Quarterly report pursuant to Section 13 or 15(d)

Variable Interest Entities (Tables)

v3.20.2
Variable Interest Entities (Tables)
6 Months Ended
Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Variable Interest Entities

The following table presents the carrying values of the assets and liabilities of entities that are VIEs and consolidated by the Company at June 30, 2020:

 

    June 30, 2020     December 31, 2019  
    (Unaudited)        
             
Assets                
Current assets:                
Cash and cash equivalents   $ 802,033     $ 6,234  
Accounts receivable, net     955,246       21,697  
Inventory     20,623       51,090  
Prepaid expenses and other current assets     1,412,728       379,561  
Total current assets     3,190,630       458,582  
Property and equipment, net     24,001       32,661  
Total assets   $ 3,214,631     $ 491,243  
                 
Liabilities and stockholders’ equity                
Current liabilities:                
Accounts payable   $ 194,738     $ 337,648  
Accrued expenses and other current liabilities     15,806       -  
Deferred revenues     907,500       -  
Line of credit, net of debt issuance costs of $0 and $15,573, respectively     1,690,945       -  
Notes payable, current     150,000       -  
Due to related party     315,666       315,666  
Total current liabilities     3,274,655       12,973,319  

 

The following table presents the operations of entities that are VIEs and consolidated by the Company at June 30, 2020:

 

   

For the Three Months

Ended June 30,

   

For the Six Months

Ended June 30,

 
    2020     2019     2020     2019  
Revenues, net   $ 1,051,945     $ 80,120     $ 1,274,477     $ 285,542  
Cost of revenues     789,000       49,590       994,923       124,659  
Gross profit     262,945       30,530       279,554       160,883  
                                 
Operating expenses:                                
Selling, general and administrative     136,648       100,961       203,562       192,699  
Operating income     126,297       (70,431 )     75,992       (31,816 )
                                 
Other (expense) income:                                
Interest expense     (21,331 )     -       (56,956 )     -  
Total other (expense) income     (21,331 )     -       (56,956 )     -  
Loss before income taxes     104,966       (70,431 )     19,036       (31,816 )
Income tax expense     -       -       -       -  
Net income   $ 104,966     $ (70,431 )   $ 19,036     $ (31,816 )