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Business Combination

12 Months Ended

Dec. 31, 2021

Business Combinations [Abstract]

BUSINESS COMBINATION

NOTE 9 – BUSINESS COMBINATION

Pursuant to the Securities Purchase Agreement dated April 25, 2019, the Company agreed to purchase from Xiangdong Wen and Zhen Fan the remaining 75.1% of outstanding securities of MMBD Trading Ltd. Prior to the consummation of this acquisition, (i) the Company held 24.9% of outstanding securities of MMBD Trading, and (ii) each Xiangdong Wen (the Chairman of the board and chief executive officer of the Company, a 14.9% shareholder of the Company) and Zhen Fan (the Company’s former chief executive officer, a 13% shareholder of the Company) beneficially owned 37.55% of outstanding securities of MMBD. The Company has agreed to pay the aggregate purchase price of $185,000 for such securities to be equally divided between the two shareholders of MMBD Trading, also see NOTE 12. The acquisition closed on October 18, 2019. Following and as a result of this acquisition, MMBD has become a wholly-owned subsidiary of the Company.

The Company remeasured the previously held equity interests in MMBD Trading at its acquisition date and determined the fair value to be $61,338, and recognized a remeasurement gain of $42,415, which is recorded as part of the “other expense” in the Company’s consolidated statement of operations and comprehensive loss for the year ended December 31, 2019. The financial results of MMBD Trading have been included in the Company’s consolidated financial statements from October 18, 2019.

The following table summarizes the fair value of the assets acquired and liabilities assumed as of the date of acquisition and total purchase price:

		Amount
Cash & cash equivalents		$	75,506
Accounts receivable			75,629
Prepaid expenses and other current assets			770
Security deposit, current			72,214
Accounts payable			(104,821	)
Other payables			(677	)
Net assets acquired		$	118,621
Cash paid for acquisition			185,000
Fair value of existing equity interest in MMBD Trading			61,338
Total purchase price		$	246,338
Goodwill		$	127,717

Goodwill represents the excess of the purchase consideration over the fair value of the identifiable assets acquired and liabilities assumed from the acquired entity as a result of the Company’s acquisitions of interests in its subsidiaries. The Company recognized $127,717 impairment loss on goodwill during the year ended December 31, 2019, which is recorded as part of the “other expense” in the Company’s consolidated statement of operations and comprehensive loss.

The Company did not have business combination during the years ended December 31, 2021 and 2020.

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- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-URI https://asc.fasb.org/topic&trid=2303972

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 5
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=128092470&loc=d3e4946-128472

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- References

No definition available.

+ Details

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