NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September
30, 2020
(Unaudited)
NOTE
1 - ORGANIZATION AND BUSINESS OPERATIONS
Organization
and Description of Business
AllyMe
Group Inc. (“AllyMe US”, the “Company”, “we” or “us”) was incorporated under the
laws of the State of Nevada on August 13, 2014 (“Inception”) and has adopted a December 31 fiscal year end. The Company
provides consulting services in China principally focused on the business, marketing, financial consultancy and business modeling
design and support.
The
outbreak of COVID19 coronavirus in China and in US starting from the beginning of 2020 has resulted reduction of working hours
for the Company. The Company followed the restrictive measures implemented in China, by suspending operation and having employees’
work remotely during February and March 2020. The Company gradually resumed operation and production starting in April 2020. Other
financial impact could occur though such potential impact is unknown at this time.
NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Interim
Financial Statements
The
accompanying unaudited condensed interim financial statements and related notes have been prepared in accordance with accounting
principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and
in accordance with the rules and regulations of the United States Securities and Exchange Commission with respect to Form 10-Q
and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for
complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal
recurring adjustments) that are, in the opinion of management, necessary for a fair statement of the results for the interim periods
presented. Interim results are not necessarily indicative of the results for the full year. These unaudited interim financial
statements should be read in conjunction with the audited financial statements of the Company for the year ended December 31,
2019.
Basis
of Presentation
The
financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United
States of America and are presented in US dollars. The Company’s year-end is December 31.
Basis
of consolidation
In
the opinion of management, the unaudited interim consolidated financial statements reflect all adjustments of a normal recurring
nature that are necessary for a fair presentation of the results for the interim periods presented. All significant intercompany
transactions and balances are eliminated in consolidation. However, the results of operations included in such financial statements
may not necessary be indicative of annual results.
The
Company uses the same accounting policies in preparing quarterly and annual financial statements. Certain information and footnote
disclosures normally included in the annual consolidated financial statements prepared in accordance with accounting principles
generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. These unaudited consolidated
financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes
thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 filed with the Securities
and Exchange Commission (“SEC”) on June 18, 2020 “2019 Form 10-K.”
Use
of Estimates
The
preparation of financial statements in conformity with accounting principles generally accepted in the U.S. GAAP requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
Non-controlling
interests
Non-controlling
interests represents the individual shareholder’s proportionate share of 49% of equity interest in AllyMe and its 100% owned
subsidiary, China Info.
Cash
Cash
includes cash on hand and on deposit at banking institutions as well as all liquid short-term investments with original maturities
of 90 days or less. The Company’s cash held in bank accounts in the PRC amounted to $277,159 and $416,810 as of September
30, 2020 and December 31, 2019 respectively and is not protected by FDIC insurance or any other similar insurance. The Company’s
bank account in the United States amounted to $6,106 and $1,419 and is protected by FDIC insurance up to $250,000.
Revenue
The
Company adopted Accounting Standards Codification (“ASC”) 606. ASC 606, Revenue from Contracts with Customers, establishes
principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the
entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue
to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled
to receive in exchange for those goods or services recognized as performance obligations are satisfied.
The
Company has assessed the impact of the guidance by performing the following five steps analysis:
Step
1: Identify the contract
Step
2: Identify the performance obligations
Step
3: Determine the transaction price
Step
4: Allocate the transaction price
Step
5: Recognize revenue
The
Company generated revenue from consulting services. The Company provides consulting services in China principally focused on the
business, marketing, financial consultancy and business modeling design and support. The Company primarily enters into arrangements
for these services under fixed-price contracts. Revenues under fixed-price contracts are recognized upon delivery of services.
The Company recognizes revenue when the Company has the right to invoice the customer using the allowable practical expedient
under ASC 606-10-55-18 since the right to invoice the customer corresponds with the performance obligations completed. Revenue
is recognized when obligations under the terms of a contract with the Company’s customers are satisfied. Satisfaction of
contract terms occurs when services are performed, and the customers assume risk of loss. The amount of consideration the Company
expects to receive consists of the sales price adjusted for any incentives if applicable. In applying judgment, the Company considered
customer expectations of performance, materiality and the core principles of ASC Topic 606. The Company’s performance obligations
are generally transferred to the customer at a point in time. The Company’s contracts with customers generally do not include
any variable consideration.
Recent
accounting pronouncements
The
Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined
that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine
the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that
the Company’s financials properly reflect the change. The Company currently does not have any recent accounting pronouncements
that they are studying and feel may be applicable.
NOTE
3 – LOAN RECEIVABLE FROM A RELATED PARTY
Loan
receivable from a related party Shenzhen Fenglian Financial Services Co., Ltd (“Shenzhen Fenglian”) amounted to $78,502
and $76,561 as of September 30, 2020 and December 31, 2019, respectively. The Company’s major shareholder Zilin Wang is
also a major shareholder of Shenzhen Fenglian. In 2019, Shenzhen Fenglian signed three agreements with the Company. Shenzhen Fenglian
manages money transferred from the Company. The Company and Shenzhen Fenglian should share any interest income on a 50% and 50%
ratio. Loan receivable from a related party are interest free, without collateral, and due on demand.
NOTE
4 - CUSTOMER DEPOSIT
Customer
deposit amounted to $0 and $507,114 as of September 30, 2020 and December 31, 2019, respectively. Customer deposit represents
amount received from customers for services not rendered yet. The services have been provided as of September 30, 2020.
NOTE
5 – LOAN FROM AN UNRELATED PARTY
Loan
from an unrelated party amounted to $2,946 and $2,873 as of September 30, 2020 and December 31, 2019, respectively. Loan from
an unrelated party are interest free, without collateral, and due on demand.
NOTE
6 - RELATED PARTY TRANSACTIONS
Due
to a related party
In
support of the Company’s efforts and cash requirements, it may rely on advances from related parties until such time that
the Company can support its operations or attain adequate financing through sales of its equity or traditional debt financing.
There is no formal written commitment for continued support by shareholders. Amounts represent advances or amounts paid in satisfaction
of liabilities. The advances are considered temporary in nature and have not been formalized by a promissory note.
As
of September 30, 2020 and December 31, 2019, the amounts outstanding were $85,108 and $92,152. The advances were non-interest
bearing, due upon demand and unsecured from Zilin Wang, a shareholder of the Company.
Lease
with a related party
The
Company has entered into a car operating leases agreement with Zilin Wang, a shareholder of the Company. The lease requires a
payment of $42,615 (RMB 298,000) on July 1, 2020 and requires monthly payment of $283 (RMB 1980) from July 1, 2020 to June 30,
2023. If lessee fails to pay insurance for the car, the monthly lease will be increased to $426 (RMB 2,980). The Company has option
to renew. The operating lease is listed as separate line item on the Company’s condensed consolidated financial statements
and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make
lease payments are also listed as a separate line item on the Company’s condensed consolidated financial statements.
Operating
lease right-of-use assets and liabilities commencing after July 1, 2020 are recognized at commencement date based on the present
value of lease payments over the lease term. For the nine months ended September 30, 2020, the Company recognized approximately
$4,401 in total lease costs.
Because
the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the
present value of the lease payments.
Information
related to the Company’s operating ROU assets and related lease liabilities are as follows:
|
|
Nine
Months Ended
September
30, 2020
|
|
Cash paid for operating
lease liabilities
|
|
$
|
43,465
|
|
Weighted-average remaining lease term
|
|
|
2.75
|
|
Weighted-average discount rate
|
|
|
5
|
%
|
Minimum future lease payments
|
|
$
|
8,719
|
|
The
following table presents the amortization of the Company’s lease liabilities under ASC 842 for each of the following years
ending September 30:
2020
|
|
$
|
744
|
|
2021
|
|
|
3,071
|
|
2022
|
|
|
3,228
|
|
2023
|
|
|
1,676
|
|
2024 and thereafter
|
|
|
–
|
|
Total
|
|
$
|
8,719
|
|
NOTE
7 - STOCKHOLDERS’ EQUITY (DEFICIT)
The
Company is authorized to issue 75,000,000 shares of common stock with a par value of $0.001 and 10,000,000 shares of preferred
stock with a par value of $0.001. There is no preferred stock issued and outstanding as of September 30, 2020.
In
January 2019, the Company received a deposit for 1,000 shares of common stock at $1.10 per share for total of $1,100 from 1 unrelated
party. These shares have been issued in 2019.
In
May 2019, the Company received a deposit for 2,798 shares of common stock at $1.10 per share for total of $3,078 from 2 unrelated
parties. These shares have been issued in May 2020.
NOTE
8 – REVENUE
The
Company entered into two service agreements with an unrelated party (“the client”). The Company provides the following
services: 1 assists the client selecting, purchasing and merging with an OTC shell company 2 assist the client opening bank account
in US 3 assist the client issuing new shares and registering with registered state and SEC 4 assist the client completing name
change 5 provide advice of applying to be listed on Nasdaq. All performance obligations were satisfied as above services were
rendered during the nine months ended September 30, 2020.
NOTE
9 – LEASE
The
Company has entered into a operating leases agreement with Shenzhen Haina Jiuzhou Industry Co., Ltd. The lease term of the office
space is from March 6, 2020 to March 6, 2021. The current monthly rent including monthly management fee is approximately $1,853
(RMB 12,582). The Company has option to renew. The operating lease is listed as separate line item on the Company’s condensed
consolidated financial statements and represent the Company’s right to use the underlying asset for the lease term. The
Company’s obligation to make lease payments are also listed as a separate line item on the Company’s condensed consolidated
financial statements.
Operating
lease right-of-use assets and liabilities commencing after March 6, 2020 are recognized at commencement date based on the present
value of lease payments over the lease term. For the nine months ended September 30, 2020, the Company recognized approximately
$12,595 in total lease costs.
Because
the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the
present value of the lease payments.
Information
related to the Company’s operating ROU assets and related lease liabilities are as follows:
|
|
Nine
Months Ended
September
30, 2020
|
|
Cash paid for operating
lease liabilities
|
|
$
|
12,595
|
|
Weighted-average remaining lease term
|
|
|
0.42
|
|
Weighted-average discount rate
|
|
|
5
|
%
|
Minimum future lease payments
|
|
$
|
9,152
|
|
The
following table presents the amortization of the Company’s lease liabilities under ASC 842 for each of the following years
ending September 30:
2020
|
|
$
|
5,468
|
|
2021
|
|
|
3,684
|
|
2022
|
|
|
-
|
|
2023
|
|
|
-
|
|
2024 and thereafter
|
|
|
–
|
|
Total
|
|
$
|
9,152
|
|
NOTE
10 – SUBSEQUENT EVENTS
In
accordance with ASC 855-10, the Company has analyzed its operations subsequent to September 30, 2020 to the date these financial
statements were issued and has determined that it does not have any material subsequent events to disclose in these financial
statements.