NOTES
TO FINANCIAL STATEMENTS
FOR
THE YEARS ENDED DECEMBER 31, 2018 AND 2017
(Currency
expressed in United States Dollars (“US$”), except for number of shares)
1.
|
ORGANIZATION
AND BUSINESS BACKGROUND
|
United
Royale Holdings Corp., formerly known as Bosy Holdings Corp. (“the Company”, “we”, “us” or
“our”) was incorporated in the State of Nevada on June 23, 2015. We intend to offer planting and cultivation services
to land owners in regards to the planting and cultivation of Aquilaria Subintegra & Aquilaria Sinensis trees. We also intend
to provide services relating to the extraction of Agarwood from such trees through a process known as “inoculation.”
On
September 30, 2018, the Company and Mr. Chen Zheru, representing the sole shareholder of IV Enterprises Development Limited,
a Seychelles corporation (“IVED”), entered into a Sale and Purchase Agreement, pursuant to which the Company acquired
100% (one hundred percent) of the shareholding of IVED. IVED provides tree nurseries, including planting, cultivation and inoculation
services through its wholly-owned subsidiary, Oudh Tech Sdn Bhd, in Malaysia. The acquisition is completed on September 30, 2018.
Mr.
Chen Zheru is the common director and major shareholder of the Company and IVED. As a result of this common ownership and
in accordance with the FASB Accounting Standards Codification Section 805 “Business Combination”, the transaction
is being treated as a combination between entities under common control. The recognized assets and liabilities were transferred
at their carrying amounts at the date of the transaction. The equity accounts of the combining entities are combined. Further,
the companies will be combined retrospectively for prior year comparative information as if the transaction had occurred on January
1, 2017.
2.
|
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
|
Going
Concern
The
accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and
the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying financial statements,
for the year ended December 31, 2018, the Company incurred a net loss of $198,477 and used cash in operating activities of $181,560.
These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year of the
date that the financial statements are issued. The financial statements do not include any adjustments that might be necessary
if the Company is unable to continue as a going concern.
The
Company’s ability to continue as a going concern is dependent upon improving its profitability and the continuing financial
support from its shareholders. Management believes the existing shareholders or external financing will provide the additional
cash to meet the Company’s obligations as they become due. No assurance can be given that any future financing, if needed,
will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able
to obtain additional financing, if needed, it may contain undue restrictions on its operations, in the case of debt financing,
or cause substantial dilution for its stock holders, in the case of equity financing.
Basis
of presentation
The
accompanying financial statements are prepared in accordance with generally accepted accounting principles in the United States
of America (“US GAAP”).
The
accompanying financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany transactions
and balances were eliminated in consolidation.
Below
is the organization chart of the Group.
UNITED
ROYALE HOLDINGS CORP.
(Formerly
known as Bosy Holdings Corp.)
NOTES
TO FINANCIAL STATEMENTS
FOR
THE YEARS ENDED DECEMBER 31, 2018 AND 2017
(Currency
expressed in United States Dollars (“US$”), except for number of shares)
Use
of estimates
Management
uses estimates and assumptions in preparing these financial statements in accordance with US GAAP. Those estimates and assumptions
affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities in the balance sheet,
and the reported revenue and expenses during the periods reported. Actual results may differ from these estimates.
Cash,
cash equivalents, and restricted cash
Cash
and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions
and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments.
Restricted cash represents cash restricted by Hang Seng Bank as the bank account was forced to close on October 5, 2018, and
this amount of cash was held by Hang Seng Bank . The reason for forced closure was a long period dormant without account activity.
Our
deposit is currently deposit in HSBC Hong Kong and Hang Seng Bank, and there is a Deposit Protection Scheme protects our
eligible deposits held with bank in Hong Kong which is members of the Scheme. The scheme will pay us a compensation up to a limit
of HKD500,000, which is equivalent to $64,102, if HSBC Hong Kong fails.
Plant
and equipment
Plant
and equipment are stated at cost less accumulated depreciation and impairment. Depreciation of plant, equipment and software are
calculated on the straight-line method over their estimated useful lives or lease terms generally as follows:
Classification
|
|
Useful
Life
|
Computer
and Software
|
|
3
years
|
Equipment
|
|
10
years
|
The
Company purchased 2 computers at the end of June 2017, and the computers has been subject to depreciation since the utilization
in July 2017. Expenditures for maintenance and repairs will be expensed as incurred.
Biological
Assets
Biological
Assets of the Company comprise of agarwood sapling and plantation cost of agarwood.
Pursuant
to ASC 905-360-25-2, biological Assets are planted and brought to production by the Company or on a contract basis. Saplings are
usually purchased as nursery stock and transplanted into the farmland in the desired pattern.
Cost of biological assets consists of accumulated planation development costs incurred from commencement of planting of
seedlings up to maturity of the crop cultivated. Capitalization of planation development and other operating costs ceases upon
commencement of commercial harvesting, which range from 7 to 9 years. Net proceeds from sales of products before commercial
production begins shall be applied to the capitalized cost of the plants, trees, or vines.
Biological
Assets is measured using average cost, and is measured at the lower of cost and net realizable value. When evidence exists that
the net realizable value of biological Assets is lower than its cost, the difference shall be recognized as a loss in earnings
in the period in which it occurs. Impairment loss may be required, for example, due to damage, physical deterioration,
obsolescence, changes in price levels, or other causes.
Pursuant to ASC 905-360-35-4, when production in commercial quantities begins, the accumulated costs shall
be depreciated over the estimated useful life of the particular farmland.
UNITED
ROYALE HOLDINGS CORP.
(Formerly
known as Bosy Holdings Corp.)
NOTES
TO FINANCIAL STATEMENTS
FOR
THE YEARS ENDED DECEMBER 31, 2018 AND 2017
(Currency
expressed in United States Dollars (“US$”), except for number of shares)
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 statements of operations.
The
reporting currency of the Company is the United States Dollars (“US$”) and the accompanying financial statements have
been expressed in US$. Hong Kong Dollars (“HK$”), which is the respective functional currencies for the Company as
the deposit is currently kept in HSBC Hong Kong. In addition, the Company’s subsidiaries maintain their books and records
in their respective local currency, which consists of the Hong Kong Dollars (“HK$”) and Malaysian Ringgit (“MYR”),
which is also the respective functional currency of the subsidiaries.
In
general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not the US$ are translated
into US$ using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during
the period. The gains and losses resulting from translation of financial statements of a foreign subsidiary are recorded as a
separate component of accumulated other comprehensive loss within equity.
Translation
of amounts from the local currencies of the Company into US$ has been made at the following exchange rates for the respective
periods:
|
|
As
of and for the year ended
December 31,
|
|
|
|
2018
|
|
|
2017
|
|
Period-end MYR : US$1 exchange
rate
|
|
|
4.13
|
|
|
|
4.05
|
|
Period-average MYR : US$1 exchange rate
|
|
|
4.04
|
|
|
|
4.28
|
|
Period-end /
average HK$ : US$1 exchange rate
|
|
|
7.75
|
|
|
|
7.75
|
|
Revenue
recognition
In
accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”)
Topic 606, “Revenue From Contracts With Customers”, the Company recognizes revenue from sales of goods and services
when the following five following steps are carried out: (1) Identify the contract; (2) Identify the performance obligations;
(3) Determine the transaction price; (4) Allocate the transaction price; (5) Recognize revenue. For the year ended December
31, 2018, the Company had no revenue recorded, as a result, there was no effect on revenue by adopting ASC 606 starting from
January 1, 2018.
UNITED
ROYALE HOLDINGS CORP.
(Formerly
known as Bosy Holdings Corp.)
NOTES
TO FINANCIAL STATEMENTS
FOR
THE YEARS ENDED DECEMBER 31, 2018 AND 2017
(Currency
expressed in United States Dollars (“US$”), except for number of shares)
Income
taxes
The
Company accounts for income taxes using the asset and liability method. The asset and liability method requires recognition of
deferred tax assets and liabilities for expected future tax consequences of temporary differences that currently exist between
tax bases and financial reporting bases of the Company’s assets and liabilities. Deferred income tax assets and liabilities
are measured using enacted tax rates expected to apply to taxable income in the years in which these temporary differences are
expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized
in income in the period that includes the enactment date. A valuation allowance is provided on deferred taxes if it is determined
that it is more likely than not that the asset will not be realized. The Company recognizes penalties and interest accrued related
to income tax liabilities in the provision for income taxes in its Consolidated Statements of Income.
Significant
management judgment is required to determine the amount of benefit to be recognized in relation to an uncertain tax position.
The Company uses a two-step process to evaluate tax positions. The first step requires an entity to determine whether it is more
likely than not (greater than 50% chance) that the tax position will be sustained. The second step requires an entity to recognize
in the financial statements the benefit of a tax position that meets the more-likely-than-not recognition criterion. The amounts
ultimately paid upon resolution of issues raised by taxing authorities may differ materially from the amounts accrued and may
materially impact the financial statements of the Company in future periods.
Fair
value of financial instruments
The
carrying value of the Company’s financial instruments: cash and cash equivalents, prepayments, amount due to a director
and accrued liabilities approximate at their fair values because of the short-term nature of these financial instruments.
The
Company 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
Recent
accounting pronouncements
In
May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts
with Customers (Topic 606) (ASU 2014-09), which amends the existing accounting standards for revenue recognition. In August 2015,
the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which delays
the effective date of ASU 2014-09 by one year. The FASB also agreed to allow entities to choose to adopt the standard as of the
original effective date. In March 2016, the FASB issued Accounting Standards Update No. 2016-08, Revenue from Contracts with Customers
(Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (ASU 2016-08) which clarifies the implementation
guidance on principal versus agent considerations. The guidance includes indicators to assist an entity in determining whether
it controls a specified good or service before it is transferred to the customers. The new standard further requires new disclosures
about contracts with customers, including the significant judgments the company has made when applying the guidance. We adopted
the new standard effective January 1, 2018, using the modified retrospective transition method. We finalized our analysis and
the adoption of this guidance did not have a material impact on our consolidated financial statements and our internal
controls over financial reporting as we did not have revenue since inception.
In
November 2016, the FASB issued Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU
2016-18), which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in
cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash
flows. We adopted the new standard effective January 1, 2018, and do not expect the standard to have a material impact on our
financial statements.
In
January 2017, the FASB issued Accounting Standards Update No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition
of a Business (ASU 2017-01), which revises the definition of a business and provides new guidance in evaluating when a set of
transferred assets and activities is a business. We adopted the new standard effective January 1, 2018 on a prospective basis.
The new standard did not have a material impact on our consolidated financial statements.
In
February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02), as amended, which generally
requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet
and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements.
We will adopt the new standard effective January 1, 2019 on a modified retrospective basis and will not restate comparative periods.
We will elect the package of practical expedients permitted under the transition guidance, which allows us to carryforward our
historical lease classification, our assessment on whether a contract is or contains a lease, and our initial direct costs for
any leases that exist prior to adoption of the new standard. We will also elect to combine lease and non-lease components and
to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in
the consolidated statements of income on a straight-line basis over the lease term. We do not expect the new standard to have
a material impact on our remaining consolidated financial statements.
The
Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption
of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.
UNITED
ROYALE HOLDINGS CORP.
(Formerly
known as Bosy Holdings Corp.)
NOTES
TO FINANCIAL STATEMENTS
FOR
THE YEARS ENDED DECEMBER 31, 2018 AND 2017
(Currency
expressed in United States Dollars (“US$”), except for number of shares)
The
prepaid expenses as of December 31, 2018 included OTCQB annual fee of $12,000, and deposit of $1,931 in transfer agent
and farm maintenance service provider, while the prepaid expenses as of December 31, 2017 only included the retainer of $425 kept
in the transfer agent’s account, prepaid services fee of $ 900, and deposit of $741.
|
|
As
of
December 31, 2018
|
|
|
As
of
December 31, 2017
|
|
Computer and Software
|
|
$
|
3,878
|
|
|
$
|
3,878
|
|
Equipment
|
|
|
1,816
|
|
|
|
1,852
|
|
|
|
|
5,694
|
|
|
|
5,730
|
|
Less: Accumulated
Depreciation
|
|
|
(2,226
|
)
|
|
|
(754
|
)
|
Plant and equipment,
net
|
|
$
|
3,468
|
|
|
$
|
4,976
|
|
The
Company acquired a computer as equipment and a software at $3,731 and $147 respectively in 2017, and the accumulated depreciation
as of December 31, 2018 and December 31, 2017 were $1,939 and $646, which constituted a net book value of $1,939 and 3,232 respectively.
The
Company acquired Engine Pump at MYR7,500 in 2017. The accumulated depreciations as of December 31, 2018 and December 31, 2017
were $288 and $108, which constituted a net book value of $1,529 and 2,498 respectively.
The
depreciation expense for 2018 and 2017 were $1,472 and $754 respectively.
Biological
Assets of the Company comprise of agarwood sapling and plantation cost of agarwood.
The
Company acquired the agarwood sapling at MYR98,800 (approximately $24,395) in 2017. The accumulated planation development costs
incurred from commencement of planting of seedlings up to December 31, 2018 and December 31, 2017 were $13,083 and $9,328 respectively.
An
impairment test was carried on December 31, 2018, we wrote off $18,109 of biological assets as a result. The reason for impairment
loss was the natural immortality of the agarwood trees.
The
income (loss) before income taxes of the Company for the years ended December 31, 2018 and 2017 were comprised of the following:
|
|
For
the years ended December 31,
|
|
|
|
2018
|
|
|
2017
|
|
Tax jurisdictions from:
|
|
|
|
|
|
|
|
|
– Local
|
|
$
|
(178,973
|
)
|
|
$
|
(42,650
|
)
|
|
|
|
|
|
|
|
|
|
– Foreign, representing:
|
|
|
|
|
|
|
|
|
Malaysia
|
|
|
(18,307
|
)
|
|
|
(12,767
|
)
|
Hong Kong
|
|
|
(98
|
)
|
|
|
(40
|
)
|
Other
(primarily nontaxable jurisdictions)
|
|
|
(1,100
|
)
|
|
|
(900
|
)
|
|
|
|
|
|
|
|
|
|
Loss before income taxes
|
|
$
|
(198,198
|
)
|
|
$
|
(56,357
|
)
|
UNITED
ROYALE HOLDINGS CORP.
(Formerly
known as Bosy Holdings Corp.)
NOTES
TO FINANCIAL STATEMENTS
FOR
THE YEARS ENDED DECEMBER 31, 2018 AND 2017
(Currency
expressed in United States Dollars (“US$”), except for number of shares)
Provision
for income taxes consisted of the following:
|
|
|
For
the years ended December 31,
|
|
|
|
|
2018
|
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
Current:
|
|
|
|
|
|
|
|
|
– Local
|
|
$
|
-
|
|
|
$
|
-
|
|
– Foreign:
|
|
|
|
|
|
|
|
|
Hong Kong
|
|
|
-
|
|
|
|
-
|
|
The PRC
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Deferred:
|
|
|
|
|
|
|
|
|
– Local
|
|
|
-
|
|
|
|
-
|
|
– Foreign
|
|
|
-
|
|
|
|
-
|
|
|
|
$
|
-
|
|
|
$
|
-
|
|
The
effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply
a broad range of income tax rates. During the periods presented, the Company has a number of subsidiaries that operates in different
countries and is subject to tax in the jurisdictions in which its subsidiaries operate, as follows:
United
States of America
The
Tax Act reduces the U.S. statutory corporate tax rate from 35% to 21% for our tax years beginning in 2018, which resulted in the
re-measurement of the federal portion of our deferred tax assets as of December 31, 2017 from the 35% to 21% tax rate.
The Company (URYL) is registered in the State of Nevada and is subject to United States of America
tax law. As of December 31, 2018, the operations in the United States of America incurred $414,420 of cumulative net operating
losses (NOL’s) which can be carried forward to offset future taxable income. The NOL carryforwards begin to expire in 2038,
if unutilized. The Company has provided for a full valuation allowance of approximately $87,028 against the deferred tax assets
on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than
not that these assets will not be realized in the future.
UNITED
ROYALE HOLDINGS CORP.
(Formerly
known as Bosy Holdings Corp.)
NOTES
TO FINANCIAL STATEMENTS
FOR
THE YEARS ENDED DECEMBER 31, 2018 AND 2017
(Currency
expressed in United States Dollars (“US$”), except for number of shares)
Hong
Kong
Bosy Holdings (HK) Limited operating in Hong
Kong are subject to the Hong Kong Profits Tax at the statutory income tax rate of 16.5% on its assessable income for its tax year.
For the year ended December 31, 2018 and 2017, subsidiary in Hong Kong incurred an aggregate operating loss of $940 and
$842 respectively. The cumulative operating losses can be carried forward to offset future taxable income. The Company
has provided for a full valuation allowance against the deferred tax assets of $155 on the expected future tax benefits
from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be
realized in the future.
Malaysia
Oudh
Tech Sdn Bhd is subject to the Malaysia Corporate Tax Laws at a progressive income tax rate starting from 20% on the assessable
income for its tax year. For the years ended December 31, 2018 and 2017, Oudh Tech Sdn Bhd incurred an aggregate operating loss
of $18,307 and $12,767, respectively, which can be carried forward indefinitely to offset its taxable income. As of December 31,
2018, the operations in Malaysia incurred $31,698 of cumulative net operating losses which can be carried forward to offset future
taxable income. The net operating loss can be carried forward indefinitely. The Company has provided for a full valuation allowance
against the deferred tax assets of $6,340 on the expected future tax benefits from the net operating loss carryforwards as the
management believes it is more likely than not that these assets will not be realized in the future.
The
following table sets forth the significant components of the aggregate deferred tax assets of the Company as of December 31, 2018
and December 31, 2017:
|
|
As
of
|
|
|
As
of
|
|
|
|
December
31, 2018
|
|
|
December
31, 2017
|
|
Deferred tax assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill and intangibles
|
|
$
|
-
|
|
|
$
|
-
|
|
Net operating loss carryforwards
|
|
|
|
|
|
|
|
|
– United States of
America
|
|
|
87,028
|
|
|
|
49,444
|
|
– Hong Kong
|
|
|
155
|
|
|
|
139
|
|
– Malaysia
|
|
|
6,340
|
|
|
|
2,678
|
|
|
|
|
93,523
|
|
|
|
52,261
|
|
Less: valuation
allowance
|
|
|
(93,523
|
)
|
|
|
(52,261
|
)
|
Deferred tax
assets
|
|
$
|
-
|
|
|
$
|
-
|
|
Management believes that it is more likely
than not that the deferred tax assets will not be fully realizable in the future. Accordingly, the Company provided for a full
valuation allowance against its deferred tax assets of $93,523 as of December 31, 2018. For the year ended December 31,
2018, the valuation allowance increased by $41,262, primarily relating to the increase in salary commitment.
The
Company had not filed its tax returns since its inception as of December 31, 2017 and the management had filed the previous outstanding
tax returns during 2018.
UNITED
ROYALE HOLDINGS CORP.
(Formerly
known as Bosy Holdings Corp.)
NOTES
TO FINANCIAL STATEMENTS
FOR
THE YEARS ENDED DECEMBER 31, 2018 AND 2017
(Currency
expressed in United States Dollars (“US$”), except for number of shares)
6.
|
AMOUNT
DUE TO DIRECTOR
|
As
of December 31, 2018 and 2017, our director has loaned to the Company $66,355 and $66,038, respectively. This loan is unsecured,
non-interest bearing and due on demand. During 2018, our director, Teoh Kooi Sooi waived $7,426 in Oudh Tech Sdn Bhd, a wholly
owned subsidiary acquired on September 30, 2018, as contribution and recorded in additional paid in capital.
On
December 12, 2017, a related company which is controlled by Mr. Chen Zheru cancelled its 60,000,000 shares of common stock.
On
September 30, 2018, our CEO, Mr. Teoh Kooi Sooi, waived $7,426 in Oudh Tech Sdn Bhd, a wholly owned subsidiary acquired on
September
30, 2018, as contribution and recorded in additional paid in capital.
As
of
December 31, 2018 and 2017, there are 141,965,520
shares of common stock issued and outstanding.
There
were no stock options, warrants or other potentially dilutive securities outstanding as of December 31, 2018.
On
December 1, 2017, Our Chief Executive Officer, Mr. Teoh and our director, Mr. Chen entered into the employment contract with the
Company. Mr. Teoh was paid at $5,000 per month and Mr. Chen was paid at $500 per month, both salary were paid in wire transfer.
On the same day, the Company employed one more accountant at $800 per month. Mr. Chen was resigned on November 30, 2018.
In addition, on December 1, 2018, our director,
Mr. Li Gongming entered into the employment contract with the Company. Mr. Li was paid at $5,000 per month in form of wire
transfer.
9.
|
CONCENTRATIONS
OF RISK
|
The
Company is exposed to the following concentrations of risk:
(a)
Major customer
For
the years ended December 31, 2018 and 2017, the customer who accounted for 10% or more of the Company’s purchases and its
outstanding payable balance at period-end is presented as follows:
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
Revenues
|
|
|
Percentage
of revenues
|
|
|
Accounts
receivable, trade
|
|
Customer
A
|
|
$
|
-
|
|
|
|
12,500
|
|
|
|
-
|
%
|
|
|
100
|
%
|
|
$
|
-
|
|
|
|
-
|
|
|
|
$
|
-
|
|
|
|
12,500
|
|
|
|
-
|
%
|
|
|
100
|
%
|
|
$
|
-
|
|
|
|
-
|
|
(b)
Major vendor
For
the years ended December 31, 2018 and 2017, the vendor who accounted for 10% or more of the Company’s purchases and its
outstanding payable balance at period-end is presented as follows:
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
Purchase
|
|
|
Percentage
of purchases
|
|
|
Accounts
payable, trade
|
|
Vendor
A
|
|
$
|
-
|
|
|
|
10,000
|
|
|
|
-
|
%
|
|
|
100
|
%
|
|
$
|
-
|
|
|
|
-
|
|
|
|
$
|
-
|
|
|
|
10,000
|
|
|
|
-
|
%
|
|
|
100
|
%
|
|
$
|
-
|
|
|
|
-
|
|
Our
CEO, Mr. Teoh, was the director of Vendor A previously. He resigned from Vendor A on January 25, 2017, while the sale was generated
in June 2017.