2021 Q4 Form 10-K Financial Statement

#000121465922015300 Filed on December 23, 2022

View on sec.gov

Income Statement

Concept 2021 Q4 2021 2020 Q4
Revenue $0.00 $0.00 $0.00
YoY Change
Cost Of Revenue $0.00 $0.00 $0.00
YoY Change
Gross Profit $0.00 $0.00 $0.00
YoY Change
Gross Profit Margin
Selling, General & Admin $486.6K $696.5K $71.23K
YoY Change 583.18% 138.12%
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $15.00K $15.15K $20.00
YoY Change 74900.0% 3192.39% -90.91%
% of Gross Profit
Operating Expenses $486.6K $696.5K $71.24K
YoY Change 583.1% 138.13%
Operating Profit -$486.6K -$696.5K -$71.24K
YoY Change 583.1% 138.13%
Interest Expense -$130.0K $519.9K -$130.0K
YoY Change 0.0% -197.61%
% of Operating Profit
Other Income/Expense, Net $708.00
YoY Change -99.99%
Pretax Income -$615.9K -$1.216M $5.099M
YoY Change -112.08% -124.97%
Income Tax $0.00
% Of Pretax Income
Net Earnings -$615.9K -$1.216M $5.099M
YoY Change -112.08% -124.97%
Net Earnings / Revenue
Basic Earnings Per Share
Diluted Earnings Per Share -$34.66K -$110.3K $581.1K
COMMON SHARES
Basic Shares Outstanding 20.54M shares 11.02M shares
Diluted Shares Outstanding 11.02M shares

Balance Sheet

Concept 2021 Q4 2021 2020 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $21.68K $21.68K $5.970K
YoY Change 263.15% 263.15% 8.35%
Cash & Equivalents $0.00 $5.967K
Short-Term Investments
Other Short-Term Assets $19.83K $19.83K $100.0K
YoY Change -80.17% -80.17% 0.0%
Inventory
Prepaid Expenses $19.83K $100.0K
Receivables
Other Receivables
Total Short-Term Assets $41.51K $41.51K $106.0K
YoY Change -60.83% -60.83% 0.43%
LONG-TERM ASSETS
Property, Plant & Equipment $2.631K $78.15K $599.00
YoY Change 339.23% 12925.0% 36.14%
Goodwill
YoY Change
Intangibles $0.00
YoY Change
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets $78.15K $78.15K $599.00
YoY Change 12947.25% 12925.0% 36.14%
TOTAL ASSETS
Total Short-Term Assets $41.51K $41.51K $106.0K
Total Long-Term Assets $78.15K $78.15K $599.00
Total Assets $119.7K $119.7K $106.6K
YoY Change 12.29% 12.28% 0.58%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.597M $2.597M $4.262M
YoY Change -39.06% -39.06% -11.16%
Accrued Expenses $44.96K $44.96K
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $2.973M $2.973M $2.973M
YoY Change 0.0% 0.0% 0.73%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $5.615M $5.615M $7.235M
YoY Change -22.38% -22.38% -43.25%
LONG-TERM LIABILITIES
Long-Term Debt $645.0K $645.0K $645.0K
YoY Change 0.0% 0.0%
Other Long-Term Liabilities $30.56K $30.56K
YoY Change
Total Long-Term Liabilities $675.6K $675.6K $645.0K
YoY Change 4.74% 4.74%
TOTAL LIABILITIES
Total Short-Term Liabilities $5.615M $5.615M $7.235M
Total Long-Term Liabilities $675.6K $675.6K $645.0K
Total Liabilities $6.291M $6.291M $7.880M
YoY Change -20.16% -20.16% -38.19%
SHAREHOLDERS EQUITY
Retained Earnings -$138.5M -$133.7M
YoY Change 3.56%
Common Stock $130.6M $124.2M
YoY Change 5.12%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$6.171M -$6.171M -$7.773M
YoY Change
Total Liabilities & Shareholders Equity $119.7K $119.7K $106.6K
YoY Change 12.29% 12.28% 0.58%

Cashflow Statement

Concept 2021 Q4 2021 2020 Q4
OPERATING ACTIVITIES
Net Income -$615.9K -$1.216M $5.099M
YoY Change -112.08% -124.97%
Depreciation, Depletion And Amortization $15.00K $15.15K $20.00
YoY Change 74900.0% 3192.39% -90.91%
Cash From Operating Activities -$120.8K -$441.1K $620.00
YoY Change -19585.48% -33.73% -103.21%
INVESTING ACTIVITIES
Capital Expenditures -$2.420K $2.422K -$620.00
YoY Change 290.32% -490.65%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$2.420K -$2.422K -$620.00
YoY Change 290.32% 290.65%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 138.6K $459.1K 0.000
YoY Change -31.12% -100.0%
NET CHANGE
Cash From Operating Activities -120.8K -$441.1K 620.0
Cash From Investing Activities -2.420K -$2.422K -620.0
Cash From Financing Activities 138.6K $459.1K 0.000
Net Change In Cash 15.34K $15.71K -0.00000000004604
YoY Change -33316559743375600.0% 11121.43% -100.0%
FREE CASH FLOW
Cash From Operating Activities -$120.8K -$441.1K $620.00
Capital Expenditures -$2.420K $2.422K -$620.00
Free Cash Flow -$118.4K -$443.6K $1.240K
YoY Change -9647.58% -33.31%

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LocalPhoneNumber
9625-0097
CY2021 dei Security12b Title
Security12bTitle
Common Stock
CY2021 dei Trading Symbol
TradingSymbol
NWCN
CY2021 dei Entity Well Known Seasoned Issuer
EntityWellKnownSeasonedIssuer
No
CY2021 dei Entity Voluntary Filers
EntityVoluntaryFilers
No
CY2021 dei Entity Current Reporting Status
EntityCurrentReportingStatus
No
CY2021 dei Entity Interactive Data Current
EntityInteractiveDataCurrent
Yes
CY2021 dei Entity Filer Category
EntityFilerCategory
Non-accelerated Filer
CY2021 dei Entity Small Business
EntitySmallBusiness
true
CY2021 dei Entity Emerging Growth Company
EntityEmergingGrowthCompany
false
CY2021 dei Entity Shell Company
EntityShellCompany
false
CY2021Q2 dei Entity Public Float
EntityPublicFloat
2623000 usd
CY2022Q4 dei Entity Common Stock Shares Outstanding
EntityCommonStockSharesOutstanding
20749018 shares
CY2021 dei Auditor Firm
AuditorFirmId
6778
CY2021 dei Auditor Name
AuditorName
Gries & Associates, LLC
CY2021 dei Auditor Location
AuditorLocation
Denver, Colorado
CY2021Q4 us-gaap Cash
Cash
21677 usd
CY2020Q4 us-gaap Cash
Cash
5967 usd
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PrepaidExpenseAndOtherAssetsCurrent
19828 usd
CY2020Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
100000 usd
CY2021Q4 us-gaap Assets Current
AssetsCurrent
41505 usd
CY2020Q4 us-gaap Assets Current
AssetsCurrent
105967 usd
CY2021Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
2632 usd
CY2020Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
599 usd
CY2021Q4 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
75521 usd
CY2021Q4 us-gaap Assets
Assets
119658 usd
CY2020Q4 us-gaap Assets
Assets
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CY2021Q4 us-gaap Accounts Payable And Accrued Liabilities Current
AccountsPayableAndAccruedLiabilitiesCurrent
2597181 usd
CY2020Q4 us-gaap Accounts Payable And Accrued Liabilities Current
AccountsPayableAndAccruedLiabilitiesCurrent
4261650 usd
CY2021Q4 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
44960 usd
CY2021Q4 us-gaap Short Term Borrowings
ShortTermBorrowings
2973211 usd
CY2020Q4 us-gaap Short Term Borrowings
ShortTermBorrowings
2973211 usd
CY2021Q4 us-gaap Liabilities Current
LiabilitiesCurrent
5615352 usd
CY2020Q4 us-gaap Liabilities Current
LiabilitiesCurrent
7234861 usd
CY2021Q4 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
30561 usd
CY2021Q4 us-gaap Convertible Long Term Notes Payable
ConvertibleLongTermNotesPayable
645000 usd
CY2020Q4 us-gaap Convertible Long Term Notes Payable
ConvertibleLongTermNotesPayable
645000 usd
CY2021Q4 us-gaap Liabilities Noncurrent
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675561 usd
CY2020Q4 us-gaap Liabilities Noncurrent
LiabilitiesNoncurrent
645000 usd
CY2021Q4 us-gaap Liabilities
Liabilities
6290913 usd
CY2020Q4 us-gaap Liabilities
Liabilities
7879861 usd
CY2021Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
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0.001
CY2020Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
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0.001
CY2021Q4 us-gaap Preferred Stock Shares Authorized
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5000000 shares
CY2020Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
5000000 shares
CY2021Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2021Q4 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2020Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2020Q4 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2021Q4 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.001
CY2020Q4 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.001
CY2021Q4 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
100000000000 shares
CY2020Q4 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
100000000000 shares
CY2021Q4 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
20749018 shares
CY2021Q4 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
20749018 shares
CY2020Q4 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
8774263 shares
CY2020Q4 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
8774263 shares
CY2021Q4 us-gaap Common Stock Value
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20749 usd
CY2020Q4 us-gaap Common Stock Value
CommonStockValue
8773 usd
CY2021Q4 us-gaap Additional Paid In Capital Common Stock
AdditionalPaidInCapitalCommonStock
130559370 usd
CY2020Q4 us-gaap Additional Paid In Capital Common Stock
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124209441 usd
CY2021Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-138455814 usd
CY2020Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-133695748 usd
CY2021Q4 us-gaap Accumulated Other Comprehensive Income Loss Net Of Tax
AccumulatedOtherComprehensiveIncomeLossNetOfTax
1704440 usd
CY2020Q4 us-gaap Accumulated Other Comprehensive Income Loss Net Of Tax
AccumulatedOtherComprehensiveIncomeLossNetOfTax
1704239 usd
CY2021Q4 us-gaap Stockholders Equity
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CY2020Q4 us-gaap Stockholders Equity
StockholdersEquity
-7773295 usd
CY2021Q4 us-gaap Liabilities And Stockholders Equity
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119658 usd
CY2020Q4 us-gaap Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
106566 usd
CY2021 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
479018 usd
CY2020 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
292490 usd
CY2021 us-gaap Share Based Compensation
ShareBasedCompensation
217475 usd
CY2021 us-gaap Operating Expenses
OperatingExpenses
696493 usd
CY2020 us-gaap Net Cash Provided By Used In Operating Activities
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-665693 usd
CY2021 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
2422 usd
CY2020 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
617 usd
CY2021 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-2422 usd
CY2020 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-617 usd
CY2021 us-gaap Proceeds From Issuance Of Private Placement
ProceedsFromIssuanceOfPrivatePlacement
459077 usd
CY2020 us-gaap Proceeds From Convertible Debt
ProceedsFromConvertibleDebt
645000 usd
CY2020 us-gaap Proceeds From Short Term Debt
ProceedsFromShortTermDebt
21446 usd
CY2021 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
459077 usd
CY2020 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
666446 usd
CY2021 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
201 usd
CY2020 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
321 usd
CY2021 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
15710 usd
CY2020 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
457 usd
CY2020Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
5967 usd
CY2019Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
5510 usd
CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
21677 usd
CY2020Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
5967 usd
CY2020 us-gaap Interest Paid Net
InterestPaidNet
615000 usd
CY2021 nwcn Exercise Of Conversion Option
ExerciseOfConversionOption
2000000 usd
CY2021 nwcn Settlement Of Interest Payable By Private Placement
SettlementOfInterestPayableByPrivatePlacement
140923 usd
CY2021 us-gaap Dividends
Dividends
3544430 usd
CY2021 us-gaap Nature Of Operations
NatureOfOperations
<p id="xdx_805_eus-gaap--NatureOfOperations_z9yIfHD7Kzqb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 0"/><td style="width: 76.5pt"><b>NOTE 1</b></td><td style="text-align: justify"><b><span id="xdx_827_zJetIi8chZ8f">ORGANIZATION AND PRINCIPAL ACTIVITIES</span></b></td></tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Network CN Inc. was originally incorporated on September 10, 1993 in Delaware with headquarters in the Hong Kong Special Administrative Region of the People’s Republic of China (“PRC” or “China”).  Since August 2006, Network CN Inc., its subsidiaries and variable interest entities for which it is the primary beneficiary (collectively “NCN” or the “Company” “we”, “our” or “us”) has been principally engaged in the provision of out-of-home advertising in China through the operation of a network of roadside light emitting diode (“LED”) digital video panels, mega-size LED digital video billboards and light boxes in major cities.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Details of the Company’s principal subsidiaries and variable interest entities as of December 31, 2021 are described in Note 3 – Subsidiaries and Variable Interest Entities.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><b>COVID-19 Pandemic</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">In December 2019, an outbreak of COVID-19 was identified in China and was subsequently recognized as a global pandemic by the World Health Organization (“WHO”) on March 11, 2020. Since that time, COVID-19 has spread around the world and throughout the United States, including in the regions and countries in which we operate. Federal, state and local governments in the U.S and around the world have imposed restrictions on travel and business operations and are advising or requiring individuals to limit or eliminate time outside of their homes. Temporary closures of businesses have also been ordered in certain jurisdictions, and other businesses have temporarily closed voluntarily. These actions expanded significantly in March and April of 2020 throughout the U.S. Consequently, the COVID-19 outbreak has severely restricted the level of economic activity in the U.S. and around the world.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The outbreak has resulted in authorities implementing numerous measures to try to contain the virus, such as quarantines and shelter in place orders. These measures may remain in place for a significant period of time and adversely affect our business, operations and financial condition as well as the business, operations and financial conditions of our business partners. The spread of the virus has also caused us to modify our business practices (including employee work locations and cancellation of physical participation in meetings) in ways that may be detrimental to our business (including working remotely and its attendant cybersecurity risks). We may take further actions as may be required by government authorities or that we determine are in the best interests of our employees. There is no certainty that such measures will be sufficient to mitigate the risks posed by the virus or otherwise be satisfactory to government authorities.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">There has been no material adverse impact on the Company’s 2021 results of operations to date. The effect of COVID-19 and related events, those not yet known or knowable, could have a negative effect on the stock price, business prospects, financial condition, and results of operations of the Company, including as a result of quarantines, market volatility, market downturns and business closures.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">For the reasons discussed above, the Company cannot reasonably estimate with any degree of certainty the future impact COVID-19 may have on the Company’s results of operations, financial position, and liquidity. Notwithstanding any actions by national, state, and local governments to mitigate the impact of COVID-19 or by the Company to address the adverse impacts of COVID-19, there can be no assurance that any of the foregoing activities will be successful in mitigating or preventing significant adverse effects on the Company.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><b>Recent development</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><b>Issuance of Convertible Promissory Note</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On January 18, 2022, the Company entered into a Subscription Agreement under which the Subscriber agreed to purchase the 1% Senior Unsecured Convertible Note Agreement from the Company for an agreement purchase price of two million five hundred thousand US Dollars ($<span id="xdx_902_ecustom--AgreementPurchasePrice_iI_pp0p0_c20220118__us-gaap--TypeOfArrangementAxis__custom--SubscriptionAgreementMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zcaj8Fr9Nj8h" title="Agreement purchase price">2,500,000</span>). On the same date, the Company signed the with 1% Senior Unsecured Convertible Note Agreement under which the Company may sell and issue to the Subscriber up to an aggregate maximum amount of $<span id="xdx_903_eus-gaap--DebtInstrumentFaceAmount_iI_pp0p0_c20220118__us-gaap--TypeOfArrangementAxis__custom--SubscriptionAgreementMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zCHVVmdwXUb7" title="Principal amount">2,500,000</span> in principal amount of Convertible Notes prior to January 19, 2027. The Convertible Promissory Notes issued to the Investor are convertible at the holder’s option into shares of Company common stock at $<span id="xdx_90E_eus-gaap--SharesIssuedPricePerShare_iI_c20220118__us-gaap--TypeOfArrangementAxis__custom--SubscriptionAgreementMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zR59cnTrM1na" title="Shares issued price per share">1.25</span> per share.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><b>Exercise of conversion option</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="background-color: white">On October 28, 2021, Keywin Holdings Limited (“Keywin”) exercised its option to purchase an aggregate of <span id="xdx_90B_ecustom--AggregateSharesPurchase_c20211001__20211028__dei--LegalEntityAxis__custom--KeywinHoldingsLimitedMember_zpqcT3KutY92" title="Aggregate shares purchase">11,764,756</span> shares of the Company’ common stock for an aggregate purchase price of $<span id="xdx_90D_ecustom--AggregateSharesPurchasePrice_pp0p0_c20211001__20211028__dei--LegalEntityAxis__custom--KeywinHoldingsLimitedMember_zFUMSXRKXC16" title="Aggregate shares purchase price">2,000,000</span> </span>which for setting off against the Company’s obligation to repay part of the short term loan interest payable, there was no cash proceeds from the exercise of Keywin option.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><b>Private Placement</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="background-color: white">On May 3, 2021, the Company entered into Common Stock Agreement with the foreign investor (the "New investor") that the Company will sell an aggregate of <span id="xdx_902_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20210501__20210503__us-gaap--TypeOfArrangementAxis__custom--CommonStockPurchaseAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--InvestorMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember_zxAyH1bSihce" title="Number of common stock sold">200,000</span> shares of the Company's common stock to the New investor. Pursuant to the terms of a Common Stock Agreement between the Company and the New investor, the purchase price paid by the New investor for the shares were $3 per share for an aggregate sum of six hundred thousand U.S. dollars. The Company received $<span id="xdx_908_ecustom--ProceedsFromInvestor_c20210501__20210503_pp0p0" title="Proceeds from investor">459,077</span> cash proceeds from the investor and $<span id="xdx_908_ecustom--ShortTermLoansInterestPayable_c20210501__20210503_pp0p0" title="Short term loans interest payable">140,923</span> was settled for the interest payable of short-term loans. </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><b>Increase of authorized capital</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On April 28, 2020, the Board of Directors and Majority of stockholders of the Company approved to increase the total number of authorized shares of Common Stock from <span id="xdx_907_eus-gaap--CommonStockSharesAuthorized_iI_c20200428_zZ6CfEMEtDa2" title="Common stock, authorized">26,666,667</span> to <span id="xdx_905_eus-gaap--CommonStockSharesAuthorized_iI_c20211231_zU7dUMzYdJJk" title="Common stock, authorized">100,000,000,000</span>. On October 11, 2021, we filed a Certificate of Amendment to our Certificate of Incorporation with the Delaware Secretary of State to increase our authorized shares of common stock from 26,666,667 to 100,000,000,000 and the increase had approved by Delaware secretary of state on April 5, 2022</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><b>Identification of New projects</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On January 14, 2020, the Company entered into a Letter of Intent with Earthasia Worldwide Holdings Limited (“EWHL”) that the Company will acquire <span id="xdx_907_eus-gaap--BusinessAcquisitionPercentageOfVotingInterestsAcquired_iI_dp_c20200114__us-gaap--BusinessAcquisitionAxis__custom--EarthasiaWorldwideHoldingsLimitedMember_z3OftbYauFU6" title="Issued and outstanding stock owned (Percentage)">100</span>% of the EWHL’s issued and outstanding stock owned by the shareholders of the EWHL and the EWHL will become a wholly owned subsidiary of the Company.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On July 23, 2020, the Company entered into Share Exchange Agreement with Ease Global Limited (“Ease Global”), the shareholder of Trade More Global Limited (‘Trade More”) that the Company will purchase, <span id="xdx_907_eus-gaap--BusinessCombinationCostOfAcquiredEntityEquityInterestsIssuedAndIssuableFairValueMethod_c20200722__20200723__us-gaap--TypeOfArrangementAxis__custom--ShareExchangeAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--TradeMoreGlobalLimitedMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--EaseGlobalLimitedMember" title="Equity interests issued and issuable">One Thousand and One Hundred (1,100) currently issued shares of common stock of Trade More from Ease Global and in exchange for Forty-nine Million (49,000,000) shares of newly-issued shares of common stock of the Company.</span> The closing of the Exchange shall occur on other date as agreed by the parties of the Share Exchange Agreement. <span id="xdx_909_eus-gaap--BusinessAcquisitionEquityInterestIssuedOrIssuableDescription_c20200722__20200723__us-gaap--TypeOfArrangementAxis__custom--ShareExchangeAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--TradeMoreGlobalLimitedMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--EaseGlobalLimitedMember" title="Equity interest issued, description">Upon completion of the Exchange, 78% of issued shares of common stock of the Company shall be held by the Ease Global while all of the shares of capital stock of Trade More shall be held by the Company.</span> EWHL is a wholly owned subsidiary of Trade More.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The closing of Exchange was not completed on September 2, 2020 which was due to the progress of audit. Since Ease Global cannot fulfill the revenue target and complete the audit, the Company considered the Share Exchange Agreement was lapsed.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Going Concern</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has net cash used in operating activities of $<span id="xdx_90B_eus-gaap--NetCashProvidedByUsedInOperatingActivities_iN_pp0p0_di_c20210101__20211231_z9ZXDHoC49S4" title="Net cash used in operating activities">441,146</span> and $<span id="xdx_90B_eus-gaap--NetCashProvidedByUsedInOperatingActivities_iN_pp0p0_di_c20200101__20201231_zTnhWMfNad7d" title="Net cash used in operating activities">665,693</span> for the years ended December 31, 2021 and 2020 respectively. As of December 31, 2021 and 2020, the Company has stockholders’ deficit of $<span id="xdx_903_eus-gaap--StockholdersEquity_iNI_pp0p0_di_c20211231_zQsbkqBNIKZf" title="Stockholders' deficits">6,171,255</span> and $<span id="xdx_906_eus-gaap--StockholdersEquity_iNI_pp0p0_di_c20201231_zkxBF3SLL0kl" title="Stockholders' deficits">7,773,295</span>, respectively. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s plans regarding those concerns are addressed in the following paragraph. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In response to current financial conditions, the Company has actively explored new prominent media projects in order to provide a wider range of media and advertising services and improve our financial performance. If the project can start to operate, the Company expects that the project will improve the Company’s future financial performance. The Company expects that the new project can generate positive cashflow.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The existing cash and cash equivalents together with highly liquid current assets are insufficient to fund the Company’s operations for the next twelve months. The Company will need to rely upon some combination of cash generated from the Company’s operations, or proceeds from the issuance of the Company’s equity and debt securities as well as the exercise of the conversion option by the Company’s note holders to convert the notes to the Company’s common stock, in order to maintain the Company’s operations. Based on the Company’s best estimates, the Company believes that there are sufficient financial resources to meet the cash requirements for the coming twelve months and the consolidated financial statements have been prepared on a going concern basis. However, there can be no assurance the Company will be able to continue as a going concern. These uncertainties may result in adverse effects on continuation of the Company as a going concern. The accompany consolidated financial statements do not reflect any adjustments that might result from the outcome of these uncertainties.</p>
CY2021Q2 nwcn Proceeds From Investor
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CY2021Q2 nwcn Short Term Loans Interest Payable
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CY2020Q2 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
26666667 shares
CY2021Q4 us-gaap Common Stock Shares Authorized
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CY2021 us-gaap Net Cash Provided By Used In Operating Activities
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CY2020 us-gaap Net Cash Provided By Used In Operating Activities
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CY2021Q4 us-gaap Stockholders Equity
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CY2020Q4 us-gaap Stockholders Equity
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CY2020 us-gaap Operating Expenses
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CY2021 us-gaap Operating Income Loss
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CY2020 us-gaap Operating Income Loss
OperatingIncomeLoss
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CY2021 us-gaap Gains Losses On Extinguishment Of Debt
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CY2020 us-gaap Gains Losses On Extinguishment Of Debt
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5299726 usd
CY2021 nwcn Gain From Writeoff Of Longaged Payables
GainFromWriteoffOfLongagedPayables
708 usd
CY2020 nwcn Gain From Writeoff Of Longaged Payables
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CY2020 us-gaap Interest And Other Income
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CY2021 us-gaap Nonoperating Income Expense
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CY2020 us-gaap Nonoperating Income Expense
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CY2021 us-gaap Interest Expense
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CY2020 us-gaap Interest Expense
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CY2021 us-gaap Interest And Debt Expense
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CY2020 us-gaap Interest And Debt Expense
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CY2021 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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CY2020 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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4869156 usd
CY2021 us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
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CY2020 us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
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4869156 usd
CY2021 us-gaap Net Income Loss
NetIncomeLoss
-1215636 usd
CY2020 us-gaap Net Income Loss
NetIncomeLoss
4869156 usd
CY2021 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
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201 usd
CY2020 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent
321 usd
CY2021 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
201 usd
CY2020 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
321 usd
CY2021 us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
-1215435 usd
CY2020 us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
4869477 usd
CY2021 nwcn Net Loss Profit Per Common Share Basic And Diluted
NetLossProfitPerCommonShareBasicAndDiluted
-0.14
CY2020 nwcn Net Loss Profit Per Common Share Basic And Diluted
NetLossProfitPerCommonShareBasicAndDiluted
0.55
CY2021 nwcn Weighted Average Number Of Shares Outstanding Basic And Diluted
WeightedAverageNumberOfSharesOutstandingBasicAndDiluted
11023767 shares
CY2020 nwcn Weighted Average Number Of Shares Outstanding Basic And Diluted
WeightedAverageNumberOfSharesOutstandingBasicAndDiluted
8774263 shares
CY2019Q4 us-gaap Stockholders Equity
StockholdersEquity
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CY2020 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent
321 usd
CY2020 us-gaap Profit Loss
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CY2020Q4 us-gaap Stockholders Equity
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CY2021 nwcn Shares Issued For Stock Granted To Consultant For Services
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CY2021 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
187474 usd
CY2021 nwcn Shares Issued For Share Option Conversion
SharesIssuedForShareOptionConversion
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CY2021 us-gaap Stock Issued During Period Value New Issues
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CY2021 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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202 usd
CY2021 us-gaap Profit Loss
ProfitLoss
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CY2021Q4 us-gaap Stockholders Equity
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CY2021 us-gaap Net Income Loss
NetIncomeLoss
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CY2020 us-gaap Net Income Loss
NetIncomeLoss
4869156 usd
CY2021 us-gaap Depreciation Depletion And Amortization
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15145 usd
CY2020 us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
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CY2021 us-gaap Use Of Estimates
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<p id="xdx_84F_eus-gaap--UseOfEstimates_zHsEe2XE3Ob4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>(C) <span id="xdx_866_z7AM4kmIl18e">Use of Estimates</span></i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company's consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expense during the reporting period. Estimates are used when accounting for certain items such as accounting for income tax valuation allowances. Estimates are based on historical experience, where applicable, and assumptions that management believes are reasonable under the circumstances. Due to the inherent uncertainty involved with estimates, actual results may differ.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
CY2021Q4 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
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CY2020Q4 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
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CY2021 us-gaap Impairment Of Long Lived Assets Held For Use
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CY2020 us-gaap Impairment Of Long Lived Assets Held For Use
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CY2020 us-gaap Gains Losses On Extinguishment Of Debt
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5299726 usd
CY2021 nwcn Gain From Write Off Fee Payable
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708 usd
CY2020 nwcn Gain From Write Off Fee Payable
GainFromWriteOffFeePayable
394522 usd
CY2021 us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
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CY2020 us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
5299726 usd
CY2021 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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CY2021 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
477162 usd
CY2020 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
158943 usd
CY2021 us-gaap Increase Decrease In Operating Lease Liability
IncreaseDecreaseInOperatingLeaseLiability
-14756 usd
CY2021Q4 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
4443 usd
CY2020Q4 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
100000 usd
CY2021Q4 us-gaap Prepaid Rent
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15385 usd
CY2021Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
19828 usd
CY2020Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
100000 usd
CY2021 us-gaap Share Based Compensation
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217475 usd
CY2020Q4 us-gaap Accrued Income Taxes Current
AccruedIncomeTaxesCurrent
2370872 usd
CY2021 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-441146 usd
CY2020 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-665693 usd
CY2021 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
2422 usd
CY2020 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
617 usd
CY2021 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-2422 usd
CY2020 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-617 usd
CY2021 us-gaap Proceeds From Issuance Of Private Placement
ProceedsFromIssuanceOfPrivatePlacement
459077 usd
CY2020 us-gaap Proceeds From Convertible Debt
ProceedsFromConvertibleDebt
645000 usd
CY2020 us-gaap Proceeds From Short Term Debt
ProceedsFromShortTermDebt
21446 usd
CY2021Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
407 usd
CY2020Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
3229 usd
CY2021Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
2632 usd
CY2020Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
599 usd
CY2021 us-gaap Depreciation
Depreciation
389 usd
CY2020 us-gaap Depreciation
Depreciation
456 usd
CY2021Q4 us-gaap Employee Related Liabilities Current
EmployeeRelatedLiabilitiesCurrent
1943544 usd
CY2020Q4 us-gaap Employee Related Liabilities Current
EmployeeRelatedLiabilitiesCurrent
1749401 usd
CY2021Q4 us-gaap Accrued Professional Fees Current
AccruedProfessionalFeesCurrent
61057 usd
CY2020Q4 us-gaap Accrued Professional Fees Current
AccruedProfessionalFeesCurrent
47266 usd
CY2021Q4 us-gaap Accrued Income Taxes Current
AccruedIncomeTaxesCurrent
472773 usd
CY2021 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
459077 usd
CY2020 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
666446 usd
CY2021 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
201 usd
CY2020 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
321 usd
CY2021 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
15710 usd
CY2020 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
457 usd
CY2020Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
5967 usd
CY2019Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
5510 usd
CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
21677 usd
CY2020Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
5967 usd
CY2020 us-gaap Interest Paid Net
InterestPaidNet
615000 usd
CY2021 nwcn Exercise Of Conversion Option
ExerciseOfConversionOption
2000000 usd
CY2021 nwcn Settlement Of Interest Payable By Private Placement
SettlementOfInterestPayableByPrivatePlacement
140923 usd
CY2021 us-gaap Dividends
Dividends
3544430 usd
CY2021 us-gaap Nature Of Operations
NatureOfOperations
<p id="xdx_805_eus-gaap--NatureOfOperations_z9yIfHD7Kzqb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 0"/><td style="width: 76.5pt"><b>NOTE 1</b></td><td style="text-align: justify"><b><span id="xdx_827_zJetIi8chZ8f">ORGANIZATION AND PRINCIPAL ACTIVITIES</span></b></td></tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Network CN Inc. was originally incorporated on September 10, 1993 in Delaware with headquarters in the Hong Kong Special Administrative Region of the People’s Republic of China (“PRC” or “China”).  Since August 2006, Network CN Inc., its subsidiaries and variable interest entities for which it is the primary beneficiary (collectively “NCN” or the “Company” “we”, “our” or “us”) has been principally engaged in the provision of out-of-home advertising in China through the operation of a network of roadside light emitting diode (“LED”) digital video panels, mega-size LED digital video billboards and light boxes in major cities.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Details of the Company’s principal subsidiaries and variable interest entities as of December 31, 2021 are described in Note 3 – Subsidiaries and Variable Interest Entities.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><b>COVID-19 Pandemic</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">In December 2019, an outbreak of COVID-19 was identified in China and was subsequently recognized as a global pandemic by the World Health Organization (“WHO”) on March 11, 2020. Since that time, COVID-19 has spread around the world and throughout the United States, including in the regions and countries in which we operate. Federal, state and local governments in the U.S and around the world have imposed restrictions on travel and business operations and are advising or requiring individuals to limit or eliminate time outside of their homes. Temporary closures of businesses have also been ordered in certain jurisdictions, and other businesses have temporarily closed voluntarily. These actions expanded significantly in March and April of 2020 throughout the U.S. Consequently, the COVID-19 outbreak has severely restricted the level of economic activity in the U.S. and around the world.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The outbreak has resulted in authorities implementing numerous measures to try to contain the virus, such as quarantines and shelter in place orders. These measures may remain in place for a significant period of time and adversely affect our business, operations and financial condition as well as the business, operations and financial conditions of our business partners. The spread of the virus has also caused us to modify our business practices (including employee work locations and cancellation of physical participation in meetings) in ways that may be detrimental to our business (including working remotely and its attendant cybersecurity risks). We may take further actions as may be required by government authorities or that we determine are in the best interests of our employees. There is no certainty that such measures will be sufficient to mitigate the risks posed by the virus or otherwise be satisfactory to government authorities.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">There has been no material adverse impact on the Company’s 2021 results of operations to date. The effect of COVID-19 and related events, those not yet known or knowable, could have a negative effect on the stock price, business prospects, financial condition, and results of operations of the Company, including as a result of quarantines, market volatility, market downturns and business closures.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">For the reasons discussed above, the Company cannot reasonably estimate with any degree of certainty the future impact COVID-19 may have on the Company’s results of operations, financial position, and liquidity. Notwithstanding any actions by national, state, and local governments to mitigate the impact of COVID-19 or by the Company to address the adverse impacts of COVID-19, there can be no assurance that any of the foregoing activities will be successful in mitigating or preventing significant adverse effects on the Company.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><b>Recent development</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><b>Issuance of Convertible Promissory Note</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On January 18, 2022, the Company entered into a Subscription Agreement under which the Subscriber agreed to purchase the 1% Senior Unsecured Convertible Note Agreement from the Company for an agreement purchase price of two million five hundred thousand US Dollars ($<span id="xdx_902_ecustom--AgreementPurchasePrice_iI_pp0p0_c20220118__us-gaap--TypeOfArrangementAxis__custom--SubscriptionAgreementMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zcaj8Fr9Nj8h" title="Agreement purchase price">2,500,000</span>). On the same date, the Company signed the with 1% Senior Unsecured Convertible Note Agreement under which the Company may sell and issue to the Subscriber up to an aggregate maximum amount of $<span id="xdx_903_eus-gaap--DebtInstrumentFaceAmount_iI_pp0p0_c20220118__us-gaap--TypeOfArrangementAxis__custom--SubscriptionAgreementMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zCHVVmdwXUb7" title="Principal amount">2,500,000</span> in principal amount of Convertible Notes prior to January 19, 2027. The Convertible Promissory Notes issued to the Investor are convertible at the holder’s option into shares of Company common stock at $<span id="xdx_90E_eus-gaap--SharesIssuedPricePerShare_iI_c20220118__us-gaap--TypeOfArrangementAxis__custom--SubscriptionAgreementMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zR59cnTrM1na" title="Shares issued price per share">1.25</span> per share.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><b>Exercise of conversion option</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="background-color: white">On October 28, 2021, Keywin Holdings Limited (“Keywin”) exercised its option to purchase an aggregate of <span id="xdx_90B_ecustom--AggregateSharesPurchase_c20211001__20211028__dei--LegalEntityAxis__custom--KeywinHoldingsLimitedMember_zpqcT3KutY92" title="Aggregate shares purchase">11,764,756</span> shares of the Company’ common stock for an aggregate purchase price of $<span id="xdx_90D_ecustom--AggregateSharesPurchasePrice_pp0p0_c20211001__20211028__dei--LegalEntityAxis__custom--KeywinHoldingsLimitedMember_zFUMSXRKXC16" title="Aggregate shares purchase price">2,000,000</span> </span>which for setting off against the Company’s obligation to repay part of the short term loan interest payable, there was no cash proceeds from the exercise of Keywin option.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><b>Private Placement</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="background-color: white">On May 3, 2021, the Company entered into Common Stock Agreement with the foreign investor (the "New investor") that the Company will sell an aggregate of <span id="xdx_902_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20210501__20210503__us-gaap--TypeOfArrangementAxis__custom--CommonStockPurchaseAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--InvestorMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember_zxAyH1bSihce" title="Number of common stock sold">200,000</span> shares of the Company's common stock to the New investor. Pursuant to the terms of a Common Stock Agreement between the Company and the New investor, the purchase price paid by the New investor for the shares were $3 per share for an aggregate sum of six hundred thousand U.S. dollars. The Company received $<span id="xdx_908_ecustom--ProceedsFromInvestor_c20210501__20210503_pp0p0" title="Proceeds from investor">459,077</span> cash proceeds from the investor and $<span id="xdx_908_ecustom--ShortTermLoansInterestPayable_c20210501__20210503_pp0p0" title="Short term loans interest payable">140,923</span> was settled for the interest payable of short-term loans. </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><b>Increase of authorized capital</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On April 28, 2020, the Board of Directors and Majority of stockholders of the Company approved to increase the total number of authorized shares of Common Stock from <span id="xdx_907_eus-gaap--CommonStockSharesAuthorized_iI_c20200428_zZ6CfEMEtDa2" title="Common stock, authorized">26,666,667</span> to <span id="xdx_905_eus-gaap--CommonStockSharesAuthorized_iI_c20211231_zU7dUMzYdJJk" title="Common stock, authorized">100,000,000,000</span>. On October 11, 2021, we filed a Certificate of Amendment to our Certificate of Incorporation with the Delaware Secretary of State to increase our authorized shares of common stock from 26,666,667 to 100,000,000,000 and the increase had approved by Delaware secretary of state on April 5, 2022</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><b>Identification of New projects</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On January 14, 2020, the Company entered into a Letter of Intent with Earthasia Worldwide Holdings Limited (“EWHL”) that the Company will acquire <span id="xdx_907_eus-gaap--BusinessAcquisitionPercentageOfVotingInterestsAcquired_iI_dp_c20200114__us-gaap--BusinessAcquisitionAxis__custom--EarthasiaWorldwideHoldingsLimitedMember_z3OftbYauFU6" title="Issued and outstanding stock owned (Percentage)">100</span>% of the EWHL’s issued and outstanding stock owned by the shareholders of the EWHL and the EWHL will become a wholly owned subsidiary of the Company.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On July 23, 2020, the Company entered into Share Exchange Agreement with Ease Global Limited (“Ease Global”), the shareholder of Trade More Global Limited (‘Trade More”) that the Company will purchase, <span id="xdx_907_eus-gaap--BusinessCombinationCostOfAcquiredEntityEquityInterestsIssuedAndIssuableFairValueMethod_c20200722__20200723__us-gaap--TypeOfArrangementAxis__custom--ShareExchangeAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--TradeMoreGlobalLimitedMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--EaseGlobalLimitedMember" title="Equity interests issued and issuable">One Thousand and One Hundred (1,100) currently issued shares of common stock of Trade More from Ease Global and in exchange for Forty-nine Million (49,000,000) shares of newly-issued shares of common stock of the Company.</span> The closing of the Exchange shall occur on other date as agreed by the parties of the Share Exchange Agreement. <span id="xdx_909_eus-gaap--BusinessAcquisitionEquityInterestIssuedOrIssuableDescription_c20200722__20200723__us-gaap--TypeOfArrangementAxis__custom--ShareExchangeAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--TradeMoreGlobalLimitedMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--EaseGlobalLimitedMember" title="Equity interest issued, description">Upon completion of the Exchange, 78% of issued shares of common stock of the Company shall be held by the Ease Global while all of the shares of capital stock of Trade More shall be held by the Company.</span> EWHL is a wholly owned subsidiary of Trade More.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The closing of Exchange was not completed on September 2, 2020 which was due to the progress of audit. Since Ease Global cannot fulfill the revenue target and complete the audit, the Company considered the Share Exchange Agreement was lapsed.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Going Concern</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has net cash used in operating activities of $<span id="xdx_90B_eus-gaap--NetCashProvidedByUsedInOperatingActivities_iN_pp0p0_di_c20210101__20211231_z9ZXDHoC49S4" title="Net cash used in operating activities">441,146</span> and $<span id="xdx_90B_eus-gaap--NetCashProvidedByUsedInOperatingActivities_iN_pp0p0_di_c20200101__20201231_zTnhWMfNad7d" title="Net cash used in operating activities">665,693</span> for the years ended December 31, 2021 and 2020 respectively. As of December 31, 2021 and 2020, the Company has stockholders’ deficit of $<span id="xdx_903_eus-gaap--StockholdersEquity_iNI_pp0p0_di_c20211231_zQsbkqBNIKZf" title="Stockholders' deficits">6,171,255</span> and $<span id="xdx_906_eus-gaap--StockholdersEquity_iNI_pp0p0_di_c20201231_zkxBF3SLL0kl" title="Stockholders' deficits">7,773,295</span>, respectively. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s plans regarding those concerns are addressed in the following paragraph. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In response to current financial conditions, the Company has actively explored new prominent media projects in order to provide a wider range of media and advertising services and improve our financial performance. If the project can start to operate, the Company expects that the project will improve the Company’s future financial performance. The Company expects that the new project can generate positive cashflow.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The existing cash and cash equivalents together with highly liquid current assets are insufficient to fund the Company’s operations for the next twelve months. The Company will need to rely upon some combination of cash generated from the Company’s operations, or proceeds from the issuance of the Company’s equity and debt securities as well as the exercise of the conversion option by the Company’s note holders to convert the notes to the Company’s common stock, in order to maintain the Company’s operations. Based on the Company’s best estimates, the Company believes that there are sufficient financial resources to meet the cash requirements for the coming twelve months and the consolidated financial statements have been prepared on a going concern basis. However, there can be no assurance the Company will be able to continue as a going concern. These uncertainties may result in adverse effects on continuation of the Company as a going concern. The accompany consolidated financial statements do not reflect any adjustments that might result from the outcome of these uncertainties.</p>
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CY2020Q4 us-gaap Stockholders Equity
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CY2020 nwcn Interest Expense On Short Term Debt
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CY2021Q4 nwcn Aggregate Shares Purchase Price
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CY2020 us-gaap Interest Expense Debt
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CY2021Q4 nwcn Les Imputed Interest
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CY2021Q4 us-gaap Lessee Operating Lease Liability Payments Due
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CY2021 nwcn Operating Cash Outflows From Operating Lease
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CY2021 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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CY2021Q4 nwcn Aggregate Shares Purchase
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CY2021Q4 nwcn Aggregate Shares Purchase Price
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CY2021Q4 nwcn Aggregate Shares Purchase Price
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CY2020Q4 us-gaap Short Term Debt Percentage Bearing Fixed Interest Rate
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CY2021 us-gaap Interest Expense Related Party
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CY2021 us-gaap Use Of Estimates
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<p id="xdx_84F_eus-gaap--UseOfEstimates_zHsEe2XE3Ob4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>(C) <span id="xdx_866_z7AM4kmIl18e">Use of Estimates</span></i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company's consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expense during the reporting period. Estimates are used when accounting for certain items such as accounting for income tax valuation allowances. Estimates are based on historical experience, where applicable, and assumptions that management believes are reasonable under the circumstances. Due to the inherent uncertainty involved with estimates, actual results may differ.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
CY2021Q4 us-gaap Cash And Cash Equivalents At Carrying Value
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CY2020Q4 us-gaap Cash And Cash Equivalents At Carrying Value
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CY2009Q3 nwcn Description Of Exercise Period Under Agreement
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the Company and Keywin, of which the Company’s chief executive officer and director is the director and his spouse is the sole shareholder, entered into an Amendment, pursuant to which the Company agreed to extend the exercise period for the Keywin Option under the Note Exchange and Option Agreement between the Company and Keywin, to purchase an aggregate of 1,637,522 shares of our common stock for an aggregate purchase price of $2,000,000, from a three-month period ended on July 1, 2009, to a six-month period ended October 1, 2009. The exercise period for the Keywin option was subsequently further extended to a nine-month period ended January 1, 2010, pursuant to the Second Amendment. On January 1, 2010, the Company and Keywin entered into the third Amendment, pursuant to which the Company agreed to further extend the exercise period to an eighteen-month period ended on October 1, 2010, and provide the Company with the right to unilaterally terminate the exercise period upon 30 days’ written notice. On September 30, 2010, the exercise price was extended at various times from September 1, 2010 to December 31, 2017 and the Keywin Option was further extended to a hundred and twenty-nine-month period ending on January 1, 2020 and the exercise price changed to $0.99.
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CY2021 us-gaap Dividends
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CY2021Q4 nwcn Aggregate Shares Purchase
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CY2020 us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2021Q4 nwcn Aggregate Shares Purchase Price
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CY2020Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
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CY2021 us-gaap Depreciation
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Under Hong Kong tax laws, deferred tax assets are recognized for tax loss carried forward to the extent that the realization of the related tax benefit through future taxable profits is probable. These tax losses do not expire under current Hong Kong tax legislation. Under PRC tax laws, tax losses may be carried forward for 5 years and no carry-back is allowed. At December 31, 2021 the Company does not have available tax losses in the Hong Kong and PRC to utilize for future taxable profits.
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CY2021Q4 nwcn Operating Loss Carried Forward2029 To2033
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CY2021Q4 nwcn Operating Loss Carried Forward2034 To2037
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CY2020Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
3443596 usd
CY2021 nwcn Schedule Of Movement Of Deferred Tax Assets Valuation Allowance
ScheduleOfMovementOfDeferredTaxAssetsValuationAllowance
<table cellpadding="0" cellspacing="0" id="xdx_89A_ecustom--ScheduleOfMovementOfDeferredTaxAssetsValuationAllowance_zKdi7BOqvKoh" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%" summary="xdx: Disclosure - INCOME TAXES (Details 4)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span id="xdx_8B0_znO182aps9Ma" style="display: none">Schedule of movement of valuation allowance</span></td><td> </td> <td style="text-align: left"> </td><td id="xdx_49F_20210101_20211231" style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49D_20200101_20201231" style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center">2020</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td> </td> <td colspan="2" style="white-space: nowrap; text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="white-space: nowrap; text-align: right"> </td><td> </td></tr> <tr id="xdx_40F_eus-gaap--DeferredTaxAssetsValuationAllowance_iS_pp0p0_zXIhry0FGDU3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">At the beginning of the year </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">3,443,596</td><td style="white-space: nowrap; width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">4,549,144</td><td style="white-space: nowrap; width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--ValuationAllowanceDeferredTaxAssetChangeInAmount_i_pp0p0" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Current year addition (reduction)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">52,886</td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,105,548</td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--DeferredTaxAssetsValuationAllowance_iE_pp0p0_z3cMxXVvgawf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">At the end of the year</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,496,482</td><td style="white-space: nowrap; padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,443,596</td><td style="white-space: nowrap; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>
CY2020Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
3443596 usd
CY2019Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
4549144 usd
CY2021 us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
52886 usd
CY2021 us-gaap Interest Expense Related Party
InterestExpenseRelatedParty
512101 usd
CY2020 us-gaap Interest Expense Related Party
InterestExpenseRelatedParty
512863 usd
CY2021 us-gaap Interest Expense Debt
InterestExpenseDebt
6468 usd
CY2020 us-gaap Interest Expense Debt
InterestExpenseDebt
18567 usd
CY2021 us-gaap Operating Lease Cost
OperatingLeaseCost
15385 usd
CY2021Q4 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
46154 usd
CY2021Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
30769 usd
CY2021Q4 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
76923 usd
CY2021Q4 nwcn Les Imputed Interest
LesImputedInterest
-1402 usd
CY2021Q4 us-gaap Lessee Operating Lease Liability Payments Due
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CY2021Q4 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P1Y8M26D
CY2021Q4 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.0233 pure
CY2021 us-gaap Debt Conversion Original Debt Amount1
DebtConversionOriginalDebtAmount1
2500000 usd
CY2021 nwcn Operating Cash Outflows From Operating Lease
OperatingCashOutflowsFromOperatingLease
15385 usd
CY2021 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
90277 usd
CY2021Q4 nwcn Aggregate Shares Purchase
AggregateSharesPurchase
11764756 shares
CY2021Q4 nwcn Aggregate Shares Purchase Price
AggregateSharesPurchasePrice
2000000 usd
CY2021 us-gaap Sale Of Stock Consideration Received On Transaction
SaleOfStockConsiderationReceivedOnTransaction
600000 usd
CY2018Q1 us-gaap Stock Issued During Period Shares Issued For Services
StockIssuedDuringPeriodSharesIssuedForServices
10000 shares
CY2018Q1 us-gaap Stock Issued During Period Shares Other
StockIssuedDuringPeriodSharesOther
10000 shares
CY2021 nwcn Noncash Stockbased Compensation
NoncashStockbasedCompensation
187475 usd
CY2009Q3 nwcn Description Of Exercise Period Under Agreement
DescriptionOfExercisePeriodUnderAgreement
the Company and Keywin, of which the Company’s chief executive officer and director is the director and his spouse is the sole shareholder, entered into an Amendment, pursuant to which the Company agreed to extend the exercise period for the Keywin Option under the Note Exchange and Option Agreement between the Company and Keywin, to purchase an aggregate of 1,637,522 shares of our common stock for an aggregate purchase price of $2,000,000, from a three-month period ended on July 1, 2009, to a six-month period ended October 1, 2009. The exercise period for the Keywin option was subsequently further extended to a nine-month period ended January 1, 2010, pursuant to the Second Amendment. On January 1, 2010, the Company and Keywin entered into the third Amendment, pursuant to which the Company agreed to further extend the exercise period to an eighteen-month period ended on October 1, 2010, and provide the Company with the right to unilaterally terminate the exercise period upon 30 days’ written notice. On September 30, 2010, the exercise price was extended at various times from September 1, 2010 to December 31, 2017 and the Keywin Option was further extended to a hundred and twenty-nine-month period ending on January 1, 2020 and the exercise price changed to $0.99.
CY2021Q4 nwcn Aggregate Shares Purchase
AggregateSharesPurchase
11764756 shares
CY2021Q4 nwcn Aggregate Shares Purchase Price
AggregateSharesPurchasePrice
2000000 usd
CY2021 us-gaap Dividends
Dividends
3544430 usd
CY2021Q4 nwcn Aggregate Shares Purchase
AggregateSharesPurchase
11764756 shares
CY2021Q4 nwcn Aggregate Shares Purchase Price
AggregateSharesPurchasePrice
2000000 usd
CY2021Q4 us-gaap Short Term Debt Percentage Bearing Fixed Interest Rate
ShortTermDebtPercentageBearingFixedInterestRate
0.015 pure
CY2020Q4 us-gaap Short Term Debt Percentage Bearing Fixed Interest Rate
ShortTermDebtPercentageBearingFixedInterestRate
0.015 pure
CY2021 us-gaap Allowance For Loan And Lease Losses Writeoffs Net
AllowanceForLoanAndLeaseLossesWriteoffsNet
708 usd
CY2020 us-gaap Allowance For Loan And Lease Losses Writeoffs Net
AllowanceForLoanAndLeaseLossesWriteoffsNet
394522 usd
CY2021 us-gaap Net Income Loss
NetIncomeLoss
-1215636 usd
CY2020 us-gaap Net Income Loss
NetIncomeLoss
4869156 usd
CY2021 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
11023767 shares
CY2020 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
8774263 shares
CY2021 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
11023767 shares
CY2020 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
8774263 shares
CY2021 nwcn Net Loss Profit Per Common Shares Basic And Diluted
NetLossProfitPerCommonSharesBasicAndDiluted
-0.11
CY2020 nwcn Net Loss Profit Per Common Shares Basic And Diluted
NetLossProfitPerCommonSharesBasicAndDiluted
0.55
CY2021 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
-1215636 usd
CY2020 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
4869156 usd
CY2020Q4 us-gaap Operating Loss Carryforwards
OperatingLossCarryforwards
16398074 usd
CY2020Q4 us-gaap Operating Loss Carryforwards Valuation Allowance
OperatingLossCarryforwardsValuationAllowance
3443596 usd
CY2020 nwcn Operating Loss Carryforwards Expiration Year
OperatingLossCarryforwardsExpirationYear
expire on various from 2024 through 2037
CY2020Q4 nwcn Operating Loss Carried Forward2024 To2028
OperatingLossCarriedForward2024To2028
2279147 usd
CY2021 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
-1215636 usd
CY2020 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
4869156 usd
CY2021 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.21 pure
CY2020 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.21 pure
CY2021 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
-255284 usd
CY2020 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
1022523 usd
CY2021 us-gaap Income Tax Reconciliation Nondeductible Expense
IncomeTaxReconciliationNondeductibleExpense
156211 usd
CY2020 us-gaap Income Tax Reconciliation Nondeductible Expense
IncomeTaxReconciliationNondeductibleExpense
82304 usd
CY2021 us-gaap Effective Income Tax Rate Reconciliation Nondeductible Expense Share Based Compensation Cost
EffectiveIncomeTaxRateReconciliationNondeductibleExpenseShareBasedCompensationCost
45670 pure
CY2021 us-gaap Income Tax Reconciliation Change In Enacted Tax Rate
IncomeTaxReconciliationChangeInEnactedTaxRate
516 usd
CY2020 us-gaap Income Tax Reconciliation Change In Enacted Tax Rate
IncomeTaxReconciliationChangeInEnactedTaxRate
722 usd
CY2021 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance
52886 usd
CY2020 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance
-1105549 usd
CY2021 us-gaap Tax Credit Carryforward Description
TaxCreditCarryforwardDescription
Under Hong Kong tax laws, deferred tax assets are recognized for tax loss carried forward to the extent that the realization of the related tax benefit through future taxable profits is probable. These tax losses do not expire under current Hong Kong tax legislation. Under PRC tax laws, tax losses may be carried forward for 5 years and no carry-back is allowed. At December 31, 2021 the Company does not have available tax losses in the Hong Kong and PRC to utilize for future taxable profits.
CY2021Q4 us-gaap Operating Loss Carryforwards
OperatingLossCarryforwards
16649913 usd
CY2021Q4 us-gaap Operating Loss Carryforwards Valuation Allowance
OperatingLossCarryforwardsValuationAllowance
3496482 usd
CY2021 nwcn Operating Loss Carryforwards Expiration Year
OperatingLossCarryforwardsExpirationYear
expire on various from 2024 through 2037
CY2021Q4 nwcn Operating Loss Carried Forward2024 To2028
OperatingLossCarriedForward2024To2028
2332033 usd
CY2021Q4 nwcn Operating Loss Carried Forward2029 To2033
OperatingLossCarriedForward2029To2033
892375 usd
CY2021Q4 nwcn Operating Loss Carried Forward2034 To2037
OperatingLossCarriedForward2034To2037
217937 usd
CY2021Q4 nwcn Operating Loss Carried Forward Indefinitely
OperatingLossCarriedForwardIndefinitely
54137 usd
CY2021Q4 us-gaap Deferred Tax Assets Gross
DeferredTaxAssetsGross
3496482 usd
CY2020Q4 nwcn Operating Loss Carried Forward2029 To2033
OperatingLossCarriedForward2029To2033
892375 usd
CY2020Q4 nwcn Operating Loss Carried Forward2034 To2037
OperatingLossCarriedForward2034To2037
217937 usd
CY2020Q4 nwcn Operating Loss Carried Forward Indefinitely
OperatingLossCarriedForwardIndefinitely
54137 usd
CY2020Q4 us-gaap Deferred Tax Assets Gross
DeferredTaxAssetsGross
3443596 usd
CY2021Q4 us-gaap Deferred Tax Assets Gross
DeferredTaxAssetsGross
3496482 usd
CY2020Q4 us-gaap Deferred Tax Assets Gross
DeferredTaxAssetsGross
3443596 usd
CY2021Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
3496482 usd
CY2020Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
3443596 usd
CY2021 nwcn Schedule Of Movement Of Deferred Tax Assets Valuation Allowance
ScheduleOfMovementOfDeferredTaxAssetsValuationAllowance
<table cellpadding="0" cellspacing="0" id="xdx_89A_ecustom--ScheduleOfMovementOfDeferredTaxAssetsValuationAllowance_zKdi7BOqvKoh" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%" summary="xdx: Disclosure - INCOME TAXES (Details 4)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span id="xdx_8B0_znO182aps9Ma" style="display: none">Schedule of movement of valuation allowance</span></td><td> </td> <td style="text-align: left"> </td><td id="xdx_49F_20210101_20211231" style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49D_20200101_20201231" style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center">2020</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td> </td> <td colspan="2" style="white-space: nowrap; text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="white-space: nowrap; text-align: right"> </td><td> </td></tr> <tr id="xdx_40F_eus-gaap--DeferredTaxAssetsValuationAllowance_iS_pp0p0_zXIhry0FGDU3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">At the beginning of the year </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">3,443,596</td><td style="white-space: nowrap; width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">4,549,144</td><td style="white-space: nowrap; width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--ValuationAllowanceDeferredTaxAssetChangeInAmount_i_pp0p0" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Current year addition (reduction)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">52,886</td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,105,548</td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--DeferredTaxAssetsValuationAllowance_iE_pp0p0_z3cMxXVvgawf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">At the end of the year</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,496,482</td><td style="white-space: nowrap; padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,443,596</td><td style="white-space: nowrap; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>
CY2020Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
3443596 usd
CY2019Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
4549144 usd
CY2021 us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
52886 usd
CY2020 us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
-1105548 usd
CY2021Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
3496482 usd
CY2020Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
3443596 usd

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