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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-K/A

(Amendment No. 3)

 

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

 

For the fiscal year ended December 31, 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 000-55685

 

FINTECH SCION LIMITED
(Exact name of registrant as specified in its charter)

 

Nevada   30-0803939
(State or other jurisdiction of incorporation or organization)   (I.R.S. Employer Identification No.)

 

Portman House, 2 Portman Street

London, W1H 6DU

United Kingdom

   N/A
(Address of principal executive offices)   (Zip Code)

 

+44 203 982 5041

(Registrant’s telephone number, including area code)

 

N/A

(Former name, former address and former fiscal year, if changed since last report)

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

 

Title of each class  

Trading

Symbol(s)

  

Name of each exchange

on which registered

None   N/A   N/A

 

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

 

Common Stock, $0.001 par value 

(Title of class)

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.   

Yes ☐ No ☒

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.  

Yes ☐ No ☒

 

 

 

 

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 every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such 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” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

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 has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

 

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

 

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐  

 

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

 

The aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the Registrant’s most recently completed fiscal year was $2,628,493 (computed using the closing sales price of $2.25 per share of common stock on such date). 

 

198,742,643 shares of common stock were issued and outstanding as of March 15, 2024.

 

Documents Incorporated by Reference: None.

 

 

 

 

Explanatory Note

 

This Amendment No. 3 to Form 10-K (this “Amendment No. 3”) amends the Annual Report to Form 10-K for the fiscal year ended December 31, 2023 originally filed on April 5, 2024 (the “Original Filing”) by Fintech Scion Limited, a Nevada corporation (“Fintech,” the “Company,” “we,” or “us”), which inadvertently included the wrong audit report from Pan-China Singapore PAC.

 

We are filing this Amendment No. 3 to include the correct audit report from Pan-China Singapore PAC as of December 31, 2023 (the “Audit Report”) and to amend Item 15 of Part IV, solely to include, as Exhibits 31.1, 31.2 and 32.1, new certifications of our principal executive officer and principal financial officer pursuant to Rule 13a-14(a) and 13a-14(b) under the Exchange Act of 1934 (the “Exchange Act”). by Rule 13a-14(b) under the Exchange Act

 

Other than the Audit Report and the filing of related certifications added to the list of Exhibits in Item 15 of Part IV, this Amendment No.3 makes no other changes to the Original Filing. The Original Filing continues to speak as of the date of the Original Filing, respectively, and we have not updated the disclosures contained therein to reflect any events which occurred at a date subsequent to the filing of the Original Filing. Accordingly, this Amendment No. 3 should be read in conjunction with our Original Filing and our other filings made with the SEC subsequent to the filing of the Form 10-K.

 

 

 

 

FINANCIAL STATEMENTS

 

  Page Number
FINTECH SCION LIMITED, Audited Consolidated Financial Statements   
Report of Independent Registered Public Accounting Firms F-2
Consolidated Balance Sheets as of December 31, 2023 and 2022 F-4
Consolidated Statements of Income or Loss and Comprehensive Income or Loss for the years ended December 31, 2023 and 2022 F-5
Consolidated Statements of Stockholders’ Equity F-6
Consolidated Statements of Cash Flows for the years ended December 31, 2023 and 2022 F-7
Notes to the Consolidated Financial Statements F-8–F-22

 

 F-1

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To: The Board of Directors and Stockholders of
  Fintech Scion Ltd

 

Opinion on the Financial Statements

 

We have audited the accompanying consolidated balance sheets of Fintech Scion Ltd (the Company) as of December 31, 2023 and 2022, and the related consolidated statement of operations and comprehensive income (loss), changes in equity, and cash flow for each of the two years in the period ended December 31, 2023, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the result of its operations and its cash flow for each of the two years in the period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States.

 

Basis for Opinion

 

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

 

Critical Audit Matters

 

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing a separate opinion on the critical audit matters or on the accounts or disclosures to which it relates.

 

Goodwill

 

Critical Audit Matter Description

 

As reflected in the Company’s consolidated financial statements, at December 31, 2023, the Company’s goodwill was $16,657,653 (2022: $55,794,524). As disclosed in Note 5 to the financial consolidated financial statements, the Company’s evaluation of goodwill for impairment involves the comparison of the fair value of the reporting unit to its carrying value. The Company uses the discounted cash flow model to estimate fair value which requires management to make significant estimates and assumptions related to forecasts of future revenue and operating margin. In additional, the fair value estimates of the reporting units were sensitive to changes in significant assumptions such as discount rates, expected future cash flows, long-term growth rates and comparable company earnings multiples. Changes in these assumptions could have a significant impact on either the fair value, the amount of any goodwill impairment charge, or both. Significant management judgment was required to forecast future revenue and operating margin to estimate the fair value of the reporting unit. In turn, a high degree of auditor judgment and an increase extend of audit effort were required when performing.

 

 F-2

 

 

As discussed in Note 5 to the financial statements, the Company recognized goodwill of $16,657,653 (2022: $55,794,524) being the balance of goodwill deriving from the reverse acquisition that has occurred during the year ended December 31, 2022. As a result of the significant carrying amount of goodwill recognized, any further goodwill impairment will cause a significant adverse financial impact on the Company, and that could raise substantial doubt about the Company’s ability to continue as a going concern.

 

How the Critical Audit Matter Was Addressed in the Audit

 

Our audit procedures related to the forecasts of future revenue and operating margin and selection of comparable company valuation indicators

 

  ● We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s goodwill impairment assessment process. For example, we tested controls over the Company’s long range planning process as well as controls over the review of the significant assumptions in estimating the fair values of the reporting units.
  ● To test the fair values of the reporting units, our audit procedures included, among others, assessing methodologies, testing the significant assumptions described above, and testing the completeness and accuracy of the underlying data used by the Company. Our testing procedures over the significant assumptions included, among others, comparing forecasted revenue and operating margins to current industry and economic trends. We assessed the historical accuracy of management’s estimates by comparing past projections to actual performance and assessed sensitivity analyses of significant assumptions to evaluate the changes in the fair value of the reporting units resulting from changes in the assumptions.

 

Related party balances and transaction

 

Critical Audit Matter Description

 

As disclosed in Note 10 to the financial consolidated financial statements, the Company conducted transactions with its related parties and affiliates during the normal course of its business in 2023. The Company has entered into a number of transactions with these related parties, including loan from ex-director and company expenses paid by the director. Auditor judgment was involved in assessing the sufficiency of the procedures performed to identify related parties and related party transactions of the Company.

 

How the Critical Audit Matter Was Addressed in the Audit

 

We performed the following procedures to evaluate the identification of related parties and related party transactions by the Company:

 

● Conducted background checks, and reviewed other public research sources for information related to transactions between the Company and its related parties
● Performed confirmations for account balances with related parties
● Reviewed transaction details in the director accounts for transactions with related parties
● Examined the Company’s reconciliation of its related parties’ transactions and balances

 

Pan-China Singapore PAC (6255) 

Chartered Accountants 

Singapore  

May 9,2024 except for the amendment of typo regarding inclusion of year 2022 in the audit report dated April 5, 2024 which is superseded.

 

We have served as the Company’s auditor since 2021

 

 F-3

 

 

FINTECH SCION LIMITED    

CONSOLIDATED BALANCE SHEET   

(Stated in US Dollars) 

 

         
   As of   As of 
   December 31,   December 31, 
   2023   2022 
ASSETS          
Current assets          
Cash and cash equivalents  $3,765,959   $3,791,378 
Accounts receivable   59,974    1,792,195 
Amount due from related parties   —    1,296,935 
Other receivables, prepayments and other current assets   509,451    1,049,292 
Inventories   12,000    2,272 
Total Current Assets   4,347,384    7,932,072 
           
Non-current assets          
Intangible asset   34,707    59,803 
Goodwill   16,657,653    55,794,524 
Property and equipment, net   38,600    38,862 
Total Non-Current Assets   16,730,960    55,893,189 
           
TOTAL ASSETS  $21,078,344   $63,825,261 
           
LIABILITIES          
Current liabilities          
Amounts due to related parties  $755,040   $2,463,833 
Accounts payable   47,662    617,655 
Accruals and other payables   1,953,160    1,861,979 
Total Current Liabilities   2,755,862    4,943,467 
           
Non-current liabilities   —    — 
TOTAL LIABILITIES   2,755,862    4,943,467 
           
Commitments and Contingencies (Note 11)          
           
STOCKHOLDERS’ EQUITY          
Preferred stock par value $0.001: 25,000,000 shares authorized; and 0 outstanding   —    — 
Common stock par value $0.001: 400,000,000 and $0.001: 400,000,000 shares authorized, respectively; 298,742,643 and 198,742,643 shares issued and outstanding, respectively   298,743    198,743 
Additional paid-in capital   111,770,998    111,770,998 
Merger reserves   (55,000,000)   (55,000,000)
Accumulated surplus/(deficit)   (39,319,015)   1,342,788 
Accumulated other comprehensive income   569,339    565,935 
Equity attributable to equity holders of the parent   18,320,065    58,878,464 
Non-controlling interests   2,417    3,330 
Total Stockholders’ Equity   18,322,482    58,881,794 
           
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY  $21,078,344   $63,825,261 

 

The accompanying notes are an integral part of the consolidated financial statements.

 

 F-4

 

 

FINTECH SCION LIMITED    

CONSOLIDATED STATEMENTS OF INCOME OR LOSS AND COMPREHENSIVE INCOME OR LOSS  

(In U.S. dollars)  

         
   For the Years Ended
December, 31		 
   2023   2022 
REVENUE  $2,420,184   $3,084,279 
           
COST OF REVENUE   (688,630)   (430,281)
           
GROSS PROFIT   1,731,554    2,653,998 
           
OPERATING EXPENSES          
Selling expense   —    (9,790)
General and administrative expenses   (3,415,786)   (1,863,982)
Impairment of goodwill   (39,136,871)   — 
Total Operating Expenses   (42,552,657)   (1,873,772)
           
PROFIT/(LOSS) FROM OPERATIONS   (40,821,103)   780,226 
           
OTHER INCOME / (EXPENSE), NET          
Other income   397,532    5,531,606 
Other expense   (73,660)   (387,805)
Total other income / (expense), net   323,872    5,143,801 
NET INCOME / (LOSS) BEFORE TAX   (40,497,231)   5,924,027 
           
Income tax   (165,485)   (5,057)
NET INCOME / (LOSS)  $(40,662,716)  $5,918,970 
           
Loss attributable to non-controlling interest   913    — 
NET INCOME / (LOSS) FOR THE PERIOD   (40,661,803)   5,918,970 
           
OTHER COMPREHENSIVE INCOME / (LOSS)          
Foreign currency translation adjustment   3,404    308,288 
           
TOTAL COMPREHENSIVE INCOME / (LOSS)  $(40,658,399)  $6,227,258 
           
Weighted average number of common shares outstanding - basic and diluted   298,742,643    198,742,643 
           
Net income / (loss) per share - basic and diluted  $(0.14)  $0.03 

    

The accompanying notes are an integral part of the consolidated financial statements.

 

 F-5

 

 

FINTECH SCION LIMITED    

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY   

(Stated in US Dollars)  

                                                 
    Common stock     Additional
paid-in		     Merger     Accumulated
gain /		     Accumulated
other comprehensive		     Non-
controlling		     Total
stockholders’		  
    Shares     Amount     capital     reserves     (deficit)     income / (loss)     interest     equity  
Balance, December 31, 2020     54,087,903     $ 5,409     $ 4,749,798     $ —     $ (9,576,061 )   $ 87,592     $ —     $ (4,733,262 )
Net loss     —       —       —       —       (22,758 )     —       —       (22,758 )
Foreign currency translation adjustment     —       —       —       —       —       170,055       —       170,055  
Balance, December 31, 2021     54,087,903     $ 5,409     $ 4,749,798     $ —     $ (9,598,819 )   $ 257,647     $ —     $ (4,585,965 )
Net income     —       —       —       —       5,918,970       —       —       5,918,970  
Reverse stock split     (48,678,593 )     —       —       —       —       —       —       —  
Issuance of stock     193,333,333       193,334       —       —       —       —       —       193,334  
Acquisition of subsidiaries     —       —       113,389,440       (55,000,000 )     —       —       3,330       58,392,770  
Reserve release upon disposal of subsidiaries     —       —       (1,345,603 )     —       —       —       —       (1,345,603 )
Reverse merger recapitalization     —       —       (5,022,637 )     —       5,022,637       —       —       —  
Foreign currency translation adjustment     —       —       —       —       —       308,288       —       308,288  
Balance, December 31, 2022     198,742,643     $ 198,743     $ 111,770,998     $ (55,000,000 )   $ 1,342,788     $ 565,935     $ 3,330     $ 58,881,794  
Net income     —       —       —       —       (40,661,803 )     —       (913 )     (40,662,716 )
Foreign currency translation adjustment                                             3,404               3,404  
Issuance of stock     100,000,000       100,000                                               100,000  
Balance, December 31, 2023     298,742,643     $ 298,743     $ 111,770,998     $ (55,000,000 )   $ (39,319,015 )   $ 569,339     $ 2,417     $ 18,322,482  

 

The accompanying notes are an integral part of the consolidated financial statements.

 

 F-6

 

 

FINTECH SCION LIMITED  

CONSOLIDATED STATEMENTS OF CASH FLOWS  

         
   For the Year Ended December 31, 
   2023   2022 
CASH FLOWS FROM OPERATING ACTIVITIES          
Net income / (loss)  $(40,662,716)  $5,918,970 
Items not involving cash:          
Depreciation and amortization of– property, plant and equipment and right-of-use assets   37,853    37,471 
Gain on disposal of subsidiaries   —    (5,481,178)
Impairment on goodwill   39,136,871    — 
Changes in operating assets and liabilities:          
Accounts receivables   1,732,221    (1,792,195)
Other receivables, prepayments and other current assets   539,842    (1,011,960)
Inventories   (9,728)   (2,272)
Accounts payable   (569,993)   617,577 
Commission payables   —    (126,315)
Accrued expense and other payables   91,181    1,519,318 
Net (used in) / cash generated by operating activities   295,531    (320,584)
           
CASH FLOWS FROM INVESTING ACTIVITIES          
Purchase of property and equipment   (12,496)   — 
Disposal of subsidiaries, net of cash disposed   —    (75,389)
Acquisition of subsidiaries, net cash acquired   —    3,791,378 
Net (used in) / cash generated by investing activities   (12,496)   3,715,989 
           
CASH FLOWS FROM FINANCING ACTIVITIES          
(Repayment to) / proceed from related parties   (411,858)   391,805 
Proceeds from issuance of shares   100,000    — 
Net cash generated by / (used in) financing activities   (311,858)   391,805 
           
EFFECT OF EXCHANGE RATES ON CASH   3,404    (32,865)
           
NET CHANGE IN CASH AND CASH EQUIVALENTS   (25,419)   3,754,345 
           
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR   3,791,378    37,033 
           
CASH AND CASH EQUIVALENTS, END OF YEAR  $3,765,959   $3,791,378 
           
SUPPLEMENTAL OF CASH FLOW INFORMATION          
           
Cash paid for interest expenses  $—   $— 
Cash paid for income tax  $—   $— 

    

The accompanying notes are an integral part of the consolidated financial statements.

 

 F-7

 

 

FINTECH SCION LIMITED  

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

(In U.S. dollars)

 

1. ORGANIZATION AND BUSINESS

 

Fintech Scion Limited (“the Company”) previously known as HWGC Holdings Limited, incorporated in Nevada.

 

The Company holds the following equity interests in its subsidiaries:

 

                          Interest  
No.   Name of subsidiary  

Country of 

incorporation 

  

2023 

% 

    

2022 

% 

     Principal activities
1   FintechCashier Asia P.L.C., previously known as HWGG Capital P.L.C. (“FintechAsia”)      Malaysia   100     100     Money broking
2   HWG Cash Singapore Pte Ltd (“HCS”)   Singapore   55     55     Trading of digital assets
3   HWGC KZ Limited (“HKZ”)   Kazakhstan   100     100     Software development
4   Fintech Scion Limited (“Fintech”)   United Kingdom   100     100     Holding company and protection of Intellectual Property
5   Fintech Digital Solutions Limited (“FDS”)   United Kingdom   100     100     Digital payment services
6   Fintech Digital Consulting Limited (“FDC”)   United Kingdom   100     100     Technology provider and payment consulting
7   Aelora Sdn Bhd, previously known as Vitaxel Sdn Bhd (“ASB”)   Malaysia   —     100(1)     Direct selling industry
8   Vitaxel Online Mall Sdn Bhd (“VOM”)   Malaysia   —     100(1)     Online shopping platforms

 

(1)ASB and VOM were disposed by the Company on December 30, 2022.

 

The Company is previously engaged in direct selling industry and online shopping platform primarily through its operating entities in Malaysia. On December 30, 2022, the Company restructured after the consummation of two share exchange agreements and the disposal of ASB and VOM. The Company upon the restructuring, offers digital banking services by providing the tools, skills, and solutions to facilitate payment services to merchants, offering a variety of secured, online and fully managed transactions and settlements.

 

Restructuring Transactions

 

The following restructuring transactions has occurred during the year ended December 31, 2023 and 2022:

 

  i. Acquisition of FintechAsia
  ii. Acquisition of Fintech
  iii. Disposal of ASB and VOM
  iv. Acquisition of Assets and Termination

 

 F-8

 

 

Acquisition of FintechAsia

 

On July 21, 2022, the Company entered into a share exchange agreement with FintechAsia. Prior to the consummation of the share exchange agreement, FintechAsia is also under the control of the Company’s management. Under this share exchange agreement, the Company is to acquire all issued and outstanding ordinary shares of FintechAsia in exchange for an aggregate of $55,000,000. The number of exchange shares were calculated based on $0.60 share price. The number of shares of common stock of the Company issued upon consummation of the share exchange agreement was 91,666,667 shares.

 

On November 15, 2022, the Company completed the acquisition of FintechAsia upon the consummation of the share exchange agreement with the shareholders of FintechAsia.

 

HCS and HKZ become the subsidiaries of the Company upon the completion of the acquisition of FintechAsia.

 

The acquisition of FintechAsia is accounted for as a reorganization of entities under common control. As a result, the Company measured the recognized assets and liabilities combined at their historical cost at the acquisition date. The difference between consideration paid and assets and liabilities received are presented as a component of equity; merger reserves and additional paid-in-capital.

 

The number of common stock outstanding upon the consummation of the share exchange agreement was 97,075,977.

 

Acquisition of Fintech

 

On August 9, 2022, the Company entered into a share exchange agreement with Fintech. Under this share exchange agreement with Fintech, the Company acquired all issued and outstanding ordinary shares of Fintech from the Fintech’s shareholders in exchange for an aggregate of $61,000,000. The number of exchange shares were calculated based on $0.60 share price. The number of shares of common stock of the Company issued upon consummation of this share exchange agreement was 101,666,666 shares.

 

On November 30, 2022, the Company completed the acquisition of Fintech upon the consummation of the share exchange agreement with the shareholders of Fintech.

 

FDS and FDC become the subsidiaries of the Company upon the completion of the acquisition of Fintech.

 

Upon consummation of the share exchange with Fintech, the owners and management of Fintech have voting and operation control of the Company. This gives effect to the reverse acquisition transaction (“reverse acquisition”). The Company recognized goodwill arising from the excess in purchase consideration as compared to the estimated fair value of the Company.

 

In determining the purchase consideration for both the HWGG and Fintech acquisition, the Company adopted the acquisition date fair value at $0.60, which is also the most reliable reference estimate which approximate the quoted price of the Company at acquisition date.

 

The number of common stock outstanding upon the consummation of the share exchange agreement was 198,742,643.

 

Goodwill recognized is further disclosed in Note 5: Goodwill.

 

 F-9

 

 

Disposal of ASB & VOM

 

On December 30, 2022, the Company entered into a stock purchase agreement with Mr Leong Yee Ming, the previous director and CEO of the Company, and for the purposes of the assignment of certain intercompany debt.

 

Pursuant to the terms of the agreement, the Company sold to Mr Leong, all issued and outstanding shares of ASB and VOM, for an aggregate purchase price of RM4,500,002 (approximately $1,124,998). The purchase price was paid by Mr Leong’s assumption of a certain amount of intercompany debt owed by the Company to ASB.

 

Upon completion of the disposal, ASB and VOM ceased to be the subsidiary of the Company as at December 31, 2022. The disposal had the following financial effects on the Company for the year ended December 31, 2022:  

             
   For the year ended December 31, 2022 
   ASB   VOM   Total 
Property, plant and equipment, net.  $11,824   $229   $12,053 
Rights-of-use assets   13,854    —    13,854 
Cash and cash equivalents   75,389    —    75,389 
Other receivables, prepayments and other current assets   10,793    2,156    12,949 
Other payables   (4,365,372)   (25,528)   (4,390,900)
Lease liabilities   (79,525)   —    (79,525)
Net liabilities disposed  $(4,333,037)  $(23,143)   (4,356,180)
Consideration received, satisfied in assignment of intercompany debt   (1,124,997)   (1)   (1,124,998)
Net gain on disposal of subsidiaries  $(5,458,034)  $(23,144)  $(5,481,178)

 

Acquisitions of Assets & Termination

 

On October 11, 2023, the Company entered into an Asset Conveyance Agreement (the “Purchase Agreement”) with CICO Digital Solutions Limited, a British Columbia company (“CICO” and a related party company that has a common control by a major shareholder of the Company). The Purchase Agreement provided for the acquisition by the Company of substantially all of the assets of CICO (the “Assets”) related to CICO’s business of providing a service platform and software application for payment services from CICO. As consideration for the transfer and sale of the Assets, the Company issued CICO 100,000,000 restricted shares of common stock of the Company, par value $0.001 per share (the “Shares”).

 

On December 27, 2023, the Company and CICO mutually and voluntarily agreed to unwind the transaction contemplated by the Purchase Agreement. Upon termination, each of the parties to the Purchase Agreement were relieved of their respective rights, liabilities, expenses and other obligations under the Purchase Agreement. In connection therewith, CICO transferred the Shares back to the Company for cancellation upon receipt. The Shares were cancelled and removed from the Company’s issued and outstanding shares of common stock on January 30, 2024.

 

 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  

 

Basis of presentation

 

The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

 

This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred. The Company’s financial statements are expressed in U.S. dollars.

 

Principles of Consolidation

 

The consolidated financial statements include the accounts of the Company and its subsidiaries. On consolidation, all intercompany balances and transactions are eliminated.

 

Use of estimates

 

The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. The Company regularly evaluates estimates and assumptions. The Company bases its estimates and assumptions on current facts, historical experience and various other factors it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. Significant areas of estimate include useful lives of property and equipment, impairment of long-term assets and deferred income tax obligations. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. 

 

 F-10

 

 

Foreign currency translation and transactions

 

The functional currency of the Company is United States Dollar (US Dollars). The  Company translates the financial statements of its foreign subsidiary from the local (functional) currency into US Dollars using the year or reporting period end or average exchange rates in accordance with the requirements of Accounting Standards Codification subtopic 830-10, Foreign Currency Matters (“ASC 830-10”). Assets and liabilities of these subsidiaries were translated at exchange rates as of the balance sheet date. Revenues and expenses are translated at average rates in effect for the periods presented. Translation gains and losses are recorded in accumulated other comprehensive income or loss as a component of shareholders’ equity.

 

Cash and cash equivalents

 

Cash and cash equivalents consist of cash on hand and highly liquid investments, which are unrestricted from withdrawal or use, and which have original maturities of three months or less when purchased.

 

Accounts receivable

 

Accounts receivable are recognized and carried at original invoiced amount less an allowance for any potential uncollectible amounts. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. The Company generally does not require collateral from its customers. For the year ended December 31, 2023 and 2022, the Company wrote down $39,310 and $nil respectively, of its accounts receivable were written off as bad debts.  

 

Fair value of financial instruments

 

FASB ASC 820, “Fair Value Measurement,” specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources (observable inputs). In accordance with ASC 820, the following summarizes the fair value hierarchy:

 

Level 1 Inputs – Unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access.

 

Level 2 Inputs – Inputs other than the quoted prices in active markets that are observable either directly or indirectly.

 

Level 3 Inputs – Inputs based on prices or valuation techniques that are both unobservable and significant to the overall fair value measurements.

 

ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurements. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. As of December 31, 2023 and 2022, none of the Company’s assets and liabilities was required to be reported at fair value on a recurring basis. Carrying values of non-derivative financial instruments, including cash, accounts receivables, payables and accrued liabilities, approximate their fair values due to the short-term nature of these financial instruments. There were no changes in methods or assumptions during the periods presented.

 

Inventories

 

Inventories consist of finished goods and prepaid cards. Inventories are stated at lower of cost or net realizable value, with cost determined on a weighted-average method, and not to exceed net realizable value. The Company writes down its inventory balances for obsolete amounts estimated on an individual basis for the finished goods. For the year ended December 31, 2023 and 2022, the Company wrote down $nil and $nil respectively, of its inventories that have been obsolete.

 

 F-11

 

 

Goodwill

 

Goodwill is not amortized but is subject to annual impairment tests. Goodwill has been assigned to reporting units. Potential impairment of a reporting unit is identified by either comparing a reporting unit’s estimated fair value to its carrying amount or doing a qualitative assessment of a reporting unit’s fair value from the last quantitative assessment to determine if there is potential impairment. We may do a qualitative assessment when the results of the previous quantitative test indicated the reporting unit’s estimated fair value was significantly in excess of the carrying value of its net assets and we do not believe there have been significant changes in the reporting unit’s operations that would significantly decrease its estimated fair value. If a quantitative assessment is performed, the fair value of the reporting unit and the fair value of goodwill are determined based upon a discounted cash flow analysis and/or use of a market approach by looking at market values of comparable companies. Significant assumptions are incorporated into our discounted cash flow analyses such as forecasted net sales, revenue growth rates, forecasted operating expenses and risk-adjusted discount rates. We perform this test in the fourth quarter of the year or whenever events or changes in circumstances indicate that the fair value of the reporting unit is more likely than not below its carrying amount. If the fair value of the reporting unit is less than its carrying value, an impairment loss is recorded in the amount that the carrying value of the reporting unit exceeds the fair value. See Note 5 for more information regarding goodwill.

 

Impairment of Long-Lived Assets

 

The Company periodically reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset.

 

Intangible assets

 

Intangible assets primarily include trademarks and trade secrets with indefinite lives and customer-relationships with finite lives. Intangible assets with indefinite lives are not amortized but are tested for impairment on an annual basis, or more frequently if indicators of impairment are present. Indefinite lived intangible assets are assessed using either a qualitative or a quantitative approach. The qualitative assessment evaluates factors including macro-economic conditions, industry and company-specific factors, legal and regulatory environments, and historical company performance in assessing fair value. If it is determined that it is more likely than not that the fair value of the intangible asset is less than its carrying value, a quantitative test is then performed. Otherwise, no further testing is required. When using a quantitative approach, the Company compares the fair value of the intangible asset to its carrying amount, including goodwill. If the estimated fair value of the intangible asset is less than the carrying amount of the intangible asset, impairment is indicated, requiring recognition of an impairment charge for the differential.

 

Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives. The Company reviews for impairment indicators of finite-lived intangibles and other long-lived assets as described in the “Impairment of Long-Lived Assets” significant accounting policy.

 

Property and equipment, net

 

Property and equipment are carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives: 

 

  Office equipment 5 years    
  Computer equipment 5 years    
  Furniture and fixtures 5 years    
  Electrical & fitting 5 years    
  Software and website 5 years    

 

The residual values, useful lives and methods of depreciation of property and equipment are reviewed and adjusted if appropriate, on an annual basis.

 

 F-12

 

 

Leases

 

The Company assesses, at the inception of contract, whether it contains a lease. A contract is classified as a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

 

The Company recognizes a right-of-use asset and lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises of the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any indirect costs incurred.

 

The right-to-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-to-use asset or the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses and adjusted for certain remeasurements of the lease liability, if any.

 

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be determined, the Company’s incremental borrowing rate. The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made. It is remeasured when there is a change in future lease payment arising from a change in an index or rate, or changes in assessment of whether a purchase or extension option is reasonably certain to be exercised or a termination option is reasonably certain not to be exercised.

 

Revenue recognition

 

The primary source of our revenue is the transaction fees from financial payment and settlement services.

 

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

 

Revenue is generated through delivery services. Revenue is recognized when a customer receives services and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those services. The Company applies the following five-step model in order to determine this amount:

 

(i)     identification of the services in the contract;  

(ii)    determination of whether the services are performance obligations, including whether they are distinct in the context of the contract;  

(iii)   measurement of the transaction price, including the constraint on variable consideration;  

(iv)   allocation of the transaction price to the performance obligations; and  

(v)    recognition of revenue when (or as) the Company satisfies each performance obligation.

 

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 goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers as services are performed over the remaining contractual terms.

 

 F-13

 

 

Research and Development Costs

 

Research and development (“R&D”) costs are charged to expense in the periods incurred. There were no expenditures incurred by the Company for research and development for the year ended December 31, 2023 and 2022.

 

Commission expense

 

Commission expense incurred by the Company is recognized as cost of revenue and as a liability (commission payable in the consolidated balance sheet. Commission expense is not recoverable once recognized and is expensed as incurred.

 

Income Taxes

 

Income taxes are determined using the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes that date of enactment. In addition, a valuation allowance is established to reduce any deferred tax asset for which it is determined that it is more likely than not that some portion of the deferred tax asset will not be realized. 

 

Uncertain Tax Positions

 

The impact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes are classified as a component of the provisions for income taxes. As of December 31, 2023 and 2022, the Company recognized income tax of expense of $165,485 and $5,057 respectively.

 

Comprehensive income / loss

 

Comprehensive income / loss includes net gain/loss and cumulative foreign currency translation adjustments and is reported in the Consolidated Statement of Comprehensive Income or Loss.

 

Income / Loss per share

 

The income / loss per share is computed using the weighted average number of shares outstanding during the fiscal years. For the years ended December 31, 2023 and 2022, there was no dilutive effect due to net gain / loss.

 

 F-14

 

 

Related party transactions

 

The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.

 

Pursuant to Section 850-10-20 the related parties include (a) affiliates of the registrant; (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; (d) principal owners of the Company; (e) management of the Company; (f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The financial statements include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s) involved; (b) description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

 

Recently issued accounting pronouncements

 

Accounting standards promulgated by the FASB are subject to change. Changes in such standards may have an impact on the Company’s future financial statements. The following are a summary of recent accounting developments.

 

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) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective January 1, 2024 for the Company and should be applied on a full or modified retrospective basis, with early adoption permitted beginning January 1, 2021. The Company has determined not to early adopt ASU 2020-06. The implementation of this accounting treatment is not expected to have a material effect on the Company’s financial statements.

 

Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the Securities and Exchange Commission (“SEC”) did not, or are not believed by management, to have a material impact on the Company’s present and future consolidated financial statements.

 

Accounting Pronouncements Not Yet Adopted

 

In November 2023, the Financial Accounting Standards Board (FASB) issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07), which requires an enhanced disclosure of significant segment expenses on an annual and interim basis. This guidance will be effective for the annual periods beginning the year ended December 31, 2024, and for interim periods beginning January 1, 2025. Early adoption is permitted. Upon adoption, the guidance should be applied retrospectively to all prior periods presented in the financial statements. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

 

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which improves the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation and income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. This guidance will be effective for the annual periods beginning the year ended December 31, 2025. Early adoption is permitted. Upon adoption, the guidance can be applied prospectively or retrospectively. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

 

 F-15

 

  

3. ACCOUNTS RECEIVABLES

 

Accounts receivable represent balances from: 

 

  (i) transactions fees receivable generated from financial payment and settlement services;
  (ii) non-interest-bearing credit tokens issue to authorized agents.

 

Services billed are generally settled upon financial services has been rendered. Only limited clients are extended with credits.

 

As at December 31, 2023, we had accounts receivable of $59,974 solely derived from commissions receivables. During the year, the company recognized bad debts of $39,310. As of December 31, 2022, accounts receivable balances of $1,792,195 mainly derived from commission receivable of $597,986 and non-interest-bearing credit tokens issued to authorized agents of $1,194,208.   

 

The company has assessed the impairment and considers the remaining accounts receivable to be fully collectible, therefore no further impairment is necessary as at December 31, 2023.

 

 

4. OTHER RECEIVABLES, PREPAYMENTS AND OTHER CURRENT ASSETS

 

Other receivables, prepayments and other current assets consist of the following:

 

   As of 
December 31,
2023		   As of 
December 31,
2022		 
         
Other receivables (1)  $294,780   $949,430 
Deposits (2)  $110,161   $87,805 
Prepayments (3)  $4,510   $12,057 
Common stock not paid (4)  $100,000   $— 
Total  $509,451   $1,049,292 

  

  (1) Other receivables primarily represent balances in liquidity solution providers.
  (2) Deposits represented payments for rental, utilities, and deposit payment to product suppliers.
  (3) Prepayments mainly consists of prepayment for insurance and IT related fees.
  (4) Common stock not paid consists of the shares issued to CICO as disclosed in Note 1: Organization And Business.

 

 F-16

 

 

5. Goodwill

 

The table below set forth the carrying amount of goodwill for the year ended December 31, 2023 and 2022:

 

   As of 
December 31,
2023		   As of 
December 31,
2022		 
         
Gross carrying amount  $—   $— 
Acquired in business combination (1)   55,794,524    55,794,524 
Total   55,794,524    55,794,524 
Accumulated impairment  $—   $— 
Impairment (2)   (39,136,871)   — 
    —    — 
           
Goodwill, net  $16,657,653   $55,794,524 

 

  (1) Goodwill acquired during the year ended December 31, 2022 resulted from the acquisition of Fintech as disclosed in Note 1: Organization and business.

 

Goodwill is calculated based on the excess in purchase consideration as compared to the fair value of the Company. The acquisition date fair value is $58,245,587 (97,075,997 x $0.60). In order to arrive at the fair value of the Company, fair value adjustments have been made on inventories and related party balances. The estimated fair value of the Company identifiable net assets after fair value adjustments is as follows

 

 

   As of 
December 31,
2022		 
     
Property, plant and equipment, net.  $21,807 
Intangible asset   59,803 
Current assets  $7,239,547 
Current liabilities   (4,870,094)
Net assets acquired  $2,451,063 

 

(2) The Company performs our annual test of goodwill impairment in the fourth quarter of every year. In connection with the annual goodwill impairment test in the fourth quarter of 2023, the Company estimated the fair value of our FintechAsia reporting unit using the income and market approaches. In the annual 2023 test, the FintechAsia reporting unit exceeded the carrying values by more than 50 percent. The Company performed a qualitative test on our FintechAsia reporting unit and concluded it was more likely than not the fair value of this reporting unit exceeded its carrying value.

 

During the year ended December 31, 2023, the Company recorded a goodwill impairment charge of $39,136,871 in our FintechAsia reporting unit, primarily due to the surrendering of our credit token license and significant impacts on money broking transactional volume following the cryptocurrency market crash in 2022. Both significantly impacted forecasted cash flows used in our analysis. Moreover, operating expenses did not decline proportionally to revenue. In addition, inflationary pressures also caused our forecasted expenses to increase. Furthermore, our discounted cash flows utilized a higher risk-adjusted discount rate for the 2023 impairment test, primarily due to central banks raising interest rates in 2023 and increased country-specific risk due to macroeconomic factors.

 

The Company estimated the fair value of the FintechAsia reporting unit based on income and market approaches. Fair value under the income approach was determined by discounting to present value the estimated future cash flows of the reporting unit. Fair value under the market approach utilized the guideline public company methodology, which uses valuation indicators from publicly-traded companies that are similar to our FintechAsia reporting unit and considers differences between our reporting unit and the comparable companies.

 

In estimating the future cash flows of the FintechAsia reporting unit, the Company utilized a combination of market and company-specific inputs that a market participant would use in assessing the fair value of the reporting units. The primary market input was revenue growth rates. These rates were based upon historical trends and estimated future growth drivers such as the money brokering, payment solutions, and white labelling growth rate. Significant company-specific inputs included assumptions regarding how the reporting unit could leverage operating expenses as revenue grows.

 

Under the guideline public company methodology, the Company took into consideration specific risk differences between our reporting unit and the comparable companies, such as recent financial performance, size risks and product portfolios, among other considerations.

 

The Company used significant unobservable inputs within the income approach valuation method. These include the discount rate of 25.05% and the long-term growth rate of 1.50%. Significant increases (decreases) in growth rates, control premiums and multiples, assuming no change in discount rates, would result in a significantly higher (lower) fair value measurement. Significant decreases (increases) in discount rates, assuming no changes in growth rates, control premiums and multiples, would result in a significantly higher (lower) fair value measurement.

 

The Company will continue to monitor the fair value of our reporting units in our interim and annual reporting periods. If our estimated cash flows decrease, the Company may have to record further impairment charges in the future. Factors that could result in our cash flows being lower than our current estimates include: 1) decreased revenues caused by unforeseen changes the market, 2) our inability to achieve the estimated operating margins in our forecasts from our restructuring programs, cost saving initiatives, and other unforeseen factors, and 3) the weakening of foreign currencies against the U.S. Dollar. Additionally, changes in the broader economic environment could cause changes to our estimated discount rates and comparable company valuation indicators, which may impact our estimated fair values. Due to the significant carrying amount of goodwill recognized, any further impairment may cause a significant adverse financial impact on the Company that could raise doubt about the Company’s ability to continue as a going concern.

 

 F-17

 

 

6. PROPERTY AND EQUIPMENT

 

Property and equipment, net consist of the following:

 

   As of 
December 31,
2023		   As of 
December 31,
2022		 
         
Office equipment  $8,628   $7,067 
Computer equipment   49,600    31,959 
Furniture and fittings   4,824    4,501 
Software and website   10,173    17,202 
    73,225    60,729 
Less: Accumulated depreciation   (34,625)   (21,867)
 Balance at end of year  $38,600   $38,862 

 

Depreciation expenses charged to the statements of loss and comprehensive loss for the years ended December 31, 2023 and 2022 were $12,758 and $7,569 respectively. 

 

 

7. ACCRUALS AND OTHER PAYABLES

 

Accruals and other payables consist of the following:

 

   As of 
December 31,
2023		   As of 
December 31,
2022		 
         
Provisions and accruals (1)  $319,939   $163,217 
Others (2)   1,633,221    1,698,762 
Balance at end of year  $1,953,160   $1,861,979 

 

  (1) Provisions and accruals consists mainly of audit and accountancy fees and includes $52,000 of share options issued to directors during the year.
  (2) Other payables mainly consists of client funds.

 

 

 F-18

 

  

 

 8. INCOME TAX

 

Income taxes consisted of U.S. income tax and foreign income tax, where foreign income tax consist of United Kingdom income tax and Malaysia income tax.

 

U.S. income tax rate is 21% (2022: 21%). Foreign income tax consist of United Kingdom income tax and Malaysia Income Tax. United Kingdom income tax rate is 25% (2022: 19%). Malaysia income tax rate is 24% (2022: 24%), however, due to FintechAsia enjoy preferential tax rate of 3% (2022: 3%) due to within the territory of Labuan, Malaysia.

 

Income taxes includes the following components:  

         
   For the year ended 
   December 31,
2023		   December 31,
2022		 
United States  $55,692   $— 
Foreign   109,793    5,057 
Income tax recovery  $165,485   $5,057 

 

The foreign income taxes derived from Malaysia income tax within territory of Labuan. No United Kingdom income taxes are provided due to sufficient tax credits in the UK subsidiaries for offsetting against its income taxes for the year ended December 31, 2023.

 

Under IRC Section 382, a corporation that undergoes an “ownership change” in subject to limitations on its use of pre-change NOL carryforwards to offset future taxable income. As of each reporting date, the management assessed the realizability of deferred tax assets. Deferred tax assets had not been recognized in respect of any potential tax benefit that may be derived from non-capital loss carry forward and property and equipment due to past negative evidence of previous cumulative net losses and uncertainty upon restructuring. The management will continue to assess at each reporting period to determine the realizability of deferred tax assets.

 

 

9. Revenue

 

The Company derives its revenue mainly from transaction fees earned through financial payment and settlement services. For these transaction fee revenues, the Company view itself as the agent in these transactions and as a result, records revenue on a net basis. The Company considers its performance obligation satisfied and recognizes revenue at the point in time the transaction is processed.

 

The disaggregation of revenue of the Company by geographical region is as follows:

 

    United Kingdom     Malaysia     Total  
    2023     2022     2023     2022     2023     2022  
Transaction fees     1,983,139       2,476,385       287,734       547,600       2,270,873       3,023,985  
Other     —       —       149,311       60,294       149,311       60,294  
Total revenue     1,983,139       2,476,385       437,045       607,894       2,420,184       3,084,279  

 

 

 F-19

 

 

10. RELATED PARTY TRANSACTIONS

 

   As of 
December 31,
2023		   As of 
December 31,
2022		 
Amount due from related parties          
Ho Wah Genting Group Sdn Bhd (2)  $—   $799,094 
HWG Fintech International Ltd (2)   —    497,841 
Total Amount due from related parties  $—   $1,296,935 
           
Amount due to related parties          
Grande Legacy Inc. (1)  $—   $266,610 
HWG Capital Inc. (3)   —    329,565 
HWG Digital Investment Bank (Malaysia) P.L.C. (2)   —    1,596,825 
Aelora Sdn Bhd (1)   —    23,933 
Ho Wah Genting Group Sdn Bhd (2)   25,748    — 
Shalom Dodoun (4)   727,624    246,900 
Natalie Kastberg (5)   1,668    — 
Total Amount due to related parties  $755,040   $2,463,833 

 

The related party balances are unsecured, interest-free and repayable on demand.

 

  (1) During the year ended December 31, 2022, Aelora Sdn Bhd (“ASB” and previously known as “Vitaxel Sdn Bhd”) and Vitaxel Online Mall Sdn Bhd (“VOM”), which are dormant, have been disposed as part of the restructuring transactions as disclosed in Note 1: Organization and Business.

Both ASB and VOM are disposed to Mr Leong Yee Ming, a previous director and CEO of the Company, which also includes certain intercompany debt assignment. Upon completion of the disposal, related party balances that are outstanding relating to advances made by Grande Legacy Inc. (“GL”) and ASB are $nil and $nil respectively for the year ended December 31, 2023.

 

  (2) Dato’ Lim Hui Boon, the previous president of the Company, is the director of Ho Wah Genting Group Sdn Bhd (“HWGGSB”). Dato’ Lim Hui Boon, is directly related to Mr Lim Chun Hoo, the previous CFO and the current CEO and director of the Company.

Mr Lim Chun Hoo, the previous CFO and the current CEO and director of the Company, is a director in HWG Fintech International Ltd (“HWGFI”) and a previous director of HWGGSB and HWG Digital Investment Bank (Malaysia) P.L.C. (“HDIB”). HDIB is previously known as Ho Wah Genting Investment Bank (Labuan) P.L.C.

 

The amount due from HWGGSB and HWGFI as at December 31, 2023 and December 31, 2022, were advances made by the Company to HWGGSB and HWGFI. Whilst amount due to HDIB were advances made by HDIB to the Company.

 

  (3) Mr Leong Yee Ming, a previous director and CEO of the Company, is a director of HWG Capital Inc. (previously known as “GrandeLife Inc.”).
     
  (4)

Mr Shalom Dodoun (“Mr Shalom”) was the previous director and CEO of the Company. The amount due to Mr Shalom as at December 31, 2023, were advances made by Mr Shalom to the Company. Mr Shalom agreed to grant the Company an unsecured Sterling term loan facility and the Company shall pay interest on the Loan at the rate of 6% per annum above Barclays Bank Rate.

 

  (5) Ms Natalie Kastberg (“Ms Kastberg”), is a current director of Fintech. The amount due to Ms Kastberg as at December 31, 2023, were advances made by Ms Kastberg to the Company.

 

  (6) Total payment made in the form of compensation, which includes salary, bonus, stock awards and all other compensation have been made to the following officer of the Company that are individually in excess of $100,000 annually:

 

   December 31,
2023		   December 31,
2022		 
Directors & Officers          
Shalom Dodoun – Previous Director, Chief Executive Officer of the Company  $287,138   $142,005 
Richard Berman – Non-executive Director of the Company (7)  $100,000   $— 

 

  (7) Mr. Richard Berman (“Mr. Berman”), is a current non-executive director of the Company.

 

 

 F-20

 

 

11. COMMITMENTS AND CONTINGENCIES

 

Capital Commitments

 

Upon the successful uplisting of the Company to Nasdaq, Mr. Richard Berman, the non-executive director of the Company, shall be rewarded with Company’s shares, up to a maximum of 1% of the Company’s market capitalization. The number of shares to be issued shall be calculated based on the market share price (as stated on Nasdaq) on the first closing date of the Company listed on Nasdaq.

 

 F-21

 

 

12. STOCKHOLDERS’ EQUITY

 

Common stocks

 

The Company’s authorized common stock is $0.001: 400,000,000 shares, with 298,742,643 shares issued and outstanding during the year ended December 31, 2023.

 

The Company’s authorized common stock is $0.001: 400,000,000 shares, with 198,742,643 shares issued and outstanding during the year ended December 31, 2022.

 

The Company’s authorized common stock is $0.0001: 70,000,000 shares, with 54,087,903 shares issued and outstanding during the year ended December 31, 2021.

 

On April 8, 2022, Financial Industry Regulatory Authority, Inc. (“FINRA”) notified the Company that the Reverse Stock Split will take effect on the over-the-counter market at the start of business on April 11, 2022. The reverse stock split reduces the 54,087,903 shares issued and outstanding by 48,678,593 shares to 5,409,310. Effectively on April 11, 2022, the Company’s authorized common stock is $0.001: 400,000,000 shares, with 5,409,310 shares issued and outstanding.

 

On November 15, 2022 and November 30, 2022, the Company issued 91,666,667 and 101,666,666 shares respectively for the acquisition of FintechAsia and acquisition of Fintech as disclosed in Note 1: Organization And Business. The total shares issued for the acquisitions totalled to 193,333,333.

 

On November 15, 2023, the Company issued 100,000,000 shares (the “Shares”) to CICO for the acquisition of assets as disclosed in Note 1: Organization And Business. The total issued and outstanding shares of the Company had increased to 298,742,643 shares.

 

On December 27, 2023, the Company and CICO mutually and voluntarily agreed to unwind the transaction. The Shares were cancelled and removed from the Company’s issued and outstanding shares of common stock on January 30, 2024, decreasing the total issued and outstanding shares of the Company to 198,742,643 shares.

 

Preferred stocks

 

On March 10, 2022, the Company filed with the Secretary of State of the State of Nevada a Certificate of Designation of the Relative Rights and Preferences of The Redeemable Convertible Preferred Stock (the “Certificate of Designation”). Pursuant to the Certificate of Designation, the board of directors of the Company authorized the creation 25,000,000 shares of Redeemable Convertible Preferred Stock, par value $0.001 per share (the “RCPS”). The RCPS is ranked senior to all classes or series of the Company’s common stock and does not have any voting rights. However, the holders of the RCPS are entitled to receive, when declared by the board of directors, cumulative cash dividends at the rate of 6% per annum on each $1.00 per RCPS. Commencing on the date of issuance, the dividends on the RCPS shall accrue and be cumulative, payable annually in arrears on the 30th business day on each anniversary of the issue date. Dividends will accumulate whether or not the Company has earnings or whether funds are legally available or declared by the Board, and no interest will be payable on any dividends which may be in arrears. Each share of RCPS shall be convertible into one share of common stock of the Company, upon the Board approving the initiation of the listing process to list the shares of the Company on any stock exchange, or upon the written approval of the Company. The Company may also, at its option, redeem the RCPS for cash at a redemption price of $1.00 per share plus any accumulated and unpaid dividends thereon. Notwithstanding, all outstanding RCPS shall be redeemable by the Company on the second anniversary of the issuance date thereof.

 

No issuance of RCPS has occurred as of December 31, 2023. In the scenario of issuance of RCPS, the changes will be as follows:

 

    December 31, 2023   December 31, 2022  
RCPS issuance scenario   30%   50%     100%   30%   50%   100%  
                                         
SELECTED CONDENSED COMBINED BALANCE SHEET DATA:                                        
Cash and cash equivalents   $ 11,265,959     16,265,959       28,765,959     11,291,378     16,291,378     28,791,378  
Total assets   $ 28,578,344     33,578,344       46,078,344     71,325,261     76,325,261     88,825,261  
Total liabilities   $ 2,755,862     2,755,862       2,755,862     4,943,467     4,943,467     4,943,467  
Total stockholders’ equity   $ 25,822,482     30,822,482       43,322,482     66,381,794     71,381,794     83,881,794  

 

 

 

13. SUBSEQUENT EVENTS

 

Following the financial year end, the 100,000,000 shares (10,000,000 shares, as adjusted for the 1-for-10 reverse split) that were issued to CICO for the acquisition of assets as disclosed in Note 1: Organization And Business, were cancelled and removed from the Company’s issued and outstanding shares of common stock on January 30, 2024. The total issued and outstanding shares of the Company will be reduced to 198,742,643 (19,874,265 shares, as adjusted for the 1-for-10 reverse split) shares on January 30, 2024.

 

 F-22

 

 

ITEM 15. Exhibits, Financial Statement Schedules.

 

(b) Exhibits

 

The exhibits listed in the Original Filing and the exhibits listed below in this Amendment are filed with, or incorporated by reference in, this report.

 

Exhibit
No.		   Exhibit Description
31.1   Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
     
31.2   Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
     
32.1   Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Annual Report on Form 10-K/A to be signed on its behalf by the undersigned thereunto duly authorized on this 16th day of May, 2024. 

 

  FINTECH SCION LIMITED
   
  By: /s/ Lim Chun Hoo
    Lim Chun Hoo
   

Chief Executive Officer   

(Principal Executive Officer) 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this Annual Report on Form 10-K/A has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

Signature   Title   Date
         
/s/ Lim Chun Hoo   Chief Executive Officer & Director   May 16, 2024 
Lim Chun Hoo   (Principal Executive Officer)     
         
/s/ Colin Ellis   Chief Financial Officer & Director   May 16, 2024
Colin Ellis   (Principal Financial and Accounting Officer)    
         
/s/ Richard Berman   Director   May 16, 2024
Richard Berman        

 

 

 

Exhibit 31.1

 

Certification of Chief Executive Officer of Fintech Scion Limited

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 

I, Lim Chun Hoo, certify that:

 

1. I have reviewed this Annual Report on Form 10-K/A of Fintech Scion Limited;
   
2. Based on my knowledge, this 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 consolidated 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 15(d)-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 over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated 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; and
     
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: May 16, 2024 /s/ Lim Chun Hoo
  Lim Chun Hoo
  Chief Executive Officer
  (Principal Executive Officer)

 

 

Exhibit 31.2

 

Certification of Chief Financial Officer of Fintech Scion Limited

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 

I, Colin Ellis, certify that:

 

1. I have reviewed this Annual Report on Form 10-K/A of Fintech Scion Limited;
   
2. Based on my knowledge, this 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 consolidated 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 15(d)-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 over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated 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; and
     
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: May 16, 2024 /s/ Colin Ellis
  Colin Ellis
  Chief Financial Officer
  (Principal Financial and Accounting Officer)

 

 

 

Exhibit 32.1

 

Statement of Chief Executive Officer and Chief Financial Officer

Pursuant to Section 1350 of Title 18 of the United States Code

 

Pursuant to Section 1350 of Title 18 of the United States Code as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned, Lim Chun Hoo and Colin Ellis, the Chief Executive Officer and Chief Financial Officer, respectively, of Fintech Scion Limited (the “Company”), hereby certify that based on the undersigned’s knowledge:

 

1. The Company’s Annual Report on Form 10-K for the period ended December 31, 2023 (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 results of operations of the Company.

 

Date: May 16, 2024 /s/ Lim Chun Hoo
  Lim Chun Hoo
  Chief Executive Officer
  (Principal Executive Officer)
   
Date: May 16, 2024 /s/ Colin Ellis
  Colin Ellis
  Chief Financial Officer
  (Principal Financial and Accounting Officer)

 

 

v3.24.1.1.u2
Cover - USD ($)
 12 Months Ended
Dec. 31, 2023
Mar. 15, 2024
Dec. 31, 2022
Cover [Abstract]      
Document Type 10-K/A    
Amendment Flag true    
Amendment Description This Amendment No. 3 to Form 10-K (this "Amendment No. 3") amends the Annual Report to Form 10-K for the fiscal year ended December 31, 2023 originally filed on April 5, 2024 (the "Original Filing") by Fintech Scion Limited, a Nevada corporation ("Fintech," the "Company," "we," or "us"), which inadvertently included the wrong audit report from Pan-China Singapore PAC.    
Document Annual Report true    
Document Transition Report false    
Document Period End Date Dec. 31, 2023    
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2023    
Current Fiscal Year End Date --12-31    
Entity File Number 000-55685    
Entity Registrant Name FINTECH SCION LIMITED    
Entity Central Index Key 0001623590    
Entity Tax Identification Number 30-0803939    
Entity Incorporation, State or Country Code NV    
Entity Address, Address Line One Portman House    
Entity Address, Address Line Two 2 Portman Street    
Entity Address, City or Town London, W1H 6DU    
Entity Address, Country GB    
Entity Address, Postal Zip Code N/A    
City Area Code +44    
Local Phone Number 203 982 5041    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
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 Public Float     $ 2,628,493
Entity Common Stock, Shares Outstanding   198,742,643  
Document Financial Statement Error Correction [Flag] false    
Auditor Name Pan-China Singapore PAC    
Auditor Firm ID 6255    
Auditor Location Singapore    
v3.24.1.1.u2
CONSOLIDATED BALANCE SHEET - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Current assets    
Cash and cash equivalents $ 3,765,959 $ 3,791,378
Accounts receivable 59,974 1,792,195
Amount due from related parties 1,296,935
Other receivables, prepayments and other current assets 509,451 1,049,292
Inventories 12,000 2,272
Total Current Assets 4,347,384 7,932,072
Non-current assets    
Intangible asset 34,707 59,803
Goodwill 16,657,653 55,794,524
Property and equipment, net 38,600 38,862
Total Non-Current Assets 16,730,960 55,893,189
TOTAL ASSETS 21,078,344 63,825,261
Current liabilities    
Amounts due to related parties 755,040 2,463,833
Accounts payable 47,662 617,655
Accruals and other payables 1,953,160 1,861,979
Total Current Liabilities 2,755,862 4,943,467
Non-current liabilities    
TOTAL LIABILITIES 2,755,862 4,943,467
STOCKHOLDERS’ EQUITY    
Preferred stock par value $0.001: 25,000,000 shares authorized; and 0 outstanding
Common stock par value $0.001: 400,000,000 and $0.001: 400,000,000 shares authorized, respectively; 298,742,643 and 198,742,643 shares issued and outstanding, respectively 298,743 198,743
Additional paid-in capital 111,770,998 111,770,998
Merger reserves (55,000,000) (55,000,000)
Accumulated surplus/(deficit) (39,319,015) 1,342,788
Accumulated other comprehensive income 569,339 565,935
Equity attributable to equity holders of the parent 18,320,065 58,878,464
Non-controlling interests 2,417 3,330
Total Stockholders’ Equity 18,322,482 58,881,794
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 21,078,344 $ 63,825,261
v3.24.1.1.u2
CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares
Dec. 31, 2023
Dec. 31, 2022
Statement of Financial Position [Abstract]    
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Preferred stock, authorized 25,000,000 25,000,000
Preferred stock, outstanding 0 0
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, authorized 400,000,000 400,000,000
Common stock, issued 298,742,643 198,742,643
Common stock, outstanding 298,742,643 198,742,643
v3.24.1.1.u2
CONSOLIDATED STATEMENTS OF INCOME OR LOSS AND COMPREHENSIVE INCOME OR LOSS - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Income Statement [Abstract]    
REVENUE $ 2,420,184 $ 3,084,279
COST OF REVENUE (688,630) (430,281)
GROSS PROFIT 1,731,554 2,653,998
OPERATING EXPENSES    
Selling expense (9,790)
General and administrative expenses (3,415,786) (1,863,982)
Impairment of goodwill (39,136,871)
Total Operating Expenses (42,552,657) (1,873,772)
PROFIT/(LOSS) FROM OPERATIONS (40,821,103) 780,226
OTHER INCOME / (EXPENSE), NET    
Other income 397,532 5,531,606
Other expense (73,660) (387,805)
Total other income / (expense), net 323,872 5,143,801
NET INCOME / (LOSS) BEFORE TAX (40,497,231) 5,924,027
Income tax (165,485) (5,057)
NET INCOME / (LOSS) (40,662,716) 5,918,970
Loss attributable to non-controlling interest 913
NET INCOME / (LOSS) FOR THE PERIOD (40,661,803) 5,918,970
OTHER COMPREHENSIVE INCOME / (LOSS)    
Foreign currency translation adjustment 3,404 308,288
TOTAL COMPREHENSIVE INCOME / (LOSS) $ (40,658,399) $ 6,227,258
Weighted average number of common shares outstanding - basic and diluted 298,742,643 198,742,643
Net income / (loss) per share - basic and diluted $ (0.14) $ 0.03
v3.24.1.1.u2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
Common Stock [Member]
Additional Paid-in Capital [Member]
Merger Reserves [Member]
Retained Earnings [Member]
AOCI Attributable to Parent [Member]
Noncontrolling Interest [Member]
Total
Beginning balance, value at Dec. 31, 2020 $ 5,409 $ 4,749,798 $ (9,576,061) $ 87,592 $ (4,733,262)
Balance, at beginning (in shares) at Dec. 31, 2020 54,087,903            
Net income (22,758) (22,758)
Foreign currency translation adjustment 170,055 170,055
Ending balance, value at Dec. 31, 2021 $ 5,409 4,749,798 (9,598,819) 257,647 (4,585,965)
Balance, at ending (in shares) at Dec. 31, 2021 54,087,903            
Net income 5,918,970 5,918,970
Foreign currency translation adjustment 308,288 308,288
Reverse stock split
Reverse stock split (in shares) (48,678,593)            
Issuance of stock $ 193,334 193,334
Issuance of stock (in shares) 193,333,333            
Acquisition of subsidiaries 113,389,440 (55,000,000) 3,330 58,392,770
Reserve release upon disposal of subsidiaries (1,345,603) (1,345,603)
Reverse merger recapitalization (5,022,637) 5,022,637
Ending balance, value at Dec. 31, 2022 $ 198,743 111,770,998 (55,000,000) 1,342,788 565,935 3,330 58,881,794
Balance, at ending (in shares) at Dec. 31, 2022 198,742,643            
Net income (40,661,803) (913) (40,662,716)
Foreign currency translation adjustment         3,404   3,404
Issuance of stock $ 100,000           100,000
Issuance of stock (in shares) 100,000,000            
Acquisition of subsidiaries             58,245,587
Ending balance, value at Dec. 31, 2023 $ 298,743 $ 111,770,998 $ (55,000,000) $ (39,319,015) $ 569,339 $ 2,417 $ 18,322,482
Balance, at ending (in shares) at Dec. 31, 2023 298,742,643            
v3.24.1.1.u2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income / (loss) $ (40,662,716) $ 5,918,970
Items not involving cash:    
Depreciation and amortization of– property, plant and equipment and right-of-use assets 37,853 37,471
Gain on disposal of subsidiaries (5,481,178)
Impairment on goodwill 39,136,871
Changes in operating assets and liabilities:    
Accounts receivables 1,732,221 (1,792,195)
Other receivables, prepayments and other current assets 539,842 (1,011,960)
Inventories (9,728) (2,272)
Accounts payable (569,993) 617,577
Commission payables (126,315)
Accrued expense and other payables 91,181 1,519,318
Net (used in) / cash generated by operating activities 295,531 (320,584)
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchase of property and equipment (12,496)
Disposal of subsidiaries, net of cash disposed (75,389)
Acquisition of subsidiaries, net cash acquired 3,791,378
Net (used in) / cash generated by investing activities (12,496) 3,715,989
CASH FLOWS FROM FINANCING ACTIVITIES    
(Repayment to) / proceed from related parties (411,858) 391,805
Proceeds from issuance of shares 100,000
Net cash generated by / (used in) financing activities (311,858) 391,805
EFFECT OF EXCHANGE RATES ON CASH 3,404 (32,865)
NET CHANGE IN CASH AND CASH EQUIVALENTS (25,419) 3,754,345
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 3,791,378 37,033
CASH AND CASH EQUIVALENTS, END OF YEAR 3,765,959 3,791,378
SUPPLEMENTAL OF CASH FLOW INFORMATION    
Cash paid for interest expenses
Cash paid for income tax
v3.24.1.1.u2
ORGANIZATION AND BUSINESS
 12 Months Ended
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
ORGANIZATION AND BUSINESS

 

1. ORGANIZATION AND BUSINESS

 

Fintech Scion Limited (“the Company”) previously known as HWGC Holdings Limited, incorporated in Nevada.

 

The Company holds the following equity interests in its subsidiaries:

 

                          Interest  
No.   Name of subsidiary  

Country of 

incorporation 

  

2023 

% 

    

2022 

% 

     Principal activities
1   FintechCashier Asia P.L.C., previously known as HWGG Capital P.L.C. (“FintechAsia”)      Malaysia   100     100     Money broking
2   HWG Cash Singapore Pte Ltd (“HCS”)   Singapore   55     55     Trading of digital assets
3   HWGC KZ Limited (“HKZ”)   Kazakhstan   100     100     Software development
4   Fintech Scion Limited (“Fintech”)   United Kingdom   100     100     Holding company and protection of Intellectual Property
5   Fintech Digital Solutions Limited (“FDS”)   United Kingdom   100     100     Digital payment services
6   Fintech Digital Consulting Limited (“FDC”)   United Kingdom   100     100     Technology provider and payment consulting
7   Aelora Sdn Bhd, previously known as Vitaxel Sdn Bhd (“ASB”)   Malaysia   —     100(1)     Direct selling industry
8   Vitaxel Online Mall Sdn Bhd (“VOM”)   Malaysia   —     100(1)     Online shopping platforms

 

(1)ASB and VOM were disposed by the Company on December 30, 2022.

 

The Company is previously engaged in direct selling industry and online shopping platform primarily through its operating entities in Malaysia. On December 30, 2022, the Company restructured after the consummation of two share exchange agreements and the disposal of ASB and VOM. The Company upon the restructuring, offers digital banking services by providing the tools, skills, and solutions to facilitate payment services to merchants, offering a variety of secured, online and fully managed transactions and settlements.

 

Restructuring Transactions

 

The following restructuring transactions has occurred during the year ended December 31, 2023 and 2022:

 

  i. Acquisition of FintechAsia
  ii. Acquisition of Fintech
  iii. Disposal of ASB and VOM
  iv. Acquisition of Assets and Termination

 

 

Acquisition of FintechAsia

 

On July 21, 2022, the Company entered into a share exchange agreement with FintechAsia. Prior to the consummation of the share exchange agreement, FintechAsia is also under the control of the Company’s management. Under this share exchange agreement, the Company is to acquire all issued and outstanding ordinary shares of FintechAsia in exchange for an aggregate of $55,000,000. The number of exchange shares were calculated based on $0.60 share price. The number of shares of common stock of the Company issued upon consummation of the share exchange agreement was 91,666,667 shares.

 

On November 15, 2022, the Company completed the acquisition of FintechAsia upon the consummation of the share exchange agreement with the shareholders of FintechAsia.

 

HCS and HKZ become the subsidiaries of the Company upon the completion of the acquisition of FintechAsia.

 

The acquisition of FintechAsia is accounted for as a reorganization of entities under common control. As a result, the Company measured the recognized assets and liabilities combined at their historical cost at the acquisition date. The difference between consideration paid and assets and liabilities received are presented as a component of equity; merger reserves and additional paid-in-capital.

 

The number of common stock outstanding upon the consummation of the share exchange agreement was 97,075,977.

 

Acquisition of Fintech

 

On August 9, 2022, the Company entered into a share exchange agreement with Fintech. Under this share exchange agreement with Fintech, the Company acquired all issued and outstanding ordinary shares of Fintech from the Fintech’s shareholders in exchange for an aggregate of $61,000,000. The number of exchange shares were calculated based on $0.60 share price. The number of shares of common stock of the Company issued upon consummation of this share exchange agreement was 101,666,666 shares.

 

On November 30, 2022, the Company completed the acquisition of Fintech upon the consummation of the share exchange agreement with the shareholders of Fintech.

 

FDS and FDC become the subsidiaries of the Company upon the completion of the acquisition of Fintech.

 

Upon consummation of the share exchange with Fintech, the owners and management of Fintech have voting and operation control of the Company. This gives effect to the reverse acquisition transaction (“reverse acquisition”). The Company recognized goodwill arising from the excess in purchase consideration as compared to the estimated fair value of the Company.

 

In determining the purchase consideration for both the HWGG and Fintech acquisition, the Company adopted the acquisition date fair value at $0.60, which is also the most reliable reference estimate which approximate the quoted price of the Company at acquisition date.

 

The number of common stock outstanding upon the consummation of the share exchange agreement was 198,742,643.

 

Goodwill recognized is further disclosed in Note 5: Goodwill.

 

 

Disposal of ASB & VOM

 

On December 30, 2022, the Company entered into a stock purchase agreement with Mr Leong Yee Ming, the previous director and CEO of the Company, and for the purposes of the assignment of certain intercompany debt.

 

Pursuant to the terms of the agreement, the Company sold to Mr Leong, all issued and outstanding shares of ASB and VOM, for an aggregate purchase price of RM4,500,002 (approximately $1,124,998). The purchase price was paid by Mr Leong’s assumption of a certain amount of intercompany debt owed by the Company to ASB.

 

Upon completion of the disposal, ASB and VOM ceased to be the subsidiary of the Company as at December 31, 2022. The disposal had the following financial effects on the Company for the year ended December 31, 2022:  

             
   For the year ended December 31, 2022 
   ASB   VOM   Total 
Property, plant and equipment, net.  $11,824   $229   $12,053 
Rights-of-use assets   13,854    —    13,854 
Cash and cash equivalents   75,389    —    75,389 
Other receivables, prepayments and other current assets   10,793    2,156    12,949 
Other payables   (4,365,372)   (25,528)   (4,390,900)
Lease liabilities   (79,525)   —    (79,525)
Net liabilities disposed  $(4,333,037)  $(23,143)   (4,356,180)
Consideration received, satisfied in assignment of intercompany debt   (1,124,997)   (1)   (1,124,998)
Net gain on disposal of subsidiaries  $(5,458,034)  $(23,144)  $(5,481,178)

 

Acquisitions of Assets & Termination

 

On October 11, 2023, the Company entered into an Asset Conveyance Agreement (the “Purchase Agreement”) with CICO Digital Solutions Limited, a British Columbia company (“CICO” and a related party company that has a common control by a major shareholder of the Company). The Purchase Agreement provided for the acquisition by the Company of substantially all of the assets of CICO (the “Assets”) related to CICO’s business of providing a service platform and software application for payment services from CICO. As consideration for the transfer and sale of the Assets, the Company issued CICO 100,000,000 restricted shares of common stock of the Company, par value $0.001 per share (the “Shares”).

 

On December 27, 2023, the Company and CICO mutually and voluntarily agreed to unwind the transaction contemplated by the Purchase Agreement. Upon termination, each of the parties to the Purchase Agreement were relieved of their respective rights, liabilities, expenses and other obligations under the Purchase Agreement. In connection therewith, CICO transferred the Shares back to the Company for cancellation upon receipt. The Shares were cancelled and removed from the Company’s issued and outstanding shares of common stock on January 30, 2024.
v3.24.1.1.u2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  

 

Basis of presentation

 

The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

 

This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred. The Company’s financial statements are expressed in U.S. dollars.

 

Principles of Consolidation

 

The consolidated financial statements include the accounts of the Company and its subsidiaries. On consolidation, all intercompany balances and transactions are eliminated.

 

Use of estimates

 

The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. The Company regularly evaluates estimates and assumptions. The Company bases its estimates and assumptions on current facts, historical experience and various other factors it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. Significant areas of estimate include useful lives of property and equipment, impairment of long-term assets and deferred income tax obligations. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. 

 

 

Foreign currency translation and transactions

 

The functional currency of the Company is United States Dollar (US Dollars). The  Company translates the financial statements of its foreign subsidiary from the local (functional) currency into US Dollars using the year or reporting period end or average exchange rates in accordance with the requirements of Accounting Standards Codification subtopic 830-10, Foreign Currency Matters (“ASC 830-10”). Assets and liabilities of these subsidiaries were translated at exchange rates as of the balance sheet date. Revenues and expenses are translated at average rates in effect for the periods presented. Translation gains and losses are recorded in accumulated other comprehensive income or loss as a component of shareholders’ equity.

 

Cash and cash equivalents

 

Cash and cash equivalents consist of cash on hand and highly liquid investments, which are unrestricted from withdrawal or use, and which have original maturities of three months or less when purchased.

 

Accounts receivable

 

Accounts receivable are recognized and carried at original invoiced amount less an allowance for any potential uncollectible amounts. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. The Company generally does not require collateral from its customers. For the year ended December 31, 2023 and 2022, the Company wrote down $39,310 and $nil respectively, of its accounts receivable were written off as bad debts.  

 

Fair value of financial instruments

 

FASB ASC 820, “Fair Value Measurement,” specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources (observable inputs). In accordance with ASC 820, the following summarizes the fair value hierarchy:

 

Level 1 Inputs – Unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access.

 

Level 2 Inputs – Inputs other than the quoted prices in active markets that are observable either directly or indirectly.

 

Level 3 Inputs – Inputs based on prices or valuation techniques that are both unobservable and significant to the overall fair value measurements.

 

ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurements. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. As of December 31, 2023 and 2022, none of the Company’s assets and liabilities was required to be reported at fair value on a recurring basis. Carrying values of non-derivative financial instruments, including cash, accounts receivables, payables and accrued liabilities, approximate their fair values due to the short-term nature of these financial instruments. There were no changes in methods or assumptions during the periods presented.

 

Inventories

 

Inventories consist of finished goods and prepaid cards. Inventories are stated at lower of cost or net realizable value, with cost determined on a weighted-average method, and not to exceed net realizable value. The Company writes down its inventory balances for obsolete amounts estimated on an individual basis for the finished goods. For the year ended December 31, 2023 and 2022, the Company wrote down $nil and $nil respectively, of its inventories that have been obsolete.

 

 

Goodwill

 

Goodwill is not amortized but is subject to annual impairment tests. Goodwill has been assigned to reporting units. Potential impairment of a reporting unit is identified by either comparing a reporting unit’s estimated fair value to its carrying amount or doing a qualitative assessment of a reporting unit’s fair value from the last quantitative assessment to determine if there is potential impairment. We may do a qualitative assessment when the results of the previous quantitative test indicated the reporting unit’s estimated fair value was significantly in excess of the carrying value of its net assets and we do not believe there have been significant changes in the reporting unit’s operations that would significantly decrease its estimated fair value. If a quantitative assessment is performed, the fair value of the reporting unit and the fair value of goodwill are determined based upon a discounted cash flow analysis and/or use of a market approach by looking at market values of comparable companies. Significant assumptions are incorporated into our discounted cash flow analyses such as forecasted net sales, revenue growth rates, forecasted operating expenses and risk-adjusted discount rates. We perform this test in the fourth quarter of the year or whenever events or changes in circumstances indicate that the fair value of the reporting unit is more likely than not below its carrying amount. If the fair value of the reporting unit is less than its carrying value, an impairment loss is recorded in the amount that the carrying value of the reporting unit exceeds the fair value. See Note 5 for more information regarding goodwill.

 

Impairment of Long-Lived Assets

 

The Company periodically reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset.

 

Intangible assets

 

Intangible assets primarily include trademarks and trade secrets with indefinite lives and customer-relationships with finite lives. Intangible assets with indefinite lives are not amortized but are tested for impairment on an annual basis, or more frequently if indicators of impairment are present. Indefinite lived intangible assets are assessed using either a qualitative or a quantitative approach. The qualitative assessment evaluates factors including macro-economic conditions, industry and company-specific factors, legal and regulatory environments, and historical company performance in assessing fair value. If it is determined that it is more likely than not that the fair value of the intangible asset is less than its carrying value, a quantitative test is then performed. Otherwise, no further testing is required. When using a quantitative approach, the Company compares the fair value of the intangible asset to its carrying amount, including goodwill. If the estimated fair value of the intangible asset is less than the carrying amount of the intangible asset, impairment is indicated, requiring recognition of an impairment charge for the differential.

 

Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives. The Company reviews for impairment indicators of finite-lived intangibles and other long-lived assets as described in the “Impairment of Long-Lived Assets” significant accounting policy.

 

Property and equipment, net

 

Property and equipment are carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives: 

 

  Office equipment 5 years    
  Computer equipment 5 years    
  Furniture and fixtures 5 years    
  Electrical & fitting 5 years    
  Software and website 5 years    

 

The residual values, useful lives and methods of depreciation of property and equipment are reviewed and adjusted if appropriate, on an annual basis.

 

 

Leases

 

The Company assesses, at the inception of contract, whether it contains a lease. A contract is classified as a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

 

The Company recognizes a right-of-use asset and lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises of the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any indirect costs incurred.

 

The right-to-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-to-use asset or the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses and adjusted for certain remeasurements of the lease liability, if any.

 

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be determined, the Company’s incremental borrowing rate. The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made. It is remeasured when there is a change in future lease payment arising from a change in an index or rate, or changes in assessment of whether a purchase or extension option is reasonably certain to be exercised or a termination option is reasonably certain not to be exercised.

 

Revenue recognition

 

The primary source of our revenue is the transaction fees from financial payment and settlement services.

 

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

 

Revenue is generated through delivery services. Revenue is recognized when a customer receives services and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those services. The Company applies the following five-step model in order to determine this amount:

 

(i)     identification of the services in the contract;  

(ii)    determination of whether the services are performance obligations, including whether they are distinct in the context of the contract;  

(iii)   measurement of the transaction price, including the constraint on variable consideration;  

(iv)   allocation of the transaction price to the performance obligations; and  

(v)    recognition of revenue when (or as) the Company satisfies each performance obligation.

 

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 goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers as services are performed over the remaining contractual terms.

 

 

Research and Development Costs

 

Research and development (“R&D”) costs are charged to expense in the periods incurred. There were no expenditures incurred by the Company for research and development for the year ended December 31, 2023 and 2022.

 

Commission expense

 

Commission expense incurred by the Company is recognized as cost of revenue and as a liability (commission payable in the consolidated balance sheet. Commission expense is not recoverable once recognized and is expensed as incurred.

 

Income Taxes

 

Income taxes are determined using the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes that date of enactment. In addition, a valuation allowance is established to reduce any deferred tax asset for which it is determined that it is more likely than not that some portion of the deferred tax asset will not be realized. 

 

Uncertain Tax Positions

 

The impact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes are classified as a component of the provisions for income taxes. As of December 31, 2023 and 2022, the Company recognized income tax of expense of $165,485 and $5,057 respectively.

 

Comprehensive income / loss

 

Comprehensive income / loss includes net gain/loss and cumulative foreign currency translation adjustments and is reported in the Consolidated Statement of Comprehensive Income or Loss.

 

Income / Loss per share

 

The income / loss per share is computed using the weighted average number of shares outstanding during the fiscal years. For the years ended December 31, 2023 and 2022, there was no dilutive effect due to net gain / loss.

 

 

Related party transactions

 

The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.

 

Pursuant to Section 850-10-20 the related parties include (a) affiliates of the registrant; (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; (d) principal owners of the Company; (e) management of the Company; (f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The financial statements include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s) involved; (b) description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

 

Recently issued accounting pronouncements

 

Accounting standards promulgated by the FASB are subject to change. Changes in such standards may have an impact on the Company’s future financial statements. The following are a summary of recent accounting developments.

 

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) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective January 1, 2024 for the Company and should be applied on a full or modified retrospective basis, with early adoption permitted beginning January 1, 2021. The Company has determined not to early adopt ASU 2020-06. The implementation of this accounting treatment is not expected to have a material effect on the Company’s financial statements.

 

Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the Securities and Exchange Commission (“SEC”) did not, or are not believed by management, to have a material impact on the Company’s present and future consolidated financial statements.

 

Accounting Pronouncements Not Yet Adopted

 

In November 2023, the Financial Accounting Standards Board (FASB) issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07), which requires an enhanced disclosure of significant segment expenses on an annual and interim basis. This guidance will be effective for the annual periods beginning the year ended December 31, 2024, and for interim periods beginning January 1, 2025. Early adoption is permitted. Upon adoption, the guidance should be applied retrospectively to all prior periods presented in the financial statements. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

 

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which improves the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation and income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. This guidance will be effective for the annual periods beginning the year ended December 31, 2025. Early adoption is permitted. Upon adoption, the guidance can be applied prospectively or retrospectively. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.
v3.24.1.1.u2
ACCOUNTS RECEIVABLES
 12 Months Ended
Dec. 31, 2023
Credit Loss [Abstract]  
ACCOUNTS RECEIVABLES

  

3. ACCOUNTS RECEIVABLES

 

Accounts receivable represent balances from: 

 

  (i) transactions fees receivable generated from financial payment and settlement services;
  (ii) non-interest-bearing credit tokens issue to authorized agents.

 

Services billed are generally settled upon financial services has been rendered. Only limited clients are extended with credits.

 

As at December 31, 2023, we had accounts receivable of $59,974 solely derived from commissions receivables. During the year, the company recognized bad debts of $39,310. As of December 31, 2022, accounts receivable balances of $1,792,195 mainly derived from commission receivable of $597,986 and non-interest-bearing credit tokens issued to authorized agents of $1,194,208.   

 

The company has assessed the impairment and considers the remaining accounts receivable to be fully collectible, therefore no further impairment is necessary as at December 31, 2023.
v3.24.1.1.u2
OTHER RECEIVABLES, PREPAYMENTS AND OTHER CURRENT ASSETS
 12 Months Ended
Dec. 31, 2023
Other Receivables Prepayments And Other Current Assets  
OTHER RECEIVABLES, PREPAYMENTS AND OTHER CURRENT ASSETS

 

4. OTHER RECEIVABLES, PREPAYMENTS AND OTHER CURRENT ASSETS

 

Other receivables, prepayments and other current assets consist of the following:

 

   As of 
December 31,
2023		   As of 
December 31,
2022		 
         
Other receivables (1)  $294,780   $949,430 
Deposits (2)  $110,161   $87,805 
Prepayments (3)  $4,510   $12,057 
Common stock not paid (4)  $100,000   $— 
Total  $509,451   $1,049,292 

  

  (1) Other receivables primarily represent balances in liquidity solution providers.
  (2) Deposits represented payments for rental, utilities, and deposit payment to product suppliers.
  (3) Prepayments mainly consists of prepayment for insurance and IT related fees.
  (4) Common stock not paid consists of the shares issued to CICO as disclosed in Note 1: Organization And Business.
v3.24.1.1.u2
Goodwill
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill

 

5. Goodwill

 

The table below set forth the carrying amount of goodwill for the year ended December 31, 2023 and 2022:

 

   As of 
December 31,
2023		   As of 
December 31,
2022		 
         
Gross carrying amount  $—   $— 
Acquired in business combination (1)   55,794,524    55,794,524 
Total   55,794,524    55,794,524 
Accumulated impairment  $—   $— 
Impairment (2)   (39,136,871)   — 
    —    — 
           
Goodwill, net  $16,657,653   $55,794,524 

 

  (1) Goodwill acquired during the year ended December 31, 2022 resulted from the acquisition of Fintech as disclosed in Note 1: Organization and business.

 

Goodwill is calculated based on the excess in purchase consideration as compared to the fair value of the Company. The acquisition date fair value is $58,245,587 (97,075,997 x $0.60). In order to arrive at the fair value of the Company, fair value adjustments have been made on inventories and related party balances. The estimated fair value of the Company identifiable net assets after fair value adjustments is as follows

 

 

   As of 
December 31,
2022		 
     
Property, plant and equipment, net.  $21,807 
Intangible asset   59,803 
Current assets  $7,239,547 
Current liabilities   (4,870,094)
Net assets acquired  $2,451,063 

 

(2) The Company performs our annual test of goodwill impairment in the fourth quarter of every year. In connection with the annual goodwill impairment test in the fourth quarter of 2023, the Company estimated the fair value of our FintechAsia reporting unit using the income and market approaches. In the annual 2023 test, the FintechAsia reporting unit exceeded the carrying values by more than 50 percent. The Company performed a qualitative test on our FintechAsia reporting unit and concluded it was more likely than not the fair value of this reporting unit exceeded its carrying value.

 

During the year ended December 31, 2023, the Company recorded a goodwill impairment charge of $39,136,871 in our FintechAsia reporting unit, primarily due to the surrendering of our credit token license and significant impacts on money broking transactional volume following the cryptocurrency market crash in 2022. Both significantly impacted forecasted cash flows used in our analysis. Moreover, operating expenses did not decline proportionally to revenue. In addition, inflationary pressures also caused our forecasted expenses to increase. Furthermore, our discounted cash flows utilized a higher risk-adjusted discount rate for the 2023 impairment test, primarily due to central banks raising interest rates in 2023 and increased country-specific risk due to macroeconomic factors.

 

The Company estimated the fair value of the FintechAsia reporting unit based on income and market approaches. Fair value under the income approach was determined by discounting to present value the estimated future cash flows of the reporting unit. Fair value under the market approach utilized the guideline public company methodology, which uses valuation indicators from publicly-traded companies that are similar to our FintechAsia reporting unit and considers differences between our reporting unit and the comparable companies.

 

In estimating the future cash flows of the FintechAsia reporting unit, the Company utilized a combination of market and company-specific inputs that a market participant would use in assessing the fair value of the reporting units. The primary market input was revenue growth rates. These rates were based upon historical trends and estimated future growth drivers such as the money brokering, payment solutions, and white labelling growth rate. Significant company-specific inputs included assumptions regarding how the reporting unit could leverage operating expenses as revenue grows.

 

Under the guideline public company methodology, the Company took into consideration specific risk differences between our reporting unit and the comparable companies, such as recent financial performance, size risks and product portfolios, among other considerations.

 

The Company used significant unobservable inputs within the income approach valuation method. These include the discount rate of 25.05% and the long-term growth rate of 1.50%. Significant increases (decreases) in growth rates, control premiums and multiples, assuming no change in discount rates, would result in a significantly higher (lower) fair value measurement. Significant decreases (increases) in discount rates, assuming no changes in growth rates, control premiums and multiples, would result in a significantly higher (lower) fair value measurement.

 

The Company will continue to monitor the fair value of our reporting units in our interim and annual reporting periods. If our estimated cash flows decrease, the Company may have to record further impairment charges in the future. Factors that could result in our cash flows being lower than our current estimates include: 1) decreased revenues caused by unforeseen changes the market, 2) our inability to achieve the estimated operating margins in our forecasts from our restructuring programs, cost saving initiatives, and other unforeseen factors, and 3) the weakening of foreign currencies against the U.S. Dollar. Additionally, changes in the broader economic environment could cause changes to our estimated discount rates and comparable company valuation indicators, which may impact our estimated fair values. Due to the significant carrying amount of goodwill recognized, any further impairment may cause a significant adverse financial impact on the Company that could raise doubt about the Company’s ability to continue as a going concern.
v3.24.1.1.u2
PROPERTY AND EQUIPMENT
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT

 

6. PROPERTY AND EQUIPMENT

 

Property and equipment, net consist of the following:

 

   As of 
December 31,
2023		   As of 
December 31,
2022		 
         
Office equipment  $8,628   $7,067 
Computer equipment   49,600    31,959 
Furniture and fittings   4,824    4,501 
Software and website   10,173    17,202 
    73,225    60,729 
Less: Accumulated depreciation   (34,625)   (21,867)
 Balance at end of year  $38,600   $38,862 

 

Depreciation expenses charged to the statements of loss and comprehensive loss for the years ended December 31, 2023 and 2022 were $12,758 and $7,569 respectively. 
v3.24.1.1.u2
ACCRUALS AND OTHER PAYABLES
 12 Months Ended
Dec. 31, 2023
Payables and Accruals [Abstract]  
ACCRUALS AND OTHER PAYABLES

 

7. ACCRUALS AND OTHER PAYABLES

 

Accruals and other payables consist of the following:

 

   As of 
December 31,
2023		   As of 
December 31,
2022		 
         
Provisions and accruals (1)  $319,939   $163,217 
Others (2)   1,633,221    1,698,762 
Balance at end of year  $1,953,160   $1,861,979 

 

  (1) Provisions and accruals consists mainly of audit and accountancy fees and includes $52,000 of share options issued to directors during the year.
  (2) Other payables mainly consists of client funds.

 
v3.24.1.1.u2
INCOME TAX
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
INCOME TAX

 

 8. INCOME TAX

 

Income taxes consisted of U.S. income tax and foreign income tax, where foreign income tax consist of United Kingdom income tax and Malaysia income tax.

 

U.S. income tax rate is 21% (2022: 21%). Foreign income tax consist of United Kingdom income tax and Malaysia Income Tax. United Kingdom income tax rate is 25% (2022: 19%). Malaysia income tax rate is 24% (2022: 24%), however, due to FintechAsia enjoy preferential tax rate of 3% (2022: 3%) due to within the territory of Labuan, Malaysia.

 

Income taxes includes the following components:  

         
   For the year ended 
   December 31,
2023		   December 31,
2022		 
United States  $55,692   $— 
Foreign   109,793    5,057 
Income tax recovery  $165,485   $5,057 

 

The foreign income taxes derived from Malaysia income tax within territory of Labuan. No United Kingdom income taxes are provided due to sufficient tax credits in the UK subsidiaries for offsetting against its income taxes for the year ended December 31, 2023.

 

Under IRC Section 382, a corporation that undergoes an “ownership change” in subject to limitations on its use of pre-change NOL carryforwards to offset future taxable income. As of each reporting date, the management assessed the realizability of deferred tax assets. Deferred tax assets had not been recognized in respect of any potential tax benefit that may be derived from non-capital loss carry forward and property and equipment due to past negative evidence of previous cumulative net losses and uncertainty upon restructuring. The management will continue to assess at each reporting period to determine the realizability of deferred tax assets.
v3.24.1.1.u2
Revenue
 12 Months Ended
Dec. 31, 2023
Revenue Recognition and Deferred Revenue [Abstract]  
Revenue

 

9. Revenue

 

The Company derives its revenue mainly from transaction fees earned through financial payment and settlement services. For these transaction fee revenues, the Company view itself as the agent in these transactions and as a result, records revenue on a net basis. The Company considers its performance obligation satisfied and recognizes revenue at the point in time the transaction is processed.

 

The disaggregation of revenue of the Company by geographical region is as follows:

 

    United Kingdom     Malaysia     Total  
    2023     2022     2023     2022     2023     2022  
Transaction fees     1,983,139       2,476,385       287,734       547,600       2,270,873       3,023,985  
Other     —       —       149,311       60,294       149,311       60,294  
Total revenue     1,983,139       2,476,385       437,045       607,894       2,420,184       3,084,279  

 
v3.24.1.1.u2
RELATED PARTY TRANSACTIONS
 12 Months Ended
Dec. 31, 2023
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

 

10. RELATED PARTY TRANSACTIONS

 

   As of 
December 31,
2023		   As of 
December 31,
2022		 
Amount due from related parties          
Ho Wah Genting Group Sdn Bhd (2)  $—   $799,094 
HWG Fintech International Ltd (2)   —    497,841 
Total Amount due from related parties  $—   $1,296,935 
           
Amount due to related parties          
Grande Legacy Inc. (1)  $—   $266,610 
HWG Capital Inc. (3)   —    329,565 
HWG Digital Investment Bank (Malaysia) P.L.C. (2)   —    1,596,825 
Aelora Sdn Bhd (1)   —    23,933 
Ho Wah Genting Group Sdn Bhd (2)   25,748    — 
Shalom Dodoun (4)   727,624    246,900 
Natalie Kastberg (5)   1,668    — 
Total Amount due to related parties  $755,040   $2,463,833 

 

The related party balances are unsecured, interest-free and repayable on demand.

 

  (1) During the year ended December 31, 2022, Aelora Sdn Bhd (“ASB” and previously known as “Vitaxel Sdn Bhd”) and Vitaxel Online Mall Sdn Bhd (“VOM”), which are dormant, have been disposed as part of the restructuring transactions as disclosed in Note 1: Organization and Business.

Both ASB and VOM are disposed to Mr Leong Yee Ming, a previous director and CEO of the Company, which also includes certain intercompany debt assignment. Upon completion of the disposal, related party balances that are outstanding relating to advances made by Grande Legacy Inc. (“GL”) and ASB are $nil and $nil respectively for the year ended December 31, 2023.

 

  (2) Dato’ Lim Hui Boon, the previous president of the Company, is the director of Ho Wah Genting Group Sdn Bhd (“HWGGSB”). Dato’ Lim Hui Boon, is directly related to Mr Lim Chun Hoo, the previous CFO and the current CEO and director of the Company.

Mr Lim Chun Hoo, the previous CFO and the current CEO and director of the Company, is a director in HWG Fintech International Ltd (“HWGFI”) and a previous director of HWGGSB and HWG Digital Investment Bank (Malaysia) P.L.C. (“HDIB”). HDIB is previously known as Ho Wah Genting Investment Bank (Labuan) P.L.C.

 

The amount due from HWGGSB and HWGFI as at December 31, 2023 and December 31, 2022, were advances made by the Company to HWGGSB and HWGFI. Whilst amount due to HDIB were advances made by HDIB to the Company.

 

  (3) Mr Leong Yee Ming, a previous director and CEO of the Company, is a director of HWG Capital Inc. (previously known as “GrandeLife Inc.”).
     
  (4)

Mr Shalom Dodoun (“Mr Shalom”) was the previous director and CEO of the Company. The amount due to Mr Shalom as at December 31, 2023, were advances made by Mr Shalom to the Company. Mr Shalom agreed to grant the Company an unsecured Sterling term loan facility and the Company shall pay interest on the Loan at the rate of 6% per annum above Barclays Bank Rate.

 

  (5) Ms Natalie Kastberg (“Ms Kastberg”), is a current director of Fintech. The amount due to Ms Kastberg as at December 31, 2023, were advances made by Ms Kastberg to the Company.

 

  (6) Total payment made in the form of compensation, which includes salary, bonus, stock awards and all other compensation have been made to the following officer of the Company that are individually in excess of $100,000 annually:

 

   December 31,
2023		   December 31,
2022		 
Directors & Officers          
Shalom Dodoun – Previous Director, Chief Executive Officer of the Company  $287,138   $142,005 
Richard Berman – Non-executive Director of the Company (7)  $100,000   $— 

 

  (7) Mr. Richard Berman (“Mr. Berman”), is a current non-executive director of the Company.

 
v3.24.1.1.u2
COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES

 

11. COMMITMENTS AND CONTINGENCIES

 

Capital Commitments

 

Upon the successful uplisting of the Company to Nasdaq, Mr. Richard Berman, the non-executive director of the Company, shall be rewarded with Company’s shares, up to a maximum of 1% of the Company’s market capitalization. The number of shares to be issued shall be calculated based on the market share price (as stated on Nasdaq) on the first closing date of the Company listed on Nasdaq.
v3.24.1.1.u2
STOCKHOLDERS’ EQUITY
 12 Months Ended
Dec. 31, 2023
Equity [Abstract]  
STOCKHOLDERS’ EQUITY

 

12. STOCKHOLDERS’ EQUITY

 

Common stocks

 

The Company’s authorized common stock is $0.001: 400,000,000 shares, with 298,742,643 shares issued and outstanding during the year ended December 31, 2023.

 

The Company’s authorized common stock is $0.001: 400,000,000 shares, with 198,742,643 shares issued and outstanding during the year ended December 31, 2022.

 

The Company’s authorized common stock is $0.0001: 70,000,000 shares, with 54,087,903 shares issued and outstanding during the year ended December 31, 2021.

 

On April 8, 2022, Financial Industry Regulatory Authority, Inc. (“FINRA”) notified the Company that the Reverse Stock Split will take effect on the over-the-counter market at the start of business on April 11, 2022. The reverse stock split reduces the 54,087,903 shares issued and outstanding by 48,678,593 shares to 5,409,310. Effectively on April 11, 2022, the Company’s authorized common stock is $0.001: 400,000,000 shares, with 5,409,310 shares issued and outstanding.

 

On November 15, 2022 and November 30, 2022, the Company issued 91,666,667 and 101,666,666 shares respectively for the acquisition of FintechAsia and acquisition of Fintech as disclosed in Note 1: Organization And Business. The total shares issued for the acquisitions totalled to 193,333,333.

 

On November 15, 2023, the Company issued 100,000,000 shares (the “Shares”) to CICO for the acquisition of assets as disclosed in Note 1: Organization And Business. The total issued and outstanding shares of the Company had increased to 298,742,643 shares.

 

On December 27, 2023, the Company and CICO mutually and voluntarily agreed to unwind the transaction. The Shares were cancelled and removed from the Company’s issued and outstanding shares of common stock on January 30, 2024, decreasing the total issued and outstanding shares of the Company to 198,742,643 shares.

 

Preferred stocks

 

On March 10, 2022, the Company filed with the Secretary of State of the State of Nevada a Certificate of Designation of the Relative Rights and Preferences of The Redeemable Convertible Preferred Stock (the “Certificate of Designation”). Pursuant to the Certificate of Designation, the board of directors of the Company authorized the creation 25,000,000 shares of Redeemable Convertible Preferred Stock, par value $0.001 per share (the “RCPS”). The RCPS is ranked senior to all classes or series of the Company’s common stock and does not have any voting rights. However, the holders of the RCPS are entitled to receive, when declared by the board of directors, cumulative cash dividends at the rate of 6% per annum on each $1.00 per RCPS. Commencing on the date of issuance, the dividends on the RCPS shall accrue and be cumulative, payable annually in arrears on the 30th business day on each anniversary of the issue date. Dividends will accumulate whether or not the Company has earnings or whether funds are legally available or declared by the Board, and no interest will be payable on any dividends which may be in arrears. Each share of RCPS shall be convertible into one share of common stock of the Company, upon the Board approving the initiation of the listing process to list the shares of the Company on any stock exchange, or upon the written approval of the Company. The Company may also, at its option, redeem the RCPS for cash at a redemption price of $1.00 per share plus any accumulated and unpaid dividends thereon. Notwithstanding, all outstanding RCPS shall be redeemable by the Company on the second anniversary of the issuance date thereof.

 

No issuance of RCPS has occurred as of December 31, 2023. In the scenario of issuance of RCPS, the changes will be as follows:

 

    December 31, 2023   December 31, 2022  
RCPS issuance scenario   30%   50%     100%   30%   50%   100%  
                                         
SELECTED CONDENSED COMBINED BALANCE SHEET DATA:                                        
Cash and cash equivalents   $ 11,265,959     16,265,959       28,765,959     11,291,378     16,291,378     28,791,378  
Total assets   $ 28,578,344     33,578,344       46,078,344     71,325,261     76,325,261     88,825,261  
Total liabilities   $ 2,755,862     2,755,862       2,755,862     4,943,467     4,943,467     4,943,467  
Total stockholders’ equity   $ 25,822,482     30,822,482       43,322,482     66,381,794     71,381,794     83,881,794  

 
v3.24.1.1.u2
SUBSEQUENT EVENTS
 12 Months Ended
Dec. 31, 2023
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

 

13. SUBSEQUENT EVENTS

 

Following the financial year end, the 100,000,000 shares (10,000,000 shares, as adjusted for the 1-for-10 reverse split) that were issued to CICO for the acquisition of assets as disclosed in Note 1: Organization And Business, were cancelled and removed from the Company’s issued and outstanding shares of common stock on January 30, 2024. The total issued and outstanding shares of the Company will be reduced to 198,742,643 (19,874,265 shares, as adjusted for the 1-for-10 reverse split) shares on January 30, 2024.
v3.24.1.1.u2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Basis of presentation

Basis of presentation

 

The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

 

This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred. The Company’s financial statements are expressed in U.S. dollars.
Principles of Consolidation

Principles of Consolidation

 

The consolidated financial statements include the accounts of the Company and its subsidiaries. On consolidation, all intercompany balances and transactions are eliminated.
Use of estimates

Use of estimates

 

The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. The Company regularly evaluates estimates and assumptions. The Company bases its estimates and assumptions on current facts, historical experience and various other factors it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. Significant areas of estimate include useful lives of property and equipment, impairment of long-term assets and deferred income tax obligations. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. 
Foreign currency translation and transactions

Foreign currency translation and transactions

 

The functional currency of the Company is United States Dollar (US Dollars). The  Company translates the financial statements of its foreign subsidiary from the local (functional) currency into US Dollars using the year or reporting period end or average exchange rates in accordance with the requirements of Accounting Standards Codification subtopic 830-10, Foreign Currency Matters (“ASC 830-10”). Assets and liabilities of these subsidiaries were translated at exchange rates as of the balance sheet date. Revenues and expenses are translated at average rates in effect for the periods presented. Translation gains and losses are recorded in accumulated other comprehensive income or loss as a component of shareholders’ equity.
Cash and cash equivalents

Cash and cash equivalents

 

Cash and cash equivalents consist of cash on hand and highly liquid investments, which are unrestricted from withdrawal or use, and which have original maturities of three months or less when purchased.
Accounts receivable

Accounts receivable

 

Accounts receivable are recognized and carried at original invoiced amount less an allowance for any potential uncollectible amounts. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. The Company generally does not require collateral from its customers. For the year ended December 31, 2023 and 2022, the Company wrote down $39,310 and $nil respectively, of its accounts receivable were written off as bad debts.  
Fair value of financial instruments

Fair value of financial instruments

 

FASB ASC 820, “Fair Value Measurement,” specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources (observable inputs). In accordance with ASC 820, the following summarizes the fair value hierarchy:

 

Level 1 Inputs – Unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access.

 

Level 2 Inputs – Inputs other than the quoted prices in active markets that are observable either directly or indirectly.

 

Level 3 Inputs – Inputs based on prices or valuation techniques that are both unobservable and significant to the overall fair value measurements.

 

ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurements. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. As of December 31, 2023 and 2022, none of the Company’s assets and liabilities was required to be reported at fair value on a recurring basis. Carrying values of non-derivative financial instruments, including cash, accounts receivables, payables and accrued liabilities, approximate their fair values due to the short-term nature of these financial instruments. There were no changes in methods or assumptions during the periods presented.
Inventories

Inventories

 

Inventories consist of finished goods and prepaid cards. Inventories are stated at lower of cost or net realizable value, with cost determined on a weighted-average method, and not to exceed net realizable value. The Company writes down its inventory balances for obsolete amounts estimated on an individual basis for the finished goods. For the year ended December 31, 2023 and 2022, the Company wrote down $nil and $nil respectively, of its inventories that have been obsolete.
Goodwill

Goodwill

 

Goodwill is not amortized but is subject to annual impairment tests. Goodwill has been assigned to reporting units. Potential impairment of a reporting unit is identified by either comparing a reporting unit’s estimated fair value to its carrying amount or doing a qualitative assessment of a reporting unit’s fair value from the last quantitative assessment to determine if there is potential impairment. We may do a qualitative assessment when the results of the previous quantitative test indicated the reporting unit’s estimated fair value was significantly in excess of the carrying value of its net assets and we do not believe there have been significant changes in the reporting unit’s operations that would significantly decrease its estimated fair value. If a quantitative assessment is performed, the fair value of the reporting unit and the fair value of goodwill are determined based upon a discounted cash flow analysis and/or use of a market approach by looking at market values of comparable companies. Significant assumptions are incorporated into our discounted cash flow analyses such as forecasted net sales, revenue growth rates, forecasted operating expenses and risk-adjusted discount rates. We perform this test in the fourth quarter of the year or whenever events or changes in circumstances indicate that the fair value of the reporting unit is more likely than not below its carrying amount. If the fair value of the reporting unit is less than its carrying value, an impairment loss is recorded in the amount that the carrying value of the reporting unit exceeds the fair value. See Note 5 for more information regarding goodwill.
Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

 

The Company periodically reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset.
Intangible assets

Intangible assets

 

Intangible assets primarily include trademarks and trade secrets with indefinite lives and customer-relationships with finite lives. Intangible assets with indefinite lives are not amortized but are tested for impairment on an annual basis, or more frequently if indicators of impairment are present. Indefinite lived intangible assets are assessed using either a qualitative or a quantitative approach. The qualitative assessment evaluates factors including macro-economic conditions, industry and company-specific factors, legal and regulatory environments, and historical company performance in assessing fair value. If it is determined that it is more likely than not that the fair value of the intangible asset is less than its carrying value, a quantitative test is then performed. Otherwise, no further testing is required. When using a quantitative approach, the Company compares the fair value of the intangible asset to its carrying amount, including goodwill. If the estimated fair value of the intangible asset is less than the carrying amount of the intangible asset, impairment is indicated, requiring recognition of an impairment charge for the differential.

 

Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives. The Company reviews for impairment indicators of finite-lived intangibles and other long-lived assets as described in the “Impairment of Long-Lived Assets” significant accounting policy.
Property and equipment, net

Property and equipment, net

 

Property and equipment are carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives: 

 

  Office equipment 5 years    
  Computer equipment 5 years    
  Furniture and fixtures 5 years    
  Electrical & fitting 5 years    
  Software and website 5 years    

 

The residual values, useful lives and methods of depreciation of property and equipment are reviewed and adjusted if appropriate, on an annual basis.
Leases

Leases

 

The Company assesses, at the inception of contract, whether it contains a lease. A contract is classified as a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

 

The Company recognizes a right-of-use asset and lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises of the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any indirect costs incurred.

 

The right-to-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-to-use asset or the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses and adjusted for certain remeasurements of the lease liability, if any.

 

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be determined, the Company’s incremental borrowing rate. The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made. It is remeasured when there is a change in future lease payment arising from a change in an index or rate, or changes in assessment of whether a purchase or extension option is reasonably certain to be exercised or a termination option is reasonably certain not to be exercised.
Revenue recognition

Revenue recognition

 

The primary source of our revenue is the transaction fees from financial payment and settlement services.

 

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

 

Revenue is generated through delivery services. Revenue is recognized when a customer receives services and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those services. The Company applies the following five-step model in order to determine this amount:

 

(i)     identification of the services in the contract;  

(ii)    determination of whether the services are performance obligations, including whether they are distinct in the context of the contract;  

(iii)   measurement of the transaction price, including the constraint on variable consideration;  

(iv)   allocation of the transaction price to the performance obligations; and  

(v)    recognition of revenue when (or as) the Company satisfies each performance obligation.

 

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 goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers as services are performed over the remaining contractual terms.
Research and Development Costs

Research and Development Costs

 

Research and development (“R&D”) costs are charged to expense in the periods incurred. There were no expenditures incurred by the Company for research and development for the year ended December 31, 2023 and 2022.
Commission expense

Commission expense

 

Commission expense incurred by the Company is recognized as cost of revenue and as a liability (commission payable in the consolidated balance sheet. Commission expense is not recoverable once recognized and is expensed as incurred.
Income Taxes

Income Taxes

 

Income taxes are determined using the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes that date of enactment. In addition, a valuation allowance is established to reduce any deferred tax asset for which it is determined that it is more likely than not that some portion of the deferred tax asset will not be realized. 
Uncertain Tax Positions

Uncertain Tax Positions

 

The impact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes are classified as a component of the provisions for income taxes. As of December 31, 2023 and 2022, the Company recognized income tax of expense of $165,485 and $5,057 respectively.
Comprehensive income / loss

Comprehensive income / loss

 

Comprehensive income / loss includes net gain/loss and cumulative foreign currency translation adjustments and is reported in the Consolidated Statement of Comprehensive Income or Loss.
Income / Loss per share

Income / Loss per share

 

The income / loss per share is computed using the weighted average number of shares outstanding during the fiscal years. For the years ended December 31, 2023 and 2022, there was no dilutive effect due to net gain / loss.
Related party transactions

Related party transactions

 

The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.

 

Pursuant to Section 850-10-20 the related parties include (a) affiliates of the registrant; (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; (d) principal owners of the Company; (e) management of the Company; (f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The financial statements include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s) involved; (b) description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.
Recently issued accounting pronouncements

Recently issued accounting pronouncements

 

Accounting standards promulgated by the FASB are subject to change. Changes in such standards may have an impact on the Company’s future financial statements. The following are a summary of recent accounting developments.

 

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) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective January 1, 2024 for the Company and should be applied on a full or modified retrospective basis, with early adoption permitted beginning January 1, 2021. The Company has determined not to early adopt ASU 2020-06. The implementation of this accounting treatment is not expected to have a material effect on the Company’s financial statements.

 

Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the Securities and Exchange Commission (“SEC”) did not, or are not believed by management, to have a material impact on the Company’s present and future consolidated financial statements.
Accounting Pronouncements Not Yet Adopted

Accounting Pronouncements Not Yet Adopted

 

In November 2023, the Financial Accounting Standards Board (FASB) issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07), which requires an enhanced disclosure of significant segment expenses on an annual and interim basis. This guidance will be effective for the annual periods beginning the year ended December 31, 2024, and for interim periods beginning January 1, 2025. Early adoption is permitted. Upon adoption, the guidance should be applied retrospectively to all prior periods presented in the financial statements. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

 

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which improves the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation and income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. This guidance will be effective for the annual periods beginning the year ended December 31, 2025. Early adoption is permitted. Upon adoption, the guidance can be applied prospectively or retrospectively. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.
v3.24.1.1.u2
ORGANIZATION AND BUSINESS (Tables)
 12 Months Ended
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
The Company holds the following equity interests in its subsidiaries:

The Company holds the following equity interests in its subsidiaries:

 

                          Interest  
No.   Name of subsidiary  

Country of 

incorporation 

  

2023 

% 

    

2022 

% 

     Principal activities
1   FintechCashier Asia P.L.C., previously known as HWGG Capital P.L.C. (“FintechAsia”)      Malaysia   100     100     Money broking
2   HWG Cash Singapore Pte Ltd (“HCS”)   Singapore   55     55     Trading of digital assets
3   HWGC KZ Limited (“HKZ”)   Kazakhstan   100     100     Software development
4   Fintech Scion Limited (“Fintech”)   United Kingdom   100     100     Holding company and protection of Intellectual Property
5   Fintech Digital Solutions Limited (“FDS”)   United Kingdom   100     100     Digital payment services
6   Fintech Digital Consulting Limited (“FDC”)   United Kingdom   100     100     Technology provider and payment consulting
7   Aelora Sdn Bhd, previously known as Vitaxel Sdn Bhd (“ASB”)   Malaysia   —     100(1)     Direct selling industry
8   Vitaxel Online Mall Sdn Bhd (“VOM”)   Malaysia   —     100(1)     Online shopping platforms

 

(1)ASB and VOM were disposed by the Company on December 30, 2022.
The disposal had the following financial effects on the Company for the year ended December 31, 2022:

Upon completion of the disposal, ASB and VOM ceased to be the subsidiary of the Company as at December 31, 2022. The disposal had the following financial effects on the Company for the year ended December 31, 2022:  

             
   For the year ended December 31, 2022 
   ASB   VOM   Total 
Property, plant and equipment, net.  $11,824   $229   $12,053 
Rights-of-use assets   13,854    —    13,854 
Cash and cash equivalents   75,389    —    75,389 
Other receivables, prepayments and other current assets   10,793    2,156    12,949 
Other payables   (4,365,372)   (25,528)   (4,390,900)
Lease liabilities   (79,525)   —    (79,525)
Net liabilities disposed  $(4,333,037)  $(23,143)   (4,356,180)
Consideration received, satisfied in assignment of intercompany debt   (1,124,997)   (1)   (1,124,998)
Net gain on disposal of subsidiaries  $(5,458,034)  $(23,144)  $(5,481,178)
v3.24.1.1.u2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Schedule of property, plant and equipment estimated useful lives

Property and equipment are carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives: 

 

  Office equipment 5 years    
  Computer equipment 5 years    
  Furniture and fixtures 5 years    
  Electrical & fitting 5 years    
  Software and website 5 years    
v3.24.1.1.u2
OTHER RECEIVABLES, PREPAYMENTS AND OTHER CURRENT ASSETS (Tables)
 12 Months Ended
Dec. 31, 2023
Other Receivables Prepayments And Other Current Assets  
Schedule of other receivables and other assets

Other receivables, prepayments and other current assets consist of the following:

 

   As of 
December 31,
2023		   As of 
December 31,
2022		 
         
Other receivables (1)  $294,780   $949,430 
Deposits (2)  $110,161   $87,805 
Prepayments (3)  $4,510   $12,057 
Common stock not paid (4)  $100,000   $— 
Total  $509,451   $1,049,292 

  

  (1) Other receivables primarily represent balances in liquidity solution providers.
  (2) Deposits represented payments for rental, utilities, and deposit payment to product suppliers.
  (3) Prepayments mainly consists of prepayment for insurance and IT related fees.
  (4) Common stock not paid consists of the shares issued to CICO as disclosed in Note 1: Organization And Business.
v3.24.1.1.u2
Goodwill (Tables)
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
The table below set forth the carrying amount of goodwill for the year ended December 31, 2023 and 2022:

The table below set forth the carrying amount of goodwill for the year ended December 31, 2023 and 2022:

 

   As of 
December 31,
2023		   As of 
December 31,
2022		 
         
Gross carrying amount  $—   $— 
Acquired in business combination (1)   55,794,524    55,794,524 
Total   55,794,524    55,794,524 
Accumulated impairment  $—   $— 
Impairment (2)   (39,136,871)   — 
    —    — 
           
Goodwill, net  $16,657,653   $55,794,524 

 

  (1) Goodwill acquired during the year ended December 31, 2022 resulted from the acquisition of Fintech as disclosed in Note 1: Organization and business.
Schedule of fair value adjustment

 

   As of 
December 31,
2022		 
     
Property, plant and equipment, net.  $21,807 
Intangible asset   59,803 
Current assets  $7,239,547 
Current liabilities   (4,870,094)
Net assets acquired  $2,451,063 
v3.24.1.1.u2
PROPERTY AND EQUIPMENT (Tables)
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Property and equipment, net consist of the following:

Property and equipment, net consist of the following:

 

   As of 
December 31,
2023		   As of 
December 31,
2022		 
         
Office equipment  $8,628   $7,067 
Computer equipment   49,600    31,959 
Furniture and fittings   4,824    4,501 
Software and website   10,173    17,202 
    73,225    60,729 
Less: Accumulated depreciation   (34,625)   (21,867)
 Balance at end of year  $38,600   $38,862 
v3.24.1.1.u2
ACCRUALS AND OTHER PAYABLES (Tables)
 12 Months Ended
Dec. 31, 2023
Payables and Accruals [Abstract]  
Accruals and other payables consist of the following:

Accruals and other payables consist of the following:

 

   As of 
December 31,
2023		   As of 
December 31,
2022		 
         
Provisions and accruals (1)  $319,939   $163,217 
Others (2)   1,633,221    1,698,762 
Balance at end of year  $1,953,160   $1,861,979 

 

  (1) Provisions and accruals consists mainly of audit and accountancy fees and includes $52,000 of share options issued to directors during the year.
  (2) Other payables mainly consists of client funds.
v3.24.1.1.u2
INCOME TAX (Tables)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income taxes includes the following components:

Income taxes includes the following components:  

         
   For the year ended 
   December 31,
2023		   December 31,
2022		 
United States  $55,692   $— 
Foreign   109,793    5,057 
Income tax recovery  $165,485   $5,057 
v3.24.1.1.u2
Revenue (Tables)
 12 Months Ended
Dec. 31, 2023
Revenue Recognition and Deferred Revenue [Abstract]  
The disaggregation of revenue of the Company by geographical region is as follows:

The disaggregation of revenue of the Company by geographical region is as follows:

 

    United Kingdom     Malaysia     Total  
    2023     2022     2023     2022     2023     2022  
Transaction fees     1,983,139       2,476,385       287,734       547,600       2,270,873       3,023,985  
Other     —       —       149,311       60,294       149,311       60,294  
Total revenue     1,983,139       2,476,385       437,045       607,894       2,420,184       3,084,279  
v3.24.1.1.u2
RELATED PARTY TRANSACTIONS (Tables)
 12 Months Ended
Dec. 31, 2023
Related Party Transactions [Abstract]  
Schedule of related party transaction
   As of 
December 31,
2023		   As of 
December 31,
2022		 
Amount due from related parties          
Ho Wah Genting Group Sdn Bhd (2)  $—   $799,094 
HWG Fintech International Ltd (2)   —    497,841 
Total Amount due from related parties  $—   $1,296,935 
           
Amount due to related parties          
Grande Legacy Inc. (1)  $—   $266,610 
HWG Capital Inc. (3)   —    329,565 
HWG Digital Investment Bank (Malaysia) P.L.C. (2)   —    1,596,825 
Aelora Sdn Bhd (1)   —    23,933 
Ho Wah Genting Group Sdn Bhd (2)   25,748    — 
Shalom Dodoun (4)   727,624    246,900 
Natalie Kastberg (5)   1,668    — 
Total Amount due to related parties  $755,040   $2,463,833 

 

The related party balances are unsecured, interest-free and repayable on demand.

 

  (1) During the year ended December 31, 2022, Aelora Sdn Bhd (“ASB” and previously known as “Vitaxel Sdn Bhd”) and Vitaxel Online Mall Sdn Bhd (“VOM”), which are dormant, have been disposed as part of the restructuring transactions as disclosed in Note 1: Organization and Business.

Both ASB and VOM are disposed to Mr Leong Yee Ming, a previous director and CEO of the Company, which also includes certain intercompany debt assignment. Upon completion of the disposal, related party balances that are outstanding relating to advances made by Grande Legacy Inc. (“GL”) and ASB are $nil and $nil respectively for the year ended December 31, 2023.

 

  (2) Dato’ Lim Hui Boon, the previous president of the Company, is the director of Ho Wah Genting Group Sdn Bhd (“HWGGSB”). Dato’ Lim Hui Boon, is directly related to Mr Lim Chun Hoo, the previous CFO and the current CEO and director of the Company.

Mr Lim Chun Hoo, the previous CFO and the current CEO and director of the Company, is a director in HWG Fintech International Ltd (“HWGFI”) and a previous director of HWGGSB and HWG Digital Investment Bank (Malaysia) P.L.C. (“HDIB”). HDIB is previously known as Ho Wah Genting Investment Bank (Labuan) P.L.C.

 

The amount due from HWGGSB and HWGFI as at December 31, 2023 and December 31, 2022, were advances made by the Company to HWGGSB and HWGFI. Whilst amount due to HDIB were advances made by HDIB to the Company.

 

  (3) Mr Leong Yee Ming, a previous director and CEO of the Company, is a director of HWG Capital Inc. (previously known as “GrandeLife Inc.”).
     
  (4)

Mr Shalom Dodoun (“Mr Shalom”) was the previous director and CEO of the Company. The amount due to Mr Shalom as at December 31, 2023, were advances made by Mr Shalom to the Company. Mr Shalom agreed to grant the Company an unsecured Sterling term loan facility and the Company shall pay interest on the Loan at the rate of 6% per annum above Barclays Bank Rate.

 

  (5) Ms Natalie Kastberg (“Ms Kastberg”), is a current director of Fintech. The amount due to Ms Kastberg as at December 31, 2023, were advances made by Ms Kastberg to the Company.
Schedule of officers
   December 31,
2023		   December 31,
2022		 
Directors & Officers          
Shalom Dodoun – Previous Director, Chief Executive Officer of the Company  $287,138   $142,005 
Richard Berman – Non-executive Director of the Company (7)  $100,000   $— 

 

  (7) Mr. Richard Berman (“Mr. Berman”), is a current non-executive director of the Company.
v3.24.1.1.u2
STOCKHOLDERS’ EQUITY (Tables)
 12 Months Ended
Dec. 31, 2023
Equity [Abstract]  
In the scenario of issuance of RCPS, the changes will be as follows:

No issuance of RCPS has occurred as of December 31, 2023. In the scenario of issuance of RCPS, the changes will be as follows:

 

    December 31, 2023   December 31, 2022  
RCPS issuance scenario   30%   50%     100%   30%   50%   100%  
                                         
SELECTED CONDENSED COMBINED BALANCE SHEET DATA:                                        
Cash and cash equivalents   $ 11,265,959     16,265,959       28,765,959     11,291,378     16,291,378     28,791,378  
Total assets   $ 28,578,344     33,578,344       46,078,344     71,325,261     76,325,261     88,825,261  
Total liabilities   $ 2,755,862     2,755,862       2,755,862     4,943,467     4,943,467     4,943,467  
Total stockholders’ equity   $ 25,822,482     30,822,482       43,322,482     66,381,794     71,381,794     83,881,794  
v3.24.1.1.u2
The Company holds the following equity interests in its subsidiaries: (Details)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
H W G G Capital P L C [Member]    
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]    
Country of incorporation Malaysia  
H W G G Capital P L C [Member] | Other Investees One [Member]    
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]    
Principal activities Money broking  
H W G G Capital P L C [Member] | Ownership One [Member]    
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]    
Interests rate 100.00% 100.00%
HWG Cash Singapore Pte Ltd [Member]    
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]    
Country of incorporation Singapore  
HWG Cash Singapore Pte Ltd [Member] | Other Investees Two [Member]    
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]    
Principal activities Trading of digital assets  
HWG Cash Singapore Pte Ltd [Member] | Ownership Two [Member]    
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]    
Interests rate 55.00% 55.00%
HWGC KZ Limited [Member]    
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]    
Country of incorporation Kazakhstan  
HWGC KZ Limited [Member] | Other Investees Three [Member]    
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]    
Principal activities Software development  
HWGC KZ Limited [Member] | Ownership Three [Member]    
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]    
Interests rate 100.00% 100.00%
Fintech Scion Limited [Member]    
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]    
Country of incorporation United Kingdom  
Fintech Scion Limited [Member] | Other Investees Four [Member]    
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]    
Principal activities Holding company and protection of Intellectual Property  
Fintech Digital Solutions Limited [Member]    
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]    
Country of incorporation United Kingdom  
Fintech Digital Solutions Limited [Member] | Other Investees Five [Member]    
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]    
Principal activities Digital payment services  
Fintech Digital Solutions Limited [Member] | Ownership Five [Member]    
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]    
Interests rate 100.00% 100.00%
Fintech Digital Consulting Limited [Member]    
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]    
Country of incorporation United Kingdom  
Fintech Digital Consulting Limited [Member] | Other Investees Six [Member]    
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]    
Principal activities Technology provider and payment consulting  
Fintech Digital Consulting Limited [Member] | Ownership Six [Member]    
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]    
Interests rate 100.00% 100.00%
Aelora Sdn Bhd Previously Known As Vitaxel Sdn Bhdasb [Member]    
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]    
Country of incorporation Malaysia  
Aelora Sdn Bhd Previously Known As Vitaxel Sdn Bhdasb [Member] | Other Investees Seven [Member]    
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]    
Principal activities Direct selling industry  
Aelora Sdn Bhd Previously Known As Vitaxel Sdn Bhdasb [Member] | Ownership Seven [Member]    
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]    
Interests rate 100.00% [1]
Vitaxel Online Mall Sdn Bhd [Member]    
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]    
Country of incorporation Malaysia  
Vitaxel Online Mall Sdn Bhd [Member] | Other Investees Eight [Member]    
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]    
Principal activities Online shopping platforms  
Vitaxel Online Mall Sdn Bhd [Member] | Ownership Eight [Member]    
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]    
Interests rate 100.00% [1]
[1] ASB and VOM were disposed by the Company on December 30, 2022.
v3.24.1.1.u2
The disposal had the following financial effects on the Company for the year ended December 31, 2022: (Details)
Dec. 31, 2022
USD ($)
Defined Benefit Plan Disclosure [Line Items]  
Property, plant and equipment, net. $ 12,053
Rights-of-use assets 13,854
Cash and cash equivalents 75,389
Other receivables, prepayments and other current assets 12,949
Other payables (4,390,900)
Lease liabilities (79,525)
Net liabilities disposed (4,356,180)
Consideration received, satisfied in assignment of intercompany debt (1,124,998)
Net gain on disposal of subsidiaries (5,481,178)
A S B [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Property, plant and equipment, net. 11,824
Rights-of-use assets 13,854
Cash and cash equivalents 75,389
Other receivables, prepayments and other current assets 10,793
Other payables (4,365,372)
Lease liabilities (79,525)
Net liabilities disposed (4,333,037)
Consideration received, satisfied in assignment of intercompany debt (1,124,997)
Net gain on disposal of subsidiaries (5,458,034)
V O M [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Property, plant and equipment, net. 229
Rights-of-use assets
Cash and cash equivalents
Other receivables, prepayments and other current assets 2,156
Other payables (25,528)
Lease liabilities
Net liabilities disposed (23,143)
Consideration received, satisfied in assignment of intercompany debt (1)
Net gain on disposal of subsidiaries $ (23,144)
v3.24.1.1.u2
ORGANIZATION AND BUSINESS (Details Narrative) - USD ($)
 12 Months Ended
Nov. 15, 2023
Oct. 11, 2023
Dec. 29, 2022
Nov. 30, 2022
Nov. 15, 2022
Aug. 09, 2022
Jul. 21, 2022
Dec. 31, 2023
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]                
Share exchange agreement               97,075,997
H W G G Capital [Member]                
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]                
Number of shares converted             91,666,667  
Share exchange agreement         97,075,977      
H W G G Capital [Member] | Exchange Agreement [Member]                
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]                
Description of acquisition             the Company is to acquire all issued and outstanding ordinary shares of FintechAsia in exchange for an aggregate of $55,000,000. The number of exchange shares were calculated based on $0.60 share price. The number of shares of common stock of the Company issued upon consummation of the share exchange agreement was 91,666,667 shares.  
Shares exchange value             $ 55,000,000  
Exchange value in per share             $ 0.60  
Acquisition Of Fintech [Member]                
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]                
Number of shares converted           10,166,666    
Share exchange agreement       198,742,643        
Acquisition Of Fintech [Member] | Exchange Agreement [Member]                
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]                
Description of acquisition           the Company acquired all issued and outstanding ordinary shares of Fintech from the Fintech’s shareholders in exchange for an aggregate of $61,000,000. The number of exchange shares were calculated based on $0.60 share price. The number of shares of common stock of the Company issued upon consummation of this share exchange agreement was 101,666,666 shares.    
Shares exchange value           $ 61,000,000    
Exchange value in per share           $ 0.60    
A S B And V O M [Member]                
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]                
Description of acquisition     Pursuant to the terms of the agreement, the Company sold to Mr Leong, all issued and outstanding shares of ASB and VOM, for an aggregate purchase price of RM4,500,002 (approximately $1,124,998).          
CICO Digital Solutions Limited [Member]                
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]                
Number of shares converted 100,000,000 100,000,000            
Shares par value   $ 0.001            
v3.24.1.1.u2
Schedule of property, plant and equipment estimated useful lives (Details)
Dec. 31, 2023
Office Equipment [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 5 years
Computer Equipment [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 5 years
Furniture and Fixtures [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 5 years
Electrical And Fitting [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 5 years
Software and Software Development Costs [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 5 years
v3.24.1.1.u2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Accounting Policies [Abstract]    
Written off as bad debts $ 39,310 $ 0
Inventories written down 0 0
Research and development costs 0 0
Recognized income tax of expense $ 165,485 $ 5,057
v3.24.1.1.u2
ACCOUNTS RECEIVABLES (Details Narrative) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Credit Loss [Abstract]    
Accounts receivable derived from commissions receivables $ 59,974  
Bad debts 39,310  
Accounts receivable $ 59,974 $ 1,792,195
Commission receivable   597,986
Non interest bearing credit tokens   $ 1,194,208
v3.24.1.1.u2
Schedule of other receivables and other assets (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Other Receivables Prepayments And Other Current Assets    
Other receivables [1] $ 294,780 $ 949,430
Deposits [2] 110,161 87,805
Prepayments [3] 4,510 12,057
Common stock not paid [4] 100,000
Total $ 509,451 $ 1,049,292
[1] Other receivables primarily represent balances in liquidity solution providers.
[2] Deposits represented payments for rental, utilities, and deposit payment to product suppliers.
[3] Prepayments mainly consists of prepayment for insurance and IT related fees.
[4] Common stock not paid consists of the shares issued to CICO as disclosed in Note 1: Organization And Business.
v3.24.1.1.u2
The table below set forth the carrying amount of goodwill for the year ended December 31, 2023 and 2022: (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]    
Gross carrying amount
Acquired in business combination [1] 55,794,524 55,794,524
Total 55,794,524 55,794,524
Accumulated impairment
Impairment (39,136,871)
Goodwill, net $ 16,657,653 $ 55,794,524
[1] Goodwill acquired during the year ended December 31, 2022 resulted from the acquisition of Fintech as disclosed in Note 1: Organization and business.
v3.24.1.1.u2
Schedule of fair value adjustment (Details)
Dec. 31, 2023
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
Property, plant and equipment, net. $ 21,807
Intangible asset 59,803
Current assets 7,239,547
Current liabilities (4,870,094)
Net assets acquired $ 2,451,063
v3.24.1.1.u2
Goodwill (Details Narrative) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]    
Acquisition of fair value $ 58,245,587 $ 58,392,770
Acquisition of fair value, shares 97,075,997  
Acquisition of fair value, per shares $ 0.60  
Goodwill impairment charge $ 39,136,871
Discount rate 25.05%  
Long-term growth rate 1.50%  
v3.24.1.1.u2
Property and equipment, net consist of the following: (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 73,225 $ 60,729
Less: accumulated depreciation (34,625) (21,867)
Property and equipment, net 38,600 38,862
Office Equipment [Member]    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 8,628 7,067
Computer Equipment [Member]    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 49,600 31,959
Furniture and Fixtures [Member]    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 4,824 4,501
Software and Software Development Costs [Member]    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 10,173 $ 17,202
v3.24.1.1.u2
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Abstract]    
Depreciation expenses $ 12,758 $ 7,569
v3.24.1.1.u2
Accruals and other payables consist of the following: (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Payables and Accruals [Abstract]    
Provisions and accruals [1] $ 319,939 $ 163,217
Others [2] 1,633,221 1,698,762
Balance at end of year $ 1,953,160 $ 1,861,979
[1] Provisions and accruals consists mainly of audit and accountancy fees and includes $52,000 of share options issued to directors during the year.
[2] Other payables mainly consists of client funds.
v3.24.1.1.u2
Income taxes includes the following components: (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Income tax recovery $ 165,485 $ 5,057
UNITED STATES    
Income tax recovery 55,692
Foreign [Member]    
Income tax recovery $ 109,793 $ 5,057
v3.24.1.1.u2
INCOME TAX (Details Narrative)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Income tax rate 21.00% 21.00%
Tax rate, percent 3.00% 3.00%
UNITED KINGDOM    
Income tax rate 25.00% 19.00%
MALAYSIA    
Income tax rate 24.00% 24.00%
v3.24.1.1.u2
The disaggregation of revenue of the Company by geographical region is as follows: (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Transaction fees $ 2,270,873 $ 3,023,985
Other fees 149,311 60,294
Total revenue 2,420,184 3,084,279
UNITED KINGDOM    
Transaction fees 1,983,139 2,476,385
Other fees
Total revenue 1,983,139 2,476,385
MALAYSIA    
Transaction fees 287,734 547,600
Other fees 149,311 60,294
Total revenue $ 437,045 $ 607,894
v3.24.1.1.u2
Schedule of related party transaction (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Related Party Transaction [Line Items]    
Amount of due from related parties $ 1,296,935
Amount of due from related parties $ 755,040 2,463,833
Chief Executive Officer [Member]    
Related Party Transaction [Line Items]    
Interest on loan 6.00%  
Ho Wah Genting Group Sdn Bhd [Member]    
Related Party Transaction [Line Items]    
Amount of due from related parties [1] 799,094
Amount of due from related parties [1] 25,748
HWG Fintech International Ltd [Member]    
Related Party Transaction [Line Items]    
Amount of due from related parties [1] 497,841
Grande Legacy Inc [Member]    
Related Party Transaction [Line Items]    
Amount of due from related parties [2] 266,610
Hwg Capital Inc [Member]    
Related Party Transaction [Line Items]    
Amount of due from related parties [3] 329,565
Hwg Digital Investment Bank Malaysia P L C [Member]    
Related Party Transaction [Line Items]    
Amount of due from related parties [1] 1,596,825
Aelora Sdn Bhd [Member]    
Related Party Transaction [Line Items]    
Amount of due from related parties [2] 23,933
Shalom Dodoun [Member]    
Related Party Transaction [Line Items]    
Amount of due from related parties [4]   246,900
Natalie Kastberg [Member]    
Related Party Transaction [Line Items]    
Amount of due from related parties [5] $ 1,668
[1] Dato’ Lim Hui Boon, the previous president of the Company, is the director of Ho Wah Genting Group Sdn Bhd (“HWGGSB”). Dato’ Lim Hui Boon, is directly related to Mr Lim Chun Hoo, the previous CFO and the current CEO and director of the Company.
[2] During the year ended December 31, 2022, Aelora Sdn Bhd (“ASB” and previously known as “Vitaxel Sdn Bhd”) and Vitaxel Online Mall Sdn Bhd (“VOM”), which are dormant, have been disposed as part of the restructuring transactions as disclosed in Note 1: Organization and Business.
[3] Mr Leong Yee Ming, a previous director and CEO of the Company, is a director of HWG Capital Inc. (previously known as “GrandeLife Inc.”).
[4] Mr Shalom Dodoun (“Mr Shalom”) was the previous director and CEO of the Company. The amount due to Mr Shalom as at December 31, 2023, were advances made by Mr Shalom to the Company. Mr Shalom agreed to grant the Company an unsecured Sterling term loan facility and the Company shall pay interest on the Loan at the rate of 6% per annum above Barclays Bank Rate.
[5] Ms Natalie Kastberg (“Ms Kastberg”), is a current director of Fintech. The amount due to Ms Kastberg as at December 31, 2023, were advances made by Ms Kastberg to the Company.
v3.24.1.1.u2
Schedule of officers (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Shalom Dodoun Director Chief Executive Officer Of The Company [Member]    
Related Party Transaction [Line Items]    
Amount due from director $ 287,138 $ 142,005
Richard Berman Non Executive Director Of The Company [Member]    
Related Party Transaction [Line Items]    
Amount due from director [1] $ 100,000
[1] Mr. Richard Berman (“Mr. Berman”), is a current non-executive director of the Company.
v3.24.1.1.u2
RELATED PARTY TRANSACTIONS (Details Narrative)
 12 Months Ended
Dec. 31, 2023
USD ($)
Related Party Transaction [Line Items]  
Description of debt interest-free and repayable on demand.
Officer [Member]  
Related Party Transaction [Line Items]  
Other compensation $ 100,000
Grande Legacy Inc [Member]  
Related Party Transaction [Line Items]  
Related Party Transaction, Purchases from Related Party 0
A S B [Member]  
Related Party Transaction [Line Items]  
Related Party Transaction, Purchases from Related Party $ 0
v3.24.1.1.u2
COMMITMENTS AND CONTINGENCIES (Details Narrative)
 12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Other commitments description Upon the successful uplisting of the Company to Nasdaq, Mr. Richard Berman, the non-executive director of the Company, shall be rewarded with Company’s shares, up to a maximum of 1% of the Company’s market capitalization. The number of shares to be issued shall be calculated based on the market share price (as stated on Nasdaq) on the first closing date of the Company listed on Nasdaq.
v3.24.1.1.u2
In the scenario of issuance of RCPS, the changes will be as follows: (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Cash and cash equivalents $ 3,765,959 $ 3,791,378
Total assets 21,078,344 63,825,261
Total liabilities 2,755,862 4,943,467
Total stockholders, equity 18,320,065 58,878,464
Scenario Plan 30 Percent [Member]    
Cash and cash equivalents 11,265,959 11,291,378
Total assets 28,578,344 71,325,261
Total liabilities 2,755,862 4,943,467
Total stockholders, equity 25,822,482 66,381,794
Scenario Plan 50 Percent [Member]    
Cash and cash equivalents 16,265,959 16,291,378
Total assets 33,578,344 76,325,261
Total liabilities 2,755,862 4,943,467
Total stockholders, equity 30,822,482 71,381,794
Scenario Plan 100 Percent [Member]    
Cash and cash equivalents 28,765,959 28,791,378
Total assets 46,078,344 88,825,261
Total liabilities 2,755,862 4,943,467
Total stockholders, equity $ 43,322,482 $ 83,881,794
v3.24.1.1.u2
STOCKHOLDERS’ EQUITY (Details Narrative) - $ / shares
Dec. 27, 2023
Nov. 15, 2023
Oct. 11, 2023
Dec. 31, 2023
Dec. 31, 2022
Nov. 30, 2022
Nov. 15, 2022
Jul. 21, 2022
Apr. 11, 2022
Apr. 08, 2022
Mar. 10, 2022
Dec. 31, 2021
Class of Stock [Line Items]                        
Common stock, par value (in dollars per share)       $ 0.001 $ 0.001       $ 0.001     $ 0.0001
Common stock, authorized       400,000,000 400,000,000       400,000,000     70,000,000
Common stock, outstanding       298,742,643 198,742,643         54,087,903   54,087,903
Common Stock, Shares, Issued       298,742,643 198,742,643 101,666,666 91,666,667 193,333,333 5,409,310      
Preferred stock, authorized       25,000,000 25,000,000              
Preferred stock, par value (in dollars per share)       $ 0.001 $ 0.001              
Redeemable Convertible Preferred Stock [Member]                        
Class of Stock [Line Items]                        
Preferred stock, authorized                     25,000,000  
Preferred stock, par value (in dollars per share)                     $ 0.001  
CICO Digital Solutions Limited [Member]                        
Class of Stock [Line Items]                        
Number of shares converted   100,000,000 100,000,000                  
Number of common shares increased   298,742,643                    
Number of common shares decrease 198,742,643                      
Maximum [Member]                        
Class of Stock [Line Items]                        
Shares split                 48,678,593      
Minimum [Member]                        
Class of Stock [Line Items]                        
Shares split                 5,409,310      
v3.24.1.1.u2
SUBSEQUENT EVENTS (Details Narrative) - CICO Digital Solutions Limited [Member] - shares
Jan. 30, 2024
Dec. 27, 2023
Nov. 15, 2023
Oct. 11, 2023
Subsequent Event [Line Items]        
Number of shares converted     100,000,000 100,000,000
Description of reverse stock split     10,000,000 shares, as adjusted for the 1-for-10 reverse split  
Number of common shares decrease   198,742,643    
Subsequent Event [Member]        
Subsequent Event [Line Items]        
Description of reverse stock split 19,874,265 shares, as adjusted for the 1-for-10 reverse split      
Number of common shares decrease 198,742,643      
Fintech Scion (PK) (USOTC:FINR)
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