stock, par value $0.0001 per share. On October 7, 2020, the Company amended its Certificate of Incorporation to be authorized to issue 760,000,000 shares of stock, consisting of 750,000,000 shares of common stock having a par value of $0.0001 per share, and 10,000,000 shares of preferred stock having a par value of $0.0001 per share.

 

Issuance of Common Stock

 

On February 12, 2020, 300,000,000 shares of common stock were issued at par value $0.0001 per share to three directors as director fees, totaling $30,000.

 

On February 13, 2023, a total of 1,000,100 shares of common stock were issued to Dr. Chin Yung Kong and Mr. Chin Hua Fung for acquisition of QMIS Securities Capital SDN BHD.

 

Capital Stock Issued and Outstanding

 

As of June 30, 2023, and December 31, 2022, 301,000,100 shares of common stock were issued and outstanding, respectively, and no shares of preferred stock were issued and outstanding, respectively. The number of shares reflects the retrospective presentation of the share issuance on February 13, 2023 for acquisition of QMIS Securities Capital SDN BHD, due to the recapitalization between entities under common control.

XML 31 R20.htm IDEA: XBRL DOCUMENT v3.23.2
Note 14 - CONVERTIBLE PROMISSORY NOTE
6 Months Ended
Jun. 30, 2023
Notes  
Note 14 - CONVERTIBLE PROMISSORY NOTE

Note 14 - CONVERTIBLE PROMISSORY NOTE

 

On October 30, 2020, the Company entered into an agreement to issue a convertible promissory note (the "Note") in the principal amount of one million five hundred thousand dollars ($1,500,000), to the Chairman of the Board and CEO, Dr. Yung Kong Chin. The Company will pay interest from the date of issuance of the Note on the unpaid principal balance at the annual rate of interest equal to eight percent (8%) per six months, such principal and interest to be payable on demand. The Note is a general unsecured obligation of the Company. At any time, the unpaid principal amount of the Note and any unpaid interest accrued thereon can be converted into the Company's common stock at $1.50 per share. However, the Note has not been issued and no fund has been made to the Company at the date of this report. The Company and Dr. Chin anticipate that the Note will be issued in the fourth quarter of 2023.

XML 32 R21.htm IDEA: XBRL DOCUMENT v3.23.2
Note 15 - CONTINGENCIES, RISKS AND UNCERTAINTIES
6 Months Ended
Jun. 30, 2023
Notes  
Note 15 - CONTINGENCIES, RISKS AND UNCERTAINTIES

Note 15 - CONTINGENCIES, RISKS AND UNCERTAINTIES

 

Foreign operation

 

The Company’s operations are carried out in Malaysia and Hong Kong. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments therein. In addition, the Company’s business may be influenced by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, rates and methods of taxation among other factors.

 

Liquidity risk

 

The Company is exposed to liquidity risk which is the risk that the Company is unable to provide sufficient capital resources and liquidity to meet its commitments and business needs. Liquidity risk is controlled by the application of financial position analysis and monitoring procedures. When necessary, the Company will turn to other financial institutions and the shareholders to obtain short-term funding to meet the liquidity shortage.

 

 

Other risk

 

The Company’s business, financial condition and results of operations may also be negatively impacted by risks related to natural disasters, extreme weather conditions, health epidemics and other catastrophic incidents, such as the COVID-19 outbreak and spread, which could significantly disrupt the Company’s operations.

XML 33 R22.htm IDEA: XBRL DOCUMENT v3.23.2
Note 16 - SUBSEQUENT EVENTS
6 Months Ended
Jun. 30, 2023
Notes  
Note 16 - SUBSEQUENT EVENTS

Note 16 - SUBSEQUENT EVENTS

 

On August 3, 2023, QMIS Investment Bank Limited (“QIB”) and Dr. Chin incorporated a company, QMIS Micropay Berhad, in Kuala Lumpur, Malaysia. QIB and Dr. Chin own 60% and 40% of the ownership equity interests of QMIS Micropay Berhad, respectively. QMIS Micropay Berhad plans to carry on the business of electronic payments and transactions but had not engaged in any business operation as of the date of this Quarterly Report.

XML 34 R23.htm IDEA: XBRL DOCUMENT v3.23.2
Note 2 - SIGNIFICANT ACCOUNTING POLICIES: Non-controlling Interest (Policies)
6 Months Ended
Jun. 30, 2023
Policies  
Non-controlling Interest

Non-controlling Interest

 

Non-controlling interest in the consolidated balance sheets represents the portion of the equity in the subsidiaries not attributable, directly or indirectly, to the Company. The portion of the income or loss applicable to the non-controlling interest in subsidiaries is also separately reflected in the consolidated statements of operations and comprehensive income (loss).

XML 35 R24.htm IDEA: XBRL DOCUMENT v3.23.2
Note 2 - SIGNIFICANT ACCOUNTING POLICIES: Foreign Currency Translation (Policies)
6 Months Ended
Jun. 30, 2023
Policies  
Foreign Currency Translation

Foreign Currency Translation

 

The accompanying consolidated financial statements are presented in United States Dollar (“US$”), which is the reporting currency of the Company. The functional currency of QSC, QWT, QCV, QGE, QBT, and QR are Malaysian Ringgit (“MYR”). The functional currency of QFL and QTBS are Hong Kong dollar ("HKD"). The functional currency of QMIS USA and QIB is US$.

 

Each subsidiary of the Company maintains its books and records in its respective functional currency.  Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. The resulting exchange differences are recorded in the statements of operations.

 

The reporting currency of QMIS USA is the United States Dollar, and the accompanying consolidated financial statements have been expressed in US$. In accordance with ASC Topic 830-30, “Translation of Financial Statements,” assets and liabilities of the Company whose functional currency is not US$ are translated into US$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from the translation of financial statements are recorded as a separate component of accumulated other comprehensive gain (loss) within the statements of changes in shareholders’ deficit.

 

The exchange rates used for foreign currency translation were as follows:

 

US$1 = HKD

 

Period Covered

 

 

 

 

Balance Sheet Date Rates

 

Average Rates

 

 

 

 

 

 

 

 

 

Six months ended June 30, 2023

 

 

7.8363

 

7.8394

Six months ended June 30, 2022

 

 

7.8472

 

7.8260

 

US$1 = MYR

 

Period Covered

 

 

 

 

Balance Sheet Date Rates

 

Average Rates

 

 

 

 

 

 

 

 

 

Six months ended June 30, 2023

 

 

4.6650

 

4.4559

Six months ended June 30, 2022

 

 

4.4075

 

4.2710

XML 36 R25.htm IDEA: XBRL DOCUMENT v3.23.2
Note 2 - SIGNIFICANT ACCOUNTING POLICIES: Use of Estimates (Policies)
6 Months Ended
Jun. 30, 2023
Policies  
Use of Estimates

Use of Estimates

 

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates and judgments on historical experience and on various other assumptions and information that are believed to be reasonable under the circumstances. Estimates and assumptions of future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as operating environment changes. Significant estimates and assumptions by management include, among others, estimated life and impairment of long-lived assets, allowance for doubtful accounts, contingencies, and income taxes including the valuation allowance for deferred tax assets.

 

While the Company believes that the estimates and assumptions used in the preparation of the financial statements are appropriate, actual results could differ from those estimates. Estimates and assumptions are periodically reviewed, and the effects of revisions are reflected in the financial statements in the period they are determined to be necessary.

XML 37 R26.htm IDEA: XBRL DOCUMENT v3.23.2
Note 2 - SIGNIFICANT ACCOUNTING POLICIES: Fair Value of Financial Instruments (Policies)
6 Months Ended
Jun. 30, 2023
Policies  
Fair Value of Financial Instruments

Fair Value of Financial Instruments

 

The Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements,” which defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosures requirements for fair value measures. Current assets and current liabilities qualified as financial instruments and management believes their carrying amounts are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and if applicable, their current interest rate is equivalent to interest rates currently available. The three levels are defined as follow:

 

Level 1:Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. 

 

Level 2:Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. 

 

Level 3:Inputs to the valuation methodology are unobservable and significant to the fair value. 

 

As of the balance sheet date, the estimated fair values of the financial instruments approximated their fair values due to the short-term nature of these instruments. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates the hierarchy disclosures each year.

XML 38 R27.htm IDEA: XBRL DOCUMENT v3.23.2
Note 2 - SIGNIFICANT ACCOUNTING POLICIES: Cash and Cash Equivalents (Policies)
6 Months Ended
Jun. 30, 2023
Policies  
Cash and Cash Equivalents

Cash and Cash Equivalents

 

Cash and cash equivalents include cash on hand and cash in time deposits, certificates of deposit and all other highly liquid instruments with original maturities of three months or less.

XML 39 R28.htm IDEA: XBRL DOCUMENT v3.23.2
Note 2 - SIGNIFICANT ACCOUNTING POLICIES: Statements of Cash Flows (Policies)
6 Months Ended
Jun. 30, 2023
Policies  
Statements of Cash Flows

Statements of Cash Flows

 

In accordance with ASC 830-230, “Statement of Cash Flows,” cash flows from the Company’s operations are calculated based upon the functional currency. As a result, amounts related to assets and liabilities reported on the statement of cash flows may not necessarily agree with changes in the corresponding balances on the balance sheet.

XML 40 R29.htm IDEA: XBRL DOCUMENT v3.23.2
Note 2 - SIGNIFICANT ACCOUNTING POLICIES: Accounts Receivable (Policies)
6 Months Ended
Jun. 30, 2023
Policies  
Accounts Receivable

Accounts Receivable

 

Accounts receivable, net represent the amounts that the Company has an unconditional right to consideration, which are stated at the original amount less an allowance for doubtful receivables. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. The Company usually determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of operations and comprehensive income (loss). Delinquent account balances are written off against the allowance for doubtful accounts after management has determined that the likelihood of collection is remote. In circumstances in which the Company receives payment for accounts receivable that have previously been written off, the Company reverses the allowance and bad debt.

XML 41 R30.htm IDEA: XBRL DOCUMENT v3.23.2
Note 2 - SIGNIFICANT ACCOUNTING POLICIES: Property, Plant and Equipment (Policies)
6 Months Ended
Jun. 30, 2023
Policies  
Property, Plant and Equipment

Property, plant and equipment

 

Property and equipment primarily consist of cultivation equipment, office equipment, furniture, tools and construction in progress. Cultivation equipment, office equipment, furniture and tools are stated at cost less accumulated depreciation less any provision required for impairment in value. Depreciation is computed using the straight-line method based on the estimated useful lives as follows:

 

Office equipment and furniture

 

 

10 years

Computers and printers

 

 

2.5 years

Leasehold improvements

 

 

5 years (lease term)

 

Costs of repairs and maintenance are expensed as incurred and asset improvements are capitalized. The cost and related accumulated depreciation of assets disposed of or retired are removed from the accounts, and any resulting gain or loss is reflected in the consolidated statement of income.

XML 42 R31.htm IDEA: XBRL DOCUMENT v3.23.2
Note 2 - SIGNIFICANT ACCOUNTING POLICIES: Impairment of long-lived assets (Policies)
6 Months Ended
Jun. 30, 2023
Policies  
Impairment of long-lived assets

Impairment of long-lived assets

 

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. No impairment of long-lived assets was recognized for the six months ended June 30, 2023 and 2022.

XML 43 R32.htm IDEA: XBRL DOCUMENT v3.23.2
Note 2 - SIGNIFICANT ACCOUNTING POLICIES: Operating lease (Policies)
6 Months Ended
Jun. 30, 2023
Policies  
Operating lease

Operating lease

 

The Company’s leases are classified as operating leases in accordance with ASC Topic 842, “Leases.” Under Topic 842, lessees are required to recognize the following for all leases (with the exception of short-term leases) on the commencement date: (i) lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term.

 

At the commencement date, the Company recognizes the lease liability at the present value of the lease payments not yet paid, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate for the same term as the underlying lease. The right-of-use asset is recognized initially at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All right-of-use assets are reviewed for impairment. No impairment for right-of-use lease assets incurred in the six months ended June 30, 2023 and 2022.

XML 44 R33.htm IDEA: XBRL DOCUMENT v3.23.2
Note 2 - SIGNIFICANT ACCOUNTING POLICIES: Concentration of Credit Risk (Policies)
6 Months Ended
Jun. 30, 2023
Policies  
Concentration of Credit Risk

Concentration of Credit Risk

 

Financial instruments the Company holds that are subject to concentrations of credit risk are cash and accounts receivable arising from its normal business activities. The Company places its cash and restricted cash in what it believes to be credit-worthy financial institutions. The Company conducts periodic reviews of the financial condition and payment practices of its customers to minimize collection risk on accounts receivable.

 

For the six months ended June 30, 2023 and 2022, customer A accounted for 95.7% and 86.7%, respectively, of the Company’s total revenues.

 

For the six months ended June 30, 2023 and 2022, no vendor accounted for more than 10% of the Company’s total purchases.

XML 45 R34.htm IDEA: XBRL DOCUMENT v3.23.2
Note 2 - SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition (Policies)
6 Months Ended
Jun. 30, 2023
Policies  
Revenue Recognition

Revenue Recognition

 

The Company adopted ASC 606, “Revenue from Contracts with Customers,” upon inception. Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation.

 

The Company currently generates its revenue from the following main sources:

 

Revenue from consultant services

 

QSC, QFL, and QTBS work together to provide business consultant services to customers. The revenue is recognized at the point in time when the consultant services promised are performed and accepted by the customers, which is generally when the consultant project is delivered to and accepted by the customer.

 

Revenue from Software Development and maintenance services

 

QR provides customers with software development and maintenance services pursuant to their specific requirements, which primarily compose of custom application development, supporting, and training. The Company generally recognizes revenue at a point in time when control is transferred to the customers and the Company is entitled to the payment, or when the promised services are delivered and accepted by the customers.

 

Beginning from early 2023, QR generates revenue from the usage of an online payment software, QRPay, which is maintained by QR. QR recognizes such revenue at a point in time when the related online payment transaction is successfully completed and QR is entitled to the revenue.

 

Payments for services received in advance in accordance with the contract are recognized as deferred revenues when received.

 

Cost of Revenues

 

Cost of revenues primarily consists of salaries and related expenses (e.g., bonuses, employee benefits, statutory pension contribution, and payroll taxes) for personnel directly involved in the delivery of services and products directly to customers.

XML 46 R35.htm IDEA: XBRL DOCUMENT v3.23.2
Note 2 - SIGNIFICANT ACCOUNTING POLICIES: Comprehensive Income (Loss) (Policies)
6 Months Ended
Jun. 30, 2023
Policies  
Comprehensive Income (Loss)

Comprehensive Income (Loss)

 

ASC 220, “Comprehensive Income,” established standards for reporting and display of comprehensive income/loss, its components and accumulated balances. Components of comprehensive income/loss include net income/loss and foreign currency translation adjustments. The component of accumulated other comprehensive income (loss) consisted of foreign currency translation adjustments.

XML 47 R36.htm IDEA: XBRL DOCUMENT v3.23.2
Note 2 - SIGNIFICANT ACCOUNTING POLICIES: Income Taxes (Policies)
6 Months Ended
Jun. 30, 2023
Policies  
Income Taxes

Income Taxes

 

The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

 

An uncertain tax position is recognized only if it is “more likely than not” that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred.

 

QSC, QWT, QCV, QGE, QBT, QIB, and QR operate in Malaysia and are subject to the income tax laws of Malaysia. QFL and QTBS operate in Hong Kong and are subject to the income tax law of Hong Kong. As of June 30, 2023, and December 31, 2022, all of the Company’s tax returns remain open for statutory examination by relevant tax authorities.

 

The Company accounts for income taxes in interim periods in accordance with FASB ASC 740-270, “Interim Reporting.” The Company has determined an estimated annual effective tax rate. The rate will be revised, if necessary, as of the end of each successive interim period during the Company's fiscal year to its best current estimate. The estimated annual effective tax rate is applied to the year-to-date ordinary income (or loss) at the end of the interim period.

XML 48 R37.htm IDEA: XBRL DOCUMENT v3.23.2
Note 2 - SIGNIFICANT ACCOUNTING POLICIES: Service Taxes Policy (Policies)
6 Months Ended
Jun. 30, 2023
Policies  
Service Taxes Policy

Service taxes

 

Service tax is a consumption tax levied by Malaysian tax authorities and is charged on any taxable service income (including digital services) provided in Malaysia by a registered company in carrying on their business. The rate of service tax is 6% ad valorem for all taxable services. A taxable entity is a company that is registered or liable to be registered for service taxes. A company is liable to be registered if the total value of its taxable services for a 12-month period exceeds or is expected to exceed the prescribed registration threshold of MYR500,000 as consultancy, training or coaching services providers and digital and information technology services providers. QSC, QWT, QCV, QGE, QBT, and QR are all subject to these service taxes. Service taxes were recorded with respect to these Malaysian subsidiaries as a deduction against the Company’s gross revenue.

XML 49 R38.htm IDEA: XBRL DOCUMENT v3.23.2
Note 2 - SIGNIFICANT ACCOUNTING POLICIES: Earnings Per Share (Policies)
6 Months Ended
Jun. 30, 2023
Policies  
Earnings Per Share

Earnings per share

 

Basic earnings per ordinary share is computed by dividing net earnings attributable to ordinary shareholders by the weighted-average number of ordinary shares outstanding during the period. Diluted earnings per share is computed by dividing net income attributable to ordinary shareholders by the sum of the weighted average number of ordinary share outstanding and of potential ordinary share (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted earnings per share. For the six months ended June 30, 2023 and 2022, the Company had no dilutive stocks.

XML 50 R39.htm IDEA: XBRL DOCUMENT v3.23.2
Note 2 - SIGNIFICANT ACCOUNTING POLICIES: Related Parties Transactions Policy (Policies)
6 Months Ended
Jun. 30, 2023
Policies  
Related Parties Transactions Policy

Related Parties Transactions

 

The Company identifies related parties, and accounts for, discloses related party transactions in accordance with ASC 850, “Related Party Disclosures,” and other relevant ASC standards.

 

A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered as a related party transaction when there is a transfer of resources or obligations between related parties. Related parties may be individuals or corporate entities.

 

Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts of related party transactions due to their related party nature.

XML 51 R40.htm IDEA: XBRL DOCUMENT v3.23.2
Note 2 - SIGNIFICANT ACCOUNTING POLICIES: Segment Reporting (Policies)
6 Months Ended
Jun. 30, 2023
Policies  
Segment Reporting

Segment Reporting

 

ASC 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s chief operating decision maker organizes segments within the Company for making operating decisions assessing performance and allocating resources. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company.

 

Management determined the Company’s operations constitute two reportable segments in accordance with ASC 280, business consultant services and software development and maintenance services.

XML 52 R41.htm IDEA: XBRL DOCUMENT v3.23.2
Note 2 - SIGNIFICANT ACCOUNTING POLICIES: Recently Issued Accounting Pronouncements (Policies)
6 Months Ended
Jun. 30, 2023
Policies  
Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

 

In August 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. This ASU (1) simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock; (2) revises the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification; and (3) revises the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. For SEC filers, excluding smaller reporting companies, ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. For all other entities, ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Entities should adopt the guidance as of the beginning of the fiscal year of adoption and cannot adopt the guidance in an interim reporting period. The Company is currently evaluating the impact that ASU 2020-06 may have on its consolidated financial statement presentation and related disclosures.

 

In March 2023, the FASB issued ASU 2023-01, Lease (Topic 842): Common Control Arrangements, which clarifies the accounting for leasehold improvements associated with leases between entities under common control (hereinafter referred to as common control lease). ASU 2023-01 requires entities to amortize leasehold improvements associated with common control lease over the useful life to the common control group (regardless of the lease term) as long as the lessee controls the use of the underlying asset through a lease, and to account for any remaining leasehold improvements as a transfer between entities under common control through an adjustment to equity when the lessee no longer controls the underlying asset. This ASU will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been made available for issuance. An entity may apply ASU 2023-01 either prospectively or retrospectively. The Company is currently evaluating the impact that the adoption of ASU 2023-01 will have on its consolidated financial statement presentation and disclosures.

XML 53 R42.htm IDEA: XBRL DOCUMENT v3.23.2
Note 2 - SIGNIFICANT ACCOUNTING POLICIES: Foreign Currency Translation: Schedule of Exchange Rates Used for Foreign Currency Translation (Tables)
6 Months Ended
Jun. 30, 2023
Tables/Schedules  
Schedule of Exchange Rates Used for Foreign Currency Translation

US$1 = HKD

 

Period Covered

 

 

 

 

Balance Sheet Date Rates

 

Average Rates

 

 

 

 

 

 

 

 

 

Six months ended June 30, 2023

 

 

7.8363

 

7.8394

Six months ended June 30, 2022

 

 

7.8472

 

7.8260

 

US$1 = MYR

 

Period Covered

 

 

 

 

Balance Sheet Date Rates

 

Average Rates

 

 

 

 

 

 

 

 

 

Six months ended June 30, 2023

 

 

4.6650

 

4.4559

Six months ended June 30, 2022

 

 

4.4075

 

4.2710

XML 54 R43.htm IDEA: XBRL DOCUMENT v3.23.2
Note 4 - ACCOUNTS RECEIVABLE: Schedule of Accounts, Notes, Loans and Financing Receivable (Tables)
6 Months Ended
Jun. 30, 2023
Tables/Schedules  
Schedule of Accounts, Notes, Loans and Financing Receivable

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

$

          100,039

$

                   -   

Accounts receivable-related parties*

 

 

 

                   -   

 

              2,054

Less: Allowance for doubtful accounts

 

 

 

                   -   

 

                   -   

   Accounts receivable, net

 

 

$

          100,039

$

              2,054

XML 55 R44.htm IDEA: XBRL DOCUMENT v3.23.2
Note 5 - PROPERTY, PLANT AND EQUIPMENT: Property, Plant and Equipment (Tables)
6 Months Ended
Jun. 30, 2023
Tables/Schedules  
Property, Plant and Equipment

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Office equipment and furniture

 

 

 

              5,902

 

              5,017

Computers and printers

 

 

 

            11,337

 

            12,019

Leasehold improvements

 

 

 

            19,283

 

            20,444

     Total

 

 

 

            36,522

 

            37,480

Less: Accumulated depreciation

 

 

 

          (33,092)

 

          (32,923)

     Total property, plant and equipment, net

 

 

$

              3,430

$

              4,557

XML 56 R45.htm IDEA: XBRL DOCUMENT v3.23.2
Note 6 - ACCOUNTS PAYABLE: Schedule of Accounts Payable (Tables)
6 Months Ended
Jun. 30, 2023
Tables/Schedules  
Schedule of Accounts Payable

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

$

                   -   

$

            10,840

Accounts payable-related parties*

 

 

 

            36,441

 

            22,726

      Total

 

 

$

            36,441

$

            33,566

XML 57 R46.htm IDEA: XBRL DOCUMENT v3.23.2
Note 7 - ACCRUED EXPENSES: Schedule of Accrued Liabilities (Tables)
6 Months Ended
Jun. 30, 2023
Tables/Schedules  
Schedule of Accrued Liabilities

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Accrued pension and employee benefit

 

 

$

            31,919

$

            32,651

Accrued professional fees

 

 

 

          211,592

 

          140,001

Accrued office expenses

 

 

 

              8,174

 

              8,601

      Total

 

 

$

          251,685

$

          181,253

XML 58 R47.htm IDEA: XBRL DOCUMENT v3.23.2
Note 8 - TAXES PAYABLE: Schedule of Taxes Payable (Tables)
6 Months Ended
Jun. 30, 2023
Tables/Schedules  
Schedule of Taxes Payable

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Malaysia income taxes payable

 

 

$

            76,552

$

          115,947

Malaysia services taxes payable

 

 

 

          161,004

 

          170,750

Hong Kong income taxes payable

 

 

 

          746,440

 

          730,479

      Total

 

 

$

          983,996

$

       1,017,176

XML 59 R48.htm IDEA: XBRL DOCUMENT v3.23.2
Note 9 - RELATED PARTY TRANSACTIONS: Schedule of Related Party Transactions (Tables)
6 Months Ended
Jun. 30, 2023
Tables/Schedules  
Schedule of Related Party Transactions

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Dr. Yung Kong Chin

 

 

$

          680,186

$

          610,557

Pantop Venture Capital SDN BHD

 

 

 

            69,434

 

            64,817

Ms. Tingting Gu

 

 

 

              6,471

 

                   -   

Mr. Kar Yee Ong

 

 

 

              5,104

 

                   -   

      Total

 

 

$

          761,195

$

          675,374

XML 60 R49.htm IDEA: XBRL DOCUMENT v3.23.2
Note 9 - RELATED PARTY TRANSACTIONS: Schedule of Compensation paid to directors (Tables)
6 Months Ended
Jun. 30, 2023
Tables/Schedules  
Schedule of Compensation paid to directors

 

 

 

 

For the Six Months Ended June 30,

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Dr. Yung Kong Chin

 

$

          253,201

$

          417,314

Mr. Hua Fung Chin

 

 

            35,648

 

            33,327

Ms. Tingting Gu

 

 

              5,102

 

                   -   

Mr. Kar Yee Ong

 

 

              5,102

 

                   -   

Total

 

$

          299,053

$

          450,641

XML 61 R50.htm IDEA: XBRL DOCUMENT v3.23.2
Note 10 - LEASES: Lessee, Operating Lease, Disclosure (Tables)
6 Months Ended
Jun. 30, 2023
Tables/Schedules  
Lessee, Operating Lease, Disclosure

 

 

 

 

For the Six Months Ended

 

 

 

 

 

 

June 30,

 

June 30,

 

 

 

 

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Operating lease cost

 

 

 

 

$

          12,361

$

          12,497

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

 

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Weighted Average Remaining Lease Term - Operating leases

 

1.25 years

 

0.58 years

 

 

 

 

 

 

 

 

 

Weighted Average Discount Rate - Operating leases

 

8.00%

 

8.00%

XML 62 R51.htm IDEA: XBRL DOCUMENT v3.23.2
Note 10 - LEASES: Schedule of Future Minimum Payments for Operating Leases (Tables)
6 Months Ended
Jun. 30, 2023
Tables/Schedules  
Schedule of Future Minimum Payments for Operating Leases

 

 

 

 

 

 

 

 

June 30,

 

 

 

 

 

 

 

 

2023

 

 

 

 

 

 

 

 

 

2023

 

 

 

 

 

 

$

               887

2024

 

 

 

 

 

 

 

               116

Total lease payments

 

 

 

 

 

 

 

            1,003

Less: imputed interest

 

 

 

 

 

 

 

                (29)

Total lease liabilities

 

 

 

 

 

 

 

               974

Less: current portion

 

 

 

 

 

 

 

               860

Non-current lease liabilities

 

 

 

 

 

$

               114

XML 63 R52.htm IDEA: XBRL DOCUMENT v3.23.2
Note 11 - INCOME TAXES: Schedule of Components of Income Tax Expense (Benefit) (Tables)
6 Months Ended
Jun. 30, 2023
Tables/Schedules  
Schedule of Components of Income Tax Expense (Benefit)

 

 

 

 

For the Six Months ended

 

 

 

 

 

 

June 30,

 

June 30,

 

 

 

 

 

2023

 

2022

Current tax provision:

 

 

 

 

 

 

 

 

United States

 

 

 

 

$

                  -   

$

                  -   

Malaysia

 

 

 

 

 

                  -   

 

                  -   

Hong Kong

 

 

 

 

 

          19,202

 

        109,994

 

 

 

 

 

          19,202

 

        109,994

Deferred tax provision:

 

 

 

 

 

 

 

 

United States

 

 

 

 

 

                  -   

 

                  -   

Malaysia

 

 

 

 

 

                  -   

 

                  -   

Hong Kong

 

 

 

 

 

                  -   

 

                  -   

 

 

 

 

 

                  -   

 

                  -   

 

 

 

 

$

          19,202

$

        109,994

XML 64 R53.htm IDEA: XBRL DOCUMENT v3.23.2
Note 12 - SEGMENT REPORTING: Schedule of Segment Reporting Information, by Segment (Tables)
6 Months Ended
Jun. 30, 2023
Tables/Schedules  
Schedule of Segment Reporting Information, by Segment

Revenue by service categories

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended

 

 

 

 

 

 

June 30,

 

June 30,

 

 

2023

 

2022

Revenue

 

 

 

 

 

 

 

 

 

 

 

Consultant services

$

     1,096,284

$

        630,040

 

Software development and maintenance services

 

          49,055

 

          95,997

 

 

     1,145,339

 

        726,037

Operating costs

 

 

 

 

 

 

 

 

 

Consultant services

 

     1,199,119

 

     2,235,400

 

Software development and maintenance services

 

          51,815

 

          89,495

 

 

     1,250,934

 

     2,324,895

Income (loss) from operations

 

 

 

 

 

 

 

 

 

Consultant services

 

       (102,835)

 

    (1,605,360)

 

Software development and maintenance services

 

           (2,760)

 

            6,502

 

 

       (105,595)

 

    (1,598,858)

Other income (expenses)

 

 

 

 

 

 

 

 

 

Consultant services

 

               808

 

            7,493

 

Software development and maintenance services

 

                  -   

 

                  -   

 

 

               808

 

            7,493

Income (loss) before income tax expense

 

 

 

 

 

 

 

 

Consultant services

 

       (102,027)

 

    (1,597,867)

 

Software development and maintenance services

 

           (2,760)

 

            6,502

 

 

       (104,787)

 

    (1,591,365)

Income tax expense

 

 

 

 

 

 

 

 

 

Consultant services

 

          19,202

 

        109,994

 

Software development and maintenance services

 

                  -   

 

                  -   

 

 

          19,202

 

        109,994

Net income (loss)

 

 

 

 

 

 

 

 

 

Consultant services

 

       (121,229)

 

    (1,707,861)

 

Software development and maintenance services

 

           (2,760)

 

            6,502

 

$

       (123,989)

$

    (1,701,359)

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditure

 

 

 

 

 

 

 

 

 

Consultant services

$

                  -   

$

               363

 

Software development and maintenance services

 

            1,224

 

                  -   

 

$

            1,224

$

               363

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

 

 

 

2023

 

2022

Total assets

 

 

 

 

 

 

 

 

 

Consultant services

$

          49,535

$

          27,973

 

Software development and maintenance services

 

          13,703

 

            6,543

 

Other

 

169,770

 

180,839

 

$

        233,008

$

        215,355

XML 65 R54.htm IDEA: XBRL DOCUMENT v3.23.2
Note 2 - SIGNIFICANT ACCOUNTING POLICIES: Foreign Currency Translation: Schedule of Exchange Rates Used for Foreign Currency Translation (Details)
6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Details    
Hong Kong Dollar to United States Dollar Exchange Rate 7.8363 7.8472
Hong Kong Dollar to United States Dollar Exchange Average Rates 7.8394 7.8260
Malaysian Ringgit to United States Dollar Exchange Rates 4.6650 4.4075
Malaysian Ringgit to United States Dollar Exchange Average Rates 4.4559 4.2710
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Note 2 - SIGNIFICANT ACCOUNTING POLICIES: Property, Plant and Equipment (Details)
Jun. 30, 2023
Office Equipment  
Finite-Lived Intangible Asset, Useful Life 10 years
Computer Equipment  
Finite-Lived Intangible Asset, Useful Life 2 years 6 months
Leasehold Improvements  
Finite-Lived Intangible Asset, Useful Life 5 years
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Note 2 - SIGNIFICANT ACCOUNTING POLICIES: Concentration of Credit Risk (Details)
6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Concentration Risk, Supplier   no vendor accounted for more than 10% of the Company’s total purchases
Revenue Benchmark    
Customer A Accounted for Percentage of Revenue 95.70% 86.70%
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Note 3 - GOING CONCERN (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2022
Mar. 31, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Details              
Net loss $ 358,265 $ (234,276) $ 162,574 $ 1,538,785 $ 123,989 $ 1,701,359  
Working capital deficit 1,810,863       1,810,863   $ 1,725,668
Retained Earnings (Accumulated deficit) $ 3,135,389       $ 3,135,389   $ 3,013,236
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Note 4 - ACCOUNTS RECEIVABLE: Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($)
Jun. 30, 2023
Dec. 31, 2022
Details    
Accounts receivable $ 100,039 $ 0
Accounts receivable-related parties* 0 2,054
Less: Allowance for doubtful accounts 0 0
Accounts receivable, net (Note 4) $ 100,039 $ 2,054
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Note 4 - ACCOUNTS RECEIVABLE (Details) - USD ($)
6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Details    
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease) $ 0 $ 0
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Note 5 - PROPERTY, PLANT AND EQUIPMENT: Property, Plant and Equipment (Details) - USD ($)
Jun. 30, 2023
Dec. 31, 2022
Property, Plant and Equipment, Gross $ 36,522 $ 37,480
Less: Accumulated depreciation (33,092) (32,923)
Property, plant and equipment, net (Note 5) 3,430 4,557
Office Equipment    
Property, Plant and Equipment, Gross 5,902 5,017
Computer Equipment    
Property, Plant and Equipment, Gross 11,337 12,019
Leasehold Improvements    
Property, Plant and Equipment, Gross $ 19,283 $ 20,444
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Note 5 - PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Details        
Depreciation $ 997 $ 1,166 $ 2,133 $ 2,367
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Note 6 - ACCOUNTS PAYABLE: Schedule of Accounts Payable (Details) - USD ($)
Jun. 30, 2023
Dec. 31, 2022
Accounts payable (Note 6) $ 36,441 $ 33,566
Accounts Payable    
Accounts payable (Note 6) 0 10,840
Accounts Payable, Related Parties    
Accounts payable (Note 6) $ 36,441 $ 22,726
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Note 7 - ACCRUED EXPENSES: Schedule of Accrued Liabilities (Details) - USD ($)
Jun. 30, 2023
Dec. 31, 2022
Details    
Accrued pension and employee benefit $ 31,919 $ 32,651
Accrued professional fees 211,592 140,001
Accrued office expenses 8,174 8,601
Accrued expenses (Note 7) $ 251,685 $ 181,253
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Note 8 - TAXES PAYABLE: Schedule of Taxes Payable (Details) - USD ($)
Jun. 30, 2023
Dec. 31, 2022
Details    
Malaysia income taxes payable $ 76,552 $ 115,947
Malaysia services taxes payable 161,004 170,750
Hong Kong income taxes payable 746,440 730,479
Taxes payable (Note 8) $ 983,996 $ 1,017,176
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Note 9 - RELATED PARTY TRANSACTIONS (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Management fees-related party (Note 9 (2)) $ 99,977 $ (2,120) $ 385,166 $ 820,686  
Total general and administrative expenses 391,367 $ 133,488 807,343 1,176,387  
Accounts payable (Note 6) 36,441   36,441   $ 33,566
Pantop Venture Capital SDN BHD          
Total general and administrative expenses     20,198 $ 14,048  
Accounts payable (Note 6) $ 36,441   $ 36,441   $ 22,726
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Note 9 - RELATED PARTY TRANSACTIONS: Schedule of Related Party Transactions (Details) - USD ($)
Jun. 30, 2023
Dec. 31, 2022
Due to related parties (Note 9 (5)) $ 761,195 $ 675,374
Dr Yung Kong Chin, CEO    
Due to related parties (Note 9 (5)) 680,186 610,557
Pantop Venture Capital SDN BHD    
Due to related parties (Note 9 (5)) 69,434 64,817
Ms. Tingting Gu    
Due to related parties (Note 9 (5)) 6,471 0
Mr. Kar Yee Ong    
Due to related parties (Note 9 (5)) $ 5,104 $ 0
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Note 9 - RELATED PARTY TRANSACTIONS: Schedule of Compensation paid to directors (Details) - USD ($)
6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Compensation paid to directors $ 299,053 $ 450,641
Dr Yung Kong Chin, CEO    
Compensation paid to directors 253,201 417,314
Mr. Huan Fung Chin    
Compensation paid to directors 35,648 33,327
Ms. Tingting Gu    
Compensation paid to directors 5,102 0
Mr. Kar Yee Ong    
Compensation paid to directors $ 5,102 $ 0
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Note 10 - LEASES: Lessee, Operating Lease, Disclosure (Details) - USD ($)
6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Details      
Operating Lease, Cost $ 12,361 $ 12,497  
Operating Lease, Weighted Average Remaining Lease Term 1 year 3 months   6 months 29 days
Finance Lease, Weighted Average Discount Rate, Percent 8.00%   8.00%
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Note 10 - LEASES: Schedule of Future Minimum Payments for Operating Leases (Details) - USD ($)
Jun. 30, 2023
Dec. 31, 2022
Details    
Capital Leases, Future Minimum Payments, Next Rolling 12 Months $ 887  
Capital Leases, Future Minimum Payments, Due in Rolling Year Two 116  
Capital Leases, Future Minimum Payments Due 1,003  
Imputed Interest (29)  
Operating Lease, Liability 974  
Operating lease liabilities - current (Note 10) 860 $ 14,796
Operating lease liabilities - noncurrent (Note 10) $ 114 $ 357
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Note 11 - INCOME TAXES (Details)
6 Months Ended
Jun. 30, 2023
USD ($)
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent 21.00%
Taxable Income $ 150,000
Malaysia  
Enterprise Income Tax Rate 24.00%
Hong Kong  
Income Tax Rate on first HKD 2,000,000 Profits 8.25%
Income Tax Rate on remaining profits 16.50%
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Note 11 - INCOME TAXES: Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Current Federal Tax Expense (Benefit)     $ 19,202 $ 109,994
Deferred Tax Liabilities, Deferred Expense $ 0 $ 0 0 0
Provision for Income Tax 77 (1,027) 19,202 109,994
United States        
Current Federal Tax Expense (Benefit)     0 0
Deferred Tax Liabilities, Deferred Expense 0 0 0 0
Malaysia        
Current Federal Tax Expense (Benefit)     0 0
Deferred Tax Liabilities, Deferred Expense 0 0 0 0
Hong Kong        
Current Federal Tax Expense (Benefit)     19,202 109,994
Deferred Tax Liabilities, Deferred Expense $ 0 $ 0 $ 0 $ 0
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Note 12 - SEGMENT REPORTING: Schedule of Segment Reporting Information, by Segment (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2022
Mar. 31, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Total revenue $ 337,794   $ 3,706   $ 1,145,339 $ 726,037  
Operating Costs and Expenses         1,250,934 2,324,895  
Income (Loss) from Operation (356,950)   (163,900)   (105,595) (1,598,858)  
Total Other Income (Expenses) (1,238)   299   808 7,493  
Loss before Provision for Income Tax (358,188)   (163,601)   (104,787) (1,591,365)  
Provision for Income Tax 77   (1,027)   19,202 109,994  
Net loss (358,265) $ 234,276 $ (162,574) $ (1,538,785) (123,989) (1,701,359)  
Capital expenditure         1,224 363  
Total Assets 233,008       233,008   $ 215,355
Consultant services              
Total revenue         1,096,284 630,040  
Operating Costs and Expenses         1,199,119 2,235,400  
Income (Loss) from Operation         (102,835) (1,605,360)  
Total Other Income (Expenses)         808 7,493  
Loss before Provision for Income Tax         (102,027) (1,597,867)  
Provision for Income Tax         19,202 109,994  
Net loss         (121,229) (1,707,861)  
Capital expenditure         0 363  
Total Assets 49,535       49,535   27,973
Software development              
Total revenue         49,055 95,997  
Operating Costs and Expenses         51,815 89,495  
Income (Loss) from Operation         (2,760) 6,502  
Total Other Income (Expenses)         0 0  
Loss before Provision for Income Tax         (2,760) 6,502  
Provision for Income Tax         0 0  
Net loss         (2,760) 6,502  
Capital expenditure         1,224 $ 0  
Total Assets 13,703       13,703   6,543
Other              
Total Assets $ 169,770       $ 169,770   $ 180,839
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Note 13 - EQUITY CAPITAL (Details) - USD ($)
Feb. 13, 2023
Feb. 12, 2020
Jun. 30, 2023
Dec. 31, 2022
Oct. 07, 2020
Details          
Common Stock, Shares Authorized     750,000,000 750,000,000 760,000,000
Common Stock, Par or Stated Value Per Share   $ 0.0001 $ 0.0001 $ 0.0001 $ 0.0001
Preferred Stock, Shares Authorized     10,000,000 10,000,000 10,000,000
Preferred Stock, Par or Stated Value Per Share     $ 0.0001 $ 0.0001 $ 0.0001
Common Stock, Shares, Issued   300,000,000 301,000,100 301,000,100  
Director Fees   $ 30,000      
Stock Issued During Period, Shares, Acquisitions 1,000,100        
Common Stock, Shares, Outstanding     301,000,100 301,000,100  
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Note 14 - CONVERTIBLE PROMISSORY NOTE (Details)
Oct. 30, 2020
USD ($)
$ / shares
Details  
Debt Instrument, Annual Principal Payment | $ $ 1,500,000
Convertible Principal Percentage 8.00%
Share Price | $ / shares $ 1.50
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DE 32-0619708 100 N. Barranca St. #1000 West Covina CA 91791 (Address of Principal Executive Offices) Registrant’s telephone number, including area code 917 675-3214 Yes Yes Non-accelerated Filer true true false true 301000100 120605 187437 100039 2054 322 0 8062 8506 229028 197997 3430 4557 550 12801 233008 215355 36441 33566 251685 181253 0 1500 983996 1017176 860 14796 761195 675374 2034177 1923665 114 357 2034291 1924022 0 0 0.0001 0.0001 10000000 10000000 0 0 0 0 0 0 0.0001 0.0001 750000000 750000000 301000100 301000100 301000100 301000100 30100 30100 1251350 1251350 -3135389 -3013236 60597 30104 -1793342 -1701682 -7941 -6985 -1801283 -1708667 233008 215355 319937 -1638 1096284 630040 15243 5344 30970 95997 2614 0 18085 0 337794 3706 1145339 726037 291636 32370 412453 1083141 11741 1748 31138 65367 303377 34118 443591 1148508 34417 -30412 701748 -422471 12115 7159 27473 14601 997 1166 2133 2367 68346 13338 80816 26643 9230 9909 19133 19770 5300 115 39550 33435 191802 43921 245867 91885 0 50000 0 137000 0 10000 0 30000 99977 -2120 385166 820686 3600 0 7205 0 391367 133488 807343 1176387 391367 133488 807343 1176387 -356950 -163900 -105595 -1598858 224 0 235 2 -1462 299 573 7491 -1238 299 808 7493 -358188 -163601 -104787 -1591365 77 -1027 19202 109994 -358265 -162574 -123989 -1701359 -2297 -5746 -1836 2633 -355968 -156828 -122153 -1703992 23004 13575 31373 18136 -332964 -143253 -90780 -1685856 435 -852 880 -981 -333399 -142401 -91660 -1684875 -0.00 -0.00 -0.00 -0.01 301000100 301000100 301000100 301000100 301000100 30100 1251350 -3013236 30104 -1701682 -6985 -1708667 0 0 0 233815 0 233815 461 234276 0 0 0 0 7924 7924 445 8369 301000100 30100 1251350 -2779421 38028 -1459943 -6079 -1466022 0 0 0 -355968 0 -355968 -2297 -358265 0 0 0 0 22569 22569 435 23004.00 301000100 30100 1251350 -3135389 60597 -1793342 -7941 -1801283 301000100 30100 251375 -786951 -17445 -522921 16951 -505970 0 0 999975 0 0 999975 0 999975 0 0 0 -1547164 0 -1547164 8379 -1538785 0 0 0 0 4690 4690 -129 4561 301000100 30100 1251350 -2334115 -12755 -1065420 25201 -1040219 0 0 0 -156828 0 -156828 -5746 -162574 0 0 0 0 14427 14427 -852 13575 301000100 30100 1251350 -2490943 1672 -1207821 18603 -1189218 -123989 -1701359 2133 2367 12065 11656 102706 -138787 338 -52891 -40 1177 5005 2892 72827 35204 -15207 109993 -1481 6955 -13944 -11487 -165675 -1350924 1224 363 -1224 -363 0 999975 116707 70106 -17889 -943054 98818 127027 1249 -2137 -66832 -1226397 187437 1409794 120605 183397 0 0 34353 0 <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Note 1 - ORGANIZATION</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">QMIS TBS Capital Group Corp. (the “Company” or "QMIS USA") was incorporated in the state of Delaware on November 21, 2019, under the name TBS Capital Management Group Corp. The name was changed to QMIS TBS Capital Group Corp. on February 10, 2020.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">On February 13, 2023, the Company entered into a share exchange agreements (the “Share Exchange Agreements”) with the shareholders of all 1,000,100 outstanding shares of common stock of QMIS Securities Capital SDN BHD (“QSC”), which was incorporated by the Companies Commission of Malaysia on January 13, 2015 under the Companies Act 1965 as a private limited company with the name Multi Securities Capital (M) SDN BHD, which was subsequently changed to QMIS Securities Capital (M) SDN BHD on March 19, 2015. The two QSC shareholders were Dr. Chin Yung Kong, the Company’s Chief Executive Officer, and Chin Hua Fung, Dr. Chin’s son.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Pursuant to the Share Exchange Agreements, Dr. Chin exchanged 700,070 shares of QSC common stock for 700,070 shares of the Company’s common stock. Dr. Chin exchanged 300,030 shares of QSC common stock for 300,030 shares of the Company’s common stock. Accordingly, the Company became the sole shareholder of QSC after the share exchanges.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The share exchanges have been accounted for as a recapitalization between entities under common control since the same controlling shareholders controlled these two entities before and after the transaction. The consolidation of the Company and its subsidiary has been accounted for at historical cost and prepared on the basis as if the transaction had become effective as of the beginning of the earliest period presented in the accompanying consolidated financial statements.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">On November 16, 2015, QSC acquired 99.9% equity ownership interest of QMIS Capital Venture SDN BHD (“QCV”), which was incorporated by the Companies Commission of Malaysia on January 14, 2015, under the private limited company act with the name Diversified Multi Capital Venture (M) SDN BHD. Subsequently, the name was changed to QMIS Capital Venture SDN BHD on March 19, 2015. </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">On October 15, 2015, QSC acquired 69.99% equity ownership interest of QMIS World Trade International SDN BHD (“QWT”), and subsequently on November 27, 2015, QSC acquired anther 0.01% equity ownership interest in QWT, which was incorporated by the Companies Commission of Malaysia on 15 October 2014 under the private limited company act with the name of Santubong Business Trading SDN BHD. Subsequently, the name was changed to QMIS World Trade International SDN BHD on August 7, 2015.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">On December 31, 2021, QSC acquired 100% equity ownership interest of QMIS TBS Capital Group Corporation Limited (“QTBS”), which was incorporated in Hong Kong on September 9, 2013, under the Companies Ordinance as a limited liability company under the name QMIS Huayin Finance Credit Limited. Subsequently, the name was changed to QMIS Ample Luck Financial Group Limited on July 19, 2018, and finally QMIS TBS Capital Group Corporation Limited on June 16, 2020.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">On December 31, 2021, QSC acquired 100% equity ownership interest of QMIS Finance Limited (“QFL”), which was incorporated in Hong Kong on July 20, 2007, under the Companies Ordinance as a limited liability company with the name of Hua Xia Syndicate Financial Credit Limit. Subsequently, the name is changed to QMIS Syndicate Financial Credit Limited on February 21, 2014, and finally to QMIS Finance Limited on March 31, 2016.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">On May 27, 2020, QFL, QSC, and QWT acquired 60%, 20%, and 20%, respectively, equity ownership interest in QMIS Green Energy Berhad (“QGE”), which was incorporated by the Companies Commission of Malaysia on May 27, 2020, under the private limited company act with the name of QMIS Waste Management Group Berhad. Subsequently, the name was changed to QMIS Green Energy Berhad on September 13, 2022.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">On May 8, 2020, QFL, QSC, and QWT acquired 60%, 20%, and 20%, respectively, equity ownership interest in QMIS Biotech Group Berhad (“QBT”), which was incorporated by the Companies Commission of Malaysia on 8 May 2020 under the private limited company act with the name of QMIS Biotech Group Berhad. Subsequently, the name was changed to QMIS Biotech Group Berhad on May 29, 2020.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">On June 22, 2020, QFL incorporated QMIS Investment Bank Limited (“QIB”) by the Labuan Financial Services Authority (LFSA) in Malaysia under the company limited by shares act with the name of QMIS Finance (L) Limited. Subsequently, the name was changed to QMIS Labuan Investment Bank Limited on March 24, 2021, and finally to QMIS Investment Bank Limited on 28 July 2022. QFL owns 100% equity ownership interest in QIB.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">On June 21, 2021, QFL and four other shareholders incorporated QMIS Richwood Blacktech Sdn. Bhd. (“QR”) by the Companies Commission of Malaysia under the private limited company act. QFL owns 51% equity ownership interest in QR.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">On August 3, 2023, QMIS Investment Bank Limited (“QIB”) and Dr. Chin incorporated a company, QMIS Micropay Berhad, in Kuala Lumpur, Malaysia. QIB and Dr. Chin own 60% and 40% of the ownership equity interests of QMIS Micropay Berhad, respectively. QMIS Micropay Berhad plans to carry on the business of electronic payments and transactions but had not engaged in any business operation as of the date of this Quarterly Report.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The Company’s organizational chart after the share exchanges and other transactions discussed above was as follows:</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><img alt="Picture" src="qmis10q_1.jpg" style="width:381.75pt;height:387.75pt;visibility:visible;mso-wrap-style:square"/> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">As of the date of this Report, QMIS USA was a holding company. QSC, QFL, and QTBS work together to provide consultant services. QR is engaged in the business of software development. Beginning from early 2023, QR generates revenue from the usage of an online payment software, QRPay, which is maintained by QR. None of the other subsidiaries were engaged in business operations as of the date of this Report.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Except as set forth in the relevant discussion, QMIS USA, QSC, QFL, QTBS, QR, QIB, QGE, QBT, QWT, and QCV are hereafter referred to collectively as the Company.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Basis of Presentation and Principles of Consolidation</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">These unaudited interim consolidated financial statements do not include all of the information and disclosure required by the U.S. GAAP for complete financial statements. Interim results are not necessarily indicative of results for a full year. In the opinion of management, all adjustments consisting of normal recurring nature considered necessary for a fair presentation of the financial position and the results of operations and cash flows for the interim periods have been included. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2022.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Non-controlling Interest</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Non-controlling interest in the consolidated balance sheets represents the portion of the equity in the subsidiaries not attributable, directly or indirectly, to the Company. The portion of the income or loss applicable to the non-controlling interest in subsidiaries is also separately reflected in the consolidated statements of operations and comprehensive income (loss).</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Foreign Currency Translation</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The accompanying consolidated financial statements are presented in United States Dollar (“US$”), which is the reporting currency of the Company. The functional currency of QSC, QWT, QCV, QGE, QBT, and QR are Malaysian Ringgit (“MYR”). The functional currency of QFL and QTBS are Hong Kong dollar ("HKD"). The functional currency of QMIS USA and QIB is US$.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Each subsidiary of the Company maintains its books and records in its respective functional currency.  Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. The resulting exchange differences are recorded in the statements of operations.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The reporting currency of QMIS USA is the United States Dollar, and the accompanying consolidated financial statements have been expressed in US$. In accordance with ASC Topic 830-30, “Translation of Financial Statements,” assets and liabilities of the Company whose functional currency is not US$ are translated into US$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from the translation of financial statements are recorded as a separate component of accumulated other comprehensive gain (loss) within the statements of changes in shareholders’ deficit.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The exchange rates used for foreign currency translation were as follows:</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">US$1 = HKD</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <table style="border-collapse:collapse;width:361.2pt;margin-left:5.4pt"><tr style="height:7.2pt"><td style="width:79.6pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="border-bottom:1px solid #000000">Period Covered</span></p> </td><td style="width:44.7pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:24.2pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:12.05pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="2" style="width:85.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0"><span style="border-bottom:1px solid #000000">Balance Sheet Date Rates</span></p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:77.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="border-bottom:1px solid #000000">Average Rates</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:79.6pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:44.7pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:24.2pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:12.05pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:25.25pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:60.25pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:77.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:148.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Six months ended June 30, 2023</p> </td><td style="background-color:#D3F0FE;width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:12.05pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="2" style="background-color:#D3F0FE;width:85.5pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">7.8363</span></p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:77.3pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">7.8394</span></p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:148.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Six months ended June 30, 2022</p> </td><td style="width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:12.05pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="2" style="width:85.5pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">7.8472</span></p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:77.3pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">7.8260</span></p> </td></tr> </table> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">US$1 = MYR</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <table style="border-collapse:collapse;width:100%"><tr style="height:7.2pt"><td style="width:79.6pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="border-bottom:1px solid #000000">Period Covered</span></p> </td><td style="width:44.7pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:19.7pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:29.65pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="2" style="width:72pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0"><span style="border-bottom:1px solid #000000">Balance Sheet Date Rates</span></p> </td><td style="width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:77.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="border-bottom:1px solid #000000">Average Rates</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:79.6pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:44.7pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:19.7pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:29.65pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:25.25pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:46.75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:77.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:144pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Six months ended June 30, 2023</p> </td><td style="background-color:#D3F0FE;width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:29.65pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="2" style="background-color:#D3F0FE;width:72pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">4.6650</span></p> </td><td style="background-color:#D3F0FE;width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:77.3pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">4.4559</span></p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:144pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Six months ended June 30, 2022</p> </td><td style="width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:29.65pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="2" style="width:72pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">4.4075</span></p> </td><td style="width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:77.3pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">4.2710</span></p> </td></tr> </table> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Use of Estimates</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates and judgments on historical experience and on various other assumptions and information that are believed to be reasonable under the circumstances. Estimates and assumptions of future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as operating environment changes. Significant estimates and assumptions by management include, among others, estimated life and impairment of long-lived assets, allowance for doubtful accounts, contingencies, and income taxes including the valuation allowance for deferred tax assets.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">While the Company believes that the estimates and assumptions used in the preparation of the financial statements are appropriate, actual results could differ from those estimates. Estimates and assumptions are periodically reviewed, and the effects of revisions are reflected in the financial statements in the period they are determined to be necessary.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Fair Value of Financial Instruments</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements,” which defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosures requirements for fair value measures. Current assets and current liabilities qualified as financial instruments and management believes their carrying amounts are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and if applicable, their current interest rate is equivalent to interest rates currently available. The three levels are defined as follow:</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;margin-left:108pt;text-align:justify"><kbd style="position:absolute;font:10pt stHtmlOvrFontNm;margin-left:-72pt"><b>Level 1:</b></kbd>Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;margin-left:108pt;text-align:justify"><kbd style="position:absolute;font:10pt stHtmlOvrFontNm;margin-left:-72pt"><b>Level 2:</b></kbd>Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><kbd style="position:absolute;font:10pt stHtmlOvrFontNm;margin-left:36pt"><b>Level 3:</b></kbd><kbd style="margin-left:108pt"></kbd>Inputs to the valuation methodology are unobservable and significant to the fair value. </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">As of the balance sheet date, the estimated fair values of the financial instruments approximated their fair values due to the short-term nature of these instruments. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates the hierarchy disclosures each year.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Cash and Cash Equivalents</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Cash and cash equivalents include cash on hand and cash in time deposits, certificates of deposit and all other highly liquid instruments with original maturities of three months or less.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Statements of Cash Flows</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">In accordance with ASC 830-230, “Statement of Cash Flows,” cash flows from the Company’s operations are calculated based upon the functional currency. As a result, amounts related to assets and liabilities reported on the statement of cash flows may not necessarily agree with changes in the corresponding balances on the balance sheet.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Accounts Receivable</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Accounts receivable, net represent the amounts that the Company has an unconditional right to consideration, which are stated at the original amount less an allowance for doubtful receivables. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. The Company usually determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of operations and comprehensive income (loss). Delinquent account balances are written off against the allowance for doubtful accounts after management has determined that the likelihood of collection is remote. In circumstances in which the Company receives payment for accounts receivable that have previously been written off, the Company reverses the allowance and bad debt.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Property, plant and equipment</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Property and equipment primarily consist of cultivation equipment, office equipment, furniture, tools and construction in progress. Cultivation equipment, office equipment, furniture and tools are stated at cost less accumulated depreciation less any provision required for impairment in value. Depreciation is computed using the straight-line method based on the estimated useful lives as follows:</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <table style="border-collapse:collapse;width:287.65pt;margin-left:41.4pt"><tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:159pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Office equipment and furniture</p> </td><td style="background-color:#D3F0FE;width:11.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.2pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;margin-left:6.5pt;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:101.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">10 years</p> </td></tr> <tr style="height:7.2pt"><td style="width:159pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Computers and printers</p> </td><td style="width:11.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.2pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:101.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">2.5 years</p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:159pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Leasehold improvements </p> </td><td style="background-color:#D3F0FE;width:11.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.2pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:101.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">5 years (lease term)</p> </td></tr> </table> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Costs of repairs and maintenance are expensed as incurred and asset improvements are capitalized. The cost and related accumulated depreciation of assets disposed of or retired are removed from the accounts, and any resulting gain or loss is reflected in the consolidated statement of income.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Impairment of long-lived assets</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. No impairment of long-lived assets was recognized for the six months ended June 30, 2023 and 2022.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Operating lease</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The Company’s leases are classified as operating leases in accordance with ASC Topic 842, “Leases.” Under Topic 842, lessees are required to recognize the following for all leases (with the exception of short-term leases) on the commencement date: (i) lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">At the commencement date, the Company recognizes the lease liability at the present value of the lease payments not yet paid, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate for the same term as the underlying lease. The right-of-use asset is recognized initially at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All right-of-use assets are reviewed for impairment. No impairment for right-of-use lease assets incurred in the six months ended June 30, 2023 and 2022.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Concentration of Credit Risk</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Financial instruments the Company holds that are subject to concentrations of credit risk are cash and accounts receivable arising from its normal business activities. The Company places its cash and restricted cash in what it believes to be credit-worthy financial institutions. The Company conducts periodic reviews of the financial condition and payment practices of its customers to minimize collection risk on accounts receivable.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">For the six months ended June 30, 2023 and 2022, customer A accounted for 95.7% and 86.7%, respectively, of the Company’s total revenues.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">For the six months ended June 30, 2023 and 2022, no vendor accounted for more than 10% of the Company’s total purchases.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Revenue Recognition</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The Company adopted ASC 606, “Revenue from Contracts with Customers,” upon inception. Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The Company currently generates its revenue from the following main sources:</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="border-bottom:1px solid #000000"><i>Revenue from consultant services</i></span></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">QSC, QFL, and QTBS work together to provide business consultant services to customers. The revenue is recognized at the point in time when the consultant services promised are performed and accepted by the customers, which is generally when the consultant project is delivered to and accepted by the customer.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="border-bottom:1px solid #000000"><i>Revenue from Software Development</i><i> and maintenance services</i></span></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">QR provides customers with software development and maintenance services pursuant to their specific requirements, which primarily compose of custom application development, supporting, and training. The Company generally recognizes revenue at a point in time when control is transferred to the customers and the Company is entitled to the payment, or when the promised services are delivered and accepted by the customers.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Beginning from early 2023, QR generates revenue from the usage of an online payment software, QRPay, which is maintained by QR. QR recognizes such revenue at a point in time when the related online payment transaction is successfully completed and QR is entitled to the revenue.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Payments for services received in advance in accordance with the contract are recognized as deferred revenues when received.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Cost of Revenues</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Cost of revenues primarily consists of salaries and related expenses (e.g., bonuses, employee benefits, statutory pension contribution, and payroll taxes) for personnel directly involved in the delivery of services and products directly to customers. </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Comprehensive Income (Loss)</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">ASC 220, “Comprehensive Income,” established standards for reporting and display of comprehensive income/loss, its components and accumulated balances. Components of comprehensive income/loss include net income/loss and foreign currency translation adjustments. The component of accumulated other comprehensive income (loss) consisted of foreign currency translation adjustments.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Income Taxes</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">An uncertain tax position is recognized only if it is “more likely than not” that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">QSC, QWT, QCV, QGE, QBT, QIB, and QR operate in Malaysia and are subject to the income tax laws of Malaysia. QFL and QTBS operate in Hong Kong and are subject to the income tax law of Hong Kong. As of June 30, 2023, and December 31, 2022, all of the Company’s tax returns remain open for statutory examination by relevant tax authorities.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The Company accounts for income taxes in interim periods in accordance with FASB ASC 740-270, “Interim Reporting.” The Company has determined an estimated annual effective tax rate. The rate will be revised, if necessary, as of the end of each successive interim period during the Company's fiscal year to its best current estimate. The estimated annual effective tax rate is applied to the year-to-date ordinary income (or loss) at the end of the interim period.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Service taxes</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Service tax is a consumption tax levied by Malaysian tax authorities and is charged on any taxable service income (including digital services) provided in Malaysia by a registered company in carrying on their business. The rate of service tax is 6% ad valorem for all taxable services. A taxable entity is a company that is registered or liable to be registered for service taxes. A company is liable to be registered if the total value of its taxable services for a 12-month period exceeds or is expected to exceed the prescribed registration threshold of MYR500,000 as consultancy, training or coaching services providers and digital and information technology services providers. QSC, QWT, QCV, QGE, QBT, and QR are all subject to these service taxes. Service taxes were recorded with respect to these Malaysian subsidiaries as a deduction against the Company’s gross revenue. </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Earnings per share</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Basic earnings per ordinary share is computed by dividing net earnings attributable to ordinary shareholders by the weighted-average number of ordinary shares outstanding during the period. Diluted earnings per share is computed by dividing net income attributable to ordinary shareholders by the sum of the weighted average number of ordinary share outstanding and of potential ordinary share (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted earnings per share. For the six months ended June 30, 2023 and 2022, the Company had no dilutive stocks.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Related Parties Transactions</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The Company identifies related parties, and accounts for, discloses related party transactions in accordance with ASC 850, “Related Party Disclosures,” and other relevant ASC standards.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered as a related party transaction when there is a transfer of resources or obligations between related parties. Related parties may be individuals or corporate entities.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts of related party transactions due to their related party nature.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Segment Reporting</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">ASC 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s chief operating decision maker organizes segments within the Company for making operating decisions assessing performance and allocating resources. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Management determined the Company’s operations constitute two reportable segments in accordance with ASC 280, business consultant services and software development and maintenance services.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Recently Issued Accounting Pronouncements</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="background-color:#FFFFFF">In August 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. This ASU (1) simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock; (2) revises the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification; and (3) revises the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. For SEC filers, excluding smaller reporting companies, ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. For all other entities, ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Entities should adopt the guidance as of the beginning of the fiscal year of adoption and cannot adopt the guidance in an interim reporting period. The Company is currently evaluating the impact that ASU 2020-06 may have on its consolidated financial statement presentation and related disclosures.</span></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">In March 2023, the FASB issued ASU 2023-01, Lease (Topic 842): Common Control Arrangements, which clarifies the accounting for leasehold improvements associated with leases between entities under common control (hereinafter referred to as common control lease). ASU 2023-01 requires entities to amortize leasehold improvements associated with common control lease over the useful life to the common control group (regardless of the lease term) as long as the lessee controls the use of the underlying asset through a lease, and to account for any remaining leasehold improvements as a transfer between entities under common control through an adjustment to equity when the lessee no longer controls the underlying asset. This ASU will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been made available for issuance. An entity may apply ASU 2023-01 either prospectively or retrospectively. The Company is currently evaluating the impact that the adoption of ASU 2023-01 will have on its consolidated financial statement presentation and disclosures.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Non-controlling Interest</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Non-controlling interest in the consolidated balance sheets represents the portion of the equity in the subsidiaries not attributable, directly or indirectly, to the Company. The portion of the income or loss applicable to the non-controlling interest in subsidiaries is also separately reflected in the consolidated statements of operations and comprehensive income (loss).</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Foreign Currency Translation</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The accompanying consolidated financial statements are presented in United States Dollar (“US$”), which is the reporting currency of the Company. The functional currency of QSC, QWT, QCV, QGE, QBT, and QR are Malaysian Ringgit (“MYR”). The functional currency of QFL and QTBS are Hong Kong dollar ("HKD"). The functional currency of QMIS USA and QIB is US$.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Each subsidiary of the Company maintains its books and records in its respective functional currency.  Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. The resulting exchange differences are recorded in the statements of operations.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The reporting currency of QMIS USA is the United States Dollar, and the accompanying consolidated financial statements have been expressed in US$. In accordance with ASC Topic 830-30, “Translation of Financial Statements,” assets and liabilities of the Company whose functional currency is not US$ are translated into US$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from the translation of financial statements are recorded as a separate component of accumulated other comprehensive gain (loss) within the statements of changes in shareholders’ deficit.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The exchange rates used for foreign currency translation were as follows:</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">US$1 = HKD</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <table style="border-collapse:collapse;width:361.2pt;margin-left:5.4pt"><tr style="height:7.2pt"><td style="width:79.6pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="border-bottom:1px solid #000000">Period Covered</span></p> </td><td style="width:44.7pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:24.2pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:12.05pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="2" style="width:85.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0"><span style="border-bottom:1px solid #000000">Balance Sheet Date Rates</span></p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:77.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="border-bottom:1px solid #000000">Average Rates</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:79.6pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:44.7pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:24.2pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:12.05pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:25.25pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:60.25pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:77.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:148.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Six months ended June 30, 2023</p> </td><td style="background-color:#D3F0FE;width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:12.05pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="2" style="background-color:#D3F0FE;width:85.5pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">7.8363</span></p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:77.3pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">7.8394</span></p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:148.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Six months ended June 30, 2022</p> </td><td style="width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:12.05pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="2" style="width:85.5pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">7.8472</span></p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:77.3pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">7.8260</span></p> </td></tr> </table> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">US$1 = MYR</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <table style="border-collapse:collapse;width:100%"><tr style="height:7.2pt"><td style="width:79.6pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="border-bottom:1px solid #000000">Period Covered</span></p> </td><td style="width:44.7pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:19.7pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:29.65pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="2" style="width:72pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0"><span style="border-bottom:1px solid #000000">Balance Sheet Date Rates</span></p> </td><td style="width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:77.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="border-bottom:1px solid #000000">Average Rates</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:79.6pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:44.7pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:19.7pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:29.65pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:25.25pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:46.75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:77.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:144pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Six months ended June 30, 2023</p> </td><td style="background-color:#D3F0FE;width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:29.65pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="2" style="background-color:#D3F0FE;width:72pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">4.6650</span></p> </td><td style="background-color:#D3F0FE;width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:77.3pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">4.4559</span></p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:144pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Six months ended June 30, 2022</p> </td><td style="width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:29.65pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="2" style="width:72pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">4.4075</span></p> </td><td style="width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:77.3pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">4.2710</span></p> </td></tr> </table> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">US$1 = HKD</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <table style="border-collapse:collapse;width:361.2pt;margin-left:5.4pt"><tr style="height:7.2pt"><td style="width:79.6pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="border-bottom:1px solid #000000">Period Covered</span></p> </td><td style="width:44.7pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:24.2pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:12.05pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="2" style="width:85.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0"><span style="border-bottom:1px solid #000000">Balance Sheet Date Rates</span></p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:77.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="border-bottom:1px solid #000000">Average Rates</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:79.6pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:44.7pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:24.2pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:12.05pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:25.25pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:60.25pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:77.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:148.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Six months ended June 30, 2023</p> </td><td style="background-color:#D3F0FE;width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:12.05pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="2" style="background-color:#D3F0FE;width:85.5pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">7.8363</span></p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:77.3pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">7.8394</span></p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:148.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Six months ended June 30, 2022</p> </td><td style="width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:12.05pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="2" style="width:85.5pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">7.8472</span></p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:77.3pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">7.8260</span></p> </td></tr> </table> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">US$1 = MYR</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <table style="border-collapse:collapse;width:100%"><tr style="height:7.2pt"><td style="width:79.6pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="border-bottom:1px solid #000000">Period Covered</span></p> </td><td style="width:44.7pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:19.7pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:29.65pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="2" style="width:72pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0"><span style="border-bottom:1px solid #000000">Balance Sheet Date Rates</span></p> </td><td style="width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:77.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="border-bottom:1px solid #000000">Average Rates</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:79.6pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:44.7pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:19.7pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:29.65pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:25.25pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:46.75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:77.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:144pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Six months ended June 30, 2023</p> </td><td style="background-color:#D3F0FE;width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:29.65pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="2" style="background-color:#D3F0FE;width:72pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">4.6650</span></p> </td><td style="background-color:#D3F0FE;width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:77.3pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">4.4559</span></p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:144pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Six months ended June 30, 2022</p> </td><td style="width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:29.65pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="2" style="width:72pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">4.4075</span></p> </td><td style="width:24.35pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:77.3pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">4.2710</span></p> </td></tr> </table> 7.8363 7.8394 7.8472 7.8260 4.6650 4.4559 4.4075 4.2710 <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Use of Estimates</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates and judgments on historical experience and on various other assumptions and information that are believed to be reasonable under the circumstances. Estimates and assumptions of future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as operating environment changes. Significant estimates and assumptions by management include, among others, estimated life and impairment of long-lived assets, allowance for doubtful accounts, contingencies, and income taxes including the valuation allowance for deferred tax assets.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">While the Company believes that the estimates and assumptions used in the preparation of the financial statements are appropriate, actual results could differ from those estimates. Estimates and assumptions are periodically reviewed, and the effects of revisions are reflected in the financial statements in the period they are determined to be necessary.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Fair Value of Financial Instruments</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements,” which defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosures requirements for fair value measures. Current assets and current liabilities qualified as financial instruments and management believes their carrying amounts are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and if applicable, their current interest rate is equivalent to interest rates currently available. The three levels are defined as follow:</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;margin-left:108pt;text-align:justify"><kbd style="position:absolute;font:10pt stHtmlOvrFontNm;margin-left:-72pt"><b>Level 1:</b></kbd>Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;margin-left:108pt;text-align:justify"><kbd style="position:absolute;font:10pt stHtmlOvrFontNm;margin-left:-72pt"><b>Level 2:</b></kbd>Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><kbd style="position:absolute;font:10pt stHtmlOvrFontNm;margin-left:36pt"><b>Level 3:</b></kbd><kbd style="margin-left:108pt"></kbd>Inputs to the valuation methodology are unobservable and significant to the fair value. </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">As of the balance sheet date, the estimated fair values of the financial instruments approximated their fair values due to the short-term nature of these instruments. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates the hierarchy disclosures each year.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Cash and Cash Equivalents</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Cash and cash equivalents include cash on hand and cash in time deposits, certificates of deposit and all other highly liquid instruments with original maturities of three months or less.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Statements of Cash Flows</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">In accordance with ASC 830-230, “Statement of Cash Flows,” cash flows from the Company’s operations are calculated based upon the functional currency. As a result, amounts related to assets and liabilities reported on the statement of cash flows may not necessarily agree with changes in the corresponding balances on the balance sheet.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Accounts Receivable</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Accounts receivable, net represent the amounts that the Company has an unconditional right to consideration, which are stated at the original amount less an allowance for doubtful receivables. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. The Company usually determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of operations and comprehensive income (loss). Delinquent account balances are written off against the allowance for doubtful accounts after management has determined that the likelihood of collection is remote. In circumstances in which the Company receives payment for accounts receivable that have previously been written off, the Company reverses the allowance and bad debt.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Property, plant and equipment</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Property and equipment primarily consist of cultivation equipment, office equipment, furniture, tools and construction in progress. Cultivation equipment, office equipment, furniture and tools are stated at cost less accumulated depreciation less any provision required for impairment in value. Depreciation is computed using the straight-line method based on the estimated useful lives as follows:</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <table style="border-collapse:collapse;width:287.65pt;margin-left:41.4pt"><tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:159pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Office equipment and furniture</p> </td><td style="background-color:#D3F0FE;width:11.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.2pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;margin-left:6.5pt;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:101.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">10 years</p> </td></tr> <tr style="height:7.2pt"><td style="width:159pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Computers and printers</p> </td><td style="width:11.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.2pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:101.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">2.5 years</p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:159pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Leasehold improvements </p> </td><td style="background-color:#D3F0FE;width:11.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.2pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:101.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">5 years (lease term)</p> </td></tr> </table> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Costs of repairs and maintenance are expensed as incurred and asset improvements are capitalized. The cost and related accumulated depreciation of assets disposed of or retired are removed from the accounts, and any resulting gain or loss is reflected in the consolidated statement of income.</p> P10Y P2Y6M P5Y <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Impairment of long-lived assets</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. No impairment of long-lived assets was recognized for the six months ended June 30, 2023 and 2022.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Operating lease</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The Company’s leases are classified as operating leases in accordance with ASC Topic 842, “Leases.” Under Topic 842, lessees are required to recognize the following for all leases (with the exception of short-term leases) on the commencement date: (i) lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">At the commencement date, the Company recognizes the lease liability at the present value of the lease payments not yet paid, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate for the same term as the underlying lease. The right-of-use asset is recognized initially at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All right-of-use assets are reviewed for impairment. No impairment for right-of-use lease assets incurred in the six months ended June 30, 2023 and 2022.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Concentration of Credit Risk</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Financial instruments the Company holds that are subject to concentrations of credit risk are cash and accounts receivable arising from its normal business activities. The Company places its cash and restricted cash in what it believes to be credit-worthy financial institutions. The Company conducts periodic reviews of the financial condition and payment practices of its customers to minimize collection risk on accounts receivable.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">For the six months ended June 30, 2023 and 2022, customer A accounted for 95.7% and 86.7%, respectively, of the Company’s total revenues.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">For the six months ended June 30, 2023 and 2022, no vendor accounted for more than 10% of the Company’s total purchases.</p> 0.957 0.867 no vendor accounted for more than 10% of the Company’s total purchases <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Revenue Recognition</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The Company adopted ASC 606, “Revenue from Contracts with Customers,” upon inception. Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The Company currently generates its revenue from the following main sources:</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="border-bottom:1px solid #000000"><i>Revenue from consultant services</i></span></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">QSC, QFL, and QTBS work together to provide business consultant services to customers. The revenue is recognized at the point in time when the consultant services promised are performed and accepted by the customers, which is generally when the consultant project is delivered to and accepted by the customer.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="border-bottom:1px solid #000000"><i>Revenue from Software Development</i><i> and maintenance services</i></span></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">QR provides customers with software development and maintenance services pursuant to their specific requirements, which primarily compose of custom application development, supporting, and training. The Company generally recognizes revenue at a point in time when control is transferred to the customers and the Company is entitled to the payment, or when the promised services are delivered and accepted by the customers.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Beginning from early 2023, QR generates revenue from the usage of an online payment software, QRPay, which is maintained by QR. QR recognizes such revenue at a point in time when the related online payment transaction is successfully completed and QR is entitled to the revenue.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Payments for services received in advance in accordance with the contract are recognized as deferred revenues when received.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Cost of Revenues</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Cost of revenues primarily consists of salaries and related expenses (e.g., bonuses, employee benefits, statutory pension contribution, and payroll taxes) for personnel directly involved in the delivery of services and products directly to customers. </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Comprehensive Income (Loss)</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">ASC 220, “Comprehensive Income,” established standards for reporting and display of comprehensive income/loss, its components and accumulated balances. Components of comprehensive income/loss include net income/loss and foreign currency translation adjustments. The component of accumulated other comprehensive income (loss) consisted of foreign currency translation adjustments.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Income Taxes</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">An uncertain tax position is recognized only if it is “more likely than not” that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">QSC, QWT, QCV, QGE, QBT, QIB, and QR operate in Malaysia and are subject to the income tax laws of Malaysia. QFL and QTBS operate in Hong Kong and are subject to the income tax law of Hong Kong. As of June 30, 2023, and December 31, 2022, all of the Company’s tax returns remain open for statutory examination by relevant tax authorities.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The Company accounts for income taxes in interim periods in accordance with FASB ASC 740-270, “Interim Reporting.” The Company has determined an estimated annual effective tax rate. The rate will be revised, if necessary, as of the end of each successive interim period during the Company's fiscal year to its best current estimate. The estimated annual effective tax rate is applied to the year-to-date ordinary income (or loss) at the end of the interim period.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Service taxes</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Service tax is a consumption tax levied by Malaysian tax authorities and is charged on any taxable service income (including digital services) provided in Malaysia by a registered company in carrying on their business. The rate of service tax is 6% ad valorem for all taxable services. A taxable entity is a company that is registered or liable to be registered for service taxes. A company is liable to be registered if the total value of its taxable services for a 12-month period exceeds or is expected to exceed the prescribed registration threshold of MYR500,000 as consultancy, training or coaching services providers and digital and information technology services providers. QSC, QWT, QCV, QGE, QBT, and QR are all subject to these service taxes. Service taxes were recorded with respect to these Malaysian subsidiaries as a deduction against the Company’s gross revenue. </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Earnings per share</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Basic earnings per ordinary share is computed by dividing net earnings attributable to ordinary shareholders by the weighted-average number of ordinary shares outstanding during the period. Diluted earnings per share is computed by dividing net income attributable to ordinary shareholders by the sum of the weighted average number of ordinary share outstanding and of potential ordinary share (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted earnings per share. For the six months ended June 30, 2023 and 2022, the Company had no dilutive stocks.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Related Parties Transactions</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The Company identifies related parties, and accounts for, discloses related party transactions in accordance with ASC 850, “Related Party Disclosures,” and other relevant ASC standards.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered as a related party transaction when there is a transfer of resources or obligations between related parties. Related parties may be individuals or corporate entities.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts of related party transactions due to their related party nature.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Segment Reporting</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">ASC 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s chief operating decision maker organizes segments within the Company for making operating decisions assessing performance and allocating resources. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Management determined the Company’s operations constitute two reportable segments in accordance with ASC 280, business consultant services and software development and maintenance services.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Recently Issued Accounting Pronouncements</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="background-color:#FFFFFF">In August 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. This ASU (1) simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock; (2) revises the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification; and (3) revises the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. For SEC filers, excluding smaller reporting companies, ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. For all other entities, ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Entities should adopt the guidance as of the beginning of the fiscal year of adoption and cannot adopt the guidance in an interim reporting period. The Company is currently evaluating the impact that ASU 2020-06 may have on its consolidated financial statement presentation and related disclosures.</span></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">In March 2023, the FASB issued ASU 2023-01, Lease (Topic 842): Common Control Arrangements, which clarifies the accounting for leasehold improvements associated with leases between entities under common control (hereinafter referred to as common control lease). ASU 2023-01 requires entities to amortize leasehold improvements associated with common control lease over the useful life to the common control group (regardless of the lease term) as long as the lessee controls the use of the underlying asset through a lease, and to account for any remaining leasehold improvements as a transfer between entities under common control through an adjustment to equity when the lessee no longer controls the underlying asset. This ASU will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been made available for issuance. An entity may apply ASU 2023-01 either prospectively or retrospectively. The Company is currently evaluating the impact that the adoption of ASU 2023-01 will have on its consolidated financial statement presentation and disclosures.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Note 3 - GOING CONCERN</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The financial statements have been prepared “assuming that we will continue as a going concern,” which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The Company incurred a loss of $123,989 and $1,701,359 for the six months ended June 30, 2023 and 2022, respectively. The Company also had working capital deficit of $1,810,863 and $1,725,668 as of June 30, 2023, and December 31, 2022, respectively. In addition, the Company had accumulated deficit of $3,135,389 and $3,013,236 as of June 30, 2023, and December 31, 2022, respectively. These factors among others raise substantial doubt about the ability to continue as a going concern for a reasonable period of time.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan is to obtain such resources by obtaining capital from directors/shareholders sufficient to meet its minimal operating expenses and seeking third party equity and/or debt financing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. These financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.</p> -123989 -1701359 1810863 1725668 -3135389 -3013236 <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Note 4 - ACCOUNTS RECEIVABLE</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Accounts receivable consists of the following:</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <table style="border-collapse:collapse;width:407.5pt;margin-left:5.4pt"><tr style="height:7.2pt"><td style="width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73.1pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.4pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:71.2pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">December 31,</p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:179.1pt" valign="bottom"></td><td style="width:13.4pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:71.2pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:10pt">2023</span></p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:80pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:10pt">2022</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73.1pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.4pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:71.2pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:80pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:179.1pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0">Accounts receivable</p> </td><td style="background-color:#D3F0FE;width:13.4pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:71.2pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           100,039 </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">                    -   </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:179.1pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0">Accounts receivable-related parties*</p> </td><td style="width:13.4pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:71.2pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">                    -   </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">               2,054 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:179.1pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:10pt">Less: Allowance for doubtful accounts</span></p> </td><td style="background-color:#D3F0FE;width:13.4pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:71.2pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">                    -   </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:80pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">                    -   </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:179.1pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:10pt">    Accounts receivable, net</span></p> </td><td style="width:13.4pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="width:71.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           100,039 </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="width:80pt;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">               2,054 </p> </td></tr> </table> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Bad debt expense charged to operations was $0 for the six months ended June 30, 2023 and 2022.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">* Refer to Note 9 (1) - Related party transactions.</p> <table style="border-collapse:collapse;width:407.5pt;margin-left:5.4pt"><tr style="height:7.2pt"><td style="width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73.1pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.4pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:71.2pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">December 31,</p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:179.1pt" valign="bottom"></td><td style="width:13.4pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:71.2pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:10pt">2023</span></p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:80pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:10pt">2022</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73.1pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.4pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:71.2pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:80pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:179.1pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0">Accounts receivable</p> </td><td style="background-color:#D3F0FE;width:13.4pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:71.2pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           100,039 </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">                    -   </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:179.1pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0">Accounts receivable-related parties*</p> </td><td style="width:13.4pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:71.2pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">                    -   </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">               2,054 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:179.1pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:10pt">Less: Allowance for doubtful accounts</span></p> </td><td style="background-color:#D3F0FE;width:13.4pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:71.2pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">                    -   </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:80pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">                    -   </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:179.1pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:10pt">    Accounts receivable, net</span></p> </td><td style="width:13.4pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="width:71.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           100,039 </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="width:80pt;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">               2,054 </p> </td></tr> </table> 100039 0 0 2054 0 0 100039 2054 0 0 <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Note 5 - PROPERTY, PLANT AND EQUIPMENT</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The following is a summary of property, plant and equipment:</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <table style="border-collapse:collapse;width:424.3pt;margin-left:5.4pt"><tr style="height:7.2pt"><td style="width:80.85pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26.25pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:81.9pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75.6pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">December 31,</p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:189pt" valign="bottom"></td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75.6pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:10pt">2023</span></p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:80pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:10pt">2022</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:80.85pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26.25pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:81.9pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75.6pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:80pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:189pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:10pt">Office equipment and furniture</span></p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.9pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75.6pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">               5,902 </p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">               5,017 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:189pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:10pt">Computers and printers</span></p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75.6pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             11,337 </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             12,019 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:189pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:10pt">Leasehold improvements </span></p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.9pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75.6pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             19,283 </p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             20,444 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:189pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">      Total</p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75.6pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             36,522 </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:80pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             37,480 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:189pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:10pt">Less: Accumulated depreciation</span></p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.9pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75.6pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           (33,092)</p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:80pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           (32,923)</p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:189pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:10pt">      Total property, plant and equipment, net</span></p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="width:75.6pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">               3,430 </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="width:80pt;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">               4,557 </p> </td></tr> </table> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Depreciation expense charged to operations was $2,133 and $2,367 for the six months ended June 30, 2023 and 2022, respectively.</p> <table style="border-collapse:collapse;width:424.3pt;margin-left:5.4pt"><tr style="height:7.2pt"><td style="width:80.85pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26.25pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:81.9pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75.6pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">December 31,</p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:189pt" valign="bottom"></td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75.6pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:10pt">2023</span></p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:80pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:10pt">2022</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:80.85pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26.25pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:81.9pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75.6pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:80pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:189pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:10pt">Office equipment and furniture</span></p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.9pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75.6pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">               5,902 </p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">               5,017 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:189pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:10pt">Computers and printers</span></p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75.6pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             11,337 </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             12,019 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:189pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:10pt">Leasehold improvements </span></p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.9pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75.6pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             19,283 </p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             20,444 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:189pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">      Total</p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75.6pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             36,522 </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:80pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             37,480 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:189pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:10pt">Less: Accumulated depreciation</span></p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.9pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75.6pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           (33,092)</p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:80pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           (32,923)</p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:189pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:10pt">      Total property, plant and equipment, net</span></p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="width:75.6pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">               3,430 </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="width:80pt;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">               4,557 </p> </td></tr> </table> 5902 5017 11337 12019 19283 20444 36522 37480 33092 32923 3430 4557 2133 2367 <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Note 6 - ACCOUNTS PAYABLE</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Accounts payable consist of the following:</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <table style="border-collapse:collapse;width:100%"><tr style="height:7.2pt"><td style="width:110.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:35.9pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:58.7pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:35.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:20.05pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:35.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:110.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td><td style="width:21.85pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:110.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">December 31,</p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:205.1pt" valign="bottom"></td><td style="width:35.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:20.05pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:35.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:110.55pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:10pt">2023</span></p> </td><td style="width:21.85pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:110.55pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:10pt">2022</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:110.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:35.9pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:58.7pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:35.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:20.05pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:35.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:110.55pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:21.85pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:110.55pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:205.1pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">Accounts payable</span></p> </td><td style="background-color:#D3F0FE;width:35.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:20.05pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:35.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:110.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">                    -   </p> </td><td style="background-color:#D3F0FE;width:21.85pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:110.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             10,840 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:205.1pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">Accounts payable-related parties*</span></p> </td><td style="width:35.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:20.05pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:35.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:110.55pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             36,441 </p> </td><td style="width:21.85pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:110.55pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             22,726 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:205.1pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">       Total</span></p> </td><td style="background-color:#D3F0FE;width:35.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:20.05pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:35.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:110.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             36,441 </p> </td><td style="background-color:#D3F0FE;width:21.85pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:110.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             33,566 </p> </td></tr> </table> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">* Refer to Note 9 (4) - Related party transaction.</p> <table style="border-collapse:collapse;width:100%"><tr style="height:7.2pt"><td style="width:110.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:35.9pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:58.7pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:35.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:20.05pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:35.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:110.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td><td style="width:21.85pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:110.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">December 31,</p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:205.1pt" valign="bottom"></td><td style="width:35.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:20.05pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:35.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:110.55pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:10pt">2023</span></p> </td><td style="width:21.85pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:110.55pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:10pt">2022</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:110.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:35.9pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:58.7pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:35.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:20.05pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:35.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:110.55pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:21.85pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:110.55pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:205.1pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">Accounts payable</span></p> </td><td style="background-color:#D3F0FE;width:35.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:20.05pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:35.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:110.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">                    -   </p> </td><td style="background-color:#D3F0FE;width:21.85pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:110.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             10,840 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:205.1pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">Accounts payable-related parties*</span></p> </td><td style="width:35.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:20.05pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:35.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:110.55pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             36,441 </p> </td><td style="width:21.85pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:110.55pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             22,726 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:205.1pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">       Total</span></p> </td><td style="background-color:#D3F0FE;width:35.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:20.05pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:35.95pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:110.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             36,441 </p> </td><td style="background-color:#D3F0FE;width:21.85pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:110.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             33,566 </p> </td></tr> </table> 0 10840 36441 22726 36441 33566 <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Note 7 - ACCRUED EXPENSES</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Accrued expenses consist of the following:</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <table style="border-collapse:collapse;width:100%"><tr style="height:7.2pt"><td style="width:106.35pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:92.35pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:94.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td><td style="width:21pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:106.35pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">December 31,</p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:233.25pt" valign="bottom"></td><td style="width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:94.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:10pt">2023</span></p> </td><td style="width:21pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:106.35pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:10pt">2022</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:106.35pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:92.35pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:94.5pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:21pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:106.35pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:233.25pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">Accrued pension and employee benefit</span></p> </td><td style="background-color:#D3F0FE;width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:94.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             31,919 </p> </td><td style="background-color:#D3F0FE;width:21pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:106.35pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             32,651 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:233.25pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">Accrued professional fees</span></p> </td><td style="width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:94.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           211,592 </p> </td><td style="width:21pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:106.35pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           140,001 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:233.25pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">Accrued office expenses</span></p> </td><td style="background-color:#D3F0FE;width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:94.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">               8,174 </p> </td><td style="background-color:#D3F0FE;width:21pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:106.35pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">               8,601 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:233.25pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">       Total</span></p> </td><td style="width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="width:94.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           251,685 </p> </td><td style="width:21pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="width:106.35pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           181,253 </p> </td></tr> </table> <table style="border-collapse:collapse;width:100%"><tr style="height:7.2pt"><td style="width:106.35pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:92.35pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:94.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td><td style="width:21pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:106.35pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">December 31,</p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:233.25pt" valign="bottom"></td><td style="width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:94.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:10pt">2023</span></p> </td><td style="width:21pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:106.35pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:10pt">2022</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:106.35pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:92.35pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:94.5pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:21pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:106.35pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:233.25pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">Accrued pension and employee benefit</span></p> </td><td style="background-color:#D3F0FE;width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:94.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             31,919 </p> </td><td style="background-color:#D3F0FE;width:21pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:106.35pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             32,651 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:233.25pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">Accrued professional fees</span></p> </td><td style="width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:94.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           211,592 </p> </td><td style="width:21pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:106.35pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           140,001 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:233.25pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">Accrued office expenses</span></p> </td><td style="background-color:#D3F0FE;width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:94.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">               8,174 </p> </td><td style="background-color:#D3F0FE;width:21pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:106.35pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">               8,601 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:233.25pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">       Total</span></p> </td><td style="width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:34.55pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="width:94.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           251,685 </p> </td><td style="width:21pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="width:106.35pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           181,253 </p> </td></tr> </table> 31919 32651 211592 140001 8174 8601 251685 181253 <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Note 8 - TAXES PAYABLE</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Taxes payable consist of the following:</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <table style="border-collapse:collapse;width:378pt;margin-left:5.4pt"><tr style="height:7.2pt"><td style="width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:42.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:12pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:74.2pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">December 31,</p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:148.5pt" valign="bottom"></td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:12pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:10pt">2023</span></p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:74.2pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:10pt">2022</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:42.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:12pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75.5pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:74.2pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:148.5pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:10pt">Malaysia income taxes payable</span></p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:12pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:75.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             76,552 </p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:74.2pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           115,947 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:148.5pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:10pt">Malaysia services taxes payable</span></p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:12pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           161,004 </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:74.2pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           170,750 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:148.5pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:10pt">Hong Kong income taxes payable</span></p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:12pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           746,440 </p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:74.2pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           730,479 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:148.5pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:10pt">       Total</span></p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:12pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="width:75.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           983,996 </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="width:74.2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">        1,017,176 </p> </td></tr> </table> <table style="border-collapse:collapse;width:378pt;margin-left:5.4pt"><tr style="height:7.2pt"><td style="width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:42.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:12pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:74.2pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">December 31,</p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:148.5pt" valign="bottom"></td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:12pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:10pt">2023</span></p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:74.2pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:10pt">2022</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:42.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:12pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75.5pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:74.2pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:148.5pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:10pt">Malaysia income taxes payable</span></p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:12pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:75.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             76,552 </p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:74.2pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           115,947 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:148.5pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:10pt">Malaysia services taxes payable</span></p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:12pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           161,004 </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:74.2pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           170,750 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:148.5pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:10pt">Hong Kong income taxes payable</span></p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:12pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           746,440 </p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:74.2pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           730,479 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:148.5pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:10pt">       Total</span></p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:12pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="width:75.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           983,996 </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="width:74.2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">        1,017,176 </p> </td></tr> </table> 76552 115947 161004 170750 746440 730479 983996 1017176 <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Note 9 - RELATED PARTY TRANSACTIONS</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The Company had transactions with the following related parties:</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <table style="border-collapse:collapse;width:534.6pt;margin-left:5.4pt"><tr style="height:7.2pt"><td colspan="2" style="width:164.3pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Name of Related Party</b></p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="3" style="width:268.7pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Nature of Relationship</b></p> </td><td style="width:75.6pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:153pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:180.15pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:59.25pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:29.3pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75.6pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:153pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Dr. Yung Kong Chin</p> </td><td style="background-color:#D3F0FE;width:11.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:180.15pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">CEO and a director of the Company.</p> </td><td style="background-color:#D3F0FE;width:59.25pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:29.3pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75.6pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:153pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Mr. Hua Fung Chin</p> </td><td style="width:11.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="3" style="width:268.7pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">A director of the Company and son of Mr. Yung Kong Chin.</p> </td><td style="width:75.6pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:153pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Mr. Ting Teck Sheng</p> </td><td style="background-color:#D3F0FE;width:11.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:180.15pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">A director of the Company.</p> </td><td style="background-color:#D3F0FE;width:59.25pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:29.3pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75.6pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:153pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Ms. Tingting Gu</p> </td><td style="width:11.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:180.15pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">A director of the Company.</p> </td><td style="width:59.25pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:29.3pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75.6pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:153pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Mr. Kar Yee Ong</p> </td><td style="background-color:#D3F0FE;width:11.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:180.15pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">CFO and a director of the Company.</p> </td><td style="background-color:#D3F0FE;width:59.25pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:29.3pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75.6pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="2" style="width:164.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Richwood Ventures Berhad</p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="4" style="width:344.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">A Malaysia company of which Mr. Ting Teck Sheng is a director.</p> </td></tr> <tr style="height:7.2pt"><td colspan="2" style="background-color:#D3F0FE;width:164.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Panpay Holdings SDN BHD</p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="4" style="background-color:#D3F0FE;width:344.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">A Malaysia company of which Mr. Ting Teck Sheng is a director.</p> </td></tr> <tr style="height:7.2pt"><td colspan="2" style="width:164.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Pantop Venture Capital SDN BHD</p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="4" style="width:344.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">A Malaysia company which owns 40% of QMIS Richwood Blacktech SDN BHD</p> </td></tr> <tr style="height:7.2pt"><td colspan="2" style="background-color:#D3F0FE;width:164.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Pantop Millennium SDN BHD</p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="4" style="background-color:#D3F0FE;width:344.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">A Malaysia company which owns 3% of QMIS Richwood Blacktech SDN BHD</p> </td></tr> <tr style="height:7.2pt"><td colspan="2" style="width:164.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">QMIS Financial Group Limited</p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="4" style="width:344.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">A Hong Kong company of which Mr. Yung Kong Chin is a director.</p> </td></tr> <tr style="height:7.2pt"><td colspan="2" style="background-color:#D3F0FE;width:164.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">QMIS Asset Management Limited</p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="4" style="background-color:#D3F0FE;width:344.3pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">A Hong Kong company of which Ms. Tingting Gu is a director.</p> </td></tr> </table> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><kbd style="position:absolute;font:10pt stHtmlOvrFontNm;margin-left:0pt">(1)</kbd><kbd style="margin-left:36pt"></kbd>Software development and maintenance services provided to Richwood Ventures Berhad and Panpay Holdings SDN BHD </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">QMIS Richwood Blacktech SDN BHD ("QR") provides software development and maintenance services to Richwood Ventures Berhad and Panpay Holdings SDN BHD. In the six months ended June 30, 2023, QR generated revenue of $10,323 and $20,647 from Richwood Ventures Berhad and Panpay Holdings SDN BHD, respectively. In the six months ended March 31, 2022, QR generated revenue of $28,799 and $67,198 from Richwood Ventures Berhad and Panpay Holdings SDN BHD, respectively. As of June 30, 2023, accounts receivable from Richwood Ventures Berhad was $0, and deferred revenue from Panpay Holdings SDN BHD amounted to $0. As of December 31, 2022, accounts receivable from Richwood Ventures Berhad was $2,054, and deferred revenue from Panpay Holdings SDN BHD amounted to $1,500.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><kbd style="position:absolute;font:10pt stHtmlOvrFontNm;margin-left:0pt">(2)</kbd><kbd style="margin-left:36pt"></kbd>Management fees paid to QMIS Financial Group Limited </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">QMIS Finance Limited ("QFL") and QMIS TBS Capital Group Corp. ("QTBS") paid management fees as needed to QMIS Financial Group Limited for business advice and general and administrative services, such as office space and bookkeeping. The management fees amounted to $385,166 and $820,686 in the six months ended June 30, 2023 and 2022, respectively. There was no outstanding balance for accounts payable to QMIS Finance Group Limited as of June 30, 2023, and December 31, 2022, respectively.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><kbd style="position:absolute;font:10pt stHtmlOvrFontNm;margin-left:0pt">(3)</kbd><kbd style="margin-left:36pt"></kbd>Advisory fees paid to QMIS Asset Management Limited </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">QFL and QTBS paid advisory fees to QMIS Asset Management Limited for business advice as needed. The advisory fees amounted to $7,205 and $0 in the six months ended June 31, 2023 and 2022, respectively. There was no outstanding balance for accounts payable to QMIS Asset Management Limited as of June 30, 2023, and December 31, 2022, respectively.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><kbd style="position:absolute;font:10pt stHtmlOvrFontNm;margin-left:0pt">(4)</kbd><kbd style="margin-left:36pt"></kbd>Accounts payable to Pantop Millennium SND BHD </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Pantop Millennium SND BHD has provided operating support and general and administrative services, such as office space and bookkeeping, to QR since QR’s inception in June 2021. The amount of the services was $20,198 and $14,048 for the six months ended June 31, 2023 and 2022, respectively. The accounts payable to Pantop Millennium SND BHD amounted to $36,441 and $22,726 as of June 30, 2023, and December 31, 2022, respectively.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><kbd style="position:absolute;font:10pt stHtmlOvrFontNm;margin-left:0pt">(5)</kbd><kbd style="margin-left:36pt"></kbd>Due to related parties </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Because QR did not have a bank account until November 2022, Pantop Venture Capital SDN BHD has traditionally paid QR's expenses for its operation. These advanced payments are unsecured, non-interest bearing and payable on demand. There are no written agreements for these advances.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Due to lack of cash resources, Dr. Yung Kong Chin has financed the Company's operations. From time to time, Dr. Chin has lent funds to the Company to support its operations. These loans are unsecured, non-interest bearing and payable on demand. There are no written agreements for these advances.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Dr. Yung Kong Chin, Mr. Hua Fung Chin, Mr. Kar Yee Ong, and Ms. Tingting Gu lead the consultant service team which provides consultant services to customers. Their compensation was included in the costs of consultant services, and was accrued if they were not paid as of the balance sheet date.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Due to related parties consists of the following:</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <table style="border-collapse:collapse;width:388.3pt;margin-left:5.4pt"><tr style="height:7.2pt"><td style="width:107pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:20pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">December 31,</p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:153pt" valign="bottom"></td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:10pt">2023</span></p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:80pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:10pt">2022</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:107pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:20pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:80pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:153pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0">Dr. Yung Kong Chin</p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:14.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:73pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           680,186 </p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           610,557 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:153pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:10pt">Pantop Venture Capital SDN BHD</span></p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             69,434 </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             64,817 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:153pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0">Ms. Tingting Gu</p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:14.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:73pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">               6,471 </p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">                    -   </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:153pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0">Mr. Kar Yee Ong</p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">               5,104 </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:80pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">                    -   </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:153pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:10pt">       Total</span></p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:14.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:73pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           761,195 </p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:80pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           675,374 </p> </td></tr> </table> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><kbd style="position:absolute;font:10pt stHtmlOvrFontNm;margin-left:0pt">(6)</kbd><kbd style="margin-left:36pt"></kbd>Compensation paid to directors </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">As noted above, Dr. Yung Kong Chin, Mr. Hua Fung Chin, Mr. Kar Yee Ong, and Ms. Tingting Gu lead the consultant service team which provides consultant services to customers. Their compensation was included in the costs of consultant services.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Compensation paid to directors consists of the following:</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <table style="border-collapse:collapse;width:371.05pt;margin-left:5.4pt"><tr style="height:7.2pt"><td style="width:107pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.85pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="3" style="width:35.7pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:30.75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="3" style="width:185.75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">For the Six Months Ended June 30,</p> </td></tr> <tr style="height:7.2pt"><td colspan="4" style="width:142.75pt" valign="bottom"></td><td style="width:11.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:30.75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:76.8pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">2023</p> </td><td style="width:32.15pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:76.8pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">2022</p> </td></tr> <tr style="height:7.2pt"><td style="width:107pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.85pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:12pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:30.75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:76.8pt;border-top:0.5pt solid #000000" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:32.15pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:76.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="4" style="background-color:#D3F0FE;width:142.75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Dr. Yung Kong Chin</p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-indent:10pt;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:30.75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-indent:10pt;text-align:justify"> $ </p> </td><td style="background-color:#D3F0FE;width:76.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           253,201 </p> </td><td style="background-color:#D3F0FE;width:32.15pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-indent:10pt;text-align:justify"> $ </p> </td><td style="background-color:#D3F0FE;width:76.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           417,314 </p> </td></tr> <tr style="height:7.2pt"><td colspan="4" style="width:142.75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Mr. Hua Fung Chin</p> </td><td style="width:11.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-indent:10pt;text-align:justify"> </p> </td><td style="width:30.75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:76.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             35,648 </p> </td><td style="width:32.15pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:76.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             33,327 </p> </td></tr> <tr style="height:7.2pt"><td colspan="4" style="background-color:#D3F0FE;width:142.75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Ms. Tingting Gu</p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-indent:10pt;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:30.75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:76.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">               5,102 </p> </td><td style="background-color:#D3F0FE;width:32.15pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:76.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">                    -   </p> </td></tr> <tr style="height:7.2pt"><td colspan="4" style="width:142.75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Mr. Kar Yee Ong</p> </td><td style="width:11.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-indent:10pt;text-align:justify"> </p> </td><td style="width:30.75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:76.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">               5,102 </p> </td><td style="width:32.15pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:76.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">                    -   </p> </td></tr> <tr style="height:7.2pt"><td colspan="4" style="background-color:#D3F0FE;width:142.75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Total</p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-indent:10pt;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:30.75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-indent:10pt;text-align:justify"> $ </p> </td><td style="background-color:#D3F0FE;width:76.8pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           299,053 </p> </td><td style="background-color:#D3F0FE;width:32.15pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-indent:10pt;text-align:justify"> $ </p> </td><td style="background-color:#D3F0FE;width:76.8pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           450,641 </p> </td></tr> </table> 385166 820686 20198 14048 36441 22726 <table style="border-collapse:collapse;width:388.3pt;margin-left:5.4pt"><tr style="height:7.2pt"><td style="width:107pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:20pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">December 31,</p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:153pt" valign="bottom"></td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:10pt">2023</span></p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:80pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:10pt">2022</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:107pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:20pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:80pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:153pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0">Dr. Yung Kong Chin</p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:14.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:73pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           680,186 </p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           610,557 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:153pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:10pt">Pantop Venture Capital SDN BHD</span></p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             69,434 </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             64,817 </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:153pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0">Ms. Tingting Gu</p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:14.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:73pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">               6,471 </p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:80pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">                    -   </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:153pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0">Mr. Kar Yee Ong</p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">               5,104 </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:80pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">                    -   </p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="background-color:#D3F0FE;width:153pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:10pt">       Total</span></p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:14.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:73pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           761,195 </p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:80pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           675,374 </p> </td></tr> </table> 680186 610557 69434 64817 6471 0 5104 0 761195 675374 <table style="border-collapse:collapse;width:371.05pt;margin-left:5.4pt"><tr style="height:7.2pt"><td style="width:107pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.85pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="3" style="width:35.7pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:30.75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="3" style="width:185.75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">For the Six Months Ended June 30,</p> </td></tr> <tr style="height:7.2pt"><td colspan="4" style="width:142.75pt" valign="bottom"></td><td style="width:11.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:30.75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:76.8pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">2023</p> </td><td style="width:32.15pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:76.8pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">2022</p> </td></tr> <tr style="height:7.2pt"><td style="width:107pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.85pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:12pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:30.75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:76.8pt;border-top:0.5pt solid #000000" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:32.15pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:76.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="4" style="background-color:#D3F0FE;width:142.75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Dr. Yung Kong Chin</p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-indent:10pt;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:30.75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-indent:10pt;text-align:justify"> $ </p> </td><td style="background-color:#D3F0FE;width:76.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           253,201 </p> </td><td style="background-color:#D3F0FE;width:32.15pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-indent:10pt;text-align:justify"> $ </p> </td><td style="background-color:#D3F0FE;width:76.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           417,314 </p> </td></tr> <tr style="height:7.2pt"><td colspan="4" style="width:142.75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Mr. Hua Fung Chin</p> </td><td style="width:11.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-indent:10pt;text-align:justify"> </p> </td><td style="width:30.75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:76.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             35,648 </p> </td><td style="width:32.15pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:76.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             33,327 </p> </td></tr> <tr style="height:7.2pt"><td colspan="4" style="background-color:#D3F0FE;width:142.75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Ms. Tingting Gu</p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-indent:10pt;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:30.75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:76.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">               5,102 </p> </td><td style="background-color:#D3F0FE;width:32.15pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:76.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">                    -   </p> </td></tr> <tr style="height:7.2pt"><td colspan="4" style="width:142.75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Mr. Kar Yee Ong</p> </td><td style="width:11.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-indent:10pt;text-align:justify"> </p> </td><td style="width:30.75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:76.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">               5,102 </p> </td><td style="width:32.15pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:76.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">                    -   </p> </td></tr> <tr style="height:7.2pt"><td colspan="4" style="background-color:#D3F0FE;width:142.75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Total</p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-indent:10pt;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:30.75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-indent:10pt;text-align:justify"> $ </p> </td><td style="background-color:#D3F0FE;width:76.8pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           299,053 </p> </td><td style="background-color:#D3F0FE;width:32.15pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-indent:10pt;text-align:justify"> $ </p> </td><td style="background-color:#D3F0FE;width:76.8pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           450,641 </p> </td></tr> </table> 253201 417314 35648 33327 5102 0 5102 0 299053 450641 <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Note 10 - LEASES</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The Company has operating leases for corporate offices, employees’ accommodations, and office equipment. These leases have initial lease terms of 12 months to 5 years. The Company has elected not to recognize lease assets and liabilities for leases with an initial term of 12 months or less.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The discount rate used to calculate present value is the incremental borrowing rate or, if available, the rate implicit in the lease. The Company determines the incremental borrowing rates for these leases based primarily on lease terms, which were 8% in Malaysia.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The components of lease costs, lease term and discount rate with respect of operating leases with an initial term of more than 12 months are as follows:</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <table style="border-collapse:collapse;width:457.3pt;margin-left:5.4pt"><tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="4" style="width:154.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="3" style="width:176pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">For the Six Months Ended</p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:27.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:27.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">2023</p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:75pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">2022</p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:27.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:111pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Operating lease cost</p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:27.5pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           12,361 </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           12,497 </p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:27.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:27.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">December 31,</p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:27.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">2023</p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:75pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">2022</p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:27.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="5" style="background-color:#D3F0FE;width:265.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Weighted Average Remaining Lease Term - Operating leases</p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">1.25 years</p> </td><td style="background-color:#D3F0FE;width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">0.58 years</p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:27.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="5" style="background-color:#D3F0FE;width:265.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Weighted Average Discount Rate - Operating leases</p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">8.00%</span></p> </td><td style="background-color:#D3F0FE;width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">8.00%</span></p> </td></tr> </table> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">As of June 30, 2023, future minimum lease payments under the non-cancelable lease agreements are as follows:</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <table style="border-collapse:collapse;width:279.1pt;margin-left:5.4pt"><tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.1pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.1pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">2023</p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.1pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:111pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">2023</p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.9pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.1pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">$</span></p> </td><td style="background-color:#D3F0FE;width:75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">                887 </p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">2024</p> </td><td style="width:11.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.1pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">                116 </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:111pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Total lease payments</p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.9pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.1pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt;border-top:0.5pt solid #000000" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             1,003 </p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Less: imputed interest</p> </td><td style="width:11.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.1pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">                 (29)</p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:111pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Total lease liabilities</p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.9pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.1pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">                974 </p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Less: current portion</p> </td><td style="width:11.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.1pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-bottom:3px double #000000" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">                860 </p> </td></tr> <tr style="height:7.2pt"><td colspan="2" style="background-color:#D3F0FE;width:122.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Non-current lease liabilities</p> </td><td style="background-color:#D3F0FE;width:11.9pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.1pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:75pt;border-top:3px double #000000;border-bottom:3px double #000000" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">                114 </span></p> </td></tr> </table> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <table style="border-collapse:collapse;width:457.3pt;margin-left:5.4pt"><tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="4" style="width:154.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="3" style="width:176pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">For the Six Months Ended</p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:27.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:27.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">2023</p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:75pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">2022</p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:27.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:111pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Operating lease cost</p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:27.5pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           12,361 </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">           12,497 </p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:27.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:27.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">December 31,</p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:27.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">2023</p> </td><td style="width:26pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:75pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">2022</p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:27.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="5" style="background-color:#D3F0FE;width:265.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Weighted Average Remaining Lease Term - Operating leases</p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">1.25 years</p> </td><td style="background-color:#D3F0FE;width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">0.58 years</p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:27.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="5" style="background-color:#D3F0FE;width:265.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Weighted Average Discount Rate - Operating leases</p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">8.00%</span></p> </td><td style="background-color:#D3F0FE;width:26pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">8.00%</span></p> </td></tr> </table> 12361 12497 P1Y3M P0Y6M29D 0.0800 0.0800 <table style="border-collapse:collapse;width:279.1pt;margin-left:5.4pt"><tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.1pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.1pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:center">2023</p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.1pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:111pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">2023</p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.9pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.1pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">$</span></p> </td><td style="background-color:#D3F0FE;width:75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">                887 </p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">2024</p> </td><td style="width:11.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.1pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">                116 </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:111pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Total lease payments</p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.9pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.1pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt;border-top:0.5pt solid #000000" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">             1,003 </p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Less: imputed interest</p> </td><td style="width:11.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.1pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">                 (29)</p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:111pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Total lease liabilities</p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.9pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.1pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">                974 </p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Less: current portion</p> </td><td style="width:11.8pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.1pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.8pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-bottom:3px double #000000" valign="top"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">                860 </p> </td></tr> <tr style="height:7.2pt"><td colspan="2" style="background-color:#D3F0FE;width:122.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Non-current lease liabilities</p> </td><td style="background-color:#D3F0FE;width:11.9pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.1pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.8pt" valign="bottom"><p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:75pt;border-top:3px double #000000;border-bottom:3px double #000000" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:10pt">                114 </span></p> </td></tr> </table> 887 116 1003 -29 974 860 114 <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Note 11 - INCOME TAXES</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="border-bottom:1px solid #000000"><b>United States</b></span></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">QMIS USA is a company registered in the State of Delaware incorporated in November 21, 2019, and is subject to federal income tax at 21% statutory tax rate with respect to the profit generated from the United States.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="border-bottom:1px solid #000000"><b>Malaysia</b></span></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">QMIS Securities Capital (M) SDN BHD (“QSC”); QMIS World Trade International SDN BHD (“QWT”) and QMIS Capital Venture SDN BHD (subsidiaries of QSC); QMIS Green Energy Berhad and QMIS Biotech Group Berhad (jointly owned by QSC, QMIS Finance Limited (“QFL”), and QWT); and QMIS Investment Bank Limited, and QMIS Richwood Blacktech SDN BHD (owned 100% and 51%, respectively, by QFL) were incorporated in Malaysia, and accordingly are governed by the income tax laws of Malaysia. The income tax provision in respect of operations in Malaysia is calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations, and practices. Under the Income Tax Act of Malaysia, enterprises incorporated in Malaysia are usually subject to a unified 24% enterprise income tax rate while prefer, tax holidays, and tax exemptions may be granted on a case-by-case basis. The tax rate for small and medium sized companies (generally companies incorporated in Malaysia with paid-in capital of MYR2,500,000 or less, and gross income of not more than MYR50 million) is 17% for the first MYR600,000 (or approximately $150,000) taxable income, with the remaining balance being taxed at the 24% rate.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="border-bottom:1px solid #000000"><b>Hong Kong</b></span></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">QMIS Finance Limited and QMIS TBS Capital Group Corp. were incorporated in Hong Kong, and accordingly are subject to income tax at 8.25% on the first HKD 2,000,000 profit and 16.5% on the remaining profits arising in or derived from Hong Kong.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The components of the income tax provision were as follows:</p> <p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"></p> <table style="border-collapse:collapse;width:358.9pt;margin-left:5.4pt"><tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="top"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="3" style="width:34.1pt" valign="top"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="3" style="width:176pt" valign="top"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:center">For the Six Months ended</p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td><td style="width:28.4pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"></td><td style="width:11.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73.8pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:9.5pt">2023</span></p> </td><td style="width:28.4pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:73.8pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:9.5pt">2022</span></p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:111pt" valign="top"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify">Current tax provision:</p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.9pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:73.8pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:28.4pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:73.8pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:9.5pt">United States</span></p> </td><td style="width:11.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td><td style="width:28.4pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:111pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:9.5pt">Malaysia</span></p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.9pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td><td style="background-color:#D3F0FE;width:28.4pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:9.5pt">Hong Kong</span></p> </td><td style="width:11.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">           19,202 </p> </td><td style="width:28.4pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">         109,994 </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:111pt" valign="top"></td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.9pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:73.8pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">           19,202 </p> </td><td style="background-color:#D3F0FE;width:28.4pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:73.8pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">         109,994 </p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify">Deferred tax provision:</p> </td><td style="width:11.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:28.4pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:111pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:9.5pt">United States</span></p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.9pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td><td style="background-color:#D3F0FE;width:28.4pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:9.5pt">Malaysia</span></p> </td><td style="width:11.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td><td style="width:28.4pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:111pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:9.5pt">Hong Kong</span></p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.9pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td><td style="background-color:#D3F0FE;width:28.4pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"></td><td style="width:11.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73.8pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td><td style="width:28.4pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73.8pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:111pt" valign="top"></td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.9pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:73.8pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">           19,202 </p> </td><td style="background-color:#D3F0FE;width:28.4pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:73.8pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">         109,994 </p> </td></tr> </table> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Accounting for Uncertainty in Income Taxes</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The local tax authority conducts periodic and ad hoc tax filing reviews on business enterprises after those enterprises complete their relevant tax filings. Therefore, the Company’s tax filings are subject to examination. It is therefore uncertain as to whether the local tax authority may take different views about the Company’s tax filings, which may lead to additional tax liabilities.</p> 0.21 0.24 150000 0.0825 0.165 <p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"></p> <table style="border-collapse:collapse;width:358.9pt;margin-left:5.4pt"><tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="top"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="3" style="width:34.1pt" valign="top"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="top"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="3" style="width:176pt" valign="top"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:center">For the Six Months ended</p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td><td style="width:28.4pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"></td><td style="width:11.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73.8pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:9.5pt">2023</span></p> </td><td style="width:28.4pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:73.8pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:9.5pt">2022</span></p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:111pt" valign="top"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify">Current tax provision:</p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.9pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:73.8pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:28.4pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:73.8pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:9.5pt">United States</span></p> </td><td style="width:11.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td><td style="width:28.4pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:111pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:9.5pt">Malaysia</span></p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.9pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td><td style="background-color:#D3F0FE;width:28.4pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:9.5pt">Hong Kong</span></p> </td><td style="width:11.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">           19,202 </p> </td><td style="width:28.4pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">         109,994 </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:111pt" valign="top"></td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.9pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:73.8pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">           19,202 </p> </td><td style="background-color:#D3F0FE;width:28.4pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:73.8pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">         109,994 </p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify">Deferred tax provision:</p> </td><td style="width:11.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:28.4pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:111pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:9.5pt">United States</span></p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.9pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td><td style="background-color:#D3F0FE;width:28.4pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:9.5pt">Malaysia</span></p> </td><td style="width:11.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td><td style="width:28.4pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:111pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:9.5pt">Hong Kong</span></p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.9pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td><td style="background-color:#D3F0FE;width:28.4pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:73.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td></tr> <tr style="height:7.2pt"><td style="width:111pt" valign="top"></td><td style="width:11.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.9pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73.8pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td><td style="width:28.4pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:73.8pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:111pt" valign="top"></td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.9pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.1pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:73.8pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">           19,202 </p> </td><td style="background-color:#D3F0FE;width:28.4pt" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:73.8pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9.5pt stHtmlOvrFontNm;margin:0;text-align:right">         109,994 </p> </td></tr> </table> 0 0 0 0 19202 109994 19202 109994 0 0 0 0 0 0 0 0 19202 109994 <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Note 12 - SEGMENT REPORTING</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Revenue by service categories</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <table style="border-collapse:collapse;width:423.6pt;margin-left:5.4pt"><tr style="height:7.2pt"><td style="width:23pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:23pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:23pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:111pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="3" style="width:176pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:center">For the Six Months Ended</p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:23pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:23pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:111pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="4" style="width:52.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="7" style="width:209.3pt" valign="top"></td><td style="width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:9pt">2023</span></p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:75pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:9pt">2022</span></p> </td></tr> <tr style="height:7.2pt"><td colspan="2" style="background-color:#D3F0FE;width:46pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0">Revenue</p> </td><td style="background-color:#D3F0FE;width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:111pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify">Consultant services</p> </td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">      1,096,284 </p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">$</p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">         630,040 </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:23pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="background-color:#D3F0FE;width:209.3pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:9pt">Software development and maintenance services</span></p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">           49,055 </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">           95,997 </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="top"></td><td style="width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">      1,145,339 </p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">         726,037 </p> </td></tr> <tr style="height:7.2pt"><td colspan="4" style="background-color:#D3F0FE;width:180pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0">Operating costs</p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0">Consultant services</p> </td><td style="width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">      1,199,119 </p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">      2,235,400 </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:23pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="background-color:#D3F0FE;width:209.3pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:9pt">Software development and maintenance services</span></p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">           51,815 </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">           89,495 </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"></td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">      1,250,934 </p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">      2,324,895 </p> </td></tr> <tr style="height:7.2pt"><td colspan="4" style="background-color:#D3F0FE;width:180pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0">Income (loss) from operations</p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify">Consultant services</p> </td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">        (102,835)</p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">     (1,605,360)</p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="background-color:#D3F0FE;width:209.3pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:9pt">Software development and maintenance services</span></p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">            (2,760)</p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">             6,502 </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"></td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">        (105,595)</p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">     (1,598,858)</p> </td></tr> <tr style="height:7.2pt"><td colspan="4" style="background-color:#D3F0FE;width:180pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0">Other income (expenses)</p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify">Consultant services</p> </td><td style="width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">                808 </p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">             7,493 </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:23pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="background-color:#D3F0FE;width:209.3pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:9pt">Software development and maintenance services</span></p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"></td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">                808 </p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">             7,493 </p> </td></tr> <tr style="height:7.2pt"><td colspan="5" style="background-color:#D3F0FE;width:193.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0">Income (loss) before income tax expense</p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0">Consultant services</p> </td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">        (102,027)</p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">     (1,597,867)</p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="background-color:#D3F0FE;width:209.3pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:9pt">Software development and maintenance services</span></p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">            (2,760)</p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">             6,502 </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"></td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">        (104,787)</p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">     (1,591,365)</p> </td></tr> <tr style="height:7.2pt"><td colspan="4" style="background-color:#D3F0FE;width:180pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0">Income tax expense</p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify">Consultant services</p> </td><td style="width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">           19,202 </p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">         109,994 </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:23pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="background-color:#D3F0FE;width:209.3pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:9pt">Software development and maintenance services</span></p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="top"></td><td style="width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">           19,202 </p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">         109,994 </p> </td></tr> <tr style="height:7.2pt"><td colspan="4" style="background-color:#D3F0FE;width:180pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0">Net income (loss)</p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify">Consultant services</p> </td><td style="width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">        (121,229)</p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">     (1,707,861)</p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="background-color:#D3F0FE;width:209.3pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:9pt">Software development and maintenance services</span></p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">            (2,760)</p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">             6,502 </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"></td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="width:75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">        (123,989)</p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">$</p> </td><td style="width:75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">     (1,701,359)</p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:111pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="4" style="width:180pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0">Capital expenditure</p> </td><td style="width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="width:11.8pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="background-color:#D3F0FE;width:209.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0">Consultant services</p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">$</p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">                363 </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:9pt">Software development and maintenance services</span></p> </td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">             1,224 </p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:23pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="background-color:#D3F0FE;width:209.3pt" valign="bottom"></td><td style="background-color:#D3F0FE;width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">             1,224 </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">$</p> </td><td style="background-color:#D3F0FE;width:75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">                363 </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:111pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> </table> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <table style="border-collapse:collapse;width:423.6pt;margin-left:5.4pt"><tr style="height:7.2pt"><td style="width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:111pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:center">December 31,</p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="3" style="width:157pt" valign="bottom"></td><td style="width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:9pt">2023</span></p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:75pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:9pt">2022</span></p> </td></tr> <tr style="height:7.2pt"><td colspan="4" style="background-color:#D3F0FE;width:180pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify">Total assets</p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify">Consultant services</p> </td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">           49,535 </p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">$</p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">           27,973 </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="7" style="background-color:#D3F0FE;width:209.3pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:9pt">Software development and maintenance services</span></p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">           13,703 </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">             6,543 </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify">Other</p> </td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">169,770 </p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">180,839 </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:23pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="7" style="background-color:#D3F0FE;width:209.3pt" valign="bottom"></td><td style="background-color:#D3F0FE;width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">         233,008 </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">$</p> </td><td style="background-color:#D3F0FE;width:75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">         215,355 </p> </td></tr> </table> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">Revenue by service categories</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <table style="border-collapse:collapse;width:423.6pt;margin-left:5.4pt"><tr style="height:7.2pt"><td style="width:23pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:23pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:23pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:111pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="3" style="width:176pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:center">For the Six Months Ended</p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:23pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:23pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:111pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="4" style="width:52.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="7" style="width:209.3pt" valign="top"></td><td style="width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:9pt">2023</span></p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:75pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:9pt">2022</span></p> </td></tr> <tr style="height:7.2pt"><td colspan="2" style="background-color:#D3F0FE;width:46pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0">Revenue</p> </td><td style="background-color:#D3F0FE;width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:111pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify">Consultant services</p> </td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">      1,096,284 </p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">$</p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">         630,040 </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:23pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="background-color:#D3F0FE;width:209.3pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:9pt">Software development and maintenance services</span></p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">           49,055 </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">           95,997 </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="top"></td><td style="width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">      1,145,339 </p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">         726,037 </p> </td></tr> <tr style="height:7.2pt"><td colspan="4" style="background-color:#D3F0FE;width:180pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0">Operating costs</p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0">Consultant services</p> </td><td style="width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">      1,199,119 </p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">      2,235,400 </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:23pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="background-color:#D3F0FE;width:209.3pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:9pt">Software development and maintenance services</span></p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">           51,815 </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">           89,495 </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"></td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">      1,250,934 </p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">      2,324,895 </p> </td></tr> <tr style="height:7.2pt"><td colspan="4" style="background-color:#D3F0FE;width:180pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0">Income (loss) from operations</p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify">Consultant services</p> </td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">        (102,835)</p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">     (1,605,360)</p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="background-color:#D3F0FE;width:209.3pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:9pt">Software development and maintenance services</span></p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">            (2,760)</p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">             6,502 </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"></td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">        (105,595)</p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">     (1,598,858)</p> </td></tr> <tr style="height:7.2pt"><td colspan="4" style="background-color:#D3F0FE;width:180pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0">Other income (expenses)</p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify">Consultant services</p> </td><td style="width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">                808 </p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">             7,493 </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:23pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="background-color:#D3F0FE;width:209.3pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:9pt">Software development and maintenance services</span></p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"></td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">                808 </p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">             7,493 </p> </td></tr> <tr style="height:7.2pt"><td colspan="5" style="background-color:#D3F0FE;width:193.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0">Income (loss) before income tax expense</p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0">Consultant services</p> </td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">        (102,027)</p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">     (1,597,867)</p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="background-color:#D3F0FE;width:209.3pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:9pt">Software development and maintenance services</span></p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">            (2,760)</p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">             6,502 </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"></td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">        (104,787)</p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">     (1,591,365)</p> </td></tr> <tr style="height:7.2pt"><td colspan="4" style="background-color:#D3F0FE;width:180pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0">Income tax expense</p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify">Consultant services</p> </td><td style="width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">           19,202 </p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">         109,994 </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:23pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="background-color:#D3F0FE;width:209.3pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:9pt">Software development and maintenance services</span></p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="top"><p style="font:12pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="top"></td><td style="width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">           19,202 </p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">         109,994 </p> </td></tr> <tr style="height:7.2pt"><td colspan="4" style="background-color:#D3F0FE;width:180pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0">Net income (loss)</p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify">Consultant services</p> </td><td style="width:15.3pt" valign="top"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">        (121,229)</p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">     (1,707,861)</p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="background-color:#D3F0FE;width:209.3pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:9pt">Software development and maintenance services</span></p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">            (2,760)</p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">             6,502 </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"></td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="width:75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">        (123,989)</p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">$</p> </td><td style="width:75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">     (1,701,359)</p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:111pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="4" style="width:180pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0">Capital expenditure</p> </td><td style="width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td style="width:11.8pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="background-color:#D3F0FE;width:209.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0">Consultant services</p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">$</p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">                363 </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"><span style="font-size:9pt">Software development and maintenance services</span></p> </td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">             1,224 </p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">                   -   </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:23pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0"> </p> </td><td colspan="7" style="background-color:#D3F0FE;width:209.3pt" valign="bottom"></td><td style="background-color:#D3F0FE;width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">             1,224 </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">$</p> </td><td style="background-color:#D3F0FE;width:75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">                363 </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:111pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> </table> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <table style="border-collapse:collapse;width:423.6pt;margin-left:5.4pt"><tr style="height:7.2pt"><td style="width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:111pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:center">June 30,</p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:center">December 31,</p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="3" style="width:157pt" valign="bottom"></td><td style="width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:11.8pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:9pt">2023</span></p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:center"> </p> </td><td style="width:75pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:center"><span style="font-size:9pt">2022</span></p> </td></tr> <tr style="height:7.2pt"><td colspan="4" style="background-color:#D3F0FE;width:180pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify">Total assets</p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:13.5pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:11.8pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify">Consultant services</p> </td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">           49,535 </p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">$</p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">           27,973 </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="7" style="background-color:#D3F0FE;width:209.3pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"><span style="font-size:9pt">Software development and maintenance services</span></p> </td><td style="background-color:#D3F0FE;width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">           13,703 </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="background-color:#D3F0FE;width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">             6,543 </p> </td></tr> <tr style="height:7.2pt"><td style="width:23pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="7" style="width:209.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify">Other</p> </td><td style="width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">169,770 </p> </td><td style="width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right"> </p> </td><td style="width:75pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">180,839 </p> </td></tr> <tr style="height:7.2pt"><td style="background-color:#D3F0FE;width:23pt" valign="bottom"><p style="font:12pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> </td><td colspan="7" style="background-color:#D3F0FE;width:209.3pt" valign="bottom"></td><td style="background-color:#D3F0FE;width:15.3pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:justify">$</p> </td><td style="background-color:#D3F0FE;width:75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">         233,008 </p> </td><td style="background-color:#D3F0FE;width:26pt" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">$</p> </td><td style="background-color:#D3F0FE;width:75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt stHtmlOvrFontNm;margin:0;text-align:right">         215,355 </p> </td></tr> </table> 1096284 630040 49055 95997 1145339 726037 1199119 2235400 51815 89495 1250934 2324895 -102835 -1605360 -2760 6502 -105595 -1598858 808 7493 0 0 808 7493 -102027 -1597867 -2760 6502 -104787 -1591365 19202 109994 0 0 19202 109994 -121229 -1707861 -2760 6502 -123989 -1701359 0 363 1224 0 1224 363 49535 27973 13703 6543 169770 180839 233008 215355 <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Note 13 - EQUITY CAPITAL</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Authorized Capital</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">On the date its of incorporation, QMIS USA was authorized to issue 750,000,000 shares of common stock, par value $0.0001 per share. On October 7, 2020, the Company amended its Certificate of Incorporation to be authorized to issue 760,000,000 shares of stock, consisting of 750,000,000 shares of common stock having a par value of $0.0001 per share, and 10,000,000 shares of preferred stock having a par value of $0.0001 per share.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Issuance of Common Stock</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">On February 12, 2020, 300,000,000 shares of common stock were issued at par value $0.0001 per share to three directors as director fees, totaling $30,000.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">On February 13, 2023, a total of 1,000,100 shares of common stock were issued to Dr. Chin Yung Kong and Mr. Chin Hua Fung for acquisition of QMIS Securities Capital SDN BHD.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Capital Stock Issued and Outstanding</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">As of June 30, 2023, and December 31, 2022, 301,000,100 shares of common stock were issued and outstanding, respectively, and no shares of preferred stock were issued and outstanding, respectively. The number of shares reflects the retrospective presentation of the share issuance on February 13, 2023 for acquisition of QMIS Securities Capital SDN BHD, due to the recapitalization between entities under common control.</p> 750000000 750000000 0.0001 0.0001 760000000 0.0001 10000000 0.0001 300000000 0.0001 30000 1000100 301000100 301000100 301000100 301000100 <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Note 14 - CONVERTIBLE PROMISSORY NOTE</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">On October 30, 2020, the Company entered into an agreement to issue a convertible promissory note (the "Note") in the principal amount of one million five hundred thousand dollars ($1,500,000), to the Chairman of the Board and CEO, Dr. Yung Kong Chin. The Company will pay interest from the date of issuance of the Note on the unpaid principal balance at the annual rate of interest equal to eight percent (8%) per six months, such principal and interest to be payable on demand. The Note is a general unsecured obligation of the Company. At any time, the unpaid principal amount of the Note and any unpaid interest accrued thereon can be converted into the Company's common stock at $1.50 per share. However, the Note has not been issued and no fund has been made to the Company at the date of this report. The Company and Dr. Chin anticipate that the Note will be issued in the fourth quarter of 2023.</p> 1500000 0.08 1.50 <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Note 15 - CONTINGENCIES, RISKS AND UNCERTAINTIES</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Foreign operation</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The Company’s operations are carried out in Malaysia and Hong Kong. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments therein. In addition, the Company’s business may be influenced by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, rates and methods of taxation among other factors.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Liquidity risk</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The Company is exposed to liquidity risk which is the risk that the Company is unable to provide sufficient capital resources and liquidity to meet its commitments and business needs. Liquidity risk is controlled by the application of financial position analysis and monitoring procedures. When necessary, the Company will turn to other financial institutions and the shareholders to obtain short-term funding to meet the liquidity shortage.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Other risk</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">The Company’s business, financial condition and results of operations may also be negatively impacted by risks related to natural disasters, extreme weather conditions, health epidemics and other catastrophic incidents, such as the COVID-19 outbreak and spread, which could significantly disrupt the Company’s operations.</p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"><b>Note 16 - SUBSEQUENT EVENTS</b></p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify"> </p> <p style="font:10pt stHtmlOvrFontNm;margin:0;text-align:justify">On August 3, 2023, QMIS Investment Bank Limited (“QIB”) and Dr. Chin incorporated a company, QMIS Micropay Berhad, in Kuala Lumpur, Malaysia. QIB and Dr. Chin own 60% and 40% of the ownership equity interests of QMIS Micropay Berhad, respectively. QMIS Micropay Berhad plans to carry on the business of electronic payments and transactions but had not engaged in any business operation as of the date of this Quarterly Report.</p> EXCEL 87 Financial_Report.xlsx IDEA: XBRL DOCUMENT begin 644 Financial_Report.xlsx M4$L#!!0 ( #IY$5<'04UB@0 +$ 0 9&]C4')O<',O87!P+GAM M;$V./0L",1!$_\IQO;=!P4)B0-!2L+(/>QLOD&1#LD)^OCG!CVX>;QA&WPIG M*N*I#BV&5(_C(I(/ !47BK9.7:=N')=HI6-Y #OGDK7A.YNJQ<&4GPZ4A!0W_J=0U[R;UEA_6\#MI7E!+ P04 M " Z>1%7>?!9#^\ K @ $0 &1O8U!R;W!S+V-O&ULS9+! 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