0001213900-19-023387.txt : 20191114 0001213900-19-023387.hdr.sgml : 20191114 20191114122808 ACCESSION NUMBER: 0001213900-19-023387 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 66 CONFORMED PERIOD OF REPORT: 20190930 FILED AS OF DATE: 20191114 DATE AS OF CHANGE: 20191114 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Heyu Biological Technology Corp CENTRAL INDEX KEY: 0001086303 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 870627910 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-26731 FILM NUMBER: 191218249 BUSINESS ADDRESS: STREET 1: 4TH FLOOR, NO.10 BUILDING, XINGLIN BAY STREET 2: BUSINESS OPERATION CENTER JIMEI DISTRICT CITY: XIAMEN CITY, FUJIAN PROVINCE STATE: F4 ZIP: 361022 BUSINESS PHONE: 86 158 5924 0902 MAIL ADDRESS: STREET 1: 4TH FLOOR, NO.10 BUILDING, XINGLIN BAY STREET 2: BUSINESS OPERATION CENTER JIMEI DISTRICT CITY: XIAMEN CITY, FUJIAN PROVINCE STATE: F4 ZIP: 361022 FORMER COMPANY: FORMER CONFORMED NAME: PACIFIC WEBWORKS INC DATE OF NAME CHANGE: 19990715 10-Q 1 f10q0919_heyubiological.htm QUARTERLY REPORT

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

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

 

For the quarterly period ended September 30, 2019

 

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 000-26731

 

HEYU BIOLOGICAL TECHNOLOGY CORPORATION

(Exact name of registrant as specified in its charter)

 

Nevada   87-0627910

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

Room 1901, Baotuo Building,

617 Sishui Street,

Huli District, Xiamen City,

Fujian Province, China

  361009
(Address of principal executive offices)   (Zip Code)

 

(86) 158 5924 0902

(Telephone number, including area code)

 

4th Floor, No. 10 Building,

Xinglin Bay Business Operation Center,

Jimei District, Xiamen City,

Fujian Province, China

(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   None   None

 

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 last 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 such files). Yes ☒ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer, “accelerated filer,” “smaller reporting company,” and “emerging growth 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 is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 1,032,466,000 shares as of November 12, 2019.

 

 

 

 

 

TABLE OF CONTENTS 

Index to Form 10-Q

 

    Page  
Part I
 
FINANCIAL INFORMATION
     
Item 1. Financial Statements 1
     
  Condensed Consolidated Balance Sheets (Unaudited) 1
     
  Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) 2
     
  Condensed Consolidated Statement of Cash Flows (Unaudited) 3
     
  Condensed Consolidated Statements of Stockholders’ Deficit (Unaudited) 4
     
  Notes to Condensed Consolidated Financial Statements (Unaudited)
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 14 
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 17
     
Item 4. Controls and Procedures 17
     
Part II
 
OTHER INFORMATION
     
Item 1. Legal Proceedings 18 
     
Item 1A. Risk Factors 18
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 18
     
Item 3. Defaults Upon Senior Securities 18
     
Item 4. Mine Safety Disclosures 18
     
Item 5. Other Information 18
     
Item 6. Exhibits 19

 

i

 

 

FORWARD LOOKING STATEMENTS

 

This Quarterly Report on Form 10-Q, Financial Statements and Notes to Financial Statements contain forward-looking statements that discuss, among other things, future expectations and projections regarding future developments, operations and financial conditions. Forward-looking statements may appear throughout this report and other documents we file with the Securities and Exchange Commission (SEC), including without limitation, the following sections: Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Quarterly Report on Form 10-Q.

 

Forward-looking statements generally can be identified by words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “will be,” “will continue,” “may,” “could,” “will likely result,” and similar expressions. These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause our actual results to differ materially from those reflected in the forward-looking statements. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

 

ii

 

 

PART I - FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

Heyu Biological Technology Corporation

(Formerly known as Pacific Webworks, Inc.)

Consolidated Balance Sheets

(Unaudited)

 

   September 30,   December 31, 
   2019   2018 
         
ASSETS        
         
Current Assets          
Cash and cash equivalents  $452,318   $37,555 
Other receivables   24,566    21,324 
Advances to suppliers   81,431    - 
Inventory   311,134    - 
Total current assets   869,449    58,879 
           
Non-current Assets          
Operating lease right-of-use asset   209,587    - 
Total non-current assets   209,587    - 
           
Total Assets  $1,079,036   $58,879 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
           
Current Liabilities          
Accounts payable and accrued expenses  $111,718   $16,628 
Advances from customers   420,406    - 
Income tax and other taxes payable   22    23 
Operating lease liability - current portion   66,473    - 
Related party payables   957,409    279,464 
Total current liabilities   1,556,028    296,115 
           
Noncurrent liabilities          
Operating lease liability   143,325    - 
Total noncurrent liabilities   143,325    - 
           
Total Liabilities  $1,699,353   $296,115 
           
Stockholders’ Deficit          
           
Common stock ($0.001 par value, 2,000,000,000 shares authorized, 1,032,466,000 and 1,141,472,861 shares issued and outstanding respectively as of September 30, 2019 and December 31, 2018, respectively)   1,032,466    1,141,473 
Shares to be cancelled   -    (109,007)
Additional paid-in capital   17,149,050    17,149,050 
Accumulated other comprehensive income   16,945    2,567 
Accumulated deficit   (18,778,535)   (18,421,319)
Stockholders’ equity - HYBT and Subsidiaries   (580,074)   (237,236)
Noncontrolling interests in subsidiaries   (40,243)   - 
Total stockholders’ deficit   (620,317)   (237,236)
           
Total Liabilities and Stockholders’ Deficit  $1,079,036   $58,879 

 

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

 

1

 

 

Heyu Biological Technology Corporation

(Formerly known as Pacific Webworks, Inc.)

Consolidated Statements of Operations and Comprehensive Income

(Unaudited)

 

   For the Three Months Ended
September 30,
   For the Nine Months Ended
September 30,
 
   2019   2018   2019   2018 
                 
Revenue, net   $7,387   $-   $57,317   $- 
                     
Cost of Revenue   $3,666   $-   $31,938   $- 
                     
Gross Profit   $3,721   $-   $25,379   $- 
                     
Operating expenses                     
Selling expenses   5,992    -    7,377    - 
Administrative expenses    202,505    125,957    412,207    147,797 
Total operating expenses    208,497    125,957    419,584      
                     
Loss on operations    (204,776)   (125,957)   (394,205)   (147,797)
                     
Other Income(Expenses)    (370)   -    (1,708)     
                     
Loss on operations before income taxes    (205,146)   (125,957)   (395,913)   (147,797)
                     
Income tax expense    -    -         - 
                     
Net Loss   $(205,146)  $(125,957)  $(395,913)  $(147,797)
Loss attributable to noncontrolling interests    (20,455)   -    (38,697)   - 
Net loss attributable to HYBT shareholders    (184,691)   (125,957)   (357,216)   (147,797)
                     
Other Comprehensive Income                     
Foreign currency translation adjustment    12,506    -    15,924    - 
Total Comprehensive Loss   $(172,185)  $(125,957)  $(341,292)  $(147,797)
Total comprehensive income attributable to noncontrolling interests   (1,320)   -    (1,546)   - 
Total comprehensive loss attributable to HYBT shareholders   (173,505)   (125,957)   (342,838)   (147,797)
                     
Net loss per share - basic and diluted   $(0.00)  $(0.00)  $(0.00)  $(0.00)
                     
Weighted average shares - basic and diluted    1,019,289,346    1,032,266,000    1,660,239,731    636,661,604 

 

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

 

2

 

  

Heyu Biological Technology Corporation

(Formerly known as Pacific Webworks, Inc.)

Consolidated Statements of Cash Flows

(Unaudited)

    For the Nine Months Ended
September 30,
 
    2019       2018  
                 
CASH FLOWS FROM OPERATING ACTIVITIES              
Net Loss   $ (395,913 )   $ (147,797 )
Adjustments to reconcile net loss to net cash used in operating activities:                
Change in assets and liabilities                
Other receivables     (3,242 )     -  
Advances to suppliers     (81,431 )     -  
Inventory     (311,134 )     -  
Operating lease right-of-use asset     (209,587 )     -  
Accounts payable and accrued liabilities     95,090       (9,677 )
Advances from customers     420,406       -  
Income tax and other taxes payable     (1 )     -  
Lease liability     209,798       -  
Net cash used from operating activities     (276,014 )     (157,474 )
                 
CASH FLOWS FROM INVESTING ACTIVITIES     -       -  
                 
CASH FLOWS FROM FINANCING ACTIVITIES                
Proceeds from related party lending     677,945       157,474  
Net cash used in financing activities     677,945       157,474  
                 
Effect of exchange rate changes on cash     12,832       -  
                 
NET INCREASE IN CASH AND CASH EQUIVALENTS     414,763       -  
                 
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD     37,555       -  
                 
CASH AND CASH EQUIVALENTS AT END OF PERIOD   $ 452,318     $ -  
                 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION                
Cash paid for interest   $ -     $ -  
Cash paid for income tax   $ -     $ -  
                 
Non-cash activities                
Shares issued for repayment of debt           $ 10,000  
Related party forgiveness of debt           $ 52,087  

  

The accompanying notes are an integral part of these condensed consolidated financial statements

 

3

 

 

Heyu Biological Technology Corporation

(Formerly known as Pacific Webworks, Inc.)

Condensed Consolidated Statements of Stockholders’ Deficit

(Unaudited)

 

   Heyu Biological Shareholders’ Equity 
   Common Stock       Accumulated             
   Number of shares   Par value   Shares to be cancelled   Additional Paid in Capital   Other Comprehensive Income   Accumulated Deficit   Non - controlling Interest   Total 
Balance at January 1, 2018   150,642,240    150,642    -    17,968,787    -    (18,173,542)   -    (54,113)
                                       - 
1 for 464 reverse split   (150,317,580)   (150,318)   -    150,318    -    -    -    - 
1 for 100 split   32,141,340    32,141    -    (32,141)   -    -    -    - 
Common stock issued April 13, 2018   1,000,000,000    1,000,000         (990,000)                  10,000 
Waiver of payable to ex-shareholder                  52,087                   52,087 
Loss for the period   -    -       -    -       -    (147,797)   -    (147,797)
                                                
Balance at September 30, 2018   1,032,466,000   $1,032,466   $-   $17,149,050   $-   $(18,321,339)  $-   $(139,823)

 

   Common Stock       Accumulated             
   Number of shares   Par value   Shares to be cancelled   Additional Paid in Capital   Other Comprehensive Income   Accumulated Deficit   Non - controlling Interest   Total 
Balance at January 1, 2019   1,141,472,861    1,141,473    (109,007)   17,149,050    2,567    (18,421,319)   -    (237,236)
                                         
Shares cancelled March 20, 2019   (109,006,861)   (109,007)   109,007    -    -    -    -    - 
Foreign currency translation adjustment   -    -    -    -    14,378    -    (1,546)   12,832 
Loss for the period   -    -    -    -    -    (357,216)   (38,697)   (395,913)
                                         
Balance at September 30, 2019   1,032,466,000   $1,032,466   $-   $17,149,050   $16,945   $(18,778,535)  $(40,243)  $(620,317)

  

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

  

4

 

 

Heyu Biological Technology Corporation

(Formerly known as Pacific Webworks, Inc.)

Notes to Condensed Consolidated Financial Statements

(Unaudited)

 

NOTE 1 – THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES

 

Heyu Biological Technology Corporation (the “Company”) was incorporated in the state of Nevada on May 18, 1987, as Asphalt Associates, Inc. and changed its name to Pacific WebWorks in January 1999. From 1999 to 2016 the Company engaged in the development and distribution of web tools software, electronic business storefront hosting, and Internet payment systems for individuals and small to mid-sized businesses. On February 23, 2016, the Company filed a voluntary petition for bankruptcy in the U.S. Bankruptcy Court for the District of Utah, and soon afterwards ceased its business activities. On August 19, 2016 the Company proposed a Plan of Liquidation and on November 28, 2016, the Court entered an order confirming the Plan of Liquidation and establishing a Liquidating Trust. On December 28, 2016, all assets and liabilities of the Company were transferred to the Liquidating Trust.

 

On April 18, 2018, the Company entered into a Share Purchase Agreement with Mr. Ban Siong Ang and Mr. Dan Masters, pursuant to which Mr. Ang acquired 1,021,051,700 shares, representing 98.91% of the issued and outstanding shares of common stock of the Company (“Common Stock”) from Mr. Masters for an aggregate purchase price of $335,000 (the “Share Purchase”). As a result of the Share Purchase Agreement, the Company accepted the resignation of Dan Masters, as the Company’s President, Chief Executive Officer, Chief Financial Officer, Secretary and Chairman of the Board. This resignation was given in connection with the closing of the Share Purchase and was not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies, or practices. Additionally, all debt due to Mr. Masters from the Company was cancelled as of the closing of the Share Purchase and recognized as contributed capital.

 

On April 18, 2018, to fill the vacancies created by Mr. Masters’s resignations, Ban Siong Ang and Hung Seng Tan were elected as the directors of the Company. Mr. Ang was appointed as President, Chief Executive Officer, and Chairman of the Board. Mr. Tan was appointed as Executive Director of the Company. Ms. Wendy Wei Li was appointed as Chief Financial Officer.

 

On July 3, 2018, the Company changed its name to Heyu Biological Technology Corporation, with a new ticker symbol, HYBT.

 

During 2018, the Company established the following subsidiaries: (1) HP Technology Limited, a British Virgin Islands business company incorporated on September 20, 2018 and (2) Heyu Healthcare Technology Limited, a Hong Kong company incorporated on March 29, 2018. Further, on November 5, 2018, the Company acquired the following subsidiary: Jiashierle (Xiamen) Healthcare Technology Co., Ltd. (“JSEL”), a limited liability company incorporated under the laws of the People’s Republic of China (the “PRC”) on November 16, 2017.

 

On January 17, 2019, JSEL entered into a Share Transfer Agreement (the “Share Transfer Agreement”) with Mr. Yu Xu (“Mr. Xu”), an individual with an address at No. 68 Chengde South Road, Qingpu District, Huaian City, Jiangsu Province, the PRC, and who owned 90% of the equity interests of Shanghai Kangzi Medical Technology Co., Ltd., a limited liability company organized under the laws of the PRC (“Kangzi”). JSEL received 60% of the outstanding equity interest of Kangzi from Mr. Xu for the purpose of developing a joint venture in the business of selling medical equipment. It was the parties’ intention that JSEL would fund the operations of Kangzi in proportion to its equity interest in Kangzi. At the time of the share transfer, Kangzi owned no assets and conducted no business operation of its own.

 

5

 

 

In March 2019, the Company entered into a Raspberry Purchase Agreement and a Raspberry Juice Processing Agreement with Luoyang Ditiantai Agricultural Development Co., Ltd. (“Ditiantai”). Pursuant to these two agreements, the Company purchased six tons of raspberry from Ditiantai, which were processed by Ditiantai into raspberry juice and delivered to the Company. The Company then sold the raspberry juice to a corporate buyer and five individual buyers. The Company, however, does not plan to engage in the business of selling raspberry juice in the long term.

 

Since the beginning of 2019, Mr. Xu has led the core research and development team of Kangzi to develop and manufacture a new medical product, the Submillimeter Wave (Terahertz) Quantized Space Therapy Chamber (the “Chamber”). Utilizing submillimeter waves, the Chamber is a medical equipment designed to treat cancer through cold nuclear fusion caused by cosmic ray muons in an enclosed chamber. Specifically, we believe that exposure to an appropriate amount of submillimeter waves could accelerate the generation of a large number of cosmic ray muons inside the human body and that such cosmic ray muons could further facilitate cold nuclear fusion, which could reverse the cancering process through which selenium is converted into nickel inside cells.

 

The team consists of researchers whom have years of extensive experience in medicine and physics. The lead scientist of the team, Mr. Xu, had served as the deputy chief engineer of the New Energy Base of the National Defense-Science and Technology Commission in 1995, as the chairman and chief scientist of Shanghai Guangcon New Energy Technology Co., Ltd. from 2011 to 2019, and the director of Shanghai Hengbian New Energy Research Institute from 2003 to 2008. In 2012, Mr. Xu was rewarded the “Harmony-Person of the Year in China” at the “2011 Harmony China Annual Summit” in Beijing and recognized as “Leaping China: One of the Most Influential People of the Year in 2011” by China International Economic and Technical Cooperation Promotion Association, China Elite Culture Promotion Association, and China Outstanding Chinese Merchants Association. In 2013, the Organizing Committee of Boau Forum on Asian SME Development awarded Mr. Xu “2013 China Economic Outstanding Contribution Award.”

 

Pursuant to the terms of the Share Transfer Agreement entered into by JSEL and Kangzi on January 17, 2019, JSEL has the right to monitor and manage all aspects of operation of Kangzi, including its research and development activities relating to the Chamber. As the development of the Chamber enters its final stage at Kangzi, JSEL started accepting pre-orders for the Chamber in September.

 

Basis of Presentation

 

The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation.

 

6

 

 

The condensed consolidated financial statements of the Company as of and for the three and nine months ended September 30, 2019 and 2018 are unaudited. In the opinion of management, all adjustments (including normal recurring adjustments) that have been made are necessary to fairly present the financial position of the Company as of September 30, 2019, the results of its operations for the three and nine months ended September 30, 2019 and 2018, and its cash flows for the nine months ended September 30, 2019 and 2018. Operating results for the interim periods presented are not necessarily indicative of the results to be expected for a full fiscal year. The balance sheet as of December 31, 2018 has been derived from the Company’s audited financial statements included in the Form 10-K for the year ended December 31, 2018.

 

The statements and related notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the financial statements and other information included in the Company’s Annual Report on Form 10-K as filed with the SEC for the fiscal year ended December 31, 2018. 

 

As of September 30, 2019, the details of the consolidating subsidiaries are as follows:

 

Name of Company  Place of
incorporation
  Attributable
equity
interest %
 
HP Technology Limited  British Virgin Islands   100%
         
Heyu Healthcare Technology Limited  Hong Kong   100%
         
JSEL  The PRC   100%
         
Kangzi  The PRC   60%

 

Use of Estimates

 

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Management believes that the estimates used in preparing the financial statements are reasonable and prudent; however, actual results could differ from these estimates. Significant estimates include the allowance for doubtful accounts, impairment assessments of goodwill, valuation of deferred tax assets, rebilling collections and certain accrued liabilities such as contingent liabilities.

 

Cash Equivalents

 

The Company considers all highly liquid debt instruments purchased with a maturity period of three months or less to be cash or cash equivalents. The carrying amounts reported in the accompanying unaudited condensed consolidated balance sheets for cash and cash equivalents approximate their fair value. All of the Company’s cash that is held in bank accounts in the PRC and Hong Kong is not protected by Federal Deposit Insurance Corporation (“FDIC”) insurance or any other similar insurance in the PRC, or Hong Kong.

 

Inventories

 

Inventories are stated at the lower of cost or market value. The Company applies the weighted average cost method to its inventory.

 

Leases

 

The Company adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02), as amended, which supersedes the lease accounting guidance under Topic 840, and generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use (ROU) assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements.

 

7

 

 

Operating leases are included in operating lease right-of-use (“ROU”) assets and short-term and long-term lease liabilities in our consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in our consolidated balance sheets.

 

ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the leases do not provide an implicit rate, we use the industry incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

 

Adoption of the standard resulted in the initial recognition of $215,298 of ROU assets and $215,298 of lease liabilities on our consolidated balance sheet related to office space lease commitment on September 1, 2019.

  

ASU 2016-02 requires that public companies use a secured incremental browning rate for the present value of lease payments when the rate implicit in the contract is not readily determinable. We determine a secured rate on a quarterly basis and update the weighted average discount rate accordingly. Lease terms and discount rate follow.

 

   September 1, 2019 
Weighted Average Remaining Lease Term(Year)   3 
Weighted Average Discount Rate   4.75%

  

The approximate future minimum lease payments under operating leases as:

 

   Operating Leases 
Fiscal 2019   25,409 
Fiscal 2020   77,074 
Fiscal 2021   79,615 
Fiscal 2022   54,206 
Total Lease payments   236,304 
Less Imputed interest   21,005 
Present value of lease liabilities  $215,298 

   

Foreign Currency

 

For fiscal year 2019, the Company’s principal country of operations is the PRC. The accompanying consolidated financial statements are presented in US$. The functional currency of the Company is US$, and the functional currency of the Company’s subsidiaries is RMB. The consolidated financial statements are translated into US$ from RMB at year-end exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. The resulting translation adjustments are recorded as a component of shareholders’ equity included in other comprehensive income. Gains and losses from foreign currency transactions are included in profit or loss. There were no gains and losses from foreign currency transactions during the quarter ended September 30, 2019 and 2018.

 

   As of 
   September 30, 2019   December 31, 2018 
RMB: US$ exchange rate   7.1360    6.8764 

 

   Nine months ended
September 30,
 
     2019   2018 
RMB: US$ exchange rate    6.8618    6.6146 
           

 

8

 

 

The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US$ at the rates used in translation.

 

General and administrative costs

 

General and administrative expenses include personnel expenses for executive, finance, and internal support personnel. In addition, general and administrative expenses include fees for bad debt costs, professional legal and accounting services, insurance, office space, banking and merchant fees, and other overhead-related costs.

 

Income Taxes

 

The Company accounts for income taxes pursuant to ASC Topic 740, Income Taxes. Income taxes are provided on an asset and liability approach for financial accounting and reporting of income taxes. Any tax paid by subsidiaries during the year is recorded. Current tax is based on the profit or loss from ordinary activities adjusted for items that are non-assessable or disallowable for income tax purpose and is calculated using tax rates that have been enacted or substantively enacted at the balance sheet date. ASC Topic 740 also requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statements and the tax basis of assets and liabilities, and for the expected future tax benefit to be derived from tax losses and tax credit carry-forwards. ASC Topic 740 additionally requires the establishment of a valuation allowance to reflect the likelihood of realization of deferred tax assets. Realization of deferred tax assets, including those related to the U.S. net operating loss carry-forwards, are dependent upon future earnings, if any, of which the timing and amount are uncertain.

 

The Company adopted ASC Topic 740-10-05, Income Tax, which provides guidance for recognizing and measuring uncertain tax positions. It prescribes a threshold condition that a tax position must meet for any of the benefits of the uncertain tax position to be recognized in the financial statements. It also provides accounting guidance on derecognizing, classification and disclosure of these uncertain tax positions.

 

The Company’s policy on classification of all interest and penalties related to unrecognized income tax positions, if any, is to present them as a component of income tax expense.

 

Capital Structure

 

The Company had 2,000,000,000 shares of authorized common stock, par value $0.001 per share, with 1,032,466,000 shares issued and outstanding as of September 30, 2019, and 1,141,472,861 shares issued and outstanding as of December 31, 2018.

 

Earnings (loss) per share

 

Basic net income (loss) per share of common stock attributable to common stockholders is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average shares of common stock outstanding for the period. Potentially dilutive shares, which are based on the weighted-average shares of common stock underlying outstanding stock-based awards, warrants, options, or convertible debt using the treasury stock method or the if-converted method, as applicable, are included when calculating diluted net income (loss) per share of common stock attributable to common stockholders when their effect is dilutive.

 

Potential dilutive securities are excluded from the calculation of diluted EPS in loss periods as their effect would be antidilutive.

 

9

 

 

As of September 30, 2019 and December 31, 2018, there were no potentially dilutive shares.

 

   For the Quarter Ended September 30, 
   2019   2018 
Statement of Operations Summary Information:        
Net loss  $(395,913)  $(147,797)
Weighted-average common shares outstanding - basic and diluted   1,660,239,731    636,661,604 
Net loss per share, basic and diluted  $(0.00)  $(0.00)

  

NOTE 2 – GOING CONCERN

 

During the quarter ended September 30, 2019, the Company had been unable to generate cash flows sufficient to support its operations despite of Kangzi’s business operation and had been dependent on related party advances from the current controlling shareholder. In addition, the Company had experienced recurring net losses, and had an accumulated deficit of $18,778,535 and working capital deficit of $686,579 as of September 30, 2019. These factors raise doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments related to the recoverability or classification of asset-carrying amounts or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern.

 

There can be no assurance that sufficient funds required during the next year or thereafter will be generated from any future operations or that funds will be available from external sources such as debt or equity financings or other potential sources. If the Company is unable to raise capital from external sources when required, there would be a material adverse effect on its business. Furthermore, there can be no assurance that any such required funds, if available, will be available on attractive terms or that they will not have a significant dilutive effect on the Company’s existing stockholders. Management is now seeking an operating company with which to merge or acquire. In the foreseeable future, the Company will rely on related parties, such as its controlling shareholder, to provide advances to funds general corporate purposes and any potential acquisitions of profitable investments. There is no assurance, however, that the Company will achieve its objectives or goals.

 

NOTE 3 – CASH AND CASH EQUIVALENTS

 

Cash and cash equivalents consist of the following:

 

   As of September 30,
2019
   As of December 31,
2018
 
         
Bank Deposits-China & HK   452,318    37,555 
   $452,318   $37,555 

 

NOTE 4 – OTHER RECEIVABLE

 

Other receivable consists of the following:

 

   As of September 30,
2019
   As of December 31,
2018
 
         
Fujian Shanzhiling Biological Technology Co., Ltd.    -        21,324  
Others   24,566    - 
   $24,566   $21,324 

 

10

 

 

On October 8, 2018, the Company entered into a non-binding letter of intent with Fujian Shanzhiling Biological Technology Co., Ltd. (the “Acquirer”), a Chinese biotechnology product manufacturing corporation, whereby the Acquirer agreed to acquire 51% of the outstanding capital of the Company subject to certain adjustment provisions (the “Shanzhiling Acquisition”). As of the date of this report, the Company has terminated the agreements related to Shanzhiling Acquisition; therefore, the related balance in the amount of $24,499 has been written off during the quarter ended September 30, 2019.

 

NOTE 5 – ADVANCES TO SUPPLIERS

 

Advances to suppliers consists of the following:

 

   As of
September 30,
2019
   As of
December 31,
2018
 
         
Prepayment for purchase of raw materials   81,431    - 
   $81,431   $  0 

 

NOTE 6 – INVENTORY

 

Inventory consists of the following:

 

   As of
September 30,
2019
   As of
December 31,
2018
 
         
Raw materials   301,725    - 
Finished goods   9,409    - 
   $311,134   $   - 

  

No impairment was provided for the inventories as of September 30, 2019.

 

NOTE 7 – OPERATING LEASE RIGHT-OF-USE ASSET AND LIABILITIES

 

As of September 1, 2019, company entered in lease agreement for the office space, the right-of-use asset is recognized as following:

 

   As of
September 30,
2019
   As of
December 31,
2018
 
         
Operating lease right-of-use asset   209,587      - 
   $209,587   $- 

 

Operating lease liability consist both current and noncurrent component as the following:

 

   As of
September 30,
2019
   As of
December 31,
2018
 
         
Operating lease liability - current portion   (66,473)        - 
Operating lease liability   (143,325)   - 
   $(209,798)  $- 

 

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ASU 2016-02 requires that public companies use a secured incremental browning rate for the present value of lease payments when the rate implicit in the contract is not readily determinable. We determine a secured rate on a quarterly basis and update the weighted average discount rate accordingly. Lease terms and discount rate follow.

 

   September 1, 2019 
Weighted Average Remaining Lease Term (Year)   3 
Weighted Average Discount Rate   4.75%

  

The approximate future minimum lease payments under operating leases as:

 

   Operating Leases 
Fiscal 2019   25,409 
Fiscal 2020   77,074 
Fiscal 2021   79,615 
Fiscal 2022   54,206 
Total Lease payments   236,304 
Less Imputed interest   21,005 
Present value of lease liabilities  $215,298 

 

NOTE 8 – ADVANCES FROM CUSTOMERS

  

   As of
September 30,
2019
   As of
December 31,
2018
 
         
Advances from customers(1)   420,406         - 
   $420,406   $- 

  

(1) On October 15 2019, JSEL entered into a clinical cooperation agreement (the “Clinical Cooperation Agreement”) with Shenzhen Saikun Biotechnology Co., Ltd. (“Saikun”). Pursuant to the Clinical Cooperation Agreement, Saikun agreed to pay JSEL 5.5 million RMB as the total preordering payment. 1.5 million RMB and 1.5 million RMB were delivered to JSEL respectively on September 7 and September 27, 2019. The parties are working on the timing for payment of the remaining 2.5 million RMB due under the Clinical Cooperation Agreement. In exchange, JSEL is obligated to purchase all the components of a Chamber from Kangzi, fully assemble it, and conduct a clinical trial with Saikun, third-party hospital partners, and patients using the Chamber. Specifically, after receiving the full amount of payment from Saikun, JSEL shall transport the Chamber to its preferred location, properly install it, and conduct a clinical trial that lasts at least one month.

 

NOTE 9 – ACCRUED EXPENSES AND OTHER PAYABLES

 

Accrued expenses and other payables consist of the following:

 

   As of
September 30,
2019
   As of
December 31,
2018
 
         
Accrued payroll   35,633    7,589 
Other Payables   76,085    9,039 
   $111,718   $16,628 

 

Accrued payroll includes all company employee payroll liabilities as of September 30, 2019, and other payables contains employee reimbursements.

 

Operating lease liability consist both current and noncurrent component as the following:

 

   As of
September 30,
2019
   As of
December 31,
2018
 
         
Operating lease liability - current portion   (66,473)   - 
Operating lease liability   (143,325)        - 
   $(209,798)  $- 

  

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NOTE 10 – RELATED PARTY TRANSACTIONS

 

As of September 30, 2019, and December 31, 2018, the Company owed related parties $957,409 and $279,464, respectively. As the Company has just started business activities in March 2019, all expenses incurred during this reporting period are paid by a related party. Expenses mainly included auditing, consulting and legal advisory expenses, government registration expenses, and payrolls.

 

A director of the Company provides the property for the use by the Company without charge.

 

NOTE 11 – EQUITY

 

The Company recorded the following equity transactions during the nine months ended September 30, 2019:

 

On March 15, 2019, the Company, with the approval of the Board, entered into a Share Cancellation Agreement (the “Share Cancellation Agreement”) with Mr. Ban Siong Ang, the President, Chief Executive Officer, and Chairman of the Board of the Company. Pursuant to the Share Cancellation Agreement, the Company and Mr. Ang agreed to cancel 109,006,861 shares of Common Stock previously issued to Mr. Ang.

 

The Company recorded the following equity transactions during the year ended December 31, 2018:

 

On March 12, 2018, the Board of Directors, with the consent of the majority shareholder, voted for a 1-for-464 reverse stock split. On April 11, 2018 the reverse split became effective.

 

On April 13, 2018, 1,000,000,000 shares were issued to a prior related party as a repayment of debt.

 

On April 18, 2018, the Company entered into a Share Purchase Agreement with Mr. Ban Siong Ang and Mr. Dan Masters, pursuant to which Mr. Ang acquired 1,021,051,700 shares, representing 98.91% of the issued and outstanding shares of Common Stock from Mr. Masters for an aggregate purchase price of $335,000. As a result of the Share Purchase Agreement, the Company accepted the resignation of Mr. Masters, as the Company’s President, Chief Executive Officer, Chief Financial Officer, Secretary and Chairman of the Board. This resignation was given in connection with the closing of the Share Purchase and was not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies, or practices. Additionally, all debt due to Mr. Masters from the Company was cancelled as of the closing of the Share Purchase and recognized as contributed capital.

 

On July 30, 2018, the Company amended its Articles of Incorporation with the State of Nevada in order to increase its authorized shares of Common Stock from 150,000,000 to 2,000,000,000.

 

On September 11, 2018, the Nevada Secretary of State approved the Company’s certificate of amendment to amend its Articles of Incorporation to effectuate a 100-for-1 forward stock split. The total issued and outstanding shares of Common Stock has been increased from 10,324,660 to 1,032,466,000 shares, with the par value unchanged at $0.001.

 

In October 2018, the controlling stockholder of the Company, Mr. Ban Siong Ang, entered into a series of share transfer agreements (the “Share Transfer Agreements”) with certain buyers (the “Buyers”). Pursuant to the Share Transfer Agreements, an aggregate of 109,006,861 shares of Common Stock were issued to the Buyers, but the cancellation of the 109,006,861 shares of Common Stock held by Mr. Ang was still in process as of December 31, 2018. The cancellation of those shares held by Mr. Ang was subsequently completed on March 20, 2019, pursuant to a Share Cancellation Agreement dated March 15, 2019, by and between the Company and Mr. Ang.

 

Unless otherwise indicated, all common share amounts and per share amounts in the financial statements and disclosures have been presented giving effect to the 1-for-464 reverse split that became effective on April 11, 2018, and the 100-for-1 forward stock split that became effective on September 11, 2018.

 

NOTE 12 – INCOME TAXES

 

The Company is subject to U.S. Federal tax laws. The Company has not recognized an income tax benefit for its operating losses in the United States because the Company does not expect to commence active operations in the United States.

 

Heyu Healthcare Technology Limited was incorporated in Hong Kong and is subject to Hong Kong profits tax at a tax rate of 16.5%. Since Heyu Healthcare Technology Limited had no taxable income during the reporting period, it has not paid Hong Kong profits taxes. Heyu Healthcare Technology Limited has not recognized an income tax benefit for its operating losses in Hong Kong because the Company does not expect to commence active operations in Hong Kong.

 

The Company has been conducting and plans to continue to conduct its major operations in the PRC through JSEL in accordance with the relevant tax laws and regulations. The corporate income tax rate in China is 25%. The Company has not paid PRC profits taxes, since it had no taxable income during the reporting period.

 

13

 

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

Forward-Looking Statements

 

Statements made in this Quarterly Report which are not purely historical are forward-looking statements with respect to the goals, plan objectives, intentions, expectations, financial condition, results of operations, future performance and our business, including, without limitation, (i) our ability to raise capital, and (ii) statements preceded by, followed by or that include the words “may,” “would,” “could,” “should,” “expects,” “projects,” “anticipates,” “believes,” “estimates,” “plans,” “intends,” “targets” or similar expressions.

 

Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond our control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: general economic or industry conditions, nationally and/or in the communities in which we may conduct business, changes in the interest rate environment, legislation or regulatory requirements, conditions of the securities markets, our ability to raise capital, changes in accounting principles, policies or guidelines, financial or political instability, acts of war or terrorism, other economic, competitive, governmental, regulatory and technical factors affecting our current or potential business and related matters.

 

Accordingly, results actually achieved may differ materially from expected results in these statements. Forward-looking statements speak only as of the date they are made. We do not undertake, and specifically disclaim, any obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of such statements.

 

Overview

 

Heyu Biological Technology Corporation (the “Company” or “we”) was incorporated in the state of Nevada on May 18, 1987, as Asphalt Associates, Inc. and changed its name to Pacific WebWorks in January 1999. From 1999 to 2016 the Company engaged in the development and distribution of web tools software, electronic business storefront hosting, and Internet payment systems for individuals and small to mid-sized businesses. On February 23, 2016, the Company filed a voluntary petition for bankruptcy in the U.S. Bankruptcy Court for the District of Utah, and soon afterwards ceased its business activities. On August 19, 2016, the Company proposed a Plan of Liquidation and on November 28, 2016, the Court entered an order confirming the Plan of Liquidation and establishing a Liquidating Trust. On December 28, 2016, all assets and liabilities of the Company were transferred to the Liquidating Trust.

 

On April 18, 2018, the Company entered into a Share Purchase Agreement with Mr. Ban Siong Ang and Mr. Dan Masters, pursuant to which Mr. Ang acquired 1,021,051,700 shares, representing 98.91% of the issued and outstanding shares of Common Stock from Mr. Masters for an aggregate purchase price of $335,000. As a result of the Share Purchase Agreement, the Company accepted the resignation of Mr. Masters, as the Company’s President, Chief Executive Officer, Chief Financial Officer, Secretary and Chairman of the Board. This resignation was given in connection with the closing of the Share Purchase and was not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies, or practices. Additionally, all debt due to Mr. Masters from the Company was cancelled as of the closing of the Share Purchase and recognized as contributed capital.

 

14

 

 

On April 18, 2018, to fill the vacancies created by Mr. Masters’s resignations, Ban Siong Ang and Hung Seng Tan were elected as the directors of the Company. Mr. Ang was appointed as President, Chief Executive Officer, and Chairman of the Board of the Company. Mr. Tan was appointed as Executive Director of the Company. Ms. Wendy Li was appointed as Chief Financial Officer.

 

On July 3, 2018, the Company changed its name to Heyu Biological Technology Corporation, with a new ticker symbol, HYBT.

 

On January 17, 2019, JSEL, entered into the Share Transfer Agreement with Mr. Xu, whereby JSEL received 60% of the outstanding equity interest of Kangzi from Mr. Xu for the purpose of developing a joint venture in the business of selling medical equipment. It was the parties’ intention that JSEL would fund the operations of Kangzi in proportion to its equity interest in Kangzi. At the time of the share transfer, Kangzi owned no assets and conducted no business operation of its own.

 

On March 15, 2019, the Company, with the approval of the Board, entered into a Share Cancellation Agreement (the “Share Cancellation Agreement”) with Mr. Ban Siong Ang, the President, Chief Executive Officer, and Chairman of the Board of the Company. Pursuant to the Share Cancellation Agreement, the Company and Mr. Ang agreed to cancel 109,006,861 shares of Common Stock previously issued to Mr. Ang.

 

In March 2019, the Company entered into a Raspberry Purchase Agreement and a Raspberry Juice Processing Agreement with Ditiantai. Pursuant to these two agreements, the Company purchased six tons of raspberry from Ditiantai, which were processed by Ditiantai into raspberry juice and delivered to the Company. The Company then sold the raspberry juice to a corporate buyer and five individual buyers. The Company, however, does not plan to engage in the business of selling raspberry juice in the long term.

 

Since the beginning of 2019, Mr. Xu has led the core research and development team of Kangzi to develop and manufacture a new medical product, the Submillimeter Wave (Terahertz) Quantized Space Therapy Chamber (the “Chamber”). Utilizing submillimeter waves, the Chamber is a medical equipment designed to treat cancer through cold nuclear fusion caused by cosmic ray muons in an enclosed chamber. Specifically, we believe that exposure to an appropriate amount of submillimeter waves could accelerate the generation of a large number of cosmic ray muons inside the human body and that such cosmic ray muons could further facilitate cold nuclear fusion, which could reverse the cancering process through which selenium is converted into nickel inside cells.

 

The team consists of researchers whom have years of extensive experience in medicine and physics. The lead scientist of the team, Mr. Xu, had served as the deputy chief engineer of the New Energy Base of the National Defense-Science and Technology Commission in 1995, as the chairman and chief scientist of Shanghai Guangcon New Energy Technology Co., Ltd. from 2011 to 2019, and the director of Shanghai Hengbian New Energy Research Institute from 2003 to 2008. In 2012, Mr. Xu was rewarded the “Harmony-Person of the Year in China” at the “2011 Harmony China Annual Summit” in Beijing and recognized as “Leaping China: One of the Most Influential People of the Year in 2011” by China International Economic and Technical Cooperation Promotion Association, China Elite Culture Promotion Association, and China Outstanding Chinese Merchants Association. In 2013, the Organizing Committee of Boau Forum on Asian SME Development awarded Mr. Xu “2013 China Economic Outstanding Contribution Award.”

 

Pursuant to the terms of the Share Transfer Agreement entered into by JSEL and Kangzi on January 17, 2109, JSEL has the right to monitor and manage all aspects of operation of Kangzi, including its research and development activities relating to the Chamber. As the development of the Chamber enters its final stage at Kangzi, JSEL started accepting pre-orders for the Chamber in September. Subsequently, on October 15 2019, JSEL entered into a clinical cooperation agreement (the “Clinical Cooperation Agreement”) with Shenzhen Saikun Biotechnology Co., Ltd. (“Saikun”). Pursuant to the Clinical Cooperation Agreement, Saikun agreed to pay JSEL 5.5 million RMB as the total preordering payment. 1.5 million RMB and 1.5 million RMB were delivered to JSEL respectively on September 7 and September 27, 2019. The parties are working on the timing for payment of the remaining 2.5 million RMB due under the Clinical Cooperation Agreement. In exchange, JSEL is obligated to purchase all the components of a Chamber from Kangzi, fully assemble it, and conduct a clinical trial with Saikun, third-party hospital partners, and patients using the Chamber. Specifically, after receiving the full amount of payment from Saikun, JSEL shall transport the Chamber to its preferred location, properly install it, and conduct a clinical trial that lasts at least one month. During the clinical trial, JSEL shall provide training sessions regarding the proper operation of the Chamber to Saikun’s employees. Both Saikun and JSEL are obligated to find third-party hospitals whom will agree to act as partners to co-host the clinical trial and patients whom will be voluntarily willing to undergo treatment provided by the Chamber. While Saikun is responsible for various expenses related to the clinical trial, JSEL is responsible for communicating with patients receiving treatment and other patient-related administrative matters. When JSEL determines that Saikun is capable of properly operating the Chamber and managing activities related to the Chamber, Saikun may request JSEL to move the Chamber to a location designated by Saikun and reinstall it. Furthermore, upon the successful completion of the clinical trial, JSEL shall provide Saikun governmental permits necessary for the operation of the Chamber, and Saikun shall operate the Chamber and provide related services to patients under the supervision of JSEL. In addition, JSEL shall transfer the right of using the Chamber and any beneficiary right affiliated to using the Chamber to Saikun upon receiving the full amount of payment from Saikun. JSEL, nevertheless, owns all the intellectual property rights affiliated with the Chamber. If the two parties decide to terminate the Clinical Cooperation Agreement prior to the expiration of the term, Saikun’s right of using the Chamber during the term is still effective as long as its use of the Chamber does not infringe any of JSEL’s intellectual property rights affiliated with the Chamber. The two parties agreed that the term of the Clinical Cooperation Agreement would not end until Kangzi successfully obtains permits issued by relevant government entities supervising development and sale of medical equipment.

 

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To prepare for the mass production of Chambers, Kangzi is conducting clinical experiments to make further improvements on Chamber and adjusting features of the mass-production mold for Chamber. Kangzi is also in the process of obtaining official governmental permits from relevant government authorities to produce and sell Chambers on a national scale. As its long-term business strategy, Kangzi focuses on researching, developing, and manufacturing high-technology medical equipment while targeting both individual and institutional customers. It plans to massively manufacture Chambers in small and medium sizes, establish operation centers to sell Chambers in various cities across China, and initiate advertising and marketing campaigns on different media platforms. Kangzi will also monetize on services provided to customers who use Chambers and other medical products.

 

In addition to business activities related to Chamber, the Company will commit to the research, development, manufacturing, and sale of healthcare equipment and various health products containing natural plateau plants, including cosmetics, nutritional supplements, and drugs. In the near future, the Company aims to standardize and internationalize the production and sale of healthcare equipment and health products, while increasing its brand awareness in the healthcare and consumer-product markets.

 

Liquidity and Capital Resources

 

As of September 30, 2019, we had assets of $1,079,036, which consisted current assets of $452,318 in cash, $24,566 in other receivables, $81,431 as advances to suppliers, and $311,134 as inventory, and noncurrent asset of $209,587 operating lease right-of-use asset.We had liabilities of $1,699,353, which consisted current liabilities of $111,718 in accounts payable and accrued expenses, $420,406 in advances from customers, $22 in taxes payable, $957,409 in related party payables and $66,473 in short term operating lease liabilities. We also had recognized long term operating lease liabilities of $143,325 as noncurrent liabilities. We had an accumulated deficit of $18,778,535.

 

As of December 31, 2018, we had assets of $58,879, liabilities of $296,115 and an accumulated deficit totaled $18,421,319. The increase in the assets was mainly due to cash balance increased by customer prepayments, increase of inventory in raw materials, and recognition of the operating lease right-of-use asset. The increase in the liabilities was mainly due to advanced payments received from customers, relevant operating lease liabilities, and related party payables. Additionally, as the Company started its operation in mid-March 2019, related parties paid expenses totaling $957,409 to vendors for accounting, auditing, consulting, SEC filing services, and all other operating expenses as of September 30, 2019.

 

Results of Operations

 

From the period of the Liquidation on December 28, 2016 to September 6, 2019, we had been a shell company without any significant assets or operations. Since September 7, 2019, we are no longer a shell company due to the business operation of Kangzi and the first amount of preordering payment received from Saikun. For a detailed description, please see “Overview” above.

 

Comparison of the Three Months Ended September 30, 2019 and 2018

 

We started operations in mid-March 2019, and had no revenues or operations for the same period in 2018. Our revenues during the three months ended September 30, 2019, were $7,387, and the cost of revenue was $3,666, as compared to nil and nil for the same period in 2018, respectively. The increase in revenues and cost of revenue was due to sale of raspberry juice during the period. We had incurred selling expenses of $5,992 and administrative expenses of $202,505 during the three months ended September 30, 2019, as compared to selling expenses of nil and administrative expenses of $125,957 for the same period in 2018, respectively. The increase in the expenditure was mainly due to office lease expenses, employee wages, and other third part agency fees. . We might incur operating expenses without sufficient revenues, as we have just identified and determined to focus on the research, development, and manufacturing of healthcare equipment and health products. We will depend upon our officers and directors to make loans to the Company to meet any costs that may occur. All such advances will be interest-free loans or equity contributions. However, by the end of September we have received customer prepayments for our new medical product and services pursuant to the Clinical Cooperation Agreement. When we start fulfilling our obligations under the Clinical Cooperation Agreement, we expect to see significant increase in revenue.

 

16

 

 

Comparison of the Nine Months Ended September 30, 2019 and 2018

 

We started operations in mid-March 2019, and had no revenues or operations for the same period in 2018. Our revenues during the nine months ended September 30, 2019, were $57,317, and the cost of revenue was $31,938, as compared to nil and nil for the same period in 2018, respectively. The increase in revenues and cost of revenue was due to sale of raspberry juice during the period. We had incurred selling expenses of $7,377 and administrative expenses of $412,207 during the nine months ended September 30, 2019, as compared to selling expenses of nil and administrative expenses of $147,797 for the same period in 2018, respectively. The increase in the expenditure was mainly due to office lease expenses, employee wages and salary expenses, auditing, and other day-to-day operation related expenses. We might incur operating expenses without sufficient revenues, as we have just identified and determined to focus on the research, development, and manufacturing of healthcare equipment and health products. We will depend upon our officers and directors to make loans to the Company to meet any costs that may occur. All such advances will be interest-free loans or equity contributions. However, by the end of September we have received customer prepayments for our new medical product and services pursuant to the Clinical Cooperation Agreement. When we start fulfilling our obligations under the Clinical Cooperation Agreement, we expect to see significant increase in revenue.

        

Going Concern

 

The accompanying financial statements are presented on a going concern basis. The Company’s financial condition raises doubt about the Company’s ability to continue as a going concern. As of September 30, 2019, the Company had an accumulated deficit of $18,778,535, and a net loss of $205,146 and $395,913 for the three and nine months ended September 30, 2019. As the development of the Chamber enters its final stage and our subsidiary, JSEL, has started accepting pre-orders for the Chamber in September, we believe that as the number of orders for the Chamber increases in the future the Company will generate more revenues enabling it to cover its operating expenses.

 

Off-Balance Sheet Arrangements

 

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues, or expenses, results of operations, liquidity, capital expenditures, or capital resources that is material to investors.

 

ITEM 3 QUANTITATIVE AND QUALITATIVE ABOUT MATERIAL RISKS

 

Pursuant to Item 305(e) of Regulation S-K (§ 229.305(e)), the Company is not required to provide the information required by this Item as it is a “smaller reporting company,” as defined by Rule 229.10(f)(1).

 

ITEM 4. CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures

 

Management has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of such date, our disclosure controls and procedures were not effective as a result of a material weakness primarily related to a lack of a sufficient number of personnel with appropriate training and experience in accounting principles generally accepted in the United States of America, or GAAP. To remediate the material weakness, our Chief Financial Officer, as a member of CPA Australia, hence a Certified Public Accountant in Australia, has attended professional trainings regarding applying GAAP on a regular basis. In the near future, we also intend to hire more personnel with sufficient training and experience in GAAP.

 

Changes in Internal Control Over Financial Reporting

 

There was no change in our internal control over financial reporting that occurred during the quarterly period ended September 30, 2019, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

We believe that a control system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the control system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within any company have been detected.

 

17

 

 

PART II - OTHER INFORMATION 

 

ITEM 1. LEGAL PROCEEDINGS 

 

From time to time, we may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm business. We are currently not aware of any such legal proceedings or claims that will have, individually or in the aggregate, a material adverse effect on our business, financial condition or operating results. 

 

ITEM 1A. RISK FACTORS 

 

Smaller reporting companies are not required to provide the information required by this item.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 

 

There were no unregistered sales of equity securities during the period covered by this report on Form 10-Q. 

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES 

 

None.

 

ITEM 4. MINE SAFETY DISCLOSURES 

 

Not applicable. 

 

ITEM 5. OTHER INFORMATION 

 

None.

 

18

 

 

ITEM 6. – EXHIBITS 

 

Exhibit   Exhibit Description
3.1(1)   Articles of Incorporation
3.2 (2)   Certificate of Amendment
3.3 (3)   Certificate of Amendment
3.4(4)   Certificate of Amendment
3.5(5)   By-Laws
3.6(6)   First Amendment to the By-Laws
10.1*   Clinical Cooperation Agreement entered into and by Jiashierle (Xiamen) Healthcare Technology Co., Ltd. and Shenzhen Saikun Biotechnology Co., Ltd., dated October 15, 2019*
31.1*   Certification pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*   Certification pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**   Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**   Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS   XBRL Instance Document
101.SCH   XBRL Taxonomy Extension Schema Document
101.CAL   XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF   XBRL Taxonomy Extension Definition Linkbase Document
101.LAB   XBRL Taxonomy Extension Labels Linkbase Document
101.PRE   XBRL Taxonomy Extension Presentation Linkbase Document

 

(1) Filed as an exhibit to the Company’s Registration Statement on Form 10-12G, as filed with the SEC on July 16, 1999, and incorporated herein by this reference.
(2) Filed as an exhibit to the Company’s Form 8-K, as filed with the SEC on July 6, 2018, and incorporated herein by reference.
(3) Filed as an exhibit to the Company’s Form 8-K, as filed with the SEC on August 3, 2018, and incorporated herein by reference.
(4) Filed as an exhibit to the Company’s Form 8-K, as filed with the SEC on September 14, 2018, and incorporated herein by reference.
(5) Filed as an exhibit to the Company’s Registration Statement on Form 10-12G, as filed with the SEC on July 16, 1999, and incorporated herein by this reference.
(6) Filed as an exhibit to the Company’s Quarterly Report on Form 10-Q, as filed with the SEC on November 13, 2018, and incorporated herein by this reference.

  

* Filed herewith.
** In accordance with Item 601(b)(32)(ii) of Regulation S-K and SEC Release No. 34-47986, the certifications furnished in Exhibits 32.1 and 32.2 herewith are deemed to accompany this Form 10-Q and will not be deemed filed for purposes of Section 18 of the Exchange Act. Such certifications will not be deemed to be incorporated by reference into any filings under the Securities Act or the Exchange Act.

 

19

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

  Heyu Biological Technology Corporation
     
  By: /s/ Ban Siong Ang
  Name:  Ban Siong Ang
Dated: November 14, 2019  Title: Chief Executive Officer
     
  By: /s/ Wendy Wei Li
  Name: Wendy Wei Li
Dated: November 14, 2019  Title: Chief Financial Officer

 

 

20

 

EX-10.1 2 f10q0919ex10-1_heyubiologi.htm CLINICAL COOPERATION AGREEMENT ENTERED INTO AND BY JIASHIERLE (XIAMEN) HEALTHCARE TECHNOLOGY CO., LTD. AND SHENZHEN SAIKUN BIOTECHNOLOGY CO., LTD., DATED OCTOBER 15, 2019

Exhibit 10.1

 

Cooperation Agreement

 

Party A: Shenzhen Saikun Biotechnology Co., Ltd.

Legal Representative: Chunjie Zhang

 

Party B: Jiashierle (Xiamen) Health Science & Technology Co., Ltd.

Legal Representative: TAN HUNG SENG

 

In the light of:

 

1. Both Party A and Party B are enterprises legally established and existing under the laws of PRC. Shanghai Kangzi Pharmaceutical Science & Technology Co., Ltd. is a subsidiary of Party B with its shares controlled by Party B (as of the date of this Agreement, Party B holds 60% of shares). The quantized spatial power chamber (hereinafter collectively “remedial chambers”) developed by Shanghai Kangzi Pharmaceutical Science & Technology Co., Ltd. is in the term of clinical trial.

 

2. Both Party A and Party B have abundant knowledge about the application and marketing prospects of remedial chambers and have reached agreements on the clinical trial and marketing promotion of remedial chambers.

 

-1-

 

 

Therefore, for facilitating the progress of clinical cooperation and advertising the remedial chambers to market as soon as possible, Party A and Party B have reached the following agreements through negotiation:

 

1. Forms and Contents of Cooperation

 

The Party A shall provide support funds of five million and fifty thousand RMB (¥5,500,000) for the cooperation, while Party B shall be responsible for selecting and purchasing raw materials of remedial chambers as well as providing one assembled equipment for clinical trial. After fulfilling the payment of whole funds, Party A shall have the rights of use and the derivative interests.

 

2. Payment of Funds

 

2.1 Time of Payment

 

2.1.1 Both Party A and Party B have confirmed that Party A has paid the first sum of funds of one million and fifty thousand RMB (¥1,500,000) to the account designated by Party B on September 7th 2019 and have paid one million and fifty thousand RMB (¥1,500,000) to the account designated by Party B on September 27th 2019. As of the date of signing this Agreement, Party A has paid a total of three million RMB (¥3,000,000) for cooperation support funds.

 

-2-

 

 

2.1.2 As Party A agreed, it shall pay two million and fifty thousand RMB (¥2,500,000) to Party B before October 15th 2019.

 

2.2 Payment Method

 

2.2.1 Party shall pay the support funds aforesaid to the account designated by Party B as followed:

Name of Account: Jiashierle (Xiamen) Health Science & Technology Co., Ltd.

Account Number: 403210 010400 XXXXX

Opening Bank: Agricultural Bank of China Xiamen Jimei Subbranch

 

2.2.2 In the event Party A requests Party B to provide bills, Party A shall provide official proof on relationships between payer and Party A (or its legal representative), in order for Party B to provide bills.

 

-3-

 

 

3. Rights and Obligations

 

3.1 Installation and Transportation. Party B shall finish purchasing required raw materials for one remedial chamber and hereby installing and transporting to the place designated by Party B as known and agreed by Party A, within 30 days after receiving total support funds of five million and fifty thousand RMB (¥5,500,000) that shall be paid by Party A, and to complete equipment testing and other work.

 

3.2 Clinical Trial

 

3.2.1 As agreed by both Party, a clinical trial no less than one month shall be carried out, after the installation and adjustment of the remedial chamber.

 

3.2.2 During clinical trial, Party B shall be responsible for training operators required for clinical trial to operate remedial chamber equipment skillfully.

 

-4-

 

 

3.2.3 Party A shall be responsible for coordinating with official competent authority to ensure that such remedial chamber can normally carry out clinical trials at the site provided by Party A and shall be responsible for providing operators and site administrators required for clinical trials and arranging corresponding medical personnel. During the trial period, all expenses of relevant staff such as salary, training expenses, labor and social security expenses shall be borne by Party A.

 

3.2.4 Both Party A and Party B have obligation to provide clinical cases required for clinical trials in accordance with standards, to invite presidents of regional major hospitals to observe and experience in the test site during the trial period. Party A shall assist clinical hospitals with relevant clinical work and shall bear the costs and enjoy the benefits. Party B shall actively cooperate in introduction for patient and follow-up maintenance during the clinical trial period.

 

-5-

 

 

3.3 Both parties agree that when Party A has been able to operate and manage the remedial chamber equipment independently, Party A may request the equipment to be modified to the place designated by Party A, provided that the place shall meet clinical conditions.

 

3.4 The warranty period of the remedial chamber is one year, counting from the date when the remedial chamber is transported to the designated place. During the warranty period, in the event Party A requests to upgrade and transform the equipment, the relevant expenses shall be borne by Party A. Party A shall be responsible for assisting and cooperating in relevant installation work and providing logistic and financial support for the life of relevant staff.

 

3.5 After the completion of the clinical trial, Party B shall be responsible for acquiring relevant certificates and licenses required for producing remedial chamber. Party B shall be responsible for ensuring relevant certificates and licenses to be attached to the remedial chamber equipment used for clinical cooperation after relevant certificates and licenses being obtained. In the event Party A requests to upgrade or transform the equipment, Party B shall provide support and assistance, and the relevant expenses shall be borne by Party A. Party A shall conduct independent management and clinical services under the guidance of Party B.

 

-6-

 

 

4. Intellectual Property and Confidentiality

 

4.1 The relevant intellectual property rights of the remedial chamber shall always belong to Party B, and Party A shall never infringe upon.

 

4.2 During project cooperation, staff from each party who get exposure to the equipment must sign a confidentiality agreement with Party B before entering the site to work. In the event the project cooperation is suspended or expired with no more cooperation, Party A shall have the right of use and disposal of the equipment invested during the cooperation on the premise of ensuring Party B’s intellectual property rights never being infringed.

 

5. Dispute Resolution

 

5.1 The law of the PRC shall be applicable to this Agreement.

 

-7-

 

 

5.2 Any dispute arising out of or in connection with performance of this Agreement shall be settled through negotiation, if no agreement is reached each Party has the right to initiate litigation in court of competent jurisdiction in Shenzhen.

 

6. Miscellaneous

 

6.1 This Agreement shall come into effect as of the date of the first sum of funds of one million and fifty thousand RMB (¥1,500,000) paid by Party A getting into the account designated by Party B.

 

6.2 Issues not covered in this Agreement shall be supplemented by both parties in written form. The supplementary agreements shall have the same legal effect as this Agreement.

 

6.3 Any other oral or written memorandum or agreement between Party A and Party B on this cooperation project shall be repealed, and this Agreement prevails.

 

-8-

 

 

6.4 This Agreement shall be written in Chinese and English versions. Whereas the Chinese and English versions are contradictory, the Chinese version shall prevail.

 

6.5 This Agreement is made in quadruplicate, with each Party holding two copies respectively, and each copy has the same legal effect.

 

(No text below)

 

-9-

 

 

(This page is only for the purpose of the signature of this Agreement)

 

Party A: Shenzhen Saikun Biotechnology Co., Ltd. (Seal)

Legal Representative: Chunjie Zhang

Date:

 

Party B: Jiashierle (Xiamen) Health Science & Technology Co., Ltd. (Seal)

Legal Representative: TAN HUNG SENG

Date:

 

Signed at:  _________________________________

 

 

-10-

 

EX-31.1 3 f10q0919ex31-1_heyubiologi.htm CERTIFICATION

Exhibit 31.1

 

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 

 

I, Ban Siong Ang, certify that:

 

1. I have reviewed this report on Form 10-Q of Heyu Biological Technology Corporation;

 

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

 

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

 

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

5. The registrant’s other certifying officer(s) 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 registrant’s board of directors (or persons performing the equivalent function):

 

a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: November 14, 2019

 

/s/ Ban Siong Ang  
Ban Siong Ang  
Chairman of the Board of Directors,
Chief Executive Officer, and President
(Principal Executive Officer)
 

EX-31.2 4 f10q0919ex31-2_heyubiologi.htm CERTIFICATION

Exhibit 31.2

 

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 

 

I, Wendy Wei Li, certify that:

 

1. I have reviewed this report on Form 10-Q of Heyu Biological Technology Corporation;

 

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

 

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

 

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

5. The registrant’s other certifying officer(s) 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 registrant’s board of directors (or persons performing the equivalent function):

 

a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: November 14, 2019

 

/s/ Wendy Wei Li  
Wendy Wei Li  
Chief Financial Officer
(Principal Financial Officer and
Principal Accounting Officer)
 

EX-32.1 5 f10q0919ex32-1_heyubiologi.htm CERTIFICATION

Exhibit 32.1

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

The undersigned hereby certifies, in his capacity as an officer of Heyu Biological Technology Corporation (the “Company”), for the purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:

 

(1) The Quarterly Report of the Company on Form 10-Q for the quarter ended September 30, 2019, (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: November 14, 2019

 

/s/ Ban Siong Ang  
Ban Siong Ang  
Chairman of the Board of Directors,
Chief Executive Officer, and President
(Principal Executive Officer and Director)
 

 

The foregoing certification is being furnished solely pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code) and is not being filed as part of a separate disclosure document.

EX-32.2 6 f10q0919ex32-2_heyubiologi.htm CERTIFICATION

Exhibit 32.2

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

The undersigned hereby certifies, in her capacity as an officer of Heyu Biological Technology Corporation (the “Company”), for the purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of her knowledge:

 

(1) The Quarterly Report of the Company on Form 10-Q for the quarter ended September 30, 2019, (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: November 14, 2019

 

/s/ Wendy Wei Li  
Wendy Wei Li  
Chief Financial Officer
(Principal Financial Officer and
Principal Accounting Officer)
 

 

The foregoing certification is being furnished solely pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code) and is not being filed as part of a separate disclosure document.

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Dec. 31, 2018
Going Concern (Textual)    
Accumulated deficit $ (18,778,535) $ (18,421,319)
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The Company and Significant Accounting Policies (Details 2)
Sep. 30, 2019
USD ($)
Accounting Policies [Abstract]  
Fiscal 2019 $ 25,409
Fiscal 2020 77,074
Fiscal 2021 79,615
Fiscal 2022 54,206
Total Lease payments 236,304
Less Imputed interest 21,005
Present value of lease liabilities $ 215,298
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Advances to Suppliers (Details) - USD ($)
Sep. 30, 2019
Dec. 31, 2018
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Raw Materials [Member]    
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Operating Lease Right-of-Use Asset and Liabilities
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Sep. 30, 2019
Leases [Abstract]  
Operating Lease Right-of-Use Asset and Liabilities

NOTE 7 – OPERATING LEASE RIGHT-OF-USE ASSET AND LIABILITIES

 

As of September 1, 2019, company entered in lease agreement for the office space, the right-of-use asset is recognized as following:

 

   As of
September 30,
2019
   As of
December 31,
2018
 
         
Operating lease right-of-use asset   209,587      - 
   $209,587   $- 

 

Operating lease liability consist both current and noncurrent component as the following:

 

   As of
September 30,
2019
   As of
December 31,
2018
 
         
Operating lease liability - current portion   (66,473)        - 
Operating lease liability   (143,325)   - 
   $(209,798)  $- 

 

ASU 2016-02 requires that public companies use a secured incremental browning rate for the present value of lease payments when the rate implicit in the contract is not readily determinable. We determine a secured rate on a quarterly basis and update the weighted average discount rate accordingly. Lease terms and discount rate follow.

 

   September 1, 2019 
Weighted Average Remaining Lease Term (Year)   3 
Weighted Average Discount Rate   4.75%

  

The approximate future minimum lease payments under operating leases as:

 

   Operating Leases 
Fiscal 2019   25,409 
Fiscal 2020   77,074 
Fiscal 2021   79,615 
Fiscal 2022   54,206 
Total Lease payments   236,304 
Less Imputed interest   21,005 
Present value of lease liabilities  $215,298 
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Equity
9 Months Ended
Sep. 30, 2019
Equity [Abstract]  
EQUITY

NOTE 11 – EQUITY

 

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On March 15, 2019, the Company, with the approval of the Board, entered into a Share Cancellation Agreement (the "Share Cancellation Agreement") with Mr. Ban Siong Ang, the President, Chief Executive Officer, and Chairman of the Board of the Company. Pursuant to the Share Cancellation Agreement, the Company and Mr. Ang agreed to cancel 109,006,861 shares of Common Stock previously issued to Mr. Ang.

 

The Company recorded the following equity transactions during the year ended December 31, 2018:

 

On March 12, 2018, the Board of Directors, with the consent of the majority shareholder, voted for a 1-for-464 reverse stock split. On April 11, 2018 the reverse split became effective.

 

On April 13, 2018, 1,000,000,000 shares were issued to a prior related party as a repayment of debt.

 

On April 18, 2018, the Company entered into a Share Purchase Agreement with Mr. Ban Siong Ang and Mr. Dan Masters, pursuant to which Mr. Ang acquired 1,021,051,700 shares, representing 98.91% of the issued and outstanding shares of Common Stock from Mr. Masters for an aggregate purchase price of $335,000. As a result of the Share Purchase Agreement, the Company accepted the resignation of Mr. Masters, as the Company's President, Chief Executive Officer, Chief Financial Officer, Secretary and Chairman of the Board. This resignation was given in connection with the closing of the Share Purchase and was not the result of any disagreement with the Company on any matter relating to the Company's operations, policies, or practices. Additionally, all debt due to Mr. Masters from the Company was cancelled as of the closing of the Share Purchase and recognized as contributed capital.

 

On July 30, 2018, the Company amended its Articles of Incorporation with the State of Nevada in order to increase its authorized shares of Common Stock from 150,000,000 to 2,000,000,000.

 

On September 11, 2018, the Nevada Secretary of State approved the Company's certificate of amendment to amend its Articles of Incorporation to effectuate a 100-for-1 forward stock split. The total issued and outstanding shares of Common Stock has been increased from 10,324,660 to 1,032,466,000 shares, with the par value unchanged at $0.001.

 

In October 2018, the controlling stockholder of the Company, Mr. Ban Siong Ang, entered into a series of share transfer agreements (the "Share Transfer Agreements") with certain buyers (the "Buyers"). Pursuant to the Share Transfer Agreements, an aggregate of 109,006,861 shares of Common Stock were issued to the Buyers, but the cancellation of the 109,006,861 shares of Common Stock held by Mr. Ang was still in process as of December 31, 2018. The cancellation of those shares held by Mr. Ang was subsequently completed on March 20, 2019, pursuant to a Share Cancellation Agreement dated March 15, 2019, by and between the Company and Mr. Ang.

 

Unless otherwise indicated, all common share amounts and per share amounts in the financial statements and disclosures have been presented giving effect to the 1-for-464 reverse split that became effective on April 11, 2018, and the 100-for-1 forward stock split that became effective on September 11, 2018.

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Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares
Sep. 30, 2019
Dec. 31, 2018
Statement of Financial Position [Abstract]    
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 2,000,000,000 2,000,000,000
Common stock, shares issued 1,032,466,000 1,141,472,861
Common stock, shares outstanding 1,032,466,000 1,141,472,861
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The Company and Significant Accounting Policies
9 Months Ended
Sep. 30, 2019
Accounting Policies [Abstract]  
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES

NOTE 1 – THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES

 

Heyu Biological Technology Corporation (the "Company") was incorporated in the state of Nevada on May 18, 1987, as Asphalt Associates, Inc. and changed its name to Pacific WebWorks in January 1999. From 1999 to 2016 the Company engaged in the development and distribution of web tools software, electronic business storefront hosting, and Internet payment systems for individuals and small to mid-sized businesses. On February 23, 2016, the Company filed a voluntary petition for bankruptcy in the U.S. Bankruptcy Court for the District of Utah, and soon afterwards ceased its business activities. On August 19, 2016 the Company proposed a Plan of Liquidation and on November 28, 2016, the Court entered an order confirming the Plan of Liquidation and establishing a Liquidating Trust. On December 28, 2016, all assets and liabilities of the Company were transferred to the Liquidating Trust.

 

On April 18, 2018, the Company entered into a Share Purchase Agreement with Mr. Ban Siong Ang and Mr. Dan Masters, pursuant to which Mr. Ang acquired 1,021,051,700 shares, representing 98.91% of the issued and outstanding shares of common stock of the Company ("Common Stock") from Mr. Masters for an aggregate purchase price of $335,000 (the "Share Purchase"). As a result of the Share Purchase Agreement, the Company accepted the resignation of Dan Masters, as the Company's President, Chief Executive Officer, Chief Financial Officer, Secretary and Chairman of the Board. This resignation was given in connection with the closing of the Share Purchase and was not the result of any disagreement with the Company on any matter relating to the Company's operations, policies, or practices. Additionally, all debt due to Mr. Masters from the Company was cancelled as of the closing of the Share Purchase and recognized as contributed capital.

 

On April 18, 2018, to fill the vacancies created by Mr. Masters's resignations, Ban Siong Ang and Hung Seng Tan were elected as the directors of the Company. Mr. Ang was appointed as President, Chief Executive Officer, and Chairman of the Board. Mr. Tan was appointed as Executive Director of the Company. Ms. Wendy Wei Li was appointed as Chief Financial Officer.

 

On July 3, 2018, the Company changed its name to Heyu Biological Technology Corporation, with a new ticker symbol, HYBT.

 

During 2018, the Company established the following subsidiaries: (1) HP Technology Limited, a British Virgin Islands business company incorporated on September 20, 2018 and (2) Heyu Healthcare Technology Limited, a Hong Kong company incorporated on March 29, 2018. Further, on November 5, 2018, the Company acquired the following subsidiary: Jiashierle (Xiamen) Healthcare Technology Co., Ltd. ("JSEL"), a limited liability company incorporated under the laws of the People's Republic of China (the "PRC") on November 16, 2017.

 

On January 17, 2019, JSEL entered into a Share Transfer Agreement (the "Share Transfer Agreement") with Mr. Yu Xu ("Mr. Xu"), an individual with an address at No. 68 Chengde South Road, Qingpu District, Huaian City, Jiangsu Province, the PRC, and who owned 90% of the equity interests of Shanghai Kangzi Medical Technology Co., Ltd., a limited liability company organized under the laws of the PRC ("Kangzi"). JSEL received 60% of the outstanding equity interest of Kangzi from Mr. Xu for the purpose of developing a joint venture in the business of selling medical equipment. It was the parties' intention that JSEL would fund the operations of Kangzi in proportion to its equity interest in Kangzi. At the time of the share transfer, Kangzi owned no assets and conducted no business operation of its own.

 

In March 2019, the Company entered into a Raspberry Purchase Agreement and a Raspberry Juice Processing Agreement with Luoyang Ditiantai Agricultural Development Co., Ltd. ("Ditiantai"). Pursuant to these two agreements, the Company purchased six tons of raspberry from Ditiantai, which were processed by Ditiantai into raspberry juice and delivered to the Company. The Company then sold the raspberry juice to a corporate buyer and five individual buyers. The Company, however, does not plan to engage in the business of selling raspberry juice in the long term.

 

Since the beginning of 2019, Mr. Xu has led the core research and development team of Kangzi to develop and manufacture a new medical product, the Submillimeter Wave (Terahertz) Quantized Space Therapy Chamber (the "Chamber"). Utilizing submillimeter waves, the Chamber is a medical equipment designed to treat cancer through cold nuclear fusion caused by cosmic ray muons in an enclosed chamber. Specifically, we believe that exposure to an appropriate amount of submillimeter waves could accelerate the generation of a large number of cosmic ray muons inside the human body and that such cosmic ray muons could further facilitate cold nuclear fusion, which could reverse the cancering process through which selenium is converted into nickel inside cells.

 

The team consists of researchers whom have years of extensive experience in medicine and physics. The lead scientist of the team, Mr. Xu, had served as the deputy chief engineer of the New Energy Base of the National Defense-Science and Technology Commission in 1995, as the chairman and chief scientist of Shanghai Guangcon New Energy Technology Co., Ltd. from 2011 to 2019, and the director of Shanghai Hengbian New Energy Research Institute from 2003 to 2008. In 2012, Mr. Xu was rewarded the "Harmony-Person of the Year in China" at the "2011 Harmony China Annual Summit" in Beijing and recognized as "Leaping China: One of the Most Influential People of the Year in 2011" by China International Economic and Technical Cooperation Promotion Association, China Elite Culture Promotion Association, and China Outstanding Chinese Merchants Association. In 2013, the Organizing Committee of Boau Forum on Asian SME Development awarded Mr. Xu "2013 China Economic Outstanding Contribution Award."

 

Pursuant to the terms of the Share Transfer Agreement entered into by JSEL and Kangzi on January 17, 2019, JSEL has the right to monitor and manage all aspects of operation of Kangzi, including its research and development activities relating to the Chamber. As the development of the Chamber enters its final stage at Kangzi, JSEL started accepting pre-orders for the Chamber in September.

 

Basis of Presentation

 

The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP"). The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation.

 

The condensed consolidated financial statements of the Company as of and for the three and nine months ended September 30, 2019 and 2018 are unaudited. In the opinion of management, all adjustments (including normal recurring adjustments) that have been made are necessary to fairly present the financial position of the Company as of September 30, 2019, the results of its operations for the three and nine months ended September 30, 2019 and 2018, and its cash flows for the nine months ended September 30, 2019 and 2018. Operating results for the interim periods presented are not necessarily indicative of the results to be expected for a full fiscal year. The balance sheet as of December 31, 2018 has been derived from the Company's audited financial statements included in the Form 10-K for the year ended December 31, 2018.

 

The statements and related notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the financial statements and other information included in the Company's Annual Report on Form 10-K as filed with the SEC for the fiscal year ended December 31, 2018. 

 

As of September 30, 2019, the details of the consolidating subsidiaries are as follows:

 

Name of Company  Place of
incorporation
  Attributable
equity
interest %
 
HP Technology Limited  British Virgin Islands   100%
         
Heyu Healthcare Technology Limited  Hong Kong   100%
         
JSEL  The PRC   100%
         
Kangzi  The PRC   60%

 

Use of Estimates

 

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Management believes that the estimates used in preparing the financial statements are reasonable and prudent; however, actual results could differ from these estimates. Significant estimates include the allowance for doubtful accounts, impairment assessments of goodwill, valuation of deferred tax assets, rebilling collections and certain accrued liabilities such as contingent liabilities.

 

Cash Equivalents

 

The Company considers all highly liquid debt instruments purchased with a maturity period of three months or less to be cash or cash equivalents. The carrying amounts reported in the accompanying unaudited condensed consolidated balance sheets for cash and cash equivalents approximate their fair value. All of the Company's cash that is held in bank accounts in the PRC and Hong Kong is not protected by Federal Deposit Insurance Corporation ("FDIC") insurance or any other similar insurance in the PRC, or Hong Kong.

 

Inventories

 

Inventories are stated at the lower of cost or market value. The Company applies the weighted average cost method to its inventory.

 

Leases

 

The Company adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02), as amended, which supersedes the lease accounting guidance under Topic 840, and generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use (ROU) assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements.

 

Operating leases are included in operating lease right-of-use ("ROU") assets and short-term and long-term lease liabilities in our consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in our consolidated balance sheets.

 

ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the leases do not provide an implicit rate, we use the industry incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

 

Adoption of the standard resulted in the initial recognition of $215,298 of ROU assets and $215,298 of lease liabilities on our consolidated balance sheet related to office space lease commitment on September 1, 2019.

  

ASU 2016-02 requires that public companies use a secured incremental browning rate for the present value of lease payments when the rate implicit in the contract is not readily determinable. We determine a secured rate on a quarterly basis and update the weighted average discount rate accordingly. Lease terms and discount rate follow.

 

   September 1, 2019 
Weighted Average Remaining Lease Term(Year)   3 
Weighted Average Discount Rate   4.75%

  

The approximate future minimum lease payments under operating leases as:

 

   Operating Leases 
Fiscal 2019   25,409 
Fiscal 2020   77,074 
Fiscal 2021   79,615 
Fiscal 2022   54,206 
Total Lease payments   236,304 
Less Imputed interest   21,005 
Present value of lease liabilities  $215,298 

   

Foreign Currency

 

For fiscal year 2019, the Company's principal country of operations is the PRC. The accompanying consolidated financial statements are presented in US$. The functional currency of the Company is US$, and the functional currency of the Company's subsidiaries is RMB. The consolidated financial statements are translated into US$ from RMB at year-end exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. The resulting translation adjustments are recorded as a component of shareholders' equity included in other comprehensive income. Gains and losses from foreign currency transactions are included in profit or loss. There were no gains and losses from foreign currency transactions during the quarter ended September 30, 2019 and 2018.

 

   As of 
   September 30, 2019   December 31, 2018 
RMB: US$ exchange rate   7.1360    6.8764 

 

   Nine months ended
September 30,
 
     2019   2018 
RMB: US$ exchange rate    6.8618    6.6146 
           

 

The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US$ at the rates used in translation.

 

General and administrative costs

 

General and administrative expenses include personnel expenses for executive, finance, and internal support personnel. In addition, general and administrative expenses include fees for bad debt costs, professional legal and accounting services, insurance, office space, banking and merchant fees, and other overhead-related costs.

 

Income Taxes

 

The Company accounts for income taxes pursuant to ASC Topic 740, Income Taxes. Income taxes are provided on an asset and liability approach for financial accounting and reporting of income taxes. Any tax paid by subsidiaries during the year is recorded. Current tax is based on the profit or loss from ordinary activities adjusted for items that are non-assessable or disallowable for income tax purpose and is calculated using tax rates that have been enacted or substantively enacted at the balance sheet date. ASC Topic 740 also requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statements and the tax basis of assets and liabilities, and for the expected future tax benefit to be derived from tax losses and tax credit carry-forwards. ASC Topic 740 additionally requires the establishment of a valuation allowance to reflect the likelihood of realization of deferred tax assets. Realization of deferred tax assets, including those related to the U.S. net operating loss carry-forwards, are dependent upon future earnings, if any, of which the timing and amount are uncertain.

 

The Company adopted ASC Topic 740-10-05, Income Tax, which provides guidance for recognizing and measuring uncertain tax positions. It prescribes a threshold condition that a tax position must meet for any of the benefits of the uncertain tax position to be recognized in the financial statements. It also provides accounting guidance on derecognizing, classification and disclosure of these uncertain tax positions.

 

The Company's policy on classification of all interest and penalties related to unrecognized income tax positions, if any, is to present them as a component of income tax expense.

 

Capital Structure

 

The Company had 2,000,000,000 shares of authorized common stock, par value $0.001 per share, with 1,032,466,000 shares issued and outstanding as of September 30, 2019, and 1,141,472,861 shares issued and outstanding as of December 31, 2018.

 

Earnings (loss) per share

 

Basic net income (loss) per share of common stock attributable to common stockholders is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average shares of common stock outstanding for the period. Potentially dilutive shares, which are based on the weighted-average shares of common stock underlying outstanding stock-based awards, warrants, options, or convertible debt using the treasury stock method or the if-converted method, as applicable, are included when calculating diluted net income (loss) per share of common stock attributable to common stockholders when their effect is dilutive.

 

Potential dilutive securities are excluded from the calculation of diluted EPS in loss periods as their effect would be antidilutive.

 

As of September 30, 2019 and December 31, 2018, there were no potentially dilutive shares.

 

   For the Quarter Ended September 30, 
   2019   2018 
Statement of Operations Summary Information:        
Net loss  $(395,913)  $(147,797)
Weighted-average common shares outstanding - basic and diluted   1,660,239,731    636,661,604 
Net loss per share, basic and diluted  $(0.00)  $(0.00)
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Advances from Customers (Details Textual)
Oct. 15, 2019
Subsequent Event [Member]  
Advances from customers,description JSEL entered into a clinical cooperation agreement (the "Clinical Cooperation Agreement") with Shenzhen Saikun Biotechnology Co., Ltd. ("Saikun"). Pursuant to the Clinical Cooperation Agreement, Saikun agreed to pay JSEL 5.5 million RMB as the total preordering payment. 1.5 million RMB and 1.5 million RMB were delivered to JSEL respectively on September 7 and September 27, 2019. The parties are working on the timing for payment of the remaining 2.5 million RMB due under the Clinical Cooperation Agreement. In exchange, JSEL is obligated to purchase all the components of a Chamber from Kangzi, fully assemble it, and conduct a clinical trial with Saikun, third-party hospital partners, and patients using the Chamber. Specifically, after receiving the full amount of payment from Saikun, JSEL shall transport the Chamber to its preferred location, properly install it, and conduct a clinical trial that lasts at least one month.
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Operating Lease Right-of-Use Asset and Liabilities (Details) - USD ($)
Sep. 30, 2019
Sep. 01, 2019
Dec. 31, 2018
Operating lease right-of-use asset $ 209,587 $ 215,298
Office space [Member]      
Operating lease right-of-use asset $ 209,587  
XML 23 R48.htm IDEA: XBRL DOCUMENT v3.19.3
Equity (Details) - USD ($)
1 Months Ended 9 Months Ended
Sep. 11, 2018
Apr. 13, 2018
Mar. 12, 2018
Apr. 18, 2018
Sep. 30, 2019
Mar. 15, 2019
Dec. 31, 2018
Oct. 30, 2018
Jul. 30, 2018
Equity (Textual)                  
Increase authorized shares of common stock shares minimum                 150,000,000
Increase authorized shares of common stock shares maximum                 2,000,000,000
Reverse split, description The Nevada Secretary of State approved the Company's certificate of amendment to amend its Articles of Incorporation to effectuate a 100-for-1 forward stock split.   The Board of Directors, with the consent of the majority shareholder, voted for a 1-for-464 reverse stock split. On April 11, 2018 the reverse split became effective.   All common share amounts and per share amounts in the financial statements and disclosures have been presented giving effect to the 1-for-464 reverse split that became effective on April 11, 2018, and the 100-for-1 forward stock split that became effective on September 11, 2018.        
Shares of common stock in exchange for reduction in related party payable   1,000,000,000              
Par value of common stock         $ 0.001   $ 0.001    
Common stock, shares issued         1,032,466,000   1,141,472,861    
Common stock, shares outstanding         1,032,466,000   1,141,472,861    
Common Stock [Member] | Minimum [Member]                  
Equity (Textual)                  
Par value of common stock $ 0.001                
Common stock, shares issued 10,324,660                
Common stock, shares outstanding 10,324,660                
Common Stock [Member] | Maximum [Member]                  
Equity (Textual)                  
Par value of common stock $ 0.001                
Common stock, shares issued 1,032,466,000                
Common stock, shares outstanding 1,032,466,000                
Share Cancellation Agreement [Member]                  
Equity (Textual)                  
Common stock, shares issued           109,006,861   109,006,861  
Share Purchase Agreement [Member]                  
Equity (Textual)                  
Purchaser acquired shares       1,021,051,700          
Purchaser acquired shares percentage       98.91%          
Aggregate purchase price       $ 335,000          
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The Company and Significant Accounting Policies (Details 1)
Sep. 01, 2019
Accounting Policies [Abstract]  
Weighted Average Remaining Lease Term(Year) 3 years
Weighted Average Discount Rate 4.75%
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Cash and Cash Equivalents (Tables)
9 Months Ended
Sep. 30, 2019
Cash and Cash Equivalents [Abstract]  
Schedule of cash and cash equivalents

   As of September 30,
2019
   As of December 31,
2018
 
         
Bank Deposits-China & HK   452,318    37,555 
   $452,318   $37,555 

XML 26 R25.htm IDEA: XBRL DOCUMENT v3.19.3
Operating Lease Right-of-Use Asset and Liabilities (Tables)
9 Months Ended
Sep. 30, 2019
Leases [Abstract]  
Schedule of right-of-use asset

    As of
September 30,
2019
    As of
December 31,
2018
 
             
Operating lease right-of-use asset     209,587         -  
    $ 209,587     $ -  

 

    As of
September 30,
2019
    As of
December 31,
2018
 
             
Operating lease liability - current portion     (66,473 )          -  
Operating lease liability     (143,325 )     -  
    $ (209,798 )   $ -  

 

    September 1, 2019  
Weighted Average Remaining Lease Term (Year)     3  
Weighted Average Discount Rate     4.75 %

Schedule of maturities of lease liabilities
   Operating Leases 
Fiscal 2019   25,409 
Fiscal 2020   77,074 
Fiscal 2021   79,615 
Fiscal 2022   54,206 
Total Lease payments   236,304 
Less Imputed interest   21,005 
Present value of lease liabilities  $215,298 
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Consolidated Balance Sheets (Unaudited) - USD ($)
Sep. 30, 2019
Dec. 31, 2018
Current Assets    
Cash and cash equivalents $ 452,318 $ 37,555
Other receivables 24,566 21,324
Advances to suppliers 81,431
Inventory 311,134
Total current assets 869,449 58,879
Non-current Assets    
Operating lease right-of-use asset 209,587
Total non-current assets 209,587
Total Assets 1,079,036 58,879
Current Liabilities    
Accounts payable and accrued expenses 111,718 16,628
Advances from customers [1] 420,406
Income tax and other taxes payable 22 23
Operating lease liability - current portion 66,473
Related party payables 957,409 279,464
Total current liabilities 1,556,028 296,115
Noncurrent liabilities    
Operating lease liability 143,325
Total noncurrent liabilities 143,325
Total Liabilities 1,699,353 296,115
Stockholders' Deficit    
Common stock ($0.001 par value, 2,000,000,000 shares authorized, 1,032,466,000 and 1,141,472,861 shares issued and outstanding respectively as of September 30, 2019 and December 31, 2018, respectively) 1,032,466 1,141,473
Shares to be cancelled (109,007)
Additional paid-in capital 17,149,050 17,149,050
Accumulated other comprehensive income 16,945 2,567
Accumulated deficit (18,778,535) (18,421,319)
Stockholders' equity - HYBT and Subsidiaries (580,074) (237,236)
Noncontrolling interests in subsidiaries (40,243)
Total stockholders' deficit (620,317) (237,236)
Total Liabilities and Stockholders' Deficit $ 1,079,036 $ 58,879
[1] On October 15 2019, JSEL entered into a clinical cooperation agreement (the "Clinical Cooperation Agreement") with Shenzhen Saikun Biotechnology Co., Ltd. ("Saikun"). Pursuant to the Clinical Cooperation Agreement, Saikun agreed to pay JSEL 5.5 million RMB as the total preordering payment. 1.5 million RMB and 1.5 million RMB were delivered to JSEL respectively on September 7 and September 27, 2019. The parties are working on the timing for payment of the remaining 2.5 million RMB due under the Clinical Cooperation Agreement. In exchange, JSEL is obligated to purchase all the components of a Chamber from Kangzi, fully assemble it, and conduct a clinical trial with Saikun, third-party hospital partners, and patients using the Chamber. Specifically, after receiving the full amount of payment from Saikun, JSEL shall transport the Chamber to its preferred location, properly install it, and conduct a clinical trial that lasts at least one month.
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Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES    
Net Loss $ (395,913) $ (147,797)
Change in assets and liabilities    
Other receivables (3,242)
Advances to suppliers (81,431)
Inventory (311,134)
Operating lease right-of-use asset (209,587)
Accounts payable and accrued liabilities 95,090 (9,677)
Advances from customers 420,406
Income tax and other taxes payable (1)
Lease liability 209,798
Net cash used from operating activities (276,014) (157,474)
CASH FLOWS FROM INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from related party lending 677,945 157,474
Net cash used in financing activities 677,945 157,474
Effect of exchange rate changes on cash 12,832
NET INCREASE IN CASH AND CASH EQUIVALENTS 414,763
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 37,555
CASH AND CASH EQUIVALENTS AT END OF PERIOD 452,318
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION    
Cash paid for interest
Cash paid for income tax
Non-cash activities    
Shares issued for repayment of debt   10,000
Related party forgiveness of debt   $ 52,087
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Income Taxes (Details)
9 Months Ended
Sep. 30, 2019
CHINA [Member]  
Income Taxes (Textual)  
Income tax rate 25.00%
HONG KONG [Member]  
Income Taxes (Textual)  
Income tax rate 16.50%
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Accrued Expenses and Other Payables (Details) - USD ($)
Sep. 30, 2019
Dec. 31, 2018
Payables and Accruals [Abstract]    
Accrued payroll $ 35,633 $ 7,589
Other Payables 76,085 9,039
Total accounts payable and accrued expenses $ 111,718 $ 16,628
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Operating Lease Right-of-Use Asset and Liabilities (Details 1) - USD ($)
Sep. 30, 2019
Sep. 01, 2019
Dec. 31, 2018
Notes To Financial Statements Abstract      
Operating lease liability - current portion $ 66,473  
Operating lease liability 143,325  
Total $ 209,798 $ 215,298  
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The Company and Significant Accounting Policies (Tables)
9 Months Ended
Sep. 30, 2019
Accounting Policies [Abstract]  
Schedule of details of the consolidating subsidiaries

Name of Company  Place of
incorporation
  Attributable
equity
interest %
 
HP Technology Limited  British Virgin Islands   100%
         
Heyu Healthcare Technology Limited  Hong Kong   100%
         
JSEL  The PRC   100%
         
Kangzi  The PRC   60%

Schedule of lease terms and discount rate

   September 1, 2019 
Weighted Average Remaining Lease Term(Year)   3 
Weighted Average Discount Rate   4.75%
Schedule of future minimum lease payments under operating leases
   Operating Leases 
Fiscal 2019   25,409 
Fiscal 2020   77,074 
Fiscal 2021   79,615 
Fiscal 2022   54,206 
Total Lease payments   236,304 
Less Imputed interest   21,005 
Present value of lease liabilities  $215,298 
Schedule of foreign currency transactions

   As of 
   September 30, 2019   December 31, 2018 
RMB: US$ exchange rate   7.1360    6.8764 

 

   Nine months ended
September 30,
 
     2019   2018 
RMB: US$ exchange rate    6.8618    6.6146 
           

Schedule of earnings (loss) per share

   For the Quarter Ended September 30, 
   2019   2018 
Statement of Operations Summary Information:        
Net loss  $(395,913)  $(147,797)
Weighted-average common shares outstanding - basic and diluted   1,660,239,731    636,661,604 
Net loss per share, basic and diluted  $(0.00)  $(0.00)

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Inventory (Tables)
9 Months Ended
Sep. 30, 2019
Inventory Disclosure [Abstract]  
Schedule of inventory

   As of
September 30,
2019
   As of
December 31,
2018
 
         
Raw materials   301,725    - 
Finished goods   9,409    - 
   $311,134   $   - 

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end XML 36 R28.htm IDEA: XBRL DOCUMENT v3.19.3
The Company and Significant Accounting Policies (Details)
9 Months Ended
Sep. 30, 2019
HP Technology Limited [Member]  
Name of Company HP Technology Limited
Place of incorporation British Virgin Islands
Attributable equity interest % 100.00%
Heyu Healthcare Technology Limited [Member]  
Name of Company Heyu Healthcare Technology Limited
Place of incorporation Hong Kong
Attributable equity interest % 100.00%
JSEL [Member]  
Name of Company JSEL
Place of incorporation The PRC
Attributable equity interest % 100.00%
Kangzi [Member]  
Name of Company Kangzi
Place of incorporation The PRC
Attributable equity interest % 60.00%

XML 37 R39.htm IDEA: XBRL DOCUMENT v3.19.3
Inventory (Details) - USD ($)
Sep. 30, 2019
Dec. 31, 2018
Inventory Disclosure [Abstract]    
Raw materials $ 301,725
Finished goods 9,409
Inventory, net $ 311,134
XML 38 R35.htm IDEA: XBRL DOCUMENT v3.19.3
Cash and Cash Equivalents (Details) - USD ($)
Sep. 30, 2019
Dec. 31, 2018
Sep. 30, 2018
Dec. 31, 2017
Cash and cash equivalents $ 452,318 $ 37,555
Bank Deposits-China & HK [Member]        
Cash and cash equivalents $ 452,318 $ 37,555    
XML 39 R31.htm IDEA: XBRL DOCUMENT v3.19.3
The Company and Significant Accounting Policies (Details 3)
Sep. 30, 2019
Dec. 31, 2018
Sep. 30, 2018
US$ exchange rate     6.6146
RMB [Member]      
US$ exchange rate 7.1360 6.8764  
US$ exchange rate 6.8618    
XML 40 R12.htm IDEA: XBRL DOCUMENT v3.19.3
Inventory
9 Months Ended
Sep. 30, 2019
Inventory Disclosure [Abstract]  
INVENTORY

NOTE 6 – INVENTORY

 

Inventory consists of the following:

 

   As of
September 30,
2019
   As of
December 31,
2018
 
         
Raw materials   301,725    - 
Finished goods   9,409    - 
   $311,134   $   - 

  

No impairment was provided for the inventories as of September 30, 2019.

XML 41 R16.htm IDEA: XBRL DOCUMENT v3.19.3
Related Party Transactions
9 Months Ended
Sep. 30, 2019
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 10 – RELATED PARTY TRANSACTIONS

 

As of September 30, 2019, and December 31, 2018, the Company owed related parties $957,409 and $279,464, respectively. As the Company has just started business activities in March 2019, all expenses incurred during this reporting period are paid by a related party. Expenses mainly included auditing, consulting and legal advisory expenses, government registration expenses, and payrolls.

 

A director of the Company provides the property for the use by the Company without charge.

XML 42 R47.htm IDEA: XBRL DOCUMENT v3.19.3
Related Party Transactions (Details) - USD ($)
Sep. 30, 2019
Dec. 31, 2018
Related Party Transactions (Textual)    
Related party payable $ 957,409 $ 279,464
XML 43 R43.htm IDEA: XBRL DOCUMENT v3.19.3
Advances from Customers (Details) - USD ($)
Sep. 30, 2019
Dec. 31, 2018
Notes To Financial Statements Abstract    
Advances from customers [1] $ 420,406
Total $ 420,406
[1] On October 15 2019, JSEL entered into a clinical cooperation agreement (the "Clinical Cooperation Agreement") with Shenzhen Saikun Biotechnology Co., Ltd. ("Saikun"). Pursuant to the Clinical Cooperation Agreement, Saikun agreed to pay JSEL 5.5 million RMB as the total preordering payment. 1.5 million RMB and 1.5 million RMB were delivered to JSEL respectively on September 7 and September 27, 2019. The parties are working on the timing for payment of the remaining 2.5 million RMB due under the Clinical Cooperation Agreement. In exchange, JSEL is obligated to purchase all the components of a Chamber from Kangzi, fully assemble it, and conduct a clinical trial with Saikun, third-party hospital partners, and patients using the Chamber. Specifically, after receiving the full amount of payment from Saikun, JSEL shall transport the Chamber to its preferred location, properly install it, and conduct a clinical trial that lasts at least one month.
XML 44 R8.htm IDEA: XBRL DOCUMENT v3.19.3
Going Concern
9 Months Ended
Sep. 30, 2019
Going Concern [Abstract]  
GOING CONCERN

NOTE 2 – GOING CONCERN

 

During the quarter ended September 30, 2019, the Company had been unable to generate cash flows sufficient to support its operations despite of Kangzi's business operation and had been dependent on related party advances from the current controlling shareholder. In addition, the Company had experienced recurring net losses, and had an accumulated deficit of $18,778,535 and working capital deficit of $686,579 as of September 30, 2019. These factors raise doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments related to the recoverability or classification of asset-carrying amounts or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern.

 

There can be no assurance that sufficient funds required during the next year or thereafter will be generated from any future operations or that funds will be available from external sources such as debt or equity financings or other potential sources. If the Company is unable to raise capital from external sources when required, there would be a material adverse effect on its business. Furthermore, there can be no assurance that any such required funds, if available, will be available on attractive terms or that they will not have a significant dilutive effect on the Company's existing stockholders. Management is now seeking an operating company with which to merge or acquire. In the foreseeable future, the Company will rely on related parties, such as its controlling shareholder, to provide advances to funds general corporate purposes and any potential acquisitions of profitable investments. There is no assurance, however, that the Company will achieve its objectives or goals.

XML 45 R4.htm IDEA: XBRL DOCUMENT v3.19.3
Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Income Statement [Abstract]        
Revenue, net $ 7,387 $ 57,317
Cost of Revenue 3,666 31,938
Gross Profit 3,721 25,379
Operating expenses        
Selling expenses 5,992 7,377
Administrative expenses 202,505 125,957 412,207
Total operating expenses 208,497 125,957 419,584 147,797
Loss on operations (204,776) (125,957) (394,205) (147,797)
Other Income(Expenses) (370) (1,708)  
Loss on operations before income taxes (205,146) (125,957) (395,913) (147,797)
Income tax expense  
Net Loss (205,146) (125,957) (395,913) (147,797)
Loss attributable to noncontrolling interests (20,455) (38,697)
Net loss attributable to HYBT shareholders (184,691) (125,957) (357,216) (147,797)
Other Comprehensive Income        
Foreign currency translation adjustment 12,506 15,924
Total Comprehensive Loss (172,185) (125,957) (341,292) (147,797)
Total comprehensive income attributable to noncontrolling interests (1,320) (1,546)
Total comprehensive loss attributable to HYBT shareholders $ (173,505) $ (125,957) $ (342,838) $ (147,797)
Net loss per share - basic and diluted $ (0.00) $ 0.00 $ (0.00) $ (0.00)
Weighted average shares - basic and diluted 1,019,289,346 1,032,266,000 1,660,239,731 636,661,604
XML 46 R22.htm IDEA: XBRL DOCUMENT v3.19.3
Other Receivable (Tables)
9 Months Ended
Sep. 30, 2019
Other Receivable [Abstract]  
Schedule of other receivable

   As of September 30,
2019
   As of December 31,
2018
 
         
Fujian Shanzhiling Biological Technology Co., Ltd.    -        21,324  
Others   24,566    - 
   $24,566   $21,324 

XML 47 R26.htm IDEA: XBRL DOCUMENT v3.19.3
Advances from Customers (Tables)
9 Months Ended
Sep. 30, 2019
Advances from Customers [Abstract]  
Schedule of Advances from Customers

    As of
September 30,
2019
    As of
December 31,
2018
 
             
Advances from customers(1)     420,406            -  
    $ 420,406     $ -  

  

(1) On October 15 2019, JSEL entered into a clinical cooperation agreement (the "Clinical Cooperation Agreement") with Shenzhen Saikun Biotechnology Co., Ltd. ("Saikun"). Pursuant to the Clinical Cooperation Agreement, Saikun agreed to pay JSEL 5.5 million RMB as the total preordering payment. 1.5 million RMB and 1.5 million RMB were delivered to JSEL respectively on September 7 and September 27, 2019. The parties are working on the timing for payment of the remaining 2.5 million RMB due under the Clinical Cooperation Agreement. In exchange, JSEL is obligated to purchase all the components of a Chamber from Kangzi, fully assemble it, and conduct a clinical trial with Saikun, third-party hospital partners, and patients using the Chamber. Specifically, after receiving the full amount of payment from Saikun, JSEL shall transport the Chamber to its preferred location, properly install it, and conduct a clinical trial that lasts at least one month.

XML 49 R18.htm IDEA: XBRL DOCUMENT v3.19.3
Income Taxes
9 Months Ended
Sep. 30, 2019
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 12 – INCOME TAXES

 

The Company is subject to U.S. Federal tax laws. The Company has not recognized an income tax benefit for its operating losses in the United States because the Company does not expect to commence active operations in the United States.

 

Heyu Healthcare Technology Limited was incorporated in Hong Kong and is subject to Hong Kong profits tax at a tax rate of 16.5%. Since Heyu Healthcare Technology Limited had no taxable income during the reporting period, it has not paid Hong Kong profits taxes. Heyu Healthcare Technology Limited has not recognized an income tax benefit for its operating losses in Hong Kong because the Company does not expect to commence active operations in Hong Kong.

 

The Company has been conducting and plans to continue to conduct its major operations in the PRC through JSEL in accordance with the relevant tax laws and regulations. The corporate income tax rate in China is 25%. The Company has not paid PRC profits taxes, since it had no taxable income during the reporting period.

XML 50 R10.htm IDEA: XBRL DOCUMENT v3.19.3
Other Receivable
9 Months Ended
Sep. 30, 2019
Other Receivable [Abstract]  
OTHER RECEIVABLE

NOTE 4 – OTHER RECEIVABLE

 

Other receivable consists of the following:

 

   As of September 30,
2019
   As of December 31,
2018
 
         
Fujian Shanzhiling Biological Technology Co., Ltd.    -        21,324  
Others   24,566    - 
   $24,566   $21,324 

 

On October 8, 2018, the Company entered into a non-binding letter of intent with Fujian Shanzhiling Biological Technology Co., Ltd. (the "Acquirer"), a Chinese biotechnology product manufacturing corporation, whereby the Acquirer agreed to acquire 51% of the outstanding capital of the Company subject to certain adjustment provisions (the "Shanzhiling Acquisition"). As of the date of this report, the Company has terminated the agreements related to Shanzhiling Acquisition; therefore, the related balance in the amount of $24,499 has been written off during the quarter ended September 30, 2019.

XML 51 R14.htm IDEA: XBRL DOCUMENT v3.19.3
Advances from Customers
9 Months Ended
Sep. 30, 2019
Advances from Customers [Abstract]  
ADVANCES FROM CUSTOMERS

NOTE 8 – ADVANCES FROM CUSTOMERS

  

   As of
September 30,
2019
   As of
December 31,
2018
 
         
Advances from customers(1)   420,406         - 
   $420,406   $- 

  

(1) On October 15 2019, JSEL entered into a clinical cooperation agreement (the "Clinical Cooperation Agreement") with Shenzhen Saikun Biotechnology Co., Ltd. ("Saikun"). Pursuant to the Clinical Cooperation Agreement, Saikun agreed to pay JSEL 5.5 million RMB as the total preordering payment. 1.5 million RMB and 1.5 million RMB were delivered to JSEL respectively on September 7 and September 27, 2019. The parties are working on the timing for payment of the remaining 2.5 million RMB due under the Clinical Cooperation Agreement. In exchange, JSEL is obligated to purchase all the components of a Chamber from Kangzi, fully assemble it, and conduct a clinical trial with Saikun, third-party hospital partners, and patients using the Chamber. Specifically, after receiving the full amount of payment from Saikun, JSEL shall transport the Chamber to its preferred location, properly install it, and conduct a clinical trial that lasts at least one month.
XML 52 R37.htm IDEA: XBRL DOCUMENT v3.19.3
Other Receivable (Details Textual) - Fujian Shanzhiling Biological Technology Co., Ltd [Member] - USD ($)
9 Months Ended
Oct. 08, 2018
Sep. 30, 2019
Other Receivable (Textual)    
Acquirer agreed to acquire outstanding capital percentage 51.00%  
Acquisition related amount   $ 24,499
XML 53 R33.htm IDEA: XBRL DOCUMENT v3.19.3
The Company and Significant Accounting Policies (Details Textual) - USD ($)
1 Months Ended
Apr. 18, 2018
Sep. 30, 2019
Sep. 01, 2019
Jan. 17, 2019
Dec. 31, 2018
The Company and Significant Accounting Policies (Textual)          
Common stock, par value   $ 0.001     $ 0.001
Common stock, shares authorized   2,000,000,000     2,000,000,000
Common stock, shares issued   1,032,466,000     1,141,472,861
Common stock, shares outstanding   1,032,466,000     1,141,472,861
operating lease right-of-use, assets   $ 209,587 $ 215,298  
operating lease right-of-use, lease liabilities   $ 209,798 $ 215,298    
Shanghai Kangzi Medical Technology Co., Ltd [Member]          
The Company and Significant Accounting Policies (Textual)          
Percentage of issued and outstanding shares of common stock       90.00%  
JSEL [Member]          
The Company and Significant Accounting Policies (Textual)          
Percentage of issued and outstanding shares of common stock       60.00%  
Share Purchase Agreement [Member]          
The Company and Significant Accounting Policies (Textual)          
Percentage of issued and outstanding shares of common stock 98.91%        
Aggregate purchase price $ 335,000        
Purchaser acquired shares 1,021,051,700        
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A0#% @ @F-N3\.FTH,% @ R 4 !D M ( !&6@ 'AL+W=O&PO=V]R:W-H M965T&UL4$L! M A0#% @ @F-N3QIZW_+H 0 [00 !D ( !8VX 'AL M+W=O&PO=V]R:W-H965T&UL4$L! A0#% @ @F-N M3UAM_P=A P VP\ !D ( !G'0 'AL+W=O >&PO=V]R:W-H965T&UL4$L! A0#% @ @V-N3W0* M=J4*! MR \ ( !&ZX 'AL+W=O : " 5*R !X M;"]?7!E&UL 64$L%!@ Z #H R \ %.V $! end XML 55 R11.htm IDEA: XBRL DOCUMENT v3.19.3
Advances to Suppliers
9 Months Ended
Sep. 30, 2019
Advances to Suppliers [Abstract]  
ADVANCES TO SUPPLIERS

NOTE 5 – ADVANCES TO SUPPLIERS

 

Advances to suppliers consists of the following:

 

   As of
September 30,
2019
   As of
December 31,
2018
 
         
Prepayment for purchase of raw materials   81,431    - 
   $81,431   $  0 

XML 56 R15.htm IDEA: XBRL DOCUMENT v3.19.3
Accrued Expenses and Other Payables
9 Months Ended
Sep. 30, 2019
Payables and Accruals [Abstract]  
ACCRUED EXPENSES AND OTHER PAYABLES

NOTE 9 – ACCRUED EXPENSES AND OTHER PAYABLES

 

Accrued expenses and other payables consist of the following:

 

   As of
September 30,
2019
   As of
December 31,
2018
 
         
Accrued payroll   35,633    7,589 
Other Payables   76,085    9,039 
   $111,718   $16,628 

 

Accrued payroll includes all company employee payroll liabilities as of September 30, 2019, and other payables contains employee reimbursements.

 

Operating lease liability consist both current and noncurrent component as the following:

 

   As of
September 30,
2019
   As of
December 31,
2018
 
         
Operating lease liability - current portion   (66,473)   - 
Operating lease liability   (143,325)        - 
   $(209,798)  $- 
XML 57 R19.htm IDEA: XBRL DOCUMENT v3.19.3
The Company and Significant Accounting Policies (Policies)
9 Months Ended
Sep. 30, 2019
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

 

The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP"). The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation.

 

The condensed consolidated financial statements of the Company as of and for the three and nine months ended September 30, 2019 and 2018 are unaudited. In the opinion of management, all adjustments (including normal recurring adjustments) that have been made are necessary to fairly present the financial position of the Company as of September 30, 2019, the results of its operations for the three and nine months ended September 30, 2019 and 2018, and its cash flows for the nine months ended September 30, 2019 and 2018. Operating results for the interim periods presented are not necessarily indicative of the results to be expected for a full fiscal year. The balance sheet as of December 31, 2018 has been derived from the Company's audited financial statements included in the Form 10-K for the year ended December 31, 2018.

 

The statements and related notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the financial statements and other information included in the Company's Annual Report on Form 10-K as filed with the SEC for the fiscal year ended December 31, 2018. 

 

As of September 30, 2019, the details of the consolidating subsidiaries are as follows:

 

Name of Company  Place of
incorporation
  Attributable
equity
interest %
 
HP Technology Limited  British Virgin Islands   100%
         
Heyu Healthcare Technology Limited  Hong Kong   100%
         
JSEL  The PRC   100%
         
Kangzi  The PRC   60%
Use of Estimates

Use of Estimates

 

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Management believes that the estimates used in preparing the financial statements are reasonable and prudent; however, actual results could differ from these estimates. Significant estimates include the allowance for doubtful accounts, impairment assessments of goodwill, valuation of deferred tax assets, rebilling collections and certain accrued liabilities such as contingent liabilities.

Cash Equivalents

Cash Equivalents

 

The Company considers all highly liquid debt instruments purchased with a maturity period of three months or less to be cash or cash equivalents. The carrying amounts reported in the accompanying unaudited condensed consolidated balance sheets for cash and cash equivalents approximate their fair value. All of the Company's cash that is held in bank accounts in the PRC and Hong Kong is not protected by Federal Deposit Insurance Corporation ("FDIC") insurance or any other similar insurance in the PRC, or Hong Kong.

Inventories

Inventories

 

Inventories are stated at the lower of cost or market value. The Company applies the weighted average cost method to its inventory.

Leases

Leases

 

The Company adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02), as amended, which supersedes the lease accounting guidance under Topic 840, and generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use (ROU) assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements.

 

Operating leases are included in operating lease right-of-use ("ROU") assets and short-term and long-term lease liabilities in our consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in our consolidated balance sheets.

 

ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the leases do not provide an implicit rate, we use the industry incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

 

Adoption of the standard resulted in the initial recognition of $215,298 of ROU assets and $215,298 of lease liabilities on our consolidated balance sheet related to office space lease commitment on September 1, 2019.

  

ASU 2016-02 requires that public companies use a secured incremental browning rate for the present value of lease payments when the rate implicit in the contract is not readily determinable. We determine a secured rate on a quarterly basis and update the weighted average discount rate accordingly. Lease terms and discount rate follow.

 

   September 1, 2019 
Weighted Average Remaining Lease Term(Year)   3 
Weighted Average Discount Rate   4.75%

  

The approximate future minimum lease payments under operating leases as:

 

   Operating Leases 
Fiscal 2019   25,409 
Fiscal 2020   77,074 
Fiscal 2021   79,615 
Fiscal 2022   54,206 
Total Lease payments   236,304 
Less Imputed interest   21,005 
Present value of lease liabilities  $215,298 
Foreign Currency

Foreign Currency

 

For fiscal year 2019, the Company's principal country of operations is the PRC. The accompanying consolidated financial statements are presented in US$. The functional currency of the Company is US$, and the functional currency of the Company's subsidiaries is RMB. The consolidated financial statements are translated into US$ from RMB at year-end exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. The resulting translation adjustments are recorded as a component of shareholders' equity included in other comprehensive income. Gains and losses from foreign currency transactions are included in profit or loss. There were no gains and losses from foreign currency transactions during the quarter ended September 30, 2019 and 2018.

 

   As of 
   September 30, 2019   December 31, 2018 
RMB: US$ exchange rate   7.1360    6.8764 

 

   Nine months ended
September 30,
 
     2019   2018 
RMB: US$ exchange rate    6.8618    6.6146 
           

 

The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US$ at the rates used in translation.

General and administrative costs

General and administrative costs

 

General and administrative expenses include personnel expenses for executive, finance, and internal support personnel. In addition, general and administrative expenses include fees for bad debt costs, professional legal and accounting services, insurance, office space, banking and merchant fees, and other overhead-related costs.

Income Taxes

Income Taxes

 

The Company accounts for income taxes pursuant to ASC Topic 740, Income Taxes. Income taxes are provided on an asset and liability approach for financial accounting and reporting of income taxes. Any tax paid by subsidiaries during the year is recorded. Current tax is based on the profit or loss from ordinary activities adjusted for items that are non-assessable or disallowable for income tax purpose and is calculated using tax rates that have been enacted or substantively enacted at the balance sheet date. ASC Topic 740 also requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statements and the tax basis of assets and liabilities, and for the expected future tax benefit to be derived from tax losses and tax credit carry-forwards. ASC Topic 740 additionally requires the establishment of a valuation allowance to reflect the likelihood of realization of deferred tax assets. Realization of deferred tax assets, including those related to the U.S. net operating loss carry-forwards, are dependent upon future earnings, if any, of which the timing and amount are uncertain.

 

The Company adopted ASC Topic 740-10-05, Income Tax, which provides guidance for recognizing and measuring uncertain tax positions. It prescribes a threshold condition that a tax position must meet for any of the benefits of the uncertain tax position to be recognized in the financial statements. It also provides accounting guidance on derecognizing, classification and disclosure of these uncertain tax positions.

 

The Company's policy on classification of all interest and penalties related to unrecognized income tax positions, if any, is to present them as a component of income tax expense.

Capital Structure

Capital Structure

 

The Company had 2,000,000,000 shares of authorized common stock, par value $0.001 per share, with 1,032,466,000 shares issued and outstanding as of September 30, 2019, and 1,141,472,861 shares issued and outstanding as of December 31, 2018.

Earnings (loss) per share

Earnings (loss) per share

 

Basic net income (loss) per share of common stock attributable to common stockholders is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average shares of common stock outstanding for the period. Potentially dilutive shares, which are based on the weighted-average shares of common stock underlying outstanding stock-based awards, warrants, options, or convertible debt using the treasury stock method or the if-converted method, as applicable, are included when calculating diluted net income (loss) per share of common stock attributable to common stockholders when their effect is dilutive.

 

Potential dilutive securities are excluded from the calculation of diluted EPS in loss periods as their effect would be antidilutive.

 

As of September 30, 2019 and December 31, 2018, there were no potentially dilutive shares.

 

   For the Quarter Ended September 30, 
   2019   2018 
Statement of Operations Summary Information:        
Net loss  $(395,913)  $(147,797)
Weighted-average common shares outstanding - basic and diluted   1,660,239,731    636,661,604 
Net loss per share, basic and diluted  $(0.00)  $(0.00)
XML 58 R36.htm IDEA: XBRL DOCUMENT v3.19.3
Other Receivable (Details) - USD ($)
Sep. 30, 2019
Dec. 31, 2018
Other receivables $ 24,566 $ 21,324
Fujian Shanzhiling Biological Technology Co., Ltd. [Member]    
Other receivables 21,324
Others [Member]    
Other receivables $ 24,566
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The Company and Significant Accounting Policies (Details 4) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Statement of Operations Summary Information:        
Net loss $ (184,691) $ (125,957) $ (357,216) $ (147,797)
Weighted average shares - basic and diluted 1,019,289,346 1,032,266,000 1,660,239,731 636,661,604
Net loss per share, basic and diluted $ (0.00) $ 0.00 $ (0.00) $ (0.00)
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Accrued Expenses and Other Payables (Details 1) - USD ($)
Sep. 30, 2019
Sep. 01, 2019
Dec. 31, 2018
Notes To Financial Statements Abstract      
Operating lease liability - current portion $ 66,473  
Operating lease liability 143,325  
Total $ 209,798 $ 215,298  
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Operating Lease Right-of-Use Asset and Liabilities (Details 2)
Sep. 30, 2019
USD ($)
Notes To Financial Statements Abstract  
Fiscal 2019 $ 25,409
Fiscal 2020 77,074
Fiscal 2021 79,615
Fiscal 2022 54,206
Total Lease payments 236,304
Less Imputed interest 21,005
Present value of lease liabilities $ 215,298
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Document and Entity Information - shares
9 Months Ended
Sep. 30, 2019
Nov. 12, 2019
Document and Entity Information [Abstract]    
Entity Registrant Name Heyu Biological Technology Corp  
Entity Central Index Key 0001086303  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Type 10-Q  
Document Period End Date Sep. 30, 2019  
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2019  
Entity Current Reporting Status Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Shell Company false  
Entity Emerging Growth Company false  
Entity Ex Transition Period false  
Entity Common Stock, Shares Outstanding   1,032,466,000
Entity File Number 000-26731  
Entity Interactive Data Current Yes  
Entity Incorporation State Country Code NV  
XML 64 R5.htm IDEA: XBRL DOCUMENT v3.19.3
Condensed Consolidated Statements of Stockholders’ Deficit (Unaudited) - USD ($)
Heyu Biological Shareholders’ Equity
Common Stock
Heyu Biological Shareholders’ Equity
Shares to be cancelled
Heyu Biological Shareholders’ Equity
Additional Paid in Capital
Heyu Biological Shareholders’ Equity
Accumulated Other Comprehensive Income
Heyu Biological Shareholders’ Equity
Accumulated Deficit
Non - controlling Interest
Total
Balance at Dec. 31, 2017 $ 150,642 $ 17,968,787 $ (18,173,542) $ (54,113)
Balance, shares at Dec. 31, 2017 150,642,240            
1 for 464 reverse split $ (150,318) 150,318
1 for 464 reverse split, shares (150,317,580)            
1 for 100 split $ 32,141 (32,141)
1 for 100 split, shares 32,141,340            
Common stock issued April 13, 2018 $ 1,000,000 (990,000) 10,000
Common stock issued April 13, 2018, shares 1,000,000,000            
Waiver of payable to ex-shareholder 52,087 52,087
Loss for the period (147,797) (147,797)
Balance at Sep. 30, 2018 $ 1,032,466 17,149,050 (18,321,339) (139,823)
Balance, shares at Sep. 30, 2018 1,032,466,000            
Balance at Dec. 31, 2018 $ 1,141,473 (109,007) 17,149,050 2,567 (18,421,319) (237,236)
Balance, shares at Dec. 31, 2018 1,141,472,861            
Shares cancelled March 20, 2019 $ (109,007) 109,007
Shares cancelled March 20, 2019, shares (109,006,861)            
Foreign currency translation adjustment 14,378 (1,546) 12,832
Loss for the period (357,216) (38,697) (357,216)
Balance at Sep. 30, 2019 $ 1,032,466 $ 17,149,050 $ 16,945 $ (18,778,535) $ (40,243) $ (620,317)
Balance, shares at Sep. 30, 2019 1,032,466,000            
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Cash and Cash Equivalents
9 Months Ended
Sep. 30, 2019
Cash and Cash Equivalents [Abstract]  
CASH AND CASH EQUIVALENTS

NOTE 3 – CASH AND CASH EQUIVALENTS

 

Cash and cash equivalents consist of the following:

 

   As of September 30,
2019
   As of December 31,
2018
 
         
Bank Deposits-China & HK   452,318    37,555 
   $452,318   $37,555 
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Advances to Suppliers (Tables)
9 Months Ended
Sep. 30, 2019
Advances to Suppliers [Abstract]  
Schedule of advances to suppliers

   As of
September 30,
2019
   As of
December 31,
2018
 
         
Prepayment for purchase of raw materials   81,431    - 
   $81,431   $  0 

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Accrued Expenses and Other Payables (Tables)
9 Months Ended
Sep. 30, 2019
Payables and Accruals [Abstract]  
Schedule of accrued expenses and other payables
   As of
September 30,
2019
   As of
December 31,
2018
 
         
Accrued payroll   35,633    7,589 
Other Payables   76,085    9,039 
   $111,718   $16,628 
Schedule of operating lease liability
   As of
September 30,
2019
   As of
December 31,
2018
 
         
Operating lease liability - current portion   (66,473)   - 
Operating lease liability   (143,325)        - 
   $(209,798)  $-