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Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

NOTE 2 - REVENUE FROM CONTRACTS WITH CUSTOMERS

The Company’s revenue consists of revenue from providing business consulting and corporate advisory services (“service revenue”), revenue from the sale of real estate properties, and revenue from the rental of real estate properties.

Revenue from services

For certain service contracts, we assist or provide advisory to clients in capital market listings (“Listing services”), our services provided to clients are considered as one performance obligation. Revenue and expenses are deferred until the performance obligation is complete and collectability of the consideration is probable. For service contracts where the performance obligation is not completed, deferred costs of revenue are recorded as incurred and deferred revenue is recorded for any payments received on such yet to be completed performance obligations. On an ongoing basis, management monitors these contracts for profitability and when needed may record a liability if a determination is made that costs will exceed revenue.

For other services such as company secretarial, accounting, financial analysis, insurance brokerage services, and other related services (“Non-listing services”), the Company’s performance obligations are satisfied, and the related revenue is recognized, as services are rendered. For contracts in which we act as an agent, the Company reports revenue net of expenses paid.

The Company offers no discounts, rebates, rights of return, or other allowances to clients which would result in the establishment of reserves against service revenue. Additionally, to date, the Company has not incurred incremental costs in obtaining a client contract.

Revenue from the sale of real estate properties

The Company follows the guidance of ASC 610-20, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (“ASC 610-20”), which applies to sales or transfers to noncustomers of nonfinancial assets. Generally, the Company’s sales of its real estate properties are considered a sale of a nonfinancial asset. Under ASC 610-20, the Company derecognizes the asset and recognizes a gain or loss on the sale of the real estate when control of the underlying asset transfers to the buyer. During the years ended December 31, 2019 and 2018, the Company recognized revenue from the sale of one and eight units, respectively, of commercial property held for sale.

Revenue from the rental of real estate properties

Rental revenue represents lease rental income from the Company’s tenants. The tenants pay monthly in accordance with lease agreements and the Company recognizes the income ratably over the lease term as this is the most representative of the pattern in which the benefit is expected to be derived from the underlying asset.

Cost of revenues

Cost of service revenue primarily consists of employee compensation and related payroll benefits, company formation costs, and other professional fees directly attributable to the services rendered.

Cost of real estate properties sold primarily consists of the purchase price of property, legal fees, improvement costs to the building structure, and other acquisition costs. Selling and advertising costs are expensed as incurred.

Cost of rental revenue primarily includes costs associated with repairs and maintenance, property insurance, depreciation and other related administrative costs. Property management fees and utility expenses are paid directly by tenants.

The following tables provide information about disaggregated revenue based on revenue by service lines and revenue by geographic area:

		Year ended December 31,
		2019				2018
Revenue by service lines:
Corporate advisory – Non-Listing services		$	2,169,553			$	2,680,748
Corporate advisory – Listing services			2,032,048				-
Sales of real estate held for sale			189,522				1,368,220
Rental of real estate properties			93,699				164,392
Total revenue		$	4,484,822			$	4,213,360

		Year ended December 31,
		2019				2018
Revenue by geographic area:
Hong Kong		$	3,363,067			$	3,271,745
Malaysia			514,165				661,008
China			607,590				280,607
Total revenue		$	4,484,822			$	4,213,360

Our contract balances include deferred costs of revenue and deferred revenue.

Deferred Costs of Revenue

For service contracts where the performance obligation is not completed, deferred costs of revenue are recorded for any costs incurred in advance of the performance obligation.

Deferred Revenue

For service contracts where the performance obligation is not completed, deferred revenue is recorded for any payments received in advance of the performance obligation. Changes in deferred revenue were as follows:

Deferred revenue and deferred costs of revenue at December 31, 2019 and 2018 are classified as current assets or current liabilities and totaled:

		As of December 31, 2019				As of December 31, 2018
Deferred revenue		$	1,202,153			$	1,816,358
Deferred costs of revenue		$	73,821			$	418,668

Changes in deferred revenue were as follows at December 31, 2019 and 2018:

		Year Ended December 31, 2019				Year Ended December 31, 2018
Deferred revenue, beginning of period		$	1,816,358			$	345,000
New contract liabilities			1,417,843				1,471,358
Performance obligations satisfied			(2,032,048	)			-
Deferred revenue, end of period		$	1,202,153			$	1,816,358