NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR
THE THREE MONTHS ENDED MARCH 31, 2023 AND 2022
(Currency
expressed in United States Dollars (“US$”), except for number of shares or otherwise stated)
1.
ORGANIZATION AND BUSINESS BACKGROUND
AsiaFIN
Holdings Corp. (“the Company”) was incorporated under the jurisdiction of Nevada on June 14, 2019. The Company, through its
wholly owned subsidiaries, provides information technology services. Details of the Company’s subsidiaries and associate:
SCHEDULE OF SUBSIDIARIES
| No. |
|
Subsidiary
Company Name |
|
Domicile
and Date of Incorporation |
|
Particulars
of Issued Capital |
|
Principal
Activities |
| 1 |
|
AsiaFIN Holdings Corp. |
|
Labuan at July 15, 2019 |
|
1 shares of common stock |
|
Investment holding company |
| |
|
|
|
|
|
|
|
|
| 2 |
|
AsiaFIN Holdings Limited |
|
Hong Kong at July 5, 2019 |
|
1 shares of common stock |
|
Investment holding company |
| |
|
|
|
|
|
|
|
|
| 3 |
|
StarFIN Holdings Limited |
|
British Virgin Island at August 19, 2021 |
|
10,000 shares of common stock |
|
Investment holding company |
| |
|
|
|
|
|
|
|
|
| 4 |
|
StarFIN Asia Sdn Bhd |
|
Malaysia at May 24, 2018 |
|
11,400,102 shares of common
stock |
|
Investment holding company |
| |
|
|
|
|
|
|
|
|
| 5 |
|
OrangeFIN Academy Sdn Bhd |
|
Malaysia at February 2,
2000 |
|
100,000 shares of common
stock |
|
Provision of business system
integration and management services |
| |
|
|
|
` |
|
|
|
|
| 6 |
|
Insite MY Systems Sdn Bhd |
|
Malaysia at January 18,
2000 |
|
500,000 shares of common
stock |
|
Provision of information
technology services |
| |
|
|
|
|
|
|
|
|
| 7 |
|
Insite MY Innovations Sdn
Bhd |
|
Malaysia at January 18,
2010 |
|
540,000 shares of common
stock |
|
Provision of information
technology services |
| |
|
|
|
|
|
|
|
|
| 8 |
|
OrangeFIN Asia Sdn Bhd |
|
Malaysia at January
25, 2018 |
|
50,000 shares of common
stock |
|
Provision of computer programming
activities and services |
| No. |
|
Associate
Company Name |
|
Domicile
and Date of Incorporation |
|
Particulars
of Issued Capital |
|
Principal
Activities |
| 1 |
|
Murni StarFIN Sdn Bhd |
|
Malaysia at September 9,
2022 |
|
100,000 shares of common
stock |
|
Provision of information
technology services |
Mr.
Wong Kai Cheong is the common director of all of aforementioned companies.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis
of Presentation
These
accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States
of America (“US GAAP”).
The
accompanying financial statements include the accounts of the Company and its subsidiaries and associates. Intercompany transactions
and balances were eliminated in consolidation. The Company has adopted December 31 as its fiscal year end. Below is the organization
chart of the Group.
Use
of Estimates
In
preparing these financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities
in the balance sheets and revenues and expenses during the years reported. Actual results may differ from these estimates.
Cash
and Cash Equivalents
The
Company considers short-term, highly liquid investments with an original maturity of 90 days or less to be cash equivalents.
Our
deposit in Malaysia banks are secured by Perbadanan Insurans Deposit Malaysia, compensating up to a limit of Malaysia Ringgit MYR250,000
per deposit per member bank, which is equivalent to $56,923, if any of our bank fail.
Plant
and Equipment
Plant
and equipment are stated at cost, with depreciation and amortization provided using the straight-line method over the following periods:
SCHEDULE
OF PLANT AND EQUIPMENT DEPRECIATION PERIODS
| Asset
Categories |
|
Depreciation
Periods |
| Renovation |
|
over the remaining lease
period |
| Computer Systems |
|
4 to 5 years |
| Furniture and Fittings |
|
10 years |
| Electrical Fittings |
|
10 years |
| Handphone |
|
5 years |
| Office Equipment |
|
10 years |
| Motor Vehicle |
|
5 years |
Revenue
recognition
The
Company through subsidiaries generate multiple streams of revenues based on different business model adopted by each subsidiary through
provisions of services and recognized upon customer obtained control of promised services and recognized in an amount that reflects the
consideration that the Company expects to receive in exchange for those services. In addition, the standard requires disclosure of the
nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company applies the following
five-step model in order to determine this amount:
(i)
Identify contract with customer;
(ii)
Identify distinct performance obligations in contract, including promises if any;
(iii)
Measurement of the transaction price, including the constraint on variable consideration;
(iv)
Allocation of the transaction price to the performance obligations; and
(v)
Recognition of revenue when (or as) the Company satisfies each performance obligation.
Cost
of revenue
Cost
of revenue includes direct costs associated with provision of services such as development costs, purchases of third-party software,
maintenance fees and consultation fees.
Income
tax expense
Income
taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC Topic 740”). Under
this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the
financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities
are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are
expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income
in the period that includes the enactment date.
ASC
740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclosed in their financial statements
uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the
financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax
positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of
being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts.
The
Company conducts major businesses in Malaysia and is subject to tax in their own jurisdictions. As a result of its business activities,
the Company will file separate tax returns that are subject to examination by the foreign tax authorities.
Foreign
currencies translation
Transactions
denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing
at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated
into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded
in the statement of operations and comprehensive income (loss).
The
functional currency of the Company is the United States Dollars (“US$”) and the accompanying financial statements have been
expressed in US$. In addition, the Company’s subsidiary maintains its books and record in Malaysia Ringgits (“MYR”),
United States Dollars (“US$”) and Hong Kong Dollars (“HK$”), which is the respective functional currency as being
the primary currency of the economic environment in which the entity operates.
In
general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into
US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet
date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation
of financial statements of foreign subsidiary are recorded as a separate component of accumulated other comprehensive income.
Translation
of amounts from the local currency of the Company into US$1 has been made at the following exchange rates for the respective periods:
SCHEDULE OF FOREIGN EXCHANGE RATE
| | |
For the period three months ended March 31 | |
| | |
2023 | | |
2022 | |
| Period-end MYR : US$1 exchange rate | |
| 4.42 | | |
| 4.20 | |
| Period-average MYR : US$1 exchange rate | |
| 4.39 | | |
| 4.20 | |
| Period-end HK$ : US$1 exchange rate | |
| 7.75 | | |
| 7.83 | |
| Period-average HK$ : US$1 exchange rate | |
| 7.75 | | |
| 7.81 | |
Related
parties
Parties,
which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control
the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also
considered to be related if they are subject to common control or common significant influence.
Fair
value of financial instruments
The
carrying value of the Company’s financial instruments: cash and cash equivalents, trade receivable, deposits and other receivables,
amount due to related parties and other payables approximate at their fair values because of the short-term nature of these financial
instruments.
The
Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”),
with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy
that prioritizes the inputs used in measuring fair value as follows:
Level
1 : Observable inputs such as quoted prices in active markets;
Level
2 : Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
Level
3 : Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
As
of March 31, 2023, the Company did not have any nonfinancial assets and liabilities that are recognized or disclosed at fair value in
the financial statements, at least annually, on a recurring basis, nor did the Company have any assets or liabilities measured at fair
value on a non-recurring basis.
Net
Income/(Loss) per Share
The
Company calculates net income/(loss) per share in accordance with ASC Topic 260, “Earnings per Share.” Basic income/(loss)
per share is computed by dividing the net income/(loss) by the weighted-average number of common shares outstanding during the period.
Diluted income per share is computed similar to basic income/(loss) per share except that the denominator is increased to include the
number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if
the additional common shares were dilutive.
Lease
The
Company offices for fixed periods pre-emptive extension options. The Company recognizes lease payments for its short-term lease on a
straight-line basis over the lease term.
Lease
liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date. The
right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments
made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. Costs associated
with operating lease assets are recognized on a straight-line basis within operating expenses over the term of the lease.
In
determining the present value of the unpaid lease payments, ASC 842 requires a lessee to discount its unpaid lease payments using the
interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. As most of the Company
leases do not provide an implicit rate, the Company uses its incremental borrowing rate as the discount rate for the lease. The Company
incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments.
Recently
Adopted Accounting Standards
In
June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement
of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses
on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. In November 2019, the FASB issued
ASU 2019-10 highlighted the adoption timeline. For smaller reporting entities, Topic 326 is effective for annual periods beginning after
December 15, 2022, including interim periods within those fiscal years, of which is effective for the Company on January 1, 2023.
Credit
loss rate is determined by historical collection based on aging schedule, adjusted for current conditions using reasonable and supportable
forecasts. Based on the aging categorization and the adjusted loss rate per category, an allowance for credit losses is calculated by
multiplying the adjusted loss rate with the amortized cost in the respective age category.
Recently
Issued Accounting Standards
The
Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have
a significant impact on the Company’s financial statements.
4.
TRADE RECEIVABLE
SCHEDULE
OF TRADE RECEIVABLE
| | |
As of March 31, 2023 | | |
As of December 31, 2022 | |
| Trade receivable, gross | |
$ | 528,679 | | |
$ | 676,396 | |
| Allowance for expected credit loss | |
| (64,918 | ) | |
| - | |
| Trade receivable, net | |
$ | 463,761 | | |
$ | 676,396 | |
5.
PREPAID EXPENSES AND DEPOSITS
SCHEDULE
OF PREPAID EXPENSES AND DEPOSITS
| | |
As of March 31, 2023 | | |
As of December 31, 2022 | |
| Rental deposits | |
$ | 26,940 | | |
$ | 22,976 | |
| Prepaid expenses | |
| 58,897 | | |
| 19,789 | |
| Other receivables | |
| 264 | | |
| 32,723 | |
| Other deposits | |
| 4,305 | | |
| 6,941 | |
| Unbilled revenue | |
| - | | |
| 119,985 | |
| Total | |
$ | 90,406 | | |
$ | 202,414 | |
The
rental deposits represent the deposit of the tenancy agreements.
Prepaid
expenses include website domain, third party software maintenance and subscription, rental, employee and motor vehicle insurance.
Other
receivables include deposits payment made for utility purposes, car park for director and employees.
Other
deposits primarily consist of deposit made for security deposit for renovation.
6.
SCHEDULE
OF PLANT AND EQUIPMENT
| | |
As of March 31, 2023 | | |
As of December 31, 2022 | |
| Computer systems | |
$ | 259,585 | | |
$ | 252,276 | |
| Furniture and fittings | |
| 82,555 | | |
| 82,940 | |
| Electrical fittings | |
| 9,889 | | |
| 9,935 | |
| Handphone | |
| 49,414 | | |
| 49,644 | |
| Office equipment | |
| 92,863 | | |
| 90,807 | |
| Renovation | |
| 82,381 | | |
| 82,404 | |
| Motor vehicle | |
| 378,440 | | |
| 380,202 | |
| Investment property | |
| 418,278 | | |
| 420,225 | |
| Total plant and equipment | |
$ | 1,373,405 | | |
$ | 1,368,433 | |
| Less: Accumulated depreciation | |
| (801,229 | ) | |
| (782,617 | ) |
| Total plant and equipment | |
$ | 572,176 | | |
$ | 585,816 | |
SCHEDULE OF INVESTMENT IN PROPERTY AND
PLANT
| | |
For three months ended March 31, 2023 | | |
For the year ended December 31, 2022 | |
| Investment in computer systems | |
$ | 8,538 | | |
$ | 36,989 | |
| Investment in furniture and fittings | |
| - | | |
| 5,227 | |
| Investment in handphone | |
| - | | |
| 7,342 | |
| Investment in office equipment | |
| 2,494 | | |
| 2,275 | |
| Investment in renovation | |
| 363 | | |
| 7,083 | |
| Investment in investment property | |
| - | | |
| 419,711 | |
| Total investment in property and plant | |
$ | 11,395 | | |
$ | 478,627 | |
| | |
| | | |
| | |
| Depreciation for the period | |
| 22,396 | | |
$ | 93,653 | |
For
the year ended December 31, 2022, the Company acquired an investment property amounted $420,225 financed through loan from director which
is unsecured, non-interest bearing and payable on demand and cash in hand.
7.
ACCRUED EXPENSES AND OTHER PAYABLES
SCHEDULE
OF ACCRUED EXPENSES AND OTHER PAYABLES
| | |
As of March 31, 2023 | | |
As of December 31, 2022 | |
| Accrued expenses | |
$ | 311,097 | | |
$ | 453,812 | |
| Other payable | |
| 80,149 | | |
| 35,413 | |
| Receipt in advance | |
| 418,713 | | |
| 260,091 | |
| Total | |
$ | 809,959 | | |
$ | 749,316 | |
Accrued
expenses consist of outstanding audit fee, employee claims and salary, service tax and miscellaneous expenses.
Other
payable includes primarily service tax payable.
Receipt
in advance consist of monies received from customer but have yet to satisfied performance obligation.
8.
AMOUNT DUE TO DIRECTOR
SCHEDULE
OF AMOUNT DUE TO DIRECTOR
| StarFIN Holdings Limited – Advances from director – Mr. Wong Kai Cheong | |
$ | 1,900 | |
| | |
| | |
| Amount due to director, as of December 31, 2021 | |
| 1,900 | |
| | |
| | |
| Insite MY Systems Sdn Bhd – Loan from director –– Mr. Wong Kai Cheong | |
| 340,723 | |
| Insite MY Systems Sdn Bhd – Repayment to director –– Mr. Wong Kai Cheong | |
| (54,204 | ) |
| Insite MY Systems Sdn Bhd – Claims from director –– Mr. Wong Kai Cheong | |
| (2,009 | ) |
| | |
| | |
| OrangeFIN Academy Sdn Bhd – Claims from director – Mr. Wong Kai Cheong | |
| 679 | |
| | |
| | |
| Insite MY Innovations Sdn Bhd – Advances to director – Mr. Hoo Swee Ping | |
| (6,058 | ) |
| Insite MY Innovations Sdn Bhd - Advances from director – Mr. Hoo Swee Ping | |
| 2,272 | |
| | |
| | |
| StarFIN Holdings Limtied – Advances from director – Mr. Wong Kai Cheong | |
| 2,000 | |
| StarFIN Holdings Limtied – Advances from director – Mr. Hoo Swee Ping | |
| 300 | |
| | |
| | |
| Amount due to director, as of December 31, 2022 | |
| 283,703 | |
| | |
| | |
| Insite MY Systems Sdn Bhd – Repayment to director – Mr. Wong Kai Cheong | |
| (17,077 | ) |
| Foreign currency translation | |
| (1,185 | ) |
| | |
| | |
| Amount due to director, as of March 31, 2023 | |
| 265,441 | |
Aforementioned
amount is unsecured, non-interest bearing and payable on demand.
9.
AMOUNT DUE TO A RELATED PARTIES
As
of March 31, 2023 and December 31, 2022, the Company has an outstanding amount due to a number of related companies with common director
and shareholder pertaining to miscellaneous expenses made by these related parties on behalf in aggregate amounted $1,495 and $1,678,
respectively.
Aforementioned
amount is unsecured, non-interest bearing and payable on demand.
For
the three months ended March 31, 2023, the Company has paid $24,202 to Ms. Tan Siew Meng, spouse of our Chief Executive Officer, Mr. Wong Kai Cheong
pertaining to leasing of office space.
10.
HIRE PURCHASE
The
outstanding balance of hire purchase loan as of December 31, 2022 and March 31, 2023 can be summarized as follow:
SCHEDULE OF HIRE PURCHASE LOAN
| As of December 31, 2020 | |
$ | 40,332 | |
| Acquisition of new motor vehicle | |
| 36,006 | |
| Repayment of hire purchase loan for the year ended December 31, 2021 | |
| (47,024 | ) |
| As of December 31, 2021 | |
$ | 29,314 | |
| Repayment of hire purchase loan for the year ended December 31, 2022 | |
| (11,172 | ) |
| Foreign currency translation difference | |
| (1,587 | ) |
| As of December 31, 2022 | |
$ | 16,555 | |
| Repayment of hire purchase loan for the three months ended March 31, 2023 | |
| (2,866 | ) |
| Foreign currency translation difference | |
| (58 | ) |
| As of March 31, 2023 | |
$ | (13,631 | ) |
On
April 30, 2021, the Company acquired a motor vehicle amounted $69,148 financed by $36,006 hire purchase loan for 36 months at a fixed
flat rate of 1.88% per annum with first installment commencing June 5, 2021 and monthly installment amounted approximately $1,063. Remaining
balance finance through cash in hand.
Maturities
of the loan for each of the two years and thereafter are as follows:
SCHEDULE OF MATURITIES OF THE LOAN
| Year ending December 31 | |
| | |
| 2023 | |
$ | 8,699 | |
| 2024 | |
$ | 4,932 | |
| Total | |
$ | 13,631 | |
11.
LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES
SCHEDULE OF LEASE RIGHT OF USE
ASSETS AND LEASE LIABILITIES
| Right-Of-Use Assets | |
| | |
| Balance as of December 31, 2020 | |
$ | 152,685 | |
| Amortization for the year ended December 31, 2021 | |
| (87,327 | ) |
| Balance as of December 31, 2021 | |
$ | 65,358 | |
| Recognition of new lease | |
| 163,956 | |
| Amortization for the year ended December 31, 2022 | |
| (90,886 | ) |
| Adjustment for foreign currency translation difference | |
| (3,621 | ) |
| Balance as of December 31, 2022 | |
$ | 134,807 | |
| Amortization for the three months ended March 31, 2023 | |
| (22,588 | ) |
| Adjustment for foreign currency translation difference | |
| (467 | ) |
| Balance as of March 31, 2023 | |
$ | 111,752 | |
| | |
| | |
| Lease Liability | |
| | |
| Balance as of December 31, 2020 | |
$ | 152,685 | |
| Imputed interest for the year ended December 31, 2021 | |
| 5,369 | |
| Gross repayment for the year ended December 31, 2021 | |
| (92,696 | ) |
| Balance as of December 31, 2021 | |
$ | 65,358 | |
| Recognition of new lease | |
| 163,956 | |
| Imputed interest for the year ended December 31, 2022 | |
| 4,212 | |
| Gross repayment for the year ended December 31, 2022 | |
| (95,098 | ) |
| Adjustment for foreign currency translation difference | |
| (3,621 | ) |
| Balance as of December 31, 2022 | |
$ | 134,807 | |
| Imputed interest for three months ended March 31, 2023 | |
| 1,614 | |
| Gross repayment for three months ended March 31, 2023 | |
| (24,202 | ) |
| Adjustment for foreign currency translation difference | |
| (467 | ) |
| Balance as of March 31, 2023 | |
| 111,752 | |
| | |
| | |
| Lease liability current portion | |
| 81,687 | |
| Lease liability non-current portion | |
$ | 30,065 | |
Other
information:
SCHEDULE OF OTHER INFORMATION
| | |
Three months ended March 31, 2023 | | |
Three months ended March 31, 2022 | |
| Cash paid for amounts included in the measurement of lease liabilities: | |
| | | |
| | |
| Operating cash flow to operating lease | |
$ | 24,202 | | |
$ | - | |
| Right-of-use assets obtained in exchange for operating lease liabilities | |
| - | | |
| - | |
| Remaining lease term for operating lease (years) | |
| 1.35 | | |
| - | |
| Weighted average discount rate for operating lease | |
| 5.40 | % | |
| - | % |
12.
CONCENTRATION OF RISK
For
the three months ended March 31, 2023, the Company generated total revenue of $474,802, of which four customers accounted for more than
10% of the Company’s total revenue. For the three months ended March 31, 2022, the Company does not generate any revenue and hence
there was no customer accounted for more than 10% of the Company’s revenue. The customers who accounted for more than 10% of the
Company’s total revenue and its outstanding receivable balance at period-end is presented below:
SCHEDULE
OF CONCENTRATION OF RISK
| | |
For the three months ended March 31 | |
| | |
2023 | | |
2022 | | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| | |
Revenue | | |
Percentage of Revenue | | |
Accounts
receivable, gross | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
| Customer A | |
$ | 97,543 | | |
$ | - | | |
| 21 | % | |
| - | % | |
$ | - | | |
$ | - | |
| Customer B | |
| 78,464 | | |
| - | | |
| 17 | % | |
| - | % | |
| 207,487 | | |
| - | |
| Customer C | |
| 72,861 | | |
| - | | |
| 15 | % | |
| - | % | |
| - | | |
| - | |
| Customer D | |
| 54,145 | | |
| - | | |
| 11 | % | |
| - | % | |
| 56,991 | | |
| - | |
| Others | |
| 171,789 | | |
| - | | |
| 36 | % | |
| - | % | |
| 264,201 | | |
| - | |
| Total | |
$ | 474,802 | | |
$ | - | | |
| 100 | % | |
| - | % | |
$ | 528,679 | | |
$ | - | |
For
the three months ended March 31, 2023, the Company incurred cost of revenue of $53,662, of which four suppliers accounted for more than
10% of the Company’s cost of revenue. For the three months ended March 31, 2022, the Company does not incur any cost of revenue
and hence there was no supplier accounted for more than 10% of the Company’s cost of revenue. The suppliers who accounted for more
than 10% of the Company’s cost of revenue and its outstanding payable balance at period-end is presented below:
SCHEDULE
OF CONCENTRATION OF RISK
| | |
For the three months ended March 31 | |
| | |
2023 | | |
2022 | | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| | |
Cost of revenue | | |
Percentage of Cost of revenue | | |
Accounts
payable, trade | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
| Supplier A | |
$ | 23,877 | | |
$ | - | | |
| 44 | % | |
| - | % | |
$ | 20,199 | | |
$ | - | |
| Supplier B | |
| 13,422 | | |
| - | | |
| 25 | % | |
| - | % | |
| 40,715 | | |
| - | |
| Supplier C | |
| 7,286 | | |
| - | | |
| 14 | % | |
| - | % | |
| - | | |
| - | |
| Supplier D | |
| 6,831 | | |
| - | | |
| 13 | % | |
| - | % | |
| - | | |
| - | |
| Others | |
| 2,246 | | |
| - | | |
| 4 | % | |
| - | % | |
| 4,283 | | |
| - | |
| Total | |
$ | 53,662 | | |
$ | - | | |
| 100 | % | |
| - | % | |
$ | 65,197 | | |
$ | - | |
Our
Chief Executive Officer, Mr. Wong Kai Cheong is a majority shareholder of Supplier A.
13.
INCOME TAXES
The
loss before income taxes of the Company for the three months ended March 31, 2023 and 2022 were comprised of the following:
SCHEDULE
OF COMPONENTS OF LOSS BEFORE INCOME TAXES
| | |
2023 | | |
2022 | |
| | |
For the three months ended March 31 | |
| | |
2023 | | |
2022 | |
| Tax jurisdictions from: | |
| | | |
| | |
| - Local | |
$ | ) | |
$ | ) |
| - Foreign, representing: | |
| | | |
| | |
| British Virginia Island (non-taxable jurisdiction) | |
| (300 | ) | |
| - | |
Provision
for income taxes consisted of the following:
SCHEDULE
OF PROVISION FOR INCOME TAXES
| | |
2023 | | |
2022 | |
| | |
For the three months ended March 31 | |
| | |
2023 | | |
2022 | |
| Current: | |
| | | |
| | |
| - Local | |
$ | - | | |
$ | - | |
| - Foreign | |
$ | - | | |
$ | - | |
| | |
| | | |
| | |
| Deferred tax assets: | |
| | | |
| | |
| - Local | |
$ | - | | |
$ | - | |
| - Foreign | |
$ | 550,188 | | |
$ | - | |
| | |
| | | |
| | |
| Deferred tax liabilities: | |
| | | |
| | |
| - Local | |
$ | - | | |
$ | - | |
| - Foreign | |
$ | 9,250 | | |
$ | - | |
| | |
| | | |
| | |
| Income tax payable: | |
| | | |
| | |
| - Local | |
$ | - | | |
$ | - | |
| - Foreign | |
$ | 206,643 | | |
$ | - | |
All
Malaysia companies are subject to the Malaysia Corporate Tax Laws at a two-tier corporate income tax rate based on amount of paid-up
capital. The 2022 tax rate for company with paid-up capital of MYR 2,500,000 (approximately $567,872) or less and that are not part of
a group containing a company exceeding this capitalization threshold is 17% on the first MYR 600,000 (approximately $136,289) taxable
profit with the remaining balance being taxed at 24%.
14.
DIVIDEND
For
the year ended December 31, 2022, Insite MY Innovations Sdn Bhd and Insite MY Systems Sdn Bhd, passed a board resolution for declaration
of dividend amounted MYR1,700,000 (approximately $385,680) and MYR4,294,000 (approximately $974,182), respectively to StarFIN Asia Sdn
Bhd. Subsequently, StarFIN Asia Sdn Bhd passed a board resolution for declaration of dividend amounted MYR5,794,000 to Mr. Wong Kai Cheong
and Mr. Hoo Swee Ping, before acquired by StarFIN Holdings Limited on January 20, 2023.
No
dividend was declared for the three months ended March 31, 2023.
15.
FOREIGN CURRENCY EXCHANGE RATE
The
Company cannot guarantee that the current exchange rate will remain stable, therefore there is a possibility that the Company could post
the same amount of income for two comparable periods and because of the fluctuating exchange rate post higher or lower income depending
on exchange rate converted into US$ at the end of the financial year. The exchange rate could fluctuate depending on changes in political
and economic environments without notice.
16.
SEGMENT REPORTING
ASC
280, “Segment Reporting” establishes standards for reporting information about operating segments on a basis consistent with
the Company’s internal organization structure as well as information about services categories, business segments and major customers
in financial statements. The Company has single reportable segment based on business unit, information technology business and two reportable
segments based on country, Malaysia and Non-Malaysia.
In
accordance with the “Segment Reporting” Topic of the ASC, the Company’s chief operating decision maker has been identified
as the Chief Executive Officer and President, who reviews operating results to make decisions about allocating resources and assessing
performance for the entire Company. Existing guidance, which is based on a management approach to segment reporting, establishes requirements
to report selected segment information quarterly and to report annually entity-wide disclosures about products and services, major customers,
and the countries in which the entity holds material assets and reports revenue. All material operating units qualify for aggregation
under “Segment Reporting” due to their similar customer base and similarities in economic characteristics; nature of products
and services; and procurement, manufacturing and distribution processes.
SCHEDULE
OF SEGMENT REPORTING
| | |
For the Three Months Ended and
As of March 31, 2023 | |
| By Business Unit | |
Information
Technology Business | | |
Total | |
| Revenue | |
$ | 474,802 | | |
$ | 474,802 | |
| | |
| | | |
| | |
| Cost of revenue | |
| (53,662 | ) | |
| (53,662 | ) |
| | |
| | | |
| | |
| Gross profit | |
$ | 421,140 | | |
$ | 421,140 | |
| | |
| | | |
| | |
| Selling, general and administrative expenses and other income | |
| (755,160 | ) | |
| (755,160 | ) |
| | |
| | | |
| | |
| Loss from operations | |
| (334,020 | ) | |
| (334,020 | ) |
| | |
| | | |
| | |
| Total assets | |
$ | 3,444,632 | | |
$ | 3,444,632 | |
| Capital expenditure | |
$ | 11,395 | | |
$ | 11,395 | |
| | |
For the Three Months Ended and
As of March 31, 2023 | |
| By Country | |
Malaysia | | |
Non-Malaysia | | |
Total | |
| Revenue | |
$ | 474,802 | | |
$ | - | | |
$ | 474,802 | |
| | |
| | | |
| | | |
| | |
| Cost of revenue | |
| (53,662 | ) | |
| - | | |
| (53,662 | ) |
| | |
| | | |
| | | |
| | |
| Gross profit | |
$ | 421,140 | | |
$ | - | | |
$ | 421,140 | |
| | |
| | | |
| | | |
| | |
| Selling, general and administrative expenses and other income | |
| (631,663 | ) | |
| (123,497 | ) | |
| (755,160 | ) |
| | |
| | | |
| | | |
| | |
| Loss from operations | |
| (210,523 | ) | |
| (123,497 | ) | |
| (334,020 | ) |
| | |
| | | |
| | | |
| | |
| Total assets | |
$ | 2,708,958 | | |
$ | 735,674 | | |
$ | 3,444,632 | |
| Capital expenditure | |
$ | 11,395 | | |
$ | - | | |
$ | 11,395 | |
| | |
For the Three Months Ended and
As of March 31, 2022 | |
| By Business Unit | |
Information
Technology Business | | |
Total | |
| Revenue | |
$ | - | | |
$ | - | |
| | |
| | | |
| | |
| Cost of revenue | |
| - | | |
| - | |
| | |
| | | |
| | |
| Gross profit | |
$ | - | | |
$ | - | |
| | |
| | | |
| | |
| General and administrative expenses and other income | |
| (6,123 | ) | |
| (6,123 | ) |
| | |
| | | |
| | |
| Loss from operations | |
| (6,123 | ) | |
| (6,123 | ) |
| | |
| | | |
| | |
| Total assets | |
$ | 965,166 | | |
$ | 965,166 | |
| Capital expenditure | |
$ | - | | |
$ | - | |
| | |
For the Three Months Ended and
As of March 31, 2022 | |
| By Country | |
Malaysia | | |
Non-Malaysia | | |
Total | |
| Revenue | |
$ | - | | |
$ | - | | |
$ | - | |
| | |
| | | |
| | | |
| | |
| Cost of revenue | |
| - | | |
| - | | |
| - | |
| | |
| | | |
| | | |
| | |
| Gross profit | |
$ | - | | |
$ | - | | |
$ | - | |
| | |
| | | |
| | | |
| | |
| General and administrative expenses and other income | |
| - | | |
| (6,123 | ) | |
| (6,123 | ) |
| | |
| | | |
| | | |
| | |
| Loss from operations | |
| - | | |
| (6,123 | ) | |
| (6,123 | ) |
| | |
| | | |
| | | |
| | |
| Total assets | |
$ | - | | |
$ | 965,166 | | |
$ | 965,166 | |
| Capital expenditure | |
$ | - | | |
$ | - | | |
$ | - | |
17.
SUBSEQUENT EVENTS
In
accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure
of events that occur after the balance sheet date but before financial statements are issued, the Company has evaluated all events or
transactions that occurred after March 31, 2023 up through the date the Company presented these unaudited financial statements.