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Subsequent Events
12 Months Ended
Dec. 31, 2019
Subsequent Events [Abstract]  
Subsequent Events

NOTE 9 – SUBSEQUENT EVENT

 

COVID-19 Pandemic:

 

Subsequent to year-end, the Company has been negatively impacted by the effects of the worldwide COVID-19 pandemic. During the months of February and March 2020, the Company’s Hong Kong office and Chinese suppliers were temporarily impacted by the closedown of facilities by local and regional authorities in their efforts to combat the spread of COVID-19. The CIHK staff worked remotely from home, however the factory closures delayed certain orders from the second quarter, 2020 until the third quarter 2020. These factories are now functioning, and orders are being produced both in China and in Thailand.

 

On March 9, 2020, the State of Florida declared a state of emergency in order to combat the spread of the COVID-19 pandemic. The Company in 2019 had expanded its IT systems to allow for remote operations and as of March 20, 2020, the Company’s U.S. staff have been working remotely from their homes.

 

The Company is closely monitoring its operations, liquidity, and capital resources and is actively working to minimize the current and future impact of this unprecedented situation. The Company has taken some immediate steps to reduce operating costs and to conserve cash including reductions in rent and travel expenses and staff reductions.

 

These economic uncertainties may continue to have a downturn on capital markets and adversely affect the Company’s stock price, which may result in the impairment of the Company's goodwill. As of the date of issuance of these financial statements, the Company's goodwill is at risk of impairment relative to the market calitalization of the Company's outstanding common stock having fallen below the carrying value of the Company's sole reporting unit.