10-Q

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 March 31, 2022

or

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

Commission File Number: 000-50559

SCIENTIFIC ENERGY, INC.

(Exact name of registrant as specified in its charter)

Utah                                                                   87-0680657

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

27 Weldon Street, Jersey City, New Jersey             07306

(Address of principal executive offices)                  (Zip Code)

(852) 2530-2089

(Registrant's telephone number, including area code)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes [X]     No [   ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes   [X ]    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 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    [X]

Securities registered pursuant to Section 12(b) of the Act:  None.

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Applicable Only to Corporate Issuers

Indicate the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 263,337,500 shares of common stock, par value $0.01, as of May 16, 2022.

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TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements	3
	Condensed Consolidated Balance Sheets as of March 31, 2022 (unaudited) and December 31, 2021	3
	Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three Months Ended March 31, 2022 and 2021 (unaudited)	4
	Condensed Consolidated Statement of Stockholders’ Deficit for the Three Months Ended March 31, 2022 (unaudited)	5
	Condensed Consolidated Statement of Stockholders’ Deficit for the Three Months Ended March 31, 2021 (unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2022 and 2021 (unaudited)	6
	Notes to Condensed Consolidated Financial Statements (unaudited)	7
Item 2.	Management’s Discussion and Analysis of Financial Conditions and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosure about Market Risk	18
Item 4.	Controls and Procedures	18
PART II – OTHER INFORMATION
Item 6.	Exhibits	19
SIGNATURES		19

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Item 1.    Financial Statements

SCIENTIFIC ENERGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
	March 31,	December 31,
	2022	2021
	unaudited
ASSETS
Current assets:
Cash and cash equivalents	$   4,666,521	$   4,920,375
Loan receivables	994,822	997,923
Accounts receivable	753,074	842,917
Other receivables	53,356	66,388
Amount due from related companies	1,217,824	1,377,231
Amount due from joint venture	24,679	24,679
Amount due from shareholder	989,798	942,267
Inventories	368,537	255,287
Prepaid expense	473,376	369,367
Total current assets	9,541,987	9,796,434
Non-current assets:
Property, plant and equipment, net	91,416	77,006
Intangible assets	1,236,512	1,226,001
Goodwill	71,664,639	71,664,639
Operating lease right to use assets	613,995	586,922
Deposits	521,819	525,973
Total non-current assets	74,128,381	74,080,541
Total assets	$ 83,670,368	$ 83,876,975
LIABILITIES AND STOCKHOLDERS' SURPLUS
Current liabilities:
Accounts payable	$   6,324,345	$   6,199,998
Accrued expenses	3,469,272	2,862,306
Amount due to related party	19,940	20,002
Deposit received	1,657,223	1,336,256
Other payables	1,016,329	1,217,427
Bank loans	559,838	566,046
Operating lease liabilities	391,566	400,009
Total current liabilities	13,438,513	12,602,044
Non-current liabilities:
Bank loans	439,668	481,357
Operating lease liability	222,429	186,913
Total non-current liabilities	662,097	668,270
Total liabilities	14,100,610	13,270,314
Commitments and contingencies	-	-
Stockholders' equity:
Preferred stock: par value $0.01 per share; 25,000,000 shares authorized, none issued and outstanding	-	-
Common stock: par value $0.01 per share, 500,000,000 shares authorized, 263,337,500 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively	2,633,375	2,633,375
Additional paid in capital	78,460,638	78,460,638
Accumulated deficit	(11,287,098)	(10,268,776)
Accumulated other comprehensive loss	(119,944)	(114,160)
Total stockholders' surplus	69,686,971	70,711,077
Non-controlling interests	(117,213)	(104,416)
Total liabilities and stockholders' equity	$ 83,670,368	$ 83,876,975
See the accompanying notes to the unaudited condensed consolidated financial statements

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SCIENTIFIC ENERGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited)
	Three months ended March 31,
	2022	2021
REVENUE	$   10,130,661	$                  -
COST OF REVENUE	(7,358,415)	-
GROSS PROFIT	2,772,246	-
OPERATING EXPENSES:
Selling, general and administrative expenses	3,727,060	35,130
Depreciation and amortization	66,959	245
Total operating expenses	3,794,019	35,375
NET LOSS FROM OPERATIONS	(1,021,773)	(35,375)
Other income (expense):
Interest expense, net	(9,346)	(2,924)
Net loss before provision for income taxes	(1,031,119)	(38,299)
Income taxes	-	-
NET LOSS	$    (1,031,119)	$        (38,299)
Net loss attributable to non-controlling interests	12,797	-
Net loss attributable to Scientific Energy, Inc.	$    (1,018,322)	$        (38,299)
OTHER COMPREHENIVE (LOSS) / GAIN:
Foreign translation (loss) gain	(5,784)	439
Comprehensive loss	$    (1,024,106)	$        (37,860)
Net loss per common share, basic and diluted	$         (0.004)	$         (0.000)
Weighted average common shares outstanding, basic and diluted	263,337,500	114,915,852
See the accompanying notes to the unaudited condensed consolidated financial statements

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SCIENTIFIC ENERGY, INC.
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT
THREE MONTHS ENDED MARCH 31, 2022
			Additional		Other	Non-
	Common stock		Paid in	Accumulated	Comprehensive	Controlling
	Shares	Amount	Capital	Deficit	Loss	Interests	Total
Balance, December 31, 2021	263,337,500	$   2,633,375	$ 78,460,638	$ (10,268,776)	$    (114,160)	$    (104,416)	$ 70,606,661
Foreign currency transaction gain	-	-	-	-	(5,784)		(5,784)
Net loss	-	-	-	(1,018,322)	-	(12,797)	(1,031,119)
Balance, March 31, 2022 (unaudited)	263,337,500	$   2,633,375	$ 78,460,638	$ (11,287,098)	$    (119,944)	$    (117,213)	$ 69,569,758
See the accompanying notes to the unaudited condensed consolidated financial statements

SCIENTIFIC ENERGY, INC.
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT
THREE MONTHS ENDED MARCH 31, 2021
			Additional		Other
	Common stock		Paid in	Accumulated	Comprehensive
	Shares	Amount	Capital	Deficit	Loss	Total
Balance, December 31, 2020	114,915,852	$   1,149,159	$   5,734,030	$  (9,301,091)	$         8,097	$  (2,409,805)
Foreign currency transaction gain	-	-	-	-	439	439
Net loss	-	-	-	(38,299)	-	(38,299)
Balance, March 31, 2021 (unaudited)	114,915,852	$   1,149,159	$   5,734,030	$  (9,339,390)	$         8,536	$  (2,447,665)
See the accompanying notes to the unaudited condensed consolidated financial statements

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SCIENTIFIC ENERGY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
	Three months ended March 31, 2022	Three months ended March 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (1,031,119)	$    (38,299)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	11,851	245
Amortization	55,108	-
Loss on disposal of property and equipment	6	-
Account receivables	89,843	-
Inventories	(113,250)	-
Deposits	4,154	38
Prepaid expenses	(104,008)	(19)
Other receivables	13,031	-
Accrued expenses	606,967	-
Deposits received	320,966	-
Other payable	(201,099)	-
Accounts payable	124,347	(1,531)
Net cash used in operating activities	(223,203)	(39,566)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from disposal of subsidiary	-	1
Purchase of property, plant and equipment	(26,293)	-
Purchase of intangible asset	(79,242)	-
Amount due from related company	159,408	-
Amount due from shareholder	(47,530)	-
Amount due to related company	(62)	-
Net cash provided by investing activities	6,281	1
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from subscription received	-	45,641
Repayment of bank borrowings	(47,897)	-
Net cash (used in) / provided by financing activities	(47,897)	45,641
Effect of currency rate changes on cash	10,965	439
Net increase (decrease) in cash and cash equivalents	(253,854)	6,515
Cash and cash equivalents, beginning of period	4,920,375	14,468
Cash and cash equivalents, end of period	$ 4,666,521	$     20,983
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Interest paid	$       9,346	$       2,924
Income taxes paid	$              -	$              -
Non cash financing activities:
Record right to use assets upon adoption of ASC 842	$   613,995	$     38,467
Record lease liabilities upon adoption of ASC 842	$   613,995	$     38,467
See the accompanying notes to the unaudited condensed consolidated financial statements

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SCIENTIFIC ENERGY, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2022

NOTE 1 – ORGANIZATION AND PRINCIPAL ACTIVITIES

Scientific Energy, Inc., (the "Company") was incorporated under the laws of the State of Utah on May 30, 2001.  Prior to August 2011, the Company was principally devoted to the buying and selling of various types and grades of graphite, such as medium- and high-carbon graphite, high-purity graphite, micro-powder graphite and expandable graphite.   In August 2011, the Company decided to engage in a business of e-commerce platform. Currently the Company is in the process of developing a website, which provides an e-commerce platform, where registered members can exchange goods and services.

On March 28, 2006, the Company set up a wholly owned subsidiary, PDI Global Limited (“PDI”), which was incorporated in the British Virgin Islands in order to engage in a business of e-commerce platform.

In January 2008, the Company entered into a joint venture agreement with China Resources Development Group Ltd., a Hong Kong company.  Under the agreement, a joint venture company, Kabond Investments Ltd (the “JVC”), was established in Hong Kong, and the Company invested $39.6 million Hong Kong dollars (approximately $5.09 million) into the JVC for 72% of the JVC’s capital shares, and China Resources Development Group Ltd., jointly with its partner, invested $15.4 million Hong Kong dollars (approximately $1.98 million) into the JVC to receive 28% of the JVC’s capital shares.  In December 2008, all equity interest of the JVC owned by the Company was sold to a third party for $39.6 million Hong Kong dollars (approximately $5,109,743).

In January 2009, the Company through its wholly-owned subsidiary, PDI, entered into a joint venture agreement with China Resources Development Group Ltd.  Under the agreement, the Company agreed to invest $43,040,000 Hong Kong dollars (approximately $5.55 million) into a joint venture company Sinoforte Ltd. in Hong Kong (“Sinoforte”).  The Company got 80% of Sinoforte's capital shares, and China Resources invested $10,222,000 Hong Kong dollars, approximately $1,318,967, and another investor invested $538,000 Hong Kong dollars, or approximately $69,419, into Sinoforte for 19% and 1% of Sinoforte's capital shares, respectively.  The main business of Sinoforte was trading mineral products such as graphite produced in China.  In June 2009 and September 2009, respectively, China Resources and the other minority investor cancelled their investments in Sinoforte, and the full amount of their original investments was returned.  As a result, Sinoforte became a wholly-owned subsidiary of PDI. On December 8, 2020, PDI sold all the shares of Sinoforte to the Company at consideration of HK$10.

On February 28, 2012, the Company set up a wholly-owned subsidiary, Makeliving Ltd., which was incorporated in the Cayman Islands in order to engage in a business of e-commerce platform.

On January 23, 2018, the Company entered into an agreement with Cityhill Limited, a wholly owned subsidiary of South Sea Petroleum Holdings Limited, a Hong Kong listed public company, pursuant to which parties agreed to establish a joint venture (the “Joint Venture”).  Each party owns 50% equity interest in the Joint Venture respectively.

On February 8, 2021, the Company acquired an entire share of a Hong Kong company, Qwestro Limited, for HK$1,000 without any goodwill and bargaining purchase.

On March 24, 2021, the Company disposed of its wholly-owned dormant subsidiary, PDI Global Limited, with a positive net worth of $1 to an unaffiliated third-party purchaser for $1.  

In September 27, 2021, the Company completed the acquisition of 98.75% shares of Macao E-Media Development Company Limited (“MED”). As consideration for the MED shares, the Company agreed to issue the Sellers, or its assigns, in a total of 131,337,500 shares of the Company’s restricted common stock, par value $0.01 per share, at a consideration of $0.50 per share, in the aggregate consideration of $65,668,750 (the “Purchase Price”). As a result of this acquisition, MED becomes a 98.75% owned subsidiary of the Company. MED was founded at Macau in 2011. Its main area of business includes food and grocery order-pickup-delivery services from local restaurants, supermarkets and hotels. MED has four subsidiaries, each of which is in charge of respective area such as Development & Maintenance, Marketing & Operation, Logistics & Delivery, Payment & Clearance, Emerging Market Business Development.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying audited consolidated financial statements of the Company are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). In the opinion of management, all adjustments (consisting of normal recurring adjustments) have been made that are necessary to present fairly the financial position, and the results of its operations and its cash flows. Operating results as presented are not necessarily indicative of the results to be expected for a full year.

The Company's consolidated financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The continuation of the Company as a going concern is dependent upon the ability of the Company to generate enough revenues and/or obtain necessary equity financing to continue operations and the attainment of profitable operations.

The accompanying consolidated financial statements present the financial position and the results of operations of the Company and its majority-owned subsidiaries, Macao E-Media Development Company Limited, Makeliving, Ltd. and Sinoforte Limited.  Qwestro Limited, in turn, is the 100% owned subsidiary and consolidates with Sinoforte Limited.

All significant intercompany transactions and balances have been eliminated in consolidation.

Business Combinations

The Company accounts for acquisition of entities that include inputs and processes and has the ability to create outputs as business combinations. The Company allocates the purchase price of the acquisition to the tangible assets, liabilities and identifiable intangible assets acquired based on their estimated fair values. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and integration costs are expensed as incurred.

Interim Financial Statements

The following (a) condensed consolidated balance sheet as of December 31, 2021, which has been derived from audited financial statements, and (b) the unaudited condensed consolidated interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2022 are not necessarily indicative of results that may be expected for the year ending December 31, 2022. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on April 15, 2022.

The Company recognizes revenue when: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed or determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related revenue is recorded.

The Company defers any revenue for which the product has not been delivered or services have not been rendered or are subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or services have been rendered or no refund will be required.

Revenues on the sale of products, net of estimated costs of returns and allowance, are recognized at the time products are shipped to customers, legal title has passed, and all significant contractual obligations of the Company have been satisfied. Products are generally sold on open accounts under credit terms customary to the geographic region of distribution. The Company performs ongoing credit evaluations of the customers and generally does not require collateral to secure the accounts receivable.

The Company is operating mobile platform of ordering and delivery services for restaurants and supermarket in Macau, together recognizing revenue on closed transactions.

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Segment information

ASC 280-10 establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information for those segments to be presented in interim financial reports issued to stockholders. ASC 280-10 also establishes standards for related disclosures about products and services and geographic areas. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision-making group, in making decisions how to allocate resources and assess performance.  All sales and substantial assets of the Company are in Macao. The Company applies the management approach to the identification of our reportable operating segments as provided in accordance with ASC 280-10.  The information disclosed herein materially represents all of the financial information related to the Company’s principal operating segment.

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

Concentration of Credit Risk

The Company’s financial instruments that are exposed to a concentration of credit risk are cash and accounts receivable.  Generally, the Company’s cash and cash equivalents in interest-bearing accounts may exceed FDIC insurance limits. The financial stability of these institutions is periodically reviewed by senior management.

As of March 31, 2022, and December 31, 2021, the Company maintained $4,648,529 and $4,899,488 in foreign bank accounts not subject to FDIC coverage.

The Company has no significant off-balance-sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements.

Cash and Cash Equivalents

For purposes of the statements of cash flows, cash and cash equivalents include cash on hand and demand deposits held by banks.

Comprehensive Income (Loss)

The Company adopted Accounting Standards Codification subtopic 220-10, Comprehensive Income (“ASC 220-10”) which establishes standards for the reporting and displaying of comprehensive income and its components. Comprehensive income is defined as the change in equity of a business during a period from transactions and other events and circumstances from non-owners sources.  It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. ASC 220-10 requires other comprehensive income (loss) to include foreign currency translation adjustments.

Foreign Currency Translation

The Company translates the foreign currency consolidated financial statements into US Dollars (“USD”) using the year or reporting period-end or average exchange rates in accordance with the requirements of Accounting Standards Codification subtopic 830-10, Foreign Currency Matters (“ASC 830-10”).  Assets and liabilities of these subsidiaries were translated at exchange rates as of the balance sheet date.  Revenues and expenses are translated at average rates in effect for the periods presented.

The consolidated financial statements were presented in US Dollars except as other specified.

The cumulative translation adjustment is included in the accumulated other comprehensive gain (loss) within stockholders’ equity (deficit).  Foreign currency transaction gains and losses arising from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the consolidated results of operations.

The exchange rates used to translate amounts in HKD and MOP into US Dollars for the purposes of preparing the consolidated financial statements were as follows:

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	March 31,	December 31,
	2022	2021
Exchange rate on balance sheet dates
USD : HKD exchange rate	7.8235	7.7992
USD : MOP exchange rate	8.0582	8.0332
	For the three months ended March 31,
	2022	2021
Average exchange rate for the period
USD : HKD exchange rate	7.8049	7.7576
USD : MOP exchange rate	8.0390	N/A

Property, plant and equipment

The estimated useful lives of property, plant and equipment are as follows:
Office equipment	3-5 years
Furniture and fixtures	3-5 years

The Company evaluates the carrying value of items of property, plant and equipment to be held and used whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.  The carrying value of an item of property, plant and equipment is considered impaired when the projected undiscounted future cash flows related to the asset are less than its carrying value.  The Company measures impairment based on the amount by which the carrying value of the respective asset exceeds its fair value.  Fair value is determined primarily using the projected future cash flows discounted at a rate commensurate with the risk involved.

Intangible assets

Purchased intangible assets are recognized and measured at fair value upon acquisition. Separately identifiable intangible assets that have determinable lives continue to be amortized over their estimated useful lives using the straight-line method based on their estimated useful lives as follows:

Software 1-10 years

The Company reviews intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

Trade receivables

Trade receivables are recorded at the invoiced amount and do not bear interest. The Company extends unsecured credit to its customers in the ordinary course of business but mitigates the associated risks by performing credit checks and actively pursuing past due accounts. An allowance for doubtful accounts is established and recorded based on management’s assessment of potential losses based on the credit history and relationships with the customers. Management reviews its receivables on a regular basis to determine if bad debt allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable.

The Company considered the amounts of receivables in dispute and believes an allowance for these receivables were not necessary as of March 31, 2022 and December 31, 2021.

Fair Value Measurements

ASC Topic 820 defines fair value, establishes a framework for measuring fair value and enhances disclosure requirements for fair value measurements. This topic does not require any new fair value measurements. ASC Topic 820 defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC Topic 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:

Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

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Level 2 —	Other inputs that is directly or indirectly observable in the marketplace.
Level 3 —	Unobservable inputs which are supported by little or no market activity.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

Earnings (Loss) Per Share

Earnings Per Share (‘EPS”) is computed by dividing net income available to common stockholders by the weighted average number of common stock shares outstanding during the year.  Diluted EPS is computed by dividing net income available to common stockholders by the weighted average number of common stock shares outstanding during the year plus potential dilutive instruments such as stock options and warrants.  

The effect of stock options on diluted EPS is determined through the application of the treasury stock method, whereby proceeds received by the Company based on assumed exercises are hypothetically used to repurchase the Company's common stock at the average market price during the period.  The Company has no stock options, warrants or other potentially dilutive instruments outstanding at March 31, 2022 and December 31, 2021.

Investment in Unconsolidated Joint Ventures

The Company entered into a JV agreement with an independent third party, to form a JV company. The joint venture agreement provides the Company with only the rights to the assets and obligation for the liabilities of the joint arrangement resting primarily with the JV. In adopting ASC Topic 323, Investments - Equity Method and Joint Ventures (Topic 323), the Company’s investment in joint venture is accounted for using the equity method.

Inventories

Inventories are carried at the lower of cost and net realizable value, as determined using the weighted average cost method. Management compares the cost of inventories with the net realizable value and if applicable, an allowance is made for writing down the inventory to its net realizable value, if lower than cost. On an ongoing basis, inventories are reviewed for potential write-down for estimated obsolescence or unmarketable inventories which equals the difference between the costs of inventories and the estimated net realizable value based upon forecasts for future demand and market conditions. When inventories are written-down to the lower of cost or net realizable value, it is not marked up subsequently based on changes in underlying facts and circumstances.

The Company entered into a purchase agreement with JV company and through their platform to purchase of gold. In adopting ASC Topic 330, Inventory, it permits certain inventories such as precious metals, agricultural and mineral inventories to be stated above cost in exceptional cases. We believe that because our business model is to trade gold and held in short-term, market value is a more useful and relevant measurement than lower of cost or market value.

Goodwill

Goodwill is recorded as the difference between the aggregate consideration paid for in a business combination and the fair value of the acquired net tangible and intangible assets acquired. The Company evaluates goodwill for impairment on an annual basis in the fourth quarter or more frequently if indicators of impairment exist that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. Based on that qualitative assessment, if it is more likely than not that the fair value of a reporting unit is less than its carrying value, the Company conducts a quantitative goodwill impairment test, which involves comparing the estimated fair value of the reporting unit with its carrying value, including goodwill. The Company estimates the fair value of a reporting unit using a combination of the income and market approach. If the carrying value of the reporting unit exceeds its estimated fair value, an impairment loss is recorded for the difference.

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Non-controlling interest

Non-controlling interests represent the equity interests in the subsidiaries that are not attributable, either directly or indirectly, to the Company.

Recent Accounting Pronouncements

The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations, financial condition, or cash flows, based on current information.

NOTE 3 – GOING CONCERN

As shown in the accompanying consolidated financial statements, the Company has generated a net loss of $1,018,322 and an accumulated deficit of $11,287,098 as of March 31, 2022. The Company also experienced insufficient cash flows from operations and will be required continuous financial support from the shareholders. The Company will need to raise capital to fund its operations until it is able to generate sufficient revenue to support the future development. Moreover, the Company may be continuously raising capital through the sale of debt and equity securities.

The Company’s ability to achieve these objectives cannot be determined at this stage. If the Company is unsuccessful in its endeavors, it may be forced to cease operations. These consolidated financial statements do not include any adjustments that might result from this uncertainty which may include adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

These factors have raised substantial doubt about the Company’s ability to continue as a going concern. There can be no assurances that the Company will be able to obtain adequate financing or achieve profitability. These consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

NOTE 4 – PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment as of March 31, 2022 and December 31, 2021 is summarized as follows:

Schedule of Property and Equipment

	March 31, 2022			December 31, 2021
		(unaudited)
Office furniture and fixtures	$	60,447		$	55,369
Office equipment		156,891			137,118
Less:  accumulated depreciation		(125,922	)		(115,481	)
Property, plant and equipment, net	$	91,416		$	77,006

Depreciation expense for the three months ended March 31, 2022 and 2021 was $11,851 and $245, respectively.

NOTE 5 – INTANGIBLE ASSETS

Software as of March 31, 2022 and December 31, 2021 is summarized as follows:

	March 31,			December 31,
	2022			2021
Software	$	2,027,116		$	1,940,614
Less:  accumulated amortization		(790,604	)		(714,613	)
Intangible assets, net	$	1,236,512		$	1,226,001

Amortization expense for the three months ended March 31, 2022 and 2021 was $55,108 and $Nil, respectively.

13

NOTE 6 – GOODWILL

		March 31, 2022	December 31, 2021
Goodwill	$	71,664,639	$	71,664,639
Less accumulated impairment losses		-		-
Balance at end of period	$	71,664,639	$	71,664,639

Goodwill has been allocated for impairment testing purposes to the acquisition of the shares of Macao E-Media Development Company Limited by the Company.

The assets were valued using a Fair Market Value basis as defined by The Financial Accounting Standards Board (FASB ASC 820). Liabilities were taken from Macao E-Media Development Company Limited Consolidated Balance Sheet as of September 27, 2021.

NOTE 7 – RIGHT TO USE ASSETS AND LEASE LIABILITY

In January 2020, the Company entered a two-year lease for office space of approximately 770 square feet in Hong Kong, expiring January 10, 2022, with monthly payments of approximately $4,418 per month.

In September 2021, the Company entered the lease agreement for office and supermarket with MED and its subsidiaries in Macao and Zhuhai, with monthly payments of approximately $44,724 per month.

At lease commencement date, the Company estimated the lease liability and the right of use assets at present value using the Company’s estimated incremental borrowing rate of 8% and determined the initial present value, at inception, of $1,302,109.  

Right to use assets is summarized below:

		March 31, 2022	December 31, 2021
Macao and Zhuhai	$	1,204,080	$	1,175,932
Hong Kong		98,029		98,331
Subtotal		1,302,109		1,274,263
Less: accumulated depreciation		(688,114)		(687,341)
Right to use assets, net	$	613,995	$	586,922

During the three months ended March 31, 2022 and 2021, the Company recorded $136,596 and $12,318 as depreciation on ROU assets; and the Company recorded $12,586 and $933 as financial interest to current period operations.

Lease liability is summarized below:

		March 31, 2022	December 31, 2021
Macao and Zhuhai	$	527,955	$	586,922
Hong Kong		86,040		-
Total lease liability		613,995		586,922
Less: short term portion		(391,566)		(400,009)
Long term portion	$	222,429	$	186,913

Maturity analysis under these lease agreements are as follows:

		March 31, 2022	December 31, 2021
Period / year ended March 31, 2022 and December 31, 2021	$	655,825	$	627,609
Less: Present value discount		(41,830)		(40,687)
Lease liability	$	613,995	$	586,922

14

Lease expense for the three months ended March 31, 2022 was comprised of the following:

Operating lease expense	$	150,302
Short-term lease expense		11,422
	$	161,724

Lease expense for the three months ended March 31, 2021 was comprised of the following:

Operating lease expense	$	13,251
Short-term lease expense		1,950
	$	15,201

NOTE 8 - LOAN RECEIVABLES

In September 10, 2021, the Company’s subsidiary, Sinoforte Limited entered into a business loan agreement, by and among the joint venture, Gold Gold Gold Limited (“3G”), whereby the Company provide the fund for $1,000,000 to 3G for its business operating use. The loan amount was unsecured, with interest rate 5% per annum and has no fixed terms of repayment.

NOTE 9 - INVENTORIES

The Company purchased gold from the platform under its joint venture, Gold Gold Gold Limited. Inventories for gold as of March 31, 2022 was $522. The Macao subsidiary, Green Supply Chain Management Company Limited who was trading as supermarket and had $368,015 merchandise inventory as of March 31, 2022.

NOTE 10 – BANK LOANS

The bank loans are borrowed by MED and Zhuhai Chengmi Technology Company Limited (“Chengmi”), which are the new subsidiaries during business combinations in September 2021. The banking credit facility from MED dated March 3, 2020 for a maximum principal of $374,672 expiring July 31, 2025 at an interest rate of 4.25%. This loan is secured against the directors of MED and for the use of MED operation due to the outbreak of COVID-19. Another bank loan borrowed by Chengmi with principle of $464,583 and $309,721 and expiring December 2022 and May 2023 respectively, at an interest rate of 4.6% and 4.45% per annum.

NOTE 11 – CAPITAL STOCK

The Company is authorized to issue 500,000,000 shares of common stock, $0.01 par value, and 25,000,000 shares of preferred stock, $0.01 par value.  As of March 31, 2022 and December 31, 2021, there were 263,337,500 shares of the Company’s common stock issued and outstanding, and none of the preferred shares were issued and outstanding.

As of March 31, 2022, Kelton Capital Group Ltd. owned 31,190,500 shares or 11.8% of the Company’s common stock, and Aspect Group Limited owned 26,000,000 shares, or 9.9% of the Company’s common stock, and Jiang Haitao owned 46,588,236 shares, or 17.7% of the Company’s common stock. Other than Kelton Capital Group Ltd, Aspect Group Ltd, and Jiang Haitao, no person owns 5% or more of the Company’s issued and outstanding shares.

NOTE 12 – LOSS PER SHARE

The following table sets forth the computation of basic and diluted loss per common share for the three months ended March 31, 2022 and 2021, respectively:

15

	March 31, 2022			March 31, 2021
			(unaudited)			(unaudited)
Numerator - basic and diluted
Net loss		$	(1,018,322)		$	(38,299)
Denominator
Weighted average number of common shares outstanding —basic and diluted			263,337,500			114,915,852
Loss per common share — basic and diluted		$	(0.004	)	$	(0.000	)

NOTE 13 - JOINT VENTURE

Gold Gold Gold Limited (“JV”) was created in February 2018. The Company entered into a JV agreement with primary activity of trading of gold. The Company injected $12,839 (HK$100,000) to the JV during the year ended December 31, 2019. The Company shared the operating loss from JV of $12,839 during the year.

Summarized financial information for joint venture is as follows:

Balance Sheets:	March 31, 2022			December 31, 2021
	(unaudited)			(audited)
Property, plant and equipment, net	$	3,392		$	3,676
Other receivables and prepaid		9,127			8,920
Inventory		7,468,770			4,181,874
Cash and cash equivalents		932,901			1,379,175
Total assets		8,414,190			5,573,645
Other payable to shareholder		(4,604,276	)		(4,265,052	)
Customer deposit		(7,469,379	)		(4,885,447	)
Total liabilities		(12,073,655	)		(9,150,499	)
Net liabilities	$	(3,659,465	)	$	(3,576,854	)

Statement of Operations:	Three months ended March 31, 2022
	(unaudited)
Revenue	$	4,340,100
Less: Cost of sales		(4,237,321	)
		102,779
Operating expense		(143,189	)
Depreciation		(273	)
Net loss from operations		(40,683	)
Other income (expense):
Interest (expense) income, net		(53,266	)
Net loss	$	(93,949	)

NOTE 14 - COMMITMENTS AND CONTINGENCIES

Legal proceedings

As of March 31, 2022, the Company is not aware of any material outstanding claim and litigation against them.

16

NOTE 15 - SUBSEQUENT EVENTS

In accordance with ASC 855, “Subsequent Events,” the Company has evaluated subsequent events through the date of filing.  No material subsequent events were noted.

Item 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This report contains certain forward-looking statements that involve risks and uncertainties.  We use words such as "anticipate," "believe," "expect," "future," "intend," "plan," and similar expressions to identify forward-looking statements. These statements are only predictions.  Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.  You should not place undue reliance on these forward-looking statements, which apply only as of the date of this report.  Our actual results could differ materially from those anticipated in these forward-looking statements.

Overview

The Company conducts business primarily through its wholly owned subsidiary Sinoforte Ltd., a Hong Kong corporation.

Prior to August 2011, the Company operated primarily as a merchant, buying and selling various type and grades of graphite, such as medium- and high-carbon graphite, high-purity graphite, micro-powder graphite and expandable graphite. As a merchant, the Company acted as a reseller. It purchased graphite products in bulk, primarily from graphite producers, and resold them, either in bulk or in smaller quantities (in either case, without further processing), to various small and mid-sized customers.    

In August 2011, the Company started to engage in a business of e-commerce platform.  Currently the Company is in the process of developing a website, “Makeliving.com” ("Makeliving"), which provides an e-commerce platform, where registered members can exchange goods and services.

Makeliving will act both as a platform and as a conduit between those (individuals or companies) who desire to acquire goods and services and those (individuals or companies) who desire to offer goods and services.  Makeliving plans to charge a certain percentage fee for the transactions.  However, no revenues have been generated.  The website is now temporarily under maintenance. At the same time, the Company is considering new business models.

On January 23, 2018, the Company entered into an agreement with Cityhill Limited, a wholly owned subsidiary of South Sea Petroleum Holdings Limited, a Hong Kong listed public company, pursuant to which parties agreed to establish a joint venture (the “Joint Venture”). Each party owns 50% equity interest in the Joint Venture respectively.

The Joint Venture, with the support of blockchain technology, is to provide global trading service of physical gold for global customers. The parties contribute their respective experiences in blockchain technology and marketing. The Company will assist the Joint Venture in exploring the North America and Europe markets, while Cityhill will focus on the Asian markets.

In September 2021, the Company completed the acquisition of 98.75% shares of Macao E-Media Development Company Limited (“MED”). As consideration for the MED shares, the Company agreed to issue the sellers, or its assigns, in a total of 131,337,500 shares of the Company’s restricted common stock, par value $0.01 per share, at a consideration of $0.50 per share, in the aggregate consideration of $65,668,750. As a result of this acquisition, MED becomes a 98.75% owned subsidiary of the Company. MED was founded at Macau in 2011. Its main area of business includes food and grocery order-pickup-delivery services from local restaurants, supermarkets and hotels. For the year ended December 31, 2021, MED generated approximately $10 million of revenue.

MED has four subsidiaries, each of which is in charge of respective area such as Development & Maintenance, Marketing & Operation, Logistics & Delivery, Payment & Clearance, Emerging Market Business Development.

17

Results of Operations

For the Three Months Ended March 31, 2022 Compared to the Three Months Ended March 31, 2021

Sales

For the three months ended March 31, 2022, the Company generated sales of $10,130,661 compared to $Nil for the same period of 2021. The new generated sales were entirely from the newly acquired 98.75% owned subsidiary, MED.  

Costs of Goods Sold

For the three months ended March 31, 2022, the Company generated cost of good sold for $7,358,415 compared to $Nil for the same period of 2021. Currently the Company is attributable to delivery rider costs and purchase of inventory.

Operating expenses

For the three months ended March 31, 2022 and 2021, the Company’s selling, general and administrative expenses were $3,794,019 compared to $35,375 for the same period of the previous year.  The increase is primarily the result of new operation generated from Macao’s and Zhuhai’s subsidiaries.

Other Income (Expense)

For the three months ended March 31, 2022, the Company had $9,346 of interest expense relating to bank loan interest payable, as compared to $2,924 of interest expense for the same period last year.

Net Loss

For the three months ended March 31, 2022, the Company had a net loss of $1,018,322, or $(0.004) per share, as compared to a net loss of $38,299, or $(0.000) per share, for the same period of 2021.

Liquidity and Capital Resources

As of March 31, 2022, the Company had cash and cash equivalents of $4,666,521 and a working capital deficit of $3,896,526. For the three months ended March 31, 2022, the Company provided by net cash of $223,203 from its operating activities primarily from our net loss of $1,031,119, adjusted net with depreciation and amortization of $66,959, a loss of disposal of equipment of $6, a decrease in account receivables of $89,843, an increase in inventories of $113,250, a increase in prepaid expenses of $104,008, a decrease in deposits of $4,154, a decrease in other receivables of $13,031, an increase in accrued expense of $606,967, an increase in deposit received of $320,966, a decrease in other payables of $201,099, a increase in account payable of $124,347. By comparison, net cash used in operating activities was $39,566 for the same period of 2021.

During the three months ended March 31, 2022, the Company provided net cash of $6,281 from its investing activities which comprised with purchase of equipment of $26,293, purchase of intangible assets of $79,242, a decrease in amount due from related company of $159,408, an increase in amount due from shareholder of $47,530 and a decrease in amount due to related company of $62. By comparison, net cash provided by investing activities was $1 for the same period of 2021.

During the three months ended March 31, 2022, the Company’s financing activities used net cash of $47,897, which was comprised of repayment of bank loans of $47,897. By comparison, net cash provided by financing activities was $45,641 for the same period of 2021.  

Until we are able to generate sufficient liquidity from operations, we intend to continue to fund operations from cash on-hand, and through private debt or equity placements of our securities. Our continued operations will depend on whether we are able to generate sufficient liquidity from operations and/or raise additional capital through such sources as equity and debt financings, collaborative and licensing agreements and strategic alliances. There can be no assurance that additional capital will become available or, if it does, that it will become available on acceptable terms, or that any additional capital we may obtain will be sufficient to meet our long-term needs. We currently have no commitments for any additional capital, both internally and externally.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

18

Contractual Obligations

We lease our office space, approximately 250 square feet, in Jersey City, New Jersey, on a month-by-month basis. For the six-month ended June 30, 2020, the rent was $650 per month.  We also have an office in Hong Kong, which is leased on a term of two years ending in January 2022. The space is approximately 770 square feet, and the rent is approximately $4,393 per month. With the acquisition with MED, the Company has the office in Macao and Zhuhai, which are leased on terms of two to three years from 2020 to 2024. The rent is approximately $44,724 per month.

Critical Accounting Policies

In preparing the consolidated financial statements, we follow accounting principles generally accepted in the United States (“GAAP”).  GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, sales and expenses, and related disclosure of contingent assets and liabilities. We re-evaluate our estimates on an on-going basis.  Our estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances.  Actual results may differ from these estimates under different assumptions and conditions.  

We believe our use of estimates and underlying accounting assumptions adhere to GAAP and are consistently applied.  Our significant accounting policies are summarized in Note 1 to our consolidated financial statements.

Item 3.  Quantitative and Qualitative Disclosures about Market Risk

A smaller reporting company is not required to provide the information in this Item.

Item 4.  Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, the Company conducted an evaluation, under the supervision and with the participation of the Company’s management including its principal executive officer and principal financial officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) or 15d-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act")).  Based on this evaluation, the principal executive officer and principal financial officer concluded that, as of March 31, 2022, the Company’s disclosure controls and procedures were effective to ensure that information required to be disclosed by us in the reports that the Company files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in applicable rules and forms and that such information is accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer, in a manner that allows timely decisions regarding required disclosure.

Changes in Internal Controls over Financial Reporting

There was no change in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the Company’s most recently completed fiscal quarter that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

        None

Item 1A. Risk Factors

A smaller reporting company is not required to provide the information in this Item.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

        None

19

Item 3.  Defaults Upon Senior Securities

        None

Item 4.  Mine Safety Disclosures

        None

Item 5.  Other Information

        None

Item 6.  Exhibits and Reports

(a)    Exhibits:

Exhibit No.                Title of Document 

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

32       Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101 INS       XBRL Instance Document

101SCH       XBRL Taxonomy Extension Schema Document

101 CAL      XBRL Taxonomy Extension Calculation Linkbase Document

101LAB       XBRL Taxonomy Extension Label Linkbase Document

101PRE        XBRL Taxonomy Extension Presentation Linkbase Document

101DEF        XBRL Taxonomy Extension Definition Linkbase Document.

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

SCIENTIFIC ENERGY, INC.

By: /s/ Stanley Chan

Stanley Chan

President and Chief Executive Officer

May 16, 2022

20

EX-31.1

Exhibit 31.1

CERTIFICATION

Pursuant to Rule 13a–14(a)/15d–14(a)

of the Securities Exchange Act, as amended.

I, Stanley Chan, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Scientific Energy, Inc.; 

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; and 

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 the registrant's board of directors (or persons performing the equivalent functions): 

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

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

Date:  May 16, 2022

/s/ Stanley Chan

Stanley Chan

Chief Executive Officer and Chief Financial Officer

(Principal Executive Officer and Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION

Pursuant to 18 U.S.C. 1350, as adopted

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of Scientific Energy, Inc. (the "Company") for the quarter ended March 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Stanley Chan, the Chief Executive Officer and Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge: 

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and 

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. 

Date:  May 16, 2022

/s/ Stanley Chan

Stanley Chan

Chief Executive Officer and Chief Financial Officer

(Principal Executive Officer and Principal Financial Officer)

XML

Document and Entity Information - $ / shares	3 Months Ended
	Mar. 31, 2022	May 16, 2022
Details
Registrant CIK	0001276531
Fiscal Year End	--12-31
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Securities Act File Number	000-50559
Entity Registrant Name	SCIENTIFIC ENERGY, INC.
Entity Incorporation, State or Country Code	UT
Entity Tax Identification Number	87-0680657
Entity Address, Address Line One	27 Weldon Street
Entity Address, City or Town	Jersey City
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07306
Entity Address, Address Description	Address of principal executive offices
City Area Code	852
Local Phone Number	2530-2089
Phone Fax Number Description	Registrant's telephone number, including area code
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		263,337,500
Entity Listing, Par Value Per Share	$ 0.01
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1

XML

Condensed Consolidated Balance Sheets (March 31, 2022 Unaudited) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 4,666,521	$ 4,920,375
Loan receivables	994,822	997,923
Accounts receivable	753,074	842,917
Other receivables	53,356	66,388
Amount due from related companies	1,217,824	1,377,231
Amount due from joint venture	24,679	24,679
Amount due from shareholder	989,798	942,267
Inventories	368,537	255,287
Prepaid expense	473,376	369,367
Total current assets	9,541,987	9,796,434
Non-current assets
Property, plant and equipment, net	91,416	77,006
Intangible assets	1,236,512	1,226,001
Goodwill	71,664,639	71,664,639
Operating lease right to use assets	613,995	586,922
Deposits	521,819	525,973
Total non-current assets	74,128,381	74,080,541
Total assets	83,670,368	83,876,975
Current liabilities
Accounts payable	6,324,345	6,199,998
Accrued expenses	3,469,272	2,862,306
Amount due to related party	19,940	20,002
Deposit received	1,657,223	1,336,256
Other payables	1,016,329	1,217,427
Bank loans	559,838	566,046
Operating lease liabilities	391,566	400,009
Total current liabilities	13,438,513	12,602,044
Non-current liabilities
Bank loans	439,668	481,357
Operating lease liability	222,429	186,913
Total non-current liabilities	662,097	668,270
Total liabilities	14,100,610	13,270,314
Commitments and contingencies	0	0
Stockholders' equity
Preferred Stock, Value	0	0
Common Stock, Value	2,633,375	2,633,375
Additional paid in capital	78,460,638	78,460,638
Accumulated deficit	(11,287,098)	(10,268,776)
Accumulated other comprehensive loss	(119,944)	(114,160)
Total stockholders' surplus	69,686,971	70,711,077
Non-controlling interests	(117,213)	(104,416)
Total liabilities and stockholders' equity	$ 83,670,368	$ 83,876,975

XML

Condensed Consolidated Balance Sheets (March 31, 2022 Unaudited) - Parenthetical - $ / shares	Mar. 31, 2022	Dec. 31, 2021
Details
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	25,000,000	25,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	500,000,000	500,000,000
Common Stock, Shares, Issued	263,337,500	263,337,500
Common Stock, Shares, Outstanding	263,337,500	263,337,500

XML

Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Details
REVENUE	$ 10,130,661	$ 0
COST OF REVENUE	(7,358,415)	0
GROSS PROFIT	2,772,246	0
OPERATING EXPENSES
Selling, general and administrative expenses	3,727,060	35,130
Depreciation and amortization	66,959	245
Total operating expenses	3,794,019	35,375
NET LOSS FROM OPERATIONS	(1,021,773)	(35,375)
Other income (expense)
Interest expense, net	(9,346)	(2,924)
Net loss before provision for income taxes	(1,031,119)	(38,299)
Income taxes	0	0
NET LOSS	(1,031,119)	(38,299)
Net loss attributable to non-controlling interests	12,797	0
Net loss attributable to Scientific Energy, Inc	(1,018,322)	(38,299)
OTHER COMPREHENIVE (LOSS) / GAIN
Foreign translation (loss) gain	(5,784)	439
Comprehensive loss	$ (1,024,106)	$ (37,860)
Net loss per common share, basic and diluted	$ (0.004)	$ (0.000)
Weighted average common shares outstanding, basic and diluted	263,337,500	114,915,852

XML

Consolidated Statement of Stockholders' Deficit - USD ($)	Common Stock	Additional Paid-in Capital	Retained Earnings	AOCI Including Portion Attributable to Noncontrolling Interest	Noncontrolling Interest	Total
Equity Balance, Starting at Dec. 31, 2020	$ 1,149,159	$ 5,734,030	$ (9,301,091)	$ 8,097		$ (2,409,805)
Shares Outstanding, Starting at Dec. 31, 2020	114,915,852
Foreign currency transaction gain	$ 0	0	0	439		439
Net Income (Loss)	0	0	(38,299)	0		(38,299)
Equity Balance, Ending at Mar. 31, 2021	$ 1,149,159	5,734,030	(9,339,390)	8,536		(2,447,665)
Shares Outstanding, Ending at Mar. 31, 2021	114,915,852
Equity Balance, Starting at Dec. 31, 2021	$ 2,633,375	78,460,638	(10,268,776)	(114,160)	$ (104,416)	70,606,661
Shares Outstanding, Starting at Dec. 31, 2021	263,337,500
Foreign currency transaction gain	$ 0	0	0	(5,784)		(5,784)
Net Income (Loss)	0	0	(1,018,322)	0	(12,797)	(1,031,119)
Equity Balance, Ending at Mar. 31, 2022	$ 2,633,375	$ 78,460,638	$ (11,287,098)	$ (119,944)	$ (117,213)	$ 69,569,758
Shares Outstanding, Ending at Mar. 31, 2022	263,337,500

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Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (1,031,119)	$ (38,299)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation	11,851	245
Amortization	55,108	0
Loss on disposal of property and equipment	6	0
Account receivables	89,843	0
Inventories	(113,250)	0
Deposits	4,154	38
Prepaid expenses	(104,008)	(19)
Other receivables	13,031	0
Accrued expenses	606,967	0
Deposits received	320,966	0
Other payable	(201,099)	0
Accounts payable	124,347	(1,531)
Net cash used in operating activities	(223,203)	(39,566)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from disposal of subsidiary	0	1
Purchase of property, plant and equipment	(26,293)	0
Purchase of intangible asset	(79,242)	0
Amount due from related company	159,408	0
Amount due from shareholder	(47,530)	0
Amount due to related company	(62)	0
Net cash provided by investing activities	6,281	1
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from subscription received	0	45,641
Repayment of bank borrowings	(47,897)	0
Net cash (used in) / provided by financing activities	(47,897)	45,641
Effect of currency rate changes on cash	10,965	439
Net increase (decrease) in cash and cash equivalents	(253,854)	6,515
Cash and cash equivalents	4,920,375	14,468
Cash and cash equivalents	4,666,521	20,983
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest paid	9,346	2,924
Income taxes paid	0	0
Non cash financing activities
Record right to use assets upon adoption of ASC 842	613,995	38,467
Record lease liabilities upon adoption of ASC 842	$ 613,995	$ 38,467

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NOTE 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES

3 Months Ended

Mar. 31, 2022

Notes

NOTE 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES

NOTE 1 – ORGANIZATION AND PRINCIPAL ACTIVITIES

Scientific Energy, Inc., (the "Company") was incorporated under the laws of the State of Utah on May 30, 2001.  Prior to August 2011, the Company was principally devoted to the buying and selling of various types and grades of graphite, such as medium- and high-carbon graphite, high-purity graphite, micro-powder graphite and expandable graphite.   In August 2011, the Company decided to engage in a business of e-commerce platform. Currently the Company is in the process of developing a website, which provides an e-commerce platform, where registered members can exchange goods and services.

On March 28, 2006, the Company set up a wholly owned subsidiary, PDI Global Limited (“PDI”), which was incorporated in the British Virgin Islands in order to engage in a business of e-commerce platform.

In January 2008, the Company entered into a joint venture agreement with China Resources Development Group Ltd., a Hong Kong company.  Under the agreement, a joint venture company, Kabond Investments Ltd (the “JVC”), was established in Hong Kong, and the Company invested $39.6 million Hong Kong dollars (approximately $5.09 million) into the JVC for 72% of the JVC’s capital shares, and China Resources Development Group Ltd., jointly with its partner, invested $15.4 million Hong Kong dollars (approximately $1.98 million) into the JVC to receive 28% of the JVC’s capital shares.  In December 2008, all equity interest of the JVC owned by the Company was sold to a third party for $39.6 million Hong Kong dollars (approximately $5,109,743).

In January 2009, the Company through its wholly-owned subsidiary, PDI, entered into a joint venture agreement with China Resources Development Group Ltd.  Under the agreement, the Company agreed to invest $43,040,000 Hong Kong dollars (approximately $5.55 million) into a joint venture company Sinoforte Ltd. in Hong Kong (“Sinoforte”).  The Company got 80% of Sinoforte's capital shares, and China Resources invested $10,222,000 Hong Kong dollars, approximately $1,318,967, and another investor invested $538,000 Hong Kong dollars, or approximately $69,419, into Sinoforte for 19% and 1% of Sinoforte's capital shares, respectively.  The main business of Sinoforte was trading mineral products such as graphite produced in China.  In June 2009 and September 2009, respectively, China Resources and the other minority investor cancelled their investments in Sinoforte, and the full amount of their original investments was returned.  As a result, Sinoforte became a wholly-owned subsidiary of PDI. On December 8, 2020, PDI sold all the shares of Sinoforte to the Company at consideration of HK$10.

On February 28, 2012, the Company set up a wholly-owned subsidiary, Makeliving Ltd., which was incorporated in the Cayman Islands in order to engage in a business of e-commerce platform.

On January 23, 2018, the Company entered into an agreement with Cityhill Limited, a wholly owned subsidiary of South Sea Petroleum Holdings Limited, a Hong Kong listed public company, pursuant to which parties agreed to establish a joint venture (the “Joint Venture”).  Each party owns 50% equity interest in the Joint Venture respectively.

On February 8, 2021, the Company acquired an entire share of a Hong Kong company, Qwestro Limited, for HK$1,000 without any goodwill and bargaining purchase.

On March 24, 2021, the Company disposed of its wholly-owned dormant subsidiary, PDI Global Limited, with a positive net worth of $1 to an unaffiliated third-party purchaser for $1.  

In September 27, 2021, the Company completed the acquisition of 98.75% shares of Macao E-Media Development Company Limited (“MED”). As consideration for the MED shares, the Company agreed to issue the Sellers, or its assigns, in a total of 131,337,500 shares of the Company’s restricted common stock, par value $0.01 per share, at a consideration of $0.50 per share, in the aggregate consideration of $65,668,750 (the “Purchase Price”). As a result of this acquisition, MED becomes a 98.75% owned subsidiary of the Company. MED was founded at Macau in 2011. Its main area of business includes food and grocery order-pickup-delivery services from local restaurants, supermarkets and hotels. MED has four subsidiaries, each of which is in charge of respective area such as Development & Maintenance, Marketing & Operation, Logistics & Delivery, Payment & Clearance, Emerging Market Business Development.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2022

Notes

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying audited consolidated financial statements of the Company are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). In the opinion of management, all adjustments (consisting of normal recurring adjustments) have been made that are necessary to present fairly the financial position, and the results of its operations and its cash flows. Operating results as presented are not necessarily indicative of the results to be expected for a full year.

The Company's consolidated financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The continuation of the Company as a going concern is dependent upon the ability of the Company to generate enough revenues and/or obtain necessary equity financing to continue operations and the attainment of profitable operations.

The accompanying consolidated financial statements present the financial position and the results of operations of the Company and its majority-owned subsidiaries, Macao E-Media Development Company Limited, Makeliving, Ltd. and Sinoforte Limited.  Qwestro Limited, in turn, is the 100% owned subsidiary and consolidates with Sinoforte Limited.

All significant intercompany transactions and balances have been eliminated in consolidation.

Business Combinations

The Company accounts for acquisition of entities that include inputs and processes and has the ability to create outputs as business combinations. The Company allocates the purchase price of the acquisition to the tangible assets, liabilities and identifiable intangible assets acquired based on their estimated fair values. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and integration costs are expensed as incurred.

Interim Financial Statements

The following (a) condensed consolidated balance sheet as of December 31, 2021, which has been derived from audited financial statements, and (b) the unaudited condensed consolidated interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2022 are not necessarily indicative of results that may be expected for the year ending December 31, 2022. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on April 15, 2022.

The Company recognizes revenue when: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed or determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related revenue is recorded.

The Company defers any revenue for which the product has not been delivered or services have not been rendered or are subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or services have been rendered or no refund will be required.

Revenues on the sale of products, net of estimated costs of returns and allowance, are recognized at the time products are shipped to customers, legal title has passed, and all significant contractual obligations of the Company have been satisfied. Products are generally sold on open accounts under credit terms customary to the geographic region of distribution. The Company performs ongoing credit evaluations of the customers and generally does not require collateral to secure the accounts receivable.

The Company is operating mobile platform of ordering and delivery services for restaurants and supermarket in Macau, together recognizing revenue on closed transactions.

Segment information

ASC 280-10 establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information for those segments to be presented in interim financial reports issued to stockholders. ASC 280-10 also establishes standards for related disclosures about products and services and geographic areas. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision-making group, in making decisions how to allocate resources and assess performance.  All sales and substantial assets of the Company are in Macao. The Company applies the management approach to the identification of our reportable operating segments as provided in accordance with ASC 280-10.  The information disclosed herein materially represents all of the financial information related to the Company’s principal operating segment.

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

Concentration of Credit Risk

The Company’s financial instruments that are exposed to a concentration of credit risk are cash and accounts receivable.  Generally, the Company’s cash and cash equivalents in interest-bearing accounts may exceed FDIC insurance limits. The financial stability of these institutions is periodically reviewed by senior management.

As of March 31, 2022, and December 31, 2021, the Company maintained $4,648,529 and $4,899,488 in foreign bank accounts not subject to FDIC coverage.

The Company has no significant off-balance-sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements.

Cash and Cash Equivalents

For purposes of the statements of cash flows, cash and cash equivalents include cash on hand and demand deposits held by banks.

Comprehensive Income (Loss)

The Company adopted Accounting Standards Codification subtopic 220-10, Comprehensive Income (“ASC 220-10”) which establishes standards for the reporting and displaying of comprehensive income and its components. Comprehensive income is defined as the change in equity of a business during a period from transactions and other events and circumstances from non-owners sources.  It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. ASC 220-10 requires other comprehensive income (loss) to include foreign currency translation adjustments.

Foreign Currency Translation

The Company translates the foreign currency consolidated financial statements into US Dollars (“USD”) using the year or reporting period-end or average exchange rates in accordance with the requirements of Accounting Standards Codification subtopic 830-10, Foreign Currency Matters (“ASC 830-10”).  Assets and liabilities of these subsidiaries were translated at exchange rates as of the balance sheet date.  Revenues and expenses are translated at average rates in effect for the periods presented.

The consolidated financial statements were presented in US Dollars except as other specified.

The cumulative translation adjustment is included in the accumulated other comprehensive gain (loss) within stockholders’ equity (deficit).  Foreign currency transaction gains and losses arising from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the consolidated results of operations.

The exchange rates used to translate amounts in HKD and MOP into US Dollars for the purposes of preparing the consolidated financial statements were as follows:

	March 31,	December 31,
	2022	2021
Exchange rate on balance sheet dates
USD : HKD exchange rate	7.8235	7.7992
USD : MOP exchange rate	8.0582	8.0332
	For the three months ended March 31,
	2022	2021
Average exchange rate for the period
USD : HKD exchange rate	7.8049	7.7576
USD : MOP exchange rate	8.0390	N/A

Property, plant and equipment

The estimated useful lives of property, plant and equipment are as follows:
Office equipment	3-5 years
Furniture and fixtures	3-5 years

The Company evaluates the carrying value of items of property, plant and equipment to be held and used whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.  The carrying value of an item of property, plant and equipment is considered impaired when the projected undiscounted future cash flows related to the asset are less than its carrying value.  The Company measures impairment based on the amount by which the carrying value of the respective asset exceeds its fair value.  Fair value is determined primarily using the projected future cash flows discounted at a rate commensurate with the risk involved.

Intangible assets

Purchased intangible assets are recognized and measured at fair value upon acquisition. Separately identifiable intangible assets that have determinable lives continue to be amortized over their estimated useful lives using the straight-line method based on their estimated useful lives as follows:

Software 1-10 years

The Company reviews intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

Trade receivables

Trade receivables are recorded at the invoiced amount and do not bear interest. The Company extends unsecured credit to its customers in the ordinary course of business but mitigates the associated risks by performing credit checks and actively pursuing past due accounts. An allowance for doubtful accounts is established and recorded based on management’s assessment of potential losses based on the credit history and relationships with the customers. Management reviews its receivables on a regular basis to determine if bad debt allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable.

The Company considered the amounts of receivables in dispute and believes an allowance for these receivables were not necessary as of March 31, 2022 and December 31, 2021.

Fair Value Measurements

ASC Topic 820 defines fair value, establishes a framework for measuring fair value and enhances disclosure requirements for fair value measurements. This topic does not require any new fair value measurements. ASC Topic 820 defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC Topic 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:

Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 —	Other inputs that is directly or indirectly observable in the marketplace.
Level 3 —	Unobservable inputs which are supported by little or no market activity.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

Earnings (Loss) Per Share

Earnings Per Share (‘EPS”) is computed by dividing net income available to common stockholders by the weighted average number of common stock shares outstanding during the year.  Diluted EPS is computed by dividing net income available to common stockholders by the weighted average number of common stock shares outstanding during the year plus potential dilutive instruments such as stock options and warrants.  

The effect of stock options on diluted EPS is determined through the application of the treasury stock method, whereby proceeds received by the Company based on assumed exercises are hypothetically used to repurchase the Company's common stock at the average market price during the period.  The Company has no stock options, warrants or other potentially dilutive instruments outstanding at March 31, 2022 and December 31, 2021.

Investment in Unconsolidated Joint Ventures

The Company entered into a JV agreement with an independent third party, to form a JV company. The joint venture agreement provides the Company with only the rights to the assets and obligation for the liabilities of the joint arrangement resting primarily with the JV. In adopting ASC Topic 323, Investments - Equity Method and Joint Ventures (Topic 323), the Company’s investment in joint venture is accounted for using the equity method.

Inventories

Inventories are carried at the lower of cost and net realizable value, as determined using the weighted average cost method. Management compares the cost of inventories with the net realizable value and if applicable, an allowance is made for writing down the inventory to its net realizable value, if lower than cost. On an ongoing basis, inventories are reviewed for potential write-down for estimated obsolescence or unmarketable inventories which equals the difference between the costs of inventories and the estimated net realizable value based upon forecasts for future demand and market conditions. When inventories are written-down to the lower of cost or net realizable value, it is not marked up subsequently based on changes in underlying facts and circumstances.

The Company entered into a purchase agreement with JV company and through their platform to purchase of gold. In adopting ASC Topic 330, Inventory, it permits certain inventories such as precious metals, agricultural and mineral inventories to be stated above cost in exceptional cases. We believe that because our business model is to trade gold and held in short-term, market value is a more useful and relevant measurement than lower of cost or market value.

Goodwill

Goodwill is recorded as the difference between the aggregate consideration paid for in a business combination and the fair value of the acquired net tangible and intangible assets acquired. The Company evaluates goodwill for impairment on an annual basis in the fourth quarter or more frequently if indicators of impairment exist that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. Based on that qualitative assessment, if it is more likely than not that the fair value of a reporting unit is less than its carrying value, the Company conducts a quantitative goodwill impairment test, which involves comparing the estimated fair value of the reporting unit with its carrying value, including goodwill. The Company estimates the fair value of a reporting unit using a combination of the income and market approach. If the carrying value of the reporting unit exceeds its estimated fair value, an impairment loss is recorded for the difference.

Non-controlling interest

Non-controlling interests represent the equity interests in the subsidiaries that are not attributable, either directly or indirectly, to the Company.

Recent Accounting Pronouncements

The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations, financial condition, or cash flows, based on current information.

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NOTE 3 - GOING CONCERN

3 Months Ended

Mar. 31, 2022

Notes

NOTE 3 - GOING CONCERN

NOTE 3 – GOING CONCERN

As shown in the accompanying consolidated financial statements, the Company has generated a net loss of $1,018,322 and an accumulated deficit of $11,287,098 as of March 31, 2022. The Company also experienced insufficient cash flows from operations and will be required continuous financial support from the shareholders. The Company will need to raise capital to fund its operations until it is able to generate sufficient revenue to support the future development. Moreover, the Company may be continuously raising capital through the sale of debt and equity securities.

The Company’s ability to achieve these objectives cannot be determined at this stage. If the Company is unsuccessful in its endeavors, it may be forced to cease operations. These consolidated financial statements do not include any adjustments that might result from this uncertainty which may include adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

These factors have raised substantial doubt about the Company’s ability to continue as a going concern. There can be no assurances that the Company will be able to obtain adequate financing or achieve profitability. These consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

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NOTE 4 - PROPERTY, PLANT AND EQUIPMENT

3 Months Ended

Mar. 31, 2022

Notes

NOTE 4 - PROPERTY, PLANT AND EQUIPMENT

NOTE 4 – PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment as of March 31, 2022 and December 31, 2021 is summarized as follows:

Schedule of Property and Equipment

	March 31, 2022			December 31, 2021
		(unaudited)
Office furniture and fixtures	$	60,447		$	55,369
Office equipment		156,891			137,118
Less:  accumulated depreciation		(125,922	)		(115,481	)
Property, plant and equipment, net	$	91,416		$	77,006

Depreciation expense for the three months ended March 31, 2022 and 2021 was $11,851 and $245, respectively.

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NOTE 5 - INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2022

Notes

NOTE 5 - INTANGIBLE ASSETS

NOTE 5 – INTANGIBLE ASSETS

Software as of March 31, 2022 and December 31, 2021 is summarized as follows:

	March 31,			December 31,
	2022			2021
Software	$	2,027,116		$	1,940,614
Less:  accumulated amortization		(790,604	)		(714,613	)
Intangible assets, net	$	1,236,512		$	1,226,001

Amortization expense for the three months ended March 31, 2022 and 2021 was $55,108 and $Nil, respectively.

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NOTE 6 - GOODWILL

3 Months Ended

Mar. 31, 2022

Notes

NOTE 6 - GOODWILL

NOTE 6 – GOODWILL

		March 31, 2022	December 31, 2021
Goodwill	$	71,664,639	$	71,664,639
Less accumulated impairment losses		-		-
Balance at end of period	$	71,664,639	$	71,664,639

Goodwill has been allocated for impairment testing purposes to the acquisition of the shares of Macao E-Media Development Company Limited by the Company.

The assets were valued using a Fair Market Value basis as defined by The Financial Accounting Standards Board (FASB ASC 820). Liabilities were taken from Macao E-Media Development Company Limited Consolidated Balance Sheet as of September 27, 2021.

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NOTE 7 - RIGHT TO USE ASSETS AND LEASE LIABILITY

3 Months Ended

Mar. 31, 2022

Notes

NOTE 7 - RIGHT TO USE ASSETS AND LEASE LIABILITY

NOTE 7 – RIGHT TO USE ASSETS AND LEASE LIABILITY

In January 2020, the Company entered a two-year lease for office space of approximately 770 square feet in Hong Kong, expiring January 10, 2022, with monthly payments of approximately $4,418 per month.

In September 2021, the Company entered the lease agreement for office and supermarket with MED and its subsidiaries in Macao and Zhuhai, with monthly payments of approximately $44,724 per month.

At lease commencement date, the Company estimated the lease liability and the right of use assets at present value using the Company’s estimated incremental borrowing rate of 8% and determined the initial present value, at inception, of $1,302,109.  

Right to use assets is summarized below:

		March 31, 2022	December 31, 2021
Macao and Zhuhai	$	1,204,080	$	1,175,932
Hong Kong		98,029		98,331
Subtotal		1,302,109		1,274,263
Less: accumulated depreciation		(688,114)		(687,341)
Right to use assets, net	$	613,995	$	586,922

During the three months ended March 31, 2022 and 2021, the Company recorded $136,596 and $12,318 as depreciation on ROU assets; and the Company recorded $12,586 and $933 as financial interest to current period operations.

Lease liability is summarized below:

		March 31, 2022	December 31, 2021
Macao and Zhuhai	$	527,955	$	586,922
Hong Kong		86,040		-
Total lease liability		613,995		586,922
Less: short term portion		(391,566)		(400,009)
Long term portion	$	222,429	$	186,913

Maturity analysis under these lease agreements are as follows:

		March 31, 2022	December 31, 2021
Period / year ended March 31, 2022 and December 31, 2021	$	655,825	$	627,609
Less: Present value discount		(41,830)		(40,687)
Lease liability	$	613,995	$	586,922

Lease expense for the three months ended March 31, 2022 was comprised of the following:

Operating lease expense	$	150,302
Short-term lease expense		11,422
	$	161,724

Lease expense for the three months ended March 31, 2021 was comprised of the following:

Operating lease expense	$	13,251
Short-term lease expense		1,950
	$	15,201

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NOTE 8 - LOAN RECEIVABLES

3 Months Ended

Mar. 31, 2022

Notes

NOTE 8 - LOAN RECEIVABLES

NOTE 8 - LOAN RECEIVABLES

In September 10, 2021, the Company’s subsidiary, Sinoforte Limited entered into a business loan agreement, by and among the joint venture, Gold Gold Gold Limited (“3G”), whereby the Company provide the fund for $1,000,000 to 3G for its business operating use. The loan amount was unsecured, with interest rate 5% per annum and has no fixed terms of repayment.

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NOTE 9 - INVENTORIES

3 Months Ended

Mar. 31, 2022

Notes

NOTE 9 - INVENTORIES

NOTE 9 - INVENTORIES

The Company purchased gold from the platform under its joint venture, Gold Gold Gold Limited. Inventories for gold as of March 31, 2022 was $522. The Macao subsidiary, Green Supply Chain Management Company Limited who was trading as supermarket and had $368,015 merchandise inventory as of March 31, 2022.

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NOTE 10 - BANK LOANS

3 Months Ended

Mar. 31, 2022

Notes

NOTE 10 - BANK LOANS

NOTE 10 – BANK LOANS

The bank loans are borrowed by MED and Zhuhai Chengmi Technology Company Limited (“Chengmi”), which are the new subsidiaries during business combinations in September 2021. The banking credit facility from MED dated March 3, 2020 for a maximum principal of $374,672 expiring July 31, 2025 at an interest rate of 4.25%. This loan is secured against the directors of MED and for the use of MED operation due to the outbreak of COVID-19. Another bank loan borrowed by Chengmi with principle of $464,583 and $309,721 and expiring December 2022 and May 2023 respectively, at an interest rate of 4.6% and 4.45% per annum.

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NOTE 11 - CAPITAL STOCK

3 Months Ended

Mar. 31, 2022

Notes

NOTE 11 - CAPITAL STOCK

NOTE 11 – CAPITAL STOCK

The Company is authorized to issue 500,000,000 shares of common stock, $0.01 par value, and 25,000,000 shares of preferred stock, $0.01 par value.  As of March 31, 2022 and December 31, 2021, there were 263,337,500 shares of the Company’s common stock issued and outstanding, and none of the preferred shares were issued and outstanding.

As of March 31, 2022, Kelton Capital Group Ltd. owned 31,190,500 shares or 11.8% of the Company’s common stock, and Aspect Group Limited owned 26,000,000 shares, or 9.9% of the Company’s common stock, and Jiang Haitao owned 46,588,236 shares, or 17.7% of the Company’s common stock. Other than Kelton Capital Group Ltd, Aspect Group Ltd, and Jiang Haitao, no person owns 5% or more of the Company’s issued and outstanding shares.

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NOTE 12 - LOSS PER SHARE

3 Months Ended

Mar. 31, 2022

Notes

NOTE 12 - LOSS PER SHARE

NOTE 12 – LOSS PER SHARE

The following table sets forth the computation of basic and diluted loss per common share for the three months ended March 31, 2022 and 2021, respectively:

	March 31, 2022			March 31, 2021
			(unaudited)			(unaudited)
Numerator - basic and diluted
Net loss		$	(1,018,322)		$	(38,299)
Denominator
Weighted average number of common shares outstanding —basic and diluted			263,337,500			114,915,852
Loss per common share — basic and diluted		$	(0.004	)	$	(0.000	)

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NOTE 13 - JOINT VENTURE

3 Months Ended

Mar. 31, 2022

Notes

NOTE 13 - JOINT VENTURE

NOTE 13 - JOINT VENTURE

Gold Gold Gold Limited (“JV”) was created in February 2018. The Company entered into a JV agreement with primary activity of trading of gold. The Company injected $12,839 (HK$100,000) to the JV during the year ended December 31, 2019. The Company shared the operating loss from JV of $12,839 during the year.

Summarized financial information for joint venture is as follows:

Balance Sheets:	March 31, 2022			December 31, 2021
	(unaudited)			(audited)
Property, plant and equipment, net	$	3,392		$	3,676
Other receivables and prepaid		9,127			8,920
Inventory		7,468,770			4,181,874
Cash and cash equivalents		932,901			1,379,175
Total assets		8,414,190			5,573,645
Other payable to shareholder		(4,604,276	)		(4,265,052	)
Customer deposit		(7,469,379	)		(4,885,447	)
Total liabilities		(12,073,655	)		(9,150,499	)
Net liabilities	$	(3,659,465	)	$	(3,576,854	)

Statement of Operations:	Three months ended March 31, 2022
	(unaudited)
Revenue	$	4,340,100
Less: Cost of sales		(4,237,321	)
		102,779
Operating expense		(143,189	)
Depreciation		(273	)
Net loss from operations		(40,683	)
Other income (expense):
Interest (expense) income, net		(53,266	)
Net loss	$	(93,949	)

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NOTE 14 - COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2022

Notes

NOTE 14 - COMMITMENTS AND CONTINGENCIES

NOTE 14 - COMMITMENTS AND CONTINGENCIES

Legal proceedings

As of March 31, 2022, the Company is not aware of any material outstanding claim and litigation against them.

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NOTE 15 - SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2022

Notes

NOTE 15 - SUBSEQUENT EVENTS

NOTE 15 - SUBSEQUENT EVENTS

In accordance with ASC 855, “Subsequent Events,” the Company has evaluated subsequent events through the date of filing.  No material subsequent events were noted.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2022

Policies

Basis of Presentation

Basis of Presentation

The accompanying audited consolidated financial statements of the Company are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). In the opinion of management, all adjustments (consisting of normal recurring adjustments) have been made that are necessary to present fairly the financial position, and the results of its operations and its cash flows. Operating results as presented are not necessarily indicative of the results to be expected for a full year.

The Company's consolidated financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The continuation of the Company as a going concern is dependent upon the ability of the Company to generate enough revenues and/or obtain necessary equity financing to continue operations and the attainment of profitable operations.

The accompanying consolidated financial statements present the financial position and the results of operations of the Company and its majority-owned subsidiaries, Macao E-Media Development Company Limited, Makeliving, Ltd. and Sinoforte Limited.  Qwestro Limited, in turn, is the 100% owned subsidiary and consolidates with Sinoforte Limited.

All significant intercompany transactions and balances have been eliminated in consolidation.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Business Combinations (Policies)

3 Months Ended

Mar. 31, 2022

Policies

Business Combinations

Business Combinations

The Company accounts for acquisition of entities that include inputs and processes and has the ability to create outputs as business combinations. The Company allocates the purchase price of the acquisition to the tangible assets, liabilities and identifiable intangible assets acquired based on their estimated fair values. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and integration costs are expensed as incurred.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Interim Financial Statements (Policies)

3 Months Ended

Mar. 31, 2022

Policies

Interim Financial Statements

Interim Financial Statements

The following (a) condensed consolidated balance sheet as of December 31, 2021, which has been derived from audited financial statements, and (b) the unaudited condensed consolidated interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2022 are not necessarily indicative of results that may be expected for the year ending December 31, 2022. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on April 15, 2022.

The Company recognizes revenue when: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed or determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related revenue is recorded.

The Company defers any revenue for which the product has not been delivered or services have not been rendered or are subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or services have been rendered or no refund will be required.

Revenues on the sale of products, net of estimated costs of returns and allowance, are recognized at the time products are shipped to customers, legal title has passed, and all significant contractual obligations of the Company have been satisfied. Products are generally sold on open accounts under credit terms customary to the geographic region of distribution. The Company performs ongoing credit evaluations of the customers and generally does not require collateral to secure the accounts receivable.

The Company is operating mobile platform of ordering and delivery services for restaurants and supermarket in Macau, together recognizing revenue on closed transactions.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Segment information (Policies)

3 Months Ended

Mar. 31, 2022

Policies

Segment information

Segment information

ASC 280-10 establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information for those segments to be presented in interim financial reports issued to stockholders. ASC 280-10 also establishes standards for related disclosures about products and services and geographic areas. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision-making group, in making decisions how to allocate resources and assess performance.  All sales and substantial assets of the Company are in Macao. The Company applies the management approach to the identification of our reportable operating segments as provided in accordance with ASC 280-10.  The information disclosed herein materially represents all of the financial information related to the Company’s principal operating segment.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Use of Estimates (Policies)

3 Months Ended

Mar. 31, 2022

Policies

Use of Estimates

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Concentration of Credit Risk (Policies)

3 Months Ended

Mar. 31, 2022

Policies

Concentration of Credit Risk

Concentration of Credit Risk

The Company’s financial instruments that are exposed to a concentration of credit risk are cash and accounts receivable.  Generally, the Company’s cash and cash equivalents in interest-bearing accounts may exceed FDIC insurance limits. The financial stability of these institutions is periodically reviewed by senior management.

As of March 31, 2022, and December 31, 2021, the Company maintained $4,648,529 and $4,899,488 in foreign bank accounts not subject to FDIC coverage.

The Company has no significant off-balance-sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Cash and Cash Equivalents (Policies)

3 Months Ended

Mar. 31, 2022

Policies

Cash and Cash Equivalents

Cash and Cash Equivalents

For purposes of the statements of cash flows, cash and cash equivalents include cash on hand and demand deposits held by banks.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Comprehensive Income (Loss) (Policies)

3 Months Ended

Mar. 31, 2022

Policies

Comprehensive Income (Loss)

Comprehensive Income (Loss)

The Company adopted Accounting Standards Codification subtopic 220-10, Comprehensive Income (“ASC 220-10”) which establishes standards for the reporting and displaying of comprehensive income and its components. Comprehensive income is defined as the change in equity of a business during a period from transactions and other events and circumstances from non-owners sources.  It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. ASC 220-10 requires other comprehensive income (loss) to include foreign currency translation adjustments.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Foreign Currency Translation (Policies)

3 Months Ended

Mar. 31, 2022

Policies

Foreign Currency Translation

Foreign Currency Translation

The Company translates the foreign currency consolidated financial statements into US Dollars (“USD”) using the year or reporting period-end or average exchange rates in accordance with the requirements of Accounting Standards Codification subtopic 830-10, Foreign Currency Matters (“ASC 830-10”).  Assets and liabilities of these subsidiaries were translated at exchange rates as of the balance sheet date.  Revenues and expenses are translated at average rates in effect for the periods presented.

The consolidated financial statements were presented in US Dollars except as other specified.

The cumulative translation adjustment is included in the accumulated other comprehensive gain (loss) within stockholders’ equity (deficit).  Foreign currency transaction gains and losses arising from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the consolidated results of operations.

The exchange rates used to translate amounts in HKD and MOP into US Dollars for the purposes of preparing the consolidated financial statements were as follows:

	March 31,	December 31,
	2022	2021
Exchange rate on balance sheet dates
USD : HKD exchange rate	7.8235	7.7992
USD : MOP exchange rate	8.0582	8.0332
	For the three months ended March 31,
	2022	2021
Average exchange rate for the period
USD : HKD exchange rate	7.8049	7.7576
USD : MOP exchange rate	8.0390	N/A

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Property, plant and equipment (Policies)

3 Months Ended

Mar. 31, 2022

Policies

Property, plant and equipment

Property, plant and equipment

The estimated useful lives of property, plant and equipment are as follows:
Office equipment	3-5 years
Furniture and fixtures	3-5 years

The Company evaluates the carrying value of items of property, plant and equipment to be held and used whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.  The carrying value of an item of property, plant and equipment is considered impaired when the projected undiscounted future cash flows related to the asset are less than its carrying value.  The Company measures impairment based on the amount by which the carrying value of the respective asset exceeds its fair value.  Fair value is determined primarily using the projected future cash flows discounted at a rate commensurate with the risk involved.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Intangible assets (Policies)

3 Months Ended

Mar. 31, 2022

Policies

Intangible assets

Intangible assets

Purchased intangible assets are recognized and measured at fair value upon acquisition. Separately identifiable intangible assets that have determinable lives continue to be amortized over their estimated useful lives using the straight-line method based on their estimated useful lives as follows:

Software 1-10 years

The Company reviews intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Trade receivables (Policies)

3 Months Ended

Mar. 31, 2022

Policies

Trade receivables

Trade receivables

Trade receivables are recorded at the invoiced amount and do not bear interest. The Company extends unsecured credit to its customers in the ordinary course of business but mitigates the associated risks by performing credit checks and actively pursuing past due accounts. An allowance for doubtful accounts is established and recorded based on management’s assessment of potential losses based on the credit history and relationships with the customers. Management reviews its receivables on a regular basis to determine if bad debt allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable.

The Company considered the amounts of receivables in dispute and believes an allowance for these receivables were not necessary as of March 31, 2022 and December 31, 2021.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Fair Value Measurements (Policies)

3 Months Ended

Mar. 31, 2022

Policies

Fair Value Measurements

Fair Value Measurements

ASC Topic 820 defines fair value, establishes a framework for measuring fair value and enhances disclosure requirements for fair value measurements. This topic does not require any new fair value measurements. ASC Topic 820 defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC Topic 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:

Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 —	Other inputs that is directly or indirectly observable in the marketplace.
Level 3 —	Unobservable inputs which are supported by little or no market activity.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Earnings (Loss) Per Share (Policies)

3 Months Ended

Mar. 31, 2022

Policies

Earnings (Loss) Per Share

Earnings (Loss) Per Share

Earnings Per Share (‘EPS”) is computed by dividing net income available to common stockholders by the weighted average number of common stock shares outstanding during the year.  Diluted EPS is computed by dividing net income available to common stockholders by the weighted average number of common stock shares outstanding during the year plus potential dilutive instruments such as stock options and warrants.  

The effect of stock options on diluted EPS is determined through the application of the treasury stock method, whereby proceeds received by the Company based on assumed exercises are hypothetically used to repurchase the Company's common stock at the average market price during the period.  The Company has no stock options, warrants or other potentially dilutive instruments outstanding at March 31, 2022 and December 31, 2021.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Investment in Unconsolidated Joint Ventures (Policies)

3 Months Ended

Mar. 31, 2022

Policies

Investment in Unconsolidated Joint Ventures

Investment in Unconsolidated Joint Ventures

The Company entered into a JV agreement with an independent third party, to form a JV company. The joint venture agreement provides the Company with only the rights to the assets and obligation for the liabilities of the joint arrangement resting primarily with the JV. In adopting ASC Topic 323, Investments - Equity Method and Joint Ventures (Topic 323), the Company’s investment in joint venture is accounted for using the equity method.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Inventories (Policies)

3 Months Ended

Mar. 31, 2022

Policies

Inventories

Inventories

Inventories are carried at the lower of cost and net realizable value, as determined using the weighted average cost method. Management compares the cost of inventories with the net realizable value and if applicable, an allowance is made for writing down the inventory to its net realizable value, if lower than cost. On an ongoing basis, inventories are reviewed for potential write-down for estimated obsolescence or unmarketable inventories which equals the difference between the costs of inventories and the estimated net realizable value based upon forecasts for future demand and market conditions. When inventories are written-down to the lower of cost or net realizable value, it is not marked up subsequently based on changes in underlying facts and circumstances.

The Company entered into a purchase agreement with JV company and through their platform to purchase of gold. In adopting ASC Topic 330, Inventory, it permits certain inventories such as precious metals, agricultural and mineral inventories to be stated above cost in exceptional cases. We believe that because our business model is to trade gold and held in short-term, market value is a more useful and relevant measurement than lower of cost or market value.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Goodwill (Policies)

3 Months Ended

Mar. 31, 2022

Policies

Goodwill

Goodwill

Goodwill is recorded as the difference between the aggregate consideration paid for in a business combination and the fair value of the acquired net tangible and intangible assets acquired. The Company evaluates goodwill for impairment on an annual basis in the fourth quarter or more frequently if indicators of impairment exist that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. Based on that qualitative assessment, if it is more likely than not that the fair value of a reporting unit is less than its carrying value, the Company conducts a quantitative goodwill impairment test, which involves comparing the estimated fair value of the reporting unit with its carrying value, including goodwill. The Company estimates the fair value of a reporting unit using a combination of the income and market approach. If the carrying value of the reporting unit exceeds its estimated fair value, an impairment loss is recorded for the difference.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Non-controlling interest (Policies)

3 Months Ended

Mar. 31, 2022

Policies

Non-controlling interest

Non-controlling interest

Non-controlling interests represent the equity interests in the subsidiaries that are not attributable, either directly or indirectly, to the Company.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Recent Accounting Pronouncements (Policies)

3 Months Ended

Mar. 31, 2022

Policies

Recent Accounting Pronouncements

Recent Accounting Pronouncements

The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations, financial condition, or cash flows, based on current information.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Foreign Currency Translation: Schedule of Exchange Rates used for preparing the consolidated financial statements (Tables)

3 Months Ended

Mar. 31, 2022

Tables/Schedules

Schedule of Exchange Rates used for preparing the consolidated financial statements

	March 31,	December 31,
	2022	2021
Exchange rate on balance sheet dates
USD : HKD exchange rate	7.8235	7.7992
USD : MOP exchange rate	8.0582	8.0332
	For the three months ended March 31,
	2022	2021
Average exchange rate for the period
USD : HKD exchange rate	7.8049	7.7576
USD : MOP exchange rate	8.0390	N/A

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Property, plant and equipment: Schedule of Property, plant and equipment Useful Lives (Tables)

3 Months Ended

Mar. 31, 2022

Tables/Schedules

Schedule of Property, plant and equipment Useful Lives

The estimated useful lives of property, plant and equipment are as follows:
Office equipment	3-5 years
Furniture and fixtures	3-5 years

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NOTE 4 - PROPERTY, PLANT AND EQUIPMENT: Schedule of Property and Equipment (March 31, 2019 Unaudited) (Tables)

3 Months Ended

Mar. 31, 2022

Tables/Schedules

Schedule of Property and Equipment (March 31, 2019 Unaudited)

Schedule of Property and Equipment

	March 31, 2022			December 31, 2021
		(unaudited)
Office furniture and fixtures	$	60,447		$	55,369
Office equipment		156,891			137,118
Less:  accumulated depreciation		(125,922	)		(115,481	)
Property, plant and equipment, net	$	91,416		$	77,006

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NOTE 5 - INTANGIBLE ASSETS (Tables)

3 Months Ended

Mar. 31, 2022

Tables/Schedules

	March 31,			December 31,
	2022			2021
Software	$	2,027,116		$	1,940,614
Less:  accumulated amortization		(790,604	)		(714,613	)
Intangible assets, net	$	1,236,512		$	1,226,001

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NOTE 6 - GOODWILL: Schedule of Goodwill (Tables)

3 Months Ended

Mar. 31, 2022

Tables/Schedules

Schedule of Goodwill

		March 31, 2022	December 31, 2021
Goodwill	$	71,664,639	$	71,664,639
Less accumulated impairment losses		-		-
Balance at end of period	$	71,664,639	$	71,664,639

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NOTE 7 - RIGHT TO USE ASSETS AND LEASE LIABILITY: Schedule of Right to Use Assets (Tables)

3 Months Ended

Mar. 31, 2022

Tables/Schedules

Schedule of Right to Use Assets

		March 31, 2022	December 31, 2021
Macao and Zhuhai	$	1,204,080	$	1,175,932
Hong Kong		98,029		98,331
Subtotal		1,302,109		1,274,263
Less: accumulated depreciation		(688,114)		(687,341)
Right to use assets, net	$	613,995	$	586,922

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NOTE 7 - RIGHT TO USE ASSETS AND LEASE LIABILITY: Schedule of Lease Liability (Tables)

3 Months Ended

Mar. 31, 2022

Tables/Schedules

Schedule of Lease Liability

		March 31, 2022	December 31, 2021
Macao and Zhuhai	$	527,955	$	586,922
Hong Kong		86,040		-
Total lease liability		613,995		586,922
Less: short term portion		(391,566)		(400,009)
Long term portion	$	222,429	$	186,913

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NOTE 7 - RIGHT TO USE ASSETS AND LEASE LIABILITY: Schedule of Maturity Analysis under the Lease Agreements (Tables)

3 Months Ended

Mar. 31, 2022

Tables/Schedules

Schedule of Maturity Analysis under the Lease Agreements

		March 31, 2022	December 31, 2021
Period / year ended March 31, 2022 and December 31, 2021	$	655,825	$	627,609
Less: Present value discount		(41,830)		(40,687)
Lease liability	$	613,995	$	586,922

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NOTE 7 - RIGHT TO USE ASSETS AND LEASE LIABILITY: Schedule of Lease Expenses (Tables)

3 Months Ended

Mar. 31, 2022

Tables/Schedules

Schedule of Lease Expenses

Lease expense for the three months ended March 31, 2022 was comprised of the following:

Operating lease expense	$	150,302
Short-term lease expense		11,422
	$	161,724

Lease expense for the three months ended March 31, 2021 was comprised of the following:

Operating lease expense	$	13,251
Short-term lease expense		1,950
	$	15,201

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NOTE 12 - LOSS PER SHARE: Schedule of Computation of basic and diluted loss per common share (Tables)

3 Months Ended

Mar. 31, 2022

Tables/Schedules

Schedule of Computation of basic and diluted loss per common share

	March 31, 2022			March 31, 2021
			(unaudited)			(unaudited)
Numerator - basic and diluted
Net loss		$	(1,018,322)		$	(38,299)
Denominator
Weighted average number of common shares outstanding —basic and diluted			263,337,500			114,915,852
Loss per common share — basic and diluted		$	(0.004	)	$	(0.000	)

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NOTE 13 - JOINT VENTURE: Summarized financial information for joint venture - Balance Sheets (Tables)

3 Months Ended

Mar. 31, 2022

Tables/Schedules

Summarized financial information for joint venture - Balance Sheets

Balance Sheets:	March 31, 2022			December 31, 2021
	(unaudited)			(audited)
Property, plant and equipment, net	$	3,392		$	3,676
Other receivables and prepaid		9,127			8,920
Inventory		7,468,770			4,181,874
Cash and cash equivalents		932,901			1,379,175
Total assets		8,414,190			5,573,645
Other payable to shareholder		(4,604,276	)		(4,265,052	)
Customer deposit		(7,469,379	)		(4,885,447	)
Total liabilities		(12,073,655	)		(9,150,499	)
Net liabilities	$	(3,659,465	)	$	(3,576,854	)

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NOTE 13 - JOINT VENTURE: Summarized financial information for joint venture - Statement of Operations (Tables)

3 Months Ended

Mar. 31, 2022

Tables/Schedules

Summarized financial information for joint venture - Statement of Operations

Statement of Operations:	Three months ended March 31, 2022
	(unaudited)
Revenue	$	4,340,100
Less: Cost of sales		(4,237,321	)
		102,779
Operating expense		(143,189	)
Depreciation		(273	)
Net loss from operations		(40,683	)
Other income (expense):
Interest (expense) income, net		(53,266	)
Net loss	$	(93,949	)

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NOTE 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES (Details)	3 Months Ended
	Mar. 31, 2022
Details
Entity Incorporation, State or Country Code	UT
Entity Incorporation, Date of Incorporation	May 30, 2001

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Concentration of Credit Risk (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Details
Deposits in foreign bank accounts not subject to FDIC coverage	$ 4,648,529	$ 4,899,488

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Property, plant and equipment: Schedule of Property, plant and equipment Useful Lives (Details)	3 Months Ended
	Mar. 31, 2022
Office Equipment
The estimated useful lives of property, plant and equipment are as follows	3 years
Furniture and Fixtures
The estimated useful lives of property, plant and equipment are as follows	3 years

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NOTE 3 - GOING CONCERN (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Details
Net loss attributable to Scientific Energy, Inc	$ (1,018,322)	$ (38,299)
Accumulated deficit	$ (11,287,098)		$ (10,268,776)

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NOTE 4 - PROPERTY, PLANT AND EQUIPMENT: Schedule of Property and Equipment (March 31, 2019 Unaudited) (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Details
Office furniture and fixtures	$ 60,447	$ 55,369
Office equipment	156,891	137,118
Less: accumulated depreciation	(125,922)	(115,481)
Property, plant and equipment, net	$ 91,416	$ 77,006

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NOTE 5 - INTANGIBLE ASSETS (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Details
Software	$ 2,027,116	$ 1,940,614
Less: accumulated amortization	(790,604)	(714,613)
Intangible assets, net	$ 1,236,512	$ 1,226,001

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NOTE 6 - GOODWILL: Schedule of Goodwill (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Details
Goodwill	$ 71,664,639	$ 71,664,639
Less accumulated impairment losses	0	0
Goodwill	$ 71,664,639	$ 71,664,639

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NOTE 7 - RIGHT TO USE ASSETS AND LEASE LIABILITY: Schedule of Right to Use Assets (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Details
Right to use assets - Macao and Zhuhai	$ 1,204,080	$ 1,175,932
Right to use assets - Hong Kong	98,029	98,331
Right to use assets - Subtotal	1,302,109	1,274,263
Right to use assets - Less accumulated depreciation	(688,114)	(687,341)
Right to use assets, net	$ 613,995	$ 586,922

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NOTE 7 - RIGHT TO USE ASSETS AND LEASE LIABILITY (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Details
Recorded lease expense	$ 136,596	$ 12,318

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NOTE 7 - RIGHT TO USE ASSETS AND LEASE LIABILITY: Schedule of Lease Liability (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Details
Lease Liability - Macao and Zhuhai	$ 527,955	$ 586,922
Lease Liability - Hong Kong	86,040	0
Total lease liability	613,995	586,922
Lease Liability - Less: short term portion	(391,566)	(400,009)
Lease Liability - Long term portion	$ 222,429	$ 186,913

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NOTE 7 - RIGHT TO USE ASSETS AND LEASE LIABILITY: Schedule of Maturity Analysis under the Lease Agreements (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Details
Lease Liability - Year ended December 31, 2020	$ 655,825	$ 627,609
Lease Liability - Less: Present value discount	(41,830)	(40,687)
Lease liability	$ 613,995	$ 586,922

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NOTE 7 - RIGHT TO USE ASSETS AND LEASE LIABILITY: Schedule of Lease Expenses (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Details
Operating lease expense	$ 150,302	$ 13,251
Short-term lease expense	11,422	1,950
Operating Leases, Rent Expense	$ 161,724	$ 15,201

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NOTE 9 - INVENTORIES (Details)	Mar. 31, 2022 USD ($)
Details
Inventories for gold	$ 522

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NOTE 11 - CAPITAL STOCK (Details) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
Details
Common Stock, Shares Authorized	500,000,000	500,000,000
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	25,000,000	25,000,000
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares, Outstanding	263,337,500	263,337,500
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0

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NOTE 12 - LOSS PER SHARE: Schedule of Computation of basic and diluted loss per common share (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Details
NET LOSS	$ (1,018,322)	$ (38,299)
Weighted average common shares outstanding, basic and diluted	263,337,500	114,915,852
Net loss per common share, basic and diluted	$ (0.004)	$ (0.000)

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NOTE 13 - JOINT VENTURE: Summarized financial information for joint venture - Balance Sheets (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Details
Joint Venture - Property, plant and equipment, net	$ 3,392	$ 3,676
Joint Venture - Other receivables and prepaid	9,127	8,920
Joint Venture - Inventory	7,468,770	4,181,874
Joint Venture - Cash and cash equivalents	932,901	1,379,175
Joint Venture - Total assets	8,414,190	5,573,645
Joint Venture - Other payable	(4,604,276)	(4,265,052)
Joint Venture - Customer deposit	(7,469,379)	(4,885,447)
Joint Venture - Total liabilities	(12,073,655)	(9,150,499)
Joint Venture - Net liabilities	$ (3,659,465)	$ (3,576,854)

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NOTE 13 - JOINT VENTURE: Summarized financial information for joint venture - Statement of Operations (Details)	3 Months Ended
	Mar. 31, 2022 USD ($)
Details
Joint Venture - Revenue	$ 4,340,100
Joint Venture - Cost of sale	(4,237,321)
Joint Venture - Gross profit	102,779
Joint Venture - Operating expense	(143,189)
Joint Venture Depreciation	(273)
Joint Venture - Net loss from operations	(40,683)
Joint Venture - Interest (expense) income, net	(53,266)
Joint Venture - Net loss	$ (93,949)

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NOTE 14 - COMMITMENTS AND CONTINGENCIES (Details)	Mar. 31, 2022 USD ($)
Details
Capital Commitment Amount	$ 0