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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the Quarterly Period Ended September 30, 2023

 

or

 

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from _________ to _________

 

Commission File Number 001-38308

 

Greenpro Capital Corp.

(Exact name of registrant issuer as specified in its charter)

 

Nevada   98-1146821

(State or other jurisdiction of

incorporation or organization)

  

(I.R.S. Employer

Identification No.)

 

B-23A-02, G-Vestor Tower,

Pavilion Embassy, 200 Jalan Ampang,

50450 W.P. Kuala Lumpur, Malaysia

(Address of principal executive offices, including zip code)

 

Registrant’s phone number, including area code (603) 8408 - 1788

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class   Trading Symbol(s)   Name of Each Exchange on Which Registered
Common Stock, $0.0001 par value   GRNQ   NASDAQ Capital Market

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

 

Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding twelve months (or shorter period that the registrant was required to submit and post such files).

 

Yes ☒ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” or an “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large Accelerated Filer ☐ Accelerated Filer ☐
Non-accelerated Filer ☒ Smaller reporting company ☒
  Emerging Growth Company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

 

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

 

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ☐ No ☐

 

APPLICABLE ONLY TO CORPORATE ISSUERS:

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

 

As of November 13, 2023, there were 7,575,813 shares of the registrant’s Common Stock, par value $0.0001, issued and outstanding.

 

 

 

 
 

 

TABLE OF CONTENTS

 

    Page
     
PART I FINANCIAL INFORMATION 3
     
ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS: 3
     
  Condensed Consolidated Balance Sheets - September 30, 2023 (Unaudited) and December 31, 2022 3
     
  Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - Three and Nine Months Ended September 30, 2023 and 2022 4
     
  Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) - Three and Nine Months Ended September 30, 2023 and 2022 5
     
  Condensed Consolidated Statements of Cash Flows (Unaudited) - Nine Months Ended September 30, 2023 and 2022 6
     
  Notes to Condensed Consolidated Financial Statements (Unaudited) - Nine Months Ended September 30, 2023 and 2022 7
     
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 24
     
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 31
     
ITEM 4. CONTROLS AND PROCEDURES 31
     
PART II OTHER INFORMATION 32
     
ITEM 1 LEGAL PROCEEDINGS 32
     
ITEM 2 UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 32
     
ITEM 3 DEFAULTS UPON SENIOR SECURITIES 32
     
ITEM 4 MINE SAFETY DISCLOSURES 32
     
ITEM 5 OTHER INFORMATION 32
     
ITEM 6 EXHIBITS 32
     
SIGNATURES 33

 

2
 

 

PART I – FINANCIAL INFORMATION

 

Item 1. Condensed Consolidated Financial Statements.

 

GREENPRO CAPITAL CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF SEPTEMBER 30, 2023 AND DECEMBER 31, 2022

(In U.S. dollars, except share and per share data)

 

   September 30, 2023   December 31, 2022 
   (Unaudited)   (Audited) 
ASSETS          
Current assets:          
Cash and cash equivalents (including $63,847 and $38,466 of restricted cash as of September 30, 2023 and December 31, 2022, respectively)  $2,559,285   $3,911,535 
Accounts receivable, net of allowance of $24,534 and $25,677 as of September 30, 2023 and December 31, 2022, respectively (including $308,621 and $129,292 of net accounts receivable from related parties as of September 30, 2023 and December 31, 2022, respectively)   406,031    169,537 
Prepaids and other current assets (including $120,000 and $80,000 of deposit paid to a related party as of September 30, 2023 and December 31, 2022, respectively)   700,221    773,040 
Due from related parties   719,776    265,772 
Deferred cost of revenue (including $0 and $11,640 to a related party as of September 30, 2023 and December 31, 2022, respectively)   83,479    168,605 
Total current assets   4,468,792    5,288,489 
           
Property and equipment, net   2,308,702    2,513,567 
Real estate investments:          
Real estate held for sale   1,659,207    1,659,207 
Real estate held for investment, net   589,776    650,223 
Intangible assets, net   1,357    1,900 
Goodwill   82,561    82,561 
Other investments (including $5,082,106 and $5,406,106 of investments in related parties as of September 30, 2023 and December 31, 2022, respectively)   5,082,106    5,406,106 
Operating lease right-of-use assets, net   137,252    17,510 
Finance lease right-of-use asset, net   26,363    - 
Other non-current assets   -    19,643 
TOTAL ASSETS  $14,356,116   $15,639,206 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Current liabilities:          
Accounts payable and accrued liabilities  $625,523   $758,909 
Due to related parties   436,578    448,251 
Income tax payable   2,890    858 
Operating lease liabilities, current portion   93,515    18,725 
Finance lease liabilities, current portion   3,292    - 
Deferred revenue (including $236,800 and $849,400 from related parties as of September 30, 2023 and December 31, 2022, respectively)   1,340,911    1,834,244 
Derivative liabilities   -    1 
Total current liabilities   2,502,709    3,060,988 
           
Operating lease liabilities, non-current portion   43,737    - 
Finance lease liabilities, non-current portion   14,190    - 
Total liabilities   2,560,636    3,060,988 
           
Commitments and contingencies   -    - 
           
Stockholders’ equity:          
Preferred stock, $0.0001 par value; 100,000,000 shares authorized; no shares issued and outstanding   -    - 
Common Stock, $0.0001 par value; 500,000,000 shares authorized; 7,575,813 and 7,875,813 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively   7,576    7,876 
Additional paid in capital   42,897,029    50,102,729 
Accumulated other comprehensive loss   (365,087)   (224,891)
Accumulated deficit   (31,041,402)   (37,622,680)
Total Greenpro Capital Corp. stockholders’ equity   11,498,116    12,263,034 
Non-controlling interest in a consolidated subsidiary   297,364    315,184 
           
Total stockholders’ equity   11,795,480    12,578,218 
           
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY  $14,356,116   $15,639,206 

 

See accompanying notes to the condensed consolidated financial statements.

 

3
 

 

GREENPRO CAPITAL CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022

(In U.S. dollars, except share and per share data)

(Unaudited)

 

   2023   2022   2023   2022 
   Three months ended September 30,   Nine months ended September 30, 
   2023   2022   2023   2022 
                 
REVENUES:                    
Service revenue (including $648,377 and $41,431 of service revenue from related parties for the three months ended September 30, 2023, and 2022, respectively, and $1,232,526 and $548,602 of service revenue from related parties for the nine months ended September 30, 2023, and 2022, respectively)  $1,043,360   $628,295   $2,239,354   $1,760,880 
Sale of real estate properties   -    652,788    -    839,661 
Rental revenue   27,612    25,356    70,238    89,686 
Total revenue   1,070,972    1,306,439    2,309,592    2,690,227 
                     
COST OF REVENUES:                    
Cost of service revenue (including $23,280 and $0 of cost of service revenue to related party for the three months ended September 30, 2023 and 2022, respectively, and $23,280 and $0 of cost of service revenue to related party for the nine months ended September 30, 2023 and 2022, respectively)   (219,865)   (103,093)   (374,048)   (239,437)
Cost of real estate properties sold   -    (445,746)   -    (573,087)
Cost of rental revenue   (9,629)   (10,489)   (28,315)   (33,189)
Total cost of revenues   (229,494)   (559,328)   (402,363)   (845,713)
                     
GROSS PROFIT   841,478    747,111    1,907,229    1,844,514 
                     
OPERATING EXPENSES:                    
General and administrative (including $13,687 and $17,461 of general and administrative expense to related parties for the three months ended September 30, 2023, and 2022, respectively, and $90,407 and $53,689 of general and administrative expense to related parties for the nine months ended September 30, 2023 and 2022, respectively)   (978,023)   (977,457)   (2,686,846)   (2,910,231)
                     
LOSS FROM OPERATIONS   (136,545)   (230,346)   (779,617)   (1,065,717)
                     
OTHER INCOME (EXPENSES):                    
Other income (including $3,425 and $1,123 of other income from related parties for the three months ended September 30, 2023, and 2022, respectively, and $10,158 and $1,123 of other income from related parties for the nine months ended September 30, 2023, and 2022, respectively)   9,953    15,297    37,207    90,993 
Interest income   8,853    7,865    30,859    11,441 
Fair value gains of derivative liabilities associated with warrants   -    479    1    9,884 
(Impairment) reversal of impairment of other investment (including reversal of impairment of $0 and impairment of $246,100 of related party investment for the three months ended September 30, 2023 and 2022, respectively, and reversal of impairment of $6,882,000 and impairment of $1,459,900 of related party investment for the nine months ended September 30, 2023 and 2022, respectively)   -    (246,100)   6,882,000    (1,459,900)
Reversal of write-off notes receivable   -    -    400,000    - 
Interest expense   (318)   -    (429)   - 
Total other income (expenses)   18,488    (222,459)   7,349,638    (1,347,582)
                     
(LOSS) INCOME BEFORE INCOME TAX   (118,057)   (452,805)   6,570,021    (2,413,299)
Income tax expense   (2,937)   -    (6,563)   (1,536)
NET (LOSS) INCOME   (120,994)   (452,805)   6,563,458    (2,414,835)
Net loss (income) attributable to non-controlling interest   3,865    (78,675)   17,820    (96,107)
                     
NET (LOSS) INCOME ATTRIBUTED TO COMMON SHAREHOLDERS OF GREENPRO CAPITAL CORP.   (117,129)   (531,480)   6,581,278    (2,510,942)
Other comprehensive loss:                    
- Foreign currency translation loss   (8,407)   (143,440)   (140,196)   (295,309)
COMPREHENSIVE (LOSS) INCOME  $(125,536)  $(674,920)  $6,441,082   $(2,806,251)
                     
NET (LOSS) INCOME PER SHARE, BASIC AND DILUTED (1)  $(0.02)  $(0.07)  $0.85   $(0.32)
                     
WEIGHTED AVERAGE NUMBER OF COMMON STOCK OUTSTANDING, BASIC AND DILUTED (1)   7,575,813    7,873,276    7,764,032    7,868,708 

 

(1) Weighted average shares outstanding and per share amounts have been adjusted for the periods shown to reflect the 10-for-1 reverse stock split effected on July 28, 2022 on a retroactive basis as described in Note 1.

 

See accompanying notes to the condensed consolidated financial statements.

 

4
 

 

GREENPRO CAPITAL CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022

(In U.S. dollars, except share data)

(Unaudited)

 

  

Number of

Shares

   Amount  

Additional
Paid-in

Capital

  

Accumulated
Other
Comprehensive

Loss

  

Accumulated

Deficit

  

 

Non-
Controlling

Interest

  

Total
Stockholders’

Equity

 
   Three months ended September 30, 2023 (Unaudited) 
   Common Stock                 
  

Number of

Shares

   Amount  

Additional
Paid-in

Capital

  

Accumulated
Other
Comprehensive

Loss

  

Accumulated

Deficit

  

 

Non-
Controlling

Interest

  

Total
Stockholders’

Equity

 
Balance as of June 30, 2023 (Unaudited)   7,575,813   $7,576   $42,897,029   $(356,680)  $(30,924,273)  $301,229   $11,924,881 
Foreign currency translation   -    -    -    (8,407)   -    -    (8,407)
Net loss   -    -    -    -    (117,129)   (3,865)   (120,994)
Balance as of September 30, 2023 (Unaudited)   7,575,813   $7,576   $42,897,029   $(365,087)  $(31,041,402)  $297,364   $11,795,480 

 

Nine months ended September 30, 2023 (Unaudited)
   Common Stock      Accumulated            
  

Number of

Shares

   Amount  

Additional
Paid-in

Capital

  

Other
Comprehensive

Loss

  

Accumulated

Deficit

  

Non-
Controlling

Interest

  

Total
Stockholders’

Equity

 
Balance as of December 31, 2022   7,875,813   $7,876   $50,102,729   $(224,891)  $(37,622,680)  $315,184   $12,578,218 
Cancellation of shares resulting from termination of investment   (300,000)   (300)   (7,205,700)   -    -    -    (7,206,000)
Foreign currency translation   -    -    -    (140,196)   -    -    (140,196)
Net income (loss)   -    -    -    -    6,581,278    (17,820)   6,563,458 
Balance as of September 30, 2023 (Unaudited)   7,575,813   $7,576   $42,897,029   $(365,087)  $(31,041,402)  $297,364   $11,795,480 

 

Three months ended September 30, 2022 (Unaudited)
   Common Stock (1)      Accumulated            
  

Number of

shares

  

 

Amount

  

Additional
Paid-in

Capital

  

Other
Comprehensive

Loss

  

Accumulated

Deficit

  

Non-
Controlling

Interest

  

Total
Stockholders’

Equity

 
Balance as of June 30, 2022 (Unaudited)   7,867,169   $7,867   $50,102,738   $(178,732)  $(33,251,270)  $243,932   $16,924,535 
Roundup of fractional shares upon reverse stock split   8,644    9    (9)   -    -    -    - 
Foreign currency translation   -    -    -    (143,440)   -    -    (143,440)
Net (loss) income   -    -    -    -    (531,480)   78,675    (452,805)
Balance as of September 30, 2022 (Unaudited)   7,875,813   $7,876   $50,102,729   $(322,172)  $(33,782,750)  $322,607   $16,328,290 

 

Nine months ended September 30, 2022 (Unaudited)
   Common Stock (1)      Accumulated            
  

Number of
shares

  

 

Amount

  

Additional
Paid-in

Capital

   Other

Comprehensive

Loss

  

Accumulated

Deficit

  

Non-
Controlling

Interest

  

Total
Stockholders’

Equity

 
Balance as of December 31, 2021   7,867,169   $7,867   $50,102,738   $(26,863)  $(31,271,808)  $226,500   $19,038,434 
Roundup of fractional shares upon reverse stock split   8,644    9    (9)   -    -    -    - 
Foreign currency translation   -    -    -    (295,309)   -    -    (295,309)
Net (loss) income   -    -    -    -    (2,510,942)   96,107    (2,414,835)
Balance as of September 30, 2022 (Unaudited)   7,875,813   $7,876   $50,102,729   $(322,172)  $(33,782,750)  $322,607   $16,328,290 

 

(1) Share activity (number of shares or both number and amount of shares) has been adjusted for the periods shown to reflect the 10-for-1 reverse stock split effected on July 28, 2022 on a retroactive basis as described in Note 1.

 

See accompanying notes to the condensed consolidated financial statements.

 

5
 

 

GREENPRO CAPITAL CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022

(In U.S. dollars)

(Unaudited)

 

   2023   2022 
   Nine months ended September 30, 
   2023   2022 
         
Cash flows from operating activities:          
Net income (loss)  $6,563,458   $(2,414,835)
Adjustments to reconcile net income (loss) to net cash used in operating activities:          
Depreciation and amortization   107,827    119,084 
Amortization of right-of-use assets   66,617    62,110 
Amortization of finance lease right-of-use asset   1,950    - 
Reversal of write-off notes receivable   (400,000)   - 
(Reversal of impairment) impairment of other investment-related party   (6,882,000)   1,459,900 
Loss on forfeiture of other investment   -    1,650 
Provision for bad debts   -    784 
Gain on sale of real estate held for sale   -    (266,574)
Fair value gains of derivative liabilities associated with warrants   (1)   (9,884)
Changes in operating assets and liabilities:          
Accounts receivable, net   (236,494)   (39,411)
Prepaids and other current assets   92,462    (625,718)
Deferred cost of revenue   85,126    (82,424)
Accounts payable and accrued liabilities   (133,386)   (429,321)
Operating lease liabilities   (67,832)   (66,597)
Income tax payable   2,032    (2,342)
Deferred revenue   (493,333)   136,198 
Net cash used in operating activities   (1,293,574)   (2,157,380)
           
Cash flows from investing activities:          
Purchase of property and equipment   (4,993)   (2,244)
Proceeds from disposal of other investment   500    - 
Purchase of other investments   (500)   (1,250)
Initial payment of finance lease right-of-use asset   (9,717)   - 
Proceeds from real estate held for sale   -    839,661 
Net cash (used in) provided by investing activities   (14,710)   836,167 
           
Cash flows from financing activities:          
Principal payment of finance lease liabilities   (1,086)   - 
Advances to related parties   (465,677)   (416,382)
Collection of notes receivable   400,000    - 
Net cash used in financing activities   (66,763)   (416,382)
           
Effect of exchange rate changes in cash and cash equivalents   22,797    45,190 
NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH   (1,352,250)   (1,692,405)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD   3,911,535    5,338,571 
           
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD  $2,559,285   $3,646,166 
           
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:          
Cash paid for income tax  $4,423   $3,495 
Cash paid for interest  $429   $- 
           
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES:          
Balance payment of finance lease right-of-use asset by finance lease liabilities  $18,530   $- 

 

See accompanying notes to the condensed consolidated financial statements.

 

6
 

 

GREENPRO CAPITAL CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022

(In U.S. dollars, except share and per share data)

(Unaudited)

 

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Greenpro Capital Corp. (the “Company” or “GRNQ”) was incorporated on July 19, 2013 in the state of Nevada. The Company currently provides a wide range of business consulting and corporate advisory services, including cross-border listing advisory services, tax planning, advisory and transaction services, record management services, and accounting outsourcing services. Our focus is on companies located in Asia and Southeast Asia, including Hong Kong, Malaysia, China, Thailand, and Singapore. As part of our business consulting and corporate advisory business segment, Greenpro Venture Capital Limited provides a business incubator for start-up companies and focuses on investments in select start-up and high growth potential companies. In addition to our business consulting and corporate advisory business segment, we operate another business segment that focuses on the acquisition and rental of real estate properties held for investment and the acquisition and sale of real estate properties held for sale.

 

Basis of presentation and principles of consolidation

 

The accompanying unaudited condensed consolidated financial statements as of and for the nine months ended September 30, 2023 and 2022 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) that permit reduced disclosure for interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the period ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. The Condensed Consolidated Balance Sheet information as of December 31, 2022 was derived from the Company’s audited Consolidated Financial Statements as of and for the year ended December 31, 2022 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 31, 2023. These financial statements should be read in conjunction with that report.

 

The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries and majority-owned subsidiaries which the Company controls and entities for which the Company is the primary beneficiary. For those consolidated subsidiaries where the Company’s ownership is less than 100%, the outside shareholders’ interests are shown as noncontrolling interests in equity. Acquired businesses are included in the consolidated financial statements from the date on which control is transferred to the Company. Subsidiaries are deconsolidated from the date that control ceases. All inter-company accounts and transactions have been eliminated in consolidation.

 

Going concern

 

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. During the nine months ended September 30, 2023, the Company recorded net cash used in operations of $1,293,574, and as of September 30, 2023, the Company incurred accumulated deficit of $31,041,402. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date that the financial statements are issued. In addition, the Company’s independent registered public accounting firm, in its report on the Company’s December 31, 2022 financial statements, has expressed substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

The Company’s ability to continue as a going concern is dependent upon profitable future operations, positive cash flows and additional financing. Despite the amount of funds that we have raised in the past, no assurance can be given that any future financing, if needed, will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, if needed, it may contain undue restrictions on its operations, in the case of debt financing, or cause substantial dilution for its stockholders, in the case of equity financing.

 

7
 

 

Certain effects of reverse stock split

 

On July 19, 2022, the Company filed a Certificate of Change with the Secretary of State of the State of Nevada (the “Certificate of Change”) to effect a reverse split of the Company’s Common Stock at a ratio of 10-for-1 (the “Reverse Stock Split”), effective as of July 28, 2022. On that date, every 10 issued and outstanding shares of the Company’s Common Stock were automatically converted into one outstanding share of Common Stock. As a result of the Reverse Stock Split, the number of the outstanding shares of Common Stock decreased from 78,671,688 (pre-split) shares to 7,875,813 (post-split) shares. In addition, by reducing the number of outstanding shares, the Company’s loss per share in all prior periods increased by a factor of 10. The Reverse Stock Split affected all shares of Common Stock outstanding immediately prior to the effective time of the Reverse Stock Split. In addition, the Reverse Stock Split effected a reduction in the number of shares of Common Stock issuable upon the exercise of the warrants outstanding immediately prior to the effectiveness of the Reverse Stock Split, resulting in a reduction from 53,556 (pre-split) shares to 5,356 (post-split) shares (see Note 6).

 

No fractional shares are issued in connection with the Reverse Stock Split. Stockholders who otherwise would be entitled to receive fractional shares because they hold a number of pre-reverse stock split shares of the Company’s Common Stock not evenly divisible by 10, in lieu of a fractional share, are entitled the number of shares rounded up to the nearest whole share. The Company will issue one whole share of the post-Reverse Stock Split Common Stock to any stockholder who otherwise would have received a fractional share as a result of the Reverse Stock Split.

 

The Reverse Stock Split affected all holders of Common Stock uniformly and did not affect any stockholder’s percentage of ownership interest. The par value of the Company’s Common Stock remained unchanged at $0.0001 per share and the number of authorized shares of Common Stock remained the same after the Reverse Stock Split.

 

As the par value per share of the Company’s Common Stock remained unchanged at $0.0001 per share, the change in the Common Stock recorded at par value has been reclassified to additional paid-in-capital on a retroactive basis. All references to shares of Common Stock and per share data for all periods presented in the accompanying condensed consolidated financial statements and notes thereto have been adjusted to reflect the Reverse Stock Split on a retroactive basis.

 

8
 

 

COVID-19 pandemic and other global risks

 

As a result of the COVID-19 pandemic and actions taken to slow its spread, the ongoing military conflict between Russia and Ukraine, the armed conflict in Sudan, and other geopolitical and macroeconomic factors beyond our control, the global credit and financial markets have experienced extreme volatility, including diminished liquidity and credit availability, declines in consumer confidence, declines in economic growth, increases in unemployment rates and uncertainty about economic stability.

 

On March 10, 2023, the Federal Deposit Insurance Corporation took control and was appointed receiver of Silicon Valley Bank. While we did not have deposits at Silicon Valley Bank, if other banks and financial institutions enter receivership or become insolvent in the future in response to financial conditions affecting the banking system and financial markets, our ability to access our existing cash, cash equivalents and investments may be threatened and could have a material adverse effect on our business and financial condition. It is possible that further deterioration in credit and financial markets and confidence in economic conditions will occur. If equity and credit markets deteriorate, it may affect our ability to raise equity capital, borrow on our existing facilities, access our existing cash, or make any additional necessary debt or equity financing more difficult to obtain, more costly and/or more dilutive.

 

Use of estimates

 

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant accounting estimates include certain assumptions related to, among others, the allowance for doubtful accounts receivable, impairment analysis of real estate assets and other long-term assets including goodwill, valuation allowance on deferred income taxes, the assumptions used in the valuation of the derivative liabilities, and the accrual of potential liabilities. Actual results may differ from these estimates.

 

9
 

 

Cash, cash equivalents, and restricted cash

 

Cash consists of funds on hand and held in bank accounts. Cash equivalents includes demand deposits placed with banks or other financial institutions and all highly liquid investments with original maturities of three months or less, including money market funds. Restricted cash represents cash restricted for the loan collateral requirements as defined in a loan agreement and the minimum paid-up share capital requirement for insurance brokers specified under the Insurance Ordinance of Hong Kong.

 

As of September 30, 2023 and December 31, 2022, cash included funds held by employees of $11,767 and $11,464, respectively, and was held to facilitate payment of expenses in local currencies and to facilitate third-party online payment platforms in which the Company had not set up corporate accounts (WeChat Pay and Alipay).

 

   As of
September 30, 2023		   As of
December 31, 2022		 
   (Unaudited)   (Audited) 
Cash, cash equivalents, and restricted cash          
Denominated in United States Dollar  $881,058   $2,234,242 
Denominated in Hong Kong Dollar   1,358,743    1,201,076 
Denominated in Chinese Renminbi   268,614    381,012 
Denominated in Malaysian Ringgit   50,744    85,940 
Denominated in Euro   -    9,200 
Denominated in Singapore Dollar   4    65 
Denominated in Great British Pound   122    - 
Cash, cash equivalents, and restricted cash  $2,559,285   $3,911,535 

 

Revenue recognition

 

The Company follows the guidance of Accounting Standards Codification (ASC) 606, Revenue from Contracts. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying the contracts or agreements with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients (see Note 2).

 

10
 

 

Investments

 

Investments in equity securities

 

The Company accounts for its investments that represent less than 20% ownership, and for which the Company does not have the ability to exercise significant influence, using ASU 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The Company measure investments in equity securities without a readily determinable fair value using a measurement alternative that measures these securities at the cost method minus impairment, if any, plus or minus changes resulting from observable price changes on a non-recurring basis. Gains and losses on these securities are recognized in other income and expenses.

 

On May 18, 2023, the Company decided to terminate its investment in the Fund due to significant impairments suffered since subscription and to cancel the shares issued to the Fund due to the Fund’s failure to provide consideration for the shares. As a result, 300,000 shares of the Company’s restricted Common Stock were cancelled, the value of Common Stock of $300 and the value of additional paid-in capital of $7,205,700, in aggregate of $7,206,000, were reversed accordingly. The Company recorded a reversal of impairment of other investment of $6,882,000 during the nine-month period ended September 30, 2023.

 

On September 30, 2023, the Company had total twenty-five (25) investments in equity securities without readily determinable fair values, all were related party investments with aggregate value of $5,082,106. In which, ten (10) investments in equity securities without readily determinable fair values were also related party investments, all were fully impaired and with $nil value (see Note 3).

 

On December 31, 2022, the Company had total twenty-seven (27) investments in equity securities without readily determinable fair values, all were related party investments with aggregate value of $5,406,106. In which, eleven (11) investments in equity securities without readily determinable fair values were also related party investments, all were fully impaired and with $nil value (see Note 3).

 

Leases

 

The Company determines if a contract is or contains a lease at inception of the contract or modification of the contract. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. Control over the use of the identified asset means the lessee has both (a) the right to obtain substantially all of the economic benefits from the use of the asset and (b) the right to direct the use of the asset.

 

Finance and operating lease right-of-use (“ROU”) assets and liabilities are recognized based on the present value of future minimum lease payments over the expected lease term at commencement date. As the implicit rate is not determinable in most of the Company’s leases, management uses the Company’s incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The expected lease term includes options to extend or terminate the lease when it is reasonably certain the Company will exercise such option. Lease expense for minimum lease payments is recognized on a straight-line basis over the expected lease term.

 

The Company’s lease arrangements have lease and non-lease components. Leases with an expected term of 12 months or less are not accounted for on the balance sheet and the related lease expense is recognized on a straight-line basis over the expected lease term.

 

The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

 

See Note 4 for more information regarding leases.

 

Derivative financial instruments

 

Derivative financial instruments consist of financial instruments that contain a notional amount and one or more underlying variables such as interest rate, security price, variable conversion rate or other variables, require no initial net investment and permit net settlement. The derivative financial instruments may be free-standing or embedded in other financial instruments. The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. The Company follows the provision of ASC 815, Derivatives and Hedging for derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. At each reporting date, the Company reviews its convertible securities to determine that their classification is appropriate.

 

Net income (loss) per share

 

Basic income (loss) per share is computed by dividing the net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is calculated by dividing the net income (loss) by the weighted average number of common shares outstanding during the period plus any potentially dilutive shares related to the issuance of shares from stock warrants. For the nine months ended September 30, 2023, there were no dilutive shares outstanding, while for the nine months ended September 30, 2022, the only outstanding Common Stock equivalents were warrants for 5,356 potentially dilutive shares outstanding. These warrants have been excluded from the calculation of weighted average shares as the effect would have been anti-dilutive and therefore, basic and diluted net income (loss) per share were the same.

 

11
 

 

Foreign currency translation

 

The consolidated financial statements are presented in United States Dollar (“US$”), which is the functional and reporting currency of the Company. In addition, the Company’s operating subsidiaries maintain their books and records in their respective functional currency, which consists of the Malaysian Ringgit (“MYR”), Chinese Renminbi (“RMB”) and Hong Kong Dollar (“HK$”).

 

In general, for consolidation purposes, assets and liabilities of the Company’s subsidiaries whose functional currency is not the US$, are translated into US$ using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of a foreign subsidiary are recorded as a separate component of accumulated other comprehensive income or loss within stockholders’ equity.

 

Translation of amounts from the local currencies of the Company into US$ has been made at the following exchange rates for the respective periods:

 

   2023   2022 
   As of and for the nine months ended
September 30,		 
   2023   2022 
Period-end MYR : US$1 exchange rate   4.70    4.64 
Period-average MYR : US$1 exchange rate   4.53    4.37 
Period-end RMB : US$1 exchange rate   7.28    7.12 
Period-average RMB : US$1 exchange rate   7.06    6.64 
Period-end HK$ : US$1 exchange rate   7.83    7.85 
Period-average HK$ : US$1 exchange rate   7.84    7.84 

 

Fair value of financial instruments

 

The Company follows the guidance of ASC 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:

 

● Level 1 : Observable inputs such as quoted prices in active markets;
   
● Level 2 : Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
   
● Level 3 : Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions

 

The Company believes the carrying amount reported in the balance sheet for cash and cash equivalents, accounts receivable, prepaids and other current assets, accounts payable and accrued liabilities, income tax payable, deferred cost of revenue, deferred revenue, and due from or due to related parties, approximate their fair values because of the short-term nature of these financial instruments.

 

As of September 30, 2023 and December 31, 2022, the Company’s balance sheet includes Level 3 liabilities comprised of the fair value of derivative liabilities of $0 and $1, respectively (see Note 5). The following table sets forth a summary of the changes in the estimated fair value of our derivative during the nine-month period ended September 30, 2023:

 

  

Derivative

liability

 
Fair value as of December 31, 2022 (Audited)  $1 
Fair value gain of derivative liability associated with warrants   (1)
Fair value as of September 30, 2023 (Unaudited)  $- 

 

12
 

 

Concentrations of risks

 

For the three months ended September 30, 2023, two customers accounted for 56% (33% and 23%) of revenues, as compared to the three months ended September 30, 2022 where three customers accounted for 67% (28%, 22% and 17%) of revenues. For the nine months ended September 30, 2023 and 2022, three customers accounted for 40% (15%, 14% and 11%) and two customers accounted for 24% (13% and 11%) of revenues, respectively.

 

Three customers accounted for 77% (29%, 24% and 24%) and two customers accounted for 77% (57% and 20%) of net accounts receivable as of September 30, 2023 and December 31, 2022, respectively.

 

For the three and nine months ended September 30, 2023 and 2022, no vendor accounted for 10% or more of the Company’s cost of revenues.

 

Two vendors accounted for 92% (72% and 20%) and three vendors accounted for 59% (29%, 19% and 11%) of accounts payable as of September 30, 2023 and December 31, 2022, respectively.

 

Economic and political risks

 

Substantially all the Company’s services are conducted in the Asian region, primarily in Hong Kong, Malaysia, and the People’s Republic of China (“PRC”). Among other risks, the Company’s operations in Malaysia are subject to the risks of restrictions on transfer of funds; export duties, quotas, and embargoes; domestic and international customs and tariffs; changing taxation policies; foreign exchange restrictions; and political conditions and governmental regulations in Malaysia.

 

The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic, and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation.

 

Recent accounting pronouncements

 

In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40). This ASU reduces the number of accounting models for convertible debt instruments and convertible preferred stock and amends the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions. In addition, this ASU improves and amends the related earnings per share guidance. This standard became effective for the Company beginning on January 1, 2023. Adoption is either a modified retrospective method or a fully retrospective method of transition. The Company adopted this guidance effective January 1, 2023, and the adoption of this standard did not have a material impact on its consolidated financial statements.

 

In November 2019, the FASB issued ASU No. 2019-10, which to update the effective date of ASU No. 2016-13 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses, leases, and hedging standard. The new effective date for these preparers is for fiscal years beginning after December 15, 2022. ASU 2019-05 is effective for the Company for annual and interim reporting periods beginning January 1, 2023, as the Company is qualified as a smaller reporting company. The Company has accordingly adopted ASUs 2016-13 and 2019-05 in the preparation of its unaudited condensed consolidated financial statements. The adoption of the accounting standards has no material impact on the unaudited condensed consolidated financial statements for the nine months ended and as at September 30, 2023.

 

Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements.

 

13
 

 

NOTE 2 - REVENUE FROM CONTRACTS WITH CUSTOMERS

 

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

 

Revenue from services

 

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

 

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

 

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

 

Revenue from the sale of real estate properties

 

The Company follows the guidance of ASC 610-20, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (“ASC 610-20”) in accounting for the sale of real estate properties. The Company records the sale based on completed performance obligations, which typically occurs upon the transfer of ownership of a real estate asset to the buyer. During the three and nine months ended September 30, 2023, no real estate property was sold. For the three and nine months ended September 30, 2022, the Company recorded revenues from the sale of two and three real estate property units, respectively.

 

Revenue from the rental of real estate properties

 

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

 

Cost of revenues

 

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

 

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

 

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

 

14
 

 

The following table provides information about disaggregated revenue based on revenue by service lines and revenue by geographic area:

  

   2023   2022 
   Three Months Ended September 30, 
   2023   2022 
   (Unaudited)   (Unaudited) 
Revenue by service lines:          
Corporate advisory - Non-listing services  $448,151   $340,441 
Corporate advisory - Listing services   595,209    287,854 
Rental of real estate properties   27,612    25,356 
Sale of real estate properties   -    652,788 
Total revenue  $1,070,972   $1,306,439 

 

   Three Months Ended September 30, 
   2023   2022 
   (Unaudited)   (Unaudited) 
Revenue by geographic area:          
Hong Kong  $914,694   $856,319 
Malaysia   82,618    119,390 
China   73,660    330,730 
Total revenue  $1,070,972   $1,306,439 

 

   2023   2022 
   Nine Months Ended September 30, 
   2023   2022 
   (Unaudited)   (Unaudited) 
Revenue by service lines:          
Corporate advisory - Non-listing services  $1,079,000   $1,117,285 
Corporate advisory - Listing services   1,160,354    643,595 
Rental of real estate properties   70,238    89,686 
Sale of real estate properties   -    839,661 
Total revenue  $2,309,592   $2,690,227 

 

   Nine Months Ended September 30, 
   2023   2022 
   (Unaudited)   (Unaudited) 
Revenue by geographic area:          
Hong Kong  $1,810,445   $1,594,017 
Malaysia   236,847    387,824 
China   262,300    708,386 
Total revenue  $2,309,592   $2,690,227 

 

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

 

Deferred Cost of Revenue

 

Deferred cost of revenue mainly consists of the direct costs associated with the services provided. For the service contracts where the Company’s performance obligation is not completed, deferred cost of revenue is recorded when the costs incurred.

 

Deferred Revenue

 

Deferred revenue primarily consists of deferred service revenue. For the service contracts where the Company’s performance obligation is not completed, deferred revenue is recorded for any payments received in advance by the Company before the completion of its performance obligation. Changes in deferred revenue were as follows:

 

   Nine Months Ended
September 30, 2023		 
   (Unaudited) 
Deferred revenue, January 1, 2023  $1,834,244 
New contract liabilities   667,021 
Performance obligations satisfied   (1,160,354)
Deferred revenue, September 30, 2023  $1,340,911 

 

Deferred cost of revenue and deferred revenue at September 30, 2023 and December 31, 2022 are classified as current assets or current liabilities and totaled:

 

   As of
September 30, 2023		   As of
December 31, 2022		 
   (Unaudited)   (Audited) 
Deferred cost of revenue  $83,479   $168,605 
Deferred revenue  $1,340,911   $1,834,244 

 

15
 

 

NOTE 3 - OTHER INVESTMENTS

  

   As of   As of 
   September 30, 2023   December 31, 2022 
   (Unaudited)   (Audited) 
Investments in equity securities without readily determinable fair values of affiliates:          
(1) Greenpro Trust Limited (a related party)  $11,981   $11,981 
(2) Other related parties   5,070,125    5,394,125 
Total  $5,082,106   $5,406,106 

 

Investments in equity securities without readily determinable fair values of affiliates (related parties):

 

Equity securities without readily determinable fair values are investments without readily determinable market values. The Company adopted the guidance of ASC 321, Investments - Equity Securities, which allows an entity to measure investments in equity securities without a readily determinable fair value using a measurement alternative that measures these securities at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investment of same issuer (the “Measurement Alternative”). The fair value of equity securities without readily determinable fair values that have been remeasured due to impairment are classified within Level 3. Management assesses each of these investments on an individual basis. Additionally, on a quarterly basis, management is required to make a qualitative assessment of whether the investment is impaired.

 

For the three and nine months ended September 30, 2023, the Company recognized the reversal of impairment of $0 and $6,882,000, respectively for one of the investments in equity securities without readily determinable fair values.

 

For the three and nine months ended September 30, 2022, the Company recognized an impairment loss of $246,100 and $1,459,900, respectively for three of the investments in equity securities without readily determinable fair values.

 

During the year ended December 31, 2022, the Company recognized impairment of $4,208,029 for six of its total investments in equity securities without readily determinable fair values.

 

In addition, the Company recorded its equity securities without readily determinable fair values at cost. For these cost method investments, we recorded as other investments in our condensed consolidated balance sheets. We reviewed all our cost method investments quarterly to determine if impairment indicators were present; however, we were not required to determine fair value of these investments unless impairment indicators exist. When impairment indicators exist, we generally adopt the valuation methods allowed under ASC820 Fair Value Measurement to evaluate the fair values of our cost method investments approximated or exceeded their carrying values as of September 30, 2023. Our cost method investments had a carrying value of $5,082,106 as of September 30, 2023.

 

16
 

 

(a) Celmonze Wellness Corporation:

 

On February 8, 2023, our wholly owned subsidiary, Greenpro Venture Capital Limited (“GVCL”) entered into a subscription agreement with Celmonze Wellness Corporation, a Nevada corporation, which provides beauty and wellness solutions to clients (“Celmonze”). Pursuant to the agreement, GVCL acquired 5,000,000 shares of common stock of Celmonze at a price of $500 or $0.0001 per share. The investment was recognized at a historical cost of $500 under other investments.

 

(b) Innovest Energy Fund:

 

On February 11, 2021, Greenpro Resources Limited, a subsidiary of the Company (“GRL”) entered into a subscription agreement with Innovest Energy Fund, a global multi-asset fund incorporated in the Cayman Islands and principally engaged in developing a multi-faceted suite of products and services for the cryptocurrency industry and economy (the “Fund”). Pursuant to the agreement, GRL agreed to subscribe for $7,206,000 worth of Class B shares of the Fund by issuing 300,000 shares of the Company’s restricted Common Stock, valued at $7,206,000 to the Fund.

 

On May 18, 2023, the Company decided to terminate its investment in the Fund due to significant impairments suffered since subscription and to cancel the shares issued to the Fund due to the Fund’s failure to provide consideration for the shares. As a result, 300,000 shares of the Company’s restricted Common Stock were cancelled, the value of Common Stock of $300 and the value of additional paid-in capital of $7,205,700, in aggregate of $7,206,000, were reversed accordingly. The Company recorded a reversal of impairment of other investment of $6,882,000 during the nine-month period ended September 30, 2023.

 

(c) Simson Wellness Tech Corp.:

 

On February 19, 2021, GVCL entered into a subscription agreement with Simon Wellness Tech Corp., a Nevada corporation, which is a digital platform that acts as middleware for distribution of optical products (“Simson”). Pursuant to the agreement, GVCL acquired 5,000,000 shares of common stock of Simson at a price of $500 or $0.0001 per share. Our investment in Simson was recognized at historical cost of $500 under other investments.

 

In July 2023, GVCL agreed with Simson’s repurchase request, sold back our 5,000,000 owned Simson shares to Simson at $500. We received cash of $500 from Simson in exchange for our return of Simson shares.

 

The Company had cost method investments without readily determinable fair values with a carrying value of $5,082,106 and $5,406,106 as of September 30, 2023, and December 31, 2022, respectively.

 

On September 30, 2023 and December 31, 2022, the carrying values of equity securities without readily determinable fair values are as follows:

 

   As of
September 30, 2023		   As of
December 31, 2022		 
   (Unaudited)   (Audited) 
Original cost          
Balance, beginning of period / year  $15,537,964   $15,545,764 
Additions during the period / year   500    1,250 
Disposals or forfeitures during the period / year   (7,206,500)   (9,050)
Balance, end of period / year   8,331,964    15,537,964 
           
Accumulated impairment          
Balance, beginning of period / year   (10,131,858)   (5,923,829)
Reversal of impairment (Impairment) for the period / year   6,882,000    (4,208,029)
Balance, end of period / year   (3,249,858)   (10,131,858)
           
Net carrying values of equity securities without readily determinable fair values  $5,082,106   $5,406,106 

 

Accumulated impairment of other investments

 

For the three and nine months ended September 30, 2023, the Company recognized a reversal of impairment of $0 and $6,882,000 respectively, for one of the investments in equity securities without readily determinable fair values. As of September 30, 2023 and December 31, 2022, the accumulated impairment loss of other investments was $3,249,858 and $10,131,858, respectively.

 

17
 

 

NOTE 4 - LEASES

 

Currently, the Company has an operating lease agreement for one office space in Hong Kong with a term of two years and has a finance lease for a motor vehicle in Malaysia with a term of five years, respectively. Other than these leases, the Company does not have any other leases over the term of one year. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company accounts for the lease and non-lease components of its leases as a single lease component. Lease expense is recognized on a straight-line basis over the lease term.

 

Operating lease or finance lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Generally, the implicit rate of interest in arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The ROU asset includes any lease payments made and excludes lease incentives.

 

The components of lease expense and supplemental cash flow information related to leases for the periods are as follows:

 

   Nine Months Ended
September 30, 2023		   Nine Months Ended
September 30, 2022		 
   (Unaudited)   (Unaudited) 
Lease costs          
Operating lease costs:          
Operating lease cost  $70,623   $64,463 
Short-term lease cost (1)  $14,670   $19,213 
Finance lease costs:          
Interest on lease liabilities  $429   $- 
Amortization of right-of-use asset  $1,950   $- 
           
Other information          
Cash paid for amounts included in the measurement of lease liabilities:          
Operating cash flows for operating leases  $71,834   $68,908 
Operating cash flows for finance leases  $429   $- 
Financing cash flows for finance leases  $1,086   $- 
Non-cash activity:          
Balance payment of ROU asset by finance lease liabilities  $18,530   $- 
Weighted average remaining lease term (in years):          
Operating leases   1.46    0.46 
Finance leases   4.67    - 
Weighted average discount rate:          
Operating leases   4.0%   4.0%
Finance leases   6.9%   - 

 

(1) Includes expenses related to leases with a lease term of more than one month but less than one year.

 

The supplemental balance sheet information related to leases for the periods is as follows:

 

   As of
September 30, 2023		   As of
December 31, 2022		 
   (Unaudited)   (Audited) 
Assets          
Long-term operating lease ROU assets, net (1)  $137,252   $17,510 
Long-term finance lease ROU asset, net (2)   26,363    - 
Total ROU assets  $163,615   $17,510 
           
Liabilities          
Current portion of operating lease liabilities  $93,515   $18,725 
Current portion of finance lease liabilities   3,292    - 
Total current lease liabilities   96,807    18,725 
           
Long-term operating lease liabilities   43,737    - 
Long-term finance lease liabilities   14,190    - 
Total long-term lease liabilities   57,927    - 
Total lease liabilities  $154,734   $18,725 

 

(1) Operating lease ROU assets are measured at cost of $350,818 and $164,771 less accumulated amortization of $213,566 and $147,261 as of September 30, 2023 and December 31, 2022, respectively.
   
(2) Finance lease ROU asset is measured at cost of $28,247 and $0 less accumulated amortization of $1,884 and $0 as of September 30, 2023 and December 31, 2022, respectively.

 

Maturities of the Company’s lease liabilities are as follows:

  

   Operating leases   Finance leases 
   (Unaudited)   (Unaudited) 
Year ending December 31,          
2023 (remaining 3 months)  $24,326   $1,097 
2024   97,303    4,388 
2025   19,879    4,388 
2026   -    4,388 
2027   -    4,388 
2028   -    1,827 
Total future minimum lease payments   141,508    20,476 
Less: Imputed interest/present value discount   (4,256)   (2,994)
Present value of lease liabilities  $137,252   $17,482 
           
Lease obligations          
Current lease obligations  $93,515   $3,292 
Long-term lease obligations   43,737    14,190 
Total lease obligations  $137,252   $17,482 

 

Lease expenses were $27,965 and $85,293 during the three and nine months ended September 30, 2023, respectively, and $28,330 and $83,676 during the three and nine months ended September 30, 2022, respectively.

 

18
 

 

NOTE 5 - DERIVATIVE LIABILITIES

 

On June 12, 2018, warrants exercisable into 53,556 shares of the Company’s Common Stock were issued as placement agent fees related to the Company’s sale of Common Stock. The exercise price of warrants issued by the Company is denominated in United States Dollar, a currency other than the Company’s functional currencies, the HK$, RMB, and MYR. As a result, the warrants are not considered indexed to the Company’s own stock, and the Company characterized the fair value of the warrants as a derivative liability upon issuance.

 

The contractual life of the warrants is based on the expiration date of the warrants, that is the five-year anniversary of the effective date of the public offering on June 13, 2018, and hence the expected expiration of the warrants is June 12, 2023 (the “Expiration”). The derivative liability is re-measured at the end of every reporting period with the change in value reported in the statement of operations.

 

On July 19, 2022, the Company filed a Certificate of Change with the Secretary of State of the State of Nevada (the “Certificate of Change”) to effect a reverse split of the Company’s Common Stock at a ratio of 10-for-1 (the “Reverse Stock Split”), effective as of July 28, 2022. The Reverse Stock Split effected a reduction in the number of shares of Common Stock issuable upon the exercise of the warrants outstanding immediately prior to the effectiveness of the Reverse Stock Split. As a result of the Reverse Stock Split, the number of the outstanding warrants exercisable into the Company’s Common Stock was reduced from 53,556 (pre-split) shares to 5,356 (post-split) shares (see Note 6).

 

Warrant activity including the number of shares and the exercise price per share has been adjusted for all periods presented in this Quarterly Report to reflect the Reverse Stock Split effected on July 28, 2022 on a retroactive basis.

 

At September 30, 2023, the Company did not have any outstanding warrants exercisable into the Company’s Common Stock as all call warrants were not exercised on June 12, 2023 (the “Expiration”). At the Expiration, the Company’s Common Stock traded at or below the exercise price (120% of the public offering price), that is $72 (post-split) per share or $7.2 (pre-split) per share.

 

During the nine months ended September 30, 2023, the Company recorded a decrease in fair value of derivatives of $1.

 

The balance of the derivative liabilities related to warrants was $0 and $1 at September 30, 2023 and December 31, 2022, respectively.

 

The derivative liabilities related to warrants were valued using the Black-Scholes-Merton valuation model with the following assumptions:

  

   As of
June 12, 2023
(expiration)		   As of
December 31, 2022		 
   (Unaudited)   (Audited) 
Risk-free interest rate  $3.87%  $3.97%
Expected volatility   162%   168%
Contractual life (in years)   0.0 years    0.4 years 
Expected dividend yield   0.00%   0.00%
Fair value of warrants  $-   $1 

 

The risk-free interest rate is based on the yield available on U.S. Treasury securities. The Company estimates volatility based on the historical volatility of its Common Stock. The contractual life of the warrants is based on the expiration date of the warrants that is the five-year anniversary of the effective date of the public offering on June 13, 2018. The expected expiration of the warrants is June 12, 2023 (the “Expiration”). The expected dividend yield is based on the fact that the Company has not paid dividends to common shareholders in the past and does not expect to pay dividends to common shareholders in the future.

 

On June 12, 2023 (the “Expiration), no warrants were exercised as the trading price of the Company’s Common Stock was at or below the exercise price of $72 (post-split) per share or $7.2 (pre-split) per share. At the Expiration, the closing price of the Company’s Common Stock was $1.78 per share.

 

19
 

 

NOTE 6 - WARRANTS

 

On June 13, 2018, the Company granted to the placement agent and issued warrants exercisable into 53,556 shares of Common Stock at an exercise price of $7.20 per share and the expected expiration of the warrants is June 12, 2023 (the “Expiration”). Since the Expiration, the Company does not expect to issue another warrants in the next twelve months.

 

On July 19, 2022, the Company filed a Certificate of Change with the Secretary of State of the State of Nevada (the “Certificate of Change”) to effect a reverse split of the Company’s Common Stock at a ratio of 10-for-1 (the “Reverse Stock Split”), effective as of July 28, 2022. The Reverse Stock Split effected a reduction in the number of shares of Common Stock issuable upon the exercise of the warrants outstanding immediately prior to the effectiveness of the Reverse Stock Split. As a result of the Reverse Stock Split, the number of the outstanding warrants exercisable into the Company’s Common Stock was reduced from 53,556 (pre-split) shares to 5,356 (post-split) shares (see Note 5) and the exercise price of the warrants was adjusted from $7.2 (pre-split) per share to $72 (post-split) per share.

 

Warrant activity including the number of shares and the exercise price per share has been adjusted for all periods presented in this Quarterly Report to reflect the Reverse Stock Split effected on July 28, 2022 on a retroactive basis.

 

A summary of warrant activity during the nine months ended September 30, 2023 is presented below:

   

           Remaining 
   Number       Contractual 
   of   Exercise   Life 
   Shares   Price   (in Years) 
             
Warrants outstanding at December 31, 2022   5,356   $72.00            
Granted   -    -      
Exercised   -    -      
Expired   5,356    72.00      
Warrants outstanding at September 30, 2023 (Unaudited)   -   $-    - 
Warrants exercisable at September 30, 2023 (Unaudited)   -   $-    - 

 

On June 12, 2023 (the “Expiration), no warrants were exercised as the trading price of the Company’s Common Stock was at or below the exercise price of $72 (post-split) per share or $7.2 (pre-split) per share. At the Expiration, the closing price of the Company’s Common Stock was $1.78 per share.

 

At September 30, 2023, the value of the warrants was $nil as all warrants expired, no warrants were outstanding and exercisable.

 

20
 

 

NOTE 7 - RELATED PARTY TRANSACTIONS

 SCHEDULE OF DUE FROM RELATED PARTIES 

Accounts receivable from related parties:  September 30, 2023   December 31, 2022 
   (Unaudited)   (Audited) 
Accounts receivable, net - related parties          
- Related party B (net of allowance of $220 and $1,750 as of September 30 , 2023 and December 31, 2022, respectively)  $308,621   $129,250 
- Related party K (net of allowance of $0 and $2 as of September 30, 2023 and December 31, 2022, respectively)   -    42 
Total  $308,621   $129,292 

 

Prepaid to a related party:  September 30, 2023   December 31, 2022 
   (Unaudited)   (Audited) 
Prepayment          
- Related party B  $120,000   $80,000 

 

Due from related parties:  September 30, 2023   December 31, 2022 
   (Unaudited)   (Audited) 
Due from related parties          
- Related party B  $1,703   $4,708 
- Related party D   654,877    200,000 
- Related party G   3,173    1,064 
- Related party H   60,000    60,000 
- Related party I   23    - 
Total  $719,776   $265,772 

 

The amounts due from related parties are interest-free, unsecured and repayable on demand.

  

Due to related parties:  September 30, 2023   December 31, 2022 
   (Unaudited)   (Audited) 
Due to related parties          
- Related party A  $32,230   $47,135 
- Related party B   62,493    2,275 
- Related party E   1,434    - 
- Related party J   335,669    390,333 
- Related party K   4,752    8,508 
Total  $436,578   $448,251 

 

The amounts due to related parties are interest-free, unsecured, and repayable on demand.

 SCHEDULE OF INCOME FROM OR EXPENSES TO RELATED PARTIES 

Deferred cost of revenue to a related party:  September 30, 2023   December 31, 2022 
   (Unaudited)   (Audited) 
Deferred cost of revenue to a related party                         
- Related party B  $-   $11,640 

 

Deferred revenue from related parties:  September 30, 2023   December 31, 2022 
   (Unaudited)   (Audited) 
Deferred revenue from related parties          
- Related party B  $236,800   $749,400 
- Related party E   -    100,000 
Total  $236,800   $849,400 

 

21
 

 

  2023   2022 
   For the nine months ended September 30, 
Related party revenue and expense transactions:  2023   2022 
   (Unaudited)   (Unaudited) 
         
Service revenue from related parties          
- Related party A  $3,327   $22,827 
- Related party B   937,823    482,102 
- Related party D   28,384    24,183 
- Related party E   255,463    6,141 
- Related party G   7,407    12,480 
- Related party I   -    824 
- Related party K   122    45 
Total  $1,232,526   $548,602 
           
Cost of revenues to a related party          
- Related party B  $23,280   $- 
           
General and administrative expenses to related parties          
- Related party A  $-   $4,929 
- Related party B   21,780    4,235 
- Related party D   24,559    - 
- Related party I   11,911    12,368 
- Related party K   32,157    32,157 
Total  $90,407   $53,689 
           
Other income from related parties:          
- Related party B  $2,297   $- 
- Related party D   7,861    1,123 
Other income from related parties  $10,158   $1,123 
           
Reversal of impairment (impairment) of other investment:          
- Related party B  $6,882,000   $(1,459,900)

 

Related party A is under common control of Mr. Loke Che Chan Gilbert, the Company’s CFO, and a major shareholder.

 

Related party B represents those companies where the Company owns a certain percentage ranging from 1% to 18% of their company shares.

 

Related party C is controlled by a director of a wholly owned subsidiary of the Company.

 

Related party D represents a company that we have determined that we can significantly influence based on our common business relationships.

 

Related party E represents companies whose CEO is a consultant to the Company, and who is also a director of Aquarius Protection Fund, a shareholder in the Company.

 

Related party F represents a family member of Mr. Loke Che Chan Gilbert, the Company’s CFO and a major shareholder.

 

Related party G is under common control of Mr. Lee Chong Kuang, the Company’s CEO and a major shareholder.

 

Related party H represents a company in which we currently have an approximate 48% equity-method investment. On September 30, 2023, and December 31, 2022, amounts due from related party H are unsecured, bear no interest, and are payable upon demand. During 2018, the Company acquired 49% of related party H for total consideration of $368,265. On December 31, 2018, the Company determined that its investment in related party H was impaired and recorded an impairment of other investments of $368,265.

 

Related party I is controlled by a family member of Mr. Lee Chong Kuang, the Company’s CEO and a major shareholder.

 

Related party J represents the non-controlling interest in the Company’s subsidiary that owns its real estate held for sale. The amounts due to related party J are unsecured, bear no interest, are payable on demand, and related to the initial acquisition of the real estate held for sale.

 

Related party K represents shareholders and directors of the Company. Due from related party K represents the amounts paid by the Company to third parties on behalf of our shareholders or directors. On the other hand, due to related party K represents the amounts paid by the shareholders or directors to third parties on behalf of the Company. The amounts due from or due to related party K are non-interest bearing, and are due on demand.

 

22
 

 

NOTE 8 - SEGMENT INFORMATION

 

ASC 280, “Segment Reporting” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organization structure as well as information about services categories, business segments and major customers in financial statements. The Company has two reportable segments that are based on the following business units: service business and real estate business. In accordance with the “Segment Reporting” Topic of the ASC, the Company’s chief operating decision maker has been identified as the Chief Executive Officer and President, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Existing guidance, which is based on a management approach to segment reporting, establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products and services, major customers, and the countries in which the entity holds material assets and reports revenue. All material operating units qualify for aggregation under “Segment Reporting” due to their similar customer base and similarities in economic characteristics; nature of products and services; and procurement, manufacturing, and distribution processes. The Company operates two reportable business segments:

 

● Service business - provision of corporate advisory and business solution services
   
● Real estate business - leasing or trading of commercial real estate properties in Hong Kong and Malaysia

 

The Company had no inter-segment sales for the periods presented. Summarized financial information concerning the Company’s reportable segments is shown as below:

 

(a) By Categories

 

   Real estate business   Service business   Corporate   Total 
   For the nine months ended September 30, 2023 (Unaudited) 
   Real estate business   Service business   Corporate   Total 
                 
Revenues  $70,238   $2,239,354   $-   $2,309,592 
Cost of revenues   (28,315)   (374,048)   -    (402,363)
Depreciation and amortization expenses   (23,758)   (152,285)   (351)   (176,394)
Reversal of impairment of other investment   -    -    6,882,000    6,882,000 
Reversal of write-off notes receivable   -    -    400,000    400,000 
Net (loss) income   (44,550)   (371,709)   6,979,717    6,563,458 
                     
Total assets   1,704,170    5,675,545    6,976,401    14,356,116 
Capital expenditures for long-lived assets  $-   $33,240   $-   $33,240 

 

   Real estate
business		   Service
business		   Corporate   Total 
   For the nine months ended September 30, 2022 (Unaudited) 
   Real estate
business		   Service
business		   Corporate   Total 
                 
Revenues  $929,347   $1,760,880   $-   $2,690,227 
Cost of revenues   (606,276)   (239,437)   -    (845,713)
Depreciation and amortization expenses   (23,404)   (153,798)   (3,992)   (181,194)
Impairment   -    -    (1,459,900)   (1,459,900)
Net income (loss)   240,271    (1,974,981)   (680,125)   (2,414,835)
                     
Total assets   1,850,721    6,914,212    10,637,772    19,402,705 
Capital expenditures for long-lived assets  $-   $2,244   $-   $2,244 

 

(b) By Geography*

 

   Hong Kong   Malaysia   China   Total 
   For the nine months ended September 30, 2023 (Unaudited) 
   Hong Kong   Malaysia   China   Total 
                 
Revenues*  $1,810,445   $236,847   $262,300   $2,309,592 
Cost of revenues*   (228,919)   (130,948)   (42,496)   (402,363)
Depreciation and amortization expenses*   (72,287)   (23,940)   (80,167)   (176,394)
Reversal of impairment of other investment*   6,882,000    -    -    6,882,000 
Reversal of write-off notes receivable*   400,000    -    -    400,000 
Net income (loss)*   6,931,606    (383,491)   15,343    6,563,458 
                     
Total assets*   10,120,222    1,654,668    2,581,226    14,356,116 
Capital expenditures for long-lived assets*  $1,511   $30,217   $1,512   $33,240 

 

   Hong Kong   Malaysia   China   Total 
   For the nine months ended September 30, 2022 (Unaudited) 
   Hong Kong   Malaysia   China   Total 
                 
Revenues*  $1,594,017   $387,824   $708,386   $2,690,227 
Cost of revenues*   (614,162)   (159,755)   (71,796)   (845,713)
Depreciation and amortization expenses*   (71,215)   (23,404)   (86,575)   (181,194)
Impairment*   (1,459,900)   -    -    (1,459,900)
Net (loss) income*   (2,501,120)   (553)   86,838    (2,414,835)
                     
Total assets*   14,521,340    2,026,138    2,855,227    19,402,705 
Capital expenditures for long-lived assets*  $-   $1,164   $1,080   $2,244 

 

* Revenues and costs are attributed to countries based on the location where the entities operate.

 
23
 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

The information contained in this Form 10-Q is intended to update the information contained in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission on March 31, 2023 (the “Form 10-K”) and presumes that readers have access to, and will have read, the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other information contained in such Form 10-K. The following discussion and analysis also should be read together with our financial statements and the notes to the financial statements included elsewhere in this Form 10-Q.

 

The following discussion contains certain statements that may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements appear in several places in this Report, including, without limitation, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” These statements are not guaranteed of future performance and involve risks, uncertainties and requirements that are difficult to predict or are beyond our control. Forward-looking statements speak only as of the date of this Quarterly Report. You should not put undue reliance on any forward-looking statements. We strongly encourage investors to carefully read the factors described in our Form 10-K in the section entitled “Risk Factors” for a description of certain risks that could, among other things, cause actual results to differ from these forward-looking statements. We assume no responsibility to update the forward-looking statements contained in this Quarterly Report on Form 10-Q. The following should also be read in conjunction with the unaudited Financial Statements and notes thereto that appear elsewhere in this report.

 

Company Overview

 

Greenpro Capital Corp. (the “Company” or “Greenpro”), was incorporated in the State of Nevada on July 19, 2013. We provide cross-border business solutions and accounting outsourcing services to small and medium-size businesses located in Asia, with an initial focus on Hong Kong, Malaysia, and China. Greenpro provides a range of services as a package solution to our clients, which we believe can assist our clients in reducing their business costs and improving their revenues.

 

In addition to our business solution services, we also operate a venture capital business through our wholly-owned subsidiary, Greenpro Venture Capital Limited (“GVCL”). GVCL, an Anguilla corporation, is primarily focuses on (1) establishing a business incubator for start-up and high growth companies to support such companies during critical growth periods, which will include education and support services, and (2) searching for investment opportunities in selected start-up and high growth companies, which may generate significant returns to the Company. Our venture capital business is mainly focused on the companies located in Asia and Southeast Asia including Hong Kong, Malaysia, China, Thailand, and Singapore. Another one of our venture capital business segments is focused on trading or rental activities of our commercial properties.

 

Results of Operations

 

During the three and nine months ended September 30, 2023, and 2022, we operated in three regions: Hong Kong, China and Malaysia. We derived revenue from the provision of services and the trading or rental activities of our commercial properties.

 

Comparison of the three months ended September 30, 2023 and 2022

 

Total revenue

 

Total revenue was $1,070,972 and $1,306,439 for the three months ended September 30, 2023, and 2022, respectively. The decreased amount of $235,467 was primarily due to the sale of two units of real estate properties for $652,788 during the three months ended September 30, 2022, but no real estate property was sold during the same period in 2023. We expect revenue from both service business and real estate business to steadily improve when the impact of the COVID-19 pandemic abates.

 

Service business

 

Revenue from the provision of business services was $1,043,360 and $628,295 for the three months ended September 30, 2023, and 2022, respectively. It was derived principally from the provision of business consulting and advisory services as well as company secretarial, accounting, and financial analysis services. We experienced an increase in service revenue as some listing service obligations were completed during the three months ended September 30, 2023.

 

Real estate business

 

Sale of real estate properties

 

There was no revenue generated from the sale of real estate properties for the three months ended September 30, 2023. Revenue from the sale of real estate properties was $652,788 for the three months ended September 30, 2022, which was derived from the sale of two commercial property units located in Hong Kong.

 

Rental revenue

 

Revenue from rentals was $27,612 and $25,356 for the three months ended September 30, 2023, and 2022, respectively. It was derived principally from leasing properties in Hong Kong and Malaysia. We believe our rental income will be stable.

 

24
 

 

Total operating costs and expenses

 

Total operating costs and expenses were $1,207,517 and $1,536,785 for the three months ended September 30, 2023, and 2022, respectively. They consist of cost-of-service revenue, cost of real estate properties sold, cost of rental revenue, and general and administrative expenses.

 

Loss from operations for the three months ended September 30, 2023, and 2022 was $136,545 and $230,346, respectively. A decrease in loss from operations in 2023 was mainly due to an increase in the gross profit from our business services of $298,293, offset by a decreased amount of $207,042 from the gross profit of the sale of real estate properties.

 

Cost of service revenue

 

Cost of revenue from the provision of services was $219,865 and $103,093 for the three months ended September 30, 2023, and 2022, respectively. It primarily consists of employee compensation and related payroll benefits, company formation costs, and other professional fees directly attributable to the services rendered.

 

An increase of cost-of-service revenue was mainly due to an increase of other professional fees directly attributable to the services for the three months ended September 30, 2023.

 

Cost of real estate properties sold

 

There was no cost incurred for the sale of real estate properties for the three months ended September 30, 2023. Cost of revenue on real estate properties sold was $445,746 for the three months ended September 30, 2022. It primarily consisted of the purchase price of properties, legal fees, improvement costs to the building structure, and other acquisition costs. Selling and advertising costs are expensed as incurred.

 

Cost of rental revenue

 

Cost of rental revenue was $9,629 and $10,489 for the three months ended September 30, 2023, and 2022, respectively. It includes the costs associated with governmental charges, repairs and maintenance, property management fees and insurance, depreciation, and other related administrative costs. Utility expenses are borne and paid directly by individual tenants.

 

General and administrative expenses

 

General and administrative (“G&A”) expenses were $978,023 and $977,457 for the three months ended September 30, 2023, and 2022, respectively. For the three months ended September 30, 2023, G&A expenses consisted primarily of employees’ salaries and allowances of $319,523, directors’ salaries and compensation of $163,427, advertising and promotion expenses of $45,104, computer expenses of $95,866, consulting fees of $49,138, legal services fees of $48,936, other professional fees of $60,563 and rent and rates of $27,965. For the three months ended September 30, 2022, G&A expenses consisted mainly of employees’ salaries and allowances of $367,703, directors’ salaries and compensation of $162,944, advertising and promotion expenses of $120,638, consulting fees of $16,402, legal services fees of $51,575, other professional fees of $79,032 and rent and rates of $28,330. We expect our G&A expenses will continue to increase as we integrate our business acquisitions, explore, and expand businesses into new jurisdictions.

 

Other income or expenses

 

Net other income was $18,488 for the three months ended September 30, 2023, while net other expense was $222,459 for the three months ended September 30, 2022. For the three months ended September 30, 2023, other income mainly consisted of interest income of $8,853 and other gains of $9,635. For the three months ended September 30, 2022, net other expense included impairment of other investment of $246,100, offset by interest income and other gains of $23,641.

 

Net loss

 

Net loss was $120,994 and $452,805 for the three months ended September 30, 2023 and 2022, respectively. A decrease in net loss was mainly due to an impairment of other investment of $246,100 in 2022, but no such impairment in 2023.

 

Net income or loss attributable to non-controlling interest

 

The Company records net income or loss attributable to non-controlling interest in the consolidated statements of operations for the non-controlling interest of a consolidated subsidiary.

 

For the three months ended September 30, 2023, the Company recorded net loss attributable to a non-controlling interest of $3,865, as compared to net income attributable to a non-controlling interest of $78,675 for the three months ended September 30, 2022.

 

25
 

 

Comparison of the nine months ended September 30, 2023, and 2022

 

Total revenue

 

Total revenue was $2,309,592 and $2,690,227 for the nine months ended September 30, 2023, and 2022, respectively. A decrease of revenue was mainly due to the sale of three units of real estate properties for $839,661 during the nine months ended September 30, 2022, but no real estate property was sold during the same period in 2023. We expect revenue from both service business and real estate business to steadily improve when the impact of the COVID-19 pandemic abates.

 

Service business

 

Revenue from the provision of business services was $2,239,354 and $1,760,880 for the nine months ended September 30, 2023, and 2022, respectively. It was derived principally from business consulting and advisory services as well as company secretarial, accounting, and financial analysis services. We experienced an increase in service revenue as some listing service obligations were completed during the nine months ended September 30, 2023.

 

Real estate business

 

Sale of real estate properties

 

There was no revenue generated from the sale of real estate properties for the nine months ended September 30, 2023. Revenue from the sale of real estate properties was $839,661 for the nine months ended September 30, 2022, which was derived from the sale of three commercial property units located in Hong Kong.

 

Rental revenue

 

Revenue from rentals was $70,238 and $89,686 for the nine months ended September 30, 2023, and 2022, respectively. It was derived principally from leasing properties in Hong Kong and Malaysia. We believe our rental income will be stable.

 

Total operating costs and expenses

 

Total operating costs and expenses were $3,089,209 and $3,755,944 for the nine months ended September 30, 2023, and 2022, respectively. They consist of cost-of-service revenue, cost of real estate properties sold, cost of rental revenue and G&A expenses. The Company incurred $2,686,846 and $2,910,231 of G&A expenses for the nine months ended September 30, 2023, and 2022, respectively.

 

Loss from operations for the nine months ended September 30, 2023, and 2022 was $779,617 and $1,065,717, respectively. A decrease in loss from operations was mainly due to a decrease of G&A expenses of $223,385.

 

Cost of service revenue

 

Cost of revenue from the provision of services was $374,048 and $239,437 for the nine months ended September 30, 2023, and 2022, respectively. It primarily consists of employee compensation and related payroll benefits, company formation costs, and other professional fees directly attributable to the services rendered.

 

An increase of cost-of-service revenue was mainly due to an increase of other professional fees directly attributable to the services for the nine months ended September 30, 2023.

 

Cost of real estate properties sold

 

During the nine months ended September 30, 2023, no real estate property was sold, and hence no cost incurred accordingly. Cost of real estate properties sold was $573,087 for the nine months ended September 30, 2022. It primarily consisted of the purchase price of properties, legal fees, improvement costs to the building structure, and other acquisition costs. Selling and advertising costs are expensed as incurred.

 

Cost of rental revenue

 

Cost of rental revenue was $28,315 and $33,189 for the nine months ended September 30, 2023, and 2022, respectively. It includes the costs associated with governmental charges, repairs and maintenance, property management fees and insurance, depreciation, and other related administrative costs. Utility expenses are borne and paid directly by individual tenants. A slight decrease of cost of rental revenue was mainly due to a decrease in repairs and maintenance fees, cleaning fee and commission incurred for the nine months ended September 30, 2023, as compared to the same fees incurred for the nine months ended September 30, 2022.

 

General and administrative expenses

 

G&A expenses were $2,686,846 and $2,910,231 for the nine months ended September 30, 2023, and 2022, respectively. For the nine months ended September 30, 2023, G&A expenses consisted primarily of employees’ salaries and allowances of $1,009,398, directors’ salaries and compensation of $489,589, advertising and promotion expenses of $149,404, computer expenses of $122,603, consulting fees of $122,349, legal services fees of $161,303, other professional fees of $123,595 and rent and rates of $85,293. For the nine months ended September 30, 2022, G&A expenses consisted mainly of employees’ salaries and allowances of $1,096,413, directors’ salaries and compensation of $489,583, advertising and promotion expenses of $277,094, consulting fees of $147,971, legal services fees of $179,307, other professional fees of $193,549 and rent and rates of $83,676. We expect our G&A expenses will continue to increase as we integrate our business acquisitions, explore, and expand businesses into new jurisdictions.

 

26
 

 

Other income or expenses

 

Net other income was $7,349,638 for the nine months ended September 30, 2023, while net other expense was $1,347,582 for the nine months ended September 30, 2022. For the nine months ended September 30, 2023, other income mainly consisted of reversal of impairment of other investment of $6,882,000, reversal of write-off notes receivable of $400,000 and interest income of $30,859. For the nine months ended September 30, 2022, net other expense included impairment of other investment of $1,459,900, offset by interest income and other gains of $112,318.

 

Net income (loss)

 

Net income was $6,563,458 for the nine months ended September 30, 2023, while net loss was $2,414,835 for the nine months ended September 30, 2022. For the nine months ended September 30, 2023, net income was generated mainly by a reversal of impairment of other investment, a reversal of write-off notes receivable, and a decrease of G&A expenses, respectively.

 

Net income or loss attributable to non-controlling interest

 

The Company records net income or loss attributable to non-controlling interest in the consolidated statements of operations for the non-controlling interest of a consolidated subsidiary.

 

As of September 30, 2023, the non-controlling interest is related to Forward Win International Limited (“FWIL”), a company with principal activity of trading and leasing properties in Hong Kong. Currently, the Company holds 60% equity interest in FWIL.

 

For the nine months ended September 30, 2023, and 2022, we recorded net loss attributable to non-controlling interest of $17,820 and net income attributable to non-controlling interest of $96,107, respectively.

 

There were no seasonal aspects that had a material effect on the financial condition or the results of operations of the Company.

 

Other than as disclosed elsewhere in this Quarterly Report, we are not aware of any trends, uncertainties, demands, commitments or events for the nine months ended September 30, 2023 that are reasonably likely to have a material adverse effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources, or that would cause the disclosed financial information to be not necessarily indicative of future operating results or financial conditions.

 

27
 

 

Off Balance Sheet Arrangements

 

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our stockholders as of September 30, 2023.

 

Contractual Obligations

 

Currently, one of our subsidiaries leases one office space in Hong Kong under a non-cancellable operating lease with a term of two years commencing from March 15, 2023, to March 14, 2025. As of September 30, 2023, the future minimum rental payments under this lease in the aggregate are approximately $141,508 and are due as follows: 2023: $24,326; 2024: $97,303 and 2025: $19,879.

 

In June 2023, one of our subsidiaries in Malaysia purchased a motor vehicle and the majority amount of the purchase, $18,530 was funded by Maybank Islamic under a finance lease agreement with a term of five years commencing from June 3, 2023, to June 2, 2028. As of September 30, 2023, the future minimum lease payments under this lease in the aggregate are approximately $20,476 and are due as follows: 2023: $1,097; 2024: $4,388; 2025: $4,388, and 2026 and thereafter: $10,603.

 

Related Party Transactions

 

Net accounts receivable due from related parties was $308,621 and $129,292 as of September 30, 2023, and December 31, 2022, respectively. Prepayment to a related party was $120,000 and $80,000 as of September 30, 2023, and December 31, 2022, respectively.

 

Amounts due from related parties were $719,776 and $265,772 as of September 30, 2023, and December 31, 2022, respectively, while amounts due to related parties were $436,578 and $448,251 as of September 30, 2023, and December 31, 2022, respectively.

 

Deferred cost of revenue to a related party was $0 and $11,640 as of September 30, 2023, and December 31, 2022, respectively, while deferred revenue from related parties was $236,800 and $849,400 as of September 30, 2023, and December 31, 2022, respectively.

 

For the nine months ended September 30, 2023, and 2022, related party service revenue totaled $1,232,526 and $548,602, respectively.

 

Cost of service revenue to related party was $23,280 and $0 for the nine months ended September 30, 2023, and 2022, respectively.

 

G&A expenses to related parties were $90,407 and $53,689 for the nine months ended September 30, 2023, and 2022, respectively.

 

For the nine months ended September 30, 2023, and 2022, other income from related parties was $10,158 and $1,123, respectively. The Company recorded a reversal of impairment of related party investment of $6,882,000 and an impairment of related party investment of $1,459,900 for the nine months ended September 30, 2023, and 2022, respectively.

 

Our related parties primarily represent those companies where we own a certain percentage of their shares, and it is determined that we have significant influence on those companies based on our common business relationships. Refer to Note 7 to the Condensed Consolidated Financial Statements for additional details regarding the related party transactions.

 

28
 

 

Critical Accounting Policies and Estimates

 

Use of estimates

 

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant accounting estimates include certain assumptions related to, among others, the allowance for doubtful accounts receivable, impairment analysis of real estate assets and other long-term assets including goodwill, valuation allowance on deferred income taxes, and the accrual of potential liabilities. Actual results may differ from these estimates.

 

Revenue recognition

 

The Company follows the guidance of Accounting Standards Codification (ASC) 606, Revenue from Contracts. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying the contracts or agreements with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients.

 

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

 

Impairment of long-lived assets

 

Long-lived assets primarily include real estate held for investment, property and equipment, and intangible assets. In accordance with the provision of ASC 360, the Company generally conducts its annual impairment evaluation of its long-lived assets in the fourth quarter of each year, or more frequently if indicators of impairment exist, such as a significant sustained change in the business climate. The recoverability of long-lived assets is measured at the reporting unit level. If the total of the expected undiscounted future net cash flows is less than the carrying amount of the asset, a loss is recognized for the difference between the fair value and carrying amount of the asset. In addition, for real estate held for sale, an impairment loss is the adjustment to fair value less estimated cost to dispose of the asset.

 

Goodwill

 

Goodwill is the excess of cost of an acquired entity over the fair value of amounts assigned to assets acquired and liabilities assumed in a business combination. Under the guidance of ASC 350, goodwill is not amortized, rather it is tested for impairment annually, and will be tested for impairment between annual tests if an event occurs or circumstances change that would indicate the carrying amount may be impaired. An impairment loss generally would be recognized when the carrying amount of the reporting unit’s net assets exceeds the estimated fair value of the reporting unit and would be measured as the excess carrying value of goodwill over the derived fair value of goodwill. The Company’s policy is to perform its annual impairment testing for its reporting units on December 31, of each fiscal year.

 

Derivative financial instruments

 

Derivative financial instruments consist of financial instruments that contain a notional amount and one or more underlying variables such as interest rate, security price, variable conversion rate or other variables, require no initial net investment and permit net settlement. The derivative financial instruments may be free-standing or embedded in other financial instruments. The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. The Company follows the provision of ASC 815, Derivatives and Hedging for derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. At each reporting date, the Company reviews its convertible securities to determine that their classification is appropriate.

 

Recent accounting pronouncements

 

Refer to Note 1 in the accompanying financial statements.

 

29
 

 

Liquidity and Capital Resources

 

On September 30, 2023, our cash balance was $2,559,285, as compared to $3,911,535 on December 31, 2022, a decrease of $1,352,250. We estimate we still have sufficient cash available to meet our anticipated working capital for the next twelve months.

 

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. During the nine months ended September 30, 2023, the Company recorded net cash used in operations of $1,293,574, and as of September 30, 2023, the Company incurred accumulated deficit of $31,041,402. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date that the financial statements are issued. In addition, the Company’s independent registered public accounting firm, in its report on the Company’s December 31, 2022 financial statements, has expressed substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

The Company’s ability to continue as a going concern is dependent upon improving its profitability and the continuing financial support from its major shareholders. Management believes the existing shareholders or external financing will provide the additional cash to meet the Company’s obligations as they become due.

 

Despite the amount of funds that the Company has raised in the past, no assurance can be given that any future financing, if needed, will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, if needed, it may contain undue restrictions on its operations, in the case of debt financing, or cause substantial dilution for its shareholders, in the case of equity financing.

 

Operating activities

 

Net cash used in operating activities was $1,293,574 and $2,157,380 for the nine months ended September 30, 2023, and 2022, respectively. The net cash used in operating activities in 2023 primarily consisted of an increase in net accounts receivable of $236,494, a decrease in accounts payable and accrued liabilities of $133,386 and a decrease in deferred revenue of $493,333, a reversal of impairment of other investment of $6,882,000 and a reversal of write-off notes receivable of $400,000, offset by net income of $6,563,458. For the nine months ended September 30, 2023, non-cash adjustments totaled $7,105,607, which was mostly composed of non-cash income from reversal of impairment of other investment of $6,882,000 and reversal of write-off notes receivable of $400,000, respectively.

 

Investing activities

 

For the nine months ended September 30, 2023, net cash used in investing activities was $14,710 as compared to the nine months ended September 30, 2022, net cash provided by investing activities was $836,167.

 

Financing activities

 

Net cash used in financing activities for the nine months ended September 30, 2023, and 2022 was $66,763 and $416,382, respectively.

 

Cash used in financing activities was mainly due to advances to related parties of $465,677, offset by $400,000 from collection of notes receivable.

 

30
 

 

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

 

As a “smaller reporting company” as defined by Rule 12b-2 of the Securities Exchange Act of 1934, the Company is not required to provide the information under this item.

 

Item 4. Controls and Procedures.

 

Evaluation of Disclosure Controls and Procedures

 

Our management, with the participation of our principal executive officer and principal financial officer, evaluated the effectiveness of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (“Exchange Act”). Based on such evaluation, our principal executive officer and principal financial officer have concluded that the disclosure controls and procedures were effective as of September 30, 2023 to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time period specified in the U.S. Securities and Exchange Commission’s (“SEC”) rules and forms, and to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, as appropriate, to allow timely decisions regarding disclosure.

 

Changes in Internal Control over Financial Reporting

 

There were no changes in our internal control over financial reporting for the nine months ended September 30, 2023, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

Inherent Limitations on Effectiveness of Controls

 

Our management, including each of our Chief Executive Officer and Chief Financial Officer, intends that our disclosure controls and procedures and internal control over financial reporting are designed to provide reasonable assurance of achieving their objectives. However, our management does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of a simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by management override of the controls. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, controls may become inadequate because of changes in conditions, or the degree of compliance with policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

 

31
 

 

PART II – OTHER INFORMATION

 

Item 1. Legal Proceedings.

 

On August 24, 2021, Plaintiff Millennium Fine Art Inc. (“MFAI”) filed a Complaint against the Company, alleging that on or about April 21, 2021, MFAI and the Company entered into a contract (the “Contract”), by which MFAI agreed to create 7,700 non-fungible tokens (“NFT”) in exchange for sixteen million dollars ($16,000,000) worth of shares of the Company. MFAI claims that the Company breached the Contract by refusing delivery of the NFTs and not delivering $16 million worth of shares to MFAI. The Complaint asserts causes of action for breach of contract, special damages and promissory estoppel, and seeks sixty-six million dollars ($66,000,000) in damages, specific performance by Company according to the terms of the Contract, and MFAI’s attorney’s fees and costs.

 

On October 18, 2021, the Company filed a motion, denying all the material allegations of the Complaint, and seeking to stay the case and compel arbitration pursuant to the purported Contract. In its motion, the Company only sought to enforce the terms of the Contract as it relates to arbitration, but otherwise denied the existence of a valid and binding contract. Over MFAI’s opposition, the Court granted the Company’s motion, and stayed the case, pending the resolution of the Parties’ arbitration of the dispute.

 

On or about April 1, 2022, MFAI filed a Request for Arbitration with JAMS dispute resolution services, in response to which the Company filed a Statement of Answer, denying the material allegations of the Complaint, which the Company deems to be without merit. The matter is currently in the discovery phase, and the Company intends to continue vigorously defending this matter. No final hearing date has yet been scheduled in the Arbitration.

 

Item 1A. Risk Factors.

 

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

 

None.

 

Item 3. Defaults upon Senior Securities.

 

None.

 

Item 4. Mine Safety Disclosures.

 

Not applicable.

 

Item 5. Other Information.

 

None.

 

Item 6. Exhibits

 

Exhibit No.   Description
31.1   Rule 13(a)-14(a)/15(d)-14(a) Certification of principal executive officer
31.2   Rule 13(a)-14(a)/15(d)-14(a) Certification of principal financial officer
32.1   Section 1350 Certification of principal executive officer
32.2   Section 1350 Certification of principal financial officer and principal accounting officer
101. INS*   Inline XBRL Instance Document
101.SCH*   Inline XBRL Taxonomy Extension Schema Document
101.CAL*   Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*   Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*   Inline XBRL Taxonomy Extension Labels Linkbase Document
101.PRE*   Inline XBRL Taxonomy Extension Presentation Linkbase Document
104*   Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

 

32
 

 

SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  Greenpro Capital Corp.
   
Date: November 13, 2023 By: /s/ Lee Chong Kuang
    Lee Chong Kuang
    President and Chief Executive Officer
    (Principal Executive Officer)
     
Date: November 13, 2023 By: /s/ Loke Che Chan, Gilbert
    Loke Che Chan, Gilbert
    Chief Financial Officer
    (Principal Financial and Accounting Officer)

 

33

 

 

EXHIBIT 31.1

 

CERTIFICATION

 

I, LEE CHONG KUANG, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q of Greenpro Capital Corp. (the “Company”) for the quarter ended September 30, 2023;

 

2. Based on my knowledge, this Quarterly Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

  a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
     
  b. Designed such internal control over financial reporting or caused such internal control to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
     
  c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
     
  d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

 

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
     
  b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: November 13, 2023    
  By: /s/ Lee Chong Kuang
  Title: Chief Executive Officer
    (Principal Executive Officer)

 

 

 

 

EXHIBIT 31.2

 

CERTIFICATION

 

I, LOKE CHE CHAN, GILBERT, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q of Greenpro Capital Corp. (the “Company”) for the quarter ended September 30, 2023;

 

2. Based on my knowledge, this Quarterly Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

  a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
     
  b. Designed such internal control over financial reporting or caused such internal control to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
     
  c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
     
  d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

 

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
     
  b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting

 

Date: November 13, 2023    
  By: /s/ Loke Che Chan, Gilbert
  Title: Chief Financial Officer
    (Principal Financial and Accounting Officer)

 

 

 

 

EXHIBIT 32.1

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

 

AS ADOPTED PURSUANT TO

 

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of Greenpro Capital Corp. (the “Company”) on Form 10-Q for the period ending September 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), The undersigned hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:

 

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

 

Date: November 13, 2023    
  By: /s/ Lee Chong Kuang
  Title: Chief Executive Officer
    (Principal Executive Officer)

 

 

 

 

EXHIBIT 32.2

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

 

AS ADOPTED PURSUANT TO

 

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of Greenpro Capital Corp. (the “Company”) on Form 10-Q for the period ending September 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), The undersigned hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:

 

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

 

Date: November 13, 2023    
  By: /s/ Loke Che Chan, Gilbert
  Title: Chief Financial Officer
    (Principal Financial and Accounting Officer)

 

 

 

v3.23.3
Cover - shares
 9 Months Ended
Sep. 30, 2023
Nov. 13, 2023
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Sep. 30, 2023  
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2023  
Current Fiscal Year End Date --12-31  
Entity File Number 001-38308  
Entity Registrant Name Greenpro Capital Corp.  
Entity Central Index Key 0001597846  
Entity Tax Identification Number 98-1146821  
Entity Incorporation, State or Country Code NV  
Entity Address, Address Line One B-23A-02, G-Vestor Tower  
Entity Address, Address Line Two Pavilion Embassy  
Entity Address, Address Line Three 200 Jalan Ampang  
Entity Address, City or Town W.P. Kuala Lumpur  
Entity Address, Country MY  
Entity Address, Postal Zip Code 50450  
City Area Code (603)  
Local Phone Number 8408 - 1788  
Title of 12(b) Security Common Stock, $0.0001 par value  
Trading Symbol GRNQ  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Bankruptcy Proceedings, Reporting Current false  
Entity Common Stock, Shares Outstanding   7,575,813
v3.23.3
Condensed Consolidated Balance Sheets - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Current assets:    
Cash and cash equivalents (including $63,847 and $38,466 of restricted cash as of September 30, 2023 and December 31, 2022, respectively) $ 2,559,285 $ 3,911,535
Accounts receivable, net of allowance of $24,534 and $25,677 as of September 30, 2023 and December 31, 2022, respectively (including $308,621 and $129,292 of net accounts receivable from related parties as of September 30, 2023 and December 31, 2022, respectively) 406,031 169,537
Prepaids and other current assets (including $120,000 and $80,000 of deposit paid to a related party as of September 30, 2023 and December 31, 2022, respectively) 700,221 773,040
Deferred cost of revenue (including $0 and $11,640 to a related party as of September 30, 2023 and December 31, 2022, respectively) 83,479 168,605
Total current assets 4,468,792 5,288,489
Property and equipment, net 2,308,702 2,513,567
Real estate investments:    
Real estate held for sale 1,659,207 1,659,207
Real estate held for investment, net 589,776 650,223
Intangible assets, net 1,357 1,900
Goodwill 82,561 82,561
Other investments (including $5,082,106 and $5,406,106 of investments in related parties as of September 30, 2023 and December 31, 2022, respectively) 5,082,106 5,406,106
Operating lease right-of-use assets, net [1] 137,252 17,510
Finance lease right-of-use asset, net [2] 26,363
Other non-current assets 19,643
TOTAL ASSETS 14,356,116 [3] 15,639,206
Current liabilities:    
Accounts payable and accrued liabilities 625,523 758,909
Income tax payable 2,890 858
Operating lease liabilities, current portion 93,515 18,725
Finance lease liabilities, current portion 3,292
Deferred revenue (including $236,800 and $849,400 from related parties as of September 30, 2023 and December 31, 2022, respectively) 1,340,911 1,834,244
Derivative liabilities 1
Total current liabilities 2,502,709 3,060,988
Operating lease liabilities, non-current portion 43,737
Finance lease liabilities, non-current portion 14,190
Total liabilities 2,560,636 3,060,988
Commitments and contingencies
Stockholders’ equity:    
Preferred stock, $0.0001 par value; 100,000,000 shares authorized; no shares issued and outstanding
Common Stock, $0.0001 par value; 500,000,000 shares authorized; 7,575,813 and 7,875,813 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively 7,576 7,876
Additional paid in capital 42,897,029 50,102,729
Accumulated other comprehensive loss (365,087) (224,891)
Accumulated deficit (31,041,402) (37,622,680)
Total Greenpro Capital Corp. stockholders’ equity 11,498,116 12,263,034
Non-controlling interest in a consolidated subsidiary 297,364 315,184
Total stockholders’ equity 11,795,480 12,578,218
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY 14,356,116 15,639,206
Related Party [Member]    
Current assets:    
Accounts receivable, net of allowance of $24,534 and $25,677 as of September 30, 2023 and December 31, 2022, respectively (including $308,621 and $129,292 of net accounts receivable from related parties as of September 30, 2023 and December 31, 2022, respectively) 308,621 129,292
Due from related parties 719,776 265,772
Current liabilities:    
Due to related parties $ 436,578 $ 448,251
[1] Operating lease ROU assets are measured at cost of $350,818 and $164,771 less accumulated amortization of $213,566 and $147,261 as of September 30, 2023 and December 31, 2022, respectively.
[2] Finance lease ROU asset is measured at cost of $28,247 and $0 less accumulated amortization of $1,884 and $0 as of September 30, 2023 and December 31, 2022, respectively.
[3] Revenues and costs are attributed to countries based on the location where the entities operate.
v3.23.3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Defined Benefit Plan Disclosure [Line Items]    
Restricted cash $ 63,847 $ 38,466
Accounts receivable, allowance 24,534 25,677
Accounts receivable, related parties, current 406,031 169,537
Payment of deposit to related party 120,000 80,000
Due from related parties, deferred costs of revenue 0 11,640
Due to related parties, deferred revenue $ 236,800 $ 849,400
Preferred stock, par value $ 0.0001 $ 0.0001
Preferred stock, shares authorized 100,000,000 100,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares authorized 500,000,000 500,000,000
Common stock, shares issued 7,575,813 7,875,813
Common stock, shares outstanding 7,575,813 7,875,813
Related Party [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Accounts receivable, related parties, current $ 308,621 $ 129,292
Related parties investments $ 5,082,106 $ 5,406,106
v3.23.3
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
REVENUES:        
Total revenue $ 1,070,972 $ 1,306,439 $ 2,309,592 [1] $ 2,690,227 [1]
COST OF REVENUES:        
Total cost of revenues (229,494) (559,328) (402,363) (845,713)
GROSS PROFIT 841,478 747,111 1,907,229 1,844,514
OPERATING EXPENSES:        
General and administrative (including $13,687 and $17,461 of general and administrative expense to related parties for the three months ended September 30, 2023, and 2022, respectively, and $90,407 and $53,689 of general and administrative expense to related parties for the nine months ended September 30, 2023 and 2022, respectively) (978,023) (977,457) (2,686,846) (2,910,231)
LOSS FROM OPERATIONS (136,545) (230,346) (779,617) (1,065,717)
OTHER INCOME (EXPENSES):        
Other income (including $3,425 and $1,123 of other income from related parties for the three months ended September 30, 2023, and 2022, respectively, and $10,158 and $1,123 of other income from related parties for the nine months ended September 30, 2023, and 2022, respectively) 9,953 15,297 37,207 90,993
Interest income 8,853 7,865 30,859 11,441
Fair value gains of derivative liabilities associated with warrants 479 1 9,884
(Impairment) reversal of impairment of other investment (including reversal of impairment of $0 and impairment of $246,100 of related party investment for the three months ended September 30, 2023 and 2022, respectively, and reversal of impairment of $6,882,000 and impairment of $1,459,900 of related party investment for the nine months ended September 30, 2023 and 2022, respectively) (246,100) 6,882,000 (1,459,900)
Reversal of write-off notes receivable 400,000 [1]
Interest expense (318) (429)
Total other income (expenses) 18,488 (222,459) 7,349,638 (1,347,582)
(LOSS) INCOME BEFORE INCOME TAX (118,057) (452,805) 6,570,021 (2,413,299)
Income tax expense (2,937) (6,563) (1,536)
NET (LOSS) INCOME (120,994) (452,805) 6,563,458 [1] (2,414,835) [1]
Net loss (income) attributable to non-controlling interest 3,865 (78,675) 17,820 (96,107)
NET (LOSS) INCOME ATTRIBUTED TO COMMON SHAREHOLDERS OF GREENPRO CAPITAL CORP. (117,129) (531,480) 6,581,278 (2,510,942)
Other comprehensive loss:        
- Foreign currency translation loss (8,407) (143,440) (140,196) (295,309)
COMPREHENSIVE (LOSS) INCOME $ (125,536) $ (674,920) $ 6,441,082 $ (2,806,251)
NET INCOME (LOSS) PER SHARE, BASIC $ (0.02) $ (0.07) $ 0.85 $ (0.32)
NET INCOME (LOSS) PER SHARE, DILUTED $ (0.02) $ (0.07) $ 0.85 $ (0.32)
WEIGHTED AVERAGE NUMBER OF COMMON STOCK OUTSTANDING, BASIC [2] 7,575,813 7,873,276 7,764,032 7,868,708
WEIGHTED AVERAGE NUMBER OF COMMON STOCK OUTSTANDING, DILUTED [2] 7,575,813 7,873,276 7,764,032 7,868,708
Service [Member]        
REVENUES:        
Total revenue $ 1,043,360 $ 628,295 $ 2,239,354 $ 1,760,880
COST OF REVENUES:        
Total cost of revenues (219,865) (103,093) (374,048) (239,437)
Real Estate [Member]        
REVENUES:        
Total revenue 652,788 839,661
COST OF REVENUES:        
Total cost of revenues (445,746) (573,087)
Rental Revenue [Member]        
REVENUES:        
Total revenue 27,612 25,356 70,238 89,686
COST OF REVENUES:        
Total cost of revenues $ (9,629) $ (10,489) $ (28,315) $ (33,189)
[1] Revenues and costs are attributed to countries based on the location where the entities operate.
[2] Weighted average shares outstanding and per share amounts have been adjusted for the periods shown to reflect the 10-for-1 reverse stock split effected on July 28, 2022 on a retroactive basis as described in Note 1.
v3.23.3
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($)
 3 Months Ended 9 Months Ended
Jul. 28, 2022
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Defined Benefit Plan Disclosure [Line Items]          
Cost of service revenue from related parties [1]       $ 402,363 $ 845,713
Reversal of impairment   $ 0   6,882,000  
Related party investments     $ 246,100   1,459,900
Stockholders equity reverse stock split 10-for-1        
Related Party [Member]          
Defined Benefit Plan Disclosure [Line Items]          
Service revenue from related parties   648,377 41,431 1,232,526 548,602
Cost of service revenue from related parties   23,280 0 23,280 0
General and administrative expense, related parties   13,687 17,461 90,407 53,689
Other income from related parties   $ 3,425 $ 1,123 $ 10,158 $ 1,123
[1] Revenues and costs are attributed to countries based on the location where the entities operate.
v3.23.3
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)
Common Stock [Member]
Additional Paid-in Capital [Member]
Comprehensive Income [Member]
Retained Earnings [Member]
Noncontrolling Interest [Member]
Total
Beginning balance, value at Dec. 31, 2021 $ 7,867 $ 50,102,738 $ (26,863) $ (31,271,808) $ 226,500 $ 19,038,434
Beginning balance, shares at Dec. 31, 2021 [1] 7,867,169          
Foreign currency translation (295,309) (295,309)
Net (loss) income (2,510,942) 96,107 (2,414,835) [2]
Roundup of fractional shares upon reverse stock split $ 9 (9)
Roundup of fractional shares upon reverse stock split, shares [1] 8,644          
Ending balance, value at Sep. 30, 2022 $ 7,876 50,102,729 (322,172) (33,782,750) 322,607 16,328,290
Ending balance, shares at Sep. 30, 2022 [1] 7,875,813          
Beginning balance, value at Jun. 30, 2022 $ 7,867 50,102,738 (178,732) (33,251,270) 243,932 16,924,535
Beginning balance, shares at Jun. 30, 2022 [1] 7,867,169          
Foreign currency translation (143,440) (143,440)
Net (loss) income (531,480) 78,675 (452,805)
Roundup of fractional shares upon reverse stock split $ 9 (9)
Roundup of fractional shares upon reverse stock split, shares [1] 8,644          
Ending balance, value at Sep. 30, 2022 $ 7,876 50,102,729 (322,172) (33,782,750) 322,607 16,328,290
Ending balance, shares at Sep. 30, 2022 [1] 7,875,813          
Beginning balance, value at Dec. 31, 2022 $ 7,876 50,102,729 (224,891) (37,622,680) 315,184 12,578,218
Beginning balance, shares at Dec. 31, 2022 [1] 7,875,813          
Foreign currency translation (140,196) (140,196)
Net (loss) income 6,581,278 (17,820) 6,563,458 [2]
Cancellation of shares resulting from termination of investment $ (300) (7,205,700) (7,206,000)
Cancellation of shares resulting from termination of investment, shares (300,000)          
Ending balance, value at Sep. 30, 2023 $ 7,576 42,897,029 (365,087) (31,041,402) 297,364 11,795,480
Ending balance, shares at Sep. 30, 2023 [1] 7,575,813          
Beginning balance, value at Jun. 30, 2023 $ 7,576 42,897,029 (356,680) (30,924,273) 301,229 11,924,881
Beginning balance, shares at Jun. 30, 2023 [1] 7,575,813          
Foreign currency translation (8,407) (8,407)
Net (loss) income (117,129) (3,865) (120,994)
Ending balance, value at Sep. 30, 2023 $ 7,576 $ 42,897,029 $ (365,087) $ (31,041,402) $ 297,364 $ 11,795,480
Ending balance, shares at Sep. 30, 2023 [1] 7,575,813          
[1] Share activity (number of shares or both number and amount of shares) has been adjusted for the periods shown to reflect the 10-for-1 reverse stock split effected on July 28, 2022 on a retroactive basis as described in Note 1.
[2] Revenues and costs are attributed to countries based on the location where the entities operate.
v3.23.3
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical)
Jul. 28, 2022
Statement of Stockholders' Equity [Abstract]  
Stockholders equity reverse stock split 10-for-1
v3.23.3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Cash flows from operating activities:    
Net income (loss) [1] $ 6,563,458 $ (2,414,835)
Adjustments to reconcile net income (loss) to net cash used in operating activities:    
Depreciation and amortization 107,827 119,084
Amortization of right-of-use assets 66,617 62,110
Amortization of finance lease right-of-use asset 1,950
Reversal of write-off notes receivable (400,000) [1]
(Reversal of impairment) impairment of other investment-related party (6,882,000) 1,459,900
Loss on forfeiture of other investment 1,650
Provision for bad debts 784
Gain on sale of real estate held for sale (266,574)
Fair value gains of derivative liabilities associated with warrants (1) (9,884)
Changes in operating assets and liabilities:    
Accounts receivable, net (236,494) (39,411)
Prepaids and other current assets 92,462 (625,718)
Deferred cost of revenue 85,126 (82,424)
Accounts payable and accrued liabilities (133,386) (429,321)
Operating lease liabilities (67,832) (66,597)
Income tax payable 2,032 (2,342)
Deferred revenue (493,333) 136,198
Net cash used in operating activities (1,293,574) (2,157,380)
Cash flows from investing activities:    
Purchase of property and equipment (4,993) (2,244)
Proceeds from disposal of other investment 500
Purchase of other investments (500) (1,250)
Initial payment of finance lease right-of-use asset (9,717)
Proceeds from real estate held for sale 839,661
Net cash (used in) provided by investing activities (14,710) 836,167
Cash flows from financing activities:    
Principal payment of finance lease liabilities (1,086)
Advances to related parties (465,677) (416,382)
Collection of notes receivable 400,000
Net cash used in financing activities (66,763) (416,382)
Effect of exchange rate changes in cash and cash equivalents 22,797 45,190
NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (1,352,250) (1,692,405)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD 3,911,535 5,338,571
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD 2,559,285 3,646,166
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Cash paid for income tax 4,423 3,495
Cash paid for interest 429
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Balance payment of finance lease right-of-use asset by finance lease liabilities $ 18,530
[1] Revenues and costs are attributed to countries based on the location where the entities operate.
v3.23.3
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 9 Months Ended
Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Greenpro Capital Corp. (the “Company” or “GRNQ”) was incorporated on July 19, 2013 in the state of Nevada. The Company currently provides a wide range of business consulting and corporate advisory services, including cross-border listing advisory services, tax planning, advisory and transaction services, record management services, and accounting outsourcing services. Our focus is on companies located in Asia and Southeast Asia, including Hong Kong, Malaysia, China, Thailand, and Singapore. As part of our business consulting and corporate advisory business segment, Greenpro Venture Capital Limited provides a business incubator for start-up companies and focuses on investments in select start-up and high growth potential companies. In addition to our business consulting and corporate advisory business segment, we operate another business segment that focuses on the acquisition and rental of real estate properties held for investment and the acquisition and sale of real estate properties held for sale.

 

Basis of presentation and principles of consolidation

 

The accompanying unaudited condensed consolidated financial statements as of and for the nine months ended September 30, 2023 and 2022 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) that permit reduced disclosure for interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the period ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. The Condensed Consolidated Balance Sheet information as of December 31, 2022 was derived from the Company’s audited Consolidated Financial Statements as of and for the year ended December 31, 2022 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 31, 2023. These financial statements should be read in conjunction with that report.

 

The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries and majority-owned subsidiaries which the Company controls and entities for which the Company is the primary beneficiary. For those consolidated subsidiaries where the Company’s ownership is less than 100%, the outside shareholders’ interests are shown as noncontrolling interests in equity. Acquired businesses are included in the consolidated financial statements from the date on which control is transferred to the Company. Subsidiaries are deconsolidated from the date that control ceases. All inter-company accounts and transactions have been eliminated in consolidation.

 

Going concern

 

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. During the nine months ended September 30, 2023, the Company recorded net cash used in operations of $1,293,574, and as of September 30, 2023, the Company incurred accumulated deficit of $31,041,402. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date that the financial statements are issued. In addition, the Company’s independent registered public accounting firm, in its report on the Company’s December 31, 2022 financial statements, has expressed substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

The Company’s ability to continue as a going concern is dependent upon profitable future operations, positive cash flows and additional financing. Despite the amount of funds that we have raised in the past, no assurance can be given that any future financing, if needed, will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, if needed, it may contain undue restrictions on its operations, in the case of debt financing, or cause substantial dilution for its stockholders, in the case of equity financing.

 

 

Certain effects of reverse stock split

 

On July 19, 2022, the Company filed a Certificate of Change with the Secretary of State of the State of Nevada (the “Certificate of Change”) to effect a reverse split of the Company’s Common Stock at a ratio of 10-for-1 (the “Reverse Stock Split”), effective as of July 28, 2022. On that date, every 10 issued and outstanding shares of the Company’s Common Stock were automatically converted into one outstanding share of Common Stock. As a result of the Reverse Stock Split, the number of the outstanding shares of Common Stock decreased from 78,671,688 (pre-split) shares to 7,875,813 (post-split) shares. In addition, by reducing the number of outstanding shares, the Company’s loss per share in all prior periods increased by a factor of 10. The Reverse Stock Split affected all shares of Common Stock outstanding immediately prior to the effective time of the Reverse Stock Split. In addition, the Reverse Stock Split effected a reduction in the number of shares of Common Stock issuable upon the exercise of the warrants outstanding immediately prior to the effectiveness of the Reverse Stock Split, resulting in a reduction from 53,556 (pre-split) shares to 5,356 (post-split) shares (see Note 6).

 

No fractional shares are issued in connection with the Reverse Stock Split. Stockholders who otherwise would be entitled to receive fractional shares because they hold a number of pre-reverse stock split shares of the Company’s Common Stock not evenly divisible by 10, in lieu of a fractional share, are entitled the number of shares rounded up to the nearest whole share. The Company will issue one whole share of the post-Reverse Stock Split Common Stock to any stockholder who otherwise would have received a fractional share as a result of the Reverse Stock Split.

 

The Reverse Stock Split affected all holders of Common Stock uniformly and did not affect any stockholder’s percentage of ownership interest. The par value of the Company’s Common Stock remained unchanged at $0.0001 per share and the number of authorized shares of Common Stock remained the same after the Reverse Stock Split.

 

As the par value per share of the Company’s Common Stock remained unchanged at $0.0001 per share, the change in the Common Stock recorded at par value has been reclassified to additional paid-in-capital on a retroactive basis. All references to shares of Common Stock and per share data for all periods presented in the accompanying condensed consolidated financial statements and notes thereto have been adjusted to reflect the Reverse Stock Split on a retroactive basis.

 

 

COVID-19 pandemic and other global risks

 

As a result of the COVID-19 pandemic and actions taken to slow its spread, the ongoing military conflict between Russia and Ukraine, the armed conflict in Sudan, and other geopolitical and macroeconomic factors beyond our control, the global credit and financial markets have experienced extreme volatility, including diminished liquidity and credit availability, declines in consumer confidence, declines in economic growth, increases in unemployment rates and uncertainty about economic stability.

 

On March 10, 2023, the Federal Deposit Insurance Corporation took control and was appointed receiver of Silicon Valley Bank. While we did not have deposits at Silicon Valley Bank, if other banks and financial institutions enter receivership or become insolvent in the future in response to financial conditions affecting the banking system and financial markets, our ability to access our existing cash, cash equivalents and investments may be threatened and could have a material adverse effect on our business and financial condition. It is possible that further deterioration in credit and financial markets and confidence in economic conditions will occur. If equity and credit markets deteriorate, it may affect our ability to raise equity capital, borrow on our existing facilities, access our existing cash, or make any additional necessary debt or equity financing more difficult to obtain, more costly and/or more dilutive.

 

Use of estimates

 

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant accounting estimates include certain assumptions related to, among others, the allowance for doubtful accounts receivable, impairment analysis of real estate assets and other long-term assets including goodwill, valuation allowance on deferred income taxes, the assumptions used in the valuation of the derivative liabilities, and the accrual of potential liabilities. Actual results may differ from these estimates.

 

 

Cash, cash equivalents, and restricted cash

 

Cash consists of funds on hand and held in bank accounts. Cash equivalents includes demand deposits placed with banks or other financial institutions and all highly liquid investments with original maturities of three months or less, including money market funds. Restricted cash represents cash restricted for the loan collateral requirements as defined in a loan agreement and the minimum paid-up share capital requirement for insurance brokers specified under the Insurance Ordinance of Hong Kong.

 

As of September 30, 2023 and December 31, 2022, cash included funds held by employees of $11,767 and $11,464, respectively, and was held to facilitate payment of expenses in local currencies and to facilitate third-party online payment platforms in which the Company had not set up corporate accounts (WeChat Pay and Alipay).

 

   As of
September 30, 2023		   As of
December 31, 2022		 
   (Unaudited)   (Audited) 
Cash, cash equivalents, and restricted cash          
Denominated in United States Dollar  $881,058   $2,234,242 
Denominated in Hong Kong Dollar   1,358,743    1,201,076 
Denominated in Chinese Renminbi   268,614    381,012 
Denominated in Malaysian Ringgit   50,744    85,940 
Denominated in Euro   -    9,200 
Denominated in Singapore Dollar   4    65 
Denominated in Great British Pound   122    - 
Cash, cash equivalents, and restricted cash  $2,559,285   $3,911,535 

 

Revenue recognition

 

The Company follows the guidance of Accounting Standards Codification (ASC) 606, Revenue from Contracts. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying the contracts or agreements with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients (see Note 2).

 

 

Investments

 

Investments in equity securities

 

The Company accounts for its investments that represent less than 20% ownership, and for which the Company does not have the ability to exercise significant influence, using ASU 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The Company measure investments in equity securities without a readily determinable fair value using a measurement alternative that measures these securities at the cost method minus impairment, if any, plus or minus changes resulting from observable price changes on a non-recurring basis. Gains and losses on these securities are recognized in other income and expenses.

 

On May 18, 2023, the Company decided to terminate its investment in the Fund due to significant impairments suffered since subscription and to cancel the shares issued to the Fund due to the Fund’s failure to provide consideration for the shares. As a result, 300,000 shares of the Company’s restricted Common Stock were cancelled, the value of Common Stock of $300 and the value of additional paid-in capital of $7,205,700, in aggregate of $7,206,000, were reversed accordingly. The Company recorded a reversal of impairment of other investment of $6,882,000 during the nine-month period ended September 30, 2023.

 

On September 30, 2023, the Company had total twenty-five (25) investments in equity securities without readily determinable fair values, all were related party investments with aggregate value of $5,082,106. In which, ten (10) investments in equity securities without readily determinable fair values were also related party investments, all were fully impaired and with $nil value (see Note 3).

 

On December 31, 2022, the Company had total twenty-seven (27) investments in equity securities without readily determinable fair values, all were related party investments with aggregate value of $5,406,106. In which, eleven (11) investments in equity securities without readily determinable fair values were also related party investments, all were fully impaired and with $nil value (see Note 3).

 

Leases

 

The Company determines if a contract is or contains a lease at inception of the contract or modification of the contract. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. Control over the use of the identified asset means the lessee has both (a) the right to obtain substantially all of the economic benefits from the use of the asset and (b) the right to direct the use of the asset.

 

Finance and operating lease right-of-use (“ROU”) assets and liabilities are recognized based on the present value of future minimum lease payments over the expected lease term at commencement date. As the implicit rate is not determinable in most of the Company’s leases, management uses the Company’s incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The expected lease term includes options to extend or terminate the lease when it is reasonably certain the Company will exercise such option. Lease expense for minimum lease payments is recognized on a straight-line basis over the expected lease term.

 

The Company’s lease arrangements have lease and non-lease components. Leases with an expected term of 12 months or less are not accounted for on the balance sheet and the related lease expense is recognized on a straight-line basis over the expected lease term.

 

The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

 

See Note 4 for more information regarding leases.

 

Derivative financial instruments

 

Derivative financial instruments consist of financial instruments that contain a notional amount and one or more underlying variables such as interest rate, security price, variable conversion rate or other variables, require no initial net investment and permit net settlement. The derivative financial instruments may be free-standing or embedded in other financial instruments. The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. The Company follows the provision of ASC 815, Derivatives and Hedging for derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. At each reporting date, the Company reviews its convertible securities to determine that their classification is appropriate.

 

Net income (loss) per share

 

Basic income (loss) per share is computed by dividing the net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is calculated by dividing the net income (loss) by the weighted average number of common shares outstanding during the period plus any potentially dilutive shares related to the issuance of shares from stock warrants. For the nine months ended September 30, 2023, there were no dilutive shares outstanding, while for the nine months ended September 30, 2022, the only outstanding Common Stock equivalents were warrants for 5,356 potentially dilutive shares outstanding. These warrants have been excluded from the calculation of weighted average shares as the effect would have been anti-dilutive and therefore, basic and diluted net income (loss) per share were the same.

 

 

Foreign currency translation

 

The consolidated financial statements are presented in United States Dollar (“US$”), which is the functional and reporting currency of the Company. In addition, the Company’s operating subsidiaries maintain their books and records in their respective functional currency, which consists of the Malaysian Ringgit (“MYR”), Chinese Renminbi (“RMB”) and Hong Kong Dollar (“HK$”).

 

In general, for consolidation purposes, assets and liabilities of the Company’s subsidiaries whose functional currency is not the US$, are translated into US$ using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of a foreign subsidiary are recorded as a separate component of accumulated other comprehensive income or loss within stockholders’ equity.

 

Translation of amounts from the local currencies of the Company into US$ has been made at the following exchange rates for the respective periods:

 

   2023   2022 
   As of and for the nine months ended
September 30,		 
   2023   2022 
Period-end MYR : US$1 exchange rate   4.70    4.64 
Period-average MYR : US$1 exchange rate   4.53    4.37 
Period-end RMB : US$1 exchange rate   7.28    7.12 
Period-average RMB : US$1 exchange rate   7.06    6.64 
Period-end HK$ : US$1 exchange rate   7.83    7.85 
Period-average HK$ : US$1 exchange rate   7.84    7.84 

 

Fair value of financial instruments

 

The Company follows the guidance of ASC 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:

 

● Level 1 : Observable inputs such as quoted prices in active markets;
   
● Level 2 : Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
   
● Level 3 : Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions

 

The Company believes the carrying amount reported in the balance sheet for cash and cash equivalents, accounts receivable, prepaids and other current assets, accounts payable and accrued liabilities, income tax payable, deferred cost of revenue, deferred revenue, and due from or due to related parties, approximate their fair values because of the short-term nature of these financial instruments.

 

As of September 30, 2023 and December 31, 2022, the Company’s balance sheet includes Level 3 liabilities comprised of the fair value of derivative liabilities of $0 and $1, respectively (see Note 5). The following table sets forth a summary of the changes in the estimated fair value of our derivative during the nine-month period ended September 30, 2023:

 

  

Derivative

liability

 
Fair value as of December 31, 2022 (Audited)  $1 
Fair value gain of derivative liability associated with warrants   (1)
Fair value as of September 30, 2023 (Unaudited)  $- 

 

 

Concentrations of risks

 

For the three months ended September 30, 2023, two customers accounted for 56% (33% and 23%) of revenues, as compared to the three months ended September 30, 2022 where three customers accounted for 67% (28%, 22% and 17%) of revenues. For the nine months ended September 30, 2023 and 2022, three customers accounted for 40% (15%, 14% and 11%) and two customers accounted for 24% (13% and 11%) of revenues, respectively.

 

Three customers accounted for 77% (29%, 24% and 24%) and two customers accounted for 77% (57% and 20%) of net accounts receivable as of September 30, 2023 and December 31, 2022, respectively.

 

For the three and nine months ended September 30, 2023 and 2022, no vendor accounted for 10% or more of the Company’s cost of revenues.

 

Two vendors accounted for 92% (72% and 20%) and three vendors accounted for 59% (29%, 19% and 11%) of accounts payable as of September 30, 2023 and December 31, 2022, respectively.

 

Economic and political risks

 

Substantially all the Company’s services are conducted in the Asian region, primarily in Hong Kong, Malaysia, and the People’s Republic of China (“PRC”). Among other risks, the Company’s operations in Malaysia are subject to the risks of restrictions on transfer of funds; export duties, quotas, and embargoes; domestic and international customs and tariffs; changing taxation policies; foreign exchange restrictions; and political conditions and governmental regulations in Malaysia.

 

The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic, and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation.

 

Recent accounting pronouncements

 

In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40). This ASU reduces the number of accounting models for convertible debt instruments and convertible preferred stock and amends the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions. In addition, this ASU improves and amends the related earnings per share guidance. This standard became effective for the Company beginning on January 1, 2023. Adoption is either a modified retrospective method or a fully retrospective method of transition. The Company adopted this guidance effective January 1, 2023, and the adoption of this standard did not have a material impact on its consolidated financial statements.

 

In November 2019, the FASB issued ASU No. 2019-10, which to update the effective date of ASU No. 2016-13 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses, leases, and hedging standard. The new effective date for these preparers is for fiscal years beginning after December 15, 2022. ASU 2019-05 is effective for the Company for annual and interim reporting periods beginning January 1, 2023, as the Company is qualified as a smaller reporting company. The Company has accordingly adopted ASUs 2016-13 and 2019-05 in the preparation of its unaudited condensed consolidated financial statements. The adoption of the accounting standards has no material impact on the unaudited condensed consolidated financial statements for the nine months ended and as at September 30, 2023.

 

Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements.

 

 
v3.23.3
REVENUE FROM CONTRACTS WITH CUSTOMERS
 9 Months Ended
Sep. 30, 2023
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS

NOTE 2 - REVENUE FROM CONTRACTS WITH CUSTOMERS

 

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

 

Revenue from services

 

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

 

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

 

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

 

Revenue from the sale of real estate properties

 

The Company follows the guidance of ASC 610-20, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (“ASC 610-20”) in accounting for the sale of real estate properties. The Company records the sale based on completed performance obligations, which typically occurs upon the transfer of ownership of a real estate asset to the buyer. During the three and nine months ended September 30, 2023, no real estate property was sold. For the three and nine months ended September 30, 2022, the Company recorded revenues from the sale of two and three real estate property units, respectively.

 

Revenue from the rental of real estate properties

 

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

 

Cost of revenues

 

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

 

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

 

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

 

 

The following table provides information about disaggregated revenue based on revenue by service lines and revenue by geographic area:

  

   2023   2022 
   Three Months Ended September 30, 
   2023   2022 
   (Unaudited)   (Unaudited) 
Revenue by service lines:          
Corporate advisory - Non-listing services  $448,151   $340,441 
Corporate advisory - Listing services   595,209    287,854 
Rental of real estate properties   27,612    25,356 
Sale of real estate properties   -    652,788 
Total revenue  $1,070,972   $1,306,439 

 

   Three Months Ended September 30, 
   2023   2022 
   (Unaudited)   (Unaudited) 
Revenue by geographic area:          
Hong Kong  $914,694   $856,319 
Malaysia   82,618    119,390 
China   73,660    330,730 
Total revenue  $1,070,972   $1,306,439 

 

   2023   2022 
   Nine Months Ended September 30, 
   2023   2022 
   (Unaudited)   (Unaudited) 
Revenue by service lines:          
Corporate advisory - Non-listing services  $1,079,000   $1,117,285 
Corporate advisory - Listing services   1,160,354    643,595 
Rental of real estate properties   70,238    89,686 
Sale of real estate properties   -    839,661 
Total revenue  $2,309,592   $2,690,227 

 

   Nine Months Ended September 30, 
   2023   2022 
   (Unaudited)   (Unaudited) 
Revenue by geographic area:          
Hong Kong  $1,810,445   $1,594,017 
Malaysia   236,847    387,824 
China   262,300    708,386 
Total revenue  $2,309,592   $2,690,227 

 

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

 

Deferred Cost of Revenue

 

Deferred cost of revenue mainly consists of the direct costs associated with the services provided. For the service contracts where the Company’s performance obligation is not completed, deferred cost of revenue is recorded when the costs incurred.

 

Deferred Revenue

 

Deferred revenue primarily consists of deferred service revenue. For the service contracts where the Company’s performance obligation is not completed, deferred revenue is recorded for any payments received in advance by the Company before the completion of its performance obligation. Changes in deferred revenue were as follows:

 

   Nine Months Ended
September 30, 2023		 
   (Unaudited) 
Deferred revenue, January 1, 2023  $1,834,244 
New contract liabilities   667,021 
Performance obligations satisfied   (1,160,354)
Deferred revenue, September 30, 2023  $1,340,911 

 

Deferred cost of revenue and deferred revenue at September 30, 2023 and December 31, 2022 are classified as current assets or current liabilities and totaled:

 

   As of
September 30, 2023		   As of
December 31, 2022		 
   (Unaudited)   (Audited) 
Deferred cost of revenue  $83,479   $168,605 
Deferred revenue  $1,340,911   $1,834,244 

 

 
v3.23.3
OTHER INVESTMENTS
 9 Months Ended
Sep. 30, 2023
Investments, Debt and Equity Securities [Abstract]  
OTHER INVESTMENTS

NOTE 3 - OTHER INVESTMENTS

  

   As of   As of 
   September 30, 2023   December 31, 2022 
   (Unaudited)   (Audited) 
Investments in equity securities without readily determinable fair values of affiliates:          
(1) Greenpro Trust Limited (a related party)  $11,981   $11,981 
(2) Other related parties   5,070,125    5,394,125 
Total  $5,082,106   $5,406,106 

 

Investments in equity securities without readily determinable fair values of affiliates (related parties):

 

Equity securities without readily determinable fair values are investments without readily determinable market values. The Company adopted the guidance of ASC 321, Investments - Equity Securities, which allows an entity to measure investments in equity securities without a readily determinable fair value using a measurement alternative that measures these securities at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investment of same issuer (the “Measurement Alternative”). The fair value of equity securities without readily determinable fair values that have been remeasured due to impairment are classified within Level 3. Management assesses each of these investments on an individual basis. Additionally, on a quarterly basis, management is required to make a qualitative assessment of whether the investment is impaired.

 

For the three and nine months ended September 30, 2023, the Company recognized the reversal of impairment of $0 and $6,882,000, respectively for one of the investments in equity securities without readily determinable fair values.

 

For the three and nine months ended September 30, 2022, the Company recognized an impairment loss of $246,100 and $1,459,900, respectively for three of the investments in equity securities without readily determinable fair values.

 

During the year ended December 31, 2022, the Company recognized impairment of $4,208,029 for six of its total investments in equity securities without readily determinable fair values.

 

In addition, the Company recorded its equity securities without readily determinable fair values at cost. For these cost method investments, we recorded as other investments in our condensed consolidated balance sheets. We reviewed all our cost method investments quarterly to determine if impairment indicators were present; however, we were not required to determine fair value of these investments unless impairment indicators exist. When impairment indicators exist, we generally adopt the valuation methods allowed under ASC820 Fair Value Measurement to evaluate the fair values of our cost method investments approximated or exceeded their carrying values as of September 30, 2023. Our cost method investments had a carrying value of $5,082,106 as of September 30, 2023.

 

 

(a) Celmonze Wellness Corporation:

 

On February 8, 2023, our wholly owned subsidiary, Greenpro Venture Capital Limited (“GVCL”) entered into a subscription agreement with Celmonze Wellness Corporation, a Nevada corporation, which provides beauty and wellness solutions to clients (“Celmonze”). Pursuant to the agreement, GVCL acquired 5,000,000 shares of common stock of Celmonze at a price of $500 or $0.0001 per share. The investment was recognized at a historical cost of $500 under other investments.

 

(b) Innovest Energy Fund:

 

On February 11, 2021, Greenpro Resources Limited, a subsidiary of the Company (“GRL”) entered into a subscription agreement with Innovest Energy Fund, a global multi-asset fund incorporated in the Cayman Islands and principally engaged in developing a multi-faceted suite of products and services for the cryptocurrency industry and economy (the “Fund”). Pursuant to the agreement, GRL agreed to subscribe for $7,206,000 worth of Class B shares of the Fund by issuing 300,000 shares of the Company’s restricted Common Stock, valued at $7,206,000 to the Fund.

 

On May 18, 2023, the Company decided to terminate its investment in the Fund due to significant impairments suffered since subscription and to cancel the shares issued to the Fund due to the Fund’s failure to provide consideration for the shares. As a result, 300,000 shares of the Company’s restricted Common Stock were cancelled, the value of Common Stock of $300 and the value of additional paid-in capital of $7,205,700, in aggregate of $7,206,000, were reversed accordingly. The Company recorded a reversal of impairment of other investment of $6,882,000 during the nine-month period ended September 30, 2023.

 

(c) Simson Wellness Tech Corp.:

 

On February 19, 2021, GVCL entered into a subscription agreement with Simon Wellness Tech Corp., a Nevada corporation, which is a digital platform that acts as middleware for distribution of optical products (“Simson”). Pursuant to the agreement, GVCL acquired 5,000,000 shares of common stock of Simson at a price of $500 or $0.0001 per share. Our investment in Simson was recognized at historical cost of $500 under other investments.

 

In July 2023, GVCL agreed with Simson’s repurchase request, sold back our 5,000,000 owned Simson shares to Simson at $500. We received cash of $500 from Simson in exchange for our return of Simson shares.

 

The Company had cost method investments without readily determinable fair values with a carrying value of $5,082,106 and $5,406,106 as of September 30, 2023, and December 31, 2022, respectively.

 

On September 30, 2023 and December 31, 2022, the carrying values of equity securities without readily determinable fair values are as follows:

 

   As of
September 30, 2023		   As of
December 31, 2022		 
   (Unaudited)   (Audited) 
Original cost          
Balance, beginning of period / year  $15,537,964   $15,545,764 
Additions during the period / year   500    1,250 
Disposals or forfeitures during the period / year   (7,206,500)   (9,050)
Balance, end of period / year   8,331,964    15,537,964 
           
Accumulated impairment          
Balance, beginning of period / year   (10,131,858)   (5,923,829)
Reversal of impairment (Impairment) for the period / year   6,882,000    (4,208,029)
Balance, end of period / year   (3,249,858)   (10,131,858)
           
Net carrying values of equity securities without readily determinable fair values  $5,082,106   $5,406,106 

 

Accumulated impairment of other investments

 

For the three and nine months ended September 30, 2023, the Company recognized a reversal of impairment of $0 and $6,882,000 respectively, for one of the investments in equity securities without readily determinable fair values. As of September 30, 2023 and December 31, 2022, the accumulated impairment loss of other investments was $3,249,858 and $10,131,858, respectively.

 

 
v3.23.3
LEASES
 9 Months Ended
Sep. 30, 2023
Leases  
LEASES

NOTE 4 - LEASES

 

Currently, the Company has an operating lease agreement for one office space in Hong Kong with a term of two years and has a finance lease for a motor vehicle in Malaysia with a term of five years, respectively. Other than these leases, the Company does not have any other leases over the term of one year. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company accounts for the lease and non-lease components of its leases as a single lease component. Lease expense is recognized on a straight-line basis over the lease term.

 

Operating lease or finance lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Generally, the implicit rate of interest in arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The ROU asset includes any lease payments made and excludes lease incentives.

 

The components of lease expense and supplemental cash flow information related to leases for the periods are as follows:

 

   Nine Months Ended
September 30, 2023		   Nine Months Ended
September 30, 2022		 
   (Unaudited)   (Unaudited) 
Lease costs          
Operating lease costs:          
Operating lease cost  $70,623   $64,463 
Short-term lease cost (1)  $14,670   $19,213 
Finance lease costs:          
Interest on lease liabilities  $429   $- 
Amortization of right-of-use asset  $1,950   $- 
           
Other information          
Cash paid for amounts included in the measurement of lease liabilities:          
Operating cash flows for operating leases  $71,834   $68,908 
Operating cash flows for finance leases  $429   $- 
Financing cash flows for finance leases  $1,086   $- 
Non-cash activity:          
Balance payment of ROU asset by finance lease liabilities  $18,530   $- 
Weighted average remaining lease term (in years):          
Operating leases   1.46    0.46 
Finance leases   4.67    - 
Weighted average discount rate:          
Operating leases   4.0%   4.0%
Finance leases   6.9%   - 

 

(1) Includes expenses related to leases with a lease term of more than one month but less than one year.

 

The supplemental balance sheet information related to leases for the periods is as follows:

 

   As of
September 30, 2023		   As of
December 31, 2022		 
   (Unaudited)   (Audited) 
Assets          
Long-term operating lease ROU assets, net (1)  $137,252   $17,510 
Long-term finance lease ROU asset, net (2)   26,363    - 
Total ROU assets  $163,615   $17,510 
           
Liabilities          
Current portion of operating lease liabilities  $93,515   $18,725 
Current portion of finance lease liabilities   3,292    - 
Total current lease liabilities   96,807    18,725 
           
Long-term operating lease liabilities   43,737    - 
Long-term finance lease liabilities   14,190    - 
Total long-term lease liabilities   57,927    - 
Total lease liabilities  $154,734   $18,725 

 

(1) Operating lease ROU assets are measured at cost of $350,818 and $164,771 less accumulated amortization of $213,566 and $147,261 as of September 30, 2023 and December 31, 2022, respectively.
   
(2) Finance lease ROU asset is measured at cost of $28,247 and $0 less accumulated amortization of $1,884 and $0 as of September 30, 2023 and December 31, 2022, respectively.

 

Maturities of the Company’s lease liabilities are as follows:

  

   Operating leases   Finance leases 
   (Unaudited)   (Unaudited) 
Year ending December 31,          
2023 (remaining 3 months)  $24,326   $1,097 
2024   97,303    4,388 
2025   19,879    4,388 
2026   -    4,388 
2027   -    4,388 
2028   -    1,827 
Total future minimum lease payments   141,508    20,476 
Less: Imputed interest/present value discount   (4,256)   (2,994)
Present value of lease liabilities  $137,252   $17,482 
           
Lease obligations          
Current lease obligations  $93,515   $3,292 
Long-term lease obligations   43,737    14,190 
Total lease obligations  $137,252   $17,482 

 

Lease expenses were $27,965 and $85,293 during the three and nine months ended September 30, 2023, respectively, and $28,330 and $83,676 during the three and nine months ended September 30, 2022, respectively.

 

 
v3.23.3
DERIVATIVE LIABILITIES
 9 Months Ended
Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE LIABILITIES

NOTE 5 - DERIVATIVE LIABILITIES

 

On June 12, 2018, warrants exercisable into 53,556 shares of the Company’s Common Stock were issued as placement agent fees related to the Company’s sale of Common Stock. The exercise price of warrants issued by the Company is denominated in United States Dollar, a currency other than the Company’s functional currencies, the HK$, RMB, and MYR. As a result, the warrants are not considered indexed to the Company’s own stock, and the Company characterized the fair value of the warrants as a derivative liability upon issuance.

 

The contractual life of the warrants is based on the expiration date of the warrants, that is the five-year anniversary of the effective date of the public offering on June 13, 2018, and hence the expected expiration of the warrants is June 12, 2023 (the “Expiration”). The derivative liability is re-measured at the end of every reporting period with the change in value reported in the statement of operations.

 

On July 19, 2022, the Company filed a Certificate of Change with the Secretary of State of the State of Nevada (the “Certificate of Change”) to effect a reverse split of the Company’s Common Stock at a ratio of 10-for-1 (the “Reverse Stock Split”), effective as of July 28, 2022. The Reverse Stock Split effected a reduction in the number of shares of Common Stock issuable upon the exercise of the warrants outstanding immediately prior to the effectiveness of the Reverse Stock Split. As a result of the Reverse Stock Split, the number of the outstanding warrants exercisable into the Company’s Common Stock was reduced from 53,556 (pre-split) shares to 5,356 (post-split) shares (see Note 6).

 

Warrant activity including the number of shares and the exercise price per share has been adjusted for all periods presented in this Quarterly Report to reflect the Reverse Stock Split effected on July 28, 2022 on a retroactive basis.

 

At September 30, 2023, the Company did not have any outstanding warrants exercisable into the Company’s Common Stock as all call warrants were not exercised on June 12, 2023 (the “Expiration”). At the Expiration, the Company’s Common Stock traded at or below the exercise price (120% of the public offering price), that is $72 (post-split) per share or $7.2 (pre-split) per share.

 

During the nine months ended September 30, 2023, the Company recorded a decrease in fair value of derivatives of $1.

 

The balance of the derivative liabilities related to warrants was $0 and $1 at September 30, 2023 and December 31, 2022, respectively.

 

The derivative liabilities related to warrants were valued using the Black-Scholes-Merton valuation model with the following assumptions:

  

   As of
June 12, 2023
(expiration)		   As of
December 31, 2022		 
   (Unaudited)   (Audited) 
Risk-free interest rate  $3.87%  $3.97%
Expected volatility   162%   168%
Contractual life (in years)   0.0 years    0.4 years 
Expected dividend yield   0.00%   0.00%
Fair value of warrants  $-   $1 

 

The risk-free interest rate is based on the yield available on U.S. Treasury securities. The Company estimates volatility based on the historical volatility of its Common Stock. The contractual life of the warrants is based on the expiration date of the warrants that is the five-year anniversary of the effective date of the public offering on June 13, 2018. The expected expiration of the warrants is June 12, 2023 (the “Expiration”). The expected dividend yield is based on the fact that the Company has not paid dividends to common shareholders in the past and does not expect to pay dividends to common shareholders in the future.

 

On June 12, 2023 (the “Expiration), no warrants were exercised as the trading price of the Company’s Common Stock was at or below the exercise price of $72 (post-split) per share or $7.2 (pre-split) per share. At the Expiration, the closing price of the Company’s Common Stock was $1.78 per share.

 

 
v3.23.3
WARRANTS
 9 Months Ended
Sep. 30, 2023
Warrants  
WARRANTS

NOTE 6 - WARRANTS

 

On June 13, 2018, the Company granted to the placement agent and issued warrants exercisable into 53,556 shares of Common Stock at an exercise price of $7.20 per share and the expected expiration of the warrants is June 12, 2023 (the “Expiration”). Since the Expiration, the Company does not expect to issue another warrants in the next twelve months.

 

On July 19, 2022, the Company filed a Certificate of Change with the Secretary of State of the State of Nevada (the “Certificate of Change”) to effect a reverse split of the Company’s Common Stock at a ratio of 10-for-1 (the “Reverse Stock Split”), effective as of July 28, 2022. The Reverse Stock Split effected a reduction in the number of shares of Common Stock issuable upon the exercise of the warrants outstanding immediately prior to the effectiveness of the Reverse Stock Split. As a result of the Reverse Stock Split, the number of the outstanding warrants exercisable into the Company’s Common Stock was reduced from 53,556 (pre-split) shares to 5,356 (post-split) shares (see Note 5) and the exercise price of the warrants was adjusted from $7.2 (pre-split) per share to $72 (post-split) per share.

 

Warrant activity including the number of shares and the exercise price per share has been adjusted for all periods presented in this Quarterly Report to reflect the Reverse Stock Split effected on July 28, 2022 on a retroactive basis.

 

A summary of warrant activity during the nine months ended September 30, 2023 is presented below:

   

           Remaining 
   Number       Contractual 
   of   Exercise   Life 
   Shares   Price   (in Years) 
             
Warrants outstanding at December 31, 2022   5,356   $72.00            
Granted   -    -      
Exercised   -    -      
Expired   5,356    72.00      
Warrants outstanding at September 30, 2023 (Unaudited)   -   $-    - 
Warrants exercisable at September 30, 2023 (Unaudited)   -   $-    - 

 

On June 12, 2023 (the “Expiration), no warrants were exercised as the trading price of the Company’s Common Stock was at or below the exercise price of $72 (post-split) per share or $7.2 (pre-split) per share. At the Expiration, the closing price of the Company’s Common Stock was $1.78 per share.

 

At September 30, 2023, the value of the warrants was $nil as all warrants expired, no warrants were outstanding and exercisable.

 

 
v3.23.3
RELATED PARTY TRANSACTIONS
 9 Months Ended
Sep. 30, 2023
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 7 - RELATED PARTY TRANSACTIONS

 SCHEDULE OF DUE FROM RELATED PARTIES 

Accounts receivable from related parties:  September 30, 2023   December 31, 2022 
   (Unaudited)   (Audited) 
Accounts receivable, net - related parties          
- Related party B (net of allowance of $220 and $1,750 as of September 30 , 2023 and December 31, 2022, respectively)  $308,621   $129,250 
- Related party K (net of allowance of $0 and $2 as of September 30, 2023 and December 31, 2022, respectively)   -    42 
Total  $308,621   $129,292 

 

Prepaid to a related party:  September 30, 2023   December 31, 2022 
   (Unaudited)   (Audited) 
Prepayment          
- Related party B  $120,000   $80,000 

 

Due from related parties:  September 30, 2023   December 31, 2022 
   (Unaudited)   (Audited) 
Due from related parties          
- Related party B  $1,703   $4,708 
- Related party D   654,877    200,000 
- Related party G   3,173    1,064 
- Related party H   60,000    60,000 
- Related party I   23    - 
Total  $719,776   $265,772 

 

The amounts due from related parties are interest-free, unsecured and repayable on demand.

  

Due to related parties:  September 30, 2023   December 31, 2022 
   (Unaudited)   (Audited) 
Due to related parties          
- Related party A  $32,230   $47,135 
- Related party B   62,493    2,275 
- Related party E   1,434    - 
- Related party J   335,669    390,333 
- Related party K   4,752    8,508 
Total  $436,578   $448,251 

 

The amounts due to related parties are interest-free, unsecured, and repayable on demand.

 SCHEDULE OF INCOME FROM OR EXPENSES TO RELATED PARTIES 

Deferred cost of revenue to a related party:  September 30, 2023   December 31, 2022 
   (Unaudited)   (Audited) 
Deferred cost of revenue to a related party                         
- Related party B  $-   $11,640 

 

Deferred revenue from related parties:  September 30, 2023   December 31, 2022 
   (Unaudited)   (Audited) 
Deferred revenue from related parties          
- Related party B  $236,800   $749,400 
- Related party E   -    100,000 
Total  $236,800   $849,400 

 

 

  2023   2022 
   For the nine months ended September 30, 
Related party revenue and expense transactions:  2023   2022 
   (Unaudited)   (Unaudited) 
         
Service revenue from related parties          
- Related party A  $3,327   $22,827 
- Related party B   937,823    482,102 
- Related party D   28,384    24,183 
- Related party E   255,463    6,141 
- Related party G   7,407    12,480 
- Related party I   -    824 
- Related party K   122    45 
Total  $1,232,526   $548,602 
           
Cost of revenues to a related party          
- Related party B  $23,280   $- 
           
General and administrative expenses to related parties          
- Related party A  $-   $4,929 
- Related party B   21,780    4,235 
- Related party D   24,559    - 
- Related party I   11,911    12,368 
- Related party K   32,157    32,157 
Total  $90,407   $53,689 
           
Other income from related parties:          
- Related party B  $2,297   $- 
- Related party D   7,861    1,123 
Other income from related parties  $10,158   $1,123 
           
Reversal of impairment (impairment) of other investment:          
- Related party B  $6,882,000   $(1,459,900)

 

Related party A is under common control of Mr. Loke Che Chan Gilbert, the Company’s CFO, and a major shareholder.

 

Related party B represents those companies where the Company owns a certain percentage ranging from 1% to 18% of their company shares.

 

Related party C is controlled by a director of a wholly owned subsidiary of the Company.

 

Related party D represents a company that we have determined that we can significantly influence based on our common business relationships.

 

Related party E represents companies whose CEO is a consultant to the Company, and who is also a director of Aquarius Protection Fund, a shareholder in the Company.

 

Related party F represents a family member of Mr. Loke Che Chan Gilbert, the Company’s CFO and a major shareholder.

 

Related party G is under common control of Mr. Lee Chong Kuang, the Company’s CEO and a major shareholder.

 

Related party H represents a company in which we currently have an approximate 48% equity-method investment. On September 30, 2023, and December 31, 2022, amounts due from related party H are unsecured, bear no interest, and are payable upon demand. During 2018, the Company acquired 49% of related party H for total consideration of $368,265. On December 31, 2018, the Company determined that its investment in related party H was impaired and recorded an impairment of other investments of $368,265.

 

Related party I is controlled by a family member of Mr. Lee Chong Kuang, the Company’s CEO and a major shareholder.

 

Related party J represents the non-controlling interest in the Company’s subsidiary that owns its real estate held for sale. The amounts due to related party J are unsecured, bear no interest, are payable on demand, and related to the initial acquisition of the real estate held for sale.

 

Related party K represents shareholders and directors of the Company. Due from related party K represents the amounts paid by the Company to third parties on behalf of our shareholders or directors. On the other hand, due to related party K represents the amounts paid by the shareholders or directors to third parties on behalf of the Company. The amounts due from or due to related party K are non-interest bearing, and are due on demand.

 

 
v3.23.3
SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
SEGMENT INFORMATION

NOTE 8 - SEGMENT INFORMATION

 

ASC 280, “Segment Reporting” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organization structure as well as information about services categories, business segments and major customers in financial statements. The Company has two reportable segments that are based on the following business units: service business and real estate business. In accordance with the “Segment Reporting” Topic of the ASC, the Company’s chief operating decision maker has been identified as the Chief Executive Officer and President, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Existing guidance, which is based on a management approach to segment reporting, establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products and services, major customers, and the countries in which the entity holds material assets and reports revenue. All material operating units qualify for aggregation under “Segment Reporting” due to their similar customer base and similarities in economic characteristics; nature of products and services; and procurement, manufacturing, and distribution processes. The Company operates two reportable business segments:

 

● Service business - provision of corporate advisory and business solution services
   
● Real estate business - leasing or trading of commercial real estate properties in Hong Kong and Malaysia

 

The Company had no inter-segment sales for the periods presented. Summarized financial information concerning the Company’s reportable segments is shown as below:

 

(a) By Categories

 

   Real estate business   Service business   Corporate   Total 
   For the nine months ended September 30, 2023 (Unaudited) 
   Real estate business   Service business   Corporate   Total 
                 
Revenues  $70,238   $2,239,354   $-   $2,309,592 
Cost of revenues   (28,315)   (374,048)   -    (402,363)
Depreciation and amortization expenses   (23,758)   (152,285)   (351)   (176,394)
Reversal of impairment of other investment   -    -    6,882,000    6,882,000 
Reversal of write-off notes receivable   -    -    400,000    400,000 
Net (loss) income   (44,550)   (371,709)   6,979,717    6,563,458 
                     
Total assets   1,704,170    5,675,545    6,976,401    14,356,116 
Capital expenditures for long-lived assets  $-   $33,240   $-   $33,240 

 

   Real estate
business		   Service
business		   Corporate   Total 
   For the nine months ended September 30, 2022 (Unaudited) 
   Real estate
business		   Service
business		   Corporate   Total 
                 
Revenues  $929,347   $1,760,880   $-   $2,690,227 
Cost of revenues   (606,276)   (239,437)   -    (845,713)
Depreciation and amortization expenses   (23,404)   (153,798)   (3,992)   (181,194)
Impairment   -    -    (1,459,900)   (1,459,900)
Net income (loss)   240,271    (1,974,981)   (680,125)   (2,414,835)
                     
Total assets   1,850,721    6,914,212    10,637,772    19,402,705 
Capital expenditures for long-lived assets  $-   $2,244   $-   $2,244 

 

(b) By Geography*

 

   Hong Kong   Malaysia   China   Total 
   For the nine months ended September 30, 2023 (Unaudited) 
   Hong Kong   Malaysia   China   Total 
                 
Revenues*  $1,810,445   $236,847   $262,300   $2,309,592 
Cost of revenues*   (228,919)   (130,948)   (42,496)   (402,363)
Depreciation and amortization expenses*   (72,287)   (23,940)   (80,167)   (176,394)
Reversal of impairment of other investment*   6,882,000    -    -    6,882,000 
Reversal of write-off notes receivable*   400,000    -    -    400,000 
Net income (loss)*   6,931,606    (383,491)   15,343    6,563,458 
                     
Total assets*   10,120,222    1,654,668    2,581,226    14,356,116 
Capital expenditures for long-lived assets*  $1,511   $30,217   $1,512   $33,240 

 

   Hong Kong   Malaysia   China   Total 
   For the nine months ended September 30, 2022 (Unaudited) 
   Hong Kong   Malaysia   China   Total 
                 
Revenues*  $1,594,017   $387,824   $708,386   $2,690,227 
Cost of revenues*   (614,162)   (159,755)   (71,796)   (845,713)
Depreciation and amortization expenses*   (71,215)   (23,404)   (86,575)   (181,194)
Impairment*   (1,459,900)   -    -    (1,459,900)
Net (loss) income*   (2,501,120)   (553)   86,838    (2,414,835)
                     
Total assets*   14,521,340    2,026,138    2,855,227    19,402,705 
Capital expenditures for long-lived assets*  $-   $1,164   $1,080   $2,244 

 

* Revenues and costs are attributed to countries based on the location where the entities operate.

 
v3.23.3
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 9 Months Ended
Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of presentation and principles of consolidation

Basis of presentation and principles of consolidation

 

The accompanying unaudited condensed consolidated financial statements as of and for the nine months ended September 30, 2023 and 2022 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) that permit reduced disclosure for interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the period ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. The Condensed Consolidated Balance Sheet information as of December 31, 2022 was derived from the Company’s audited Consolidated Financial Statements as of and for the year ended December 31, 2022 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 31, 2023. These financial statements should be read in conjunction with that report.

 

The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries and majority-owned subsidiaries which the Company controls and entities for which the Company is the primary beneficiary. For those consolidated subsidiaries where the Company’s ownership is less than 100%, the outside shareholders’ interests are shown as noncontrolling interests in equity. Acquired businesses are included in the consolidated financial statements from the date on which control is transferred to the Company. Subsidiaries are deconsolidated from the date that control ceases. All inter-company accounts and transactions have been eliminated in consolidation.

 
Going concern

Going concern

 

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. During the nine months ended September 30, 2023, the Company recorded net cash used in operations of $1,293,574, and as of September 30, 2023, the Company incurred accumulated deficit of $31,041,402. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date that the financial statements are issued. In addition, the Company’s independent registered public accounting firm, in its report on the Company’s December 31, 2022 financial statements, has expressed substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

The Company’s ability to continue as a going concern is dependent upon profitable future operations, positive cash flows and additional financing. Despite the amount of funds that we have raised in the past, no assurance can be given that any future financing, if needed, will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, if needed, it may contain undue restrictions on its operations, in the case of debt financing, or cause substantial dilution for its stockholders, in the case of equity financing.

 

 
Certain effects of reverse stock split

Certain effects of reverse stock split

 

On July 19, 2022, the Company filed a Certificate of Change with the Secretary of State of the State of Nevada (the “Certificate of Change”) to effect a reverse split of the Company’s Common Stock at a ratio of 10-for-1 (the “Reverse Stock Split”), effective as of July 28, 2022. On that date, every 10 issued and outstanding shares of the Company’s Common Stock were automatically converted into one outstanding share of Common Stock. As a result of the Reverse Stock Split, the number of the outstanding shares of Common Stock decreased from 78,671,688 (pre-split) shares to 7,875,813 (post-split) shares. In addition, by reducing the number of outstanding shares, the Company’s loss per share in all prior periods increased by a factor of 10. The Reverse Stock Split affected all shares of Common Stock outstanding immediately prior to the effective time of the Reverse Stock Split. In addition, the Reverse Stock Split effected a reduction in the number of shares of Common Stock issuable upon the exercise of the warrants outstanding immediately prior to the effectiveness of the Reverse Stock Split, resulting in a reduction from 53,556 (pre-split) shares to 5,356 (post-split) shares (see Note 6).

 

No fractional shares are issued in connection with the Reverse Stock Split. Stockholders who otherwise would be entitled to receive fractional shares because they hold a number of pre-reverse stock split shares of the Company’s Common Stock not evenly divisible by 10, in lieu of a fractional share, are entitled the number of shares rounded up to the nearest whole share. The Company will issue one whole share of the post-Reverse Stock Split Common Stock to any stockholder who otherwise would have received a fractional share as a result of the Reverse Stock Split.

 

The Reverse Stock Split affected all holders of Common Stock uniformly and did not affect any stockholder’s percentage of ownership interest. The par value of the Company’s Common Stock remained unchanged at $0.0001 per share and the number of authorized shares of Common Stock remained the same after the Reverse Stock Split.

 

As the par value per share of the Company’s Common Stock remained unchanged at $0.0001 per share, the change in the Common Stock recorded at par value has been reclassified to additional paid-in-capital on a retroactive basis. All references to shares of Common Stock and per share data for all periods presented in the accompanying condensed consolidated financial statements and notes thereto have been adjusted to reflect the Reverse Stock Split on a retroactive basis.

 

 
COVID-19 pandemic and other global risks

COVID-19 pandemic and other global risks

 

As a result of the COVID-19 pandemic and actions taken to slow its spread, the ongoing military conflict between Russia and Ukraine, the armed conflict in Sudan, and other geopolitical and macroeconomic factors beyond our control, the global credit and financial markets have experienced extreme volatility, including diminished liquidity and credit availability, declines in consumer confidence, declines in economic growth, increases in unemployment rates and uncertainty about economic stability.

 

On March 10, 2023, the Federal Deposit Insurance Corporation took control and was appointed receiver of Silicon Valley Bank. While we did not have deposits at Silicon Valley Bank, if other banks and financial institutions enter receivership or become insolvent in the future in response to financial conditions affecting the banking system and financial markets, our ability to access our existing cash, cash equivalents and investments may be threatened and could have a material adverse effect on our business and financial condition. It is possible that further deterioration in credit and financial markets and confidence in economic conditions will occur. If equity and credit markets deteriorate, it may affect our ability to raise equity capital, borrow on our existing facilities, access our existing cash, or make any additional necessary debt or equity financing more difficult to obtain, more costly and/or more dilutive.

 
Use of estimates

Use of estimates

 

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant accounting estimates include certain assumptions related to, among others, the allowance for doubtful accounts receivable, impairment analysis of real estate assets and other long-term assets including goodwill, valuation allowance on deferred income taxes, the assumptions used in the valuation of the derivative liabilities, and the accrual of potential liabilities. Actual results may differ from these estimates.

 

 
Cash, cash equivalents, and restricted cash

Cash, cash equivalents, and restricted cash

 

Cash consists of funds on hand and held in bank accounts. Cash equivalents includes demand deposits placed with banks or other financial institutions and all highly liquid investments with original maturities of three months or less, including money market funds. Restricted cash represents cash restricted for the loan collateral requirements as defined in a loan agreement and the minimum paid-up share capital requirement for insurance brokers specified under the Insurance Ordinance of Hong Kong.

 

As of September 30, 2023 and December 31, 2022, cash included funds held by employees of $11,767 and $11,464, respectively, and was held to facilitate payment of expenses in local currencies and to facilitate third-party online payment platforms in which the Company had not set up corporate accounts (WeChat Pay and Alipay).

 

   As of
September 30, 2023		   As of
December 31, 2022		 
   (Unaudited)   (Audited) 
Cash, cash equivalents, and restricted cash          
Denominated in United States Dollar  $881,058   $2,234,242 
Denominated in Hong Kong Dollar   1,358,743    1,201,076 
Denominated in Chinese Renminbi   268,614    381,012 
Denominated in Malaysian Ringgit   50,744    85,940 
Denominated in Euro   -    9,200 
Denominated in Singapore Dollar   4    65 
Denominated in Great British Pound   122    - 
Cash, cash equivalents, and restricted cash  $2,559,285   $3,911,535 

 
Revenue recognition

Revenue recognition

 

The Company follows the guidance of Accounting Standards Codification (ASC) 606, Revenue from Contracts. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying the contracts or agreements with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients (see Note 2).

 

 
Investments

Investments

 

Investments in equity securities

 

The Company accounts for its investments that represent less than 20% ownership, and for which the Company does not have the ability to exercise significant influence, using ASU 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The Company measure investments in equity securities without a readily determinable fair value using a measurement alternative that measures these securities at the cost method minus impairment, if any, plus or minus changes resulting from observable price changes on a non-recurring basis. Gains and losses on these securities are recognized in other income and expenses.

 

On May 18, 2023, the Company decided to terminate its investment in the Fund due to significant impairments suffered since subscription and to cancel the shares issued to the Fund due to the Fund’s failure to provide consideration for the shares. As a result, 300,000 shares of the Company’s restricted Common Stock were cancelled, the value of Common Stock of $300 and the value of additional paid-in capital of $7,205,700, in aggregate of $7,206,000, were reversed accordingly. The Company recorded a reversal of impairment of other investment of $6,882,000 during the nine-month period ended September 30, 2023.

 

On September 30, 2023, the Company had total twenty-five (25) investments in equity securities without readily determinable fair values, all were related party investments with aggregate value of $5,082,106. In which, ten (10) investments in equity securities without readily determinable fair values were also related party investments, all were fully impaired and with $nil value (see Note 3).

 

On December 31, 2022, the Company had total twenty-seven (27) investments in equity securities without readily determinable fair values, all were related party investments with aggregate value of $5,406,106. In which, eleven (11) investments in equity securities without readily determinable fair values were also related party investments, all were fully impaired and with $nil value (see Note 3).

 
Leases

Leases

 

The Company determines if a contract is or contains a lease at inception of the contract or modification of the contract. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. Control over the use of the identified asset means the lessee has both (a) the right to obtain substantially all of the economic benefits from the use of the asset and (b) the right to direct the use of the asset.

 

Finance and operating lease right-of-use (“ROU”) assets and liabilities are recognized based on the present value of future minimum lease payments over the expected lease term at commencement date. As the implicit rate is not determinable in most of the Company’s leases, management uses the Company’s incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The expected lease term includes options to extend or terminate the lease when it is reasonably certain the Company will exercise such option. Lease expense for minimum lease payments is recognized on a straight-line basis over the expected lease term.

 

The Company’s lease arrangements have lease and non-lease components. Leases with an expected term of 12 months or less are not accounted for on the balance sheet and the related lease expense is recognized on a straight-line basis over the expected lease term.

 

The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

 

See Note 4 for more information regarding leases.

 
Derivative financial instruments

Derivative financial instruments

 

Derivative financial instruments consist of financial instruments that contain a notional amount and one or more underlying variables such as interest rate, security price, variable conversion rate or other variables, require no initial net investment and permit net settlement. The derivative financial instruments may be free-standing or embedded in other financial instruments. The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. The Company follows the provision of ASC 815, Derivatives and Hedging for derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. At each reporting date, the Company reviews its convertible securities to determine that their classification is appropriate.

 
Net income (loss) per share

Net income (loss) per share

 

Basic income (loss) per share is computed by dividing the net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is calculated by dividing the net income (loss) by the weighted average number of common shares outstanding during the period plus any potentially dilutive shares related to the issuance of shares from stock warrants. For the nine months ended September 30, 2023, there were no dilutive shares outstanding, while for the nine months ended September 30, 2022, the only outstanding Common Stock equivalents were warrants for 5,356 potentially dilutive shares outstanding. These warrants have been excluded from the calculation of weighted average shares as the effect would have been anti-dilutive and therefore, basic and diluted net income (loss) per share were the same.

 

 
Foreign currency translation

Foreign currency translation

 

The consolidated financial statements are presented in United States Dollar (“US$”), which is the functional and reporting currency of the Company. In addition, the Company’s operating subsidiaries maintain their books and records in their respective functional currency, which consists of the Malaysian Ringgit (“MYR”), Chinese Renminbi (“RMB”) and Hong Kong Dollar (“HK$”).

 

In general, for consolidation purposes, assets and liabilities of the Company’s subsidiaries whose functional currency is not the US$, are translated into US$ using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of a foreign subsidiary are recorded as a separate component of accumulated other comprehensive income or loss within stockholders’ equity.

 

Translation of amounts from the local currencies of the Company into US$ has been made at the following exchange rates for the respective periods:

 

   2023   2022 
   As of and for the nine months ended
September 30,		 
   2023   2022 
Period-end MYR : US$1 exchange rate   4.70    4.64 
Period-average MYR : US$1 exchange rate   4.53    4.37 
Period-end RMB : US$1 exchange rate   7.28    7.12 
Period-average RMB : US$1 exchange rate   7.06    6.64 
Period-end HK$ : US$1 exchange rate   7.83    7.85 
Period-average HK$ : US$1 exchange rate   7.84    7.84 

 
Fair value of financial instruments

Fair value of financial instruments

 

The Company follows the guidance of ASC 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:

 

● Level 1 : Observable inputs such as quoted prices in active markets;
   
● Level 2 : Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
   
● Level 3 : Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions

 

The Company believes the carrying amount reported in the balance sheet for cash and cash equivalents, accounts receivable, prepaids and other current assets, accounts payable and accrued liabilities, income tax payable, deferred cost of revenue, deferred revenue, and due from or due to related parties, approximate their fair values because of the short-term nature of these financial instruments.

 

As of September 30, 2023 and December 31, 2022, the Company’s balance sheet includes Level 3 liabilities comprised of the fair value of derivative liabilities of $0 and $1, respectively (see Note 5). The following table sets forth a summary of the changes in the estimated fair value of our derivative during the nine-month period ended September 30, 2023:

 

  

Derivative

liability

 
Fair value as of December 31, 2022 (Audited)  $1 
Fair value gain of derivative liability associated with warrants   (1)
Fair value as of September 30, 2023 (Unaudited)  $- 

 

 
Concentrations of risks

Concentrations of risks

 

For the three months ended September 30, 2023, two customers accounted for 56% (33% and 23%) of revenues, as compared to the three months ended September 30, 2022 where three customers accounted for 67% (28%, 22% and 17%) of revenues. For the nine months ended September 30, 2023 and 2022, three customers accounted for 40% (15%, 14% and 11%) and two customers accounted for 24% (13% and 11%) of revenues, respectively.

 

Three customers accounted for 77% (29%, 24% and 24%) and two customers accounted for 77% (57% and 20%) of net accounts receivable as of September 30, 2023 and December 31, 2022, respectively.

 

For the three and nine months ended September 30, 2023 and 2022, no vendor accounted for 10% or more of the Company’s cost of revenues.

 

Two vendors accounted for 92% (72% and 20%) and three vendors accounted for 59% (29%, 19% and 11%) of accounts payable as of September 30, 2023 and December 31, 2022, respectively.

 
Economic and political risks

Economic and political risks

 

Substantially all the Company’s services are conducted in the Asian region, primarily in Hong Kong, Malaysia, and the People’s Republic of China (“PRC”). Among other risks, the Company’s operations in Malaysia are subject to the risks of restrictions on transfer of funds; export duties, quotas, and embargoes; domestic and international customs and tariffs; changing taxation policies; foreign exchange restrictions; and political conditions and governmental regulations in Malaysia.

 

The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic, and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation.

 
Recent accounting pronouncements

Recent accounting pronouncements

 

In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40). This ASU reduces the number of accounting models for convertible debt instruments and convertible preferred stock and amends the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions. In addition, this ASU improves and amends the related earnings per share guidance. This standard became effective for the Company beginning on January 1, 2023. Adoption is either a modified retrospective method or a fully retrospective method of transition. The Company adopted this guidance effective January 1, 2023, and the adoption of this standard did not have a material impact on its consolidated financial statements.

 

In November 2019, the FASB issued ASU No. 2019-10, which to update the effective date of ASU No. 2016-13 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses, leases, and hedging standard. The new effective date for these preparers is for fiscal years beginning after December 15, 2022. ASU 2019-05 is effective for the Company for annual and interim reporting periods beginning January 1, 2023, as the Company is qualified as a smaller reporting company. The Company has accordingly adopted ASUs 2016-13 and 2019-05 in the preparation of its unaudited condensed consolidated financial statements. The adoption of the accounting standards has no material impact on the unaudited condensed consolidated financial statements for the nine months ended and as at September 30, 2023.

 

Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements.
v3.23.3
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 9 Months Ended
Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
SCHEDULE OF CASH, CASH EQUIVALENTS, AND RESTRICTED CASH

 

   As of
September 30, 2023		   As of
December 31, 2022		 
   (Unaudited)   (Audited) 
Cash, cash equivalents, and restricted cash          
Denominated in United States Dollar  $881,058   $2,234,242 
Denominated in Hong Kong Dollar   1,358,743    1,201,076 
Denominated in Chinese Renminbi   268,614    381,012 
Denominated in Malaysian Ringgit   50,744    85,940 
Denominated in Euro   -    9,200 
Denominated in Singapore Dollar   4    65 
Denominated in Great British Pound   122    - 
Cash, cash equivalents, and restricted cash  $2,559,285   $3,911,535 
SCHEDULE OF FOREIGN CURRENCIES TRANSLATION

Translation of amounts from the local currencies of the Company into US$ has been made at the following exchange rates for the respective periods:

 

   2023   2022 
   As of and for the nine months ended
September 30,		 
   2023   2022 
Period-end MYR : US$1 exchange rate   4.70    4.64 
Period-average MYR : US$1 exchange rate   4.53    4.37 
Period-end RMB : US$1 exchange rate   7.28    7.12 
Period-average RMB : US$1 exchange rate   7.06    6.64 
Period-end HK$ : US$1 exchange rate   7.83    7.85 
Period-average HK$ : US$1 exchange rate   7.84    7.84 
SCHEDULE OF FAIR VALUE OF EMBEDDED DERIVATIVE LIABILITIES

 

  

Derivative

liability

 
Fair value as of December 31, 2022 (Audited)  $1 
Fair value gain of derivative liability associated with warrants   (1)
Fair value as of September 30, 2023 (Unaudited)  $- 
v3.23.3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)
 9 Months Ended
Sep. 30, 2023
Revenue from Contract with Customer [Abstract]  
SCHEDULE OF DISAGGREGATED REVENUE

The following table provides information about disaggregated revenue based on revenue by service lines and revenue by geographic area:

  

   2023   2022 
   Three Months Ended September 30, 
   2023   2022 
   (Unaudited)   (Unaudited) 
Revenue by service lines:          
Corporate advisory - Non-listing services  $448,151   $340,441 
Corporate advisory - Listing services   595,209    287,854 
Rental of real estate properties   27,612    25,356 
Sale of real estate properties   -    652,788 
Total revenue  $1,070,972   $1,306,439 

 

   Three Months Ended September 30, 
   2023   2022 
   (Unaudited)   (Unaudited) 
Revenue by geographic area:          
Hong Kong  $914,694   $856,319 
Malaysia   82,618    119,390 
China   73,660    330,730 
Total revenue  $1,070,972   $1,306,439 

 

   2023   2022 
   Nine Months Ended September 30, 
   2023   2022 
   (Unaudited)   (Unaudited) 
Revenue by service lines:          
Corporate advisory - Non-listing services  $1,079,000   $1,117,285 
Corporate advisory - Listing services   1,160,354    643,595 
Rental of real estate properties   70,238    89,686 
Sale of real estate properties   -    839,661 
Total revenue  $2,309,592   $2,690,227 

 

   Nine Months Ended September 30, 
   2023   2022 
   (Unaudited)   (Unaudited) 
Revenue by geographic area:          
Hong Kong  $1,810,445   $1,594,017 
Malaysia   236,847    387,824 
China   262,300    708,386 
Total revenue  $2,309,592   $2,690,227 
SCHEDULE OF CHANGES IN DEFERRED REVENUE

 

   Nine Months Ended
September 30, 2023		 
   (Unaudited) 
Deferred revenue, January 1, 2023  $1,834,244 
New contract liabilities   667,021 
Performance obligations satisfied   (1,160,354)
Deferred revenue, September 30, 2023  $1,340,911 
SCHEDULE OF DEFERRED REVENUE COST

Deferred cost of revenue and deferred revenue at September 30, 2023 and December 31, 2022 are classified as current assets or current liabilities and totaled:

 

   As of
September 30, 2023		   As of
December 31, 2022		 
   (Unaudited)   (Audited) 
Deferred cost of revenue  $83,479   $168,605 
Deferred revenue  $1,340,911   $1,834,244 
v3.23.3
OTHER INVESTMENTS (Tables)
 9 Months Ended
Sep. 30, 2023
Investments, Debt and Equity Securities [Abstract]  
SCHEDULE OF OTHER INVESTMENTS

  

   As of   As of 
   September 30, 2023   December 31, 2022 
   (Unaudited)   (Audited) 
Investments in equity securities without readily determinable fair values of affiliates:          
(1) Greenpro Trust Limited (a related party)  $11,981   $11,981 
(2) Other related parties   5,070,125    5,394,125 
Total  $5,082,106   $5,406,106 
SCHEDULE OF CARRYING VALUES OF EQUITY SECURITIES WITHOUT READILY DETERMINABLE FAIR VALUES

On September 30, 2023 and December 31, 2022, the carrying values of equity securities without readily determinable fair values are as follows:

 

   As of
September 30, 2023		   As of
December 31, 2022		 
   (Unaudited)   (Audited) 
Original cost          
Balance, beginning of period / year  $15,537,964   $15,545,764 
Additions during the period / year   500    1,250 
Disposals or forfeitures during the period / year   (7,206,500)   (9,050)
Balance, end of period / year   8,331,964    15,537,964 
           
Accumulated impairment          
Balance, beginning of period / year   (10,131,858)   (5,923,829)
Reversal of impairment (Impairment) for the period / year   6,882,000    (4,208,029)
Balance, end of period / year   (3,249,858)   (10,131,858)
           
Net carrying values of equity securities without readily determinable fair values  $5,082,106   $5,406,106 
v3.23.3
LEASES (Tables)
 9 Months Ended
Sep. 30, 2023
Leases  
SCHEDULE OF COMPONENTS OF LEASE AND SUPPLEMENTAL CASH FLOW INFORMATION

The components of lease expense and supplemental cash flow information related to leases for the periods are as follows:

 

   Nine Months Ended
September 30, 2023		   Nine Months Ended
September 30, 2022		 
   (Unaudited)   (Unaudited) 
Lease costs          
Operating lease costs:          
Operating lease cost  $70,623   $64,463 
Short-term lease cost (1)  $14,670   $19,213 
Finance lease costs:          
Interest on lease liabilities  $429   $- 
Amortization of right-of-use asset  $1,950   $- 
           
Other information          
Cash paid for amounts included in the measurement of lease liabilities:          
Operating cash flows for operating leases  $71,834   $68,908 
Operating cash flows for finance leases  $429   $- 
Financing cash flows for finance leases  $1,086   $- 
Non-cash activity:          
Balance payment of ROU asset by finance lease liabilities  $18,530   $- 
Weighted average remaining lease term (in years):          
Operating leases   1.46    0.46 
Finance leases   4.67    - 
Weighted average discount rate:          
Operating leases   4.0%   4.0%
Finance leases   6.9%   - 

 

(1) Includes expenses related to leases with a lease term of more than one month but less than one year.
SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES

The supplemental balance sheet information related to leases for the periods is as follows:

 

   As of
September 30, 2023		   As of
December 31, 2022		 
   (Unaudited)   (Audited) 
Assets          
Long-term operating lease ROU assets, net (1)  $137,252   $17,510 
Long-term finance lease ROU asset, net (2)   26,363    - 
Total ROU assets  $163,615   $17,510 
           
Liabilities          
Current portion of operating lease liabilities  $93,515   $18,725 
Current portion of finance lease liabilities   3,292    - 
Total current lease liabilities   96,807    18,725 
           
Long-term operating lease liabilities   43,737    - 
Long-term finance lease liabilities   14,190    - 
Total long-term lease liabilities   57,927    - 
Total lease liabilities  $154,734   $18,725 

 

(1) Operating lease ROU assets are measured at cost of $350,818 and $164,771 less accumulated amortization of $213,566 and $147,261 as of September 30, 2023 and December 31, 2022, respectively.
   
(2) Finance lease ROU asset is measured at cost of $28,247 and $0 less accumulated amortization of $1,884 and $0 as of September 30, 2023 and December 31, 2022, respectively.
SCHEDULE OF MATURITIES OF LEASE LIABILITIES

Maturities of the Company’s lease liabilities are as follows:

  

   Operating leases   Finance leases 
   (Unaudited)   (Unaudited) 
Year ending December 31,          
2023 (remaining 3 months)  $24,326   $1,097 
2024   97,303    4,388 
2025   19,879    4,388 
2026   -    4,388 
2027   -    4,388 
2028   -    1,827 
Total future minimum lease payments   141,508    20,476 
Less: Imputed interest/present value discount   (4,256)   (2,994)
Present value of lease liabilities  $137,252   $17,482 
           
Lease obligations          
Current lease obligations  $93,515   $3,292 
Long-term lease obligations   43,737    14,190 
Total lease obligations  $137,252   $17,482 
v3.23.3
DERIVATIVE LIABILITIES (Tables)
 9 Months Ended
Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
SCHEDULE OF ESTIMATED DERIVATIVE LIABILITIES AT FAIR VALUE ASSUMPTIONS

The derivative liabilities related to warrants were valued using the Black-Scholes-Merton valuation model with the following assumptions:

  

   As of
June 12, 2023
(expiration)		   As of
December 31, 2022		 
   (Unaudited)   (Audited) 
Risk-free interest rate  $3.87%  $3.97%
Expected volatility   162%   168%
Contractual life (in years)   0.0 years    0.4 years 
Expected dividend yield   0.00%   0.00%
Fair value of warrants  $-   $1 
v3.23.3
WARRANTS (Tables)
 9 Months Ended
Sep. 30, 2023
Warrants  
SUMMARY OF WARRANTS ACTIVITY

A summary of warrant activity during the nine months ended September 30, 2023 is presented below:

   

           Remaining 
   Number       Contractual 
   of   Exercise   Life 
   Shares   Price   (in Years) 
             
Warrants outstanding at December 31, 2022   5,356   $72.00            
Granted   -    -      
Exercised   -    -      
Expired   5,356    72.00      
Warrants outstanding at September 30, 2023 (Unaudited)   -   $-    - 
Warrants exercisable at September 30, 2023 (Unaudited)   -   $-    - 
v3.23.3
RELATED PARTY TRANSACTIONS (Tables)
 9 Months Ended
Sep. 30, 2023
Related Party Transactions [Abstract]  
SCHEDULE OF DUE FROM RELATED PARTIES

 SCHEDULE OF DUE FROM RELATED PARTIES 

Accounts receivable from related parties:  September 30, 2023   December 31, 2022 
   (Unaudited)   (Audited) 
Accounts receivable, net - related parties          
- Related party B (net of allowance of $220 and $1,750 as of September 30 , 2023 and December 31, 2022, respectively)  $308,621   $129,250 
- Related party K (net of allowance of $0 and $2 as of September 30, 2023 and December 31, 2022, respectively)   -    42 
Total  $308,621   $129,292 

 

Prepaid to a related party:  September 30, 2023   December 31, 2022 
   (Unaudited)   (Audited) 
Prepayment          
- Related party B  $120,000   $80,000 

 

Due from related parties:  September 30, 2023   December 31, 2022 
   (Unaudited)   (Audited) 
Due from related parties          
- Related party B  $1,703   $4,708 
- Related party D   654,877    200,000 
- Related party G   3,173    1,064 
- Related party H   60,000    60,000 
- Related party I   23    - 
Total  $719,776   $265,772 
SCHEDULE OF DUE TO RELATED PARTIES

The amounts due from related parties are interest-free, unsecured and repayable on demand.

  

Due to related parties:  September 30, 2023   December 31, 2022 
   (Unaudited)   (Audited) 
Due to related parties          
- Related party A  $32,230   $47,135 
- Related party B   62,493    2,275 
- Related party E   1,434    - 
- Related party J   335,669    390,333 
- Related party K   4,752    8,508 
Total  $436,578   $448,251 
SCHEDULE OF INCOME FROM OR EXPENSES TO RELATED PARTIES

The amounts due to related parties are interest-free, unsecured, and repayable on demand.

 SCHEDULE OF INCOME FROM OR EXPENSES TO RELATED PARTIES 

Deferred cost of revenue to a related party:  September 30, 2023   December 31, 2022 
   (Unaudited)   (Audited) 
Deferred cost of revenue to a related party                         
- Related party B  $-   $11,640 

 

Deferred revenue from related parties:  September 30, 2023   December 31, 2022 
   (Unaudited)   (Audited) 
Deferred revenue from related parties          
- Related party B  $236,800   $749,400 
- Related party E   -    100,000 
Total  $236,800   $849,400 

 

 

  2023   2022 
   For the nine months ended September 30, 
Related party revenue and expense transactions:  2023   2022 
   (Unaudited)   (Unaudited) 
         
Service revenue from related parties          
- Related party A  $3,327   $22,827 
- Related party B   937,823    482,102 
- Related party D   28,384    24,183 
- Related party E   255,463    6,141 
- Related party G   7,407    12,480 
- Related party I   -    824 
- Related party K   122    45 
Total  $1,232,526   $548,602 
           
Cost of revenues to a related party          
- Related party B  $23,280   $- 
           
General and administrative expenses to related parties          
- Related party A  $-   $4,929 
- Related party B   21,780    4,235 
- Related party D   24,559    - 
- Related party I   11,911    12,368 
- Related party K   32,157    32,157 
Total  $90,407   $53,689 
           
Other income from related parties:          
- Related party B  $2,297   $- 
- Related party D   7,861    1,123 
Other income from related parties  $10,158   $1,123 
           
Reversal of impairment (impairment) of other investment:          
- Related party B  $6,882,000   $(1,459,900)
v3.23.3
SEGMENT INFORMATION (Tables)
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
SCHEDULE OF SUMMARIZED FINANCIAL INFORMATION

 

   Real estate business   Service business   Corporate   Total 
   For the nine months ended September 30, 2023 (Unaudited) 
   Real estate business   Service business   Corporate   Total 
                 
Revenues  $70,238   $2,239,354   $-   $2,309,592 
Cost of revenues   (28,315)   (374,048)   -    (402,363)
Depreciation and amortization expenses   (23,758)   (152,285)   (351)   (176,394)
Reversal of impairment of other investment   -    -    6,882,000    6,882,000 
Reversal of write-off notes receivable   -    -    400,000    400,000 
Net (loss) income   (44,550)   (371,709)   6,979,717    6,563,458 
                     
Total assets   1,704,170    5,675,545    6,976,401    14,356,116 
Capital expenditures for long-lived assets  $-   $33,240   $-   $33,240 

 

   Real estate
business		   Service
business		   Corporate   Total 
   For the nine months ended September 30, 2022 (Unaudited) 
   Real estate
business		   Service
business		   Corporate   Total 
                 
Revenues  $929,347   $1,760,880   $-   $2,690,227 
Cost of revenues   (606,276)   (239,437)   -    (845,713)
Depreciation and amortization expenses   (23,404)   (153,798)   (3,992)   (181,194)
Impairment   -    -    (1,459,900)   (1,459,900)
Net income (loss)   240,271    (1,974,981)   (680,125)   (2,414,835)
                     
Total assets   1,850,721    6,914,212    10,637,772    19,402,705 
Capital expenditures for long-lived assets  $-   $2,244   $-   $2,244 

 

(b) By Geography*

 

   Hong Kong   Malaysia   China   Total 
   For the nine months ended September 30, 2023 (Unaudited) 
   Hong Kong   Malaysia   China   Total 
                 
Revenues*  $1,810,445   $236,847   $262,300   $2,309,592 
Cost of revenues*   (228,919)   (130,948)   (42,496)   (402,363)
Depreciation and amortization expenses*   (72,287)   (23,940)   (80,167)   (176,394)
Reversal of impairment of other investment*   6,882,000    -    -    6,882,000 
Reversal of write-off notes receivable*   400,000    -    -    400,000 
Net income (loss)*   6,931,606    (383,491)   15,343    6,563,458 
                     
Total assets*   10,120,222    1,654,668    2,581,226    14,356,116 
Capital expenditures for long-lived assets*  $1,511   $30,217   $1,512   $33,240 

 

   Hong Kong   Malaysia   China   Total 
   For the nine months ended September 30, 2022 (Unaudited) 
   Hong Kong   Malaysia   China   Total 
                 
Revenues*  $1,594,017   $387,824   $708,386   $2,690,227 
Cost of revenues*   (614,162)   (159,755)   (71,796)   (845,713)
Depreciation and amortization expenses*   (71,215)   (23,404)   (86,575)   (181,194)
Impairment*   (1,459,900)   -    -    (1,459,900)
Net (loss) income*   (2,501,120)   (553)   86,838    (2,414,835)
                     
Total assets*   14,521,340    2,026,138    2,855,227    19,402,705 
Capital expenditures for long-lived assets*  $-   $1,164   $1,080   $2,244 

 

* Revenues and costs are attributed to countries based on the location where the entities operate.
v3.23.3
SCHEDULE OF CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (Details) - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Cash, cash equivalents, and restricted cash $ 2,559,285 $ 3,911,535
United States Dollar [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Cash, cash equivalents, and restricted cash 881,058 2,234,242
Hong Kong Dollar [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Cash, cash equivalents, and restricted cash 1,358,743 1,201,076
Chinese Renminbi [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Cash, cash equivalents, and restricted cash 268,614 381,012
Malaysian Ringgit [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Cash, cash equivalents, and restricted cash 50,744 85,940
Euro [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Cash, cash equivalents, and restricted cash 9,200
Singapore Dollar [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Cash, cash equivalents, and restricted cash 4 65
Great British Pound [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Cash, cash equivalents, and restricted cash $ 122
v3.23.3
SCHEDULE OF FOREIGN CURRENCIES TRANSLATION (Details)
Sep. 30, 2023
Sep. 30, 2022
Period-End MYR : US$1 Exchange Rate [Member]    
Trading Activity, Gains and Losses, Net [Line Items]    
Exchange rate 4.70 4.64
Period-Average MYR : US$1 Exchange Rate [Member]    
Trading Activity, Gains and Losses, Net [Line Items]    
Exchange rate 4.53 4.37
Period-End RMB : US$1 Exchange Rate [Member]    
Trading Activity, Gains and Losses, Net [Line Items]    
Exchange rate 7.28 7.12
Period-Average RMB : US$1 Exchange Rate [Member]    
Trading Activity, Gains and Losses, Net [Line Items]    
Exchange rate 7.06 6.64
Period-End HK$ : US$1 Exchange Rate [Member]    
Trading Activity, Gains and Losses, Net [Line Items]    
Exchange rate 7.83 7.85
Period-Average HK$ : US$1 Exchange Rate [Member]    
Trading Activity, Gains and Losses, Net [Line Items]    
Exchange rate 7.84 7.84
v3.23.3
SCHEDULE OF FAIR VALUE OF EMBEDDED DERIVATIVE LIABILITIES (Details)
 9 Months Ended
Sep. 30, 2023
USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Fair value at beginning of period $ 1
Fair value gains of derivative liability associated with warrants (1)
Fair value at end of period
v3.23.3
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)
 3 Months Ended 9 Months Ended 12 Months Ended
May 18, 2023
Jul. 28, 2022
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Product Information [Line Items]              
Net cash used in operating activities         $ 1,293,574 $ 2,157,380  
Accumulated deficit     $ 31,041,402   $ 31,041,402   $ 37,622,680
Stockholders equity reverse stock split   10-for-1          
Number of shares pre-split   78,671,688          
Number of shares post-split   7,875,813          
Common stock, par value     $ 0.0001   $ 0.0001   $ 0.0001
Funds held by employees     $ 11,767   $ 11,767   $ 11,464
Restricted common stock cancelled         7,206,000    
reversal of impairment     0   6,882,000    
Equity securities without readily determinable fair value, amount     5,082,106   $ 5,082,106   5,406,106
Antidilutive securities excluded from computation of earnings per share, amount         0 5,356  
Derivative assets liabilities at fair value net     $ 0   $ 0   $ 1
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Two Customer [Member]              
Product Information [Line Items]              
Concentration risk percentage     56.00%     24.00%  
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Customer One [Member]              
Product Information [Line Items]              
Concentration risk percentage     33.00% 28.00% 15.00% 13.00%  
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Customer Two [Member]              
Product Information [Line Items]              
Concentration risk percentage     23.00% 22.00% 14.00% 11.00%  
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Three Customer [Member]              
Product Information [Line Items]              
Concentration risk percentage       67.00% 40.00%    
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Customer Three [Member]              
Product Information [Line Items]              
Concentration risk percentage       17.00% 11.00%    
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Two Customer [Member]              
Product Information [Line Items]              
Concentration risk percentage             77.00%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member]              
Product Information [Line Items]              
Concentration risk percentage         29.00%   57.00%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Two [Member]              
Product Information [Line Items]              
Concentration risk percentage         24.00%   20.00%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Three Customer [Member]              
Product Information [Line Items]              
Concentration risk percentage         77.00%    
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Three [Member]              
Product Information [Line Items]              
Concentration risk percentage         24.00%    
Accounts Payable [Member] | Customer Concentration Risk [Member] | No Vendor [Member]              
Product Information [Line Items]              
Concentration risk percentage     10.00% 10.00% 10.00% 10.00%  
Accounts Payable [Member] | Customer Concentration Risk [Member] | Two Vendor [Member]              
Product Information [Line Items]              
Concentration risk percentage         92.00%    
Accounts Payable [Member] | Customer Concentration Risk [Member] | Vendor One [Member]              
Product Information [Line Items]              
Concentration risk percentage         72.00%   29.00%
Accounts Payable [Member] | Customer Concentration Risk [Member] | Vendor Two [Member]              
Product Information [Line Items]              
Concentration risk percentage         20.00%   19.00%
Accounts Payable [Member] | Customer Concentration Risk [Member] | Three Vendor [Member]              
Product Information [Line Items]              
Concentration risk percentage             59.00%
Accounts Payable [Member] | Customer Concentration Risk [Member] | Vendor Three [Member]              
Product Information [Line Items]              
Concentration risk percentage             11.00%
Twenty Five Investments [Member]              
Product Information [Line Items]              
Equity securities without readily determinable fair value, amount     $ 5,082,106   $ 5,082,106    
Eleven Investments [Member]              
Product Information [Line Items]              
Equity securities without readily determinable fair value, amount        
Twenty Seven Investments [Member]              
Product Information [Line Items]              
Equity securities without readily determinable fair value, amount             $ 5,406,106
Innovest Energy Fund [Member]              
Product Information [Line Items]              
Restricted common stock cancelled $ 7,206,000            
reversal of impairment         $ 6,882,000    
Warrant [Member]              
Product Information [Line Items]              
Number of shares pre-split   53,556          
Number of shares post-split   5,356          
Common Stock [Member]              
Product Information [Line Items]              
Number of shares post-split [1]       8,644   8,644  
Restricted common stock cancelled         (300,000)    
Restricted common stock cancelled         $ 300    
Common Stock [Member] | Innovest Energy Fund [Member]              
Product Information [Line Items]              
Restricted common stock cancelled $ 300            
Common Stock [Member] | Innovest Energy Fund [Member] | Restricted Stock [Member]              
Product Information [Line Items]              
Restricted common stock cancelled 300,000            
Additional Paid-in Capital [Member]              
Product Information [Line Items]              
Restricted common stock cancelled         $ 7,205,700    
Additional Paid-in Capital [Member] | Innovest Energy Fund [Member]              
Product Information [Line Items]              
Restricted common stock cancelled $ 7,205,700            
Green Pro Venture Capital [Member]              
Product Information [Line Items]              
Ownership percentage     100.00%   100.00%    
Investments In Equity Securities [Member]              
Product Information [Line Items]              
Ownership percentage     20.00%   20.00%    
[1] Share activity (number of shares or both number and amount of shares) has been adjusted for the periods shown to reflect the 10-for-1 reverse stock split effected on July 28, 2022 on a retroactive basis as described in Note 1.
v3.23.3
SCHEDULE OF DISAGGREGATED REVENUE (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Disaggregation of Revenue [Line Items]        
Total revenue $ 1,070,972 $ 1,306,439 $ 2,309,592 [1] $ 2,690,227 [1]
HONG KONG        
Disaggregation of Revenue [Line Items]        
Total revenue 914,694 856,319 1,810,445 [1] 1,594,017 [1]
MALAYSIA        
Disaggregation of Revenue [Line Items]        
Total revenue 82,618 119,390 236,847 [1] 387,824 [1]
CHINA        
Disaggregation of Revenue [Line Items]        
Total revenue 73,660 330,730 262,300 [1] 708,386 [1]
Corporate Advisory - Non-Listing Services [Member]        
Disaggregation of Revenue [Line Items]        
Total revenue 448,151 340,441 1,079,000 1,117,285
Corporate Advisory - Listing Services [Member]        
Disaggregation of Revenue [Line Items]        
Total revenue 595,209 287,854 1,160,354 643,595
Rental Of Real Estate Properties [Member]        
Disaggregation of Revenue [Line Items]        
Total revenue 27,612 25,356 70,238 89,686
Sales Of Real Estate Properties [Member]        
Disaggregation of Revenue [Line Items]        
Total revenue $ 652,788 $ 839,661
[1] Revenues and costs are attributed to countries based on the location where the entities operate.
v3.23.3
SCHEDULE OF CHANGES IN DEFERRED REVENUE (Details)
 9 Months Ended
Sep. 30, 2023
USD ($)
Revenue from Contract with Customer [Abstract]  
Deferred revenue, January 1, 2023 $ 1,834,244
New contract liabilities 667,021
Performance obligations satisfied (1,160,354)
Deferred revenue, September 30, 2023 $ 1,340,911
v3.23.3
SCHEDULE OF DEFERRED REVENUE COST (Details) - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]    
Deferred cost of revenue $ 83,479 $ 168,605
Deferred revenue $ 1,340,911 $ 1,834,244
v3.23.3
SCHEDULE OF OTHER INVESTMENTS (Details) - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Investments in equity securities without readily determinable fair values of affiliates, total $ 5,082,106 $ 5,406,106
Other Related Party [Member]    
Investments in equity securities without readily determinable fair values of affiliates, total 5,070,125 5,394,125
Greenpro Trust Limited Related Party [Member]    
Investments in equity securities without readily determinable fair values of affiliates, total $ 11,981 $ 11,981
v3.23.3
SCHEDULE OF CARRYING VALUES OF EQUITY SECURITIES WITHOUT READILY DETERMINABLE FAIR VALUES (Details) - USD ($)
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]          
Balance, beginning of period / year     $ 15,537,964 $ 15,545,764 $ 15,545,764
Additions during the period / year     500   1,250
Disposals or forfeitures during the period / year     (7,206,500)   (9,050)
Balance, end of period / year $ 8,331,964   8,331,964   15,537,964
Balance, beginning of period / year     (10,131,858) (5,923,829) (5,923,829)
Reversal of impairment (Impairment) for the period / year $ (246,100) 6,882,000 $ (1,459,900) (4,208,029)
Balance, end of period / year (3,249,858)   (3,249,858)   (10,131,858)
Net carrying values of equity securities without readily determinable fair values $ 5,082,106   $ 5,082,106   $ 5,406,106
v3.23.3
OTHER INVESTMENTS (Details Narrative) - USD ($)
 1 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended
May 18, 2023
Feb. 08, 2023
Feb. 19, 2021
Feb. 11, 2021
Jul. 31, 2023
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Jun. 12, 2023
Dec. 31, 2021
Reversal of impairment           $ 0   $ 6,882,000        
Impairment loss             $ 246,100   $ 1,459,900      
Impairment loss of equity securities           $ 246,100 (6,882,000) $ 1,459,900 $ 4,208,029    
Other investments           5,082,106   5,082,106   5,406,106    
Shares issued, price per share                     $ 1.78  
Restricted common stock cancelled               7,206,000        
Equity securities without readily determinable fair value, amount           5,082,106   5,082,106   5,406,106    
Accumulated impairment loss of other investments           $ 3,249,858   $ 3,249,858   $ 10,131,858   $ 5,923,829
Common Stock [Member]                        
Restricted common stock cancelled               (300,000)        
Restricted common stock cancelled               $ 300        
Additional Paid-in Capital [Member]                        
Restricted common stock cancelled               7,205,700        
Celmoze Wellness Corporation [Member]                        
Other investments   $ 500                    
Shares acquistions   5,000,000                    
Stock acquired during period, value   $ 500                    
Shares issued, price per share   $ 0.0001                    
Innovest Energy Fund [Member]                        
Reversal of impairment               $ 6,882,000        
Restricted common stock cancelled $ 7,206,000                      
Innovest Energy Fund [Member] | Common Stock [Member]                        
Restricted common stock cancelled 300                      
Innovest Energy Fund [Member] | Additional Paid-in Capital [Member]                        
Restricted common stock cancelled $ 7,205,700                      
Innovest Energy Fund [Member] | Restricted Stock [Member] | Common Stock [Member]                        
Restricted common stock cancelled 300,000                      
Innovest Energy Fund [Member] | Subscription Agreement [Member]                        
Number of restricted stock, value       $ 7,206,000                
Innovest Energy Fund [Member] | Subscription Agreement [Member] | Restricted Stock [Member]                        
Number of restricted stock, value       $ 7,206,000                
Number of restricted stock, shares       300,000                
Simson Wellness Tech Corp [Member]                        
Other investments     $ 500                  
Shares acquistions     5,000,000                  
Stock acquired during period, value     $ 500                  
Shares issued, price per share     $ 0.0001                  
Shares issuance         5,000,000              
Stock issuance, value         $ 500              
Cash received         $ 500              
v3.23.3
SCHEDULE OF COMPONENTS OF LEASE AND SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($)
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Lease costs    
Operating lease cost $ 70,623 $ 64,463
Short-term lease cost [1] 14,670 19,213
Interest on lease liabilities 429
Amortization of right-of-use asset 1,950
Operating cash flows for operating leases 71,834 68,908
Operating cash flows for finance leases 429
Financing cash flows for finance leases 1,086
Balance payment of ROU asset by finance lease liabilities $ 18,530
Weighted average remaining lease term - operating leases (in years) 1 year 5 months 15 days 5 months 15 days
Weighted average remaining lease term - operating leases (in years) 4 years 8 months 1 day
Average discount rate - operating leases 4.00% 4.00%
Average discount rate - finance leases 6.90% (0.00%)
[1] Includes expenses related to leases with a lease term of more than one month but less than one year.
v3.23.3
SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES (Details) - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Leases    
Long-term operating lease ROU assets, net [1] $ 137,252 $ 17,510
Long-term finance lease ROU asset, net [2] 26,363
Total ROU assets 163,615 17,510
Current portion of operating lease liabilities 93,515 18,725
Current portion of finance lease liabilities 3,292
Total current lease liabilities 96,807 18,725
Long-term operating lease liabilities 43,737
Long-term finance lease liabilities 14,190
Total long-term lease liabilities 57,927
Total lease liabilities $ 154,734 $ 18,725
[1] Operating lease ROU assets are measured at cost of $350,818 and $164,771 less accumulated amortization of $213,566 and $147,261 as of September 30, 2023 and December 31, 2022, respectively.
[2] Finance lease ROU asset is measured at cost of $28,247 and $0 less accumulated amortization of $1,884 and $0 as of September 30, 2023 and December 31, 2022, respectively.
v3.23.3
SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES (Details) (Parenthetical) - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Leases    
Operating lease, right of use asset $ 350,818 $ 164,771
Operating lease, right of use asset, accumulated amortization 213,566 147,261
Finance lease, right of use asset 28,247 0
Finance lease, right of use asset, accumulated amortization $ 1,884 $ 0
v3.23.3
SCHEDULE OF MATURITIES OF LEASE LIABILITIES (Details) - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Leases    
Operating leases, 2023 $ 24,326  
Finance leases, 2023 1,097  
Operating leases, 2024 97,303  
Finance leases, 2024 4,388  
Operating leases, 2025 19,879  
Finance leases, 2025 4,388  
Operating leases, 2026  
Finance leases, 2026 4,388  
Operating leases, 2027  
Finance leases, 2027 4,388  
Operating leases, 2028  
Finance leases, 2028 1,827  
Operating lease, total future minimum lease payments 141,508  
Finance lease, total future minimum lease payments 20,476  
Operating leases, Less Imputed interest/present value discount (4,256)  
Finance leases, Less Imputed interest/present value discount (2,994)  
Operating leases, Present value of lease liabilities 137,252  
Finance leases, Present value of lease liabilities 17,482  
Current lease obligations 93,515 $ 18,725
Current lease obligations 3,292
Long-term lease obligations 43,737
Finance Lease, Liability, Noncurrent 14,190
Total lease obligations 137,252  
Finance Lease, Liability $ 17,482  
v3.23.3
LEASES (Details Narrative) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Leases        
Operating lease term 2 years   2 years  
Finance lease term 5 years   5 years  
Operating lease expense $ 27,965 $ 28,330 $ 85,293 $ 83,676
v3.23.3
SCHEDULE OF ESTIMATED DERIVATIVE LIABILITIES AT FAIR VALUE ASSUMPTIONS (Details)
 9 Months Ended
Jun. 12, 2023
USD ($)
Dec. 31, 2022
USD ($)
Sep. 30, 2023
USD ($)
Sep. 30, 2022
USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]        
Fair Value of warrants     $ (1) $ (9,884)
Black Scholes Merton [Member]        
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]        
Fair Value of warrants $ 1    
Black Scholes Merton [Member] | Measurement Input, Risk Free Interest Rate [Member]        
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]        
Fair value assumptions, measurement input, percentage 3.87 3.97    
Black Scholes Merton [Member] | Measurement Input Price Volatility Rate [Member]        
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]        
Fair value assumptions, measurement input, percentage 162 168    
Black Scholes Merton [Member] | Measurement Input, Expected Term [Member]        
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]        
Derivative liability measurement input term 0 years 4 months 24 days    
Black Scholes Merton [Member] | Measurement Input, Expected Dividend Rate [Member]        
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]        
Fair value assumptions, measurement input, percentage 0.00 0.00    
v3.23.3
DERIVATIVE LIABILITIES (Details Narrative) - USD ($)
 9 Months Ended
Jun. 12, 2023
Jul. 28, 2022
Sep. 30, 2023
Dec. 31, 2022
Jul. 19, 2022
Dec. 31, 2018
Jun. 12, 2018
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]              
Warrants exercisable into common shares           53,556 53,556
Stockholders equity reverse stock split   10-for-1          
Number of shares pre-split   78,671,688          
Number of shares post-split   7,875,813          
Warrants exercise price percentage 120.00%            
Warrants exercise price post-split $ 72       $ 72    
Warrants exercise price pre-split 7.2       $ 7.2    
Decrease in fair value of derivative liability     $ 1        
Shares issued, price per share $ 1.78            
Warrant [Member]              
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]              
Number of shares pre-split   53,556          
Number of shares post-split   5,356          
Derivative liability     $ 0 $ 1      
v3.23.3
SUMMARY OF WARRANTS ACTIVITY (Details)
 9 Months Ended
Sep. 30, 2023
shares
Warrants  
Number of Shares Warrants, Outstanding Beginning Balance 5,356
Weighted Average Exercise Price, Outstanding, Beginning Balance 72.00
Number of Shares Warrants, Granted
Weighted Average Exercise Price, Granted
Number of Shares Warrants, Exercised
Weighted Average Exercise Price, Exercised
Number of Shares Warrants, Expired/Cancelled 5,356
Weighted Average Exercise Price, Expired/Cancelled 72.00
Number of Shares Warrants, Outstanding Ending Balance
Weighted Average Exercise Price, Outstanding, Ending Balance
Remaining Contractual Life (in Years), Outstanding
Number of Shares Warrants, Exercisable Ending Balance
Weighted Average Exercise Price,Exercisable, Ending Balance
Remaining Contractual Life (in Years), Exercisable
v3.23.3
WARRANTS (Details Narrative) - $ / shares
Jul. 28, 2022
Sep. 30, 2023
Jun. 12, 2023
Dec. 31, 2022
Jul. 19, 2022
Dec. 31, 2018
Jun. 12, 2018
Warrants exercisable into common shares           53,556 53,556
Warrant exercise price per share           $ 7.20  
Stockholders equity reverse stock split 10-for-1            
Number of shares pre-split 78,671,688            
Number of shares post-split 7,875,813            
Warrants exercise price pre-split     $ 7.2   $ 7.2    
Warrants exercise price post-split     72   $ 72    
Shares issued, price per share     $ 1.78        
Number of Shares Warrants, Outstanding Ending Balance     5,356      
Number of Shares Warrants, Exercisable Ending Balance            
Warrant [Member]              
Number of shares pre-split 53,556            
Number of shares post-split 5,356            
v3.23.3
SCHEDULE OF DUE FROM RELATED PARTIES (Details) - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Accounts receivable, net - related parties    
Total $ 406,031 $ 169,537
Related Party B [Member]    
Accounts receivable, net - related parties    
Total 308,621 129,250
Prepayment    
Total 120,000 80,000
Due from related parties 1,703 4,708
Related Party K [Member]    
Accounts receivable, net - related parties    
Total 42
Related Party [Member]    
Accounts receivable, net - related parties    
Total 308,621 129,292
Prepayment    
Due from related parties 719,776 265,772
Related Party D [Member]    
Prepayment    
Due from related parties 654,877 200,000
Related Party G [Member]    
Prepayment    
Due from related parties 3,173 1,064
Related Party H [Member]    
Prepayment    
Due from related parties 60,000 60,000
Related Party I [Member]    
Prepayment    
Due from related parties $ 23
v3.23.3
SCHEDULE OF DUE FROM RELATED PARTIES (Details) (Parenthetical) - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Related Party B [Member]    
Related Party Transaction [Line Items]    
Accounts receivable from related parties, net of allowance $ 220 $ 1,750
Related Party K [Member]    
Related Party Transaction [Line Items]    
Accounts receivable from related parties, net of allowance $ 0 $ 2
v3.23.3
SCHEDULE OF DUE TO RELATED PARTIES (Details) - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Related Party A [Member]    
Related Party Transaction [Line Items]    
Due to related parties $ 32,230 $ 47,135
Related Party B [Member]    
Related Party Transaction [Line Items]    
Due to related parties 62,493 2,275
Related Party E [Member]    
Related Party Transaction [Line Items]    
Due to related parties 1,434
Related Party J [Member]    
Related Party Transaction [Line Items]    
Due to related parties 335,669 390,333
Related Party K [Member]    
Related Party Transaction [Line Items]    
Due to related parties 4,752 8,508
Related Party [Member]    
Related Party Transaction [Line Items]    
Due to related parties $ 436,578 $ 448,251
v3.23.3
SCHEDULE OF INCOME FROM OR EXPENSES TO RELATED PARTIES (Details) - USD ($)
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Related Party Transaction [Line Items]          
Deferred cost of revenue to a related party $ 83,479   $ 83,479   $ 168,605
Deferred revenue from related parties 1,340,911   1,340,911   1,834,244
Cost of revenues to a related party [1]     402,363 $ 845,713  
Reversal of impairment (impairment) of other investment $ (246,100) 6,882,000 (1,459,900) (4,208,029)
Related Party B [Member]          
Related Party Transaction [Line Items]          
Deferred cost of revenue to a related party     11,640
Deferred revenue from related parties 236,800   236,800   749,400
Service revenue from related parties     937,823 482,102  
Cost of revenues to a related party     23,280  
General and administrative expenses to related parties     21,780 4,235  
Other income from related parties     2,297  
Reversal of impairment (impairment) of other investment     6,882,000 (1,459,900)  
Related Party E [Member]          
Related Party Transaction [Line Items]          
Deferred revenue from related parties     100,000
Service revenue from related parties     255,463 6,141  
Related Party [Member]          
Related Party Transaction [Line Items]          
Deferred revenue from related parties 236,800   236,800   $ 849,400
Service revenue from related parties 648,377 41,431 1,232,526 548,602  
Cost of revenues to a related party 23,280 0 23,280 0  
General and administrative expenses to related parties 13,687 17,461 90,407 53,689  
Other income from related parties $ 3,425 $ 1,123 10,158 1,123  
Related Party A [Member]          
Related Party Transaction [Line Items]          
Service revenue from related parties     3,327 22,827  
General and administrative expenses to related parties     4,929  
Related Party D [Member]          
Related Party Transaction [Line Items]          
Service revenue from related parties     28,384 24,183  
General and administrative expenses to related parties     24,559  
Other income from related parties     7,861 1,123  
Related Party G [Member]          
Related Party Transaction [Line Items]          
Service revenue from related parties     7,407 12,480  
Related Party I [Member]          
Related Party Transaction [Line Items]          
Service revenue from related parties     824  
General and administrative expenses to related parties     11,911 12,368  
Related Party K [Member]          
Related Party Transaction [Line Items]          
Service revenue from related parties     122 45  
General and administrative expenses to related parties     $ 32,157 $ 32,157  
[1] Revenues and costs are attributed to countries based on the location where the entities operate.
v3.23.3
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)
 9 Months Ended 12 Months Ended
Sep. 30, 2023
Dec. 31, 2018
Related Party H [Member]    
Related Party Transaction [Line Items]    
Ownership percentage 48.00% 49.00%
Total consideration on acquisition   $ 368,265
Impairment of other investments   $ 368,265
Related Party B [Member]    
Related Party Transaction [Line Items]    
Related party transaction, description of transaction the Company owns a certain percentage ranging from 1% to 18% of their company shares  
v3.23.3
SCHEDULE OF SUMMARIZED FINANCIAL INFORMATION (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Segment Reporting Information [Line Items]        
Revenues $ 1,070,972 $ 1,306,439 $ 2,309,592 [1] $ 2,690,227 [1]
Cost of revenues [1]     (402,363) (845,713)
Depreciation and amortization expenses [1]     (176,394) (181,194)
Impairment [1]     6,882,000 (1,459,900)
Reversal of write-off notes receivable 400,000 [1]
Net (loss) income (120,994) (452,805) 6,563,458 [1] (2,414,835) [1]
Total assets [1] 14,356,116 19,402,705 14,356,116 19,402,705
Capital expenditures for long-lived assets [1]     33,240 2,244
HONG KONG        
Segment Reporting Information [Line Items]        
Revenues 914,694 856,319 1,810,445 [1] 1,594,017 [1]
Cost of revenues [1]     (228,919) (614,162)
Depreciation and amortization expenses [1]     (72,287) (71,215)
Impairment [1]     6,882,000 (1,459,900)
Reversal of write-off notes receivable [1]     400,000  
Net (loss) income [1]     6,931,606 (2,501,120)
Total assets [1] 10,120,222 14,521,340 10,120,222 14,521,340
Capital expenditures for long-lived assets [1]     1,511
MALAYSIA        
Segment Reporting Information [Line Items]        
Revenues 82,618 119,390 236,847 [1] 387,824 [1]
Cost of revenues [1]     (130,948) (159,755)
Depreciation and amortization expenses [1]     (23,940) (23,404)
Impairment [1]    
Reversal of write-off notes receivable [1]      
Net (loss) income [1]     (383,491) (553)
Total assets [1] 1,654,668 2,026,138 1,654,668 2,026,138
Capital expenditures for long-lived assets [1]     30,217 1,164
CHINA        
Segment Reporting Information [Line Items]        
Revenues 73,660 330,730 262,300 [1] 708,386 [1]
Cost of revenues [1]     (42,496) (71,796)
Depreciation and amortization expenses [1]     (80,167) (86,575)
Impairment [1]    
Reversal of write-off notes receivable [1]      
Net (loss) income [1]     15,343 86,838
Total assets [1] 2,581,226 2,855,227 2,581,226 2,855,227
Capital expenditures for long-lived assets [1]     1,512 1,080
Real Estates [Member]        
Segment Reporting Information [Line Items]        
Revenues     70,238 929,347
Cost of revenues     (28,315) (606,276)
Depreciation and amortization expenses     (23,758) (23,404)
Impairment    
Reversal of write-off notes receivable      
Net (loss) income     (44,550) 240,271
Total assets 1,704,170 1,850,721 1,704,170 1,850,721
Capital expenditures for long-lived assets    
Service Business [Member]        
Segment Reporting Information [Line Items]        
Revenues     2,239,354 1,760,880
Cost of revenues     (374,048) (239,437)
Depreciation and amortization expenses     (152,285) (153,798)
Impairment    
Reversal of write-off notes receivable      
Net (loss) income     (371,709) (1,974,981)
Total assets 5,675,545 6,914,212 5,675,545 6,914,212
Capital expenditures for long-lived assets     33,240 2,244
Corporate Segment [Member]        
Segment Reporting Information [Line Items]        
Revenues    
Cost of revenues    
Depreciation and amortization expenses     (351) (3,992)
Impairment     6,882,000 (1,459,900)
Reversal of write-off notes receivable     400,000  
Net (loss) income     6,979,717 (680,125)
Total assets $ 6,976,401 $ 10,637,772 6,976,401 10,637,772
Capital expenditures for long-lived assets    
[1] Revenues and costs are attributed to countries based on the location where the entities operate.
v3.23.3
SEGMENT INFORMATION (Details Narrative)
 9 Months Ended
Sep. 30, 2023
Integer
Segment Reporting [Abstract]  
Number of reportable segments 2
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