Accounting Policies, by Policy (Policies)

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Basis of Accounting and Presentation

Basis of Accounting and Presentation - The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

Use of Estimates

Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.

Leases

Leases- On March 31, 2022, the Company adopted ASU 2016-02, Leases (Topic 842). For all leases that were entered into prior to the effective date of Topic 842, the Company elected to apply the package of practical expedients. Based on this guidance the Company did not reassess the following: (1) whether any expired or existing contracts are or contain leases; (2) the lease classification for any expired or existing leases; and (3) initial direct costs for any existing leases. The adoption of Topic 842 did not have a material impact on the Company’s consolidated statements of operations and comprehensive income (loss).

Principles of Consolidation

Principles of Consolidation-The consolidated financial statements include the financial statements of PONY GROUP INC and its subsidiaries. All inter-company balances and transactions have been eliminated upon consolidation.

Company	Date of establishment	Place of establishment	Percentage of legal ownership by Wah Fu	Principal activities
Subsidiaries:
Pony HK	April 28, 2016	Hong Kong, PRC	100%	Car services
Universe Travel	February 2, 2019	Mainland, PRC	100%	Car services and Technological development and operation service

Cash and Cash Equivalents

Cash and Cash Equivalents – For purpose of the statements of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of 90 days or less to be cash equivalents. There is no cash equivalents as of December 31, 2023 and 2022.

Accounts Receivable

Accounts Receivable - The customers are required to make payments when they book the services, otherwise, the services will not be arranged. Sometimes, the Company extends credit to its group clients.

As of December 31, 2023 and December 31, 2022, accounts receivable were $20,224 and $25,633, respectively. The company considers accounts receivable to be fully collectible and determined that an allowance for doubtful accounts was not necessary.

For the year ended December 31, 2023, the following clients accounted for over 10% of the revenue for the company: Shenzhen Zhongke Hengjin with 27.56%; Shenzhen Eryuechuer Culture & Technology., Ltd, with 14.17%; and Shenzhen Shangjia Electronic Technology., Ltd with 11.81%.

The Company determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collections. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. The provision is recorded against accounts receivable balances, with a corresponding charge recorded in the consolidated statements of operations and comprehensive income (loss). Actual amounts received may differ from management’s estimate of credit worthiness and the economic environment. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable.

Revenue Recognition

Revenue Recognition - The Company recognizes revenue in accordance with ASC 606. The core principle of ASC606 is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASC 606 defines a five-step process to achieve this core principle, which includes: (1) identifying contracts with customers, (2) identifying performance obligations within those contracts, (3) determining the transaction price, (4) allocating the transaction price to the performance obligation in the contract, which may include an estimate of variable consideration, and (5) recognizing revenue when or as each performance obligation is satisfied. Our sales arrangements generally ask customers to pay in advance before any services can be arranged. The company recognizes revenue when each performance obligation is satisfied. Documents and terms and the completion of any customer acceptance requirements, when applicable, are used to verify services rendered. The Company has no returns or sales discounts and allowances because services rendered and accepted by customers are normally not returnable. 

Car service

The Company currently provides car services to individual and group travelers. It currently offers carpooling, airport pick-up and drop-off, and personal driver services for travelers between Guangdong Province and Hong Kong. It collaborates with car fleet companies and charge a service fee by matching the traveler and the driver. Redefining the user experience, the Company aims to provide its users with comprehensive and convenient service offerings and become a one-stop travel booking resource for travelers. When the traveler selects and initiates a car service request, an estimated service fee is displayed and the traveler can further decide whether to place the service request or not. Once the traveler places the ride service request and the Company accepts the service request, a car service agreement is entered into between the traveler and the Company. Upon completion of the car services, the Company recognizes ride hailing services revenues on a gross basis.

Technological development and operation service

Revenues from technological development service, including information technology system design and cloud platform development, revenue are recognized monthly by fixed amount based on the contract.

From time to time, the Company enters into arrangement to provide technological support and maintenance service of applications to its customers. the Company’s efforts are expended evenly throughout the service period. The revenues for the technological support and maintenance service are recognized over the support and maintenance services period, usually from 3 months to one year. The Company’s contracts have a single performance obligation and are primarily on a fixed-price basis. No significant returns, refund and other similar obligations during each reporting period.

Cost of revenue

Cost of revenue – For car services, cost of revenues, which are directly related to revenue generating transactions, primarily consists of driver earnings and driver incentives. For technological development and operation service, cost of revenue includes of the salaries of development department and the service fee paid to third party.

Income Taxes

Income Taxes – Income tax expense represents current tax expense. The income tax payable represents the amounts expected to be paid to the taxation authority. Hong Kong profits tax has been provided at the rate of 16.5% on the estimated assessable profit for the period.

Value added tax (“VAT”)

Value added tax (“VAT”) – Sales revenue derived from the invoiced car service and technological development and operation service is subject to VAT. Prior to that, the Company was subject to a fixed rate of business tax of 3%.

Foreign Currency Translation

Foreign Currency Translation – Pony HK’s functional currency is the Hong Kong Dollar (HK$) and Universe Travel’s functional currency is the Renminbi (RMB). The reporting currency is that of the US Dollar. Assets, liabilities and equity amounts are translated at the exchange rates as of the balance sheet date. Income and expenditures are translated at the average exchange rate of the year.

The exchange rates used to translate amounts in HK$ and RMB into USD for the purposes of preparing the financial statements were as follows:

December 31, 2023
Balance sheet	HK$7.81 to US $1.00	RMB 7.09 to US $1.00
Statement of operation and other comprehensive income	HK$7.83 to US $1.00	RMB 7.08 to US $1.00
December 31, 2022
Balance sheet	HK$7.80 to US $1.00	RMB 6.90 to US $1.00
Statement of operation and other comprehensive income	HK$7.83 to US $1.00	RMB 6.73 to US $1.00

Recent accounting pronouncements

Recent accounting pronouncements

The Company does not believe that any recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows

Restatement of Previously Issued Consolidated Financial Statements

Restatement of Previously Issued Consolidated Financial Statements

Restatement Background

The Company engaged our current auditor to re-perform an audit on our financial statements as of and for the year ended December 31, 2022. The impact of the restatement on the financial statements as of and for the year ended December 31, 2022 is presented below.

Restatement Reconciliation Tables

The effects of the reclassifications and restatement for the adjustments on the consolidated balance sheets, consolidated statements of comprehensive income (loss) and consolidated statements of cash flows are as follows:

Consolidated Balance Sheet

	As of December 31, 2022
	As previously reported			Restatement adjustments			As Restated
Assets
Current assets
Cash and cash equivalents	$	49,803		$	(15,807	)	$	33,996
Accounts receivables		10,723			14,910			25,633
Other receivables		285			43,059			43,344
Other receivables-related parties		8,998			(8,998	)		-
Operating lease right-of-use assets		-			4,316			4,316
Total current assets		69,809			37,480			107,289
Total assets	$	69,809		$	37,480		$	107,289
Liabilities and Equity
Current liabilities
Deferred revenue	$	-		$	14,910		$	14,910
Accounts payable		31,343			-			31,343
Operating lease liabilities		-			4,316			4,316
Other payable-related party		378,753			(4,886	)		373,867
Other current liability		15,257			43,060			58,317
Total current liabilities		425,353			57,400			482,753
Total liabilities	$	425,353		$	57,400		$	482,753
Stockholders’ equity
Common stock		11,500			-			11,500
Additional paid-in capital		176,000			-			176,000
Accumulated foreign currency exchange loss		6,360			6,575			12,935
Accumulated deficit		(549,404	)		(26,495	)		(575,899	)
Total stockholders’ equity		(355,544	)		(19,920	)		(375,464	)
Total liabilities and stockholders’ equity	$	69,809			37,480			107,289

Consolidated Statement of Comprehensive Income

	For the year ended December 31, 2022
	As previously reported			Restatement adjustments			As Restated
Revenue	$	112,844		$	1,444		$	114,288
Cost of revenue		45,001			32,042			77,043
Gross profit		67,843			(30,598	)		37,245
Operating expenses
General & administrative expenses		318,652			4,135			322,787
R&D expenses		23,816			(23,816	)		-
Total operating expenses		342,468			(19,681	)		322,787
Loss from operation		(274,625	)		(10,917	)		(285,542	)
Other income (expenses)
Other income (expense)		5,547			(4,033	)		1,514
Total other income (expense)		5,547			(4,033	)		1,514
Income (Loss) before income taxes		(269,078	)		(14,950	)		(284,028	)
Provision for income tax		-						-
Net Loss	$	(269,078	)	$	(14,950	)	$	(284,028	)
Other Comprehensive Income		-			11,280			11,280
Comprehensive loss		(269,078	)		(3,670	)		(272,748	)
Basic and diluted earnings per common share		(0.023	)		(0.002	)		(0.025	)

Consolidated Statement of Cash Flows

	For the Year ended December 31, 2022
	As previously reported			Restatement adjustments			As Restated
Cash flows from operating activities:
Net Loss	$	(269,078	)	$	(14,950	)	$	(284,028	)
Changes in operating assets and liabilities:
Accounts receivable		37,115			(8,393	)		28,722
Other receivable		16			(43,059	)		(43,043	)
Deferred revenue		-			8,393			8,393
Accounts payable		(5,709	)		-			(5,709	)
Other payable		(87,673	)		61,998			(25,675	)
Net cash used in operating activities		(325,329	)		3,989			(321,340	)
Cash flow from financing activities:
Advance from (repayment to) related party		92,603			(14,558	)		78,045
Net cash provided by financing activities		92,603			(14,558	)		78,045
Effects of currency translation on cash		16,518			(5,238	)		11,280
Net decrease in cash		(216,208	)		(15,807	)		(232,015	)
Cash at beginning of the period		266,011			-			266,011
Cash at end of period	$	49,803		$	(15,807	)	$	33,996