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v3.20.2
Document and Entity Information - shares
3 Months Ended
Mar. 31, 2020
Jun. 18, 2020
Document And Entity Information    
Entity Registrant Name Vitaxel Group Ltd  
Entity Central Index Key 0001623590  
Document Type 10-Q  
Document Period End Date Mar. 31, 2020  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Entity's Reporting Status Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Emerging Growth Company false  
Entity Small Business true  
Entity Shell Company false  
Entity Interactive Data Current Yes  
Entity File Number 333-201365  
Entity Incorporation, State or Country Code NV  
Entity Common Stock, Shares Outstanding   54,087,903
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2020  
v3.20.2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)
Mar. 31, 2020
Dec. 31, 2019
Current assets    
Cash and cash equivalents $ 49,368 $ 63,436
Amount due from related parties 4,979 5,132
Inventories 18,755 17,450
Other receivables, prepayments and other current assets 21,553 30,559
Total current assets 94,655 116,577
Non-current assets    
Property, plant and equipment, net 54,061 62,221
Total non-current assets 54,061 62,221
TOTAL ASSETS 148,716 178,798
CURRENT LIABILITIES    
Amounts due to related parties 4,266,622 4,372,856
Commission payables 126,898 133,743
Accounts payable 987 154
Accrued expense and other payables 314,769 340,112
Total current liabilities 4,709,276 4,846,865
TOTAL LIABILITIES 4,709,276 4,846,865
Commitments and Contingencies (Note 7(1))
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 (9,710,525) (9,587,918)
Accumulated other comprehensive income 394,758 164,644
Total stockholders' equity (4,560,560) (4,668,067)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 148,716 $ 178,798
v3.20.2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares
Mar. 31, 2020
Dec. 31, 2019
Statement of Financial Position [Abstract]    
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
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
v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($)
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Income Statement [Abstract]    
REVENUE $ 12,895 $ 14,515
COST OF REVENUE (10,658) (9,457)
GROSS PROFIT 2,237 5,058
OPERATING EXPENSES    
Selling expense (434) (34)
General and administrative expenses (238,387) (286,844)
Total Operating Expenses (238,821) (286,878)
LOSS FROM OPERATIONS (236,584) (281,820)
OTHER INCOME/(EXPENSE), NET    
Other Income 120,298 126,495
Other Expense (6,321) (1,502)
Total other income, net 113,977 124,993
Net loss (122,607) (156,827)
OTHER COMPREHENSIVE LOSS    
Foreign currency translation adjustment 230,114 (47,828)
TOTAL COMPREHENSIVE INCOME/(LOSS) $ 107,507 $ (204,655)
Weighted average number of common shares outstanding - basic and diluted 54,087,903 54,087,903
Net loss per share - Basic and diluted $ (0.00) $ (0.00)
v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (122,607) $ (156,827)
Items not involving cash:    
Depreciation - property and equipment 6,819 8,766
Property, plant and equipment written off 2,224
Changes in operating assets and liabilities    
Accounts receivable (14,220)
Other receivables, prepayments and other current assets 9,006 16,330
Inventories (1,305) 1,294
Accounts Payable 833 (9,323)
Commission payables (6,845) (549)
Accrued expense and other payables (25,343) (22,226)
Net cash used in from operating activities (139,442) (174,531)
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchase of property and equipment (1,729) (11,230)
Net cash used in investing activities (1,729) (11,230)
CASH FLOWS FROM FINANCING ACTIVITIES    
(Repayments to) / Proceeds from related parties 148,310 (737,114)
Net cash provided by (used in) financing activities 148,310 (737,114)
EFFECT OF EXCHANGE RATES ON CASH (21,207) 9,234
NET CHANGE IN CASH AND CASH EQUIVALENTS (14,068) (913,641)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 63,436 1,004,397
CASH AND CASH EQUIVALENTS, END OF PERIOD 49,368 90,756
SUPPLEMENTAL OF CASH FLOW INFORMATION    
Cash paid for interest expenses
Cash paid for income tax
v3.20.2
ORGANIZATION AND BUSINESS
3 Months Ended
Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
ORGANIZATION AND BUSINESS
1. ORGANIZATION AND BUSINESS

 

Vitaxel Group Limited (the “Company” or “Vitaxel”), 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. Vitaxel SB 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. Vionmall is primarily engaged in developing online shopping platforms geared to Vitaxel and its members and the third-party suppliers of products and services.

v3.20.2
UNAUDITED INTERIM FINANCIAL STATEMENTS
3 Months Ended
Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
UNAUDITED INTERIM FINANCIAL STATEMENTS
2. UNAUDITED INTERIM FINANCIAL STATEMENTS

 

The accompanying unaudited condensed 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”) for interim financial information under Article 8 of Regulation S-X. They do not include all information and foot notes required by U.S. GAAP for complete financial statements. Except as disclosed herein, there have been no material changes in the information disclosed in the notes to the consolidated financial statement for the year ended December 31, 2019, included in the Company’s Form 10-K filed with the Security and Exchange Commission (“SEC”). The interim unaudited consolidated financial statements should be read in conjunction with those audited consolidated financial statements included in Form 10-K.

 

In the opinion of management, the Company has made all adjustments necessary to present a fair statement of the financial position as of March 31, 2020, results of operations for the three months ended March 31, 2020 and 2019, and cash flows for the three months ended March 31, 2020 and 2019. All significant intercompany transactions and balances are eliminated on consolidation. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results of operations for the entire fiscal year.

 

Recently issued accounting pronouncements

 

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 adoption of ASU 2018-13 did not to have a material impact on the consolidated financial statements.

 

In December 2019, the FASB issued ASU2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, with the intent to reduce the complexity in accounting for income taxes. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, and early adoption is permitted. The accounting update removes certain exceptions to the general principles in ASC 740 as well as provides simplification by clarifying and amending existing guidance. The Company is currently assessing the impact of the new standard on the consolidated financial statements.

 

Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the 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.

v3.20.2
GOING CONCERN
3 Months Ended
Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
GOING CONCERN
 3. GOING CONCERN

 

These unaudited 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 period ended March 31, 2020, the Company reported a net loss of $122,607 and had negative working capital of $4,614,621. The Company had an accumulated deficit of $9,710,525 as of March 31, 2020 due to the fact that the Company incurred losses during the years prior to March 31, 2020.

 

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.

 

In March 2020 the World Health Organization declared coronavirus COVID-19 a global pandemic. This contagious disease outbreak, which has continued to spread, and any related adverse public health developments, has adversely affected workforces, economies, and financial markets globally, potentially leading to an economic downturn. The impact on the Company is not currently determinable but management continues to monitor the situation.

 

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.

v3.20.2
OTHER RECEIVABLES, PREPAYMENTS AND OTHER ASSETS
3 Months Ended
Mar. 31, 2020
Other Receivables And Other Assets  
OTHER RECEIVABLES, PREPAYMENTS AND OTHER ASSETS
4. OTHER RECEIVABLES, PREPAYMENTS AND OTHER CURRENT ASSETS

 

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

 

      March 31,
2020
    December 31,
2019
 
Deposits (1)     $ 15,936     $ 20,824  
Prepayments (2)       5,617       9,203  
Others (3)             532  
      $ 21,553     $ 30,559  

 

(1)         Deposits represented payments for rental and utilities. 

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

(3)         Others mainly consists other miscellaneous payments

v3.20.2
PROPERTY AND EQUIPMENT, NET
3 Months Ended
Mar. 31, 2020
Property, Plant and Equipment, Net [Abstract]  
PROPERTY AND EQUIPMENT, NET
5. PROPERTY AND EQUIPMENT,  NET

 

Property and equipment, net consist of the following:

 

    March 31,
2020
    December 31,
2019
 
             
Office equipment   $ 27,027     $ 28,100  
Computer equipment     97,677       101,614  
Furniture and fittings     7,706       8,123  
Software and website     15,738       16,589  
      148,148       154,426  
Less: Accumulated depreciation     (94,087 )     (92,205 )
Balance at end of period/year   $ 54,061     $ 62,221  

 

Depreciation expenses charged to the statements of operations and comprehensive loss for the periods ended March 31, 2020 and 2019 were $6,819 and $8,766 respectively.

v3.20.2
ACCRUED EXPENSE AND OTHER PAYABLES
3 Months Ended
Mar. 31, 2020
Payables and Accruals [Abstract]  
ACCRUED EXPENSE AND OTHER PAYABLES
6. ACCRUED EXPENSE AND OTHER PAYABLES

 

Accrued expense and other payables consist of the following:

 

    March 31,
2020
    December 31,
2019
 
             
Provisions and accruals   $ 27,277     $ 38,224  
Others (1)     287,492       301,888  
Balance at end of period/year   $ 314,769     $ 340,112  

 

(1) Other payables mainly consist of members allocated redemption points for commissions.

 

v3.20.2
RELATED PARTIES TRANSACTIONS
3 Months Ended
Mar. 31, 2020
Related Party Transactions [Abstract]  
RELATED PARTIES TRANSACTIONS
7. RELATED PARTY BALANCES AND TRANSACTIONS

 

    March 31,
2020
    December 31,
2019
 
Amount due from related parties                
Ho Wah Genting Berhad (1)   $ 4,979     $ 5,132  
Total Amount due from related parties   $ 4,979     $ 5,132  
                 
Amount of due to related parties                
Grande Legacy Inc. (2)     4,266,622       4,372,855  
Total Amount due to related parties   $ 4,266,622     $ 4,372,855  

 

The related party 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 $nil and $5,135 to HWGB for the three months ended March 31, 2020 and 2019 respectively.

 

During the year ended December 31, 2019, the Company has mutually agreed to terminate the lease with HWGB.

 

  (2) A director of the Company, Leong Yee Ming, is also a director of Grande Legacy Inc. (“GL”).

 

The Company recognized management fee income of $120,000 and $120,000 charged to GL for the three months ended March 31, 2020 and 2019 respectively.

 

The Company also recognized royalty income of $298 and $8,269 charged to GL for the three months ended March 31, 2020 and 2019 respectively.

 

The Company billed GL for product sales of $10,833 and $nil for the three months ended March 31, 2020 and 2019 respectively.

 

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

 

    March 31,
2020
    March 31,
2019
 
         
Dato’ Lim Hui Boon   $     $ 40,000  
Lim Wee Kiat     12,914       12,470  
Leong Yee Ming     12,197       13,203  
    $ 25,111     $ 65,673  
v3.20.2
OTHER RECEIVABLES, PREPAYMENTS AND OTHER ASSETS (Tables)
3 Months Ended
Mar. 31, 2020
Other Receivables And Other Assets  
Schedule of Other receivables, prepayments and other assets

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

 

      March 31,
2020
    December 31,
2019
 
Deposits (1)     $ 15,936     $ 20,824  
Prepayments (2)       5,617       9,203  
Others (3)             532  
      $ 21,553     $ 30,559  

 

(1)         Deposits represented payments for rental and utilities. 

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

(3)         Others mainly consists other miscellaneous payments

v3.20.2
PROPERTY AND EQUIPMENT, NET (Tables)
3 Months Ended
Mar. 31, 2020
Property, Plant and Equipment, Net [Abstract]  
Schedule of property, plant and equipment, net

Property and equipment, net consist of the following:

 

    March 31,
2020
    December 31,
2019
 
             
Office equipment   $ 27,027     $ 28,100  
Computer equipment     97,677       101,614  
Furniture and fittings     7,706       8,123  
Software and website     15,738       16,589  
      148,148       154,426  
Less: Accumulated depreciation     (94,087 )     (92,205 )
Balance at end of period/year   $ 54,061     $ 62,221  
v3.20.2
ACCRUED EXPENSE AND OTHER PAYABLES (Tables)
3 Months Ended
Mar. 31, 2020
Payables and Accruals [Abstract]  
Schedule of Accrued expense and other payables

Accrued expense and other payables consist of the following:

 

    March 31,
2020
    December 31,
2019
 
             
Provisions and accruals   $ 27,277     $ 38,224  
Others (1)     287,492       301,888  
Balance at end of period/year   $ 314,769     $ 340,112  

 

(1) Other payables mainly consist of members allocated redemption points for commissions.
v3.20.2
RELATED PARTIES TRANSCTIONS (Tables)
3 Months Ended
Mar. 31, 2020
Related Party Transactions [Abstract]  
Schedule of related party transactions
    March 31,
2020
    December 31,
2019
 
Amount due from related parties                
Ho Wah Genting Berhad (1)   $ 4,979     $ 5,132  
Total Amount due from related parties   $ 4,979     $ 5,132  
                 
Amount of due to related parties                
Grande Legacy Inc. (2)     4,266,622       4,372,855  
Total Amount due to related parties   $ 4,266,622     $ 4,372,855  

 

The related party 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 $nil and $5,135 to HWGB for the three months ended March 31, 2020 and 2019 respectively.

 

During the year ended December 31, 2019, the Company has mutually agreed to terminate the lease with HWGB.

 

  (2) A director of the Company, Leong Yee Ming, is also a director of Grande Legacy Inc. (“GL”).

 

The Company recognized management fee income of $120,000 and $120,000 charged to GL for the three months ended March 31, 2020 and 2019 respectively.

 

The Company also recognized royalty income of $298 and $8,269 charged to GL for the three months ended March 31, 2020 and 2019 respectively.

 

The Company billed GL for product sales of $10,833 and $nil for the three months ended March 31, 2020 and 2019 respectively.

 

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

 

    March 31,
2020
    March 31,
2019
 
         
Dato’ Lim Hui Boon   $     $ 40,000  
Lim Wee Kiat     12,914       12,470  
Leong Yee Ming     12,197       13,203  
    $ 25,111     $ 65,673  

v3.20.2
ORGANIZATION AND BUSINESS (Details Narrative)
3 Months Ended
Mar. 31, 2020
Vitaxel SDN BHD [Member]  
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]  
Date of incorporation Aug. 10, 2012
State of incorporation Malaysia
Vitaxel Online Mall SDN BHD [Member]  
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]  
Date of incorporation Sep. 22, 2015
State of incorporation Malaysia
v3.20.2
GOING CONCERN (Details Narrative) - USD ($)
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Net loss $ (122,607) $ (156,827)  
Negative working capital (4,614,621)    
Accumulated deficit $ (9,710,525)   $ (9,587,918)
v3.20.2
OTHER RECEIVABLES, PREPAYMENTS AND OTHER ASSETS (Details) - USD ($)
Mar. 31, 2020
Dec. 31, 2019
Other Receivables And Other Assets    
Deposits [1] $ 15,936 $ 20,824
Prepayments [2] 5,617 9,203
Others [3] 532
Total other receivables and other assets $ 21,553 $ 30,559
[1] Deposits represented payments for rental and utilities.
[2] Prepayments mainly consists of prepayment for insurance and IT related fees.
[3] Others mainly consists other miscellaneous payments
v3.20.2
PROPERTY AND EQUIPMENT, NET (Details) - USD ($)
Mar. 31, 2020
Dec. 31, 2019
Property, Plant and Equipment [Line Items]    
Balance at beginning of period/year $ 148,148 $ 154,426
Less: Accumulated depreciation (94,087) (92,205)
Balance at end of period/year 54,061 62,221
Office Equipment [Member]    
Property, Plant and Equipment [Line Items]    
Balance at beginning of period/year 27,027 28,100
Computer Equipment [Member]    
Property, Plant and Equipment [Line Items]    
Balance at beginning of period/year 97,677 101,614
Furniture and fittings [Member]    
Property, Plant and Equipment [Line Items]    
Balance at beginning of period/year 7,706 8,123
Software and Website [Member]    
Property, Plant and Equipment [Line Items]    
Balance at beginning of period/year $ 15,738 $ 16,589
v3.20.2
PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($)
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Property, Plant and Equipment, Net [Abstract]    
Depreciation expenses $ 6,819 $ 8,766
v3.20.2
ACCRUED EXPENSE AND OTHER PAYABLES (Details) - USD ($)
Mar. 31, 2020
Dec. 31, 2019
Payables and Accruals [Abstract]    
Provisions $ 27,277 $ 38,224
Others [1] 287,492 301,888
Balance at end of period/year $ 314,769 $ 340,112
[1] Other payables mainly consist of members allocated redemption points for commissions.
v3.20.2
RELATED PARTIES TRANSCTIONS (Details) - USD ($)
Mar. 31, 2020
Dec. 31, 2019
Amount of due from related parties $ 4,979 $ 5,132
Ho Wah Genting Berhad [Member]    
Amount of due from related parties $ 4,979 $ 5,132
v3.20.2
RELATED PARTIES TRANSCTIONS (Details 1) - USD ($)
Mar. 31, 2020
Dec. 31, 2019
Amount due to related parties $ 4,266,622 $ 4,372,856
Grande Legacy Inc [Member]    
Amount due to related parties $ 4,266,622 $ 4,372,855
v3.20.2
RELATED PARTIES TRANSCTIONS (Details 2) - USD ($)
Mar. 31, 2020
Mar. 31, 2019
Amount due from director $ 25,111 $ 65,673
Dato Lim Hui Boon [Member]    
Amount due from director 40,000
Lim Wee Kiat [Member]    
Amount due from director 12,914 12,470
Leong Yee Ming [Member]    
Amount due from director $ 12,197 $ 13,203
v3.20.2
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Ho Wah Genting Berhad [Member]    
Rent expenses $ 0 $ 5,135
Grande Legacy Inc [Member]    
Royalty income 298 8,269
Management fee income 120,000 120,000
Product sales $ 10,833 $ 0