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Condensed Financial Information of the Parent Company (Unaudited)
 12 Months Ended
Dec. 31, 2022
Condensed Financial Information Disclosure [Abstract]  
Condensed Financial Information of the Parent Company (Unaudited)

14. Condensed Financial Information of the Parent Company (Unaudited)

 

The Company performed a test of its restricted net assets of the consolidated subsidiaries in accordance with the Securities and Exchange Commission’s Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that it was applicable for the Company to disclose the financial information of the parent company.

 

The subsidiaries did not pay any dividends to the parent Company for the periods presented. For the purpose of presenting parent-only financial information, the Company records its investment in its subsidiaries under the equity method of accounting. Such investment is presented on the separate condensed balance sheets of the Company as “Investment in subsidiaries” and the income of the subsidiaries is presented as “share of income of subsidiaries”. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP are not required.

 

CBL International Limited became the parent company of the Company as a result of the execution of the Sale and Purchase Agreement on August 18, 2022. CBL International Limited is a holding company with no operations, did not have any significant capital and other commitments, and did not have any long-term obligations, or guarantees as of December 31, 2022. CBL International Limited did not have any business activities during the year ended December 31, 2022.

 

The following is the unaudited parent company’s balance sheets:

 

   2022   2021 
   As of December 31, 
   2022   2021 
ASSETS        
Current Assets          
Cash  $64,143   $- 
Total current assets   64,143    - 
           
Investment in subsidiaries   12,129,653    8,427,185 
Deferred offering costs   1,128,453    - 
TOTAL ASSETS  $13,322,249   $8,427,185 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
Liabilities          
Current liabilities          
Other payable   10,064    - 
Due to related party  $1,200,000   $- 
LIABILITIES   1,210,064    - 
           
SHAREHOLDERS’ EQUITY          
Ordinary shares, $0.0001 par value, 500,000,000 shares authorized, 21,250,000 shares issued and outstanding as at December 31, 2022 and 2021   2,125    2,125 
Additional paid-up capital   488,198    488,198 
Retained earnings   11,621,862    7,936,862 
TOTAL SHAREHOLDERS’ EQUITY   12,112,185    8,427,185 
           
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY  $13,322,249   $8,427,185 

 

 

The following is the unaudited condensed parent company’s statements of income and comprehensive income:

 

   2022   2021 
EQUITY INCOME OF SUBSIDIARIES  $3,702,468   $3,568,968 
           
GENERAL AND ADMINISTRATION EXPENSE   (17,468)   - 
           
NET INCOME  $3,685,000   $3,568,968 
           
TOTAL COMPREHENSIVE INCOME  $3,685,000   $3,568,968 

 

The following is the unaudited condensed parent company’s statements of cash flows:

 

   2022   2021 
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net income  $3,685,000   $3,568,968 
Adjustments to reconcile net income to cash provided by operating activities:          
Equity income of subsidiaries   (3,702,468)   (3,568,968)
Changes in operating assets and liabilities:          
           
Other payable   10,064    - 
Repayment to related parties   1,200,000    - 
Net cash provided by operating activities   1,192,596    - 
CASH FLOWS FROM FINANCING ACTIVITIES          
Deferred offering costs   (1,128,453)   - 
Net cash used in financing activities   (1,128,453)   - 
           
Increase in CASH   64,143    - 
           
CASH at the beginning of the year   -    - 
           
CASH at the end of the year  $64,143   $-