2022 Q3 Form 10-Q Financial Statement

#000121465923000089 Filed on January 04, 2023

View on sec.gov

Income Statement

Concept 2022 Q3 2021 Q3
Revenue $22.53K $0.00
YoY Change
Cost Of Revenue $17.24K $0.00
YoY Change
Gross Profit $5.297K $0.00
YoY Change
Gross Profit Margin 23.51%
Selling, General & Admin $111.8K $72.70K
YoY Change 53.73% -17.68%
% of Gross Profit 2109.87%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization -$12.56K $50.00
YoY Change -25220.0%
% of Gross Profit -237.12%
Operating Expenses $111.8K $72.70K
YoY Change 53.72% -17.68%
Operating Profit -$106.5K -$72.70K
YoY Change 46.43% -17.68%
Interest Expense -$71.08K $130.0K
YoY Change -154.69% 0.0%
% of Operating Profit
Other Income/Expense, Net $718.00
YoY Change
Pretax Income -$176.8K -$202.7K
YoY Change -12.76% -3.73%
Income Tax $0.00
% Of Pretax Income
Net Earnings -$176.8K -$202.7K
YoY Change -12.76% -3.73%
Net Earnings / Revenue -784.66%
Basic Earnings Per Share -$0.01
Diluted Earnings Per Share -$8.413K -$23.10K
COMMON SHARES
Basic Shares Outstanding 21.02M shares 8.774M shares
Diluted Shares Outstanding 21.02M shares 8.774M shares

Balance Sheet

Concept 2022 Q3 2021 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $2.660K $6.390K
YoY Change -58.37% 11.91%
Cash & Equivalents $2.657K $6.393K
Short-Term Investments
Other Short-Term Assets $15.39K $100.0K
YoY Change -84.61% 0.0%
Inventory
Prepaid Expenses $15.39K $100.0K
Receivables $22.97K
Other Receivables $0.00
Total Short-Term Assets $41.01K $106.4K
YoY Change -61.46% 0.64%
LONG-TERM ASSETS
Property, Plant & Equipment $2.770K $450.00
YoY Change 515.56%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets $68.84K $450.00
YoY Change 15197.56%
TOTAL ASSETS
Total Short-Term Assets $41.01K $106.4K
Total Long-Term Assets $68.84K $450.00
Total Assets $109.8K $106.8K
YoY Change 2.81% 1.07%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $25.45K $4.861M
YoY Change -99.48% 11.51%
Accrued Expenses $2.429M
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $1.138M $2.973M
YoY Change -61.74% 0.0%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $3.692M $7.835M
YoY Change -52.87% -36.47%
LONG-TERM LIABILITIES
Long-Term Debt $2.799M $645.0K
YoY Change 334.02% 0.0%
Other Long-Term Liabilities $2.220K
YoY Change
Total Long-Term Liabilities $2.802M $645.0K
YoY Change 334.36% 0.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $3.692M $7.835M
Total Long-Term Liabilities $2.802M $645.0K
Total Liabilities $6.494M $8.480M
YoY Change -23.42% -34.66%
SHAREHOLDERS EQUITY
Retained Earnings -$139.1M
YoY Change
Common Stock $131.0M
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$6.384M -$8.373M
YoY Change
Total Liabilities & Shareholders Equity $109.8K $106.8K
YoY Change 2.81% 1.07%

Cashflow Statement

Concept 2022 Q3 2021 Q3
OPERATING ACTIVITIES
Net Income -$176.8K -$202.7K
YoY Change -12.76% -3.73%
Depreciation, Depletion And Amortization -$12.56K $50.00
YoY Change -25220.0%
Cash From Operating Activities -$17.51K -$320.4K
YoY Change -94.53% -1601850.0%
INVESTING ACTIVITIES
Capital Expenditures $0.00
YoY Change
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities $0.00
YoY Change
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 16.18K 320.5K
YoY Change -94.95%
NET CHANGE
Cash From Operating Activities -17.51K -320.4K
Cash From Investing Activities 0.000
Cash From Financing Activities 16.18K 320.5K
Net Change In Cash -1.330K 160.0
YoY Change -931.25% 700.0%
FREE CASH FLOW
Cash From Operating Activities -$17.51K -$320.4K
Capital Expenditures $0.00
Free Cash Flow -$17.51K
YoY Change

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CY2021Q2 us-gaap Profit Loss
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CY2021Q2 us-gaap Stockholders Equity
StockholdersEquity
-8170171 usd
CY2021Q3 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent
60 usd
CY2021Q3 us-gaap Profit Loss
ProfitLoss
-202673 usd
CY2021Q3 us-gaap Stockholders Equity
StockholdersEquity
-8372784 usd
CY2021Q4 us-gaap Stockholders Equity
StockholdersEquity
-6171255 usd
CY2022Q1 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
24000 usd
CY2022Q1 us-gaap Adjustments To Additional Paid In Capital Convertible Debt With Conversion Feature
AdjustmentsToAdditionalPaidInCapitalConvertibleDebtWithConversionFeature
400000 usd
CY2022Q1 us-gaap Profit Loss
ProfitLoss
-272841 usd
CY2022Q1 us-gaap Stockholders Equity
StockholdersEquity
-6020096 usd
CY2022Q2 us-gaap Profit Loss
ProfitLoss
-186921 usd
CY2022Q2 us-gaap Stockholders Equity
StockholdersEquity
-6207017 usd
CY2022Q3 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent
-237 usd
CY2022Q3 us-gaap Profit Loss
ProfitLoss
-176816 usd
CY2022Q3 us-gaap Stockholders Equity
StockholdersEquity
-6384070 usd
us-gaap Net Income Loss
NetIncomeLoss
-636578 usd
us-gaap Net Income Loss
NetIncomeLoss
-599737 usd
us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
10392 usd
us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
154 usd
us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
54398 usd
nwcn Stock Issued For Services
StockIssuedForServices
-24000 usd
us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
22966 usd
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
-4443 usd
us-gaap Increase Decrease In Operating Lease Liability
IncreaseDecreaseInOperatingLeaseLiability
-17453 usd
us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
396654 usd
us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
279248 usd
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-187110 usd
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-320335 usd
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
1078 usd
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-1078 usd
us-gaap Proceeds From Issuance Of Private Placement
ProceedsFromIssuanceOfPrivatePlacement
320513 usd
us-gaap Proceeds From Short Term Debt
ProceedsFromShortTermDebt
169405 usd
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
169405 usd
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
320513 usd
us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
-237 usd
us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
248 usd
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-19020 usd
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
426 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
CY2022Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
2657 usd
CY2021Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
6393 usd
nwcn Settlement Of Short Term Loan By Conversion To Convertible Note
SettlementOfShortTermLoanByConversionToConvertibleNote
2005000 usd
nwcn Settlement Of Short Term Loan Interest Payable By Conversion To Convertible Note
SettlementOfShortTermLoanInterestPayableByConversionToConvertibleNote
495000 usd
us-gaap Nature Of Operations
NatureOfOperations
<p id="xdx_80F_eus-gaap--NatureOfOperations_zAYjTDuRRXi2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></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: 1in"><b>NOTE 1.</b></td><td><b><span id="xdx_82A_ze6C5J87WPml">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, the Company has been principally engaged in the provision of out-of-home advertising in China through the operation of a network of roadside 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 September 30, 2022, 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"><b>COVID-19 Pandemic</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">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"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There has been no material adverse impact on the Company’s 2021 and 2022 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"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Recent development</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Our Business in Ningbo</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">The Company explored new media project in Ningbo, China and decided to restart its business and expects that will improve the Company’s future financial performance. In April 2022, the Company has established a newly subsidiary, NCN (Ningbo) Culture Media Co., Ltd (“NCN Ningbo”), a wholly foreign-owned enterprise in Ningbo, China. The Company owns 100% of the established subsidiary company, NCN Ningbo. In August 2022, NCN Ningbo started its operation and acquired rights to operate advertising panels in Ningbo, China and sell advertising airtime to our customers directly.</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"><b>Issuance of Convertible Promissory Note</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">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_900_ecustom--AgreementPurchasePrice_c20220118__us-gaap--TypeOfArrangementAxis__custom--SubscriptionAgreementMember_pp0p0" 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_90E_eus-gaap--DebtInstrumentFaceAmount_c20220118__us-gaap--TypeOfArrangementAxis__custom--SubscriptionAgreementMember_pp0p0" 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_c20220118__us-gaap--TypeOfArrangementAxis__custom--SubscriptionAgreementMember_pdd" 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"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"/> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Exercise of conversion option</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">On October 28, 2021, Keywin Holdings Limited (“Keywin”) exercised its option to purchase an aggregate of <span id="xdx_904_ecustom--AggregateSharesPurchase_c20211001__20211028__dei--LegalEntityAxis__custom--KeywinHoldingsLimitedMember_pdd" title="Aggregate shares purchase">11,764,756</span> shares of the Company’ common stock for an aggregate purchase price of $<span id="xdx_906_ecustom--AggregateSharesPurchasePrice_c20211001__20211028__dei--LegalEntityAxis__custom--KeywinHoldingsLimitedMember_pp0p0" title="Aggregate shares purchase price">2,000,000</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"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Private Placement</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">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_90F_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20210501__20210503__us-gaap--TypeOfArrangementAxis__custom--CommonStockPurchaseAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--InvestorMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember_pdd" 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.</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"><b>Increase of authorized capital</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">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_903_eus-gaap--CommonStockSharesAuthorized_c20200428_pdd" title="Common stock, authorized">26,666,667</span> to <span id="xdx_90B_eus-gaap--CommonStockSharesAuthorized_iI_c20220930_zvALELhSbdwi" 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"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Identification of New projects</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">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_902_eus-gaap--BusinessAcquisitionPercentageOfVotingInterestsAcquired_iI_dp_c20200114__us-gaap--BusinessAcquisitionAxis__custom--EarthasiaWorldwideHoldingsLimitedMember_z7RoI5JouHsf" 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"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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. Upon <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">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"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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"><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 experienced recurring net losses $<span id="xdx_902_eus-gaap--NetIncomeLoss_iN_pp0p0_di_c20220701__20220930_zHC46Cki9HE9" title="Net loss">176,816</span> and $<span id="xdx_90D_eus-gaap--NetIncomeLoss_iN_pp0p0_di_c20210701__20210930_zXS8kWxS4eCh" title="Net loss">202,673</span> for the three months ended September 30, 2022 and 2021 respectively, and $<span id="xdx_900_eus-gaap--NetIncomeLoss_iN_pp0p0_di_c20220101__20220930_zrtyYoUUiZy7" title="Net loss">636,578</span> and $<span id="xdx_906_eus-gaap--NetIncomeLoss_iN_pp0p0_di_c20210101__20210930_zqppOoOKWyCa" title="Net loss">599,737</span> for the nine months ended September 30, 2022 and 2021 respectively. As of September 30, 2022, and December 31, 2021, the Company has stockholders’ deficit of $<span id="xdx_908_eus-gaap--StockholdersEquity_iNI_pp0p0_di_c20220930_zKP1cAu37SVc" title="Stockholders' deficits">6,384,070</span> and $<span id="xdx_908_eus-gaap--StockholdersEquity_iNI_pp0p0_di_c20211231_zXmtsGqJlTYh" title="Stockholders' deficits">6,171,255</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 unaudited 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"/> <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
ProceedsFromInvestor
459077 usd
CY2021Q2 nwcn Short Term Loans Interest Payable
ShortTermLoansInterestPayable
140923 usd
CY2020Q2 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
26666667 shares
CY2022Q3 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
100000000000 shares
CY2022Q3 us-gaap Net Income Loss
NetIncomeLoss
-176816 usd
CY2021Q3 us-gaap Net Income Loss
NetIncomeLoss
-202673 usd
us-gaap Net Income Loss
NetIncomeLoss
-636578 usd
us-gaap Net Income Loss
NetIncomeLoss
-599737 usd
CY2022Q3 us-gaap Stockholders Equity
StockholdersEquity
-6384070 usd
CY2021Q4 us-gaap Stockholders Equity
StockholdersEquity
-6171255 usd
us-gaap Use Of Estimates
UseOfEstimates
<p id="xdx_84C_eus-gaap--UseOfEstimates_zDuaznlzGOh9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>(C) <span id="xdx_862_zg16m1f68gX7">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">In preparing unaudited consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Differences from those estimates are reported in the period they become known and are disclosed to the extent they are material to the unaudited consolidated financial statements taken as a whole.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
CY2021Q3 nwcn Interest Expense On Short Term Debt
InterestExpenseOnShortTermDebt
128345 usd
nwcn Interest Expense On Short Term Debt
InterestExpenseOnShortTermDebt
385036 usd
CY2021Q4 us-gaap Convertible Notes Payable
ConvertibleNotesPayable
645000 usd
CY2022Q3 us-gaap Accounts Receivable Gross
AccountsReceivableGross
22966 usd
CY2022Q3 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
0 usd
CY2021Q4 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
0 usd
CY2022Q3 us-gaap Accounts Receivable Net
AccountsReceivableNet
22966 usd
CY2022Q3 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
-0 usd
CY2021Q4 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
-0 usd
CY2022Q3 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
15385 usd
CY2021Q4 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
19828 usd
CY2022Q3 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
15385 usd
CY2021Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
19828 usd
nwcn Interest Expense On Short Term Debt
InterestExpenseOnShortTermDebt
146812 usd
us-gaap Proceeds From Issuance Of Debt
ProceedsFromIssuanceOfDebt
2500000 usd
CY2022Q3 us-gaap Accounts Payable Current
AccountsPayableCurrent
25454 usd
CY2022Q3 us-gaap Employee Related Liabilities Current
EmployeeRelatedLiabilitiesCurrent
2081696 usd
CY2021Q4 us-gaap Employee Related Liabilities Current
EmployeeRelatedLiabilitiesCurrent
1943544 usd
CY2022Q3 us-gaap Accrued Professional Fees Current
AccruedProfessionalFeesCurrent
78442 usd
CY2021Q4 us-gaap Accrued Professional Fees Current
AccruedProfessionalFeesCurrent
61057 usd
CY2022Q3 us-gaap Accrued Income Taxes Current
AccruedIncomeTaxesCurrent
159451 usd
CY2021Q4 us-gaap Accrued Income Taxes Current
AccruedIncomeTaxesCurrent
485479 usd
CY2022Q3 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
53301 usd
CY2021Q4 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
6610 usd
CY2022Q3 us-gaap Accounts Payable Other Current And Noncurrent
AccountsPayableOtherCurrentAndNoncurrent
100491 usd
CY2021Q4 us-gaap Accounts Payable Other Current And Noncurrent
AccountsPayableOtherCurrentAndNoncurrent
100491 usd
CY2022Q3 us-gaap Accounts Payable And Accrued Liabilities Current
AccountsPayableAndAccruedLiabilitiesCurrent
2498835 usd
CY2021Q4 us-gaap Accounts Payable And Accrued Liabilities Current
AccountsPayableAndAccruedLiabilitiesCurrent
2597181 usd
CY2022Q3 us-gaap Short Term Borrowings
ShortTermBorrowings
1137616 usd
CY2021Q4 us-gaap Short Term Borrowings
ShortTermBorrowings
2973211 usd
CY2022Q3 nwcn Interest Expense On Short Term Debt
InterestExpenseOnShortTermDebt
45287 usd
us-gaap Amortization Of Financing Costs And Discounts
AmortizationOfFinancingCostsAndDiscounts
54398 usd
CY2022Q3 us-gaap Convertible Notes Payable
ConvertibleNotesPayable
2799398 usd
CY2022Q3 us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
17862 usd
us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
54398 usd
CY2022Q3 us-gaap Interest Expense Debt
InterestExpenseDebt
7927 usd
CY2021Q3 us-gaap Interest Expense Debt
InterestExpenseDebt
1608 usd
us-gaap Interest Expense Debt
InterestExpenseDebt
22290 usd
us-gaap Interest Expense Debt
InterestExpenseDebt
4860 usd
us-gaap Operating Lease Cost
OperatingLeaseCost
45009 usd
us-gaap Operating Lease Cost
OperatingLeaseCost
15385 usd
CY2022Q3 us-gaap Short Term Debt Percentage Bearing Fixed Interest Rate
ShortTermDebtPercentageBearingFixedInterestRate
0.015 pure
CY2022Q3 us-gaap Interest Expense Related Party
InterestExpenseRelatedParty
44967 usd
CY2021Q3 us-gaap Interest Expense Related Party
InterestExpenseRelatedParty
128025 usd
us-gaap Interest Expense Related Party
InterestExpenseRelatedParty
145852 usd
us-gaap Interest Expense Related Party
InterestExpenseRelatedParty
384076 usd
us-gaap Debt Conversion Original Debt Amount1
DebtConversionOriginalDebtAmount1
2500000 usd
CY2022Q3 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
11538 usd
CY2022Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
45224 usd
CY2022Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
2305 usd
CY2022Q3 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
59067 usd
CY2022Q3 nwcn Les Imputed Interest
LesImputedInterest
-999 usd
CY2022Q3 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
58068 usd
CY2022Q3 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P1Y1M28D
CY2021Q4 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P1Y8M26D
CY2022Q3 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.0233 pure
nwcn Operating Cash Outflows From Operating Lease
OperatingCashOutflowsFromOperatingLease
-17453 usd
CY2021Q4 nwcn Shares Granted Of Common Stock
SharesGrantedOfCommonStock
132172 shares
nwcn Noncash Stockbased Compensation
NoncashStockbasedCompensation
24000 usd
CY2009Q3 nwcn Description Of Exercise Period Under Agreement
DescriptionOfExercisePeriodUnderAgreement
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
CY2022Q3 us-gaap Net Income Loss
NetIncomeLoss
-176816 usd
CY2021Q3 us-gaap Net Income Loss
NetIncomeLoss
-202673 usd
us-gaap Net Income Loss
NetIncomeLoss
-636578 usd
us-gaap Net Income Loss
NetIncomeLoss
-599737 usd
CY2022Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
21018190 shares
CY2021Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
8774263 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
21018190 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
8774263 shares
CY2022Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
21018190 shares
CY2021Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
8774263 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
21018190 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
8774263 shares
CY2022Q3 nwcn Net Loss Profit Per Common Shares Basic And Diluted
NetLossProfitPerCommonSharesBasicAndDiluted
-0.01
CY2021Q3 nwcn Net Loss Profit Per Common Shares Basic And Diluted
NetLossProfitPerCommonSharesBasicAndDiluted
-0.02
nwcn Net Loss Profit Per Common Shares Basic And Diluted
NetLossProfitPerCommonSharesBasicAndDiluted
-0.03
nwcn Net Loss Profit Per Common Shares Basic And Diluted
NetLossProfitPerCommonSharesBasicAndDiluted
-0.07
CY2022Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
-176816 usd
CY2021Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
-202673 usd
us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
-636578 usd
us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
-599737 usd
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 September 30, 2022, the Company does not have available tax losses in the Hong Kong and PRC to utilize for future taxable profits.
CY2022Q3 us-gaap Operating Loss Carryforwards
OperatingLossCarryforwards
16447000 usd
CY2022Q3 us-gaap Operating Loss Carryforwards Valuation Allowance
OperatingLossCarryforwardsValuationAllowance
3537450 usd
nwcn Operating Loss Carryforwards Expiration Year
OperatingLossCarryforwardsExpirationYear
expire on various from 2024 through 2037
CY2022Q3 nwcn Operating Loss Carried Forward2024 To2028
OperatingLossCarriedForward2024To2028
2279147 usd
CY2022Q3 nwcn Operating Loss Carried Forward2029 To2033
OperatingLossCarriedForward2029To2033
892375 usd
CY2022Q3 nwcn Operating Loss Carried Forward2034 To2037
OperatingLossCarriedForward2034To2037
217937 usd
CY2022Q3 nwcn Operating Loss Carried Forward Indefinitely
OperatingLossCarriedForwardIndefinitely
147990 usd
CY2022Q3 us-gaap Deferred Tax Assets Gross
DeferredTaxAssetsGross
3537450 usd
CY2022Q3 us-gaap Deferred Tax Assets Gross
DeferredTaxAssetsGross
3537450 usd
CY2021Q4 us-gaap Deferred Tax Assets Gross
DeferredTaxAssetsGross
3496482 usd
CY2022Q3 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
3537450 usd
CY2021Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
3496482 usd
CY2021Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
3496482 usd
CY2020Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
3443596 usd
us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
40967 usd
us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
52886 usd
CY2022Q3 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
3537450 usd
CY2021Q3 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
3496482 usd

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