Form 10-Q EOS INC. For: Mar 31

May 23, 2022 6:57 AM EDT

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EOS INC.
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form 10-Q
 
(Mark One)
 
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
FOR THE QUARTERLY PERIOD ENDED: March 31, 2022
 
 
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
 
FOR THE TRANSITION PERIOD FROM __________ TO __________
 
COMMISSION FILE NUMBER 000-55661
 
EOS Inc.
(Exact name of registrant as specified in its charter)
 
Nevada
 
30-0873246
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
 
7F-1, No.162, Section 2 Zhong Shan N. Rd, Zhong Shan District,
Taipei Taiwan (Republic of China), 104
(Address of principal executive offices, Zip Code)
 
+886-2-2586-8300
(Registrant’s telephone number, including area code)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
N/A
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Former name or former address, if changed since last report)
 
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
 
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered
No
ne
 
No
ne
 
No
ne
 
Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act 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
     No
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes
     No
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
 
Emerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
     No
 
As of May 18, 2022, the number of shares of registrant’s common stock outstanding is 180,065,254.


 
 
 
EOS, Inc.
 

T
able of Contents
 

 
 
 
 
   
 
 
   
 
 
   
 
 
   
 

 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
2
 
PART I — FINANCIAL INFORMATION

Item 1. Financial Statements.
 
The following unaudited interim condensed consolidated financial statements of EOS Inc. are included in this Quarterly Report on Form 10-Q:

INDEX TO FINANCIAL STATEMENT
 
 
 
 
 
 
 
 
 
 
F-1
 
EOS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2022 AND DECEMBER 31, 2021 (UNAUDITED)
(In U.S. Dollars, except share data or otherwise stated)
 
 
 
 
March 31,
2022
 
 
December 31,
2021
 
 
Assets
 
 
 
 
 
 
Current Assets
 
 
 
 
$
 
 
Cash and cash equivalents
 
 
61,529
 
 
 
24,141
 
Accounts receivable
 
 
505,144
 
 
 
548,201
 
Inventory, net
 
 
88,570
 
 
 
29,573
 
Advance to suppliers
 
 
236,561
 
 
 
280,224
 
Security deposits
 
 
1,113,271
 
 
 
1,127,989
 
Prepaid expenses and other current assets
 
 
27,673
 
 
 
27,773
 
Total Current Assets
 
 
2,032,748
 
 
 
2,037,901
 
Non-Current Assets
 
 
 
 
 
 
 
 
Property and equipment, net
 
 
6,165
 
 
 
6,739
 
Operating lease right of use asset, net
 
 
73,620
 
 
 
85,419
 
Total Non-Current Assets
 
 
79,785
 
 
 
92,158
 
Total Assets
 
$
2,112,533
 
 
$
2,130,059
 
Liabilities and Stockholders’ Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities
 
 
 
 
$
 
 
Other payable and accrued expenses
 
 
88,106
 
 
 
88,040
 
Due to shareholders
 
 
250,344
 
 
 
30,858
 
Income tax payable
 
 
48,237
 
 
 
55,394
 
Other current liabilities
 
 
562,500
 
 
 
500,000
 
Operating lease liabilities - current
 
 
36,790
 
 
 
37,779
 
Short-term loan
 
 
58,251
 
 
 
80,047
 
Total Current Liabilities
 
 
1,044,228
 
 
 
792,118
 
Non-Current Liabilities
 
 
 
 
 
 
 
 
Long-term loan
 
 
197,309
 
 
 
204,133
 
Operating lease liabilities - non-current
 
 
36,830
 
 
 
47,640
 
Total Non-Current Liabilities
 
 
234,139
 
 
 
251,773
 
Total liabilities
 
 
1,278,367
 
 
 
1,043,891
 
 
 
 
 
 
 
 
 
 
Commitments and Contingencies
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
 
Stockholders’ Equity
 
 
 
 
 
 
 
 
Preferred stock ($0.001 par value, 5,000,000 shares authorized, 1,500,000 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively)
 
 
1,500
 
 
 
1,500
 
Common stock ($0.001 par value; 575,000,000 shares authorized, 180,065,254 and
180
,065,254
shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively)
 
 
180,065
 
 
 
180,065
 
Additional paid-in capital
 
 
29,060
 
 
 
29,060
 
Retained earnings
 
 
519,937
 
 
 
722,925
 
Accumulated other comprehensive income
 
 
88,976
 
 
 
133,056
 
Total stockholders’ equity
 
 
819,538
 
 
 
1,066,606
 
Non-controlling interest
 
 
14,628
 
 
 
19,562
 
Total Equity
 
 
834,166
 
 
 
1,086,168
 
 
 
 
 
 
 
 
 
 
Total Liabilities and Stockholders’ Equity
 
$
2,112,533
 
 
$
2,130,059
 
The accompanying notes are an integral part of these consolidated financial statements.
 
F-2
EOS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
FOR THE THREE MONTHS ENDED MARCH 31, 202
2
 
AND 2021
 (UNAUDITED)
(In U.S. Dollars, except share data or otherwise stated)
 
 
 
For the Three Months
 
 
 
Ended March 31,
 
 
 
2022
 
 
2021
 
Net sales
 
$
33,064
 
 
 
336,241
 
 
 
 
 
 
 
 
 
 
Cost of sales
 
 
6,675
 
 
 
19,759
 
 
 
 
 
 
 
 
 
 
Gross profit
 
 
26,389
 
 
 
316,482
 
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses
 
 
230,083
 
 
 
238,450
 
 
 
 
 
 
 
 
 
 
Income (Loss) from operations
 
 
(203,694
)
 
 
78,032
 
 
 
 
 
 
 
 
 
 
Other income (expense)
 
 
 
 
 
 
 
 
Interest income (expense)
 
 
(880
)
 
 
(4
)
Other income (expense)
 
 
(2,505
)
 
 
(5,102
)
Gain (loss) on foreign currency exchange
 
 
 
 
 
 
-
 
Total other income (expense)
 
 
(3,385
)
 
 
(5,106
)
 
 
 
 
 
 
 
 
 
Income (loss) before income tax provision
 
 
(207,079
)
 
 
72,926
 
 
 
 
 
 
 
 
 
 
Income tax provision
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
 
Net Income (loss)
 
$
(207,079
)
 
 
72,926
 
 
 
 
 
 
 
 
 
 
Other Comprehensive Income (Loss):
 
 
 
 
 
 
-
 
Net income (loss)
 
 
 
 
 
 
 
 
Net income (loss) attributable to non-controlling interests
 
$
(4,091
)
 
 
3,990
 
Net income (loss) attributable to EOS and subsidiaries
 
 
(202,988
)
 
 
68,936
 
Foreign currency translation adjustment, net of tax
 
 
(44,923
)
 
 
(24,028
)
Comprehensive (loss)
 
$
(252,002
)
 
 
48,898
 
 
 
 
 
 
 
 
 
 
Net (loss) income per share:
 
 
 
 
 
 
 
 
Basic and diluted
 
$
0.00
 
 
 
0.00
 
 
 
 
 
 
 
 
 
 
Weighted average number of common shares:
 
 
 
 
 
 
 
 
Basic and diluted
 
 
180,065,254
 
 
 
74,123
 
The accompanying notes are an integral part of these consolidated financial statements.
 
F-3
 
EOS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND 2021
(UNAUDITED)
(In U.S. Dollars, except share data or otherwise stated)
 
  
Common Stock
 
 
Preferred Stock
 
 
Accumulated
Addistional
Paid-in
 
 
Retained
 
 
Accumulated
Other
Comprehensive
Income/
 
 
Non-
Controlling
 
 
  
  
Shares
 
 
Amount
 
 
Shares
 
 
Amount
 
 
Capital
 
 
Earning
 
 
(Loss)
 
 
Interest
 
 
Total
 
Balance at December 31, 2021
 
 
180,065,254
 
 
$
180,065
 
 
 
1,500,000
 
 
$
1,500
 
 
$
29,060
 
 
$
722,925
 
 
$
133,056
 
 
$
19,562
 
 
$
1,086,168
 
Foreign currency translation adjustment
 
 
                        
(44,080
)
 
 
(843
)
 
 
(44,923
)
Net loss
 
 
                    
(202,988
)
 
 
    
(4,091
)
 
 
(207,079
)
Balance at March 31, 2022
 
 
180,065,254
 
 
$
180,065
 
 
 
1,500,000
 
 
$
1,500
 
 
$
29,060
 
 
$
519,937
 
 
$
88,976
 
 
$
14,628
 
 
$
834,166
 
                                     
Balance at December 31, 2020
 
 
74,123
 
 
 
74
 
 
 
          
186,474
 
 
 
1,058,090
 
 
 
87,051
 
 
 
24,544
 
 
 
1,356,233
 
Foreign currency translation adjustment
 
 
                         
(23,514
)
 
 
(514
)
 
 
(24,028
)
Net loss
 
 
                    
68,936
 
 
 
     
3,990
 
 
 
72,926
 
Balance at March 31, 2021
 
 
74,123
 
 
$
74
 
 
 
-
 
 
$
-
 
 
$
186,474
 
 
$
1,127,026
 
 
$
63,537
 
 
$
28,020
 
 
$
1,405,131
 
 
The accompanying notes are an integral part of these consolidated financial statements.
 
F-4
 
EOS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 202
2
 AND 2021
 (UNAUDITED)
(In U.S. Dollars, except share data or otherwise stated)
 
   
For the Three Months
 
   
Ended March 31,
 
Cash Flows from Operating Activities
 
 
2022
 
 
 
2021
 
Net income (loss)
 
$
(207,079
)
 
$
72,926
 
Adjustments to reconcile net income to net cash provided by operating activities
 
 
           
Depreciation
 
 
361
 
 
 
543
 
Amortization of right-of-use asset
 
 
9,135
 
 
 
   
Changes in assets and liabilities:
 
 
           
Decrease (increase) in accounts receivable
 
 
32,913
 
 
 
(258,172
)
Decrease (increase) in inventory
 
 
(60,454
)
 
 
5,503
 
Decrease (increase) in advance to suppliers