Exhibit 2

 

INDEX TO FINANCIAL STATEMENTS

 

	Page
Financial Statements
Report of Independent Registered Public Accounting Firm	F-2
Consolidated Balance Sheets as of March 31, 2019 and 2018	F-3
Consolidated Statements of Operations and Comprehensive Loss for the years ended March 31, 2019 and 2018	F-4
Consolidated Statements of Changes in Stockholders’ Equity for the years ended March 31, 2019 and 2018	F-5
Consolidated Statements of Cash Flows for the years ended March 31, 2019 and 2018	F-6
Notes to Consolidated Financial Statements	F-7 - F-15

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

TOTAL ASIA ASSOCIATES PLT (LLP0016837-LCA & AF002128) A Firm registered with US PCAOB and Malaysian MIA   C-3-1, Megan Avenue 1, 189 Off Jalan Tun Razak, 50400 Kuala Lumpur, Malaysia. Tel: (603) 2733 9989

 

To the Shareholders and Board of Directors of Free Share X-Change Limited

 

OMC Offices, Babrow Building,

The Valley, Al – 2640,

Anguilla, BWI.

 

Opinion on the Financial Statements

 

We have audited the accompanying balance sheet of Free Share X-Change Limited (the ‘Company’) as of March 31, 2019 and 2018, and the related statements of income, stockholders’ equity, and cash flows for the year ended of March 31, 2019 and 2018, 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 March 31, 2019 and 2018, and the results of its operations and its cash flows for the year ended March 31, 2019 and 2018, in conformity with accounting principles generally accepted in the United States of America.

 

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. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall consolidated financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.

 

We have served as the Company’s auditor since 2018.

 

/s/ Total Asia Associates PLT
TOTAL ASIA ASSOCIATES PLT
Kuala Lumpur, Malaysia
February 18, 2020

 

 

FREE SHARE X-CHANGE LIMITED (ANGUILLA)

CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31, 2019 and 2018

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Audited)

 

		As of March 31,
		2019				2018
ASSETS
CURRENT ASSETS
Cash in hand and bank		$	8,188			$	2,097
Other receivable and prepayment			2,603				-
Account receivable			672				-
Total Current Assets			11,463				2,097
NON-CURRENT ASSETS
Plant and Equipment, net			42,118				-
			42,118				-
TOTAL ASSETS		$	53,581			$	2,097
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Other payables and accrued liabilities		$	151,207			$
Deferred revenue			86,250				-
Total Current Liabilities		$	237,457			$	-
TOTAL LIABILITIES		$	237,457			$	-
STOCKHOLDERS’ EQUITY
Share capital		$	15			$	1
Accumulated other comprehensive income			3,544				-
Accumulated (losses)/ gain			(187,435	)			2,096
TOTAL STOCKHOLDERS’ (DEFICIT)/EQUITY		$	(183,876	)		$	2,097
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	53,581			$	2,097

 

See accompanying notes to consolidated financial statements.

 

 

FREE SHARE X-CHANGE LIMITED (ANGUILLA)

CONDENSED CONSOLIDATED STATEMENT OF OPERATION AND COMPREHENSIVE INCOME

For the years ended March 31, 2019 and 2018

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Audited)

 

		For the year ended				For the year ended
		March 31, 2019				March 31, 2018
REVENUE		$	265,430			$	-
COST OF REVENUE			(43,132	)			-
GROSS PROFIT			222,298				-
OTHER INCOME			2,852				97
GENERAL AND ADMINISTRATIVE EXPENSES			(414,681	)			(366	)
LOSS BEFORE INCOME TAX			(189,531	)			(269	)
INCOME TAX PROVISION			-				-
NET LOSS			(189,531	)			(269	)
OTHER COMPREHENSIVE INCOME:
-Foreign exchange translation adjustment			3,544				-
TOTAL COMPREHENSIVE LOSS			(185,987	)			(269	)

 

See accompanying notes to condensed consolidated financial statements.

 

 

FREE SHARE X-CHANGE LIMITED (ANGUILLA)

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

For the years ended March 31, 2019 and 2018

(Currency expressed in United States Dollars (“US$”))

(Audited)

 

		COMMON STOCK												ACCUMULATED
		Number of Shares				Amount				ACCUMULATED PROFIT/(LOSSES)				OTHER COMPREHENSIVE INCOME/(LOSS)				TOTAL EQUITY
Balance as of April 1, 2017			1			$	1			$	2,365			$	-			$	2,366
Net loss for the year			-				-			$	(269	)			-			$	(269	)
Balance as of March 31, 2018			1			$	1			$	2,096			$	-			$	2,097
Increase in share capital			100				14				-				-				14
Other comprehensive income			-				-				-				3,544			$	3,544
Net loss for the year			-				-			$	(189,531	)			-			$	(189,531	)
Balance as of March 31, 2019			101			$	15			$	(187,435	)		$	3,544			$	(183,876	)

 

See accompanying notes to condensed consolidated financial statements.

 

 

FREE SHARE X-CHANGE LIMITED (ANGUILLA)

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the years ended March 31, 2019 and 2018

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Audited)

 

		For the year ended				For the year ended
		March 31, 2019				March 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss		$	(189,531	)		$	(2,380)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation			5,500				-
Changes in operating assets and liabilities:
Other receivable and prepayment			(2,603	)			-
Other payables and accrued liabilities			151,207				2,110
Account receivable			(672	)			-
Deferred revenue			86,250				-
Net cash generated from/(used in) operating activities			50,151				(270	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of plant and equipment			(47,618	)			-
Net cash used in investing activities			(47,618	)			-
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of share capital			14				1
Net cash provided by financing activities			14				1
Effect of exchange rate changes on cash and cash equivalents			3,544				2,366
Net increase in cash and cash equivalents			6,091				2,097
Cash and cash equivalents, beginning of year			2,097				-
CASH AND CASH EQUIVALENTS, END OF YEAR		$	8,188			$	2,097

 

See accompanying notes to condensed consolidated financial statements.

 

 

FREE SHARE X-CHANGE LIMITED (ANGUILLA)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the years ended March 31, 2019 and 2018

(Currency expressed in United States Dollars (“US$”), except for number of shares)

 

1.	DESCRIPTION OF BUSINESS AND ORGANIZATION

 

Free Share X-Change Limited is an Anguilla limited liability company which incorporated on December 17, 2013. For purposes of consolidated financial statement presentation, Free Share X-Change Limited and its subsidiary are herein referred to as “the Company” or “we”. The Company is a business whose planned principal operations are to provide software development, Information technology consultancy and managed services.

 

On September 1, 2018, the Company acquired 100% interest in Vtrade Technology Sdn Bhd, a private limited liability company incorporated in Malaysia, resulting in the latter becoming a wholly-owned subsidiary company of the Company.

 

Details of the Company’s subsidiary:

 

	Company name		Place and date of incorporation		Particulars of issued capital		Principal activities
1.	Vtrade Technology Sdn Bhd		Malaysia, July 12, 2018		2 shares of ordinary share of MYR 1 each		Software development, Information technology consultancy and managed services

 

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of presentation

 

The accompanying condensed consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”).

 

Basis of consolidation

 

The condensed consolidated financial statements include the accounts of the Company and its subsidiary. All inter-company accounts and transactions have been eliminated upon consolidation.

 

Use of estimates

 

Management uses estimates and assumptions in preparing these consolidated financial statements in accordance with US GAAP. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities in the balance sheet, and the reported revenue and expenses during the periods reported. Actual results may differ from these estimates.

 

Revenue recognition

 

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

 

The Company derives its revenue from provision of software development, Information technology consultancy and managed services. The services are billed on a fixed-fee basis.

 

Going Concern

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying financial statements, For the year ended March 31, 2019, the Company incurred a net loss of $189,531 and has generated revenue of $265,430. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date that the financial statements are issued. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

The Company’s ability to continue as a going concern is dependent upon improving its profitability and the continuing financial support from its shareholders. Management believes the existing shareholders or external financing will provide the additional cash to meet the Company’s obligations as they become due. No assurance can be given that any future financing, if needed, will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, if needed, it may contain undue restrictions on its operations, in the case of debt financing, or cause substantial dilution for its stock holders, in the case of equity financing.

 

 

FREE SHARE X-CHANGE LIMITED (ANGUILLA)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the years ended March 31, 2019 and 2018

(Currency expressed in United States Dollars (“US$”), except for number of shares)

 

Cost of revenue

 

Cost of revenue includes the cost of software development and related services.

 

Cash and cash equivalents

 

The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents.

 

Plant and equipment

 

Plant and equipment are stated at cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated on straight line basis to write off the cost of plant and equipment over their expected useful lives at the following annual rates:

 

Computer hardware		33%
Computer software		20%

 

Expenditures for maintenance and repairs are expenses as incurred.

 

 

FREE SHARE X-CHANGE LIMITED (ANGUILLA)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the years ended March 31, 2019 and 2018

(Currency expressed in United States Dollars (“US$”), except for number of shares)

 

Foreign currencies translation

 

Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the Condensed Consolidated Statements of Operations and Comprehensive Income

 

The reporting currency of the Company is United States Dollars (“US$”) and the accompanying financial statements have been expressed in US$. In addition, the Company’s subsidiary in Malaysia maintains their books and record in their local currency, Ringgits Malaysia (“RM”) which is functional currency as being the primary currency of the economic environment in which the entity operates.

 

In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiary are recorded as a separate component of accumulated other comprehensive income within the statements of stockholders’ equity.

 

Translation of amounts from RM into US$1 and CNY into US$ 1 has been made at the following exchange rates for the respective periods:

 

		As of and for the year ended
		March 31, 2019
Year-end RM : US$1 exchange rate			4.0828
Year-average RM : US$1 exchange rate			4.0758
Year-end RM : US$1 exchange rate			6.7114
Year-average RM : US$1 exchange rate			6.7125

 

Source of currency rate: https://www.x-rates.com/

 

Fair value of financial instruments

 

The carrying value of the Company’s financial instruments: cash and cash equivalents, and accounts payable and approximate their fair values because of the short-term nature of these financial instruments.

 

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

 

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

 

 

FREE SHARE X-CHANGE LIMITED (ANGUILLA)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the years ended March 31, 2019 and 2018

(Currency expressed in United States Dollars (“US$”), except for number of shares)

 

Recent accounting pronouncements

 

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of such any pronouncements may be expected to cause a material impact on its financial condition or the results of its operations, as follow:

 

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. In August 2015, the FASB issued an Accounting Standards Update to defer by one year the effective dates of its new revenue recognition standard until annual reporting periods beginning after December 15, 2017 (2018 for calendar-year public entities) and interim periods therein. Management is currently assessing the impact of the adoption of ASU 2014-09 and has not determined the effect of the standard on our ongoing financial reporting.

 

In February 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842). Under the new guidance, lessees will be required recognize the following for all leases (with the exception of short-term leases) at the commencement date: 1) A lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and 2) A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those years. The Company is evaluating this ASU and has not determined the effect of this standard on its ongoing financial reporting.

 

In September 2017, the FASB has issued ASU No. 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments.” The amendments in ASU No. 2017-13 amends the early adoption date option for certain companies related to the adoption of ASU No. 2014-09 and ASU No. 2016-02. Both of the below entities may still adopt using the public company adoption guidance in the related ASUs, as amended. The effective date is the same as the effective date and transition requirements for the amendments for ASU 2014-09 and ASU 2016-02.

 

In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business”, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This amendment was effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The adoption of ASU No. 2017-01 did not have a material impact on the Company’s financial position, results of operations and liquidity.

 

In September 2017, the FASB has issued ASU No. 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments.” The amendments in ASU No. 2017-13 amends the early adoption date option for certain companies related to the adoption of ASU No. 2014-09 and ASU No. 2016-02. Both of the below entities may still adopt using the public company adoption guidance in the related ASUs, as amended. The effective date is the same as the effective date and transition requirements for the amendments for ASU 2014-09 and ASU 2016-02.

 

 

FREE SHARE X-CHANGE LIMITED (ANGUILLA)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the years ended March 31, 2019 and 2018

(Currency expressed in United States Dollars (“US$”), except for number of shares)

 

In February 2018, the FASB has issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220), which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information in financial statement. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company has analyzed the consequences of such adoption and has not determined the effect of this standard on its ongoing financial reporting.

 

In August 2018, the FASB has issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements of Fair Value Measurement. This amendment modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in the Concepts Statement, including the consideration of costs and benefits, with the primary purpose to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by US GAAP. The amendments in this update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.

 

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.

 

Off-Balance Sheet Arrangements

 

As of March 31, 2019, we have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our stockholders.

 

 

FREE SHARE X-CHANGE LIMITED (ANGUILLA)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the years ended March 31, 2019 and 2018

(Currency expressed in United States Dollars (“US$”), except for number of shares)

 

3.	PLANT AND EQUIPMENT

 

		As of				As of
		March 31, 2019				March 31, 2018
Computer software and hardware			47,618				-
Accumulated depreciation			(5,500	)			-
Plant and equipment, net			42,118				-

 

Depreciation expense for the year ended March 31, 2019 were $5,500, respectively. There were no depreciation expenses for the year ended March 31, 2018.

 

4.	SHARE CAPITAL

 

Common Stock

 

On December 17, 2013, the founder of the Company, Mr. Loke Che Chan, Gilbert subscribed 1 share of common stock of the Company at a par value of $0.14 per share for the Company’s initial working capital.

 

On August 7, 2018, Mr. Chai Kok Leong purchased 50 shares of common stock of the Company at a par value of $0.14 per share for the Company’s initial working capital. On the same day, Mr. Joson Yeo Hung Kwang also purchased 50 shares of common stock of the Company at a par value of $0.14 per share for the Company’s initial working capital.

 

 

FREE SHARE X-CHANGE LIMITED (ANGUILLA)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the years ended March 31, 2019 and 2018

(Currency expressed in United States Dollars (“US$”), except for number of shares)

 

5.	OTHER PAYABLES AND ACCRUED LIABILITIES

 

		As of				As of
		March 31, 2019				March 31, 2018
Accrued professional fee			19,966				-
Others accrued fee			19,866				-
Other payable			111,375				-
Total other payable and accrued liabilities			151,207				-

 

As of March 31, 2019, other payable of $111,375 represents advance receipt from non-trade third party for working capital. The amount due are unsecured, interest free, with no fixed repayment term.

 

6.

INCOME TAXES

 

For the year ended March 31, 2019, the local (United States) and foreign components of income/(loss) before income taxes were comprised of the following:

 

		For the year ended				For the year ended
		March 31, 2019				March 31, 2018
Tax jurisdictions from:
-Local		$	-			$	-
-Foreign, representing
- Malaysia			(335,346	)			-
-Anguilla			145,815				(269	)
Loss before income tax		$	(189,531	)		$	(269	)

 

 

FREE SHARE X-CHANGE LIMITED (ANGUILLA)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the years ended March 31, 2019 and 2018

(Currency expressed in United States Dollars (“US$”), except for number of shares)

 

6.	INCOME TAXES (continue)

 

The provision for income taxes consisted of the following:

 

			For the year ended				For the year ended
			March 31, 2019				March 31, 2018
Current:
-Local			-			$	-
-Foreign			-				-
Deferred:
-Local			-				-
-Foreign			-				-
Income tax expense			-			$	-

 

The effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. The Company has subsidiary that operate in Malaysia that is subject to taxes in the jurisdictions in which it operates, as follows:

 

Anguilla

 

Under the current laws of the Anguilla, Free Share X-Change Limited is registered as an international business company which governs by the International Business Companies Act of Anguilla and there is no income tax charged in Anguilla.

 

Malaysia

 

Vtrade Technology Sdn Bhd is subject to Malaysia Corporate Tax, which is charged at the statutory income rate range from 18% to 24% on its assessable income.

 

 

FREE SHARE X-CHANGE LIMITED (ANGUILLA)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the years ended March 31, 2019 and 2018

(Currency expressed in United States Dollars (“US$”), except for number of shares)

 

7.	DEFFERED REVENUE

 

For service contracts where the performance obligation is not completed, deferred revenue is recorded for any payments received in advance of the performance obligation

 

Deferred revenue at March 31, 2019 and 2018, is classified as liabilities and totalled as follows:

 

		As of				As of
		March 31, 2019				March 31, 2018
Deferred Revenue		$	86,250			$	-
		$	86,250			$	-

 

Changes in deferred revenue were as follows at March 31, 2019 and 2018:

 

		For the year ended				For the year ended
		March 31, 2019				March 31, 2018
Advance receipt of services fee			105,500				-
Performance obligation satisfied			(19,250	)			-
Deferred revenue, end of the period		$	86,250			$	-

 

8.	SUBSEQUENT EVENTS

 

The Company has evaluated subsequent events that occurred after March 31, 2019 up through the date of February 16, 2020, the Company issued audited consolidated financial statements in accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued. During this period, there was no subsequent event that required recognition or disclosure.