The accompanying notes are an integral part
of these condensed consolidated financial statements.
The accompanying notes are an integral part
of these condensed consolidated financial statements.
The accompanying notes are an integral part
of these condensed consolidated financial statements.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
(In U.S. dollars)
(Unaudited)
1.
|
ORGANIZATION AND BUSINESS
|
Vitaxel Group Limited (formerly
Albero, Corp., the “Company”), incorporated in Nevada, is engaged in direct selling industry and online shopping platform
primarily through its operating entities in Malaysia.
Vitaxel SDN BHD ("Vitaxel"),
was incorporated in Malaysia on August 10, 2012. The Company is primarily engaged in the direct selling industry utilizing a multi-level
marketing model with an emphasis on travel, entertainment and lifestyle products and services.
Vitaxel Online Mall SBN BHD ("Vionmall"),
was incorporated in Malaysia on September 22, 2016. The Company is primarily in developing online shopping platforms geared to
Vitaxel and its members and the third party suppliers of products and services.
Vitaxel Singapore PTE. Ltd. (“Vitaxel
Singapore”) was incorporated in Singapore on February 16, 2016.
REVERSE ACQUISITION
On January 18, 2016, the Company
completed and closed a share exchange (the “Share Exchange”) under a Share Exchange Agreement (the “Share Exchange
Agreement”) of the same date among us, Vitaxel SDN BHD, a Malaysian corporation (“Vitaxel”), the shareholders
of Vitaxel, Vitaxel Online Mall SBN BHD, a Malaysian corporation (“Vionmall”) and the shareholders of Vionmall pursuant
to which Vitaxel and Vionmall each became wholly owned subsidiaries of ours. In the Share Exchange, all of the outstanding shares
of Vitaxel and Vionmall were converted into shares of our Common Stock, as described in more detail below.
In connection with the Share
Exchange and pursuant to the Split-Off Agreement, we transferred our pre-Share Exchange assets and liabilities to our pre-Share
Exchange majority stockholder, in exchange for the surrender by him and cancellation of 3,000,000 shares of our Common Stock
As a result of the Share Exchange
and Split-Off, we discontinued our pre-Share Exchange business and acquired the businesses of Vitaxel and Vionmall, and will continue
the existing business operations of Vitaxel and Vionmall as a publicly-traded company under the name Vitaxel Group Limited.
In accordance with “reverse
acquisition” accounting treatment, our historical financial statements as of period ends, and for periods ended, prior to
the acquisition will be replaced with the historical financial statements of Vitaxel and Vionmall prior to the Share Exchange in
all future filings with the SEC.
2.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
Basis of presentation
The accompanying unaudited consolidated
financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United
States of America (“U.S. GAAP”) for interim financial information Article 8 of Regulation S-X.
This basis of accounting involves
the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses
are recognized when incurred. The Company’s financial statements are expressed in U.S. dollars.
Fiscal year end is December 31.
Use of estimates
The preparation of consolidated
financial statements in conformity with accounting principles generally accepted in the United States of America requires management
to make estimates and assumptions that affect certain 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
periods. Actual results could differ from those estimates.
Foreign currency translation
and transactions
The functional currency of the
Company is the Malaysian Ringgit (“MYR”) and reporting currency of the Company is United States Dollar “USD”).
The financial statements of the Company are translated into USD using the exchange rate as of the balance sheet date for assets
and liabilities and average exchange rate for the year for income and expense items. Translation gains and losses are recorded
in accumulated other comprehensive income or loss as a component of shareholders' equity.
Cash and cash equivalents
Cash and cash equivalents consist
of cash on hand and highly liquid investments, which are unrestricted from withdrawal or use, and which have original maturities
of three months or less when purchased.
Accounts receivable
Accounts receivable are recognized
and carried at original invoiced amount less an allowance for any potential uncollectible amounts. An estimate for doubtful debts
is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. The Company generally
does not require collateral from its customers. For the period ended March 31, 2017 and 2016, the Company did not write off
any accounts receivable as bad debts.
Fair value of financial
instruments
FASB ASC 820, “Fair Value
Measurement,” specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect
assumptions other market participants would use based upon market data obtained from independent sources (observable inputs). In
accordance with ASC 820, the following summarizes the fair value hierarchy:
Level 1 Inputs – Unadjusted
quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access.
Level 2 Inputs – Inputs other
than the quoted prices in active markets that are observable either directly or indirectly.
Level 3 Inputs – Inputs based
on prices or valuation techniques that are both unobservable and significant to the overall fair value measurements.
ASC 820 requires the use of observable
market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels
of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant
to the fair value measurements. Valuation techniques used need to maximize the use of observable inputs and minimize the use of
unobservable inputs. As of March 31, 2017 and December 31, 2016, none of the Company’s assets and liabilities was required
to be reported at fair value on a recurring basis. Carrying values of non-derivative financial instruments, including cash, accounts
receivables, payables and accrued liabilities, approximate their fair values due to the short term nature of these financial instruments.
There were no changes in methods or assumptions during the periods presented.
Inventories
Inventories are stated at lower
of cost or market, with cost determined on a weighted-average method, and not to exceed net realizable value. The Company writes
down its inventory balances for obsolete amounts estimated on an individual basis for the finished goods and the raw material items
with large amounts, and by a category basis for low value raw material items.
Long-term investment
The Company’s
interests in associated companies are accounted for under equity method under U.S. GAAP. Under the equity method, if the Company’s
share of losses of an associated company equals or exceeds the amount of investment plus advances made by the Company, the Company
ordinarily discontinues including its share of losses and the investment is reported at nil value. If the associated company subsequently
reports net income, the Company will resume applying the equity method only after its share of that net income equals the share
of net losses not recognized during the period the equity method was suspended.
Property, plant and equipment,
net
Property, plant and equipment
are carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated
useful lives:
Office equipment
|
10 years
|
Furniture and fixtures
|
10 years
|
Leasehold improvement
|
10 years
|
Revenue recognition
Product sales − The Company
generally recognizes revenue upon delivery and when both the title and risk and rewards pass to the independent members or purchasers
of the products. Product sales are recognized net of product returns, discounts and taxes. A reserve for product returns is accrued
based on historical experience. There was no deferred revenue accrued as of March 31, 2017 and December 31, 2016.
Membership fee − The Company
recognizes the membership fee revenue over the term of the membership, which is 12 months. The revenue will not be recognized until
the 14 days cooling-off period is expired. For the period ended March 31, 2017 and 2016, all membership fees were waived
by the Company for promotion purpose. Membership fees will be imposed with effect from July 1, 2017. A notice dated April 18, 2017
has been disseminated by the Company referenced 17026 elaborating the details.
Loyalty program
The Company operates loyalty
program which allows customer to accumulate redemption points when they purchase products from the Company. The redemption points
can be used to purchase a selection of products at discounted price or redeem products.
The Company allocates consideration
received from the sale of goods to the goods sold and the redemption points issued that are expected to be redeemed.
The consideration allocated to
the redemptions points issued is measured at fair value of the redemption points. It is recognized as a liability (deferred revenue)
in the statement of financial position and recognized as revenue when the points are redeemed, have expired or are no longer expected
to be redeemed. The amount of revenue recognized is based on the number of points that have been redeemed, relative to the number
expected to redeem.
As of March 31, 2017 and December
31, 2016, there was no such deferred revenue recorded.
Commission expense
Commission
expense incurred by the Company is recognized as cost of revenue and as a liability (commission payable in the consolidated balance
sheet. Commission expense is not recoverable once recognized and is expensed as incurred.
Income taxes
Current income taxes are provided
for in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences
exist between the tax bases of assets and liabilities and their reported amounts in the combined financial statements. Net operating
loss carry forwards and credits are applied using enacted statutory tax rates applicable to future years. Deferred tax assets are
reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that a portion of or all of the
deferred tax assets will not be realized. The components of the deferred tax assets and liabilities are individually classified
as current and non-current based on their characteristics.
The impact of an uncertain income
tax position on the income tax return is recognized at the largest amount that is more-likely-than-not to be sustained upon audit
by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of
being sustained. Interest and penalties on income taxes are classified as a component of the provisions for income taxes. The Company
did not recognize any income tax due to uncertain tax positions or incur any interest and penalties related to potential underpaid
income tax expense as of March 31, 2017 and December 31, 2016.
Forward
Stock split
On January 27, 2016, our Board
of Directors declared a 1333-for-1 forward stock split of our outstanding common stock, par value $0.000001 per share in the form
of a dividend (the “Stock Split”) with a record date of February 8, 2016 (the “Record Date”). On February
22, 2016, Financial Industry Regulatory Authority, Inc. (“FINRA”) notified us of its announcement of the payment date
of the Stock Split as February 23, 2016 (the “Payment Date”). On the Payment Date, as a result of the Stock split,
each holder of our common stock as of the Record Date received 1332 additional shares of our common stock for each one share owned,
rounded up to the nearest whole share. All common stock share amounts referenced in this Quarterly Report give retroactive effect
to the Stock Split.
Comprehensive loss
Comprehensive loss includes net
loss and cumulative foreign currency translation adjustments and is reported in the Consolidated Statement of Income and
Comprehensive Income(Loss)
Loss per share
The loss per share is computed
using the weighted average number of shares outstanding during the fiscal years. For the period ended March 31, 2017 and 2016,
there was no dilutive effect due to net loss.
Related party
transactions
A
related party is generally defined as:
(i)
any person that holds the Company’s securities including such person’s immediate families,
(ii) the Company’s management,
(iii) someone that directly
or indirectly controls, is controlled by or is under common control with the Company, or
(iv) anyone who can significantly
influence the financial and operating decisions of the Company.
A transaction is considered
to be a related party transaction when there is a transfer of resources or obligations between related parties.
Recently issued accounting
pronouncements
Revenue Recognition:
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The amendments in ASU
2015-14 defer the effective date of ASU 2014-09 for all entities by one year. Public business entities, certain not-for-profit
entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after
December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of
annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period.
Financial instrument:
In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement
of Financial Assets and Financial Liabilities” (“ASU 2016-01”). The standard addresses certain aspects of recognition,
measurement, presentation, and disclosure of financial instruments. ASU 2016-01 is effective for fiscal years, and interim periods
within those years, beginning after December 15, 2017, and early adoption is not permitted. Accordingly, the standard is effective
for us on January 1, 2018. We are currently evaluating the impact that the standard will have on our consolidated financial statements.
Leases:
In February
2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-2”), which provides guidance on lease amendments
to the FASB Accounting Standard Codification. This ASU will be effective for us beginning in January 1, 2019. We are currently
in the process of evaluating the impact of the adoption of ASU 2016-2 on our consolidated financial statements.
The Company believes that there
were no other accounting standards recently issued that had or are expected to have a material impact on our financial position
or results of operations.
The accompanying consolidated
financial statements have been prepared assuming the Company will continue as a going concern. The Company has incurred losses
since its inception resulting in an accumulated deficit of $2,870,496 as of March 31, 2017. The ability to continue as a going
concern is dependent upon the Company generating profitable operations in the future and/or obtaining the necessary financing to
meet its obligations and repay its liabilities arising from normal business operations when they become due. These combined financial
statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification
of liabilities that might be necessary should the Company be unable to continue as a going concern.
The Company expects to finance
operations primarily through cash flow from revenue and capital contributions from principal shareholders. In the event that we
require additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve
our strategic objectives, our principal shareholders have indicated the intent and ability to provide additional equity financing.
These conditions raise substantial
doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is
dependent on our ability to meet obligations as they become due and to obtain additional equity or alternative financing required
to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company
will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, or if at
all. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
4.
|
OTHER RECEIVABLES AND OTHER ASSETS
|
Other receivables and other assets
consist of the following:
|
|
As of
March 31,
2017
|
|
|
As of
December 31,
2016
|
|
Deposits (1)
|
|
$
|
17,591
|
|
|
$
|
19,497
|
|
Others (2)
|
|
|
22,467
|
|
|
|
2,481
|
|
|
|
$
|
40,058
|
|
|
$
|
21,978
|
|
(1) Deposits
represented payments for rental, utilities, and construction funds to government department.
(2) Others
mainly consists other miscellaneous payments.
On October 5, 2016, the Company
invested 958,000 Thai Baht or $27,539 to Vitaxel Corporation Thailand Co., Ltd., a company registered in Thailand, and holds
47.99% shares of it. The long-term investment is accounted using the equity method.
Long-term investment consists
of the following:
|
|
As of
March 31,
2017
|
|
|
As of
December 31,
2016
|
|
Long-term investment -cost
|
|
$
|
27,539
|
|
|
$
|
27,539
|
|
Long-term investment -share of loss in investment in an associated company
|
|
|
(25,716
|
)
|
|
|
(25,716
|
)
|
Foreign currency translation adjustment
|
|
|
(1,823
|
)
|
|
|
(1,823
|
)
|
|
|
$
|
-
|
|
|
$
|
-
|
|
6.
|
PROPERTY, PLANT AND EQUIPMENT, NET
|
Property, plant and equipment, net consist of the
following:
|
|
As of
March 31,
2017
|
|
|
As of
December 31,
2016
|
|
|
|
|
|
|
|
|
Office equipment
|
|
$
|
30,892
|
|
|
$
|
30,476
|
|
Computer equipment
|
|
|
68,415
|
|
|
|
61,516
|
|
Furniture and fittings
|
|
|
7,293
|
|
|
|
7,131
|
|
Electrical & fitting
|
|
|
342
|
|
|
|
337
|
|
Motor vehicle
|
|
|
15,524
|
|
|
|
15,315
|
|
Software and website
|
|
|
10,586
|
|
|
|
7,544
|
|
Renovations
|
|
|
99,508
|
|
|
|
98,167
|
|
|
|
|
232,560
|
|
|
|
220,486
|
|
|
|
|
|
|
|
|
|
|
Less: Accumulated depreciation
|
|
|
(31,942
|
)
|
|
|
(25,817
|
)
|
|
|
|
|
|
|
|
|
|
Balance at end of period/year
|
|
$
|
200,618
|
|
|
$
|
194,669
|
|
Depreciation expenses charged to the statements of
operations for the period ended March 31, 2017 and 2016 were $6,125 and $5,000 respectively.
7.
|
ACCRUALS AND OTHER PAYABLES
|
Accruals and other payables consist
of the following:
|
|
As of
March 31,
2017
|
|
|
As of
December 31,
2016
|
|
|
|
|
|
|
|
|
Provisions
|
|
$
|
22,622
|
|
|
$
|
21,243
|
|
Others
|
|
|
588,156
|
|
|
|
425,244
|
|
Balance at end of period/year
|
|
$
|
610,778
|
|
|
$
|
446,487
|
|
8.
|
AMOUNT DUE TO A DIRECTOR
|
|
|
As of
March 31,
2017
|
|
|
As of
December 31,
2016
|
|
Amounts due to a director
|
|
|
|
|
|
|
|
|
Dato’ Lim Hui Boon
|
|
$
|
59,617
|
|
|
$
|
-
|
|
Provision for income taxes consisted of
the following:
|
|
|
For the three months ended
|
|
|
|
|
March
31, 2017
|
|
|
|
March
31, 2016
|
|
|
|
|
|
|
|
|
|
|
Current:
|
|
|
|
|
|
|
|
|
Provision for Malaysian income tax
|
|
$
|
-
|
|
|
$
|
-
|
|
Provision for Singaporean income tax
|
|
|
|
|
|
|
|
|
Provision for U.S. income tax
|
|
|
-
|
|
|
|
-
|
|
Deferred:
|
|
|
|
|
|
|
|
|
Provision for Malaysian income tax
|
|
|
-
|
|
|
|
-
|
|
Provision for Singaporean income tax
|
|
|
-
|
|
|
|
-
|
|
Provision for U.S. income tax
|
|
|
-
|
|
|
|
-
|
|
|
|
$
|
-
|
|
|
$
|
-
|
|
Malaysia
The Company’s two main
operating subsidiaries, Vitaxel SDN BHD and Vitaxel Online Mall SDN BHD are companies incorporated in Malaysia. They recorded a
loss before income tax of $207,412 and an income $2,968 for the period ended March 31, 2017 and 2016 respectively. A reconciliation
of the provision for income taxes with amounts determined by applying the Malaysian income tax rate of 24% for the period ended
March 31, 2017 and 2016, respectively, to income before income taxes is as follows:
|
|
For the period ended
|
|
|
|
March
31, 2017
|
|
|
March
31, 2016
|
|
|
|
|
|
|
|
|
Profit (loss) before income tax
|
|
$
|
(207,412
|
)
|
|
$
|
2,968
|
|
Permanent difference
|
|
|
207,412
|
|
|
|
-
|
|
Taxable income
|
|
$
|
-
|
|
|
$
|
2,968
|
|
Malaysian income tax rate
|
|
|
24
|
%
|
|
|
24
|
%
|
Current tax expenses
|
|
$
|
-
|
|
|
$
|
712
|
|
Less: Valuation allowance
|
|
|
-
|
|
|
|
712
|
|
Income tax expenses
|
|
$
|
-
|
|
|
$
|
-
|
|
United States of America
Vitaxel Group Limited is a company
incorporated in State of Nevada and on consolidation of its subsidiaries accounts recorded a loss before income tax of $30,232
and $44,318 for the period ended March 31, 2017 and 2016 respectively. A reconciliation of the provision for income taxes with
amounts determined by applying the United States Federal income tax rate of 34% for the periods ended March 31, 2017 and 2016,
respectively, to income before income taxes is as follows:
|
|
For the year ended
|
|
|
|
March
31, 2017
|
|
|
March
31, 2016
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) before income tax
|
|
$
|
(30,232
|
)
|
|
$
|
(44,318
|
)
|
Permanent difference
|
|
|
30,232
|
|
|
|
44,318
|
|
Taxable income
|
|
$
|
-
|
|
|
$
|
-
|
|
United States income tax rate
|
|
|
34
|
%
|
|
|
34
|
%
|
Current tax expenses
|
|
$
|
-
|
|
|
$
|
|
|
Less: Valuation allowance
|
|
|
-
|
|
|
|
-
|
|
Income tax expenses
|
|
$
|
-
|
|
|
$
|
-
|
|
Singapore
Vitaxel Singapore PTE. Ltd. is
a company incorporated in Singapore and
is eligible for partial tax exemption
which effectively translates to about 8.5% tax rate
on corporate profits up to SGD300,000 and 17% above SGD300,000.
No provision for income tax is required due to the company not having any income or losses for the period ended March 31, 2017
and 2016.
No deferred tax has been provided
as there are no material temporary differences arising during the periods ended March 31, 2017 and 2016.
10.
|
AMOUNT DUE FROM AN ASSOCIATE COMPANY
|
|
|
As of
March 31,
2017
|
|
|
As of
December 31,
2016
|
|
Vitaxel Corporation Thailand Co., Ltd.
|
|
$
|
40,957
|
|
|
$
|
-
|
|
11.
|
AMOUNT DUE TO ASSOCIATED COMPANIES
|
|
|
As of
March 31,
2017
|
|
|
As of
December 31,
2016
|
|
Vitaxel Corporation Thailand Co., Ltd.
|
|
$
|
-
|
|
|
$
|
279,219
|
|
12.
|
RELATED PARTIES TRANSACTIONS
|
As of March 31, 2017 and December
31, 2016, the amount of due from a related party, Beedo SDN BHD, was $22,706 and $18,062 respectively. Beedo SDN BHD
was a subsidiary of related company Ho Wah Genting Group SDN BHD from June 25, 2015 to August 12, 2016.
As of March 31, 2017 and December
31, 2016, the amount of due from a related party, Ho Wah Genting Berhad, was $4,747 and $9,020 respectively.
As of March 31, 2017 and December
31, 2016, the amount of due from director, LIM WEE KIAT, was $1,000 and $1,482 respectively. These amounts were unsecured, interest-free
and repayable on demand.
As of March 31, 2017 and December
31, 2016, the amount due from Leong Yee Ming was $4,133 and $3,945, respectively. These amounts were unsecured, interest-free and
repayable on demand.
As of March 31, 2017 and December
31, 2016, the amount of due to a related party, Ho Wah Genting Group Sdn Bhd, was $694,140 and $18,286 respectively. The President
of the Company, Dato’ Lim Hui Boon, is also the Group President of Ho Wah Genting Sdn Bhd.
The amount due to Ho Wah Genting
Holiday Sdn Bhd was $0 as of March 31, 2017 and $8,807 as of December 31, 2016. A former director of the Company, Lim Chun Hoo,
is also a director of Ho Wah Genting Holiday Sdn Bhd. On March 31, 2017, Lim Chun Hoo resigned from the Company.
The amount due to Genting Highlands
Taxi Services SDN BHD was $16,455 and $16,234 respectively as of March 31, 2017 and December 31, 2016. A director of the Company,
Lim Wee Kiat, is also a director of Genting Highlands Taxi Services SDN BHD.
The amount due to the Company’s associated company,
Vitaxel Corp. (Thailand) Ltd., was $0 as of March 31, 2017 and $279,219 as of December 31, 2016.
The Company recognized an expense
of $59,644 pertaining for event, traveling and accommodation expenses during the three months ended March 31, 2017, which was charged
to its related company, Ho Wah Genting Holiday Sdn. Bhd.
The Company recognized an expense
of rent totalling $14,239 of which $4,746 during the three months ended March 31, 2017 was paid to its affiliate, Ho Wah Genting
Berhad and $9,493 was paid to Malaysia-Beijing Travel Services Sdn Bhd. The operating lease commitment to Ho Wah Genting Berhad
as of December 31, 2016 was $16,272 and $37,975 to Malaysia-Beijing Travel Services Sdn Bhd. The lease commitment are disclosed
in note 13 COMMITMENTS AND CONTINGENCIES below under the heading Operation Commitments.
The Company recognized an expense
of $13,504 pertaining for website maintenance expense during the three months ended March 31, 2017, which was charged by its related
company, Beedo Sdn. Bhd.
The Company recognized an income
of $1,417 pertaining for royalties during three months ended March 31, 2017 which was paid by its associated company, Vitaxel Corp.
(Thailand) Limited.
13.
|
COMMITMENTS AND CONTINGENCIES
|
Capital Commitments
The Company has no capital commitments.
Operation Commitments
The lease commitment to Ho Wah
Genting Berhad where it is known in Malaysia as “Tenancy Agreement” has a tenure of 3 years started from January 1,
2016 and expiring on December 31, 2018 and 2 years started from December 4, 2015 to December 3, 2017 to Malaysia-Beijing Travel
Services Sdn Bhd.
Year ending December 31, 2017
|
|
|
53,797
|
|
Year ending December 31, 2018
|
|
|
18,987
|
|
Total
|
|
$
|
72,784
|
|
Rental expense of the Company was $25,244 and $34,128 for the
period ended March 31, 2017 and 2016, respectively.
14.
|
EARNINGS (LOSS) PER SHARE
|
The Company has adopted ASC Topic No. 260,
“Earnings Per Share,”
(“EPS”) which requires presentation of basic and diluted EPS on the
face of the income statement, and requires a reconciliation of the numerator and denominator of the basic EPS computation to the
numerator and denominator of the diluted EPS computation. In the accompanying financial statements, basic earnings (loss) per share
is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the year.
The following table sets forth the computation
of basic and diluted earnings per share:
|
|
For the period ended
|
|
|
|
March
31, 2017
|
|
|
March
31, 2016
|
|
|
|
|
|
|
|
|
Net loss applicable to common shares
|
|
$
|
(207,412
|
)
|
|
$
|
2,968
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding (Basic)
|
|
|
5,408,754,000
|
|
|
|
4,936,470,492
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(0.00
|
)
|
|
$
|
(0.00
|
)
|
The Company has no potentially dilutive
securities, such as options or warrants, currently issued and outstanding.