Full Press Release Details
SUPERIOR LIVING SDN. BHD.
CONDENSED CONSOLIDATED BALANCE SHEETS
| March 31, | December 31, | |||||||
| 2020 | 2019 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash | $ | 1,206,493 | $ | 1,030,829 | ||||
| Other receivables | 33,210 | 34,672 | ||||||
| Other receivables - related parties | 219,121 | 233,942 | ||||||
| Inventories | 616,880 | 552,901 | ||||||
| Prepaid taxes | 1,206,821 | 1,181,963 | ||||||
| Prepayments and other assets | 318,267 | 484,880 | ||||||
| Total current assets | 3,600,792 | 3,519,187 | ||||||
| Other assets | ||||||||
| Property and equipment, net | 325,648 | 364,604 | ||||||
| Intangible assets, net | 6,686 | 7,592 | ||||||
| Deferred taxes asset, net | 172,250 | 234,797 | ||||||
| Total other assets | 504,584 | 606,993 | ||||||
| Total assets | $ | 4,105,376 | $ | 4,126,180 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable - related party | $ | 491,628 | $ | 520,786 | ||||
| Customer deposits | 1,600,606 | 1,632,747 | ||||||
| Other payables and accrued liabilities | 209,096 | 252,902 | ||||||
| Other payables - related parties | - | 12,104 | ||||||
| Total current liabilities | 2,301,330 | 2,418,539 | ||||||
| Total liabilities | 2,301,330 | 2,418,539 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders' equity | ||||||||
| *Ordinary shares, no par value, 9,590,598 shares issued and outstanding as of March 31, 2020 and December 31, 2019 | 2,372,008 | 2,372,008 | ||||||
| Accumulated deficit | (542,428 | ) | (740,004 | ) | ||||
| Accumulated other comprehensive (loss) income | (25,534 | ) | 75,637 | |||||
| Total shareholders' equity | 1,804,046 | 1,707,641 | ||||||
| Total liabilities and shareholders' equity | $ | 4,105,376 | $ | 4,126,180 |
to the New Companies Act 2016 effective from January 31, 2017, the concept of authorized share capital and par value has been
abolished, the Company is no longer required to state authorized share capital and par value.
accompanying notes are an integral part of these unaudited condensed financial statements.
SUPERIOR LIVING SDN. BHD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
| For the Three Months Ended | ||||||||
| March 31, | ||||||||
| 2020 | 2019 | |||||||
| Net revenues | $ | 1,241,252 | $ | 1,214,600 | ||||
| Cost of revenues | 111,489 | 203,838 | ||||||
| Gross profit | 1,129,763 | 1,010,762 | ||||||
| Operating expenses | ||||||||
| Selling expenses | 148,472 | 400,971 | ||||||
| Commission expenses | 411,266 | 601,205 | ||||||
| General and administrative expenses | 325,029 | 313,170 | ||||||
| Total operating expenses | 884,767 | 1,315,346 | ||||||
| Income (loss) from operations | 244,996 | (304,584 | ) | |||||
| Other income (expenses) | ||||||||
| Interest income | 725 | 1,160 | ||||||
| Other income (expenses), net | 2,688 | (5,933 | ) | |||||
| Total other income (expenses), net | 3,413 | (4,773 | ) | |||||
| Income (loss) before income taxes | 248,409 | (309,357 | ) | |||||
| Provision for (benefits of) income taxes | 50,833 | (57,232 | ) | |||||
| Net income (loss) | 197,576 | (252,125 | ) | |||||
| Foreign currency translation adjustment | (101,171 | ) | 2,460 | |||||
| Comprehensive income (loss) | $ | 96,405 | $ | (249,665 | ) | |||
| Earnings (loss) per share | ||||||||
| Basic and diluted | $ | 0.02 | $ | (0.17 | ) | |||
| Weighted average number of ordinary shares outstanding | ||||||||
| Basic and diluted | 9,590,598 | 1,500,000 |
accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
| For the Three Months ended March 31,2019 | ||||||||||||||||||||
| Accumulated | ||||||||||||||||||||
| Ordinary Shares | Other | |||||||||||||||||||
| Shares | Share Capital | Retained Earnings | Comprehensive Income | Total | ||||||||||||||||
| BALANCE, December 31, 2018 | 1,500,000 | $ | 394,737 | $ | 319,490 | $ | 81,108 | $ | 795,335 | |||||||||||
| Net loss | - | - | (252,125 | ) | - | (252,125 | ) | |||||||||||||
| Foreign currency translation adjustment | - | - | - | 9,555 | 9,555 | |||||||||||||||
| BALANCE, March 31, 2019 | 1,500,000 | $ | 394,737 | $ | 67,365 | $ | 90,663 | $ | 552,765 |
| For the Three Months ended March 31,2020 | ||||||||||||||||||||
| Accumulated | ||||||||||||||||||||
| Ordinary Shares | Other | |||||||||||||||||||
| Shares | Share Capital | Accumulated Deficit | Comprehensive Income | Total | ||||||||||||||||
| BALANCE, December 31, 2019 | 9,590,598 | $ | 2,372,008 | $ | (740,004 | ) | $ | 75,637 | $ | 1,707,641 | ||||||||||
| Net Income | - | - | 197,576 | - | 197,576 | |||||||||||||||
| Foreign currency translation adjustment | - | - | - | (101,171 | ) | (101,171 | ) | |||||||||||||
| BALANCE, March 31, 2020 | 9,590,598 | $ | 2,372,008 | $ | (542,428 | ) | $ | (25,534 | ) | $ | 1,804,046 |
accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
SUPERIOR LIVING SDN. BHD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the Three Months Ended | ||||||||
| March 31, | ||||||||
| 2020 | 2019 | |||||||
| Cash flows from operating activities | ||||||||
| Net income (loss) | $ | 197,576 | $ | (252,125 | ) | |||
| Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||||||||
| Depreciation | 19,820 | 21,257 | ||||||
| Amortization | 494 | 1,621 | ||||||
| Deferred taxes (benefit) provision | 50,833 | (57,232 | ) | |||||
| Loss on disposal of equipment | (739 | ) | - | |||||
| Change in operating assets and liabilities | ||||||||
| Accounts receivable | 356 | (28,520 | ) | |||||
| Other receivables | (849 | ) | - | |||||
| Inventories | (97,687 | ) | (243,106 | ) | ||||
| Prepaid taxes | (93,672 | ) | (421,370 | ) | ||||
| Prepayments and other assets | 143,509 | (49,875 | ) | |||||
| Prepayment - related party | - | 217,163 | ||||||
| Accounts payable - related party | - | 187,418 | ||||||
| Customer deposits | 60,990 | (352,708 | ) | |||||
| Other payables and accrued liabilities | (30,505 | ) | (93,034 | ) | ||||
| Other payables - related parties | (11,757 | ) | - | |||||
| Net cash provided by (used in) operating activities | 238,369 | (1,070,511 | ) | |||||
| Cash flows from investing activities | ||||||||
| Purchases of equipment | - | (760 | ) | |||||
| Net cash used in investing activities | - | (760 | ) | |||||
| Cash flows from financing activities | ||||||||
| Repayments from related parties | 1,773 | 37,244 | ||||||
| Loans from related parties | - | 485,526 | ||||||
| Net cash provided by financing activities | 1,773 | 522,770 | ||||||
| Effect of exchange rate on cash | (64,478 | ) | 18,512 | |||||
| Net change in cash | 175,664 | (529,989 | ) | |||||
| Cash, beginning of period | 1,030,829 | 1,544,525 | ||||||
| Cash, end of period | $ | 1,206,493 | $ | 1,014,536 | ||||
| Supplemental cash flows information: | ||||||||
| Income taxes paid | $ | 93,672 | $ | 123,892 | ||||
| Interest paid | $ | - | $ | - |
accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
SUPERIOR LIVING SDN. BHD.
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
- NATURE OF BUSINESS AND ORGANIZATION
Superior Living Sdn. Bhd. ("ASL" or the "Company") is a limited company incorporated on August 8, 2003,
under the laws of Malaysia.
Company engages in the direct selling marketing business in the Health and Wellness Industry. The principal activity of the Company
is to supply high-quality health and wellness products, including supplements to assist in cell metabolism, detoxification, blood
circulation, anti-aging and products designed to improve the overall health system in the body.
accompanying unaudited condensed consolidated financial statements reflect the activities of ASL and Agape S.E.A. Sdn. Bhd. ("SEA"),
a variable interest entity ("VIE") (See Note 3).
Superior Living Sdn. Bhd. is a network marketing company specializing in healthcare products and focusing on improving
people's health and wellbeing that has been in existence in Malaysia for the past 15 years.
Company's advisory services center on the "ATP Zeta Health Program", which is a health program designed to effectively
prevent diseases caused by polluted environments, unhealthy dietary intake and unhealthy lifestyles, and promotion of health.
The program aims to promote improved health and longevity in our clients through a combination of proper nutrition and advice
from skilled nutritionists and/or dieticians.
Company's ATP Zeta Health Program is a health program designed to promote health and general wellbeing also to prevent health
diseases caused by polluted environments, unhealthy dietary intake and unhealthy lifestyles. The program aims to promote improved
health and longevity in its customers through a combination of proper nutrition and advice from skilled dieticians as well as
trained members and distributors. The ATP Zeta Super Health Program consists of eight products. None of these products are owned
or produced by the Company. In the event that any of these products are no longer produced, or are otherwise unavailable, the
Company may have to devote significant effort to identifying and obtaining comparable replacement products. The eight products
that comprise the ATP Zeta Super Health Program are ATP1s Survivor Select, ATP2 Energized Mineral Concentrate, ATP3 Ionized Cal-Mag,
ATP4 Omega Blend, ATP5 BetaMaxx, AGN-Vege Fruit Fiber, AGP1-Iron and YFA-Young Formula.
Company's NERG TIQUE series aims to provide a total dermal solution for a healthy skin beginning from the
cellular level. The series is comprised of Energy Mask series, Hyaluronic Acid Serum and Mousse Facial Cleanser.
Company's BEAUNIQUE product series focuses on the research of diet's impact on modifying gene expressions to address
genetic variations and deliver a nutrigenomic solution for every individual.
- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles
generally accepted in the United States of America ("US GAAP") pursuant to the rules and regulations of the Securities
and Exchange Commission ("SEC"), and include all normal and recurring adjustments that management of the Company considers
necessary for a fair presentation of its financial position and operation results. Interim results are not necessarily indicative
of results to be expected for any other interim period or for the full year. Therefore, these statements should be read in conjunction
with the Company's audited financial statements as of and for the years ended December 31, 2019 and 2018.
unaudited condensed consolidated financial statements include the financial statements of the Company and its VIE. All transactions
and balances between the Company and its subsidiaries have been eliminated upon consolidation.
of Estimates and Assumptions
preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and
liabilities as of the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and
expenses during the periods presented. Significant accounting estimates reflected in the Company's unaudited condensed consolidated
financial statements include allowance for doubtful accounts, allowance for inventories obsolescence, useful lives of property
and equipment, useful lives of intangible assets, impairment of long-lived assets, and allowance for deferred tax assets and uncertain
tax position. Actual results could differ from these estimates.
accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments
and requires disclosure of the fair value of financial instruments held by the Company.
accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement
and enhance disclosure requirements for fair value measures. The three levels are defined as follow:
| Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. | ||
| Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. | ||
| Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. |
instruments included in current assets and current liabilities are reported in the consolidated balance sheets at face value or
cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected
realization and their current market rates of interest.
Currency Translation and Transaction
reporting currency of the Company is the U.S. dollar. The Company in Malaysia conducts its businesses in the local currency, Ringgit
Malaysia (RM), as its functional currency. Assets and liabilities are translated at the unified exchange rate as quoted by the
Federal Reserve at the end of the period. The statement of income accounts are translated at the average translation rates and
the equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated
other comprehensive income (loss). Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated
in a currency other than the functional currency are included in the results of operations as incurred.
adjustments included in accumulated other comprehensive (loss) income amounted to $(25,534) and $75,637 as of March 31, 2020 and
December 31, 2019, respectively. The balance sheet amounts, with the exception of shareholders' equity at March 31, 2020
and December 31, 2019 were translated at 4.33 RM and 4.09 RM to $1.00, respectively. The shareholders' equity accounts were
stated at their historical rate. The average translation rates applied to statement of operations and comprehensive income (loss)
accounts for the three months ended March 31, 2020 and 2019 were 4.21 RM and 4.08 RM to $1.00, respectively. Cash flows are also
translated at average translation rates for the periods, therefore, amounts reported on the statement of cash flows will not necessarily
agree with changes in the corresponding balances on the consolidated balance sheet.
are carried at cost and represent cash on hand and deposits placed with banks or other financial institutions.
consist of finished goods and are stated at the lower of cost or net realizable value using the first-in first-out method. When
appropriate, impairment to inventories are recorded to write down the cost of inventories to their net realizable value.
taxes include (i) prepaid income taxes that will either be refundable or utilized to offset future income tax; and (ii) goods
and service tax ("GST") to be refundable.
and other assets are cash deposited or advanced to outside vendors and service providers for future inventory purchases and future
services to be provided. This amount is refundable and bears no interest. For any prepayments determined by management that such
advances will not be utilized, collected or refunded, the Company will recognize an allowance account to reserve such balances.
Management reviews its advances to suppliers on a regular basis to determine if the allowance is adequate, and adjusts the allowance
when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined
that the likelihood of collection is not probable. The Company's management continues to evaluate the reasonableness of
the valuation allowance policy and update it if necessary. As of March 31, 2020 and December 31, 2019, there is no allowance for
the doubtful accounts.
and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the
estimated useful lives of the assets with no residual value. The estimated useful lives are as follows: