XML 16 R5.htm IDEA: XBRL DOCUMENT v3.20.2
Interim Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Cash flows from operating activities:    
Net income (loss) $ 246,088 $ (300,117)
Adjustments to reconcile net income (loss) to net cash used in operating activities:    
Depreciation expenses 24,338 7,927
Amortization 53,156 18,390
Bad debt provision 0 0
Free rental expense offered by a stockholder 0 0
Deferred income tax (44,703) (24,948)
Share-based compensation 58,722 33,349
Changes in operating assets and liabilities:    
Accounts receivable, net (105,691) 945,151
Inventories (105,773) (176,269)
Advance to suppliers (3,155) 54,806
Prepaid expenses and other assets, net (125,612) (7,436)
Operating lease right-of-use asset 25,007 (138,255)
Accounts payable 21,579 94,085
Advance from customers 221,902 0
Other payables and accrued liabilities 8,417 (181,460)
Income tax payable 4,990 (5,540)
Deferred revenue (618,971) (22,736)
Operating lease liability (8,406) 8,461
Amount due from a related party 0 0
Net cash (used in) provided by operating activities (348,112) 305,408
Cash flows from investing activities:    
Cash paid for purchase of property 0 (174,142)
Cash paid for intangible assets (1,851) (551,710)
Net cash used in investing activities (1,851) (725,852)
Cash flows from financing activities:    
Bank borrowing (15,225) 15,801
Proceeds from related parties 689,441 423,465
Repayment to related parties (22,766) (23,249)
Proceeds from issuance of common stock 828 250
Repayment for convertible note 0 (3,465)
Net cash provided by financing activities 652,278 412,802
Effect of exchange rate changes on cash and cash equivalents 13,927 3,002
Net increase (decrease) in cash and cash equivalents 316,242 (4,640)
Cash and cash equivalents at beginning of year 28,539 7,207
Cash and cash equivalents at end of year 344,781 2,567
Supplemental disclosures of cash flow information    
Cash paid for interest expenses 0 7,931
Cash paid for income taxes $ 0 $ 5,541