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Document and Entity Information - USD ($)
12 Months Ended
Dec. 31, 2018
Apr. 01, 2019
Jun. 30, 2018
Document And Entity Information      
Entity Registrant Name Vitaxel Group Ltd    
Entity Central Index Key 0001623590    
Document Type 10-K    
Trading Symbol VXEL    
Document Period End Date Dec. 31, 2018    
Amendment Flag false    
Current Fiscal Year End Date --12-31    
Entity a Well-known Seasoned Issuer No    
Entity a Voluntary Filer No    
Entity's Reporting Status Current Yes    
Entity Filer Category Non-accelerated Filer    
Entity Small Business true    
Entity Emerging Growth Company false    
Entity Shell Company false    
Entity Public Float     $ 16,496,810
Entity Common Stock, Shares Outstanding   54,087,903  
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2018    
CONSOLIDATED BALANCE SHEETS - USD ($)
Dec. 31, 2018
Dec. 31, 2017
Current assets    
Cash and cash equivalents $ 1,004,397 $ 691,199
Accounts receivable 82
Amount due from related parties 4,928 136,010
Inventories 32,585 28,525
Other receivables, prepayments and other current assets 55,954 44,305
Total Current Assets 1,097,946 900,039
Non-current assets    
Property and equipment, net 141,730 231,058
Total Non-Current Assets 141,730 231,058
TOTAL ASSETS 1,239,676 1,131,097
CURRENT LIABILITIES    
Amounts due to related parties 4,862,363 2,370,003
Commission payables 138,118 152,871
Accounts payable 10,414 31,406
Accruals and other payables 381,514 492,813
Total current liabilities 5,392,409 3,047,093
TOTAL LIABILITIES 5,392,409 3,047,093
STOCKHOLDERS' EQUITY    
Preferred stock par value $0.0001:1,000,000 shares authorized; and 0 outstanding
Common stock par value $0.0001: 70,000,000 shares authorized; 54,087,903 and 54,087,903 shares issued and outstanding, respectively 5,409 5,409
Additional paid-in capital 4,749,798 4,749,798
Accumulated deficit (9,111,400) (6,776,474)
Accumulated other comprehensive income 203,460 105,271
Total Stockholders' Equity (4,152,733) (1,915,996)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,239,676 $ 1,131,097
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Dec. 31, 2018
Dec. 31, 2017
Statement of Financial Position [Abstract]    
Preferred stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Preferred stock, authorized 1,000,000 1,000,000
Preferred stock, outstanding 0 0
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, authorized 70,000,000 70,000,000
Common stock, issued 54,087,903 54,087,903
Common stock, outstanding 54,087,903 54,087,903
CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Income Statement [Abstract]    
REVENUE $ 35,191 $ 563,545
COST OF REVENUE (12,636) (112,559)
GROSS PROFIT 22,555 450,986
OPERATING EXPENSES    
Selling expense (5,706) (2,398)
General and administrative expenses (1,465,741) (4,652,853)
Total Operating Expenses (1,471,447) (4,655,251)
LOSS FROM OPERATIONS (1,448,892) (4,204,265)
OTHER INCOME/(EXPENSE), NET    
Management fee income 240,000
Other income 1,346 66,980
Bad debts (430,600)
Impairments (612,056)
Other expense (84,724) (51)
Total other income / (expense), net (886,034) 66,929
NET LOSS (2,334,926) (4,137,336)
OTHER COMPREHENSIVE (LOSS) / INCOME    
Foreign currency translation adjustment 98,189 (121,668)
TOTAL COMPREHENSIVE LOSS $ (2,236,737) $ (4,259,004)
Weighted average number of common shares outstanding - basic and diluted 54,087,903 54,087,903
Net loss per share - Basic and diluted $ (0.04) $ (0.08)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
Common Stock
Additional Paid-In Capital
Accumulated Deficit
Accumulated Other comprehensive income (loss)
Total
Balance, at beginning at Dec. 31, 2016 $ 5,099 $ 1,340,504 $ (2,639,138) $ 226,939 $ (1,066,596)
Balance, at beginning (in shares) at Dec. 31, 2016 50,987,250        
Equity incentive plan $ 310 3,409,294 3,409,604
Equity incentive plan (in shares) 3,100,290        
Effect from reverse stock split
Effect from reverse stock split (in shares) 363        
Net loss (4,137,336) (4,137,336)
Foreign currency translation adjustment (121,668) (121,668)
Balance, at end at Dec. 31, 2017 $ 5,409 4,749,798 (6,776,474) 105,271 $ (1,915,996)
Balance, at end (in shares) at Dec. 31, 2017 54,087,903       54,087,903
Net loss (2,334,926) $ (2,334,926)
Foreign currency translation adjustment 98,189 98,189
Balance, at end at Dec. 31, 2018 $ 5,409 $ 4,749,798 $ (9,111,400) $ 203,460 $ (4,152,733)
Balance, at end (in shares) at Dec. 31, 2018 54,087,903       54,087,903
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (2,334,926) $ (4,137,336)
Items not involving cash:    
Depreciation - property, plant and equipment 51,594 28,234
Issuance of employee equity incentive plan 3,409,604
Impairment on long term investments 612,056
Impairment on amount due from related parties 279,810
Impairment on amount due from associate company 150,790
Property and equipment written off and disposal 50,986
Inventories written off 829
Changes in operating assets and liabilities    
Accounts receivable (82) 1,944
Other receivables, prepayments and other current assets (11,649) (17,257)
Inventories (4,889) 25,388
Amount due from related parties (108,928)
Accounts Payable (20,992) 23,155
Commission payables (14,753) 36,956
Accrued expense and other payables (111,299) 46,326
Net cash used in from operating activities (1,352,525) (691,914)
CASH FLOWS FROM INVESTING ACTIVITIES    
Amount due from associated (47,766)
Purchase of long term investments (629,151)
Purchase of property, plant and equipment (13,252) (64,623)
Net cash used in investing activities (690,169) (64,623)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from directors (40,491) 5,427
Proceeds from related parties 2,417,635 1,281,248
Net cash provided by financing activities 2,377,144 1,286,675
EFFECT OF EXCHANGE RATES ON CASH (21,252) 55,629
NET CHANGE IN CASH AND CASH EQUIVALENTS 313,198 585,767
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 691,199 105,432
CASH AND CASH EQUIVALENTS AT END OF YEAR 1,004,397 691,199
SUPPLEMENTAL OF CASH FLOW INFORMATION    
Cash paid for interest expenses
Cash paid for income tax
ORGANIZATION AND BUSINESS
12 Months Ended
Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
ORGANIZATION AND BUSINESS
1. ORGANIZATION AND BUSINESS

 

Vitaxel Group Limited (the “Company”), incorporated in Nevada, is engaged in direct selling industry and online shopping platform primarily through its operating entities in Malaysia.

 

Vitaxel SDN BHD (“Vitaxel SB”), was incorporated in Malaysia on August 10, 2012. The Company is primarily engaged in the direct selling industry utilizing a multi-level marketing model with an emphasis on travel, entertainment and lifestyle products and services.

 

Vitaxel Online Mall SDN BHD (“Vionmall”), was incorporated in Malaysia on September 22, 2015. The Company is primarily in developing online shopping platforms geared to Vitaxel and its members and the third-party suppliers of products and services.

 

Vitaxel Singapore PTE. Ltd. (“Vitaxel Singapore”) was incorporated in Singapore on February 16, 2016. This subsidiary was disposed on August 21, 2017.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
12 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of presentation

 

The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

 

This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred. The Company’s financial statements are expressed in U.S. dollars.

 

Principles of Consolidation

 

The audited consolidated financial statements include the accounts of the Company and its subsidiaries. On consolidation, all intercompany balances and transactions are eliminated. The Company owns 100% interest in both of its subsidiaries, Vitaxel Sdn Bdn. and Vitaxel Online Mall Sdn.

 

Use of estimates

 

The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. The Company regularly evaluates estimates and assumptions. The Company bases its estimates and assumptions on current facts, historical experience and various other factors it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. Significant areas of estimate include useful lives of property and equipment, impairment of long-term assets and deferred income tax obligations. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. 

 

Foreign currency translation and transactions

 

The functional currency of the Company is the Malaysian Ringgit (“MYR”) and reporting currency of the Company is United States Dollar (“USD”). The financial statements of the Company are translated into USD using the exchange rate as of the balance sheet date for assets and liabilities and average exchange rate for the year for income and expense items. Translation gains and losses are recorded in accumulated other comprehensive income or loss as a component of shareholders’ equity.

 

Cash and cash equivalents

 

Cash and cash equivalents consist of cash on hand and highly liquid investments, which are unrestricted from withdrawal or use, and which have original maturities of three months or less when purchased.

 

Accounts receivable

 

Accounts receivable are recognized and carried at original invoiced amount less an allowance for any potential uncollectible amounts. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. The Company generally does not require collateral from its customers. For the year ended December 31, 2018 and 2017, the Company did not write off any accounts receivable as bad debts. The Company has provided an impairment on the amount due from HWGG of $279,810 and an impairment of $150,790 on the amount due from Vitaxel Thailand Co. Ltd.

 

Fair value of financial instruments

 

FASB ASC 820, “Fair Value Measurement,” specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources (observable inputs). In accordance with ASC 820, the following summarizes the fair value hierarchy:

 

Level 1 Inputs – Unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access.

 

Level 2 Inputs – Inputs other than the quoted prices in active markets that are observable either directly or indirectly.

 

Level 3 Inputs – Inputs based on prices or valuation techniques that are both unobservable and significant to the overall fair value measurements.

 

ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurements. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. As of December 31, 2018 and 2017, none of the Company’s assets and liabilities was required to be reported at fair value on a recurring basis. Carrying values of non-derivative financial instruments, including cash, accounts receivables, payables and accrued liabilities, approximate their fair values due to the short-term nature of these financial instruments. There were no changes in methods or assumptions during the periods presented.

 

Inventories

 

Inventories consist of finished goods. Inventories are stated at lower of cost or net realizable value, with cost determined on a weighted-average method, and not to exceed net realizable value. The Company writes down its inventory balances for obsolete amounts estimated on an individual basis for the finished goods. For the year ended December 31, 2018 and 2017, the Company written down $829 and $0 respectively, of its inventories that have been obsolete.

 

Long-term investment

 

The Company’s interests in associated companies are accounted for under equity method under U.S. GAAP. Under the equity method, if the Company’s share of losses of an associated company equals or exceeds the amount of investment plus advances made by the Company, the Company ordinarily discontinues including its share of losses and the investment is reported at nil value. If the associated company subsequently reports net income, the Company will resume applying the equity method only after its share of that net income equals the share of net losses not recognized during the period the equity method was suspended.

 

Property and equipment, net

 

Property, plant and equipment are carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives: 

  

  Office equipment 10 years  
  Computer equipment 5 years    
  Furniture and fixtures 10 years  
  Electrical & fitting 10 years  
  Motor vehicle 10 years  
  Software and website 5 years    
  Leasehold improvement 10 years  

 

The residual values, useful lives and methods of depreciation of property and equipment are reviewed and adjusted if appropriate, on an annual basis. During the financial year ended December 31, 2018, the Company has revised the estimated useful of Computer equipment and Software and website from 10 years to 5 years.

 

Revenue recognition

 

Effective January 1, 2018, the Company recognizes revenue pursuant to FASB Accounting Standards Codification 606 (“ASC 606”) Revenue from Contracts with Customers , the standard applies five step model (i) The standard applies to a company’s contracts with customers (ii) The unit of account for revenue recognition under the new standard is a performance obligation (a good or service) and the performance obligations will be accounted for separately if they are distinct (iii) The transaction price is determined based on the amount of consideration that a company expects to be entitled to from a customer (iv) The transaction price is allocated to all the separate performance obligations in an arrangement, and (v) Revenue will be recognized when an entity satisfies each performance obligation by transferring control of the promised goods or services to the customer. Goods or services can transfer at a point in time or over time.

 

Product sales − The Company recognizes revenue when it satisfies each performance obligation by transferring control of the goods to the independent members or purchasers of the products. Product sales are recognized net of product returns, discounts and taxes. A reserve for product returns is accrued based on historical experience. There was no deferred revenue accrued as of December 31, 2018 and 2017.

 

Membership fee − The Company recognizes the membership fee revenue over the term of the membership, which is 12 months. The revenue will not be recognized until the 10 days cooling-off period is expired. For the year ended December 31, 2018 and 2017, all membership fees were waived by the Company for promotion purpose, except for only 2 renewal fees totaling to $30 recognized in current year.

 

ASC was adopted January 1, 2018 and applied using the partial retrospective method. There was no impact from the adoption of ASC 606 on the Company’s accounting for revenue.

 

Commission expense

 

Commission expense incurred by the Company is recognized as cost of revenue and as a liability (commission payable in the consolidated balance sheet. Commission expense is not recoverable once recognized and is expensed as incurred.

 

Income Taxes

 

Income taxes are determined using the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes that date of enactment. In addition, a valuation allowance is established to reduce any deferred tax asset for which it is determined that it is more likely than not that some portion of the deferred tax asset will not be realized. 

 

U.S. Corporate Income Tax

 

The Company is subject to U.S. corporate income tax on its taxable income at a rate of up to 21% for taxable years beginning after December 31, 2017 and U.S. corporate income tax on its taxable income of up to 35% for prior tax years. Recent U.S. federal tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the “U.S. Tax Reform”), was signed into law on December 22, 2017. The U.S. Tax Reform significantly modified the U.S. Internal Revenue Code by, among other things, reducing the statutory U.S. federal corporate income tax rate from 35% to 21% for taxable years beginning after December 31, 2017; limiting and/or eliminating many business deductions; migrating the U.S. to a territorial tax system with a one-time transition tax on a mandatory deemed repatriation of previously deferred foreign earnings of certain foreign subsidiaries; subject to certain limitations, generally eliminating U.S. corporate income tax on dividends from foreign subsidiaries; and providing for new taxes on certain foreign earnings. Taxpayers may elect to pay the one-time transition tax over eight years, or in a single lump-sum payment. See Note 8 – Income Tax.

 

To the extent that portions of its U.S. taxable income, such as Subpart F income or global intangible low-taxed income (“GILTI”), are determined to be from sources outside of the U.S., subject to certain limitations, the Company may be able to claim foreign tax credits to offset its U.S. income tax liabilities. Any remaining liabilities are accrued in the Company’s consolidated statements of comprehensive income and estimated tax payments are made when required by U.S. law.

 

Uncertain Tax Positions

 

The impact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes are classified as a component of the provisions for income taxes. The Company did not recognize any income tax due to uncertain tax positions or incur any interest and penalties related to potential underpaid income tax expense as of December 31, 2018 and 2017.

 

Comprehensive loss

 

Comprehensive loss includes net loss and cumulative foreign currency translation adjustments and is reported in the Combined Statement of Comprehensive Loss.

 

Loss per share

 

The loss per share is computed using the weighted average number of shares outstanding during the fiscal years. For the years ended December 31, 2018 and 2017, there was no dilutive effect due to net loss.

 

Related party transactions

 

The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.

 

Pursuant to Section 850-10-20 the related parties include (a) affiliates of the registrant; (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; (d) principal owners of the Company; (e) management of the Company; (f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The financial statements include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s) involved; (b) description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

 

Recently issued accounting pronouncements

 

In February 2016, the FASB issued ASU No. 2016-02, Leases, to improve financial reporting about leasing transactions. This ASU will require organizations that lease assets (“lessees”) to recognize a lease liability and a right-of-use asset on its balance sheet for all leases with terms of more than twelve months. A lease liability is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and a right-of-use asset represents the lessee’s right to use, or control use of, a specified asset for the lease term. The amendments in this ASU simplify the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. This ASU leaves the accounting for the organizations that own the assets leased to the lessee (“lessor”) largely unchanged except for targeted improvements to align it with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. ASU No. 2016-02 is effective for reporting periods beginning after December 15, 2018. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

 

In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments”. The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. ASU 2016-15 is effective for the Company beginning in the first quarter of fiscal 2019. Early adoption is permitted, provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. The Company is currently evaluating the impact of adopting this guidance.

 

On May 10, 2017, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) 2017-09 “Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting”, which provides guidance to clarify when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The guidance is effective prospectively for all companies for annual periods beginning on or after December 15, 2017. Early adoption is permitted. The adoption of this guidance had no impact on its consolidated financial statements.

 

In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which improves fair value disclosure requirements by removing disclosures that are not cost beneficial, clarifying disclosures’ specific requirements and adding relevant disclosure requirements. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted and an entity can choose to early adopt any removed or modified disclosures upon issuance of this ASU and delay adoption of the additional disclosures until their effective date. The Company is still evaluating the impact that the adoption of ASU 2018-13 will have on the consolidated financial statements and has not yet decided whether or not to early adopt the amendments.

 

Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the Securities and Exchange Commission (“SEC”) did not, or are not believed by management, to have a material impact on the Company’s present and future consolidated financial statements.

 

Reclassification: Certain reclassifications have been made to the prior period amounts to conform to the current period’s presentation.

GOING CONCERN
12 Months Ended
Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
GOING CONCERN
3. GOING CONCERN

 

These consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future.

 

For the year ended December 31, 2018, the Company reported a net loss of $2,334,926 and working capital deficit of $4,294,463. The Company had an accumulated deficit of $9,111,400 as of December 31, 2018.

 

The continuation of the Company as a going concern is dependent upon improving the profitability and the continuing financial support from its stockholders or other capital sources. Management believes that the continuing financial support from the existing shareholders or external debt financing will provide the additional cash to meet the Company’s obligations as they become due. There is no certainty that further funding will be available as needed. These factors raise substantial doubt about the ability of the Company to continue operating as a going concern.

 

These consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of the Company’s ability to continue as a going concern.

OTHER RECEIVABLES, PREPAYMENTS AND OTHER CURRENTASSETS
12 Months Ended
Dec. 31, 2018
Other Receivables And Other Assets  
OTHER RECEIVABLES, PREPAYMENTS AND OTHER CURRENTASSETS
4. OTHER RECEIVABLES, PREPAYMENTS AND OTHER CURRENTASSETS

 

Other receivables, prepayments and other current assets consist of the following:

 

      As of 
December 31,
2018
    As of 
December 31,
2017
 
               
Deposits (1)     $ 47,161     $ 11,157  
Prepayments (2)       8,555       1,679  
Others (3)       238       31,469  
      $ 55,954     $ 44,305  

 

(1)         Deposits represented payments for rental, utilities, construction funds to government department and deposit payment to product suppliers.

(2)         Prepayments mainly consists of prepayment for insurance and IT related fees.

(3)         Others mainly consists other miscellaneous payments

LONG-TERM INVESTMENT
12 Months Ended
Dec. 31, 2018
Equity Method Investments and Joint Ventures [Abstract]  
LONG-TERM INVESTMENT
5. LONG-TERM INVESTMENT

 

    As of 
December 31,
2018
    As of 
December 31,
2017
 
             
Investment in associated companies                
Vitaxel Corporation Thailand Co., Ltd (1)                
Cost   $ 27,539     $ 27,539  
Share of loss in investment in an associated company     (25,716 )     (25,716 )
Foreign currency translation adjustment     (1,823 )     (1,823 )
Total investment in associated companies         $  
                 
Other long-term investments                
Ho Wah Genting Group Ltd (2)                
Cost   $ 629,151     $  
Impairment on carrying amount     (612,056 )      
Foreign currency translation adjustment     17,095        
Total other long-term investments   $     $  
Total Long-Term Investments   $     $  

 

(1)         On April 20, 2016, the Company invested 958,000 Thai Baht or $27,539 to Vitaxel Corporation Thailand Co., Ltd., a company registered in Thailand, and holds 47.99% shares of it. The long-term investment is accounted using the equity method.

 

The Company entered into a Sale and Purchase Agreement dated July 2, 2018 to sell all the total and outstanding shares of Vitaxel Corporation Thailand Co. Ltd. for total proceeds of $10,000. The disposal has been completed as of the date of this report.

 

As of December 31, 2018, the Company has provided impairment on the amount due from Vitaxel Corporation Thailand Co., Ltd of $150,535.

 

(2)         During the year ended December 31, 2018, the Company acquired 7,663,246 shares of common stock of Ho Wah Genting Group Limited (“HWGG”), which is listed on the U.S. OTC (Pink) Market (stock code: HWGG), for consideration of MYR2,466,993 or US$629,151 from certain shareholders of HWGG. This resulted in ownership by the Company of approximately 1.53% of HWGG

 

The President of the Company, Dato’ Lim Hui Boon, is also the President of HWGG.

 

In the absence of active market participants and liquidity for HWGG stock based on the review of the trading history of this stock, management concluded that there is no active market for the stock. There is significant doubt about HWGG’s ability to continue as a going concern and thus the management deemed that the stock has no readily determinable fair value.

 

As of December 31, 2018, the Company has provided impairment of $612,056 investment of HWGG.

PROPERTY, PLANT AND EQUIPMENT
12 Months Ended
Dec. 31, 2018
Property, Plant and Equipment, Net [Abstract]  
PROPERTY, PLANT AND EQUIPMENT, NET
6. PROPERTY AND EQUIPMENT

 

Property and equipment, net consist of the following:

 

    As of 
December 31,
2018
    As of 
December 31,
2017
 
             
Office equipment   $ 36,163     $ 36,471  
Computer equipment     72,123       102,862  
Furniture and fittings     7,557       7,978  
Electrical & fitting           375  
Motor vehicle           16,983  
Software and website     12,757       11,580  
Renovations     103,038       108,860  
      231,638       285,109  
Less: Accumulated depreciation     (89,908 )     (54,051 )
 Balance at end of year   $ 141,730     $ 231,058  

 

Depreciation expenses charged to the statements of loss and comprehensive loss for the years ended December 31, 2018 and 2017 were $51,594 and $28,234 respectively. 

ACCRUALS AND OTHER PAYABLES
12 Months Ended
Dec. 31, 2018
Payables and Accruals [Abstract]  
ACCRUALS AND OTHER PAYABLES
7. ACCRUALS AND OTHER PAYABLES

 

Accruals and other payables consist of the following:

 

    As of 
December 31,
2018
    As of 
December 31,
2017
 
             
Provisions and accruals   $ 67,989     $ 148,326  
Others (1)     313,525       344,487  
 Balance at end of year   $ 381,514     $ 492,813  

 

(1)         Other payables mainly consist of members allocated redemption points and commission payable.

INCOME TAX
12 Months Ended
Dec. 31, 2018
Disclosure Text Block [Abstract]  
INCOME TAX
8. INCOME TAX

 

Income taxes consisted of Malaysia income tax and U.S. income tax. Malaysia income tax rate is 24% (2017: 24%) and United States of America income tax rate is 21% (2017: 34%). A reconciliation of income taxes at statutory rates is as follows:

 

    For the year ended  
    December 31,
2018
    December 31,
2017
 
Loss before income tax   $ (2,334,926 )   $ (4,137,336 )
Statutory rate     21 %     34 %
Expected income tax recovery   $ (490,000 )   $ (1,407,000 )
Permanent difference     179,000       1,169,000  
Effect of change in tax rate     45,000        
Change in valuation allowance     266,000       238,000  
Income tax recovery   $     $  

 

Deferred tax assets are as follows:  

 

    For the year ended  
    December 31,
2018
    December 31,
2017
 
Non-capital loss carry-forwards   $ 761,000     $ 522,000  
Property and equipment           (27,000 )
      761,000       495,000  
Unrecognized deferred tax assets     (761,000 )     (495,000 )
Current tax expenses   $     $  

 

Total loss carryforwards is $899,994 for U.S and $2,382,090 for Malaysia.

RELATED PARTIES TRANSCTIONS
12 Months Ended
Dec. 31, 2018
Related Party Transactions [Abstract]  
RELATED PARTIES TRANSCTIONS
9. RELATED PARTY TRANSACTIONS

 

    As of 
December 31,
2018
    As of 
December 31,
2017
 
Amount due from related parties                
Ho Wah Genting Berhad (1)   $ 4,928     $  
Ho Wah Genting Group Sdn Berhad (2)           18,149  
Beedo Sdn Bhd (3)           14,837  
Balance at end of year   $ 4,928     $ 32,986  

 

             
Amount of due from an associated company            
Vitaxel Corporation (Thailand) Limited (4)   $     $ 103,024  
Balance at end of year           103,024  
Total Amount due from related parties   $ 4,928     $ 136,010  

 

             
Amount of due to related parties            
Dato’ Lim Hui Boon (5)   $     $ 40,491  
Ho Wah Genting Holiday Sdn Bhd (6)     170       1,703  
Genting Highlands Taxi Services Sdn Bhd (7)           11,820  
VSpark Malaysia Sdn Bhd (8)           4,967  
Grande Legacy Inc. (9)     4,862,193       2,311,022  
Balance at end of year     4,862,363       2,370,003  
Total Amount due to related parties   $ 4,862,363     $ 2,370,003  

 

The related parties balances are unsecured, interest-free and repayable on demand.

 

  (1) The President of the Company, Dato’ Lim Hui Boon, is also the Group President of Ho Wah Genting Berhad (“HWGB”), a company listed in Bursa Malaysia Main Market.

 

The Company recognized rent expenses of $20,840 (2017 - $19,261) to HWGB during the years ended December 31, 2018 and 2017.

 

The Company has a lease commitment under an operating lease for its corporate office facility with HWGB. The lease expires by December 31, 2019 and the remaining commitment as at December 31, 2018 is $20,840.

 

  (2) The President of the Company, Dato’ Lim Hui Boon, is also the Group President of Ho Wah Genting Group Sdn Berhad (“HWGGSB”), a subsidiary of HWGG.

 

  (3) The President of the Company, Dato’ Lim Hui Boon, is a major shareholder of Beedo Sdn Bhd, holding 51% of share interest.

 

The Company recognized website maintenance expenses of $nil (2017 - $32,102) to Beedo Sdn Bhd during the years ended December 31, 2018 and 2017.

 

  (4) The Company recognized product sales of $nil (2017 - $455,361) to an associated company, Vitaxel Corp. (Thailand) Limited during the year ended December 31, 2018 and 2017.

 

  (5) The amount due to the President of the Company, Dato’ Lim Hui Boon, as at December 31, 2017 were advances made to the Company.

 

  (6) A former director of the Company, Lim Chun Hoo, is also a director of Ho Wah Genting Holiday Sdn Bhd. On March 31, 2017, Lim Chun Hoo has resigned from the Company.

 

  (7) A director of the Company, Lim Wee Kiat, is also a director of Genting Highlands Taxi Services Sdn Bhd and of Vitaxel Sdn Bhd.

 

  (8) A director of a subsidiary (Vitaxel Online Mall Sdn Bhd), Liew Jenn Lim, is also a director of VSpark Malaysia Sdn Bhd.

 

The Company has engaged with VSpark Malaysia Sdn Bhd for marketing purposes. The Company also recognize product sales of $nil and $300 to VSpark Malaysia Sdn Bhd during the years ended December 31, 2018 and December 31, 2017 respectively.

 

  (9) A director of the Company, Leong Yee Ming, is also a director of Grande Legacy Inc.

 

On January 5, 2017, the Company executed a license agreement with Grande Legacy Inc (“GL”). The agreement grants GL exclusive use of Vitaxel Marks to operate a Vitaxel business in countries other than Malaysia, Singapore and Thailand. However, GL is still in the process of obtaining online payment gateway for its credit card sales, GL is currently engaging Vitaxel SB to collect credit card sales proceeds on behalf.

 

On July 1, 2018, the Company signed an amendment to licensing agreement with GL, providing the revised terms of royalty payment. GL shall pay the Company royalty equal to 55% of net profits on a quarterly basis, commencing July 1, 2018. During the year ended December 31, 2018, the Company recognized $nil royalty income due GL incurring losses for the six months ended December 31, 2018.

 

On July 1, 2018, Vitaxel SB has entered into a management and administrative services agreement with GL. The agreement is to provide certain management and administrative support services for the operation of GL. For these services, Vitaxel SB shall charge a monthly management fee of $40,000 to GL. The Company recognized management fee income of $240,000 charged to GL for the year ended December 31, 2018.

 

  (10) Total payment made in the form of compensation, which includes salary, bonus, stock awards and all other compensation have been made to the following:

 

    As of 
December 31,
2018
    As of 
December 31,
2017
 
             
Dato’ Lim Hui Boon   $ 230,000     $ 1,146,531  
Lim Wee Kiat     65,158       1,171,732  
Leong Yee Ming     50,612       1,156,767  
Balance at end of year   $ 345,770     $ 3,475,030  
COMMITMENTS AND CONTINGENCIES
12 Months Ended
Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES
10. COMMITMENTS AND CONTIGENCIES

 

Capital Commitments

 

As of December 31, 2018, and 2017, Company has no capital commitments.

 

Operation Commitments

 

The total future minimum lease payments under the non-cancellable operating lease with respect to the office and the dormitory, as well as hardware trading platform as of December 31, 2018 are payable as follows:

 

2019       59,047  
Total     $ 59,047  

 

Rental expense of the Company was $95,364 and $77,010 for the years ended December 31, 2018 and 2017, respectively.

SHAREHOLDERS’ EQUITY
12 Months Ended
Dec. 31, 2018
Stockholders' Equity Note [Abstract]  
VITAXEL GROUP LIMITED SHAREHOLDERS' EQUITY
11. SHAREHOLDERS’ EQUITY

 

The Company has 1,000,000 shares authorized for preferred stock, with 0 outstanding during the year ended December 31, 2018 and 2017.

 

The Company also has 70,000,000 shares authorized for common stock, with 54,087,903 outstanding during the year December 31, 2018 and 2017.

 

Reverse Stock split

 

On May 25, 2017, the Board of Directors of the Company authorized and approved an amendment (the “Amendment”) to the Company’s Amended and Restated Articles of Incorporation, which authorized a one hundred-to-one reverse stock split (the “Reverse Split”) of Vitaxel’s outstanding common stock, par value $0.000001 per share, with a record date of June 12, 2017 (the “Record Date”). 

 

As of the effective date of the Reverse Split, every 100 outstanding shares of the Company’s common stock automatically became one share of common stock. The Company’s authorized shares of common stock were reduced in proportion to the reverse split ratio, from 7,000,000,000 shares of authorized common stock prior to the effective date to 70,000,000 shares of authorized common stock on the effective date, and from 100,000,000 shares of authorized preferred stock prior to the effective date to 1,000,000 shares of authorized preferred stock on the effective date. Additionally, as part of the Reverse Split, the par value of both the Company’s common stock and its preferred stock was increased from $0.000001 per share to $0.0001 per share. Immediately prior to the Reverse Split the Company had 5,408,754,000 common shares issued and outstanding and had approximately 54,087,540 common shares issued and outstanding immediately after the Reverse Split.

 

On May 30, 2017, the Board of Directors of the Company authorized and approved a related increase in the par value of Vitaxel common stock from $0.000001 to $0.0001.

 

On June 13, 2017, the Company received approval from the Financial Industry Regulatory Authority (“FINRA”) to effectuate the Reverse Split at the open of business on June 15, 2017.

 

Equity Compensation Plans

 

On January 18, 2016, our board of directors adopted, and on the same date, our stockholders holding a majority of our outstanding shares of Common Stock approved, the 2016 Equity Incentive Plan (“2016 Plan”), which reserves a total of 10,000,000 shares of our Common Stock for issuance under the 2016 Plan. In December 2017, the Board of Directors of the Company increased the number of shares under the 2016 Plan to 40,000,000 shares.

 

During the year ended December 31, 2017, the Company has issued 3,100,290 shares of non-restricted stock under the 2016 Plan and recognized $3,409,604 stock based compensation.

PROPOSED TRANSACTIONS
12 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
PROPOSED TRANSACTIONS
12. PROPOSED TRANSACTIONS

 

The Company entered into a Share Sale Agreement (the “Agreement”) effective December 15, 2017 with Lim Hui Sing and Leong Yee Ming (together, the “Sellers”) and Vitaxel SB (the “Purchaser”), as previously described in the Company’s Current Report on Form 8-K filed with the SEC on December 19, 2017 as amended on January 3, 2018 and June 11, 2018. Pursuant to the terms of the Agreement, the Sellers will sell to the Purchaser all their shares in GL, a British Virgin Islands company, resulting in the Company becoming the indirect owner of all of the issued and outstanding shares of the capital stock of GL. In consideration for such sale, the Company agreed to issue to the Sellers an aggregate of 75,000,000 shares of the Company.

 

On January 3, 2018 the parties to the Agreement executed and delivered an amendment (the “Amendment”) to the Agreement which provided that the acquisition of GL shall close upon satisfaction of both of the following conditions:

 

i.   The completion of the financial statements of GL being audited; and

ii.  The issuance of 75,000,000 shares of the Company to the Sellers within 30 days of the Company obtaining shareholder approval of the amendment to the Articles of Incorporation of the Company for increasing the amount of authorized shares.

 

On September 21, 2018, the Company received legal letter from the shareholders of GL to terminate the acquisition agreement and alleging that the Company exceeded its time to satisfy said conditions, which were to be completed by June 15, 2018.

 

On December 5, 2018, the Company entered into a termination and release agreement with GL in relation to the above termination, without any claims from either party. Notwithstanding the mention termination of acquisition, the License Agreement and Management and Administrative Services Agreement entered into by the Company and GL on January 5, 2017 and July 1, 2018 are still in full force and effect.

 

On January 1, 2019, the Company signed an amendment to licensing agreement with GL, providing the revised terms of royalty payment. GL shall pay the Company royalty equal to 4% of revenue on a quarterly basis, commencing January 1, 2019.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
12 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
Basis of presentation

Basis of presentation

 

The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

 

This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred. The Company’s financial statements are expressed in U.S. dollars.

Principles of Consolidation

Principles of Consolidation

 

The audited consolidated financial statements include the accounts of the Company and its subsidiaries. On consolidation, all intercompany balances and transactions are eliminated. The Company owns 100% interest in both of its subsidiaries, Vitaxel Sdn Bdn and Vitaxel Online Mall Sdn.

Use of estimates

Use of estimates

 

The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. The Company regularly evaluates estimates and assumptions. The Company bases its estimates and assumptions on current facts, historical experience and various other factors it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. Significant areas of estimate include useful lives of property and equipment, impairment of long-term assets and deferred income tax obligations. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. 

Foreign currency translation and transactions

Foreign currency translation and transactions

 

The functional currency of the Company is the Malaysian Ringgit (“MYR”) and reporting currency of the Company is United States Dollar (“USD”). The financial statements of the Company are translated into USD using the exchange rate as of the balance sheet date for assets and liabilities and average exchange rate for the year for income and expense items. Translation gains and losses are recorded in accumulated other comprehensive income or loss as a component of shareholders’ equity.

Cash and cash equivalents

Cash and cash equivalents

 

Cash and cash equivalents consist of cash on hand and highly liquid investments, which are unrestricted from withdrawal or use, and which have original maturities of three months or less when purchased.

Accounts receivable

Accounts receivable

 

Accounts receivable are recognized and carried at original invoiced amount less an allowance for any potential uncollectible amounts. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. The Company generally does not require collateral from its customers. For the year ended December 31, 2018 and 2017, the Company did not write off any accounts receivable as bad debts. The Company has provided an impairment on the amount due from HWGG of $279,810 and an impairment of $150,790 on the amount due from Vitaxel Thailand Co. Ltd.

Fair value of financial instruments

Fair value of financial instruments

 

FASB ASC 820, “Fair Value Measurement,” specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources (observable inputs). In accordance with ASC 820, the following summarizes the fair value hierarchy:

 

Level 1 Inputs – Unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access.

 

Level 2 Inputs – Inputs other than the quoted prices in active markets that are observable either directly or indirectly.

 

Level 3 Inputs – Inputs based on prices or valuation techniques that are both unobservable and significant to the overall fair value measurements.

 

ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurements. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. As of December 31, 2018 and 2017, none of the Company’s assets and liabilities was required to be reported at fair value on a recurring basis. Carrying values of non-derivative financial instruments, including cash, accounts receivables, payables and accrued liabilities, approximate their fair values due to the short-term nature of these financial instruments. There were no changes in methods or assumptions during the periods presented.

Inventories

Inventories

 

Inventories consist of finished goods. Inventories are stated at lower of cost or net realizable value, with cost determined on a weighted-average method, and not to exceed net realizable value. The Company writes down its inventory balances for obsolete amounts estimated on an individual basis for the finished goods. For the year ended December 31, 2018 and 2017, the Company written down $829 and $0 respectively, of its inventories that have been obsolete.

Long-term investment

Long-term investment

 

The Company’s interests in associated companies are accounted for under equity method under U.S. GAAP. Under the equity method, if the Company’s share of losses of an associated company equals or exceeds the amount of investment plus advances made by the Company, the Company ordinarily discontinues including its share of losses and the investment is reported at nil value. If the associated company subsequently reports net income, the Company will resume applying the equity method only after its share of that net income equals the share of net losses not recognized during the period the equity method was suspended.

Property, plant and equipment, net

Property and equipment, net

 

Property, plant and equipment are carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives: 

  

  Office equipment 10 years  
  Computer equipment 5 years    
  Furniture and fixtures 10 years  
  Electrical & fitting 10 years  
  Motor vehicle 10 years  
  Software and website 5 years    
  Leasehold improvement 10 years  

 

The residual values, useful lives and methods of depreciation of property and equipment are reviewed and adjusted if appropriate, on an annual basis. During the financial year ended December 31, 2018, the Company has revised the estimated useful of Computer equipment and Software and website from 10 years to 5 years.

Revenue recognition

Revenue recognition

 

Effective January 1, 2018, the Company recognizes revenue pursuant to FASB Accounting Standards Codification 606 (“ASC 606”) Revenue from Contracts with Customers , the standard applies five step model (i) The standard applies to a company’s contracts with customers (ii) The unit of account for revenue recognition under the new standard is a performance obligation (a good or service) and the performance obligations will be accounted for separately if they are distinct (iii) The transaction price is determined based on the amount of consideration that a company expects to be entitled to from a customer (iv) The transaction price is allocated to all the separate performance obligations in an arrangement, and (v) Revenue will be recognized when an entity satisfies each performance obligation by transferring control of the promised goods or services to the customer. Goods or services can transfer at a point in time or over time.

 

Product sales − The Company recognizes revenue when it satisfies each performance obligation by transferring control of the goods to the independent members or purchasers of the products. Product sales are recognized net of product returns, discounts and taxes. A reserve for product returns is accrued based on historical experience. There was no deferred revenue accrued as of December 31, 2018 and 2017.

 

Membership fee − The Company recognizes the membership fee revenue over the term of the membership, which is 12 months. The revenue will not be recognized until the 10 days cooling-off period is expired. For the year ended December 31, 2018 and 2017, all membership fees were waived by the Company for promotion purpose, except for only 2 renewal fees totaling to $30 recognized in current year.

 

ASC was adopted January 1, 2018 and applied using the partial retrospective method. There was no impact from the adoption of ASC 606 on the Company’s accounting for revenue.

Commission expense

Commission expense

 

Commission expense incurred by the Company is recognized as cost of revenue and as a liability (commission payable in the consolidated balance sheet. Commission expense is not recoverable once recognized and is expensed as incurred.

Income taxes

Income Taxes

 

Income taxes are determined using the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes that date of enactment. In addition, a valuation allowance is established to reduce any deferred tax asset for which it is determined that it is more likely than not that some portion of the deferred tax asset will not be realized. 

U.S. Corporate Income Tax

U.S. Corporate Income Tax

 

The Company is subject to U.S. corporate income tax on its taxable income at a rate of up to 21% for taxable years beginning after December 31, 2017 and U.S. corporate income tax on its taxable income of up to 35% for prior tax years. Recent U.S. federal tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the “U.S. Tax Reform”), was signed into law on December 22, 2017. The U.S. Tax Reform significantly modified the U.S. Internal Revenue Code by, among other things, reducing the statutory U.S. federal corporate income tax rate from 35% to 21% for taxable years beginning after December 31, 2017; limiting and/or eliminating many business deductions; migrating the U.S. to a territorial tax system with a one-time transition tax on a mandatory deemed repatriation of previously deferred foreign earnings of certain foreign subsidiaries; subject to certain limitations, generally eliminating U.S. corporate income tax on dividends from foreign subsidiaries; and providing for new taxes on certain foreign earnings. Taxpayers may elect to pay the one-time transition tax over eight years, or in a single lump-sum payment. See Note 8 – Income Tax.

 

To the extent that portions of its U.S. taxable income, such as Subpart F income or global intangible low-taxed income (“GILTI”), are determined to be from sources outside of the U.S., subject to certain limitations, the Company may be able to claim foreign tax credits to offset its U.S. income tax liabilities. Any remaining liabilities are accrued in the Company’s consolidated statements of comprehensive income and estimated tax payments are made when required by U.S. law.

Uncertain Tax Positions

Uncertain Tax Positions

 

The impact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes are classified as a component of the provisions for income taxes. The Company did not recognize any income tax due to uncertain tax positions or incur any interest and penalties related to potential underpaid income tax expense as of December 31, 2018 and 2017.

Comprehensive loss

Comprehensive loss

 

Comprehensive loss includes net loss and cumulative foreign currency translation adjustments and is reported in the Combined Statement of Comprehensive Loss.

Loss per share

Loss per share

 

The loss per share is computed using the weighted average number of shares outstanding during the fiscal years. For the years ended December 31, 2018 and 2017, there was no dilutive effect due to net loss.

Related party transactions

Related party transactions

 

The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.

 

Pursuant to Section 850-10-20 the related parties include (a) affiliates of the registrant; (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; (d) principal owners of the Company; (e) management of the Company; (f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The financial statements include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s) involved; (b) description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

Recently issued accounting pronouncements

Recently issued accounting pronouncements

 

In February 2016, the FASB issued ASU No. 2016-02, Leases, to improve financial reporting about leasing transactions. This ASU will require organizations that lease assets (“lessees”) to recognize a lease liability and a right-of-use asset on its balance sheet for all leases with terms of more than twelve months. A lease liability is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and a right-of-use asset represents the lessee’s right to use, or control use of, a specified asset for the lease term. The amendments in this ASU simplify the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. This ASU leaves the accounting for the organizations that own the assets leased to the lessee (“lessor”) largely unchanged except for targeted improvements to align it with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. ASU No. 2016-02 is effective for reporting periods beginning after December 15, 2018. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

 

In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments”. The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. ASU 2016-15 is effective for the Company beginning in the first quarter of fiscal 2019. Early adoption is permitted, provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. The Company is currently evaluating the impact of adopting this guidance.

 

On May 10, 2017, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) 2017-09 “Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting”, which provides guidance to clarify when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The guidance is effective prospectively for all companies for annual periods beginning on or after December 15, 2017. Early adoption is permitted. The adoption of this guidance had no impact on its consolidated financial statements.

 

In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which improves fair value disclosure requirements by removing disclosures that are not cost beneficial, clarifying disclosures’ specific requirements and adding relevant disclosure requirements. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted and an entity can choose to early adopt any removed or modified disclosures upon issuance of this ASU and delay adoption of the additional disclosures until their effective date. The Company is still evaluating the impact that the adoption of ASU 2018-13 will have on the consolidated financial statements and has not yet decided whether or not to early adopt the amendments.

 

Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the Securities and Exchange Commission (“SEC”) did not, or are not believed by management, to have a material impact on the Company’s present and future consolidated financial statements.

Reclassification

Reclassification: Certain reclassifications have been made to the prior period amounts to conform to the current period’s presentation.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
12 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
Schedule of property, plant and equipment estimated useful lives

Property, plant and equipment are carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives: 

 

  Office equipment 10 years  
  Computer equipment 5 years  
  Furniture and fixtures 10 years  
  Electrical & fitting 10 years  
  Motor vehicle 10 years  
  Software and website 5 years  
  Leasehold improvement 10 years  
OTHER RECEIVABLES, PREPAYMENTS AND OTHER CURRENTASSETS (Tables)
12 Months Ended
Dec. 31, 2018
Other Receivables And Other Assets  
Schedule of other receivables and other assets

Other receivables, prepayments and other current assets consist of the following:

 

      As of 
December 31,
2018
    As of 
December 31,
2017
 
               
Deposits (1)     $ 47,161     $ 11,157  
Prepayments (2)       8,555       1,679  
Others (3)       238       31,469  
      $ 55,954     $ 44,305  

 

(1)         Deposits represented payments for rental, utilities, construction funds to government department and deposit payment to product suppliers.

(2)         Prepayments mainly consists of prepayment for insurance and IT related fees.

(3)         Others mainly consists other miscellaneous payments

LONG-TERM INVESTMENT (Tables)
12 Months Ended
Dec. 31, 2018
Equity Method Investments and Joint Ventures [Abstract]  
Schedule of long-term investment

 

    As of 
December 31,
2018
    As of 
December 31,
2017
 
             
Investment in associated companies                
Vitaxel Corporation Thailand Co., Ltd (1)                
Cost   $ 27,539     $ 27,539  
Share of loss in investment in an associated company     (25,716 )     (25,716 )
Foreign currency translation adjustment     (1,823 )     (1,823 )
Total investment in associated companies         $  
                 
Other long-term investments                
Ho Wah Genting Group Ltd (2)                
Cost   $ 629,151     $  
Impairment on carrying amount     (612,056 )      
Foreign currency translation adjustment     17,095        
Total other long-term investments   $     $  
Total Long-Term Investments   $     $  

 

(1)         On April 20, 2016, the Company invested 958,000 Thai Baht or $27,539 to Vitaxel Corporation Thailand Co., Ltd., a company registered in Thailand, and holds 47.99% shares of it. The long-term investment is accounted using the equity method.

 

The Company entered into a Sale and Purchase Agreement dated July 2, 2018 to sell all the total and outstanding shares of Vitaxel Corporation Thailand Co. Ltd. for total proceeds of $10,000. The disposal has been completed as of the date of this report.

 

As of December 31, 2018, the Company has provided impairment on the amount due from Vitaxel Corporation Thailand Co., Ltd of $150,535.

 

(2)         During the year ended December 31, 2018, the Company acquired 7,663,246 shares of common stock of Ho Wah Genting Group Limited (“HWGG”), which is listed on the U.S. OTC (Pink) Market (stock code: HWGG), for consideration of MYR2,466,993 or US$629,151 from certain shareholders of HWGG. This resulted in ownership by the Company of approximately 1.53% of HWGG

PROPERTY, PLANT AND EQUIPMENT (Tables)
12 Months Ended
Dec. 31, 2018
Property, Plant and Equipment, Net [Abstract]  
Schedule of property, plant and equipment, net

Property and equipment, net consist of the following:

 

    As of 
December 31,
2018
    As of 
December 31,
2017
 
             
Office equipment   $ 36,163     $ 36,471  
Computer equipment     72,123       102,862  
Furniture and fittings     7,557       7,978  
Electrical & fitting           375  
Motor vehicle           16,983  
Software and website     12,757       11,580  
Renovations     103,038       108,860  
      231,638       285,109  
Less: Accumulated depreciation     (89,908 )     (54,051 )
 Balance at end of year   $ 141,730     $ 231,058  
ACCRUALS AND OTHER PAYABLES (Tables)
12 Months Ended
Dec. 31, 2018
Payables and Accruals [Abstract]  
Schedule of accruals and other payables

Accruals and other payables consist of the following:

 

    As of 
December 31,
2018
    As of 
December 31,
2017
 
             
Provisions and accruals   $ 67,989     $ 148,326  
Others (1)     313,525       344,487  
 Balance at end of year   $ 381,514     $ 492,813  

 

(1)         Other payables mainly consist of members allocated redemption points and commission payable.

INCOME TAX (Tables)
12 Months Ended
Dec. 31, 2018
Disclosure Text Block [Abstract]  
Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of income taxes at statutory rates is as follows:

 

    For the year ended  
    December 31,
2018
    December 31,
2017
 
Loss before income tax   $ (2,334,926 )   $ (4,137,336 )
Statutory rate     21 %     34 %
Expected income tax recovery   $ (490,000 )   $ (1,407,000 )
Permanent difference     179,000       1,169,000  
Effect of change in tax rate     45,000        
Change in valuation allowance     266,000       238,000  
Income tax recovery   $     $  
Schedule of Deferred Tax Assets

Deferred tax assets are as follows:  

 

    For the year ended  
    December 31,
2018
    December 31,
2017
 
Non-capital loss carry-forwards   $ 761,000     $ 522,000  
Property and equipment           (27,000 )
      761,000       495,000  
Unrecognized deferred tax assets     (761,000 )     (495,000 )
Current tax expenses   $     $  
RELATED PARTY TRANSACTIONS (Tables)
12 Months Ended
Dec. 31, 2018
Related Party Transactions [Abstract]  
Schedule of related party transactions
    As of 
December 31,
2018
    As of 
December 31,
2017
 
Amount due from related parties                
Ho Wah Genting Berhad (1)   $ 4,928     $  
Ho Wah Genting Group Sdn Berhad (2)           18,149  
Beedo Sdn Bhd (3)           14,837  
Balance at end of year   $ 4,928     $ 32,986  

 

             
Amount of due from an associated company            
Vitaxel Corporation (Thailand) Limited (4)   $     $ 103,024  
Balance at end of year           103,024  
Total Amount due from related parties   $ 4,928     $ 136,010  

 

             
Amount of due to related parties            
Dato’ Lim Hui Boon (5)   $     $ 40,491  
Ho Wah Genting Holiday Sdn Bhd (6)     170       1,703  
Genting Highlands Taxi Services Sdn Bhd (7)           11,820  
VSpark Malaysia Sdn Bhd (8)           4,967  
Grande Legacy Inc. (9)     4,862,193       2,311,022  
Balance at end of year     4,862,363       2,370,003  
Total Amount due to related parties   $ 4,862,363     $ 2,370,003  

 

The related parties balances are unsecured, interest-free and repayable on demand.

 

  (1) The President of the Company, Dato’ Lim Hui Boon, is also the Group President of Ho Wah Genting Berhad (“HWGB”), a company listed in Bursa Malaysia Main Market.

 

The Company recognized rent expenses of $20,840 (2017 - $19,261) to HWGB during the years ended December 31, 2018 and 2017.

 

The Company has a lease commitment under an operating lease for its corporate office facility with HWGB. The lease expires by December 31, 2019 and the remaining commitment as at December 31, 2018 is $20,840.

 

  (2) The President of the Company, Dato’ Lim Hui Boon, is also the Group President of Ho Wah Genting Group Sdn Berhad (“HWGGSB”), a subsidiary of HWGG.

 

  (3) The President of the Company, Dato’ Lim Hui Boon, is a major shareholder of Beedo Sdn Bhd, holding 51% of share interest.

 

The Company recognized website maintenance expenses of $nil (2017 - $32,102) to Beedo Sdn Bhd during the years ended December 31, 2018 and 2017.

 

  (4) The Company recognized product sales of $nil (2017 - $455,361) to an associated company, Vitaxel Corp. (Thailand) Limited during the year ended December 31, 2018 and 2017.

 

  (5) The amount due to the President of the Company, Dato’ Lim Hui Boon, as at December 31, 2017 were advances made to the Company.

 

  (6) A former director of the Company, Lim Chun Hoo, is also a director of Ho Wah Genting Holiday Sdn Bhd. On March 31, 2017, Lim Chun Hoo has resigned from the Company.

 

  (7) A director of the Company, Lim Wee Kiat, is also a director of Genting Highlands Taxi Services Sdn Bhd and of Vitaxel Sdn Bhd.

 

  (8) A director of a subsidiary (Vitaxel Online Mall Sdn Bhd), Liew Jenn Lim, is also a director of VSpark Malaysia Sdn Bhd.

 

The Company has engaged with VSpark Malaysia Sdn Bhd for marketing purposes. The Company also recognize product sales of $nil and $300 to VSpark Malaysia Sdn Bhd during the years ended December 31, 2018 and December 31, 2017 respectively.

 

  (9) A director of the Company, Leong Yee Ming, is also a director of Grande Legacy Inc.

 

On January 5, 2017, the Company executed a license agreement with Grande Legacy Inc (“GL”). The agreement grants GL exclusive use of Vitaxel Marks to operate a Vitaxel business in countries other than Malaysia, Singapore and Thailand. However, GL is still in the process of obtaining online payment gateway for its credit card sales, GL is currently engaging Vitaxel SB to collect credit card sales proceeds on behalf.

 

On July 1, 2018, the Company signed an amendment to licensing agreement with GL, providing the revised terms of royalty payment. GL shall pay the Company royalty equal to 55% of net profits on a quarterly basis, commencing July 1, 2018. During the year ended December 31, 2018, the Company recognized $nil royalty income due GL incurring losses for the six months ended December 31, 2018.

 

On July 1, 2018, Vitaxel SB has entered into a management and administrative services agreement with GL. The agreement is to provide certain management and administrative support services for the operation of GL. For these services, Vitaxel SB shall charge a monthly management fee of $40,000 to GL. The Company recognized management fee income of $240,000 charged to GL for the year ended December 31, 2018.

 

  (10) Total payment made in the form of compensation, which includes salary, bonus, stock awards and all other compensation have been made to the following:

 

    As of 
December 31,
2018
    As of 
December 31,
2017
 
             
Dato’ Lim Hui Boon   $ 230,000     $ 1,146,531  
Lim Wee Kiat     65,158       1,171,732  
Leong Yee Ming     50,612       1,156,767  
Balance at end of year   $ 345,770     $ 3,475,030  
COMMITMENTS AND CONTINGENCIES (Tables)
12 Months Ended
Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]  
Schedule of future minimum lease payments under the non-cancellable operating lease

The total future minimum lease payments under the non-cancellable operating lease with respect to the office and the dormitory, as well as hardware trading platform as of December 31, 2018 are payable as follows:

 

2019       59,047  
Total     $ 59,047  
ORGANIZATION AND BUSINESS (Details Narrative)
12 Months Ended
Dec. 31, 2018
Vitaxel SDN BHD [Member]  
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]  
Date of incorporation Aug. 10, 2012
State of incorporation Malaysia
Vitaxel Online Mall SDN BHD [Member]  
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]  
Date of incorporation Sep. 22, 2015
State of incorporation Malaysia
Vitaxel Singapore PTE. Ltd [Member]  
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]  
Date of incorporation Feb. 16, 2016
State of incorporation Singapore
Disposition date Aug. 21, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)
12 Months Ended
Dec. 31, 2018
Office Equipment [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful lives P10Y
Computer Equipment [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful lives P5Y
Furniture and Fixtures [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful lives P10Y
Electrical and Fitting [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful lives P10Y
Motor Vehicle [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful lives P10Y
Software and Website [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful lives P5Y
Leasehold Improvements [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful lives P10Y
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Accounting Policies [Abstract]    
Inventories written down $ 829
Dilutive shares 0 0
Impairment on amount due from related parties $ 279,810
Impairment on amount due from associate company 150,790
Renewal fees $ 30  
Statutory U.S. federal corporate income tax rate 21.00% 35.00%
Interest and penalties $ 0 $ 0
GOING CONCERN (Details Narrative) - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Net Loss $ (2,334,926) $ (4,137,336)
Working capital deficit (4,294,463)  
Accumulated deficit $ (9,111,400) $ (6,776,474)
OTHER RECEIVABLES, PREPAYMENTS AND OTHER CURRENT ASSETS (Details) - USD ($)
Dec. 31, 2018
Dec. 31, 2017
Other Receivables Prepayments And Other Current Assets    
Deposits [1] $ 47,161 $ 11,157
Prepayments [2] 8,555 1,679
Others [3] 238 31,469
Total other receivables, prepayments and other current assets $ 55,954 $ 44,305
[1] Deposits represented payments for rental, utilities, construction funds to government department and deposit payment to product suppliers.
[2] Prepayments mainly consists of prepayment for insurance and IT related fees.
[3] Others mainly consists other miscellaneous payments
LONG-TERM INVESTMENT (Details) - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Apr. 20, 2016
Impairment on carrying amount $ 612,056  
Vitaxel Corp Thailand, Ltd [Member] [Default Label]      
Long-term investment - cost 27,539 [1] 27,539 [1] $ 27,539
Share of loss in investment in an associated company (25,716) (25,716)  
Foreign currency translation adjustment (1,823) (1,823)  
Total investment in associated companies  
Ho Wah Genting Group Ltd [Member]      
Long-term investment - cost [2] 629,151  
Impairment on carrying amount (612,056)  
Foreign currency translation adjustment 17,095  
Total other long-term investments  
Long-term investment  
[1] On April 20, 2016, the Company invested 958,000 Thai Baht or $27,539 to Vitaxel Corporation Thailand Co., Ltd., a company registered in Thailand, and holds 47.99% shares of it. The long-term investment is accounted using the equity method.
[2] During the year ended December 31, 2018, the Company acquired 7,663,246 shares of common stock of Ho Wah Genting Group Limited ('HWGG'), which is listed on the U.S. OTC (Pink) Market (stock code: HWGG), for consideration of MYR2,466,993 or US$629,151 from certain shareholders of HWGG. This resulted in ownership by the Company of approximately 1.53% of HWGG
LONG-TERM INVESTMENT (Details Narrative) - USD ($)
12 Months Ended
Jul. 02, 2018
Dec. 31, 2018
Dec. 31, 2017
Apr. 20, 2016
Impairment   $ 612,056  
Vitaxel Corp Thailand, Ltd [Member]        
Long-term investment -cost   27,539 [1] 27,539 [1] $ 27,539
Ownership percentage       47.99%
Proceeds from sale of shares $ 10,000      
Impairment   150,535    
Vitaxel Corp Thailand, Ltd [Member] | Thailand, Baht [Member]        
Long-term investment -cost       $ 958,000
Ho Wah Genting Group Ltd [Member]        
Long-term investment -cost [2]   $ 629,151  
Ownership percentage   1.53%    
Impairment   $ 612,056    
Stock Issued During Period, Shares, Acquisitions   7,663,246    
Stock Issued During Period, Value, Acquisitions   $ 597,335    
[1] On April 20, 2016, the Company invested 958,000 Thai Baht or $27,539 to Vitaxel Corporation Thailand Co., Ltd., a company registered in Thailand, and holds 47.99% shares of it. The long-term investment is accounted using the equity method.
[2] During the year ended December 31, 2018, the Company acquired 7,663,246 shares of common stock of Ho Wah Genting Group Limited ('HWGG'), which is listed on the U.S. OTC (Pink) Market (stock code: HWGG), for consideration of MYR2,466,993 or US$629,151 from certain shareholders of HWGG. This resulted in ownership by the Company of approximately 1.53% of HWGG
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($)
Dec. 31, 2018
Dec. 31, 2017
Property, Plant and Equipment [Line Items]    
Balance at beginning of period/year $ 231,638 $ 285,109
Less: Accumulated depreciation (89,908) (54,051)
Balance at end of period/year 141,730 231,058
Office Equipment [Member]    
Property, Plant and Equipment [Line Items]    
Balance at beginning of period/year 36,163 36,471
Computer Equipment [Member]    
Property, Plant and Equipment [Line Items]    
Balance at beginning of period/year 72,123 102,862
Furniture and Fixtures [Member]    
Property, Plant and Equipment [Line Items]    
Balance at beginning of period/year 7,557 7,978
Electrical and Fitting [Member]    
Property, Plant and Equipment [Line Items]    
Balance at beginning of period/year 375
Motor Vehicle [Member]    
Property, Plant and Equipment [Line Items]    
Balance at beginning of period/year 16,983
Software and Website [Member]    
Property, Plant and Equipment [Line Items]    
Balance at beginning of period/year 12,757 11,580
Renovations [Member]    
Property, Plant and Equipment [Line Items]    
Balance at beginning of period/year $ 103,038 $ 108,860
PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Property, Plant and Equipment, Net [Abstract]    
Depreciation expenses $ 51,594 $ 28,234
ACCRUALS AND OTHER PAYABLES (Details) - USD ($)
Dec. 31, 2018
Dec. 31, 2017
Payables and Accruals [Abstract]    
Provisions and accruals $ 67,989 $ 148,326
Others [1] 313,525 344,487
Balance at end of year $ 381,514 $ 492,813
[1] Other payables mainly consist of members allocated redemption points and commission payable.
INCOME TAX (Details) - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Disclosure Text Block [Abstract]    
Profit (loss) before income tax $ (2,334,926) $ (4,137,336)
Statutory rate 21.00% 34.00%
Expected income tax recovery $ (490,000) $ (1,407,000)
Permanent difference 179,000 1,169,000
Effect of change in tax rate 45,000
Change in valuation allowance 266,000 238,000
Income tax recovery
INCOME TAX (Details 1) - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Disclosure Text Block [Abstract]    
Non-capital loss carry-forwards $ 761,000 $ 522,000
Property and equipment (27,000)
Deferred Tax Assets, Gross 761,000 495,000
Unrecognized deferred tax assets (761,000) (495,000)
Current tax expenses
INCOME TAX (Details Narrative) - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Malaysia [Member]    
Loss carryforwards $ 2,382,090  
Income tax rate (in percent) 24.00% 24.00%
United States of America [Member]    
Loss carryforwards $ 899,994  
Income tax rate (in percent) 21.00% 34.00%
RELATED PARTIES TRANSCTIONS (Details) - USD ($)
Dec. 31, 2018
Dec. 31, 2017
Amount of due from related parties $ 4,928 $ 32,986
Ho Wah Genting Berhad [Member]    
Amount of due from related parties 4,928
Ho Wah Genting Group Sdn Berhad [Member]    
Amount of due from related parties 18,149
Beedo SDN BHD [Member]    
Amount of due from related parties $ 14,837
RELATED PARTIES TRANSCTIONS (Details 1) - USD ($)
Dec. 31, 2018
Dec. 31, 2017
Amounts due to an associated company $ 103,024
Total Amount due from related parties 4,928 136,010
Vitaxel Corp Thailand, Ltd [Member] [Default Label]    
Amounts due to an associated company $ 103,024
RELATED PARTIES TRANSCTIONS (Details 2) - USD ($)
Dec. 31, 2018
Dec. 31, 2017
Due to a related party $ 4,862,363 $ 2,370,003
Dato Lim Hui Boon [Member]    
Due to a related party 40,491
Ho Wah Genting Holiday Sdn. Bhd [Member]    
Due to a related party 170 1,703
Genting Highlands Taxi Services SDN BHD [Member]    
Due to a related party 11,820
V Spark Malaysia Sdn Bhd [Member]    
Due to a related party 4,967
Grande LegacyInc [Member]    
Due to a related party $ 4,862,193 $ 2,311,022
RELATED PARTIES TRANSCTIONS (Details 3) - USD ($)
Dec. 31, 2018
Dec. 31, 2017
Amount due from director $ 345,770 $ 3,475,030
Dato Lim Hui Boon [Member]    
Amount due from director 230,000 1,146,531
LIM WEE KIAT [Member]    
Amount due from director 65,158 1,171,732
LEONG YEE MING [Member]    
Amount due from director $ 50,612 $ 1,156,767
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)
12 Months Ended
Jul. 02, 2018
Dec. 31, 2018
Dec. 31, 2017
Rent expenses   $ 95,364 $ 77,010
Impairment on amount due from associate company   $ 150,790
Description of debt   Interest-free and repayable on demand  
Beedo SDN BHD [Member]      
Impairment on amount due from associate company   $ 0 154,225
Website maintenance expense   0 32,102
Ho Wah Genting Berhad [Member]      
Rent expenses   20,840 19,261
Operating lease commitment   20,840  
Grande Legacy Inc [Member]      
Royalty income   0  
Management fee income   240,000  
Percentage of royality 55.00%    
Vitaxel Corp Thailand, Ltd [Member] [Default Label]      
Recognize product sales   0 455,361
V Spark Malaysia Sdn Bhd [Member]      
Recognize product sales   $ 0 $ 300
COMMITMENTS AND CONTINGENCIES (Details)
Dec. 31, 2018
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Year ending December 31, 2019 $ 59,047
Total $ 59,047
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]    
Rental expense $ 95,364 $ 77,010
SHAREHOLDERS' EQUITY (Details Narrative) - USD ($)
12 Months Ended
Jun. 12, 2017
Mar. 30, 2017
Mar. 25, 2017
Dec. 31, 2018
Dec. 31, 2017
May 30, 2017
May 29, 2017
Jan. 18, 2016
Preferred stock, authorized       1,000,000 1,000,000      
Preferred stock, outstanding       0 0      
Common stock, authorized       70,000,000 70,000,000      
Common stock, outstanding       54,087,903 54,087,903      
Common stock, par value       $ 0.0001 $ 0.0001      
Reverse Stock Split [Member]                
Preferred stock, authorized 100,000,000              
Common stock, authorized 7,000,000,000              
Common stock, outstanding 5,408,754,000              
Description of stock split     Board of Directors of the Company authorized and approved an amendment (the “Amendment”) to the Company’s Amended and Restated Articles of Incorporation, which authorized a one hundred-to-one reverse stock split (the “Reverse Split”) of Vitaxel’s outstanding common stock, par value $0.000001 per share, with a record date of June 12, 2017 (the “Record Date”).          
Common stock, par value $ 0.000001   $ 0.000001     $ 0.0001 $ 0.000001  
Description for conversion of outstanding shares 100 outstanding shares of the Company’s common stock automatically became one share of common stock.              
Forward Stock Split [Member]                
Description of stock split   Board of Directors of the Company authorized and approved a related increase in the par value of Vitaxel common stock from $0.000001 to $0.0001.            
2016 Equity Incentive Plan [Member]                
Number of shares reserved for issuance       40,000,000       10,000,000
Stock based compensation       $ 3,409,604        
Non-Restricted Stock [Member] | 2016 Equity Incentive Plan [Member]                
Number of shares issued       3,100,290        
PROPOSED TRANSACTIONS (Details Narrative) - Grande Legacy Inc [Member] - shares
Jan. 03, 2018
Dec. 15, 2017
Lim Hui Sing and Leong Yee Ming [Member] | Amendment Agreement [Member]    
Number of shares issued 75,000,000  
Vitaxel Corp Thailand, Ltd [Member] | Share Sale Agreement [Member]    
Number of shares issued   75,000,000