0001213900-18-010973.txt : 20180814 0001213900-18-010973.hdr.sgml : 20180814 20180814151729 ACCESSION NUMBER: 0001213900-18-010973 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 65 CONFORMED PERIOD OF REPORT: 20180630 FILED AS OF DATE: 20180814 DATE AS OF CHANGE: 20180814 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Wave Sync Corp. CENTRAL INDEX KEY: 0000860131 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL ORGANIC CHEMICALS [2860] IRS NUMBER: 742559866 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-34113 FILM NUMBER: 181016779 BUSINESS ADDRESS: STREET 1: 40 WALL STREET, 28TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10005 BUSINESS PHONE: 646-512-5855 MAIL ADDRESS: STREET 1: 40 WALL STREET, 28TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10005 FORMER COMPANY: FORMER CONFORMED NAME: China Bio-Energy Corp. DATE OF NAME CHANGE: 20110203 FORMER COMPANY: FORMER CONFORMED NAME: China INSOnline Corp. DATE OF NAME CHANGE: 20080312 FORMER COMPANY: FORMER CONFORMED NAME: DEXTERITY SURGICAL INC DATE OF NAME CHANGE: 19990330 10-Q 1 f10q0618_wavesynccorp.htm QUARTERLY REPORT

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2018, or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to _____________

Commission File Number: 001-34113

WAVE SYNC CORP.

(Exact Name of Registrant as Specified in Its Charter)

Delaware		74-2559866
(State of Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

11 Middlebury Blvd, Unit 3, Randolph, NJ		07869
(Address of Principal Executive Offices)		(ZIP Code)

646-512-5855

(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

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

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

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer (Do not check if a smaller reporting company)	☐	Smaller reporting company	☒

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

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

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

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class		Outstanding As of August 10, 2018
Common stock, par value $0.001		21,027,713

TABLE OF CONTENTS

	Page

PART I-FINANCIAL INFORMATION
Item 1. Financial Statements	1
Item 2. Management’s Discussion And Analysis Of Financial Condition And Results Of Operations	2
Item 3. Quantitative and Qualitative Disclosures About Market Risk	8
Item 4. Controls and Procedures	8
PART II-OTHER INFORMATION
Item 1. Legal Proceedings	9
Item 1A. Risk Factors	9
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	9
Item 3. Defaults Upon Senior Securities	9
Item 4. Mine Safety Disclosures	9
Item 5. Other Information	9
Item 6. Exhibits	9

SIGNATURES	10

Throughout this Quarterly Report on Form 10-Q, the “Company”, “we,” “us,” and “our,” refer to Wave Sync Corp., a Delaware corporation, and its subsidiaries, unless otherwise indicated or the context otherwise requires.

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains certain forward-looking statements. The statements herein which are not historical reflect our current expectations and projections about the Company’s future results, performance, liquidity, financial condition, prospects and opportunities and are based upon information currently available to us and our management and our interpretation of what we believe to be significant factors affecting our business, including many assumptions about future events. Such forward-looking statements include statements regarding, among other things:

●	our ability to produce, market and generate sales of our products and services;

●	our ability to develop and/or introduce new products and services;

●	our projected future sales, profitability and other financial metrics;

●	our future financing plans;

●	our anticipated needs for working capital;

●	the anticipated trends in our industry;

●	our ability to expand our sales and marketing capability;

●	acquisitions of other companies or assets that we might undertake in the future;

●	competition existing today or that will likely arise in the future; and

●	other factors discussed elsewhere herein.

Forward-looking statements, which involve assumptions and describe our future plans, strategies, and expectations, are generally identifiable by use of the words “may,” “should,” “will,” “plan,” “could,” “target,” “contemplate,” “predict,” “potential,” “continue,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “seek,” or “project” or the negative of these words or other variations on these or similar words. Actual results, performance, liquidity, financial condition and results of operations, prospects and opportunities could differ materially from those expressed in, or implied by, these forward-looking statements as a result of various risks, uncertainties and other factors, including the ability to raise sufficient capital to continue the Company’s operations. These statements may be found under Part I, Item 2-“Management’s Discussion And Analysis Of Financial Condition And Results Of Operations,” as well as elsewhere in this Quarterly Report on Form 10-Q generally. Actual events or results may differ materially from those discussed in forward-looking statements as a result of various factors, including, without limitation, matters described in this Quarterly Report on Form 10-Q.

In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this Quarterly Report on Form 10-Q will in fact occur.

Potential investors should not place undue reliance on any forward-looking statements. Except as expressly required by the federal securities laws, there is no undertaking to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.

The forward-looking statements in this Quarterly Report on Form 10-Q represent our views as of the date of this Quarterly Report on Form 10-Q. Such statements are presented only as a guide about future possibilities and do not represent assured events, and we anticipate that subsequent events and developments will cause our views to change. You should, therefore, not rely on these forward-looking statements as representing our views as of any date after the date of this Quarterly Report on Form 10-Q.

This Quarterly Report on Form 10-Q also contains estimates and other statistical data prepared by independent parties and by us relating to market size and growth and other data about our industry. These estimates and data involve a number of assumptions and limitations, and potential investors are cautioned not to give undue weight to these estimates and data. We have not independently verified the statistical and other industry data generated by independent parties and contained in this Quarterly Report on Form 10-Q. In addition, projections, assumptions and estimates of our future performance and the future performance of the industries in which we operate are necessarily subject to a high degree of uncertainty and risk.

Potential investors should not make an investment decision based solely on our projections, estimates or expectations.

PART I.

FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

INDEX TO FINANCIAL STATEMENTS

Contents

	Page(s)

Report of Independent Accountant	F-1

Condensed Consolidated Balance Sheets	F-2

Condensed Consolidated Statements of Operations and Comprehensive Loss	F-3

Condensed Consolidated Statements of Cash Flows	F-4

Notes to Condensed Consolidated Financial Statements	F-5 – F-16

REPORT OF REGISTERED INDEPENDENT PUBLIC ACCOUNTING FIRM

To:

The Board of Directors and Stockholders of

Wave Sync Corp.

Results of Review of Interim Financial Information

We have reviewed the condensed balance sheet of Wave Sync Corp. (the “Company”) as of June 30, 2018, and the related condensed statements of operations and comprehensive income for the three-month and six-month periods ended June 30, 2018 and 2017, and condensed statements of cash flows for the six-month periods then ended, and the related notes (collectively referred to as the interim financial statements). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial statements for them to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the balance sheet of the Company as of December 31, 2017 and 2016, and the related statements of operations and comprehensive income, stockholders’ equity, and cash flows for the years then ended (not presented herein); and in our report dated April 13, 2018, we expressed an unqualified opinion on those financial statements. In our opinion, the information set forth in the accompanying condensed balance sheet as of December 31, 2017, is fairly stated, in all material respects, in relation to the balance sheet from which it has been derived.

Basis for Review Results

These interim financial statements are the responsibility of the Company’s management. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

San Mateo, California	WWC, P.C.
August 7, 2018	Certified Public Accountants

F-1

WAVE SYNC CORP.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF JUNE 30, 2018 AND DECEMBER 31, 2017

(Stated in US Dollars)

	At June 30,			At December 31,
	2018			2017
ASSETS				(Audited)

Current Assets
Cash and cash equivalents	$	1,820		$	10,346
Other receivable		510			7,343
Advance to suppliers		35,559			36,175
Prepaid expenses		-			9,346
Prepaid taxes		5,032			3,927
Total Current Assets		42,921			67,137

Non-Current Assets
Property, plant and equipment, net		61,308			67,277
Intangible asset, net		-			3,952,052
Total Non-Current Assets		61,308			4,019,329

Total Assets	$	104,229		$	4,086,466

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities
Capital lease – current portion	$	-		$	9,980
Accounts payable		248,090			159,766
Taxes payable		900			6,145
Other payables		201,076			66,142
Accrued expenses		18,708			37,440
Related party payables		782,928			685,180
Total Current Liabilities		1,251,702			964,653

	$	1,251,702		$	964,653

Commitment and contingencies

Stockholders’ Equity
Common stock, $0.001 par value, 100,000,000 shares authorized, 21,027,713 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively		21,027			21,027
Additional paid in capital		25,650,801			24,776,214
Accumulated deficit		(26,694,626	)		(21,452,071	)
Accumulated other comprehensive loss		(124,675	)		(223,357	)
Total Stockholders’ Equity		(1,147,473	)		3,121,813

Total Liabilities and Stockholders’ Equity	$	104,229		$	4,086,466

The accompanying notes are an integral part of these financial statements

F-2

WAVE SYNC CORP.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE LOSS

FOR THE THREE-MONTH AND SIX-MONTH PERIODS ENDED OF JUNE 30, 2018 AND 2017

(Stated in US Dollars)

	For the six months ended June 30,						For the three months ended June 30,
	2018			2017			2018			2017

Revenue	$	88,908		$	209,061		$	-		$	422
Cost of revenues		87,288			826			-			2
Gross profit	$	1,620		$	208,235		$	-		$	420

Operating expenses
General and administrative expenses		1,205,351			557,171			547,532			267,023
		1,205,351			557,171			547,532			267,023

Operating loss	$	(1,203,731	)	$	(348,936	)	$	(547,532	)	$	(266,603	)

Other income (expenses)
Interest income		26			1,835			2			680
Interest expense		-			(217	)		-			(217	)
Other expense		(4,038,850	)		-			(4,038,850	)		-
Other income		-			101,159			-			131,168
Total other income/(expenses)		(4,038,824	)		102,777			(4,038,848	)		131,631

Loss before income taxes		(5,242,555	)		(246,159	)		(4,586,380	)		(134,972	)

Income tax		-			-			-			-

Net loss	$	(5,242,555	)	$	(246,159	)	$	(4,586,380	)	$	(134,972	)

Other comprehensive loss
Foreign currency translation adjustment		98,682			7,289			113,134			1,800

Comprehensive loss	$	(5,143,873	)	$	(238,870	)	$	(4,473,246	)	$	(133,172	)

Net loss per share
Basic	$	(0.25	)	$	(0.01	)	$	(0.22	)	$	(0.01	)
Diluted	$	(0.25	)	$	(0.01	)	$	(0.22	)	$	(0.01	)

Weighted average number of common shares outstanding
Basic		21,027,713			20,565,980			21,027,713			21,027,162
Diluted		21,027,713			20,565,980			21,027,713			21,027,162

The accompanying notes are an integral part of these financial statements

F-3

WAVE SYNC CORP.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

FOR THE SIX MONTH PERIODS ENDED JUNE 30, 2018 AND 2017

(Stated in US Dollars)

	For the six month periods ended June 30,
	2018			2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(5,242,555	)	$	(246,159	)
Depreciation and amortization		4,165			6,006
Stock compensation		874,587			-
Impairment loss on intangible assets		3,952,129			-
Adjustments to reconcile net loss to net cash provided by operating activities and changes in operating assets and liabilities:
Decrease/(increase) in accounts receivable		6,043			(142	)
Decrease/(increase) in other receivables		790			(14,793	)
Decrease/(increase) in advance to suppliers		616			(7,399	)
Decrease/(increase) in prepaid expenses and taxes		8,241			(1,915	)
Increase/(decrease) in accounts payable		88,324			(55,855	)
Decrease in accrued expenses		(28,711	)		(25,496	)
Increase/(decrease) in other payables		134,933			(64,211	)
Decrease in taxes payable		(5,245	)		(3,756	)
Net cash provided by (used in) operating activities		(206,683	)		(413,720	)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment		-			(62,065	)
Decrease in deposits		-			(1,070	)
Net cash generated from investing activities		-			(63,135	)

CASH FLOWS FROM FINANCING ACTIVITIES
Increase in related party receivables		(1,275	)		(96,982	)
Increase in related party payables		99,023			234,559
Net cash generated from financing activities		97,748			137,577

Net increase in cash and cash equivalents		(108,935	)		(339,278	)

Effect of foreign currency translation on cash and cash equivalents		100,409			7,258

Cash and cash equivalents, beginning balance		10,346			480,609
Cash and cash equivalents, ending balance	$	1,820		$	148,590

SUPPLEMENTAL DISCLOSURES:
Interest received	$	26		$	1,835
Interest paid	$	-		$	-
Income tax paid	$	-		$	-

The accompanying notes are an integral part of these financial statements

F-4

WAVE SYNC CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2018 AND DECEMBER 31, 2017

(Stated in US Dollars)

THE COMPANY AND PRINCIPAL BUSINESS ACTIVITIES

Wave Sync Corp. formerly known as China Bio-Energy Corp. (the “Company”), and prior to that known as China INSOnline Corp., was incorporated on December 23, 1988 as Lifequest Medical, Inc., a Delaware corporation.

In June 2010, the Company ceased all operations conducted by its then subsidiaries: Ever Trend Investment Limited, Run Ze Yong Cheng (Beijing) Technology, San Teng Da Fei Technology, and Guang Hua Insurance Agency (“Ever Trend Group”); on January 27, 2015, the Company announced the completion of the disposition of the aforementioned subsidiaries. Accordingly, the Company has excluded the accounts of Ever Trend Group in these financial statements and the accompanying notes contained herein.

On November 12, 2010, the Company entered into a share exchange agreement with Ding Neng Holdings Ltd, an investment holdings company incorporated in the British Virgin Islands (“Ding Neng Holdings”); the share exchange agreement was amended on December 6, 2010, whereby the Company, under the share exchange agreement and its related amendment, would have contemplated acquiring 100% of Ding Neng Holdings in exchange for the issuance of 26,162,505 shares of the Company’s common stock, par value $0.001. Under the share exchange agreement, the Company would have contemplated owning and operating Ding Neng Holdings and Ding Neng Holdings’ directly, and indirectly held subsidiaries: Ding Neng Bio-technology Co., Ltd. (“Ding Neng HK”), Zhangzhou Fuhua Biomass Energy Technology Co., Ltd. (“WOFE”), and Ding Neng Bio-tech. Ding Neng HK was incorporated under the laws of Hong Kong on September 10, 2010. Ding Neng HK did not have any operations. Ding Neng HK has been delinquent with its annual regulatory filings in Hong Kong, and should be considered dormant and defunct. Ding Neng HK was wholly-owned by Ding Neng Holdings. Zhangzhou Fuhua Biomass Energy Technology Co., Ltd. (“WFOE”) was incorporated as a wholly-foreign owned entity under the laws of the People’s Republic of China (“PRC”), on November 2, 2010. WFOE was wholly-owned by Ding Neng HK. Ding Neng Bio-tech was incorporated under the laws of the PRC on December 8, 2006. It was located in Zhangzhou city Fujian Province of PRC. Ding Neng Bio-tech was engaged in the production, refinement and distribution of bio-diesel fuel in Southern China. Ding Neng Bio-tech operated a biodiesel manufacturing facility in Zhangzhou city. On October 28, 2010, WFOE and Ding Neng Bio-tech entered into a set of variable interest entity agreements that included: (1) a Consulting Service Agreement with Ding Neng Bio-tech, which entitled WFOE to receive substantially all of the economic benefits of Ding Neng Bio-tech in consideration for services provided by WFOE to Ding Neng Bio-tech, (2) an Option Agreement with Xinfeng Nie, Sanfu Huang, and Shunlong Hu (the shareholders of Ding Neng Bio-tech) allowing the WFOE to acquire all the shares of Ding Neng Bio-tech as permitted by PRC laws, (3) a Voting Rights Proxy Agreement that provides WFOE with the all voting rights of the Ding Neng Bio-tech shareholders, and (4) an Equity Pledge Agreement that pledges the shares in Ding Neng Bio-tech to WFOE (VIE Agreements). These VIE Agreements granted effective control of Ding Neng Bio-tech to WFOE. On June 4, 2015, WFOE filed a civil action in Haicang District People’s Court of Xiamen, Fujian, PRC (the “Court”) against Ding Neng Bio-tech, alleging that the purposes of those certain executed VIE Agreements entered into by WFOE and Ding Neng Bio-Tech on October 28, 2010, had been frustrated, and that these VIE Agreements should be terminated. WFOE alleged that Ding Neng Bio-Tech did not make any payment of service fees to WFOE, and that Ding Neng Bio-Tech failed to perfect the security interest in the pledged stocks. On July 14, 2015, this case was settled via in-court mediation directed by the Court. As a result, WFOE and Ding Neng Bio-Tech entered into binding settlement, among other things, (i) to terminate the VIE Agreements, and (ii) that the litigation fee in the amount of RMB10,000 (approximately $1,610.50) would be borne by Ding Neng Bio-Tech. Ding Neng Holdings is delinquent with its regulatory filings and annual fees to the British Virgin Islands; accordingly, the Ding Neng Holdings should be considered dormant and defunct.

F-5

Given that the Company has not been able to exercise effective control over Ding Neng Bio-Tech or to access Ding Neng Bio-tech’s financial information since 2011, and the VIE Agreements were terminated, the Company has excluded the accounts of Ding Neng Bio-Tech’s in these financial statements and the accompanying notes contained herein; the exclusion of such accounts is considered as a type two material subsequent event that occurred prior to the issuance of the financial statements but after the balance sheets dates that required material adjustments to the financial statements presented. Ding Neng Holdings is delinquent and defunct; the Company has determined that the Company was never registered as the sole shareholder of Ding Neng Holdings pursuant to the share exchange agreement dated November 12, 2010, and amended December 6, 2010; accordingly, the Company has excluded the accounts of Ding Neng and its subsidiaries in these financial statements and the accompanying notes as contained herein; the exclusion of such accounts is considered as a type two material subsequent event that occurred prior to the issuance of the financial statements but after the balance sheets dates that required material adjustments to the financial statements presented. The Company accounted for the issuance of shares to the shareholders of Ding Neng Holdings under the contemplated share exchange transaction as a recapitalization of the Company under reverse take-over accounting; accordingly, the Company’s historical stockholders’ equity has been retroactively restated to the first period presented; as a result of the Company not being updated to Ding Neng Holdings shareholder register, and that Ding Neng Holdings being defunct, the Company has written off all investments made in Ding Neng as loss on investment in subsidiary.

In connection with the share exchange agreement with the shareholders of Ding Neng Holdings that contemplated the acquisition of Ding Neng Holdings and its subsidiaries, the Company elected to adopt the fiscal year used by Ding Neng Holdings, which was a calendar year; accordingly, the Company’s financial statements presented herein have been, and on a go-forward basis, will be prepared using a December 31 year-end date, and each operating period will cover twelve full calendar months.

Share Purchase Agreement

On October 19, 2015, the Company entered into a Share Purchase Agreement (the “Share Purchase Agreement”) with EGOOS Mobile Technology Company Limited, a British Virgin Islands holding company (“EGOOS BVI”), which owns 100% of EGOOS Mobile Technology Company Limited, a Hong Kong company (“EGOOS HK”), which owns 100% of Move the Purchase Consulting Management (Shenzhen) Co., Ltd. (“WOFE”), a foreign investment enterprise organized under the laws of the PRC, and which has, through various contractual agreements known as variable interest entity (“VIE”) agreements. These VIE agreements provide the WOFE management control and the rights to the profits of Guangzhou Yuzhi Information Technology Co., Ltd., a corporation organized under the laws of the PRC as a variable interest entity (“GZYZ”), which owns 100% of Shenzhen Qianhai Exce-card Technology Co., Ltd., a Chinese corporation (“SQEC”), which owns 100% of Guangzhou Rongsheng Information Technology Co., Ltd., a Chinese corporation (“GZRS”) and the sole shareholder of EGOOS BVI. The VIE agreements include: (1) an Exclusive Service Agreement between WOFE and GZYZ, which entitles WOFE to receive substantially all of the economic benefits of GZYZ in consideration for services provided by WOFE to GZYZ, (2) a Call Option Agreement with the shareholders of GZYZ, Yang Wenbin and Li Ping, allowing the WOFE to acquire all the shares of GZYZ as permitted by PRC laws, (3) a Voting Rights Proxy Agreement that provides WOFE with all the voting rights of the GZYZ’s shareholders, and (4) an Equity Pledge Agreement that pledges the shares in GZYZ to WOFE. Management has assessed the terms of the VIE agreements and determined that the Company is the primary beneficiary of those agreements based on Management’s ability to direct the use and disposition of GZYZ assets including the payment of future profits to the Company. Management also determined the Company has implicitly provided financial support to GYZY; accordingly, Management believes that GZYZ and its subsidiaries should be consolidated as variable interest entities of the Company.

SQEC was incorporated on November 11, 2013. The Company is in the business of design, development, and proliferation of next generation debit and credit cards for financial institutions employing innovative secured encryption technology transmitted via audio wave technology. The Company is working with China Union Pay and China Construction Bank under a potential pilot program to develop new audio bank cards and market to end user bank customers and business operators to adopt these next generation of cards by developing point of sale and commercial interfaces via software and other solutions to generate demand for these cards as a value-added alternative to current generation debit and credit cards.

F-6

On January 28, 2015, ownership of SQEC’s was transferred from Bao, Shanshan to Xiang, Zuyue for a consideration of approximately $1,629,062 (RMB 10,000,000). Simultaneously, Xiang, Zuyue transferred 40% of ownership to Li, Na for a consideration of $651,625 (RMB 4,000,000). On July 24, 2015, SQEC entire ownership was collectively transferred from Xiang, Zuyue and Li, Na to Guangzhou Yuzhi Information Technology Co. Ltd. (“GZYZ”) for a consideration of approximately $1,629,062 (RMB 10,000,000).

On March 16, 2015, the GZRS was incorporated as a wholly-owned subsidiary of SQEC. GZRS has an authorized capital of RMB 1,000,000. As of the date of this report, GZRS has not been capitalized.

Pursuant to the Share Purchase Agreement, the Company issued a convertible note to EGOOS BVI’s sole shareholder for 100% equity interest in EGOOS BVI. The note is convertible into 15,000,000 shares of the Company’s common stock contingent on the following conditions: (i) the Company has effectuated a reverse split of all of the issued and outstanding Common Stock as of the date of the issuance of the note (the “Reverse Split”) and (ii) the average closing price of the common stock for 3 business days within any period of 10 consecutive business days exceeds $1.00 per share (the “Conversion Conditions”). Upon conversion of the note, the existing shareholders of the Registrant will own an aggregate of 24.7% of the post-acquisition entity. The note was issued at par, unsecured, interest free, and was due on the second anniversary of the issuance date of the note. In accounting for the note, the Company assumed that the note did not carry any discount from face that required accretion as interest expense to its results of operations, including any potential beneficial conversion features. On January 26, 2016, the reverse split was effectuated, and subsequently, on February 4, 2016, the convertible promissory note was converted into 15 million newly issued shares of the Company’s common stock. The conversion of the promissory note has been recognized retroactively to the first period presented as a component of the reverse takeover transactions detailed below.

The consolidated financial statements were prepared assuming that the Company has controlled EGOOS BVI and its intermediary holding companies, operating subsidiaries, and variable interest entities: EGOOS HK, WOFE, GZYZ, SQEC, and GZRS from the first period presented. The transactions detailed above have been accounted for as reverse takeover transactions and a recapitalization of the Company, including the conversion of the convertible promissory note; accordingly, the Company (the legal acquirer) is considered the accounting acquiree and EGOOS BVI (the legal acquiree) is considered the accounting acquirer. No goodwill has been recorded. As a result of this transaction, the Company is deemed a continuation of the business of EGOOS BVI and SQEC.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Method of Accounting

The Company maintains its general ledger and journals with the accrual method of accounting for financial reporting purposes. The financial statements and notes are representations of management. Accounting policies adopted by the Company conform to generally accepted accounting principles in the United States of America and have been consistently applied in the presentation of financial statements.

Basis of Presentation

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”).

Principles of Consolidation

The consolidated financial statements include the accounts of the Company, its subsidiaries for which the Company is the primary beneficiary. All significant inter-company accounts and transactions have been eliminated. The consolidated financial statements include 100% of assets, liabilities, and net income or loss of those wholly-owned subsidiaries.

As of June 30, 2018, the detailed identities of the consolidating subsidiaries are as follows:

Name of Company	Place of incorporation	Attributable equity interest %	Registered capital
EGOOS Mobile Technology Company Limited (“EGOOS BVI”)	BVI	100%	$	1
EGOOS Mobile Technology Company Limited (“EGOOS HK”)	Hong Kong	100%		1,290
Move the Purchase Consulting Management (Shenzhen) Co., Ltd. (“WOFE”)	P.R.C. (WOFE)	100%		-
Guangzhou Yuzhi Information Technology Co., Ltd. (“GZYZ”)	P.R.C.	100%		150,527
Shenzhen Qianhai Exce-card Technology Co., Ltd. (“SQEC”)	P.R.C.	100%		150,527
Guangzhou Rongsheng Information Technology Co., Ltd. (“GZRS”)	P.R.C.	100%		1,505,267

F-7

Unaudited Interim Financial Information

These unaudited interim condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial reporting and the rules and regulations of the Securities and Exchange Commission that allow for reduced disclosure for interim periods. Therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. In the opinion of management, all adjustments of a normal recurring nature necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented have been made. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the year ending December 31, 2018.

The consolidated balance sheets and certain comparative information as of December 31, 2017 are derived from the audited consolidated financial statements and related notes for the year ended December 31, 2017 (“2017 Annual Financial Statements”), included in the Company’s 2017 Annual Report on Form 10-K. These unaudited interim condensed consolidated financial statements should be read in conjunction with the 2017 Annual Financial Statements.

Use of estimates

The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates are used for, but not limited to, the accounting for certain items such as allowance for doubtful accounts, depreciation and amortization, impairment, inventory allowance, taxes and contingencies.

Contingencies

Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company’s management assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company’s management evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought.

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed.

Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed.

Cash and cash equivalents

The Company classifies the following instruments as cash and cash equivalents: cash on hand, unrestricted bank deposits, and all highly liquid investments purchased with original maturities of three months or less.

Accounts receivable

Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred.

F-8

Other receivables

Other receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An allowance for doubtful accounts is made when recovery of the full amount is doubtful.

Property, plant and equipment

Plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method with a salvage value of 10%. Estimated useful lives of the plant and equipment are as follows:

	Computer equipment	3 years
	Office furniture	5 years

The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of income. The cost of maintenance and repairs is charged to income as incurred, whereas significant renewals and betterments are capitalized.

Accounting for the Impairment of Long-lived assets

The long-lived assets held by the Company are reviewed in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Subtopic 360-10-35, “Accounting for the Impairment or Disposal of Long-Lived Assets,” for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. It is reasonably possible that these assets could become impaired as a result of technology or other industry changes. Impairment is present if carrying amount of an asset is less than its undiscounted cash flows to be generated.

If an asset is considered impaired, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The Company assessed the carrying value and has taken impairment losses to its assets during 2018.

Income taxes

The Company uses the accrual method of accounting to determine income taxes for the year. The Company has implemented FASB ASC 740 Accounting for Income Taxes. Income tax liabilities computed according to the United States, People’s Republic of China (PRC), and Hong Kong tax laws provide for the tax effects of transactions reported in the financial statements and consists of taxes currently due, plus deferred taxes, related primarily to differences arising from the recognition of expenses related to the depreciation of plant and equipment, amortization of intangible assets, and provisions for doubtful accounts between financial and tax reporting. The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will be either taxable or deductible when the assets and liabilities are recovered or settled. Deferred taxes also are recognized for operating losses that are available to offset future income taxes.

A valuation allowance is recognized for deferred tax assets if it is more likely than not, that the deferred tax assets will either expire before the Company is able to realize that tax benefit, or that future realization is uncertain.

Stock-based compensation

The Company has elected to use the Black-Scholes-Merton (“BSM”) pricing model to determine the fair value of stock options on the dates of grant. Also, the Company recognizes stock-based compensation using the straight-line method over the requisite service period.

The Company values stock awards using the market price on or around the date the shares were awarded and includes the amount of compensation as a period compensation expense over the requisite service period.

For the three month periods ended June 30, 2018 and 2017, $874,587 and $0 stock-based compensation was recognized.

F-9

Foreign currency translation

The accompanying financial statements are presented in United States dollars. The functional currency of the Company is the Renminbi (RMB) and Hong Kong dollar (HKD). The financial statements are translated into United States dollars from RMB at year-end exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred.

Exchange Rates	6/30/2018		12/31/2017		6/30/2017
Year-end/period-end RMB : US$ exchange rate		6.6191		6.5064		6.7768
Average annual/period RMB : US$ exchange rate		6.3665		6.7570		6.8743

Year-end/period-end HKD : US$ exchange rate		7.8453		7.8149		7.8056
Average annual/period HKD : US$ exchange rate		7.8373		7.7922		7.7731

The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US Dollar at the rates used in translation.

Revenue recognition

The Company recognizes services revenue when the following criteria have been met: 1.) it has agreed and entered into a contract for service with it customers, 2.) the contract has set forth a fixed fee for the services to be rendered, 3.) the Company has fully rendered service to its customers, and there are no additional obligations that exist that under the terms of the contract that the Company has not fulfilled, and 4.) the Company has either received payment, or reasonably expects payment from the customer in accordance with the payment terms set forth in the contract.

Earnings per share

Basic earnings per share is computed on the basis of the weighted average number of common stock outstanding during the period. Diluted earnings per share is computed on the basis of the weighted average number of common stock and common stock equivalents outstanding. Dilutive securities having an anti-dilutive effect on diluted earnings per share are excluded from the calculation.

Dilution is computed by applying the treasury stock method for options and warrants. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period.

Comprehensive loss

Comprehensive income (loss) is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. The Company presents components of comprehensive income with equal prominence to other financial statements. The Company’s current component of other comprehensive income is the foreign currency translation adjustment.

Subsequent events

The Company evaluates subsequent events that have occurred after the balance sheet date but before the financial statements are issued. There are two types of subsequent events: (1) recognized, or those that provide additional evidence with respect to conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements, and (2) non-recognized, or those that provide evidence with respect to conditions that did not exist at the date of the balance sheet but arose subsequent to that date.

Recent accounting pronouncements

In January 2017, the Financial Accounting Standard Board (“FASB”) issued guidance, which simplifies the accounting for goodwill impairment. The updated guidance eliminates Step 2 of the impairment test, which requires entities to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. The Company is still assessing the impact of this pronouncement to its financial statements.

As of June 30, 2018, except for the above, there are no recently issued accounting standards not yet adopted that would have a material effect on the Company’s financial statements.

F-10

Fair Value of Financial Instruments

ASC 825, Financial Instruments, requires that the Company discloses estimated fair values of financial instruments. The carrying amounts reported in the balance sheets for current assets and current liabilities qualifying as financial instruments are a reasonable estimate of fair value.

The Company applies the provisions of ASC 820-10, Fair Value Measurements and Disclosures. ASC 820-10 defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. For certain financial instruments, including cash and cash equivalents, loan receivables and short-term bank loans, the carrying amounts approximate fair value due to their relatively short maturities. The three levels of valuation hierarchy are defined as follows:

●

Level 1 inputs to the valuation methodology are quoted prices 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 asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

●

Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815.

The following tables present the Company’s financial assets and liabilities at fair value in accordance to ASC 820-10

As of June 30, 2018:	Quoted in		Significant
	Active Markets		Other		Significant
	for Identical		Observable		Unobservable
	Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Financial assets:
Cash	$	1,820	$	-	$	-	$	1,820
Total financial assets	$	1,820	$	-	$	-	$	1,820

Financial liabilities:
Capital lease	$	-	$	-	$	-	$	-
Total financial liabilities	$	-	$	-	$	-	$	-

As of December 31, 2017:	Quoted in		Significant
	Active Markets		Other		Significant
	for Identical		Observable		Unobservable
	Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Financial assets:
Cash	$	10,346	$	-	$	-	$	10,346
Total financial assets	$	10,346	$	-	$	-	$	10,346

Financial liabilities:
Capital lease	$	9,352	$	-	$	-	$	9,352
Total financial liabilities	$	9,352	$	-	$	-	$	9,352

F-11

RELATED PARTY PAYABLES

Related party payable consisted of the following:

	6/30/2018		12/31/2017

Beijing Yuxin Shangfang Technology Co., Ltd.	$	297,012	$	302,155
Xiang, Zuyue, director of SQEC and shareholder		10,513		60,198
Lim, Jehn Ming, shareholder of EGOOS BVI		1,289		1,289
Wang, Yue, director of EGOOS HK		161,233		161,942
Yang, Mei, shareholder		308,963		157,110
Li, Ping, director of WOFE		3,918		2,486
	$	782,928	$	685,180

The amounts are unsecured, interest-free and due on demand.

PROPERTY, PLANT AND EQUIPMENT

Property, plant, and equipment consisted of the following as of June 30, 2018 and December 31, 2017:

	6/30/2018			12/31/2017

At Cost:
Machinery	$	70,628		$	71,852
Office equipment		19,032			19,362
Office furniture		13,218			13,446
	$	102,878		$	104,660

Less: Accumulated depreciation		(41,570	)		(37,383	)

	$	61,308		$	67,277

Depreciation expense for the six-month periods ended June 30, 2018 and 2017 was $4,165 and $5,821, respectively.

F-12

INTANGIBLE ASSET

Intangible assets consisted of the following as of June 30, 2018 and December 31, 2017:

	6/30/2018			12/31/2017

At Cost:
Patent	$	-		$	3,952,052
Software		1,299			1,322
	$	1,299		$	3,953,374

Less: Accumulated amortization		(1,299	)		(1,322	)

	$	-		$	3,952,052

On July 7, 2017, SQEC and the director of the Company, Mr. Zuyue Xiang (“Xiang”), entered into an intangible asset transfer agreement. Xiang transferred his rights and ownership of the patent to a voice smart card and trading system for a consideration of RMB 10,000,000 (equivalent to USD 1,447,696). The patent was impaired during the period ended June 30, 2018 and was written off to other expense.

Amortization expense for the six-month periods ended June 30, 2018 and 2017 was $0 and $185, respectively.

ACCRUED EXPENSES

Accrued expenses consisted of the followings as of June 30, 2018 and December 31, 2017:

	6/30/2018		12/31/2017

Audit fee	$	6,500	$	35,000
Utilities		12,208		2,440
	$	18,708	$	37,440

TAXES PAYABLES

Taxes payable consisted of the followings as of June 30, 2018 and December 31, 2017:

	6/30/2018		12/31/2017

Payroll tax	$	874	$	5,270
Individual income tax		24		875
	$	900	$	6,145

STOCKHOLDERS’ EQUITY

Common stock

As of December 31, 2016 and 2015, the Company has 100,000,000 shares of common stock authorized, 19,920,325 shares issued and outstanding at par value of $0.001 per share.

On March 17, 2017, the Company and each of the two holders (the “Noteholders”) of the Company’s convertible notes (the “Convertible Notes”) entered into a convertible note exchange agreement (the “Agreement”). Pursuant to the Agreement, the Company shall issue to the two noteholders an aggregate of approximately 1,106,837 shares of common stock (the “Common Stock”) of the Company, par value $0.001, in exchange for the Noteholders’ Convertible Notes in an aggregate principal amount of $2,213,673. The common stock were subsequently issued to the two note holders on April 6, 2017 and April 7, 2017, respectively – please refer to note 3 related party receivables and payables.

As of June 30, 2018, the Company has 100,000,000 shares of common stock authorized, 21,027,713 shares issued and outstanding at par value of $0.001 per share.

F-13

Stock option compensation

On October 20, 2017, the Company issued to Mr. Yang Liu, the option to purchase 1,050,000 shares of the Company’s common stock to be issued upon his exercise of such option. The option vests in three tranches according to the following schedule: 350,000 shares at October 19, 2018, 350,000 shares at October 19, 2019, and 350,000 at October 19, 2020. All three tranches expire on October 19, 2022. The Company has used the widely accepted Black Scholes Merton Option Pricing Model to measure the fair value of these securities, because of their plain vanilla nature of this option. The Company employed the followings assumptions to calculate the fair value of the option: expected forfeiture rate: 0%, risk free rate: 2.03%, expiration date: October 19, 2022, exercise price: $1.00, annualized volatility: 602.71%, dividend yield: 0%, and the Company’s closing stock price at the year end. For the six-month periods ended June 30, 2018 and 2017, the Company recorded stock option compensation expense of $874,587 and $0.

INCOME TAXES

The Company was incorporated in the United States of America (“USA”). The Company does not generate any taxable income from its operations for the six month periods ended June 30, 2018 and 2017.

The provision for income taxes consists of the following:

	For the six month periods June 30,
	2018		2017
Current:
USA	$	-	$	-
Deferred:
USA		-		-
Provision for income taxes		-		-

The reconciliation of USA statutory income tax rate to the Company’s effective income tax rate is as follows:

	For the six month periods June 30,
	2018		2017

Income tax at USA statutory rate of 34%	$	-	$	-
Others		-		-
Provision for income taxes		-		-

Uncertain Tax Positions

Interest associated with unrecognized tax benefits are classified as income tax, and penalties are classified in selling, general and administrative expenses in the statements of operations. For the six-month periods ended June 30, 2018 and 2017, the Company had no unrecognized tax benefits and related interest and penalties expenses. Currently, the Company is not subject to examination by major tax jurisdictions.

Deferred Income Tax Benefits

Deferred income tax benefits arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future. In evaluating the Company’s ability to recover the deferred tax assets, the management considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies, and results of recent operations. In projecting future taxable income, the Company begins with historical results adjusted for the results of discontinued operations and incorporate assumptions about the amount of future state, federal, and foreign pretax operating income adjusted for items that do not have tax consequences. The assumptions about future taxable income require the use of significant judgment and are consistent with the plans and estimates that the Company is using to manage the underlying businesses. As of June 30, 2018, management was uncertain as to whether or not the Company would be able to utilize the potential deferred tax assets arising from net operating losses’ since the Company is not currently generating any revenue; accordingly, the Company has not recognized a deferred tax assets.

F-14

10.

LOSS PER SHARE

Basic loss per common share from operations attributable to the Company is based on the weighted-average common shares outstanding during the relevant period. Diluted loss per common share from continuing operations attributable to the Company is based on the weighted-average common shares outstanding during the relevant period adjusted for the dilutive effect of share-based awards. The Company did not have significant share-based awards outstanding that were antidilutive and not included in the calculation of diluted loss per common share from operations attributable to the Company for the three and six-month periods ended June 30, 2018 and 2017.

The following table sets forth the computation of basic and diluted earnings per share of common stock:

	For the six months ended June 30,						For the three months ended June 30,
	2018			2017			2018			2017

Basic loss per share:
Numerator:
Net loss used in computing basic earnings per share	$	(5,242,555	)	$	(246,157	)	$	(4,586,380	)	$	(134,972	)

Denominator:
Weighted average common shares outstanding		21,027,713			20,565,980			21,027,713			21,027,162
Basic loss per share	$	(0.25	)	$	(0.01	)	$	(0.22	)	$	(0.01	)

Diluted earnings per share:
Numerator:
Net loss used in computing diluted loss per share	$	(5,242,555	)	$	(246,157	)	$	(4,586,380	)	$	(134,972	)

Denominator:
Weighted average common shares outstanding		21,027,713			20,565,980			21,027,713			21,027,162
Diluted loss per share	$	(0.25	)	$	(0.01	)	$	(0.22	)	$	(0.01	)

Dilutive securities having an anti-dilutive effect on diluted (loss) earnings per share are excluded from the calculation.

11.

GOING CONCERN UNCERTAINTIES

These financial statements have been prepared assuming that Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future.

As of June 30, 2018, the Company had accumulated deficits of $26,694,626 and working capital deficit of current liabilities exceeding current assets by $1,208,782. Management’s plan to support the Company in operations and to maintain its business strategy is to raise funds through public and private offerings and to rely on officers and directors to perform essential functions with minimal compensation. If we do not raise all of the money we need from public or private offerings, we will have to find alternative sources, such as loans or advances from our officers, directors or others. Such additional financing may not become available on acceptable terms and there can be no assurance that any additional financing that the Company does obtain will be sufficient to meet its needs in the long term. Even if the Company is able to obtain additional financing, it may contain undue restrictions on our operations, in the case of debt financing, or cause substantial dilution for our stockholders, in the case of equity financing. If we require additional cash and cannot raise it, we will either have to suspend operations or cease business entirely.

The accompanying financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

F-15

12.

COMMITMENTS

(a.)

On June 2, 2016, the Company entered into a lease agreement for office space in Guangzhou city, Guangdong Province, P.R.C. commencing on June 1, 2016 for a three-year lease term. The Company terminated its lease in May 2018 and vacated the premise. The Company did not have any lease payable outstanding as of June 30, 2018.

(b.)

On September 1, 2016, Mr. Zuyue Xiang entered into a lease agreement on behalf of the Company for office space in Guangdong Province, P.R.C. commencing on September 1, 2016 for a three-year lease term. The Company terminated its lease in May 2018 and vacated the premise. The Company did not have any lease payable outstanding June 30, 2018.

(c.)

On April 23, 2018, the Company entered into a sublease agreement for office space in New Jersey commencing on April 23, 2018 for a six-month lease term. The monthly rental expense is $833.33.

13.

CONCENTRATION OF RISKS

Major Customer

The Company had certain customers who represented 10% or more of the Company’s total sales. For the six month period ended June 30, 2018, the Company generated service revenue from one customer, which represented 100% of the revenue. For the six month period ended June 30, 2017, the Company generated service revenue from three customers, which represented 33%, 30%, and 35% of the revenue. The Company is unable to forecast if re-occurring services revenue will be generated from these customers.

Major Vendors and Accounts Payable

The Company had certain vendors who represented 10% or more of the Company’s total cost of sales or expenses, or whose accounts payable balances individually represented 10% or more of the Company’s total accounts payable. For the six month period ended June 30, 2018, there was no concentration in any specific vendor. For the six-month period ended June 30, 2017, two vendors accounted for 20% and 80% of accounts payable, respectively.

Credit Risk

The Company maintains cash balances at several financial institutions located in the United States and the PRC. Accounts located in the United States are insured by the Federal Deposit Insurance Corporation up to $100,000. Accounts located outside of the United States are not insured and may be subject to such risk.

14.

SUBSEQUENT EVENT

The Company has evaluated subsequent events from June 30, 2018 through the date the financial statements were available to be issued. There was no subsequent event at the report date.

F-16

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

The following discussion and analysis of our results of operations and financial condition since the Company’s inception should be read in conjunction with our financial statements and the notes to those financial statements that are included elsewhere in this quarterly report. All statements, other than statements of historical facts, included in this report are forward-looking statements. When used in this report, the words “may,” “will,” “should,” “would,” “anticipate,” “estimate,” “possible,” “expect,” “plan,” “project,” “continuing,” “ongoing,” “could,” “believe,” “predict,” “potential,” “intend,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, availability of additional equity or debt financing, changes in sales or industry trends, competition, retention of senior management and other key personnel, availability of materials or components, ability to make continued product innovations, adverse results of lawsuits against us and currency exchange rates. Forward-looking statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Readers of this report are cautioned not to place undue reliance on these forward-looking statements, as there can be no assurance that these forward-looking statements will prove to be accurate and speak only as of the date hereof. Management undertakes no obligation to publicly release any revisions to these forward-looking statements that may reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. This cautionary statement is applicable to all forward-looking statements contained in this report.

Overview of Business

The Company is a development stage in the business of design, development, and proliferation of next generation debit and credit cards for financial institutions employing innovative secured encryption technology transmitted via audio wave technology. The Company has partnered with China Union Pay and China Construction Bank under a pilot program to develop its audio bank cards and market to the end using bank customers and business operators to adopt the next generation of bank cards. The Company is developing point of sale and commercial interfaces via software and other solutions to generate demand for these new audio cards as a value-added alternative to current generation debit and credit cards.

Critical Accounting Policies

We prepare our consolidated financial statements in conformity with GAAP, which requires management to make certain estimates and apply judgments. We base our estimates and judgments on historical experience, current trends and other factors that management believes to be important at the time the consolidated financial statements are prepared. Due to the need to make estimates about the effect of matters that are inherently uncertain, materially different amounts could be reported under different conditions or using different assumptions. On a regular basis, we review our critical accounting policies and how they are applied in the preparation of our consolidated financial statements.

While we believe that the historical experience, current trends and other factors considered support the preparation of our consolidated financial statements in conformity with GAAP, actual results could differ from our estimates and such differences could be material.

Method of Accounting

Basis of Presentation

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”).

Principles of Consolidation

As of June 30, 2018, the detailed identities of the consolidating subsidiaries are as follows:

Name of Company	Place of incorporation	Attributable equity interest %	Registered capital
EGOOS Mobile Technology Company Limited (“EGOOS BVI”)	BVI	100%	$	1
EGOOS Mobile Technology Company Limited (“EGOOS HK”)	Hong Kong	100%		1,290
Move the Purchase Consulting Management (Shenzhen) Co., Ltd. (“WOFE”)	P.R.C. (WOFE)	100%		-
Guangzhou Yuzhi Information Technology Co., Ltd. (“GZYZ”)	P.R.C.	100%		150,527
Shenzhen Qianhai Exce-card Technology Co., Ltd. (“SQEC”)	P.R.C.	100%		150,527
Guangzhou Rongsheng Information Technology Co., Ltd. (“GZRS”)	P.R.C.	100%		1,505,267

Unaudited Interim Financial Information

Use of estimates

Contingencies

Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed.

Cash and cash equivalents

Accounts receivable

Other receivables

Property, plant and equipment

	Computer equipment	3 years
	Office furniture	5 years

Accounting for the Impairment of Long-lived assets

If an asset is considered impaired, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The Company believes no impairment has occurred to its assets during 2018.

Income taxes

Stock-based compensation

For the three month periods ended June 30, 2018 and 2017, $874,587 and $0 stock-based compensation was recognized.

Foreign currency translation

Exchange Rates	6/30/2018		12/31/2017		6/30/2017
Year-end/period-end RMB : US$ exchange rate		6.6191		6.5064		6.7768
Average annual/period RMB : US$ exchange rate		6.3665		6.7570		6.8743

Year-end/period-end HKD : US$ exchange rate		7.8453		7.8149		7.8056
Average annual/period HKD : US$ exchange rate		7.8373		7.7922		7.7731

Revenue recognition

Earnings per share

Comprehensive loss

Subsequent events

Recent accounting pronouncements

As of June 30, 2018, except for the above, there are no recently issued accounting standards not yet adopted that would have a material effect on the Company’s financial statements.

Fair Value of Financial Instruments

	●	Level 1 inputs to the valuation methodology are quoted prices 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 asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
	●	Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815.

The following tables present the Company’s financial assets and liabilities at fair value in accordance to ASC 820-10

As of June 30, 2018:	Quoted in Active		Significant
	Markets		Other		Significant
	for Identical		Observable		Unobservable
	Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Financial assets:
Cash	$	1,820	$	-	$	-	$	1,820
Total financial assets	$	1,820	$	-	$	-	$	1,820

Financial liabilities:
Capital lease	$	-	$	-	$	-	$	-
Total financial liabilities	$	-	$	-	$	-	$	-

As of December 31, 2017:	Quoted in Active		Significant
	Markets		Other		Significant
	for Identical		Observable		Unobservable
	Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Financial assets:
Cash	$	10,346	$	-	$	-	$	10,346
Total financial assets	$	10,346	$	-	$	-	$	10,346

Financial liabilities:
Capital lease	$	9,352	$	-	$	-	$	9,352
Total financial liabilities	$	9,352	$	-	$	-	$	9,352

Results of Operations

We are a development stage company and have generated minimal revenues from operations since our inception on November 11, 2013 to June 30, 2018. As of June 30, 2018, we had total assets of $105,504 and total liabilities of $1,252,977. We expect we will require additional capital to meet our long term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities.

We are in the process of developing our products and services. Consequently, we generated minimal revenues as of the date of this report. We have an accumulated deficit and have incurred operating losses since our inception and expect losses to continue during 2018. As of June 30, 2018, the Company had accumulated deficits of $26,694,626 and working capital deficit of current liabilities exceeding current assets by $1,208,782. The Company’s management plans to raise capital through public and private offerings to fund its business operations and to rely on officers and directors to perform essential functions with minimal expenditure and compensation. If we do not raise the money we need from public or private offerings, we will have to find alternative sources, such as loans or advances from our officers, directors or others. Such additional financing may not become available on acceptable terms and there can be no assurance that any additional financing that the Company obtains will be sufficient to meet its needs in the long term. Even if the Company is able to obtain additional financing, the terms of such financing may contain undue restrictions on our operations in the case of debt financing, or cause substantial dilution for our stockholders in the case of equity financing. If we require additional cash and cannot raise it, we will either have to suspend operations or cease business entirely.

Three Months ended June 30, 2018 and 2017

Revenue

We generated revenues from our audio banking card operations (including software and hardware) in the past. We have no revenues during this quarter ended June 30, 2018 as compared to $422 of revenues during the three months ended June 30, 2017. Our revenue decreased by $422, or 100% during the three-month periods ended June 30, 2018 and 2017 primarily because the number of orders decreased.

Expenses

General and administrative and professional fee expenses were generally related to corporate overhead, financial and administrative contracted services, such as legal and accounting, developmental costs, and marketing expenses. During the three month periods ended June 30, 2018 and 2017, we incurred general and administrative expenses and professional fees of $547,532 and $267,023, respectively, which reflects an increase of $280,509 or approximately 105%. Such increase in our general and administrative expenses was primarily attributed to the stock compensation expense paid to the management in the three months ended June 30, 2018.

Six Months ended June 30, 2018 and 2017

Revenue

We generated revenues from our audio banking card operations (including software and hardware) in the six-month periods ended June 30, 2018 and 2017. We have earned $88,908 during the six months ended June 30, 2018 as compared to $209,061 of revenues during the six months ended June 30, 2017. Our revenue decreased by $120,153, or 57% during the three-month periods ended June 30, 2018 and 2017 primarily because the number of orders decreased.

Expenses

General, administrative and professional fee and expenses were generally related to corporate overhead, financial and administrative contracted services, such as legal and accounting, developmental costs, and marketing expenses. During the six month periods ended June 30, 2018 and 2017, we incurred general and administrative expenses and professional fees of $1,205,351 and $557,171, respectively, which reflects an increase of $648,180 or approximately 116%. Such increase in our general and administrative expenses was primarily attributed to the stock compensation expense paid to the management incurred during the six months ended June 30, 2018.

LIQUIDITY AND CAPITAL RESOURCES

Our primary liquidity and capital resource needs are to finance the costs of our operations, make capital expenditures and service our debt. We continue to be dependent on our ability to generate revenues, positive cash flows and additional financing.

Cash Flows

Cash Flow from Operating Activities

During the six months ended June 30, 2018 and 2017, the net cash used in operating activities were $206,683 and $413,720, respectively. The decrease in net cash used in operating activities of $207,037 was primarily due to the increased account payable and other payable.

Cash Flow from Investing Activities

During the six months ended June 30, 2018 and 2017, the net cash used in investing activities was $0 and $63,135, reflecting a decrease of $63,135. Such decrease in net cash used in investing activities was caused by the non-recurrence of the equipment purchase in the quarter ended June 30, 2018.

Cash Flow from Financing Activities

During the six months ended June 30, 2018 and 2017, the net cash generated from financing activities was $97,748 and $137,577, reflecting a decrease of $39,829. Our net cash generated from financing activities declined mainly because the financing generated from related parties was reduced.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

Recent Accounting Pronouncements

Except for rules and interpretive releases of the SEC under authority of federal securities laws and a limited number of grandfathered standards, the FASB Accounting Standards Codification™ (“ASC”) is the sole source of authoritative GAAP literature recognized by the FASB and applicable to our company. Management has reviewed the aforementioned rules and releases and believes any effect will not have a material impact on our company’s present or future consolidated financial statements.

As of June 30, 2018, except for the above, there are no recently issued accounting standards not yet adopted that would have a material effect on the Company’s financial statements.

Quantitative and Qualitative Disclosures About Market Risk

As a “smaller reporting company”, we are not required to provide the information required by this Item.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not applicable.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We conducted an evaluation of the effectiveness of our “disclosure controls and procedures” (“Disclosure Controls”), as defined by Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended, as of June 30, 2018, the end of the period covered by this Quarterly Report. The Disclosure Controls evaluation was done under the supervision and with the participation of management, including our chief executive officer and chief financial officer. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives. Based upon this evaluation, our chief executive officer and chief financial officer concluded that, due to our limited internal accounting staff, our disclosure controls were not effective as of June 30, 2018, such information required to be disclosed by us in reports filed under the Securities Exchange Act of 1934 is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to the president and treasurer, as appropriate to allow timely decisions regarding disclosure.

Changes in Internal Control over Financial Reporting

There were no changes in the Company’s internal control over financial reporting that occurred during the period covered by this Quarterly Report that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II

OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, we may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm business. We are currently not aware of any such legal proceedings or claims that will have, individually or in the aggregate, a material adverse effect on our business, financial condition or operating results.

ITEM 1A. RISK FACTORS

There have been no material changes for the risk factors disclosed in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2017 filed on April 16, 2018.

ITEM 2. UNREGISTERED SALE OF EQUITY SECURITIES AND USE OF PROCEEDS.

Not applicable.

ITEM 3. DEFAULT UPON SENIOR SECURITIES.

Not applicable.

ITEM 4. MINE SAFETY DISCLOSURE.

Not applicable.

ITEM 5. OTHER INFORMATION.

Not applicable.

ITEM 6. EXHIBITS

The following exhibits are filed herewith:

Exhibit No.		Description

10.1		Convertible Note Exchange Agreement by and among Wave Sync Corp, Zaixian Wang and Mei Yang, dated March 17, 2017 (Incorporated by reference to the Registrant’s Current Report on Form 8-K filed with the SEC on March 23, 2017)
31.1		Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934
31.2		Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934
32.1		Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2		Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS		XBRL Instance Document
101.SCH		XBRL Taxonomy Extension Schema Document
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		XBRL Taxonomy Extension Label Linkbase Document
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document

SIGNATURES

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

	WAVE SYNC CORP.

August 14, 2018	By:	/s/ Yang Liu
		Yang Liu
		Chief Executive Officer
		(Principal Executive Officer)

EX-31.1 2 f10q0618ex31-1_wavesync.htm CERTIFICATION

EXHIBIT 31.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Yang Liu, certify that:

1	I have reviewed this Quarterly Report on Form 10-Q of Wave Sync 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 an Quarterly 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.

Date: August 14, 2018	By	/s/ Yang Liu
		Yang Liu
		Chief Executive Officer
		(Principal Executive Officer)

EX-31.2 3 f10q0618ex31-2_wavesync.htm CERTIFICATION

EXHIBIT 31.2

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Ming Yi, certify that:

1	I have reviewed this Quarterly Report on Form 10-Q of Wave Sync 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 an Quarterly 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.

Date: August 14, 2018	By	/s/ Ming Yi
		Ming Yi
		Chief Financial Officer
		(Principal Finance and Accounting Officer)

EX-32.1 4 f10q0618ex32-1_wavesync.htm CERTIFICATION

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

SECTION 906 OF SARBANES-OXLEY ACT OF 2002

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

	1.	The Quarterly Report on Form 10-Q of Wave Sync Corp. (the “Company”) for the period ended June 30, 2018 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (U.S.C. 78m or 78o(d)); and

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

Date: August 14, 2018

By:

/s/ Yang Liu

Yang Liu

Chief Executive Officer

(Principal Executive Officer)

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

EX-32.2 5 f10q0618ex32-2_wavesync.htm CERTIFICATION

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

SECTION 906 OF SARBANES-OXLEY ACT OF 2002

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

	1.	The Quarterly Report on Form 10-Q of Wave Sync Corp. (the “Company”) for the period ended June 30, 2018 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (U.S.C. 78m or 78o(d)); and

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

Date: August 14, 2018

By:

/s/ Ming Yi

Ming Yi

Chief Financial Officer

(Principal Financial and Accounting Officer)

EX-101.INS 6 ways-20180630.xml XBRL INSTANCE FILE 0000860131 2018-01-01 2018-06-30 0000860131 2018-08-10 0000860131 2016-12-31 0000860131 2017-12-31 0000860131 2018-06-30 0000860131 ways:XiangZuyueMember 2017-12-31 0000860131 ways:XiangZuyueMember 2018-06-30 0000860131 us-gaap:CommonStockMember 2015-12-31 0000860131 us-gaap:CommonStockMember 2016-12-31 0000860131 us-gaap:CommonStockMember 2017-03-17 0000860131 2017-01-01 2017-06-30 0000860131 country:US 2018-01-01 2018-06-30 0000860131 ways:DingNengHoldingsMember 2010-12-06 0000860131 ways:XiangZuyueMember 2015-01-28 0000860131 ways:EgoosMobileTechnologyCompanyLimitedMember 2018-06-30 0000860131 ways:DingNengHoldingsMember 2010-12-01 2010-12-06 0000860131 ways:DingNengHoldingsMember us-gaap:SubsidiaryOfCommonParentMember 2010-10-01 2010-10-28 0000860131 ways:XiangZuyueMember 2015-01-01 2015-01-28 0000860131 ways:ShenzhenQianhaiExceCardTechnologyCompanyLimitedMember 2015-01-01 2015-01-28 0000860131 ways:ShenzhenQianhaiExceCardTechnologyCompanyLimitedMember 2015-07-01 2015-07-24 0000860131 ways:EgoosMobileTechnologyCompanyLimitedMember 2018-01-01 2018-06-30 0000860131 ways:EgoosMobileTechnologyCompanyLimitedMember 2016-02-01 2016-02-04 0000860131 srt:SubsidiariesMember 2018-01-01 2018-06-30 0000860131 ways:SubsidiariesOneMember 2018-01-01 2018-06-30 0000860131 ways:SubsidiariesTwoMember 2018-01-01 2018-06-30 0000860131 ways:SubsidiariesThreeMember 2018-01-01 2018-06-30 0000860131 ways:SubsidiariesFourMember 2018-01-01 2018-06-30 0000860131 ways:SubsidiariesFiveMember 2018-01-01 2018-06-30 0000860131 srt:SubsidiariesMember 2018-06-30 0000860131 ways:SubsidiariesOneMember 2018-06-30 0000860131 ways:SubsidiariesTwoMember 2018-06-30 0000860131 ways:SubsidiariesThreeMember 2018-06-30 0000860131 ways:SubsidiariesFourMember 2018-06-30 0000860131 ways:SubsidiariesFiveMember 2018-06-30 0000860131 us-gaap:FurnitureAndFixturesMember 2018-01-01 2018-06-30 0000860131 us-gaap:ComputerEquipmentMember 2018-01-01 2018-06-30 0000860131 ways:ExchangeRatesMember 2017-12-31 0000860131 ways:ExchangeRatesOneMember 2017-12-31 0000860131 ways:ExchangeRatesTwoMember 2017-12-31 0000860131 ways:ExchangeRatesThreeMember 2017-12-31 0000860131 ways:ExchangeRatesMember 2018-06-30 0000860131 ways:ExchangeRatesOneMember 2018-06-30 0000860131 ways:ExchangeRatesTwoMember 2018-06-30 0000860131 ways:ExchangeRatesThreeMember 2018-06-30 0000860131 us-gaap:FairValueInputsLevel1Member 2017-12-31 0000860131 us-gaap:FairValueInputsLevel2Member 2017-12-31 0000860131 us-gaap:FairValueInputsLevel3Member 2017-12-31 0000860131 us-gaap:FairValueInputsLevel1Member 2018-06-30 0000860131 us-gaap:FairValueInputsLevel2Member 2018-06-30 0000860131 us-gaap:FairValueInputsLevel3Member 2018-06-30 0000860131 ways:BeijingYuxinShangfangTechnologyCompanyLimitedMember 2017-12-31 0000860131 ways:LimJehnMingMember 2017-12-31 0000860131 ways:WangYueMember 2017-12-31 0000860131 ways:YangMeiMember 2017-12-31 0000860131 ways:LiPingMember 2017-12-31 0000860131 ways:BeijingYuxinShangfangTechnologyCompanyLimitedMember 2018-06-30 0000860131 ways:LimJehnMingMember 2018-06-30 0000860131 ways:WangYueMember 2018-06-30 0000860131 ways:YangMeiMember 2018-06-30 0000860131 ways:LiPingMember 2018-06-30 0000860131 us-gaap:OfficeEquipmentMember 2017-12-31 0000860131 us-gaap:FurnitureAndFixturesMember 2017-12-31 0000860131 us-gaap:MachineryAndEquipmentMember 2017-12-31 0000860131 us-gaap:OfficeEquipmentMember 2018-06-30 0000860131 us-gaap:FurnitureAndFixturesMember 2018-06-30 0000860131 us-gaap:MachineryAndEquipmentMember 2018-06-30 0000860131 us-gaap:PatentsMember 2017-12-31 0000860131 ways:SoftwareMember 2017-12-31 0000860131 us-gaap:PatentsMember 2018-06-30 0000860131 ways:SoftwareMember 2018-06-30 0000860131 ways:RMBMember 2017-07-07 0000860131 us-gaap:CommonStockMember 2017-03-01 2017-03-17 0000860131 2017-10-20 0000860131 us-gaap:ShareBasedCompensationAwardTrancheOneMember 2017-10-05 2017-10-20 0000860131 us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2017-10-05 2017-10-20 0000860131 us-gaap:ShareBasedCompensationAwardTrancheThreeMember 2017-10-05 2017-10-20 0000860131 2017-10-05 2017-10-20 0000860131 us-gaap:LeaseAgreementsMember 2016-06-01 2016-06-02 0000860131 2018-04-01 2018-04-23 0000860131 us-gaap:AccountsPayableMember ways:SupplierConcentrationRiskOneMember 2017-01-01 2017-06-30 0000860131 us-gaap:AccountsPayableMember ways:SupplierConcentrationRiskTwoMember 2017-01-01 2017-06-30 0000860131 us-gaap:SalesRevenueNetMember ways:CustomerOneMember 2017-01-01 2017-06-30 0000860131 us-gaap:SalesRevenueNetMember ways:CustomerTwoMember 2017-01-01 2017-06-30 0000860131 us-gaap:SalesRevenueNetMember ways:CustomerThreeMember 2017-01-01 2017-06-30 0000860131 us-gaap:AccountsPayableMember 2018-01-01 2018-06-30 0000860131 us-gaap:SalesRevenueNetMember 2018-01-01 2018-06-30 0000860131 us-gaap:CostOfGoodsTotalMember 2018-01-01 2018-06-30 0000860131 us-gaap:AccountsPayableMember 2017-06-30 0000860131 us-gaap:SalesRevenueNetMember 2017-06-30 0000860131 country:US 2018-06-30 0000860131 2018-04-01 2018-06-30 0000860131 2017-04-01 2017-06-30 0000860131 2017-06-30 0000860131 2017-07-07 0000860131 ways:DingNengHoldingsMember ways:RMBMember 2015-07-01 2015-07-14 0000860131 ways:DingNengHoldingsMember 2015-07-01 2015-07-14 0000860131 ways:ShenzhenQianhaiExceCardTechnologyCompanyLimitedMember ways:RMBMember 2015-01-01 2015-01-28 0000860131 ways:XiangZuyueMember ways:RMBMember 2015-01-01 2015-01-28 0000860131 ways:ShenzhenQianhaiExceCardTechnologyCompanyLimitedMember ways:RMBMember 2015-07-01 2015-07-24 0000860131 ways:GuangzhouRongshengInformationTechnologyCompanyLimitedMember ways:RMBMember 2015-03-16 0000860131 ways:ExchangeRatesMember 2017-06-30 0000860131 ways:ExchangeRatesOneMember 2017-06-30 0000860131 ways:ExchangeRatesTwoMember 2017-06-30 0000860131 ways:ExchangeRatesThreeMember 2017-06-30 0000860131 us-gaap:LeaseAgreementsMember 2016-08-29 2016-09-01 0000860131 us-gaap:SalesRevenueNetMember 2018-06-30 xbrli:shares iso4217:USD iso4217:USD xbrli:shares xbrli:pure ways:Vendors ways:Customers Wave Sync Corp. 0000860131 WAYS false --12-31 10-Q 2018-06-30 2018 Q2 Smaller Reporting Company 21027713

480609

10346

1820

148590

0.001

100000000

21027713

19920325

1106837

21027713

19920325

1.00

P5Y

P3Y

10346

1820

10346

1820

10346

1820

10346

1820

9352 9352

9352

685180

782928

60198

10513

302155

1289

161942

157110

2486

297012

1289

161233

308963

3918

104660

102878

19362

13446

71852

19032

13218

70628

37383

41570

4165

5821

3953374

1299

3952052

1322

1299

1322

1299

10000000

1447696

185

35000

6500

2440

12208

5270

874

875 24 2

2213673

The two note holders on April 6, 2017 and April 7, 2017. 1050000

350000

2022-10-19

0.00

0.0203

2022-10-19

1.00

6.0271

0.00

1208782 P3Y P6M P3Y

0.20

0.80

0.33

0.30

0.35

0.10

1.00

0.10

2 3 1

100000

4086466

104229

3121813

-1147473

-223357

-124675

-21452071

-26694626

24776214

25650801

21027

964653

1251702

964653

1251702

685180

782928

37440

18708

66142

201076

6145

900

159766

248090

9980

4086466

104229

4019329

61308

3952052

67277

61308

67137

42921

3927

5032

9346

36175

35559

7343

510

21027713

20565980

21027713

21027162

21027713

20565980

21027713

21027162

-0.25

-0.01

-0.22

-0.01

-0.25

-0.01

-0.22

-0.01

-98682

-7289

-113134

-1800

-5242555

-246159

-4586380

-134972

-4038824

102777

-4038848

131631

101159

131168

4038850

1835

680

-1203731

-348936

-547532

-266603

1205351

557171

547532

267023

1205351

557171

547532

267023

1620

208235

420

87288

826

88908

209061

422

-5242555

-246159

-4586380

-134972

4165

6006

3952129

-6043

142

-790

14793

-616

7399

-8241

1915

88324

-55855

-28711

-25496

134933

-64211

-5245

-3756

-206683

-413720

62065

-1070

-63135

-1275 -96982 99023 234559

97748

137577

-108935

-339278

100409

7258

26 1835

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif"> <td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif">F.</td><td style="text-align: justify; font: 10pt Times New Roman, Times, Serif">Contingencies</td></tr></table>   Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company’s management assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company’s management evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought.   If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed.   Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed.

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="width: 0.5in; background-color: White"> </td> <td style="text-align: justify; font-size: 10pt; width: 30%">Computer equipment</td> <td style="text-align: justify; font-size: 10pt">3 years</td> </tr> <tr style="vertical-align: top; background-color: White"> <td style="background-color: White"> </td> <td style="font-size: 10pt">Office furniture</td> <td style="font-size: 10pt">5 years</td> </tr> </table>

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="background-color: White"> </td> <td style="border-bottom: Black 1.5pt solid">Exchange Rates</td><td style="font-style: italic; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">6/30/2018</td><td style="padding-bottom: 1.5pt; font-style: italic"> </td><td style="font-style: italic; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">12/31/2017</td><td style="padding-bottom: 1.5pt; font-style: italic"> </td><td style="font-style: italic; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">6/30/2017</td><td style="padding-bottom: 1.5pt; font-style: italic"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White; width: 0.5in"> </td> <td style="text-align: left">Year-end/period-end RMB : US$ exchange rate</td><td style="width: 1%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 8%">6.6191</td><td style="text-align: left; width: 1%"> </td><td style="width: 1%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 8%">6.5064</td><td style="text-align: left; width: 1%"> </td><td style="width: 1%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 8%">6.7768</td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td style="text-align: left">Average annual/period RMB : US$ exchange rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6.3665</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6.7570</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6.8743</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td style="text-align: left">Year-end/period-end HKD : US$ exchange rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7.8453</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7.8149</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7.8056</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td style="text-align: left">Average annual/period HKD : US$ exchange rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7.8373</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7.7922</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7.7731</td><td style="text-align: left"> </td></tr> </table>

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"><tr style="vertical-align: bottom"><td>As of June 30, 2018:</td><td> </td> <td colspan="2" style="text-align: center">Quoted in</td><td> </td><td> </td> <td colspan="2" style="text-align: center">Significant</td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center">Active Markets</td><td> </td><td> </td> <td colspan="2" style="text-align: center">Other</td><td> </td><td> </td> <td colspan="2" style="text-align: center">Significant</td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center">for Identical</td><td> </td><td> </td> <td colspan="2" style="text-align: center">Observable</td><td> </td><td> </td> <td colspan="2" style="text-align: center">Unobservable</td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center">Assets</td><td> </td><td> </td> <td colspan="2" style="text-align: center">Inputs</td><td> </td><td> </td> <td colspan="2" style="text-align: center">Inputs</td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid">(Level 1)</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid">(Level 2)</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid">(Level 3)</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid">Total</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td>Financial assets:</td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; padding-bottom: 1.5pt">Cash</td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">1,820</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">1,820</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 4pt">Total financial assets</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,820</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">    -</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">     -</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,820</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Financial liabilities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Capital lease</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 4pt">Total financial liabilities</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table>    <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>As of December 31, 2017:</td><td> </td> <td colspan="2" style="text-align: center">Quoted in</td><td> </td><td> </td> <td colspan="2" style="text-align: center">Significant</td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center">Active Markets</td><td> </td><td> </td> <td colspan="2" style="text-align: center">Other</td><td> </td><td> </td> <td colspan="2" style="text-align: center">Significant</td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center">for Identical</td><td> </td><td> </td> <td colspan="2" style="text-align: center">Observable</td><td> </td><td> </td> <td colspan="2" style="text-align: center">Unobservable</td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center">Assets</td><td> </td><td> </td> <td colspan="2" style="text-align: center">Inputs</td><td> </td><td> </td> <td colspan="2" style="text-align: center">Inputs</td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid">(Level 1)</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid">(Level 2)</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid">(Level 3)</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid">Total</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td>Financial assets:</td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; padding-bottom: 1.5pt">Cash</td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">10,346</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">10,346</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 4pt">Total financial assets</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">10,346</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">    -</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">     -</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">10,346</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Financial liabilities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Capital lease</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">9,352</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">9,352</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 4pt">Total financial liabilities</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">9,352</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">9,352</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"><tr style="vertical-align: bottom"><td style="background-color: White"></td> <td> </td><td style="font-style: italic; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">6/30/2018</td><td style="padding-bottom: 1.5pt; font-style: italic"> </td><td style="font-style: italic; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">12/31/2017</td><td style="padding-bottom: 1.5pt; font-style: italic"> </td></tr> <tr style="vertical-align: bottom"> <td style="background-color: White"> </td> <td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="background-color: White"> </td> <td>At Cost:</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 0.25in; background-color: White"> </td> <td style="text-align: left; padding-left: 0.125in">Machinery</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">70,628</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">71,852</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td style="text-align: left; padding-left: 0.125in">Office equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">19,032</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">19,362</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Office furniture</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">13,218</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">13,446</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td style="padding-bottom: 1.5pt"> </td><td style="color: #0D0D0D; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: #0D0D0D; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; color: #0D0D0D; text-align: right">102,878</td><td style="padding-bottom: 1.5pt; color: #0D0D0D; text-align: left"> </td><td style="color: #0D0D0D; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: #0D0D0D; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; color: #0D0D0D; text-align: right">104,660</td><td style="padding-bottom: 1.5pt; color: #0D0D0D; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td style="font-style: italic; text-decoration: none; text-align: left; padding-bottom: 1.5pt">Less: Accumulated depreciation</td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: left; border-bottom: Black 1.5pt solid"> </td><td style="text-align: right; border-bottom: Black 1.5pt solid">(41,570</td><td style="text-align: left; padding-bottom: 1.5pt">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: left; border-bottom: Black 1.5pt solid"> </td><td style="text-align: right; border-bottom: Black 1.5pt solid">(37,383</td><td style="text-align: left; padding-bottom: 1.5pt">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td style="padding-bottom: 4pt"> </td><td style="color: #0D0D0D; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; color: #0D0D0D; text-align: left">$</td><td style="border-bottom: Black 4pt double; color: #0D0D0D; text-align: right">61,308</td><td style="padding-bottom: 4pt; color: #0D0D0D; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">67,277</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"><tr style="vertical-align: bottom"><td style="background-color: White"></td> <td> </td><td style="font-style: italic; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">6/30/2018</td><td style="padding-bottom: 1.5pt; font-style: italic"> </td><td style="font-style: italic; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">12/31/2017</td><td style="padding-bottom: 1.5pt; font-style: italic"> </td></tr> <tr style="vertical-align: bottom"> <td style="background-color: White"> </td> <td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="background-color: White"> </td> <td>At Cost:</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 0.25in; background-color: White"> </td> <td>Patent</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">3,952,052</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td style="padding-bottom: 1.5pt">Software</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,299</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,322</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td style="padding-bottom: 1.5pt"> </td><td style="color: #0D0D0D; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: #0D0D0D; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; color: #0D0D0D; text-align: right">1,299</td><td style="padding-bottom: 1.5pt; color: #0D0D0D; text-align: left"> </td><td style="color: #0D0D0D; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: #0D0D0D; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; color: #0D0D0D; text-align: right">3,953,374</td><td style="padding-bottom: 1.5pt; color: #0D0D0D; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td style="font-style: italic; text-decoration: none; text-align: left">Less: Accumulated amortization</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,299</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,322</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td style="padding-bottom: 4pt"> </td><td style="color: #0D0D0D; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; color: #0D0D0D; text-align: left">$</td><td style="border-bottom: Black 4pt double; color: #0D0D0D; text-align: right">-</td><td style="padding-bottom: 4pt; color: #0D0D0D; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">3,952,052</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="background-color: White"> </td> <td> </td> <td style="font-style: italic; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">6/30/2018</td> <td style="padding-bottom: 1.5pt; font-style: italic"> </td> <td style="font-style: italic; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">12/31/2017</td> <td style="padding-bottom: 1.5pt; font-style: italic"> </td> </tr> <tr style="vertical-align: bottom"> <td style="background-color: White"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 0.25in; background-color: White"> </td> <td style="text-align: left">Audit fee</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">6,500</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">35,000</td> <td style="width: 1%; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td style="padding-bottom: 1.5pt">Utilities</td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right">12,208</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right">2,440</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td style="padding-bottom: 4pt"> </td> <td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td> <td style="border-bottom: Black 4pt double; text-align: right">18,708</td> <td style="padding-bottom: 4pt; text-align: left"> </td> <td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td> <td style="border-bottom: Black 4pt double; text-align: right">37,440</td> <td style="padding-bottom: 4pt; text-align: left"> </td> </tr> </table>

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="background-color: White"> </td> <td style="padding-bottom: 1.5pt"></td><td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="text-align: center; border-bottom: Black 1.5pt solid">For the six month periods June 30,</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="background-color: White"> </td> <td style="padding-bottom: 1.5pt"></td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid">2017</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="background-color: White"> </td> <td>Current:</td><td> </td> <td colspan="2" style="text-align: center"></td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White; width: 0.25in"> </td> <td>USA</td><td style="width: 1%"> </td> <td style="text-align: left; width: 1%">$</td><td style="text-align: right; width: 8%">-</td><td style="text-align: left; width: 1%"> </td><td style="width: 1%"> </td> <td style="text-align: left; width: 1%">$</td><td style="text-align: right; width: 8%">-</td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td>Deferred:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td>USA</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td style="text-align: left">Provision for income taxes</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> </table>

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="background-color: White"> </td> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="text-align: center; border-bottom: Black 1.5pt solid">For the six month periods June 30,</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="background-color: White"> </td> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid">2017</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="background-color: White"> </td> <td> </td><td> </td> <td colspan="2" style="text-align: center"></td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 0.25in; background-color: White"> </td> <td style="text-align: left">Income tax at USA statutory rate of 34%</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td style="padding-bottom: 1.5pt">Others</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td style="text-align: left; padding-bottom: 4pt">Provision for income taxes</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="background-color: White"> </td> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the six months ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the three months ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="background-color: White"> </td> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="background-color: White"> </td> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="background-color: White"> </td> <td>Basic loss per share:</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="background-color: White"> </td> <td style="padding-left: 10pt">Numerator:</td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White; width: 0.25in"> </td> <td style="text-align: left; padding-bottom: 4pt; padding-left: 20pt">Net loss used in computing basic earnings per share</td><td style="padding-bottom: 4pt; width: 1%"> </td> <td style="border-bottom: Black 4pt double; text-align: left; width: 1%">$</td><td style="border-bottom: Black 4pt double; text-align: right; width: 8%">(5,242,555</td><td style="padding-bottom: 4pt; text-align: left; width: 1%">)</td><td style="padding-bottom: 4pt; width: 1%"> </td> <td style="border-bottom: Black 4pt double; text-align: left; width: 1%">$</td><td style="border-bottom: Black 4pt double; text-align: right; width: 8%">(246,157</td><td style="padding-bottom: 4pt; text-align: left; width: 1%">)</td><td style="padding-bottom: 4pt; width: 1%"> </td> <td style="border-bottom: Black 4pt double; text-align: left; width: 1%">$</td><td style="border-bottom: Black 4pt double; text-align: right; width: 8%">(4,586,380</td><td style="padding-bottom: 4pt; text-align: left; width: 1%">)</td><td style="padding-bottom: 4pt; width: 1%"> </td> <td style="border-bottom: Black 4pt double; text-align: left; width: 1%">$</td><td style="border-bottom: Black 4pt double; text-align: right; width: 8%">(134,972</td><td style="padding-bottom: 4pt; text-align: left; width: 1%">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td style="padding-left: 10pt">Denominator:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td style="padding-bottom: 4pt; padding-left: 20pt">Weighted average common shares outstanding</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">21,027,713</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">20,565,980</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">21,027,713</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">21,027,162</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td style="padding-bottom: 4pt">Basic loss per share</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(0.25</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(0.01</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(0.22</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(0.01</td><td style="padding-bottom: 4pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td>Diluted earnings per share:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td style="padding-left: 10pt">Numerator:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td style="text-align: left; padding-bottom: 4pt; padding-left: 20pt">Net loss used in computing diluted loss per share</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(5,242,555</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(246,157</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(4,586,380</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(134,972</td><td style="padding-bottom: 4pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td style="padding-left: 10pt">Denominator:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td style="padding-bottom: 4pt; padding-left: 20pt">Weighted average common shares outstanding</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">21,027,713</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">20,565,980</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">21,027,713</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">21,027,162</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td style="padding-bottom: 4pt">Diluted loss per share</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(0.25</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(0.01</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(0.22</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(0.01</td><td style="padding-bottom: 4pt; text-align: left">)</td></tr> </table>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="width: 18pt; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">11.</td><td style="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">GOING CONCERN UNCERTAINTIES</td></tr></table>   These financial statements have been prepared assuming that Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future.   As of June 30, 2018, the Company had accumulated deficits of $26,694,626 and working capital deficit of current liabilities exceeding current assets by $1,208,782. Management’s plan to support the Company in operations and to maintain its business strategy is to raise funds through public and private offerings and to rely on officers and directors to perform essential functions with minimal compensation. If we do not raise all of the money we need from public or private offerings, we will have to find alternative sources, such as loans or advances from our officers, directors or others. Such additional financing may not become available on acceptable terms and there can be no assurance that any additional financing that the Company does obtain will be sufficient to meet its needs in the long term. Even if the Company is able to obtain additional financing, it may contain undue restrictions on our operations, in the case of debt financing, or cause substantial dilution for our stockholders, in the case of equity financing. If we require additional cash and cannot raise it, we will either have to suspend operations or cease business entirely.   The accompanying financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="width: 18pt; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">14.</td><td style="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">SUBSEQUENT EVENT</td></tr></table>   The Company evaluates subsequent events that have occurred after the balance sheet date but before the financial statements are issued. There are two types of subsequent events: (1) recognized, or those that provide additional evidence with respect to conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements, and (2) non-recognized, or those that provide evidence with respect to conditions that did not exist at the date of the balance sheet but arose subsequent to that date.   The Company has evaluated subsequent events from June 30, 2018 through the date the financial statements were available to be issued. There was no subsequent event at the report date .

1.00

0.40

1.00

26162505

0.001

(1) a Consulting Service Agreement with Ding Neng Bio-tech, which entitled WFOE to receive substantially all of the economic benefits of Ding Neng Bio-tech in consideration for services provided by WFOE to Ding Neng Bio-tech, (2) an Option Agreement with Xinfeng Nie, Sanfu Huang, and Shunlong Hu (the shareholders of Ding Neng Bio-tech) allowing the WFOE to acquire all the shares of Ding Neng Bio-tech as permitted by PRC laws, (3) a Voting Rights Proxy Agreement that provides WFOE with the all voting rights of the Ding Neng Bio-tech shareholders, and (4) an Equity Pledge Agreement that pledges the shares in Ding Neng Bio-tech to WFOE (VIE Agreements).

10000

1611

On October 19, 2015, the Company entered into a Share Purchase Agreement (the “Share Purchase Agreement”) with EGOOS Mobile Technology Company Limited, a British Virgin Islands holding company (“EGOOS BVI”), which owns 100% of EGOOS Mobile Technology Company Limited, a Hong Kong company (“EGOOS HK”), which owns 100% of Move the Purchase Consulting Management (Shenzhen) Co., Ltd. (“WOFE”), a foreign investment enterprise organized under the laws of the PRC, and which has, through various contractual agreements known as variable interest entity (“VIE”) agreements.  These VIE agreements provide the WOFE management control and the rights to the profits of Guangzhou Yuzhi Information Technology Co., Ltd., a corporation organized under the laws of the PRC as a variable interest entity (“GZYZ”), which owns 100% of Shenzhen Qianhai Exce-card Technology Co., Ltd., a Chinese corporation (“SQEC”), which owns 100% of Guangzhou Rongsheng Information Technology Co., Ltd., a Chinese corporation (“GZRS”) and the sole shareholder of EGOOS BVI.

651625

1629062

10000000

4000000

10000000

1000000

(i) the Company has effectuated a reverse split of all of the issued and outstanding Common Stock as of the date of the issuance of the note (the "Reverse Split") and (ii) the average closing price of the common stock for 3 business days within any period of 10 consecutive business days exceeds $1.00 per share (the "Conversion Conditions"). Upon conversion of the note, the existing shareholders of the Registrant will own an aggregate of 24.7% of the post-acquisition entity.

15000000

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="background-color: White"> </td> <td style="font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">Name of Company</td><td style="font-style: italic; padding-bottom: 1.5pt"> </td> <td style="font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">Place of incorporation</td><td style="font-style: italic; padding-bottom: 1.5pt"> </td> <td style="font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">Attributable equity interest %</td><td style="font-style: italic; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">Registered capital</td><td style="padding-bottom: 1.5pt; font-style: italic"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 0.5in; background-color: White"> </td> <td style="text-align: left">EGOOS Mobile Technology Company Limited (“EGOOS BVI”)</td><td style="width: 1%"> </td> <td style="width: 13%; text-align: center">BVI</td><td style="width: 1%"> </td> <td style="width: 10%; text-align: center">100%</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">1</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td style="text-align: left">EGOOS Mobile Technology Company Limited (“EGOOS HK”)</td><td> </td> <td style="text-align: center">Hong Kong</td><td> </td> <td style="text-align: center">100%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,290</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">Move the Purchase Consulting Management (Shenzhen) Co., Ltd. (“WOFE”)</td><td> </td> <td style="text-align: center">P.R.C. (WOFE)</td><td> </td> <td style="text-align: center">100%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td style="text-align: left">Guangzhou Yuzhi Information Technology Co., Ltd. (“GZYZ”)</td><td> </td> <td style="text-align: center">P.R.C.</td><td> </td> <td style="text-align: center">100%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">150,527</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td style="text-align: left">Shenzhen Qianhai Exce-card Technology Co., Ltd. (“SQEC”)</td><td> </td> <td style="text-align: center">P.R.C.</td><td> </td> <td style="text-align: center">100%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">150,527</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td style="text-align: left">Guangzhou Rongsheng Information Technology Co., Ltd. (“GZRS”)</td><td> </td> <td style="text-align: center">P.R.C.</td><td> </td> <td style="text-align: center">100%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,505,267</td><td style="text-align: left"> </td></tr></table>

EGOOS Mobile Technology Company Limited ("EGOOS BVI") EGOOS Mobile Technology Company Limited ("EGOOS HK") Move the Purchase Consulting Management (Shenzhen) Co., Ltd. ("WOFE") Guangzhou Yuzhi Information Technology Co., Ltd. ("GZYZ") Shenzhen Qianhai Exce-card Technology Co., Ltd. ("SQEC") Guangzhou Rongsheng Information Technology Co., Ltd. ("GZRS") BVI Hong Kong P.R.C. (WOFE) P.R.C. P.R.C. P.R.C. 1 1290 150527 150527 1505267

6.5064

6.7570

7.8149

7.7922

6.6191

6.3665

7.8453

7.8373

6.7768

6.8743

7.8056

7.7731

0.10

874587

0.34

-5143873

-238870

-4473246

-133172

833

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif"><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif">2.</td><td style="font: 10pt Times New Roman, Times, Serif">SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</td></tr></table>    <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif"> <td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif">A.</td><td style="text-align: justify; font: 10pt Times New Roman, Times, Serif">Method of Accounting</td></tr></table>   The Company maintains its general ledger and journals with the accrual method of accounting for financial reporting purposes. The financial statements and notes are representations of management. Accounting policies adopted by the Company conform to generally accepted accounting principles in the United States of America and have been consistently applied in the presentation of financial statements.   <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif"> <td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif">B.</td><td style="text-align: justify; font: 10pt Times New Roman, Times, Serif">Basis of Presentation</td></tr></table>   The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”).   <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif"> <td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif">C.</td><td style="font: 10pt Times New Roman, Times, Serif">Principles of Consolidation</td></tr></table>   The consolidated financial statements include the accounts of the Company, its subsidiaries for which the Company is the primary beneficiary. All significant inter-company accounts and transactions have been eliminated. The consolidated financial statements include 100% of assets, liabilities, and net income or loss of those wholly-owned subsidiaries.   As of June 30, 2018, the detailed identities of the consolidating subsidiaries are as follows:   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="background-color: White"> </td> <td style="font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">Name of Company</td><td style="font-style: italic; padding-bottom: 1.5pt"> </td> <td style="font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">Place of incorporation</td><td style="font-style: italic; padding-bottom: 1.5pt"> </td> <td style="font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">Attributable equity interest %</td><td style="font-style: italic; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">Registered capital</td><td style="padding-bottom: 1.5pt; font-style: italic"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 0.5in; background-color: White"> </td> <td style="text-align: left">EGOOS Mobile Technology Company Limited (“EGOOS BVI”)</td><td style="width: 1%"> </td> <td style="width: 13%; text-align: center">BVI</td><td style="width: 1%"> </td> <td style="width: 10%; text-align: center">100%</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">1</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td style="text-align: left">EGOOS Mobile Technology Company Limited (“EGOOS HK”)</td><td> </td> <td style="text-align: center">Hong Kong</td><td> </td> <td style="text-align: center">100%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,290</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">Move the Purchase Consulting Management (Shenzhen) Co., Ltd. (“WOFE”)</td><td> </td> <td style="text-align: center">P.R.C. (WOFE)</td><td> </td> <td style="text-align: center">100%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td style="text-align: left">Guangzhou Yuzhi Information Technology Co., Ltd. (“GZYZ”)</td><td> </td> <td style="text-align: center">P.R.C.</td><td> </td> <td style="text-align: center">100%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">150,527</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td style="text-align: left">Shenzhen Qianhai Exce-card Technology Co., Ltd. (“SQEC”)</td><td> </td> <td style="text-align: center">P.R.C.</td><td> </td> <td style="text-align: center">100%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">150,527</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td style="text-align: left">Guangzhou Rongsheng Information Technology Co., Ltd. (“GZRS”)</td><td> </td> <td style="text-align: center">P.R.C.</td><td> </td> <td style="text-align: center">100%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,505,267</td><td style="text-align: left"> </td></tr> </table>   <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif"> <td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif">D.</td><td style="font: 10pt Times New Roman, Times, Serif">Unaudited Interim Financial Information</td></tr></table>    These unaudited interim condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial reporting and the rules and regulations of the Securities and Exchange Commission that allow for reduced disclosure for interim periods. Therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. In the opinion of management, all adjustments of a normal recurring nature necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented have been made. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the year ending December 31, 2018.   The consolidated balance sheets and certain comparative information as of December 31, 2017 are derived from the audited consolidated financial statements and related notes for the year ended December 31, 2017 (“2017 Annual Financial Statements”), included in the Company’s 2017 Annual Report on Form 10-K. These unaudited interim condensed consolidated financial statements should be read in conjunction with the 2017 Annual Financial Statements.   <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif"> <td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif">E.</td><td style="text-align: justify; font: 10pt Times New Roman, Times, Serif">Use of estimates</td></tr></table>   The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates are used for, but not limited to, the accounting for certain items such as allowance for doubtful accounts, depreciation and amortization, impairment, inventory allowance, taxes and contingencies.   <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif"> <td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif">F.</td><td style="text-align: justify; font: 10pt Times New Roman, Times, Serif">Contingencies</td></tr></table>   Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company’s management assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company’s management evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought.   If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed.   Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed.   <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif"> <td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif">G.</td><td style="text-align: justify; font: 10pt Times New Roman, Times, Serif">Cash and cash equivalents</td></tr></table>   The Company classifies the following instruments as cash and cash equivalents: cash on hand, unrestricted bank deposits, and all highly liquid investments purchased with original maturities of three months or less.   <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif"> <td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif">H.</td><td style="text-align: justify; font: 10pt Times New Roman, Times, Serif">Accounts receivable</td></tr></table>   Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred.    <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif"> <td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif">I.</td><td style="text-align: justify; font: 10pt Times New Roman, Times, Serif">Other receivables </td></tr></table>   Other receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An allowance for doubtful accounts is made when recovery of the full amount is doubtful.   <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif"> <td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif">J.</td><td style="font: 10pt Times New Roman, Times, Serif">Property, plant and equipment</td></tr></table>    Plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method with a salvage value of 10%. Estimated useful lives of the plant and equipment are as follows:    <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="width: 0.5in; background-color: White"> </td> <td style="text-align: justify; font-size: 10pt; width: 30%">Computer equipment</td> <td style="text-align: justify; font-size: 10pt">3 years</td></tr> <tr style="vertical-align: top; background-color: White"> <td style="background-color: White"> </td> <td style="font-size: 10pt">Office furniture</td> <td style="font-size: 10pt">5 years</td></tr> </table>   The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of income. The cost of maintenance and repairs is charged to income as incurred, whereas significant renewals and betterments are capitalized.   <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif"> <td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif">K.</td><td style="text-align: justify; font: 10pt Times New Roman, Times, Serif">Accounting for the Impairment of Long-lived assets</td></tr></table>   The long-lived assets held by the Company are reviewed in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Subtopic 360-10-35, “Accounting for the Impairment or Disposal of Long-Lived Assets,” for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. It is reasonably possible that these assets could become impaired as a result of technology or other industry changes. Impairment is present if carrying amount of an asset is less than its undiscounted cash flows to be generated.   If an asset is considered impaired, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The Company assessed the carrying value and has taken impairment losses to its assets during 2018.   <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif"> <td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif">L.</td><td style="text-align: justify; font: 10pt Times New Roman, Times, Serif">Income taxes</td></tr></table>   The Company uses the accrual method of accounting to determine income taxes for the year. The Company has implemented FASB ASC 740 Accounting for Income Taxes. Income tax liabilities computed according to the United States, People’s Republic of China (PRC), and Hong Kong tax laws provide for the tax effects of transactions reported in the financial statements and consists of taxes currently due, plus deferred taxes, related primarily to differences arising from the recognition of expenses related to the depreciation of plant and equipment, amortization of intangible assets, and provisions for doubtful accounts between financial and tax reporting. The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will be either taxable or deductible when the assets and liabilities are recovered or settled. Deferred taxes also are recognized for operating losses that are available to offset future income taxes.   A valuation allowance is recognized for deferred tax assets if it is more likely than not, that the deferred tax assets will either expire before the Company is able to realize that tax benefit, or that future realization is uncertain.    <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif"> <td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif">M.</td><td style="text-align: justify; font: 10pt Times New Roman, Times, Serif">Stock-based compensation</td></tr></table>   The Company has elected to use the Black-Scholes-Merton (“BSM”) pricing model to determine the fair value of stock options on the dates of grant. Also, the Company recognizes stock-based compensation using the straight-line method over the requisite service period.   The Company values stock awards using the market price on or around the date the shares were awarded and includes the amount of compensation as a period compensation expense over the requisite service period.   For the three month periods ended June 30, 2018 and 2017, $874,587 and $0 stock-based compensation was recognized.   <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif"> <td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif">N.</td><td style="text-align: justify; font: 10pt Times New Roman, Times, Serif">Foreign currency translation</td></tr></table>   The accompanying financial statements are presented in United States dollars. The functional currency of the Company is the Renminbi (RMB) and Hong Kong dollar (HKD). The financial statements are translated into United States dollars from RMB at year-end exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred.    <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="background-color: White"> </td> <td style="border-bottom: Black 1.5pt solid">Exchange Rates</td><td style="font-style: italic; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">6/30/2018</td><td style="padding-bottom: 1.5pt; font-style: italic"> </td><td style="font-style: italic; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">12/31/2017</td><td style="padding-bottom: 1.5pt; font-style: italic"> </td><td style="font-style: italic; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">6/30/2017</td><td style="padding-bottom: 1.5pt; font-style: italic"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 0.5in; background-color: White"> </td> <td style="text-align: left">Year-end/period-end RMB : US$ exchange rate</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 8%; text-align: right">6.6191</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 8%; text-align: right">6.5064</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 8%; text-align: right">6.7768</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td style="text-align: left">Average annual/period RMB : US$ exchange rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6.3665</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6.7570</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6.8743</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td style="text-align: left">Year-end/period-end HKD : US$ exchange rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7.8453</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7.8149</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7.8056</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td style="text-align: left">Average annual/period HKD : US$ exchange rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7.8373</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7.7922</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7.7731</td><td style="text-align: left"> </td></tr> </table>   The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US Dollar at the rates used in translation.   <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif"> <td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif">O.</td><td style="text-align: justify; font: 10pt Times New Roman, Times, Serif">Revenue recognition</td></tr></table>   The Company recognizes services revenue when the following criteria have been met: 1.) it has agreed and entered into a contract for service with it customers, 2.) the contract has set forth a fixed fee for the services to be rendered, 3.) the Company has fully rendered service to its customers, and there are no additional obligations that exist that under the terms of the contract that the Company has not fulfilled, and 4.) the Company has either received payment, or reasonably expects payment from the customer in accordance with the payment terms set forth in the contract.   <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif"> <td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif">P.</td><td style="text-align: justify; font: 10pt Times New Roman, Times, Serif">Earnings per share</td></tr></table>   Basic earnings per share is computed on the basis of the weighted average number of common stock outstanding during the period. Diluted earnings per share is computed on the basis of the weighted average number of common stock and common stock equivalents outstanding. Dilutive securities having an anti-dilutive effect on diluted earnings per share are excluded from the calculation.   Dilution is computed by applying the treasury stock method for options and warrants. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period.   <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif"> <td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif">Q.</td><td style="text-align: justify; font: 10pt Times New Roman, Times, Serif">Comprehensive loss</td></tr></table>   Comprehensive income (loss) is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. The Company presents components of comprehensive income with equal prominence to other financial statements. The Company’s current component of other comprehensive income is the foreign currency translation adjustment.   <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif"> <td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif">R.</td><td style="font: 10pt Times New Roman, Times, Serif">Subsequent events</td></tr></table>    The Company evaluates subsequent events that have occurred after the balance sheet date but before the financial statements are issued. There are two types of subsequent events: (1) recognized, or those that provide additional evidence with respect to conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements, and (2) non-recognized, or those that provide evidence with respect to conditions that did not exist at the date of the balance sheet but arose subsequent to that date.     <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif"> <td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif">S.</td><td style="text-align: justify; font: 10pt Times New Roman, Times, Serif">Recent accounting pronouncements</td></tr></table>   In January 2017, the Financial Accounting Standard Board (“FASB”) issued guidance, which simplifies the accounting for goodwill impairment. The updated guidance eliminates Step 2 of the impairment test, which requires entities to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. The Company is still assessing the impact of this pronouncement to its financial statements.   As of June 30, 2018, except for the above, there are no recently issued accounting standards not yet adopted that would have a material effect on the Company’s financial statements.   <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif"> <td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif">T.</td><td style="text-align: justify; font: 10pt Times New Roman, Times, Serif">Fair Value of Financial Instruments</td></tr></table>   ASC 825, Financial Instruments, requires that the Company discloses estimated fair values of financial instruments. The carrying amounts reported in the balance sheets for current assets and current liabilities qualifying as financial instruments are a reasonable estimate of fair value.   The Company applies the provisions of ASC 820-10, Fair Value Measurements and Disclosures. ASC 820-10 defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. For certain financial instruments, including cash and cash equivalents, loan receivables and short-term bank loans, the carrying amounts approximate fair value due to their relatively short maturities. The three levels of valuation hierarchy are defined as follows:   <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif"> <td style="width: 0.75in; font: 10pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.</td></tr></table>   <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif"> <td style="width: 0.75in; font: 10pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">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 asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.</td></tr></table>   <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif"> <td style="width: 0.75in; font: 10pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.</td></tr></table>    The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815.   The following tables present the Company’s financial assets and liabilities at fair value in accordance to ASC 820-10   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>As of June 30, 2018:</td><td> </td> <td colspan="2" style="text-align: center">Quoted in</td><td> </td><td> </td> <td colspan="2" style="text-align: center">Significant</td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center">Active Markets</td><td> </td><td> </td> <td colspan="2" style="text-align: center">Other</td><td> </td><td> </td> <td colspan="2" style="text-align: center">Significant</td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center">for Identical</td><td> </td><td> </td> <td colspan="2" style="text-align: center">Observable</td><td> </td><td> </td> <td colspan="2" style="text-align: center">Unobservable</td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center">Assets</td><td> </td><td> </td> <td colspan="2" style="text-align: center">Inputs</td><td> </td><td> </td> <td colspan="2" style="text-align: center">Inputs</td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid">(Level 1)</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid">(Level 2)</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid">(Level 3)</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid">Total</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td>Financial assets:</td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; padding-bottom: 1.5pt">Cash</td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">1,820</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">1,820</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 4pt">Total financial assets</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,820</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">    -</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">     -</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,820</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Financial liabilities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Capital lease</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 4pt">Total financial liabilities</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table>    <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>As of December 31, 2017:</td><td> </td> <td colspan="2" style="text-align: center">Quoted in</td><td> </td><td> </td> <td colspan="2" style="text-align: center">Significant</td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center">Active Markets</td><td> </td><td> </td> <td colspan="2" style="text-align: center">Other</td><td> </td><td> </td> <td colspan="2" style="text-align: center">Significant</td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center">for Identical</td><td> </td><td> </td> <td colspan="2" style="text-align: center">Observable</td><td> </td><td> </td> <td colspan="2" style="text-align: center">Unobservable</td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center">Assets</td><td> </td><td> </td> <td colspan="2" style="text-align: center">Inputs</td><td> </td><td> </td> <td colspan="2" style="text-align: center">Inputs</td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid">(Level 1)</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid">(Level 2)</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid">(Level 3)</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid">Total</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td>Financial assets:</td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; padding-bottom: 1.5pt">Cash</td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">10,346</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">10,346</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 4pt">Total financial assets</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">10,346</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">    -</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">     -</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">10,346</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Financial liabilities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Capital lease</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">9,352</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">9,352</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 4pt">Total financial liabilities</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">9,352</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">9,352</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif"><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif">D.</td><td style="font: 10pt Times New Roman, Times, Serif">Unaudited Interim Financial Information</td></tr></table>    These unaudited interim condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial reporting and the rules and regulations of the Securities and Exchange Commission that allow for reduced disclosure for interim periods. Therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. In the opinion of management, all adjustments of a normal recurring nature necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented have been made. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the year ending December 31, 2018.   The consolidated balance sheets and certain comparative information as of December 31, 2017 are derived from the audited consolidated financial statements and related notes for the year ended December 31, 2017 (“2017 Annual Financial Statements”), included in the Company’s 2017 Annual Report on Form 10-K. These unaudited interim condensed consolidated financial statements should be read in conjunction with the 2017 Annual Financial Statements.

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="background-color: White"> </td> <td style="text-align: justify"> </td><td style="font-style: italic; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">6/30/2018</td><td style="padding-bottom: 1.5pt; font-style: italic"> </td><td style="font-style: italic; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">12/31/2017</td><td style="padding-bottom: 1.5pt; font-style: italic"> </td></tr> <tr style="vertical-align: bottom"> <td style="background-color: White"> </td> <td style="text-align: justify"> </td><td style="font-style: italic"> </td> <td colspan="2" style="font-style: italic; text-align: center"> </td><td style="font-style: italic"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 0.25in; background-color: White"> </td> <td style="text-align: justify">Beijing Yuxin Shangfang Technology Co., Ltd.</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">297,012</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">302,155</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td style="text-align: justify">Xiang, Zuyue, director of SQEC and shareholder</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,513</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">60,198</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td style="text-align: justify">Lim, Jehn Ming, shareholder of EGOOS BVI</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,289</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,289</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td style="text-align: justify">Wang, Yue, director of EGOOS HK</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">161,233</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">161,942</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td style="text-align: justify">Yang, Mei, shareholder</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">308,963</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">157,110</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td style="text-align: justify; padding-bottom: 1.5pt">Li, Ping, director of WOFE</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,918</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,486</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td style="text-align: justify; padding-bottom: 4pt"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">782,928</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">685,180</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="width: 18pt; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">10.</td><td style="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">LOSS PER SHARE</td></tr></table>   Basic loss per common share from operations attributable to the Company is based on the weighted-average common shares outstanding during the relevant period. Diluted loss per common share from continuing operations attributable to the Company is based on the weighted-average common shares outstanding during the relevant period adjusted for the dilutive effect of share-based awards. The Company did not have significant share-based awards outstanding that were antidilutive and not included in the calculation of diluted loss per common share from operations attributable to the Company for the three and six-month periods ended June 30, 2018 and 2017.   The following table sets forth the computation of basic and diluted earnings per share of common stock:   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="background-color: White"> </td> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the six months ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the three months ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="background-color: White"> </td> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="background-color: White"> </td> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="background-color: White"> </td> <td>Basic loss per share:</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="background-color: White"> </td> <td style="padding-left: 10pt">Numerator:</td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 0.25in; background-color: White"> </td> <td style="text-align: left; padding-bottom: 4pt; padding-left: 20pt">Net loss used in computing basic earnings per share</td><td style="width: 1%; padding-bottom: 4pt"> </td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left">$</td><td style="width: 8%; border-bottom: Black 4pt double; text-align: right">(5,242,555</td><td style="width: 1%; padding-bottom: 4pt; text-align: left">)</td><td style="width: 1%; padding-bottom: 4pt"> </td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left">$</td><td style="width: 8%; border-bottom: Black 4pt double; text-align: right">(246,157</td><td style="width: 1%; padding-bottom: 4pt; text-align: left">)</td><td style="width: 1%; padding-bottom: 4pt"> </td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left">$</td><td style="width: 8%; border-bottom: Black 4pt double; text-align: right">(4,586,380</td><td style="width: 1%; padding-bottom: 4pt; text-align: left">)</td><td style="width: 1%; padding-bottom: 4pt"> </td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left">$</td><td style="width: 8%; border-bottom: Black 4pt double; text-align: right">(134,972</td><td style="width: 1%; padding-bottom: 4pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td style="padding-left: 10pt">Denominator:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td style="padding-bottom: 4pt; padding-left: 20pt">Weighted average common shares outstanding</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">21,027,713</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">20,565,980</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">21,027,713</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">21,027,162</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td style="padding-bottom: 4pt">Basic loss per share</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(0.25</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(0.01</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(0.22</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(0.01</td><td style="padding-bottom: 4pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td>Diluted earnings per share:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td style="padding-left: 10pt">Numerator:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td style="text-align: left; padding-bottom: 4pt; padding-left: 20pt">Net loss used in computing diluted loss per share</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(5,242,555</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(246,157</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(4,586,380</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(134,972</td><td style="padding-bottom: 4pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td style="padding-left: 10pt">Denominator:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="background-color: White"> </td> <td style="padding-bottom: 4pt; padding-left: 20pt">Weighted average common shares outstanding</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">21,027,713</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">20,565,980</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">21,027,713</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">21,027,162</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="background-color: White"> </td> <td style="padding-bottom: 4pt">Diluted loss per share</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(0.25</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(0.01</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(0.22</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(0.01</td><td style="padding-bottom: 4pt; text-align: left">)</td></tr> </table>   Dilutive securities having an anti-dilutive effect on diluted (loss) earnings per share are excluded from the calculation.

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="width: 18pt; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">12.</td><td style="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">COMMITMENTS</td></tr></table>   <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px; font-size: 10pt">(a.)</td> <td style="text-align: justify; font-size: 10pt">On June 2, 2016, the Company entered into a lease agreement for office space in Guangzhou city, Guangdong Province, P.R.C. commencing on June 1, 2016 for a three-year lease term. The Company terminated its lease in May 2018 and vacated the premise. The Company did not have any lease payable outstanding as of June 30, 2018.</td></tr> </table>   <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px; font-size: 10pt">(b.)</td> <td style="text-align: justify; font-size: 10pt">On September 1, 2016, Mr. Zuyue Xiang entered into a lease agreement on behalf of the Company for office space in Guangdong Province, P.R.C. commencing on September 1, 2016 for a three-year lease term. The Company terminated its lease in May 2018 and vacated the premise.  The Company did not have any lease payable outstanding June 30, 2018.</td></tr> </table>   <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px; font-size: 10pt">(c.)</td> <td style="text-align: justify; font-size: 10pt">On April 23, 2018, the Company entered into a sublease agreement for office space in New Jersey commencing on April 23, 2018 for a six-month lease term. The monthly rental expense is $833.33.</td></tr></table>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr style="vertical-align: top"><td style="width: 24px; font-size: 10pt">13.</td> <td style="text-align: justify; font-size: 10pt">CONCENTRATION OF RISKS</td></tr> </table>   <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px; font-size: 10pt">A.</td> <td style="text-align: justify; font-size: 10pt">Major Customer</td></tr> </table>   The Company had certain customers who represented 10% or more of the Company’s total sales. For the six month period ended June 30, 2018, the Company generated service revenue from one customer, which represented 100% of the revenue. For the six month period ended June 30, 2017, the Company generated service revenue from three customers, which represented 33%, 30%, and 35% of the revenue. The Company is unable to forecast if re-occurring services revenue will be generated from these customers.   <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px; font-size: 10pt">B.</td> <td style="text-align: justify; font-size: 10pt">Major Vendors and Accounts Payable</td></tr> </table>   The Company had certain vendors who represented 10% or more of the Company’s total cost of sales or expenses, or whose accounts payable balances individually represented 10% or more of the Company’s total accounts payable. For the six month period ended June 30, 2018, there was no concentration in any specific vendor. For the six-month period ended June 30, 2017, two vendors accounted for 20% and 80% of accounts payable, respectively.   <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px; font-size: 10pt">C.</td> <td style="text-align: justify; font-size: 10pt">Credit Risk</td></tr> </table>   The Company maintains cash balances at several financial institutions located in the United States and the PRC. Accounts located in the United States are insured by the Federal Deposit Insurance Corporation up to $100,000. Accounts located outside of the United States are not insured and may be subject to such risk.

217

EX-101.SCH 7 ways-20180630.xsd XBRL SCHEMA FILE 00000001 - Document - Document and Entity Information link:presentationLink link:calculationLink link:definitionLink 00000002 - Statement - Unaudited Condensed Consolidated Balance Sheets link:presentationLink link:calculationLink link:definitionLink 00000003 - Statement - Unaudited Condensed Consolidated Balance Sheets (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 00000004 - Statement - Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss link:presentationLink link:calculationLink link:definitionLink 00000005 - Statement - Unaudited Condensed Consolidated Statements of Cash Flow link:presentationLink link:calculationLink link:definitionLink 00000006 - Disclosure - The Company and Principal Business Activities link:presentationLink link:calculationLink link:definitionLink 00000007 - Disclosure - Summary of Significant Accounting Policies link:presentationLink link:calculationLink link:definitionLink 00000008 - Disclosure - Related Party Payables link:presentationLink link:calculationLink link:definitionLink 00000009 - Disclosure - Property, Plant and Equipment link:presentationLink link:calculationLink link:definitionLink 00000010 - Disclosure - Intangible Asset link:presentationLink link:calculationLink link:definitionLink 00000011 - Disclosure - Accrued Expenses link:presentationLink link:calculationLink link:definitionLink 00000012 - Disclosure - Taxes Payables link:presentationLink link:calculationLink link:definitionLink 00000013 - Disclosure - Stockholders' Equity link:presentationLink link:calculationLink link:definitionLink 00000014 - Disclosure - Income Taxes link:presentationLink link:calculationLink link:definitionLink 00000015 - Disclosure - Loss Per Share link:presentationLink link:calculationLink link:definitionLink 00000016 - Disclosure - Going Concern Uncertainties link:presentationLink link:calculationLink link:definitionLink 00000017 - Disclosure - Commitments link:presentationLink link:calculationLink link:definitionLink 00000018 - Disclosure - Concentration of Risks link:presentationLink link:calculationLink link:definitionLink 00000019 - Disclosure - Subsequent Event link:presentationLink link:calculationLink link:definitionLink 00000020 - Disclosure - Summary of Significant Accounting Policies (Policies) link:presentationLink link:calculationLink link:definitionLink 00000021 - Disclosure - Summary of Significant Accounting Policies (Tables) link:presentationLink link:calculationLink link:definitionLink 00000022 - Disclosure - Related Party Payables (Tables) link:presentationLink link:calculationLink link:definitionLink 00000023 - Disclosure - Property, Plant and Equipment (Tables) link:presentationLink link:calculationLink link:definitionLink 00000024 - Disclosure - Intangible Asset (Tables) link:presentationLink link:calculationLink link:definitionLink 00000025 - Disclosure - Accrued Expenses (Tables) link:presentationLink link:calculationLink link:definitionLink 00000026 - Disclosure - Taxes Payables (Tables) link:presentationLink link:calculationLink link:definitionLink 00000027 - Disclosure - Income Taxes (Tables) link:presentationLink link:calculationLink link:definitionLink 00000028 - Disclosure - Loss Per Share (Tables) link:presentationLink link:calculationLink link:definitionLink 00000029 - Disclosure - The Company and Principal Business Activities (Details) link:presentationLink link:calculationLink link:definitionLink 00000030 - Disclosure - Summary of Significant Accounting Policies (Details) link:presentationLink link:calculationLink link:definitionLink 00000031 - Disclosure - Summary of Significant Accounting Policies (Details 1) link:presentationLink link:calculationLink link:definitionLink 00000032 - Disclosure - Summary of Significant Accounting Policies (Details 2) link:presentationLink link:calculationLink link:definitionLink 00000033 - Disclosure - Summary of Significant Accounting Policies (Details 3) link:presentationLink link:calculationLink link:definitionLink 00000034 - Disclosure - Summary of Significant Accounting Policies (Details Textual) link:presentationLink link:calculationLink link:definitionLink 00000035 - Disclosure - Related Party Payables (Details) link:presentationLink link:calculationLink link:definitionLink 00000036 - Disclosure - Property, Plant and Equipment (Details) link:presentationLink link:calculationLink link:definitionLink 00000037 - Disclosure - Property, Plant and Equipment (Details Textual) link:presentationLink link:calculationLink link:definitionLink 00000038 - Disclosure - Intangible Asset (Details) link:presentationLink link:calculationLink link:definitionLink 00000039 - Disclosure - Intangible Asset (Details Textual) link:presentationLink link:calculationLink link:definitionLink 00000040 - Disclosure - Accrued Expenses (Details) link:presentationLink link:calculationLink link:definitionLink 00000041 - Disclosure - Taxes Payables (Details) link:presentationLink link:calculationLink link:definitionLink 00000042 - Disclosure - Stockholders' Equity (Details) link:presentationLink link:calculationLink link:definitionLink 00000043 - Disclosure - Income Taxes (Details) link:presentationLink link:calculationLink link:definitionLink 00000044 - Disclosure - Income Taxes (Details 1) link:presentationLink link:calculationLink link:definitionLink 00000045 - Disclosure - Income Taxes (Details Textual) link:presentationLink link:calculationLink link:definitionLink 00000046 - Disclosure - Loss Per Share (Details) link:presentationLink link:calculationLink link:definitionLink 00000047 - Disclosure - Going Concern Uncertainties (Details) link:presentationLink link:calculationLink link:definitionLink 00000048 - Disclosure - Commitments (Details) link:presentationLink link:calculationLink link:definitionLink 00000049 - Disclosure - Concentration of Risks (Details) link:presentationLink link:calculationLink link:definitionLink EX-101.CAL 8 ways-20180630_cal.xml XBRL CALCULATION FILE EX-101.DEF 9 ways-20180630_def.xml XBRL DEFINITION FILE EX-101.LAB 10 ways-20180630_lab.xml XBRL LABEL FILE Related Party [Axis] Xiang Zuyue [Member] Equity Components [Axis] Common Stock [Member] Geographical [Axis] UNITED STATES Legal Entity [Axis] Ding Neng Holdings [Member] Egoos Mobile Technology Company Limited [Member] Subsidiary of Common Parent [Member] Shenzhen Qianhai Exce Card Technology Company Limited [Member] Consolidated Entities [Axis] Subsidiaries [Member] Subsidiaries One [Member] Subsidiaries Two [Member] Subsidiaries Three [Member] Subsidiaries Four [Member] Subsidiaries Five [Member] Property, Plant and Equipment, Type [Axis] Furniture and Fixtures [Member] Computer Equipment [Member] Intercompany Foreign Currency Balance by Description [Axis] Exchange Rates [Member] Exchange Rates One [Member] Exchange Rates Two [Member] Exchange Rates Three [Member] Fair Value, Hierarchy [Axis] Fair Value, Inputs, Level 1 [Member] Fair Value, Inputs, Level 2 [Member] Fair Value, Inputs, Level 3 [Member] Beijing Yuxin Shangfang Technology Company Limited [Member] Lim, Jehn Ming [Member] Wang, Yue [Member] Yang Mei [Member] Li Ping [Member] Office Equipment [Member] Machinery and Equipment [Member] Finite-Lived Intangible Assets by Major Class [Axis] Patents [Member] Software [Member] All Currency [Axis] RMB [Member] Vesting [Axis] Share-based Compensation Award, Tranche One [Member] Share-based Compensation Award, Tranche Two [Member] Share-based Compensation Award, Tranche Three [Member] Lease Agreements [Member] Concentration Risk Benchmark [Axis] Accounts Payable [Member] Concentration Risk Type [Axis] Supplier Concentration Risk One [Member] Supplier Concentration Risk Two [Member] Sales Revenue, Net [Member] Customer [Axis] Customer One [Member] Customer Two [Member] Customer Three [Member] Cost of Goods, Total [Member] Guangzhou Rongsheng Information Technology Company Limited [Member] Document and Entity Information [Abstract] Entity Registrant Name Entity Central Index Key Trading Symbol Amendment Flag Current Fiscal Year End Date Document Type Document Period End Date Document Fiscal Year Focus Document Fiscal Period Focus Entity Filer Category Entity Common Stock Shares Outstanding Statement of Financial Position [Abstract] ASSETS Current Assets Cash and cash equivalents Other receivable Advance to suppliers Prepaid expenses Prepaid taxes Total Current Assets Non-Current Assets Property, plant and equipment, net Intangible asset, net Total Non-Current Assets Total Assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Capital lease - current portion Accounts payable Taxes payable Other payables Accrued expenses Related party payables Total Current Liabilities Total Liabilities Commitment and contingencies Stockholders' Equity Common stock, $0.001 par value, 100,000,000 shares authorized, 21,027,713 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively Additional paid in capital Accumulated deficit Accumulated other comprehensive loss Total Stockholders' Equity Total Liabilities and Stockholders' Equity Common stock, par value Common stock, shares authorized Common stock, shares issued Common stock, shares outstanding Income Statement [Abstract] Revenue Cost of revenues Gross profit Operating expenses General and administrative expenses Total operating expenses Operating loss Other income (expenses) Interest income Interest expense Other expense Other income Total other income/(expenses) Loss before income taxes Income tax Net loss Other comprehensive loss Foreign currency translation adjustment Comprehensive loss Net loss per share Basic Diluted Weighted average number of common shares outstanding Basic Diluted Statement of Cash Flows [Abstract] CASH FLOWS FROM OPERATING ACTIVITIES Net loss Depreciation and amortization Stock compensation Impairment loss on intangible assets Adjustments to reconcile net loss to net cash provided by operating activities and changes in operating assets and liabilities: Decrease/(increase) in accounts receivable Decrease/(increase) in other receivables Decrease/(increase) in advance to suppliers Decrease/(increase) in prepaid expenses and taxes Increase/(decrease) in accounts payable Decrease in accrued expenses Increase/(decrease) in other payables Decrease in taxes payable Net cash provided by (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of equipment Decrease in deposits Net cash generated from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase in related party receivables Increase in related party payables Net cash generated from financing activities Net increase in cash and cash equivalents Effect of foreign currency translation on cash and cash equivalents Cash and cash equivalents, beginning balance Cash and cash equivalents, ending balance SUPPLEMENTAL DISCLOSURES: Interest received Interest paid Income tax paid Organization, Consolidation and Presentation of Financial Statements [Abstract] THE COMPANY AND PRINCIPAL BUSINESS ACTIVITIES Accounting Policies [Abstract] SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Related Party Transactions [Abstract] RELATED PARTY PAYABLES Property, Plant and Equipment [Abstract] PROPERTY, PLANT AND EQUIPMENT Goodwill and Intangible Assets Disclosure [Abstract] INTANGIBLE ASSET Payables and Accruals [Abstract] ACCRUED EXPENSES Taxes Payables [Abstract] TAXES PAYABLES Equity [Abstract] STOCKHOLDERS' EQUITY Income Tax Disclosure [Abstract] INCOME TAXES Earnings Per Share [Abstract] LOSS PER SHARE Going Concern Uncertainties [Abstract] GOING CONCERN UNCERTAINTIES Commitments and Contingencies Disclosure [Abstract] COMMITMENTS Risks and Uncertainties [Abstract] CONCENTRATION OF RISKS Subsequent Events [Abstract] SUBSEQUENT EVENT EX-101.PRE 11 ways-20180630_pre.xml XBRL PRESENTATION FILE XML 12 R1.htm IDEA: XBRL DOCUMENT

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2018	Aug. 10, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	Wave Sync Corp.
Entity Central Index Key	0000860131
Trading Symbol	WAYS
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Entity Filer Category	Smaller Reporting Company
Entity Common Stock Shares Outstanding		21,027,713

XML 13 R2.htm IDEA: XBRL DOCUMENT

Unaudited Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Current Assets
Cash and cash equivalents	$ 1,820	$ 10,346
Other receivable	510	7,343
Advance to suppliers	35,559	36,175
Prepaid expenses		9,346
Prepaid taxes	5,032	3,927
Total Current Assets	42,921	67,137
Non-Current Assets
Property, plant and equipment, net	61,308	67,277
Intangible asset, net		3,952,052
Total Non-Current Assets	61,308	4,019,329
Total Assets	104,229	4,086,466
Current Liabilities
Capital lease - current portion		9,980
Accounts payable	248,090	159,766
Taxes payable	900	6,145
Other payables	201,076	66,142
Accrued expenses	18,708	37,440
Related party payables	782,928	685,180
Total Current Liabilities	1,251,702	964,653
Total Liabilities	1,251,702	964,653
Commitment and contingencies
Stockholders' Equity
Common stock, $0.001 par value, 100,000,000 shares authorized, 21,027,713 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively	21,027	21,027
Additional paid in capital	25,650,801	24,776,214
Accumulated deficit	(26,694,626)	(21,452,071)
Accumulated other comprehensive loss	(124,675)	(223,357)
Total Stockholders' Equity	(1,147,473)	3,121,813
Total Liabilities and Stockholders' Equity	$ 104,229	$ 4,086,466

XML 14 R3.htm IDEA: XBRL DOCUMENT

Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	21,027,713	21,027,713
Common stock, shares outstanding	21,027,713	21,027,713

XML 15 R4.htm IDEA: XBRL DOCUMENT

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Revenue		$ 422	$ 88,908	$ 209,061
Cost of revenues		2	87,288	826
Gross profit		420	1,620	208,235
Operating expenses
General and administrative expenses	547,532	267,023	1,205,351	557,171
Total operating expenses	547,532	267,023	1,205,351	557,171
Operating loss	(547,532)	(266,603)	(1,203,731)	(348,936)
Other income (expenses)
Interest income	2	680	26	1,835
Interest expense		(217)		(217)
Other expense	(4,038,850)		(4,038,850)
Other income		131,168		101,159
Total other income/(expenses)	(4,038,848)	131,631	(4,038,824)	102,777
Loss before income taxes	(4,586,380)	(134,972)	(5,242,555)	(246,159)
Income tax
Net loss	(4,586,380)	(134,972)	(5,242,555)	(246,159)
Other comprehensive loss
Foreign currency translation adjustment	113,134	1,800	98,682	7,289
Comprehensive loss	$ (4,473,246)	$ (133,172)	$ (5,143,873)	$ (238,870)
Net loss per share
Basic	$ (0.22)	$ (0.01)	$ (0.25)	$ (0.01)
Diluted	$ (0.22)	$ (0.01)	$ (0.25)	$ (0.01)
Weighted average number of common shares outstanding
Basic	21,027,713	21,027,162	21,027,713	20,565,980
Diluted	21,027,713	21,027,162	21,027,713	20,565,980

XML 16 R5.htm IDEA: XBRL DOCUMENT

Unaudited Condensed Consolidated Statements of Cash Flow - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (5,242,555)	$ (246,159)
Depreciation and amortization	4,165	6,006
Stock compensation	874,587
Impairment loss on intangible assets	3,952,129
Adjustments to reconcile net loss to net cash provided by operating activities and changes in operating assets and liabilities:
Decrease/(increase) in accounts receivable	6,043	(142)
Decrease/(increase) in other receivables	790	(14,793)
Decrease/(increase) in advance to suppliers	616	(7,399)
Decrease/(increase) in prepaid expenses and taxes	8,241	(1,915)
Increase/(decrease) in accounts payable	88,324	(55,855)
Decrease in accrued expenses	(28,711)	(25,496)
Increase/(decrease) in other payables	134,933	(64,211)
Decrease in taxes payable	(5,245)	(3,756)
Net cash provided by (used in) operating activities	(206,683)	(413,720)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment		(62,065)
Decrease in deposits		(1,070)
Net cash generated from investing activities		(63,135)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in related party receivables	(1,275)	(96,982)
Increase in related party payables	99,023	234,559
Net cash generated from financing activities	97,748	137,577
Net increase in cash and cash equivalents	(108,935)	(339,278)
Effect of foreign currency translation on cash and cash equivalents	100,409	7,258
Cash and cash equivalents, beginning balance	10,346	480,609
Cash and cash equivalents, ending balance	1,820	148,590
SUPPLEMENTAL DISCLOSURES:
Interest received	26	1,835
Interest paid
Income tax paid

XML 17 R6.htm IDEA: XBRL DOCUMENT

The Company and Principal Business Activities

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

THE COMPANY AND PRINCIPAL BUSINESS ACTIVITIES

1.	THE COMPANY AND PRINCIPAL BUSINESS ACTIVITIES

Share Purchase Agreement

On March 16, 2015, the GZRS was incorporated as a wholly-owned subsidiary of SQEC. GZRS has an authorized capital of RMB 1,000,000. As of the date of this report, GZRS has not been capitalized.

XML 18 R7.htm IDEA: XBRL DOCUMENT

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Method of Accounting

Basis of Presentation

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”).

Principles of Consolidation

As of June 30, 2018, the detailed identities of the consolidating subsidiaries are as follows:

Name of Company	Place of incorporation	Attributable equity interest %	Registered capital
EGOOS Mobile Technology Company Limited (“EGOOS BVI”)	BVI	100%	$	1
EGOOS Mobile Technology Company Limited (“EGOOS HK”)	Hong Kong	100%		1,290
Move the Purchase Consulting Management (Shenzhen) Co., Ltd. (“WOFE”)	P.R.C. (WOFE)	100%		-
Guangzhou Yuzhi Information Technology Co., Ltd. (“GZYZ”)	P.R.C.	100%		150,527
Shenzhen Qianhai Exce-card Technology Co., Ltd. (“SQEC”)	P.R.C.	100%		150,527
Guangzhou Rongsheng Information Technology Co., Ltd. (“GZRS”)	P.R.C.	100%		1,505,267

Unaudited Interim Financial Information

Use of estimates

Contingencies

Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed.

Cash and cash equivalents

Accounts receivable

Other receivables

Property, plant and equipment

	Computer equipment	3 years
	Office furniture	5 years

Accounting for the Impairment of Long-lived assets

Income taxes

Stock-based compensation

For the three month periods ended June 30, 2018 and 2017, $874,587 and $0 stock-based compensation was recognized.

Foreign currency translation

Exchange Rates	6/30/2018		12/31/2017		6/30/2017
Year-end/period-end RMB : US$ exchange rate		6.6191		6.5064		6.7768
Average annual/period RMB : US$ exchange rate		6.3665		6.7570		6.8743

Year-end/period-end HKD : US$ exchange rate		7.8453		7.8149		7.8056
Average annual/period HKD : US$ exchange rate		7.8373		7.7922		7.7731

Revenue recognition

Earnings per share

Comprehensive loss

Subsequent events

Recent accounting pronouncements

As of June 30, 2018, except for the above, there are no recently issued accounting standards not yet adopted that would have a material effect on the Company’s financial statements.

Fair Value of Financial Instruments

●

Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.

●

Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815.

The following tables present the Company’s financial assets and liabilities at fair value in accordance to ASC 820-10

As of June 30, 2018:	Quoted in		Significant
	Active Markets		Other		Significant
	for Identical		Observable		Unobservable
	Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Financial assets:
Cash	$	1,820	$	-	$	-	$	1,820
Total financial assets	$	1,820	$	-	$	-	$	1,820

Financial liabilities:
Capital lease	$	-	$	-	$	-	$	-
Total financial liabilities	$	-	$	-	$	-	$	-

As of December 31, 2017:	Quoted in		Significant
	Active Markets		Other		Significant
	for Identical		Observable		Unobservable
	Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Financial assets:
Cash	$	10,346	$	-	$	-	$	10,346
Total financial assets	$	10,346	$	-	$	-	$	10,346

Financial liabilities:
Capital lease	$	9,352	$	-	$	-	$	9,352
Total financial liabilities	$	9,352	$	-	$	-	$	9,352

XML 19 R8.htm IDEA: XBRL DOCUMENT

Related Party Payables

6 Months Ended

Jun. 30, 2018

RELATED PARTY PAYABLES

3.	RELATED PARTY PAYABLES

Related party payable consisted of the following:

	6/30/2018		12/31/2017

Beijing Yuxin Shangfang Technology Co., Ltd.	$	297,012	$	302,155
Xiang, Zuyue, director of SQEC and shareholder		10,513		60,198
Lim, Jehn Ming, shareholder of EGOOS BVI		1,289		1,289
Wang, Yue, director of EGOOS HK		161,233		161,942
Yang, Mei, shareholder		308,963		157,110
Li, Ping, director of WOFE		3,918		2,486
	$	782,928	$	685,180

The amounts are unsecured, interest-free and due on demand.

XML 20 R9.htm IDEA: XBRL DOCUMENT

Property, Plant and Equipment

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT

4.	PROPERTY, PLANT AND EQUIPMENT

Property, plant, and equipment consisted of the following as of June 30, 2018 and December 31, 2017:

	6/30/2018			12/31/2017

At Cost:
Machinery	$	70,628		$	71,852
Office equipment		19,032			19,362
Office furniture		13,218			13,446
	$	102,878		$	104,660

Less: Accumulated depreciation		(41,570	)		(37,383	)

	$	61,308		$	67,277

Depreciation expense for the six-month periods ended June 30, 2018 and 2017 was $4,165 and $5,821, respectively.

XML 21 R10.htm IDEA: XBRL DOCUMENT

Intangible Asset

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSET

5.	INTANGIBLE ASSET

Intangible assets consisted of the following as of June 30, 2018 and December 31, 2017:

	6/30/2018			12/31/2017

At Cost:
Patent	$	-		$	3,952,052
Software		1,299			1,322
	$	1,299		$	3,953,374

Less: Accumulated amortization		(1,299	)		(1,322	)

	$	-		$	3,952,052

Amortization expense for the six-month periods ended June 30, 2018 and 2017 was $0 and $185, respectively.

XML 22 R11.htm IDEA: XBRL DOCUMENT

Accrued Expenses

6 Months Ended

Jun. 30, 2018

Payables and Accruals [Abstract]

ACCRUED EXPENSES

6.	ACCRUED EXPENSES

Accrued expenses consisted of the followings as of June 30, 2018 and December 31, 2017:

	6/30/2018		12/31/2017

Audit fee	$	6,500	$	35,000
Utilities		12,208		2,440
	$	18,708	$	37,440

XML 23 R12.htm IDEA: XBRL DOCUMENT

Taxes Payables

6 Months Ended

Jun. 30, 2018

Taxes Payables [Abstract]

TAXES PAYABLES

TAXES PAYABLES

Taxes payable consisted of the followings as of June 30, 2018 and December 31, 2017:

	6/30/2018		12/31/2017

Payroll tax	$	874	$	5,270
Individual income tax		24		875
	$	900	$	6,145

XML 24 R13.htm IDEA: XBRL DOCUMENT

Stockholders' Equity

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

STOCKHOLDERS' EQUITY

8.	STOCKHOLDERS’ EQUITY

Common stock

As of December 31, 2016 and 2015, the Company has 100,000,000 shares of common stock authorized, 19,920,325 shares issued and outstanding at par value of $0.001 per share.

As of June 30, 2018, the Company has 100,000,000 shares of common stock authorized, 21,027,713 shares issued and outstanding at par value of $0.001 per share.

Stock option compensation

XML 25 R14.htm IDEA: XBRL DOCUMENT

Income Taxes

6 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

INCOME TAXES

9.	INCOME TAXES

The Company was incorporated in the United States of America (“USA”). The Company does not generate any taxable income from its operations for the six month periods ended June 30, 2018 and 2017.

The provision for income taxes consists of the following:

	For the six month periods June 30,
	2018		2017
Current:
USA	$	-	$	-
Deferred:
USA		-		-
Provision for income taxes		-		-

The reconciliation of USA statutory income tax rate to the Company’s effective income tax rate is as follows:

	For the six month periods June 30,
	2018		2017

Income tax at USA statutory rate of 34%	$	-	$	-
Others		-		-
Provision for income taxes		-		-

Uncertain Tax Positions

Deferred Income Tax Benefits

XML 26 R15.htm IDEA: XBRL DOCUMENT

Loss Per Share

6 Months Ended

Jun. 30, 2018

Net loss per share

LOSS PER SHARE

10.

LOSS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share of common stock:

	For the six months ended June 30,						For the three months ended June 30,
	2018			2017			2018			2017

Basic loss per share:
Numerator:
Net loss used in computing basic earnings per share	$	(5,242,555	)	$	(246,157	)	$	(4,586,380	)	$	(134,972	)

Denominator:
Weighted average common shares outstanding		21,027,713			20,565,980			21,027,713			21,027,162
Basic loss per share	$	(0.25	)	$	(0.01	)	$	(0.22	)	$	(0.01	)

Diluted earnings per share:
Numerator:
Net loss used in computing diluted loss per share	$	(5,242,555	)	$	(246,157	)	$	(4,586,380	)	$	(134,972	)

Denominator:
Weighted average common shares outstanding		21,027,713			20,565,980			21,027,713			21,027,162
Diluted loss per share	$	(0.25	)	$	(0.01	)	$	(0.22	)	$	(0.01	)

Dilutive securities having an anti-dilutive effect on diluted (loss) earnings per share are excluded from the calculation.

XML 27 R16.htm IDEA: XBRL DOCUMENT

Going Concern Uncertainties

6 Months Ended

Jun. 30, 2018

Going Concern Uncertainties [Abstract]

GOING CONCERN UNCERTAINTIES

11.

GOING CONCERN UNCERTAINTIES

XML 28 R17.htm IDEA: XBRL DOCUMENT

Commitments

6 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS

12.

COMMITMENTS

(a.)

(b.)

(c.)

On April 23, 2018, the Company entered into a sublease agreement for office space in New Jersey commencing on April 23, 2018 for a six-month lease term. The monthly rental expense is $833.33.

XML 29 R18.htm IDEA: XBRL DOCUMENT

Concentration of Risks

6 Months Ended

Jun. 30, 2018

Risks and Uncertainties [Abstract]

CONCENTRATION OF RISKS

13.

CONCENTRATION OF RISKS

Major Customer

Major Vendors and Accounts Payable

Credit Risk

XML 30 R19.htm IDEA: XBRL DOCUMENT

Subsequent Event

6 Months Ended

Jun. 30, 2018

Subsequent Events [Abstract]

SUBSEQUENT EVENT

14.

SUBSEQUENT EVENT

The Company has evaluated subsequent events from June 30, 2018 through the date the financial statements were available to be issued. There was no subsequent event at the report date .

XML 31 R20.htm IDEA: XBRL DOCUMENT

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Method of Accounting

Basis of Presentation

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”).

Principles of Consolidation

As of June 30, 2018, the detailed identities of the consolidating subsidiaries are as follows:

Name of Company	Place of incorporation	Attributable equity interest %	Registered capital
EGOOS Mobile Technology Company Limited (“EGOOS BVI”)	BVI	100%	$	1
EGOOS Mobile Technology Company Limited (“EGOOS HK”)	Hong Kong	100%		1,290
Move the Purchase Consulting Management (Shenzhen) Co., Ltd. (“WOFE”)	P.R.C. (WOFE)	100%		-
Guangzhou Yuzhi Information Technology Co., Ltd. (“GZYZ”)	P.R.C.	100%		150,527
Shenzhen Qianhai Exce-card Technology Co., Ltd. (“SQEC”)	P.R.C.	100%		150,527
Guangzhou Rongsheng Information Technology Co., Ltd. (“GZRS”)	P.R.C.	100%		1,505,267

Unaudited Interim Financial Information

Use of estimates

Contingencies

Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed.

Cash and cash equivalents

Accounts receivable

Other receivables

Property, plant and equipment

	Computer equipment	3 years
	Office furniture	5 years

Accounting for the Impairment of Long-lived assets

Income taxes

Stock-based compensation

For the three month periods ended June 30, 2018 and 2017, $874,587 and $0 stock-based compensation was recognized.

Foreign currency translation

Exchange Rates	6/30/2018		12/31/2017		6/30/2017
Year-end/period-end RMB : US$ exchange rate		6.6191		6.5064		6.7768
Average annual/period RMB : US$ exchange rate		6.3665		6.7570		6.8743

Year-end/period-end HKD : US$ exchange rate		7.8453		7.8149		7.8056
Average annual/period HKD : US$ exchange rate		7.8373		7.7922		7.7731

Recent accounting pronouncements

As of June 30, 2018, except for the above, there are no recently issued accounting standards not yet adopted that would have a material effect on the Company’s financial statements.

Fair Value of Financial Instruments

●

Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.

●

Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815.

The following tables present the Company’s financial assets and liabilities at fair value in accordance to ASC 820-10

As of June 30, 2018:	Quoted in		Significant
	Active Markets		Other		Significant
	for Identical		Observable		Unobservable
	Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Financial assets:
Cash	$	1,820	$	-	$	-	$	1,820
Total financial assets	$	1,820	$	-	$	-	$	1,820

Financial liabilities:
Capital lease	$	-	$	-	$	-	$	-
Total financial liabilities	$	-	$	-	$	-	$	-

As of December 31, 2017:	Quoted in		Significant
	Active Markets		Other		Significant
	for Identical		Observable		Unobservable
	Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Financial assets:
Cash	$	10,346	$	-	$	-	$	10,346
Total financial assets	$	10,346	$	-	$	-	$	10,346

Financial liabilities:
Capital lease	$	9,352	$	-	$	-	$	9,352
Total financial liabilities	$	9,352	$	-	$	-	$	9,352

XML 32 R21.htm IDEA: XBRL DOCUMENT

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Schedule of consolidating subsidiaries

Name of Company	Place of incorporation	Attributable equity interest %	Registered capital
EGOOS Mobile Technology Company Limited (“EGOOS BVI”)	BVI	100%	$	1
EGOOS Mobile Technology Company Limited (“EGOOS HK”)	Hong Kong	100%		1,290
Move the Purchase Consulting Management (Shenzhen) Co., Ltd. (“WOFE”)	P.R.C. (WOFE)	100%		-
Guangzhou Yuzhi Information Technology Co., Ltd. (“GZYZ”)	P.R.C.	100%		150,527
Shenzhen Qianhai Exce-card Technology Co., Ltd. (“SQEC”)	P.R.C.	100%		150,527
Guangzhou Rongsheng Information Technology Co., Ltd. (“GZRS”)	P.R.C.	100%		1,505,267

Schedule of estimated useful lives of the plant and equipment

	Computer equipment	3 years
	Office furniture	5 years

Schedule of foreign currency translation exchange rates to assets and liabilities

Exchange Rates	6/30/2018		12/31/2017		6/30/2017
Year-end/period-end RMB : US$ exchange rate		6.6191		6.5064		6.7768
Average annual/period RMB : US$ exchange rate		6.3665		6.7570		6.8743

Year-end/period-end HKD : US$ exchange rate		7.8453		7.8149		7.8056
Average annual/period HKD : US$ exchange rate		7.8373		7.7922		7.7731

Schedule of financial assets and liabilities at fair value

As of June 30, 2018:	Quoted in		Significant
	Active Markets		Other		Significant
	for Identical		Observable		Unobservable
	Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Financial assets:
Cash	$	1,820	$	-	$	-	$	1,820
Total financial assets	$	1,820	$	-	$	-	$	1,820

Financial liabilities:
Capital lease	$	-	$	-	$	-	$	-
Total financial liabilities	$	-	$	-	$	-	$	-

As of December 31, 2017:	Quoted in		Significant
	Active Markets		Other		Significant
	for Identical		Observable		Unobservable
	Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Financial assets:
Cash	$	10,346	$	-	$	-	$	10,346
Total financial assets	$	10,346	$	-	$	-	$	10,346

Financial liabilities:
Capital lease	$	9,352	$	-	$	-	$	9,352
Total financial liabilities	$	9,352	$	-	$	-	$	9,352

XML 33 R22.htm IDEA: XBRL DOCUMENT

Related Party Payables (Tables)

6 Months Ended

Jun. 30, 2018

Schedule of related party payable

	6/30/2018		12/31/2017

Beijing Yuxin Shangfang Technology Co., Ltd.	$	297,012	$	302,155
Xiang, Zuyue, director of SQEC and shareholder		10,513		60,198
Lim, Jehn Ming, shareholder of EGOOS BVI		1,289		1,289
Wang, Yue, director of EGOOS HK		161,233		161,942
Yang, Mei, shareholder		308,963		157,110
Li, Ping, director of WOFE		3,918		2,486
	$	782,928	$	685,180

XML 34 R23.htm IDEA: XBRL DOCUMENT

Property, Plant and Equipment (Tables)

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

Schedule of property, plant, and equipment

	6/30/2018			12/31/2017

At Cost:
Machinery	$	70,628		$	71,852
Office equipment		19,032			19,362
Office furniture		13,218			13,446
	$	102,878		$	104,660

Less: Accumulated depreciation		(41,570	)		(37,383	)

	$	61,308		$	67,277

XML 35 R24.htm IDEA: XBRL DOCUMENT

Intangible Asset (Tables)

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible assets

	6/30/2018			12/31/2017

At Cost:
Patent	$	-		$	3,952,052
Software		1,299			1,322
	$	1,299		$	3,953,374

Less: Accumulated amortization		(1,299	)		(1,322	)

	$	-		$	3,952,052

XML 36 R25.htm IDEA: XBRL DOCUMENT

Accrued Expenses (Tables)

6 Months Ended

Jun. 30, 2018

Payables and Accruals [Abstract]

Schedule of accrued expenses

	6/30/2018		12/31/2017

Audit fee	$	6,500	$	35,000
Utilities		12,208		2,440
	$	18,708	$	37,440

XML 37 R26.htm IDEA: XBRL DOCUMENT

Taxes Payables (Tables)

6 Months Ended

Jun. 30, 2018

Taxes Payables [Abstract]

Schedule of taxes payable

	6/30/2018		12/31/2017

Payroll tax	$	874	$	5,270
Individual income tax		24		875
	$	900	$	6,145

XML 38 R27.htm IDEA: XBRL DOCUMENT

Income Taxes (Tables)

6 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

Schedule of provision for income taxes

	For the six month periods June 30,
	2018		2017
Current:
USA	$	-	$	-
Deferred:
USA		-		-
Provision for income taxes		-		-

Schedule of reconciliation of USA statutory income tax rate

	For the six month periods June 30,
	2018		2017

Income tax at USA statutory rate of 34%	$	-	$	-
Others		-		-
Provision for income taxes		-		-

XML 39 R28.htm IDEA: XBRL DOCUMENT

Loss Per Share (Tables)

6 Months Ended

Jun. 30, 2018

Net loss per share

Schedule of computation of basic and diluted earnings per share of common stock

	For the six months ended June 30,						For the three months ended June 30,
	2018			2017			2018			2017

Basic loss per share:
Numerator:
Net loss used in computing basic earnings per share	$	(5,242,555	)	$	(246,157	)	$	(4,586,380	)	$	(134,972	)

Denominator:
Weighted average common shares outstanding		21,027,713			20,565,980			21,027,713			21,027,162
Basic loss per share	$	(0.25	)	$	(0.01	)	$	(0.22	)	$	(0.01	)

Diluted earnings per share:
Numerator:
Net loss used in computing diluted loss per share	$	(5,242,555	)	$	(246,157	)	$	(4,586,380	)	$	(134,972	)

Denominator:
Weighted average common shares outstanding		21,027,713			20,565,980			21,027,713			21,027,162
Diluted loss per share	$	(0.25	)	$	(0.01	)	$	(0.22	)	$	(0.01	)

XML 40 R29.htm IDEA: XBRL DOCUMENT

The Company and Principal Business Activities (Details) - USD ($)				1 Months Ended			6 Months Ended
	Feb. 04, 2016	Jul. 14, 2015	Dec. 06, 2010	Jul. 24, 2015	Jan. 28, 2015	Oct. 28, 2010	Jun. 30, 2018	Mar. 16, 2015
The Company and Principal Business Activities (Textual)
Equity method investment, description							On October 19, 2015, the Company entered into a Share Purchase Agreement (the “Share Purchase Agreement”) with EGOOS Mobile Technology Company Limited, a British Virgin Islands holding company (“EGOOS BVI”), which owns 100% of EGOOS Mobile Technology Company Limited, a Hong Kong company (“EGOOS HK”), which owns 100% of Move the Purchase Consulting Management (Shenzhen) Co., Ltd. (“WOFE”), a foreign investment enterprise organized under the laws of the PRC, and which has, through various contractual agreements known as variable interest entity (“VIE”) agreements. These VIE agreements provide the WOFE management control and the rights to the profits of Guangzhou Yuzhi Information Technology Co., Ltd., a corporation organized under the laws of the PRC as a variable interest entity (“GZYZ”), which owns 100% of Shenzhen Qianhai Exce-card Technology Co., Ltd., a Chinese corporation (“SQEC”), which owns 100% of Guangzhou Rongsheng Information Technology Co., Ltd., a Chinese corporation (“GZRS”) and the sole shareholder of EGOOS BVI.
EGOOS Mobile Technology Company Limited [Member]
The Company and Principal Business Activities (Textual)
Acquired interest from investment holdings company							100.00%
Business combination, consideration transferred description							(i) the Company has effectuated a reverse split of all of the issued and outstanding Common Stock as of the date of the issuance of the note (the "Reverse Split") and (ii) the average closing price of the common stock for 3 business days within any period of 10 consecutive business days exceeds $1.00 per share (the "Conversion Conditions"). Upon conversion of the note, the existing shareholders of the Registrant will own an aggregate of 24.7% of the post-acquisition entity.
Note converted into share	15,000,000						15,000,000
Ding Neng Holdings [Member]
The Company and Principal Business Activities (Textual)
Acquired interest from investment holdings company			100.00%
Issuance of common stock for acquisition			26,162,505
Common stock par value			$ 0.001
Litigation settlement fee		$ 1,611
Ding Neng Holdings [Member] \| Subsidiary of Common Parent [Member]
The Company and Principal Business Activities (Textual)
Entity agreements, description						(1) a Consulting Service Agreement with Ding Neng Bio-tech, which entitled WFOE to receive substantially all of the economic benefits of Ding Neng Bio-tech in consideration for services provided by WFOE to Ding Neng Bio-tech, (2) an Option Agreement with Xinfeng Nie, Sanfu Huang, and Shunlong Hu (the shareholders of Ding Neng Bio-tech) allowing the WFOE to acquire all the shares of Ding Neng Bio-tech as permitted by PRC laws, (3) a Voting Rights Proxy Agreement that provides WFOE with the all voting rights of the Ding Neng Bio-tech shareholders, and (4) an Equity Pledge Agreement that pledges the shares in Ding Neng Bio-tech to WFOE (VIE Agreements).
Ding Neng Holdings [Member] \| RMB [Member]
The Company and Principal Business Activities (Textual)
Litigation settlement fee		$ 10,000
Shenzhen Qianhai Exce-card Technology Co., Ltd. [Member]
The Company and Principal Business Activities (Textual)
Business combination, consideration transferred				$ 1,629,062	$ 1,629,062
Shenzhen Qianhai Exce-card Technology Co., Ltd. [Member] \| RMB [Member]
The Company and Principal Business Activities (Textual)
Business combination, consideration transferred				$ 10,000,000	$ 10,000,000
Xiang Zuyue [Member]
The Company and Principal Business Activities (Textual)
Acquired interest from investment holdings company					40.00%
Business combination, consideration transferred					$ 651,625
Xiang Zuyue [Member] \| RMB [Member]
The Company and Principal Business Activities (Textual)
Business combination, consideration transferred					$ 4,000,000
Guangzhou Rongsheng Information Technology Co., Ltd. [Member] \| RMB [Member]
The Company and Principal Business Activities (Textual)
Authorized capital								$ 1,000,000

XML 41 R30.htm IDEA: XBRL DOCUMENT

Summary of Significant Accounting Policies (Details)	6 Months Ended
Summary of Significant Accounting Policies (Details)	Jun. 30, 2018 USD ($)
Schedule of consolidating subsidiaries
Attributable equity interest %	100.00%
Subsidiaries [Member]
Schedule of consolidating subsidiaries
Name of Company	EGOOS Mobile Technology Company Limited ("EGOOS BVI")
Place of incorporation	BVI
Attributable equity interest %	100.00%
Registered capital	$ 1
Subsidiaries One [Member]
Schedule of consolidating subsidiaries
Name of Company	EGOOS Mobile Technology Company Limited ("EGOOS HK")
Place of incorporation	Hong Kong
Attributable equity interest %	100.00%
Registered capital	$ 1,290
Subsidiaries Two [Member]
Schedule of consolidating subsidiaries
Name of Company	Move the Purchase Consulting Management (Shenzhen) Co., Ltd. ("WOFE")
Place of incorporation	P.R.C. (WOFE)
Attributable equity interest %	100.00%
Registered capital
Subsidiaries Three [Member]
Schedule of consolidating subsidiaries
Name of Company	Guangzhou Yuzhi Information Technology Co., Ltd. ("GZYZ")
Place of incorporation	P.R.C.
Attributable equity interest %	100.00%
Registered capital	$ 150,527
Subsidiaries Four [Member]
Schedule of consolidating subsidiaries
Name of Company	Shenzhen Qianhai Exce-card Technology Co., Ltd. ("SQEC")
Place of incorporation	P.R.C.
Attributable equity interest %	100.00%
Registered capital	$ 150,527
Subsidiaries Five [Member]
Schedule of consolidating subsidiaries
Name of Company	Guangzhou Rongsheng Information Technology Co., Ltd. ("GZRS")
Place of incorporation	P.R.C.
Attributable equity interest %	100.00%
Registered capital	$ 1,505,267

XML 42 R31.htm IDEA: XBRL DOCUMENT

Summary of Significant Accounting Policies (Details 1)	6 Months Ended
Summary of Significant Accounting Policies (Details 1)	Jun. 30, 2018
Computer equipment [Member]
Schedule of estimated useful lives of the plant and equipment
Estimated useful lives of the plant and equipment	3 years
Office furniture [Member]
Schedule of estimated useful lives of the plant and equipment
Estimated useful lives of the plant and equipment	5 years

XML 43 R32.htm IDEA: XBRL DOCUMENT

Summary of Significant Accounting Policies (Details 2)	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Exchange Rates [Member]
Intercompany Foreign Currency Balance [Line Items]
Foreign currency translation, exchange rates	6.6191	6.5064	6.7768
Exchange Rates One [Member]
Intercompany Foreign Currency Balance [Line Items]
Foreign currency translation, exchange rates	6.3665	6.7570	6.8743
Exchange Rates Two [Member]
Intercompany Foreign Currency Balance [Line Items]
Foreign currency translation, exchange rates	7.8453	7.8149	7.8056
Exchange Rates Three [Member]
Intercompany Foreign Currency Balance [Line Items]
Foreign currency translation, exchange rates	7.8373	7.7922	7.7731

XML 44 R33.htm IDEA: XBRL DOCUMENT

Summary of Significant Accounting Policies (Details 3) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Financial assets:
Cash	$ 1,820	$ 10,346
Total financial assets	1,820	10,346
Financial liabilities:
Capital lease		9,352
Total financial liabilities		9,352
Quoted in Active Markets for Identical Assets (Level 1) [Member]
Financial assets:
Cash	1,820	10,346
Total financial assets	1,820	10,346
Financial liabilities:
Capital lease		9,352
Total financial liabilities		9,352
Significant Other Observable Inputs (Level 2) [Member]
Financial assets:
Cash
Total financial assets
Financial liabilities:
Capital lease
Total financial liabilities
Significant Unobservable Inputs (Level 3) [Member]
Financial assets:
Cash
Total financial assets
Financial liabilities:
Capital lease
Total financial liabilities

XML 45 R34.htm IDEA: XBRL DOCUMENT

Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Summary of Significant Accounting Policies (Textual)
Percentage of consolidated financial statements	100.00%		100.00%
Percentage of salvage value	10.00%		10.00%
Stock-based compensation	$ 874,587	$ 0	$ 874,587

XML 46 R35.htm IDEA: XBRL DOCUMENT

Related Party Payables (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Related Party Transaction [Line Items]
Related party payable	$ 782,928	$ 685,180
Beijing Yuxin Shangfang Technology Co., Ltd. [Member]
Related Party Transaction [Line Items]
Related party payable	297,012	302,155
Xiang, Zuyue, director of SQEC and shareholder [Member]
Related Party Transaction [Line Items]
Related party payable	10,513	60,198
Lim, Jehn Ming, shareholder of EGOOS BVI [Member]
Related Party Transaction [Line Items]
Related party payable	1,289	1,289
Wang, Yue, director of EGOOS HK [Member]
Related Party Transaction [Line Items]
Related party payable	161,233	161,942
Yang, Mei, shareholder [Member]
Related Party Transaction [Line Items]
Related party payable	308,963	157,110
Li, Ping, director of WOFE [Member]
Related Party Transaction [Line Items]
Related party payable	$ 3,918	$ 2,486

XML 47 R36.htm IDEA: XBRL DOCUMENT

Property, Plant and Equipment (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	$ 102,878	$ 104,660
Less: Accumulated depreciation	(41,570)	(37,383)
Property, plant and equipment, net	61,308	67,277
Machinery [Member]
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	70,628	71,852
Office equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	19,032	19,362
Office furniture [Member]
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	$ 13,218	$ 13,446

XML 48 R37.htm IDEA: XBRL DOCUMENT

Property, Plant and Equipment (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Property, Plant and Equipment (Textual)
Depreciation expense	$ 4,165	$ 5,821

XML 49 R38.htm IDEA: XBRL DOCUMENT

Intangible Asset (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
At Cost:
Intangible assets, gross	$ 1,299	$ 3,953,374
Less: Accumulated amortization	(1,299)	(1,322)
Intangible assets, net		3,952,052
Patent [Member]
At Cost:
Intangible assets, gross		3,952,052
Software [Member]
At Cost:
Intangible assets, gross	$ 1,299	$ 1,322

XML 50 R39.htm IDEA: XBRL DOCUMENT

Intangible Asset (Details Textual) - USD ($)	6 Months Ended
Intangible Asset (Details Textual) - USD ($)	Jun. 30, 2018	Jun. 30, 2017	Jul. 07, 2017
Intangible Asset (Textual)
Ownership transfer payment			$ 1,447,696
Amortization expenses	$ 0	$ 185
RMB [Member]
Intangible Asset (Textual)
Ownership transfer payment			$ 10,000,000

XML 51 R40.htm IDEA: XBRL DOCUMENT

Accrued Expenses (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Audit fee	$ 6,500	$ 35,000
Utilities	12,208	2,440
Accrued expenses	$ 18,708	$ 37,440

XML 52 R41.htm IDEA: XBRL DOCUMENT

Taxes Payables (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Taxes Payables [Abstract]
Payroll tax	$ 874	$ 5,270
Individual income tax	24	875
Taxes payable	$ 900	$ 6,145

XML 53 R42.htm IDEA: XBRL DOCUMENT

Stockholders' Equity (Details)	1 Months Ended		3 Months Ended		6 Months Ended
Stockholders' Equity (Details)	Oct. 20, 2017 $ / shares shares	Mar. 17, 2017 USD ($) Vendors $ / shares shares	Jun. 30, 2018 USD ($) $ / shares shares	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($) $ / shares shares	Jun. 30, 2017 USD ($)	Dec. 31, 2017 $ / shares shares	Dec. 31, 2016 $ / shares shares	Dec. 31, 2015 $ / shares shares
Stockholders' Equity (Textual)
Common stock, par value (in dollars per share) \| $ / shares			$ 0.001		$ 0.001		$ 0.001
Common stock, shares authorized			100,000,000		100,000,000		100,000,000
Common stock, shares issued			21,027,713		21,027,713		21,027,713
Common stock, shares outstanding			21,027,713		21,027,713		21,027,713
Option issued to purchase common stock	1,050,000
Tranches expire, date	Oct. 19, 2022
Expected forfeiture rate	0.00%
Risk free rate	2.03%
Expiration date	Oct. 19, 2022
Exercise price \| $ / shares	$ 1.00
Annualized volatility	602.71%
Dividend yield	0.00%
Stock option compensation expense \| $			$ 874,587	$ 0	$ 874,587
Common stock [Member]
Stockholders' Equity (Textual)
Common stock, par value (in dollars per share) \| $ / shares		$ 0.001						$ 0.001	$ 0.001
Common stock, shares authorized								100,000,000	100,000,000
Common stock, shares issued		1,106,837						19,920,325	19,920,325
Common stock, shares outstanding								19,920,325	19,920,325
Number of noteholders \| Vendors		2
Aggregate principal amount \| $		$ 2,213,673
Issued to note holders, description		The two note holders on April 6, 2017 and April 7, 2017.
October 19, 2018 [Member]
Stockholders' Equity (Textual)
Option vests, shares	350,000
October 19, 2019 [Member]
Stockholders' Equity (Textual)
Option vests, shares	350,000
October 19, 2020 [Member]
Stockholders' Equity (Textual)
Option vests, shares	350,000

XML 54 R43.htm IDEA: XBRL DOCUMENT

Income Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Current:
USA
Deferred:
USA
Provision for income taxes

XML 55 R44.htm IDEA: XBRL DOCUMENT

Income Taxes (Details 1) - USD ($)	6 Months Ended
Income Taxes (Details 1) - USD ($)	Jun. 30, 2018	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Income tax at USA statutory rate of 34%
Others
Provision for income taxes

XML 56 R45.htm IDEA: XBRL DOCUMENT

Income Taxes (Details Textual)	6 Months Ended
Income Taxes (Details Textual)	Jun. 30, 2018
USA [Member]
Income Taxes (Textual)
Statutory rate	34.00%

XML 57 R46.htm IDEA: XBRL DOCUMENT

Loss Per Share (Details) - USD ($)	3 Months Ended		6 Months Ended
Loss Per Share (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Numerator:
Net loss used in computing basic earnings per share	$ (4,586,380)	$ (134,972)	$ (5,242,555)	$ (246,159)
Denominator:
Weighted average common shares outstanding	21,027,713	21,027,162	21,027,713	20,565,980
Basic loss per share	$ (0.22)	$ (0.01)	$ (0.25)	$ (0.01)
Numerator:
Net loss used in computing diluted loss per share	$ (4,586,380)	$ (134,972)	$ (5,242,555)	$ (246,159)
Denominator:
Weighted average common shares outstanding	21,027,713	21,027,162	21,027,713	20,565,980
Diluted loss per share	$ (0.22)	$ (0.01)	$ (0.25)	$ (0.01)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1337-109256

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=109256448&loc=d3e4984-109258

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=115205541&loc=SL114868664-224227

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1252-109256

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=114873765&loc=SL114874048-224260

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=109260490&loc=SL5780133-109256

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=109256448&loc=d3e4984-109258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1252-109256

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=114873765&loc=SL114874048-224260

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1337-109256

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=115205541&loc=SL114868664-224227

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=109260490&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

XML 58 R47.htm IDEA: XBRL DOCUMENT

Going Concern Uncertainties (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Going Concern Uncertainties (Textual)
Accumulated deficits	$ (26,694,626)	$ (21,452,071)
Working capital deficit of current liabilities exceeding current assets	$ 1,208,782

XML 59 R48.htm IDEA: XBRL DOCUMENT

Commitments (Details) - USD ($)			1 Months Ended
Commitments (Details) - USD ($)	Sep. 01, 2016	Jun. 02, 2016	Apr. 23, 2018
Commitments (Textual)
Monthly rental expense			$ 833
Term of lease			6 months
Lease agreement [Member]
Commitments (Textual)
Term of lease	3 years	3 years

XML 60 R49.htm IDEA: XBRL DOCUMENT

Concentration of Risks (Details)	6 Months Ended
Concentration of Risks (Details)	Jun. 30, 2018 USD ($) Customers	Jun. 30, 2017 Vendors Customers
United States [Member]
Concentration of Risks (Textual)
Federal deposit insurance amount \| $	$ 100,000
Total sales [Member]
Concentration of Risks (Textual)
Concentration risk, Percentage	10.00%
Revenue [Member]
Concentration of Risks (Textual)
Concentration risk, Percentage	100.00%
Number of customer \| Customers	1	3
Revenue [Member] \| Customer One [Member]
Concentration of Risks (Textual)
Concentration risk, Percentage		33.00%
Revenue [Member] \| Customer Two [Member]
Concentration of Risks (Textual)
Concentration risk, Percentage		30.00%
Revenue [Member] \| Customer Three [Member]
Concentration of Risks (Textual)
Concentration risk, Percentage		35.00%
Accounts payable [Member]
Concentration of Risks (Textual)
Concentration risk, Percentage	10.00%
Number of vendors \| Vendors		2
Accounts payable [Member] \| Vendor One [Member]
Concentration of Risks (Textual)
Concentration risk, Percentage		20.00%
Accounts payable [Member] \| Vendor Two [Member]
Concentration of Risks (Textual)
Concentration risk, Percentage		80.00%