|g.||Fair Value Measurements|
Fair value is defined as the price that
would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date in the principal or most advantageous market. The Company uses a fair value hierarchy that has three levels of
inputs, both observable and unobservable, with use of the lowest possible level of input to determine fair value.
Level 1 - quoted prices (unadjusted)
in active markets for identical assets or liabilities;
Level 2 - observable inputs other than
Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities
in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable;
Level 3 - assets and liabilities whose
significant value drivers are unobservable.
As of reporting period, the Company
did not have any assets or liabilities that were measured at fair value on a recurring or non-recurring basis.
Observable inputs are based on market
data obtained from independent sources, while unobservable inputs are based on the Companys market assumptions. Unobservable
inputs require significant management judgment or estimation. In some cases, the inputs used to measure an asset or liability may
fall into different levels of the fair value hierarchy. In those instances, the fair value measurement is required to be classified
using the lowest level of input that is significant to the fair value measurement. Such determination requires significant management
Financial instruments, which include
cash, accounts payable, and loans and borrowings, were estimated to approximate their carrying values due to the immediate or short-term
maturity of these financial instruments. The fair value of amounts due to related parties are not practical to estimate, due to
the related party nature of the underlying transactions. The financial risk to the Companys operations arises from fluctuations
in foreign exchange rates and the degree of volatility of these rates. Currently, the Company does not use derivative instruments
to reduce its exposure to foreign currency risk.