UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2020

 

or

 

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ______ to ______

 

Commission File Number: 000-51815

 

WEYLAND TECH INC.

(Exact name of registrant as specified in its charter)

 

Delaware   46-5057897
(State or other jurisdiction of
incorporation or organization)
  (I.R.S. Employer
Identification No.)

 

85 Broad Street, 16-079

New York, NY 10004

(Address of principal executive offices)

 

(501) 507 9229

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading symbol(s)   Name of each exchange on which registered
         

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

  Large accelerated filer ☐ Accelerated filer ☐
  Non-accelerated filer ☒ Smaller reporting company ☒
    Emerging Growth Company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). ☐ Yes ☒ No

 

As of August 13, 2020 the issuer had 12,895,432 shares of common stock issued and outstanding.

 

 

 

 

 

 

WEYLAND TECH INC.

QUARTERLY REPORT ON FORM 10-Q

June 30, 2020

 

PART I – FINANCIAL INFORMATION   1
     
Item 1. Financial Statements   1
  Unaudited Condensed Consolidated Balance sheets as of June 30, 2020 and Audited Condensed Balance sheet as of December 31, 2019.   1
  Unaudited Condensed Consolidated Statements of Operations for the three months and six months ended June 30, 2020 and 2019.   2
  Unaudited Condensed Consolidated Statement of Stockholder’s Equity for the six months ended June 30, 2020 and Audited Statement of Stockholder’s Equity as of December 31, 2019   3
  Unaudited Condensed Consolidated Statements of cash flows for the six months ended June 30, 2020 and 2019.   4
  Notes to Unaudited Condensed Consolidated Financial Statements   5
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations   19
Item 3. Quantitative and Qualitative Disclosures About Market Risk   26
Item 4. Controls and Procedures   26
       
PART II – OTHER INFORMATION   27
     
Item 1. Legal Proceedings   27
Item 1A.  Risk Factors   27
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds   28
Item 3. Defaults Upon Senior Securities   28
Item 4. Mine Safety Disclosures   28
Item 5. Other Information   28
Item 6. Exhibits   29
       
SIGNATURES   30

 

i

 

 

PART 1 - FINANCIAL INFORMATION

 

ITEM 1. Financial Statements

 

WEYLAND TECH INC.

Consolidated Balance Sheets

 

    June 30     December 31  
    2020     2019  
    (Unaudited)     (Audited)  
ASSETS                
Non-current assets                
Intangible assets, net     7,985,632       611,598  
Property and equipment, net     201,843       -  
Goodwill     4,781,208       -  
Total non-current assets     12,968,683       611,598  
                 
Current assets                
Amount due from associate     4,323,700       2,825,700  
Account receivable     1,622,674       -  
Other amount recoverable     49,550       549,550  
Prepayment, deposit and other receivables     1,794,456       1,641,684  
Financial assets held for resale     -       2,730,363  
Cash and cash equivalents     3,859,783       2,972,649  
Total current assets     11,650,163       10,719,946  
Total assets   $ 24,618,846     $ 11,331,544  
                 
Liabilities and Stockholders’ Equity                
Current liabilities                
Accounts payable     1,057,629       -  
Accruals and other payables     824,966       298,453  
Deposits received for shares to be issued     1,482,485       -  
Amount due to director     77,500       77,500  
Total current liabilities     3,442,580       375,953  
                 
Non-current liabilities                
Long term loan     10,000       -  
Bank loan     -       500,000  
Notes payable     503,700       -  
Total non-current liabilities     513,700       500,000  
Total liabilities   $ 3,956,280     $ 875,953  
                 
Stockholders’ Equity                
Common stock, $0.0001 par value, 250,000,000 shares authorized, 12,195,973 and 8,561,704 shares issued and outstanding as of June 30, 2020 and December 31, 2019 respectively*     15,855       11,130  
Additional paid-in capital     58,466,864       58,058,118  
Capital reserves     14,282,143       -  
Accumulated deficit carried forward     (52,102,296 )     (47,613,657 )
Total stockholder’s equity     20,662,566       10,455,591  
Total liabilities and stockholders’ equity   $ 24,618,846     $ 11,331,544  

 

* The number of shares of common stock has been retroactively restated to reflect the 1 for 13 reverse stock-split on February 25, 2020

 

The accompanying notes are an integral part of these financial statements

 

1

 

 

WEYLAND TECH INC.

Consolidated Statements of Operations

 

   

For the three months ended

June 30,

    For the six months ended
June 30,
 
    2020     2019     2020     2019  
    (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  
                         
Service Revenue   $ 9,315,060     $ 7,141,932     $ 24,296,454     $ 15,633,624  
Cost of Service     8,095,406       5,874,249       20,431,668       12,858,676  
Gross Profit     1,219,654       1,267,683       3,864,786       2,774,948  
                                 
Other income/(expenses),net     (265,223 )     -       (261,415 )     -  
Gross Income     954,431       1,267,683       3,603,371       2,774,948  
                                 
Operating Expenses                                
General and administrative     1,180,246       1,280,869       4,382,288       1,921,791  
Research and development     900,844       1,242,833       2,658,195       2,110,548  
Sales and marketing     99,262       389,610       152,277       389,610  
Depreciation and amortization     449,625       25,483       899,249       50,967  
Total Operating Expenses     2,629,977       2,938,795       8,092,009       4,472,916  
                                 
(Loss) from Operations     (1,675,546 )     (1,671,112 )     (4,488,638 )     (1,697,968 )
                                 
Net (Loss) before income tax     (1,675,546 )     (1,671,112 )     (4,488,638 )     (1,697,968 )
Income tax (Corporate tax)     -       -       -       -  
Net (Loss)     (1,675,546 )     (1,671,112 )   $ (4,488,638 )   $ (1,697,968 )
                                 
Net (loss) profit per common share - basic and fully diluted     (0.1369 )     (0.4776 )     (0.3764 )     (0.5232 )
                                 
Weighted average number of basic and fully diluted common share outstanding*     12,241,835       3,499,259       11,926,020       3,245,491  

 

* The weighted average number of shares of common stock has been retroactively restated to reflect the 1 for 13 reverse stock-split on February 25, 2020

 

The accompanying notes are an integral part of these financial statements.

 

2

 

 

WEYLAND TECH, INC

Consolidated Statements of Stockholders’ Equity

  

    Common
Stock*
    Amount     Additional
paid-in
capital
    Subscriptions
received/
Capital
reserves
    Accumulated
(Deficit)
   

Stockholders’

(Deficit)/
Equity

 
                                     
Balance January 1, 2019     36,915,343     $ 3,692     $ 46,177,521     $ -     $ (41,071,971 )   $ 5,109,242  
Issuance of shares     5,103,121       510       585,129       -       -       585,639  
Net loss for the year     -       -       -       -       (26,853 )     (26,853 )
Balance March 31, 2019     42,018,464     $ 4,202     $ 46,762,650     $ -     $ (41,098,824 )   $ 5,668,028  
Issuance of shares     9,983,688       998       1,324,668       -       -       1,325,666  
Net loss for the year     -       -       -       -       (1,671,112 )     (1,671,112 )
Balance June 30, 2019     52,002,152     $ 5,200     $ 48,087,318     $ -     $ (42,769,936 )   $ 5,322,582  
                                                 
Balance January 1, 2020     111,304,253     $ 11,130     $ 58,058,118     $ -     $ (47,613,657 )   $ 10,455,591  
Effect of reverse split from 13 shares to 1 share     (102,742,549 )   $ 11,130     $ 58,058,118     $ -     $ (47,613,657 )   $ 10,455,591  
Issuance of shares     3,355,012       4,362       (790 )     14,282,143       -       14,285,714  
Cancelation of shares     (589 )     (1 )     1       -       -       -  
Shares issued for services     437,503       569       667,717       -       -       668,286  
Net loss for the period     -       -       -       -       (2,813,092 )     (2,813,092 )
Balance March 31, 2020     12,353,630       16,060       58,725,046       14,282,143       (50,426,750 )     22,596,499  
Issuance of shares     11,500     $ 15     $ (180 )   $ -     $ -     $ (165 )
Cancelation of shares     (296,157 )     (385 )     385               -       -  
Shares issued for services     127,000       165       (258,387 )             -       (258,222 )
Net loss for the period             -       -               (1,675,546 )     (1,675,546 )
Balance June 30, 2020     12,195,973       15,855       58,466,864       14,282,143       (52,102,296 )     20,662,566  

 

* The number of shares of common stock has been retroactively restated to reflect the 1 for 13 reverse stock-split on February 25, 2020

 

The accompanying notes are an integral part of these financial statements

 

3

 

 

WEYLAND TECH INC.

Consolidated Statements of Cash Flows

 

    For the six months ended
June 30,
 
    2020     2019  
    (Unaudited)     (Unaudited)  
             
OPERATING ACTIVITIES:            
Net loss   $ (4,488,638 )   $ (1,697,967 )
Adjustments to reconciled net loss to net cash used by operating activities:                
Depreciation of property and equipment     23,282       -  
Amortization of intangible assets     875,967       50,967  
              -  
Changes in operating assets and liabilities:                
(Increase) decrease in trade and other receivables     (913,621 )     -  
(Increase) decrease in amount due from associate     (1,498,000 )     (593,250 )
(Increase) decrease in prepaid expenses and current other assets     (140,832 )     -  
(Increase) decrease in accounts payable     690,538       -  
(Increase) decrease in other accrued liabilities     102,419       43,207  
(Increase) decrease in amount due from director     -       19,000  
Net cash provided by (used in) operating activities     (5,348,885 )     (2,178,043 )
                 
INVESTING ACTIVITIES:                
Financial assets held of resale - movement     2,730,363       -  
Net cash and cash equivalents acquired in acquisition     -       -  
Net restricted cash acquired in acquisition     1,599,572       -  
Net cash provided by (used in) investing activities     4,329,935       -  
                 
FINANCING ACTIVITIES:                
Repayment of bank loan     (500,000 )     -  
Borrowings under long term loan     10,000       -  
Proceeds from notes payable     503,700       -  
Proceeds from shares to be issued     1,482,485       4,838,301  
Proceeds from stock issuance     409,899       1,911,306  
Net cash provided by (used in) financing activities     1,906,084       6,749,607  
                 
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS     887,134       4,571,564  
                 
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD     2,972,649       731,355  
                 
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD   $ 3,859,783     $ 5,302,919  
                 
NON-CASH TRANSACTION                
Issuance of shares for service received   $ 409,899     $ 1,247,056  

 

The accompanying notes are an integral part of these financial statements

 

4

 

 

NOTES TO UNAUDITED CONDENSED

CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 1 – ORGANIZATION AND BUSINESS DESCRIPTION

 

Weyland Tech Inc. (the “Company”) is a global provider of mobile business applications. Its Platform-as-a-Service (“PaaS”) platform offers a mobile presence to businesses in emerging markets, with partnerships on 3 continents and growing. This Do It Yourself (“DIY”) mobile application platform, offered in 14 languages with over 70 integrated modules, enables small and medium sized businesses (“SMBs”) to create native mobile applications (“apps”) for Apple’s iOS and Google Android without technical knowledge or background, empowering SMBs to increase sales, reach more customers and promote their products and services in an easy, affordable and efficient manner.

 

In May 2018, the Company expanded its portfolio to fintech applications with the launch of its AtozPay mobile payments platform.

 

In the fall of 2019, the Company expanded its portfolio to short-distance food delivery service with the launch of AtozGo.

 

In January 2020, the Company, through its wholly-owned subsidiary, Logiq, Inc. (formerly known as Origin8, Inc.) (“Logiq”), completed the acquisition of substantially all of the assets of Push Holdings, Inc. Logiq operates a consumer data management platform powered by lead generation, online marketing, and multichannel reengagement strategies through its owned and operated brands. Logiq has developed a proprietary data management platform and integrated with several third-party service providers to optimize the return on its marketing efforts. Logiq focuses on consumer engagement and enrichment to maximize it’s return on acquisition through repeat monetization of each consumer. Logiq also licenses its software technology and provides managed technology services to various other e-commerce companies. Logiq is located in Minneapolis, Minnesota, USA

 

The accompanying consolidated financial statements include the financial position of the Company and its wholly owned subsidiary, Logiq, as of June 30, 2020, and the results of operations, changes in stockholders’ equity (deficit), and cash flows for the six month period ended June 30, 2020.

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

BASIS OF PRESENTATION

 

The financial statements have been prepared on a historical cost basis to reflect the financial position and results of operations of the Company in accordance with the accounting principles generally accepted in the United States of America (“GAAP”).

 

USE OF ESTIMATES

 

The preparation of the Company’s financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the 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 reporting period. Management makes its best estimate of the ultimate outcome for these items based on historical trends and other information available when the financial statements are prepared. Actual results could differ from those estimates.

 

5

 

 

PRINCIPLES OF CONSOLIDATION

 

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Logiq. Material intercompany balances and transactions have been eliminated on consolidation.

 

CERTAIN RISKS AND UNCERTAINTIES

 

The Company relies on cloud-based hosting through a global accredited hosting provider. Management believes that alternate sources are available; however, disruption or termination of this relationship could adversely affect our operating results in the near-term.

 

BUSINESS COMBINATIONS

 

The Company accounts for acquisition of entities that include inputs and processes and has the ability to create outputs as business combinations. The Company allocates the purchase price of the acquisition to the tangible assets, liabilities and identifiable intangible assets acquired based on their estimated fair values. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and integration costs are expensed as incurred.

 

SEGMENT REPORTING

 

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by our chief operating decision maker, or decision- making group, in deciding how to allocate resources and in assessing performance.

 

The Company is focused on mobile commerce enablement via our CreateAPP platform acquired in 2015 and subsequently enhanced in 2016 and 2017, offered on a Platform-as-a-Service (“PaaS”) basis. We identify our reportable segments as those customer groups that represent more than 10% of our combined revenue or gross profit or loss of all reported operating segments.

 

On January 8, 2020, the Company, through its wholly-owned subsidiary, Logiq, completed the acquisition of substantially all of the assets of Push Holdings, Inc. Logiq provides a consumer data management platform powered by lead generation, online marketing, and multichannel reengagement strategies through its owned and operated brands. Logiq develops proprietary technology solutions including, among other things, artificial intelligence powered media buying optimization, customer relationship management, payment processing, and fulfillment and customer lifecycle management platforms. Logiq utilizes its technologies to sell a multitude of products directly to consumers with a focus on recurring subscription based models. Logiq also licenses its software technology and provides managed technology services to various other ecommerce companies.

 

We manage our business on the basis of the two reportable segments: mobile commerce enablement via our CreateAPP platform service provider and consumer data management platform powered by lead generation, online marketing, and multichannel reengagement strategies through its owned and operated brands.

 

The accounting policies for segment reporting are the same as for the Company as a whole. We do not segregate assets by segments since our chief operating decision maker, or decision-making group, does not use assets as a basis to evaluate a segment’s performance.

 

6

 

 

IMPAIRMENT OF LONG-LIVED ASSETS

 

The Company classifies its long-life assets into: (i) computer and office equipment; (ii) furniture and fixtures, (iii) leasehold improvements, and (iv) finite – life intangible assets.

 

Long-life assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be fully recoverable. It is possible that these assets could become impaired as a result of technology, economy or other industry changes. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-life asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, relief from royalty income approach, quoted market values and third-party independent appraisals, as considered necessary.

 

The Company makes various assumptions and estimates regarding estimated future cash flows and other factors in determining the fair values of the respective assets. The assumptions and estimates used to determine future values and remaining useful lives of long-lived assets are complex and subjective. They can be affected by various factors, including external factors such as industry and economic trends, and internal factors such as the Company’s business strategy and its forecasts for specific market expansion.

 

ASSOCIATES

 

Associates are all entities over which the Company has significant influence but not control or joint control, generally accompanying a shareholding interest of between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting, after initially being recognized at cost. The Company’s investment in associates includes goodwill identified on acquisition. The Company’s share of its associates’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition other comprehensive income is recognized in other comprehensive income. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. Dividends receivable from associates are recognized as a reduction in the carrying amount of the investment. Where the Company’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured long-term receivables, the Company does not recognize further losses, unless it has incurred obligations or made payments on behalf of the associate. Unrealized gains on transactions between the group and its associates are eliminated to the extent of the Company’s interest in the associates. Unrealized losses are also eliminated, unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been changed, where necessary, to ensure consistency with the policies adopted by the Company.

 

7

 

 

FINANCIAL ASSETS

 

Financial assets at fair value through profit or loss are stated at fair value, with any resulting gain or loss recognized in profit or loss. The net gain or loss recognized in profit or loss incorporates any dividend or interest earned on the financial asset and is included in ‘other gains and losses’ line in the statement of profit or loss and other comprehensive income. Fair value is determined in the manner described in Note 7.

 

The Company measures certain financial assets at fair value on a recurring basis, including the available-for-sale debt securities. Fair value is the price the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. The Company uses a three-level hierarchy established by the Financial Accounting Standards Board (FASB) that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach and cost approach).

 

The levels of the fair value hierarchy are described below:

 

  Level 1: Quoted prices in active markets for identical assets or liabilities.

 

  Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

 

  Level 3: Unobservable inputs with little or no market data available, which require the reporting entity to develop its own assumptions.

 

The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Financial assets and liabilities are classified in their entirety based on the most conservative level of input that is significant to the fair value measurement.

 

Available-for-sale investments

 

Certain shares and debt securities held by the Company are classified as being available for sale and are stated at fair value. Fair value is determined in the manner described in Note 7. Gains and losses arising from changes in fair value, impairment losses, interest calculated using the effective interest method and foreign exchange gains and losses on monetary assets are recognized directly in profit or loss. Dividends on available-for-sale equity instruments are recognized in profit or loss when the Company’s right to receive payments is established. The fair value of available-for-sale monetary assets denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the end of the reporting period. The change in fair value attributable to translation differences that result from a change in amortized cost of the available-for-sale monetary asset is recognized in profit or loss, and other changes are recognized in other comprehensive income.

 

PROPERTY AND EQUIPMENT, NET

 

Property and equipment are stated at historical cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which are three to five years for computer and related equipment. Leasehold improvements are amortized over the lesser of the related lease term or their estimated useful life. Expenditures for major renewals and betterments are capitalized, while minor replacements, maintenance and repairs, which do not extend the asset lives, are charged to operations as incurred. Upon sale or disposition, the cost and related accumulated depreciation and amortization are removed from the accounts, and any gain or loss is included in the Company’s results from operations.

 

8

 

 

GOODWILL AND INTANGIBLES ASSETS, NET

 

Goodwill is recorded as the difference between the aggregate consideration paid for in a business combination and the fair value of the acquired net tangible and intangible assets acquired. The Company evaluates goodwill for impairment on an annual basis in the fourth quarter or more frequently if indicators of impairment exist that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. Based on that qualitative assessment, if it is more likely than not that the fair value of a reporting unit is less than its carrying value, the Company conducts a quantitative goodwill impairment test, which involves comparing the estimated fair value of the reporting unit with its carrying value, including goodwill. The Company estimates the fair value of a reporting unit using a combination of the income and market approach. If the carrying value of the reporting unit exceeds its estimated fair value, an impairment loss is recorded for the difference.

 

The Company’s intangible assets consist of software technology which are amortized using the straight-line method over five years. Amortization expenses related to intangible assets for the three months ended June 30, 2020 and 2019 amounted to $437,983 and $25,483, respectively. Amortization expenses related to intangible assets for the six months ended June 30, 2020 and 2019 amounted to $875,966 and $50,966, respectively.

  

RESEARCH AND DEVELOPMENT COSTS

 

Research and development expenses consist primarily of salaries and related expenses, consulting services and other direct expenses and developments to our website, e-commerce, and mobile app and web based digital platforms. We expect our research and development expenses to increase in absolute dollars as we continue to invest in new and existing products and services.

 

ACCOUNTS RECEIVABLE AND CONCENTRATION OF RISK

 

The Company’s CreateApp business effective September 1, 2015 is based on a nil accounts receivable balance as subscriptions are collected on a usage basis.

 

Our subsidiary, Logiq, Inc. (formerly known as Origin8, Inc.), accounts receivable, net is stated at the amount Logiq expects to collect, or the net realizable value. The Company provides a provision for allowances that includes returns, allowances and doubtful accounts equal to the estimated uncollectible amounts. The Company estimates its provision for allowances based on historical collection experience and a review of the current status of trade accounts receivable. It is reasonably possible that the Company’s estimate of the provision for allowances will change.

 

As of June 30, 2020 and 2019, the allowance for bad debt was approximately $54,619 and $0, respectively.

 

CASH AND CASH EQUIVALENTS

 

Cash and cash equivalents represent cash on hand, demand deposits, and other short-term highly liquid investments placed with banks, which have original maturities of twelve months or less and are readily convertible to known amounts of cash.

 

9

 

 

EARNINGS PER SHARE

 

Basic (loss) earnings per share is based on the weighted average number of common shares outstanding during the period while the effects of potential common shares outstanding during the period are included in diluted earnings per share.

 

FASB Accounting Standard Codification Topic 260 (“ASC 260”), “Earnings Per Share,” requires that employee equity share options, non-vested shares and similar equity instruments granted to employees be treated as potential common shares in computing diluted earnings per share. Diluted earnings per share should be based on the actual number of options or shares granted and not yet forfeited, unless doing so would be anti-dilutive. The Company uses the “treasury stock” method for equity instruments granted in share-based payment transactions provided in ASC 260 to determine diluted earnings per share. Antidilutive securities represent potentially dilutive securities which are excluded from the computation of diluted earnings or loss per share as their impact was antidilutive.

 

REVENUE RECOGNITION

 

The Company’s Platform as a Service (“PaaS”) provides the infrastructure allowing users to develop their own applications and IT services, which users can access anywhere via a web or desktop browser. The Company recognizes revenue on a pay-to-use subscription basis when our customers use our platform. For the territories licensed to our distributors and on a white label basis, we derive royalty income from the end user use of our platform on a white label basis.

 

The Company maintains the PaaS software platform at its own cost. Any enhancements and minor customization for our resellers/distributors are not separately billed. Major new proprietary features are billed to the customer separately as development income while re-usable features are added to the features available to all customers on subsequent releases of our platform.

 

Our subsidiary, Logiq, provides a consumer data management platform powered by lead generation, online marketing, and multichannel reengagement strategies through its owned and operated brands. Logiq develops proprietary technology solutions including, among other things, artificial intelligence powered media buying optimization, customer relationship management, payment processing, and fulfillment and customer lifecycle management platforms. Logiq also licenses its software technology and provides managed technology services to various other e-commerce companies.

 

COST OF SERVICE

 

Cost of service comprises fees from third party cloud-based hosting services. Logiq’s cost of revenue comprises online traffic sources.

 

INCOME TAXES

 

The Company uses the asset and liability method of accounting for income taxes in accordance with Accounting Standards Codification (“ASC”) 740, “Income Taxes” (“ASC 740”). Under this method, income tax expense is recognized as the amount of: (i) taxes payable or refundable for the current year and (ii) future tax consequences attributable to differences between financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using 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 the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of available evidence it is more likely than not that some portion or all of the deferred tax assets will not be realized.

 

10

 

 

RECENT ACCOUNTING PRONOUNCEMENTS

 

In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement,” to improve the effectiveness of disclosures in the notes to financial statements related to recurring or nonrecurring fair value measurements by removing amounts and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, policies for timing of transfers between different levels for fair value measurements, and the valuation processes for Level 3 fair value measurements. The new standard requires disclosure of the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments in this update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company does not expect that the adoption of this ASU will have a material impact on its condensed consolidated financial statements.

 

The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations, financial condition, or cash flows, based on current information.

 

NOTE 3 – INTANGIBLE ASSETS, NET

 

As of June 30, 2020, and December 31, 2019, the Company has the following amounts related to intangible assets:

 

    Software acquired     Other intangible assets     Logiq technology platform     Total  
Cost at January 1, 2020   $ 1,764,330     $ 5,000     $ -     $ 1,769,330  
Additions   $ -     $ -     $ 8,250,000     $ 8,250,000  
Cost at June 30, 2020   $ 1,764,330     $ 5,000     $ 8,250,000     $ 10,019,330  
                                 
Amortization                                
Brought forward at January 1, 2020   $ 1,155,732     $ 2,000     $ -     $ 1,157,732  
Charge for the period   $ 50,716     $ 250     $ 825,000       875,966  
Accumulated depreciation at June 30, 2020   $ 1,206,448     $ 2,250     $ 825,000     $ 2,033,698  
                                 
Net intangible assets at June 30, 2020   $ 557,882     $ 2,750     $ 7,425,000     $ 7,985,632  
                                 
Net intangible assets at December 31, 2019   $ 608,598     $ 3,000     $ -     $ 611,598  

 

Amortization expenses related to intangible assets for the three months ended June 30, 2020 and 2019 amounted to $437,983 and $25,483, respectively. Amortization expenses related to intangible assets for the six months ended June 30, 2020 and 2019 amounted to $875,966 and $50,966, respectively.

 

No significant residual value is estimated for these intangible assets.

 

The estimated future amortization expense of intangible costs as of June 30, 2020 in the following fiscal years is as follows:

 

Remaining of 2020   $ 875,966  
2021     1,751,932  
2022     1,751,932  
2023     1,751,932  
2024     1,751,932  
After 2024     101,938  
    $ 7,985,632  

 

11

 

  

NOTE 4 – PROPERTY AND EQUIPMENT, NET

 

As of June 30, 2020, and December 31, 2019, the Company has the following amounts related to property and equipment:

 

    Leasehold Improvements     Computers and Equipment     Total  
Cost at January 1, 2020     -       -       -  
Additions   $ 165,957     $ 59,169     $ 225,126  
Cost at June 30, 2020   $ 165,957     $ 59,169     $ 225,126  
                         
Amortization                        
Brought forward at January 1, 2020     -       -       -  
Charge for the period   $ 16,818     $ 6,465     $ 23,282  
Accumulated depreciation at June 30, 2020   $ 16,818     $ 6,465     $ 23,282  
                         
Net property and equipment assets at June 30, 2020   $ 149,139     $ 52,704     $ 201,843  
                         
Net property and equipment assets at December 31, 2019     -       -       -  

 

Depreciation expenses for the three months ended June 30, 2020 and 2019 amounted to $11,641 and $nil, respectively. Depreciation expenses for the six months ended June 30, 2020 and 2019 amounted to $23,282 and $nil, respectively.

 

NOTE 5 – GOODWILL

  

    As of
June 30,
2020
    As of
December 31,
2019
 
Goodwill at cost   $ 4,781,208        -  
Accumulated impairment losses     -       -  
Balance at end of period   $ 4,781,208       -  

 

Goodwill has been allocated for impairment testing purposes to the acquisition of the assets of Push Holdings Inc.by our wholly-owned subsidiary, Logiq.

 

The recoverable amount of this unit is determined based on external valuation performed by CBI Advisory Partners on March 20, 2020.

 

The assets were valued using a Fair Market Value basis as defined by The Financial Accounting Standards Board (FASB ASC 820-10-20). Liabilities were taken from Push Holdings Inc Consolidated Balance Sheet as of January 8, 2020.

 

12

 

  

NOTE 6 – ACCOUNTS RECEIVABLE

 

    As of
June 30,
2020
    As of
December 31,
2019
 
Balance as at beginning of period 1   $ -         -  
Additions charges to operations     1,677,293       -  
Allowance for doubtful debts     (54,619 )     -  
Recoveries     -       -  
Balance at end of period     1,622,674       -  

 

Movement all in allowance for doubtful debts

 

Balance at beginning of period   $ 54,619  
Impairment losses recognized     -  
Balance at end of period     54,619  

  

Age of Impaired trade receivables

  

Current   $ 1,428,296  
1 - 30 days     118,437  
31 - 60 days     21,881  
61 - 90 days     17,141  
91 and over     36,920  
Total     1,622,674  

 

NOTE 7 – FINANCIAL ASSETS

 

    Fair value  
   

As of
June 30,

2020

   

As of
December 31,

2019

 
    Assets     Liabilities     Assets     Liabilities  
                         
Held-for-trading investments   $      -              -     $ 2,730,363             -  

 

The investments above include investments in quoted fixed income securities that offer the Company the opportunity for return through interest income and fair value gains. They have various fixed maturity and coupon rate. The fair values of these securities are based on closing quoted market prices on the last market day of the financial year.

  

13

 

  

Fair value of the Company’s financial assets and financial liabilities are measured at fair value on recurring quoted bid prices on an active market basis. All the available for sale financial assets are classified as Level 1 as described in the Company’s accounting policies.

 

These investments were disposed and the proceeds utilized to repay the Company’s loan in note 12 below.

 

NOTE 8 – INVESTMENT IN ASSOCIATE

 

On April 23, 2018, the Company participated in the incorporation of a company in Indonesia, PT Weyland Indonesia Perkasa (“WIP’), an Indonesian limited liability company of which the Company held a 49% equity interest with the option to purchase an additional 31% equity interest at a later date. The results of operations of WIP from April 23, 2018 to June 30, 2020 has not been included as the amount had been fully impaired.

 

The Company held a 49% equity interest and a 31% unexercised option in WIP as at December 31, 2018. Due to the continuing legal restructuring in Indonesia, all the conditions precedent had not been satisfied and the 31% option had not been exercised as June 30, 2020.

 

In April 2019, the Company completed the distribution as a dividend in specie, to the Company’s shareholders of record at October 12, 2018 of 49% equity interest in WIP to Weyland AtoZPay Inc. and now holds an equitable interest of 31% in WIP.

 

The Company is in the process of increasing its equity interest in WIP to 51% in order to consolidate the financial results of WIP on a going-forward basis.

 

NOTE 9 – AMOUNT DUE FROM ASSOCIATE

 

The amount due from Associate is interest free, unsecured with no fixed repayment terms.

 

14

 

  

NOTE 10 – PREPAYMENTS, DEPOSIT AND OTHER RECEIVABLES

 

The following amounts are outstanding at June 30, 2020 and December 31, 2019:

 

   

As of
June 30,

2020

    As of
December 31,
2019
 
Deposit   $ 1,666,808     $ 1,619,808  
Other receivables     1,876       1,876  
Prepayments     125,772       20,000  
      1,794,456       1,641,684  

  

NOTE 11 – ACCRUALS AND OTHER PAYABLES

 

Accruals and other payable consist of the following:

 

   

As of
June 30,

2020

   

As of
December 31,

2019

 
Accruals   $ 572,275       298,453  
Other payables     252,692       -  
    $ 824,966       298,453  

  

NOTE 12 – BANK LOAN

 

The bank loan is part of a US Line of credit facility dated December 17, 2019 for a maximum principal of $2,296,805 expiring December 17, 2021 at an interest rate of LIBOR +3%. This loan is secured against the Company’s financial asset of $ 2,820,625 as disclosed in note 7 above. In June 2020, this loan was fully repaid from the disposal of the Company’s financial asset.

 

NOTE 13 – INCOME TAX

 

The United States of America

 

Weyland Tech, Inc. is incorporated in the State of Delaware in the U.S., and is subject to a gradual U.S. federal corporate income tax of 21%. The Company generated no taxable income for the year ended December 31, 2019 and 2018, and which is subject to U.S. federal corporate income tax rate of 21% and 34%, respectively.

   

    As of
June 30,
2020
    As of
December 31,
2019
 
U.S. statutory tax rate     21.00 %     21.00 %
Effective tax rate     21.00 %     21.00 %

 

Logiq, Inc. (formerly known as Origin8, Inc.)

 

As of June 30, 2020, this company does not have any deferred tax asset.

 

15

 

 

NOTE 14 –NOTES PAYABLE

 

On April 24, 2020, the Company’s subsidiary Logiq, Inc. (formerly known as Origin8, Inc.) (Logiq the “Company”) received loan proceeds in the amount of $503,700 (the “PPP Loan”) under the Paycheck Protection Program (“PPP”) under the Coronavirus Aid, Relief and Economic Security Act and applicable regulations (the “CARES Act”).

 

Under the terms of the CARES Act, as amended by the Paycheck Protection Program Flexibility Act of 2020, the Company is eligible to apply for and receive forgiveness for all or a portion of its PPP Loan. Such forgiveness will be determined, subject to limitations, based on the use of the loan proceeds for certain permissible purposes as set forth in the PPP, including, but not limited to, payroll costs (as defined under the PPP) and mortgage interest, rent or utility costs (collectively, “Qualifying Expenses”) incurred during the 24 weeks subsequent to funding, and on the maintenance of employee and compensation levels, as defined, following the funding of the PPP Loan. The Company intends to use the proceeds of its PPP Loan for Qualifying Expenses. However, no assurance is provided that the Company will be able to obtain forgiveness of the PPP Loan in whole or in part. Any amounts that are not forgiven incur interest at 1.0% per annum and monthly repayments of principal and interest are deferred until the Small Business Administration makes a determination on forgiveness. While the Company’s PPP Loan currently has a two-year maturity, the amended law will permit the Company to request a five-year maturity.
 

NOTE 15 – STOCKHOLDERS’ EQUITY

 

Common Stock

 

On February 25, 2020, the Company filed a certificate of amendment (the “Certificate of Amendment”) to the Company’s Certificate of Incorporation, as amended, with the Secretary of State of the State of Delaware, to effect a reverse stock split of the Company’s common stock, $0.0001 par value per share (“Common Stock”), at a rate of approximately 1-for-13 (the “Reverse Stock Split”).

 

Upon the filing of the Certificate of Amendment, and the resulting effectiveness of the Reverse Stock Split, every 13 outstanding shares of the Company’s Common Stock were, without any further action by the Company, or any holder thereof, combined into and automatically became 1 share of the Company’s Common Stock. No fractional shares were issued as a result of the Reverse Stock Split. In lieu thereof, fractional shares were cancelled, and stockholders received a cash payment in an amount equal to the fair market value of such fractional shares on the effective date. All shares of Common Stock eliminated as a result of the Reverse Stock Split have been returned to the Company’s authorized and unissued capital stock, and the Company’s capital was reduced by an amount equal to the par value of the shares of Common Stock so retired.

 

The Reverse Stock Split did not change the Company’s current authorized number of shares of Common Stock or its par value. As such, the Company is authorized to issue up to 250,000,000 shares of Common Stock, par value $0.0001.

 

Issuance of Common Stock

 

During the period from January 1, 2015 to June 8, 2015, 580,067,155 shares with par value of $0.0001 per share were issued to various stockholders.

 

During the period from September 2, 2015 to December 31, 2015, 1,163,600 shares with par value of $ 0.0001 per share were issued for legal and professional services, and 10,838,764 shares with par value of $ 0.0001 per share were issued to various stockholders.

 

During the year ended December 31, 2016, 9,747,440 shares with par value of $ 0.0001 per share were issued to various stockholders.

 

During the year ended December 31, 2017, 1,412,000 shares with par value of $ 0.0001 per share were issued for consultancy services received and 1,370,500 shares with par value of $0.0001 per share were issued to various stockholders.

 

During the year ended December 31, 2018, a total of 9,197,104 shares with par value of $ 0.0001 per share were issued for consultancy services received including shares issued to Senior Management, Directors, Operational Staff, Legal Consultants, Strategy Advisors and Technology Consultants received and 4,320,575 shares with par value of $0.0001 per share were issued to various stockholders.

 

In July 2019, the Company issued a total of 51,762,839 Reg S shares to high net worth individuals and family offices in South East Asia.

 

During the year ended December 31, 2019, a total of 19,311,309 shares with par value of $ 0.0001 per share were issued for consultancy services received including shares issued to Senior Management, Directors, Operational Staff, Legal Consultants, Strategy Advisors and Technology Consultants received and 58,627,601 shares with par value of $0.0001 per share were issued to various stockholders.

 

During the period from January 1, 2020 to March 31, 2020, a total of 3,792,515 shares (post reverse split of approximately 13: 1) with par value of $0.0001 per share were issued to various stockholders.

 

During the period from April 1, 2020 to June 30, 2020, a total of 138,500 shares (post reverse split of approximately 13: 1) with par value of $0.0001 per share were issued to various stockholders.

 

16

 

 

Capital reserve

 

On January 9, 2020, the Company issued 35,714,285 shares to Conversion Point Technologies Inc. as consideration for the acquisition of all the assets of Logiq Inc (formerly known as Origin8, Inc.) in the amount of $ 14,284,714 and represents the excess of consideration over the par value of common stock of $0.0001 issued.

 

Cancellation of Common Stock

 

During the year ended December 31, 2016, 1,598,000 shares with par value of $0.0001 per share were cancelled by various stockholders.

 

During the year ended December 31, 2017, 100,000 shares with par value of $0.0001 per share were cancelled by various stockholders.

 

During the year ended December 31, 2018, 62,964 shares with par value of $0.0001 per share were cancelled by various stockholders.

 

During the year ended December 31, 2019, 3,550,000 shares with par value of $0.0001 per share were cancelled.

 

During the quarter ended March 31, 2020, 589 shares (post reverse split of approximately 13: 1) with par value of $0.0001 per share were cancelled.

 

During the quarter ended June 30, 2020, 296,157 shares (post reverse split of approximately 13: 1) with par value of $0.0001 per share were cancelled and reversed previously issued to consultants.

 

Stock-Based Compensation

 

For the three months ended June 30, 2020, a total of 127,000 shares (post reverse split of approximately 13: 1) of common stock were issued as stock-based compensation to consultants.

 

NOTE 16 – (LOSS) PER SHARE

 

The following table sets forth the computation of basic and diluted earnings per common share for the six months ended June 30, 2020 and 2019, respectively:

 

    For the three months ended
June 30,
    For the six months ended
June 30,
 
    2020     2019     2020     2019  
                         
Numerator - basic and diluted                        
Net (Loss)   $ (1,675,546 )   $ (1,671,112 )   $ (4,488,638 )   $ (1,697,968 )
                                 
Denominator                                
Weighted average number of common shares outstanding —basic and diluted     12,241,835       3,499,259       11,926,020       3,245,491  
(Loss) per common share — basic and diluted   $ (0.1369 )   $ (0.4776 )   $ (0.3764 )   $ (0.5232 )

 

 

17

 

 

NOTE 17 – COMMITMENTS AND CONTINGENCIES

 

Operating lease

 

The Company’s current executive offices are currently leased for $820 per month.

 

Logiq, effective January 8, 2020, subleases approximately 350 square feet of office space in Irvine, CA, at a rate of $2,900 per month on a month to month basis. Logiq also leases approximately 30,348 square feet comprising 12,313 square feet of office space and 18,217 square feet of warehouse space in Minneapolis, Minnesota, at a rate of $ 367,200 per annum. The leased office space from a related party under common ownership is under a 7.5-year lease expiring December 31, 2021. The lease on the primary offices has a renewal option providing for additional lease periods. The related rent expense for the leases is calculated on a straight-line basis with the difference recorded as deferred rent.

 

The table below includes future minimum lease payments for leases renewed and entered into.

 

Future minimum lease payments under the non-cancelable operating lease agreements are as follows:

 

Remaining of 2020   $ 183,600  
2021   $ 367,200  

 

Legal proceedings

 

None.  

  

NOTE 18 – SEGMENT INFORMATION

 

Segment information

 

    Weyland
Tech Inc.
    Logiq     Total  
For the three months ended June  30, 2020                  
External revenue   $ 5,653,495     $ 3,661,565     $ 9,315,060  
Inter-segment revenue     -       -       -  
Segment (Loss) before tax   $ (444,299 )   $ (1,231,247 )   $ (1,675,546 )
                         
For the three months ended June 30, 2019                        
                         
External revenue   $ 7,141,932       -     $ 7,141,932  
Inter-segment revenue     -       -       -  
Segment (Loss) before tax   $ (1,671,114 )     -     $ (1,671,114 )

 

    Weyland
Tech Inc.
    Logiq     Total  
For the six months ended June  30, 2020                  
External revenue   $ 17,439,238     $ 6,857,216     $ 24,296,454  
Inter-segment revenue     -       -       -  
Segment (Loss) before tax   $ (2,210,006 )   $ (2,278,632 )   $ (4,488,638 )
                         
For the six months ended June 30, 2019                        
                         
External revenue   $ 15,633,624       -     $ 15,633,624  
Inter-segment revenue     -       -       -  
Segment (Loss) before tax   $ (1,697,968 )     -     $ (1,697,968 )

  

NOTE 19 – SUBSEQUENT EVENTS

 

The Company is rebranding our corporate name and logo to Logiq Inc. by amending the Delaware Article’s of Incorporation, filed form 8-K with the Securities and Exchange Commission on August 6, and applied for a new stock symbol with FINRA on August 7. It is anticipated that FINRA will issue a new symbol by August 15, 2020.

 

18

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

Forward Looking Statements

 

This quarterly report on Form 10-Q and other reports that we file with the SEC contain statements that are considered forward-looking statements. Forward-looking statements give the Company’s current expectations, plans, objectives, assumptions or forecasts of future events. All statements other than statements of current or historical fact contained in this quarterly report, including statements regarding the Company’s future financial position, business strategy, budgets, projected costs and plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “anticipate,” “estimate,” “plans,” “potential,” “projects,” “ongoing,” “expects,” “management believes,” “we believe,” “we intend,” and similar expressions. These statements are based on the Company’s current plans and are subject to risks and uncertainties, and as such the Company’s actual future activities and results of operations may be materially different from those set forth in the forward-looking statements. Any or all of the forward-looking statements in this periodic report may turn out to be inaccurate and as such, you should not place undue reliance on these forward-looking statements. The Company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs. The forward-looking statements can be affected by inaccurate assumptions or by known or unknown risks, uncertainties and assumptions due to a number of factors, including:

 

  dependence on key personnel;

 

  competitive factors;

 

  degree of success of research and development programs;

 

  the operation of our business; and

 

  general economic conditions in the ASEAN, Asia-Pacific Region and in the United States.

 

These forward-looking statements speak only as of the date on which they are made, and except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements contained in this quarterly report.

 

19

 

 

Use of Terms

 

Except as otherwise indicated by the context and for the purposes of this report only, references in this report to:

 

  “Weyland” the “Company,” “we,” “us,” or “our,” are to the business of Weyland Tech Inc., a Delaware corporation;

 

  “SEC” are to the Securities and Exchange Commission;

 

  “Securities Act” are to the Securities Act of 1933, as amended;

 

  “Exchange Act” are to the Securities Exchange Act of 1934, as amended;

 

  “U.S. dollars,” “dollars” and “$” are to the legal currency of the United States.

 

You should read the following plan of operation together with our financial statements and related notes appearing elsewhere in this quarterly report and the most recent Form 10-K and Form 10-Q. This plan of operation contains forward-looking statements that involve risks, uncertainties, and assumptions. The actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors.

 

Overview

 

Weyland Tech Inc. (the “Company”) is a global provider of mobile business applications. Its Platform-as-a-Service (“PaaS”) platform offers a mobile presence to businesses in emerging markets, with partnerships on 3 continents and growing. This Do It Yourself (“DIY”) mobile application platform, offered in 14 languages with over 70 integrated modules, enables small and medium sized businesses (“SMBs”) to create native mobile applications (“apps”) for Apple’s iOS and Google Android without technical knowledge or background, empowering SMBs to increase sales, reach more customers and promote their products and services in an easy, affordable and efficient manner.

 

In May 2018, the Company expanded its portfolio to fintech applications with the launch of its AtozPay mobile payments platform.

 

In the fall of 2019, the Company expanded its portfolio to short-distance food delivery service with the launch of AtozGo.

 

In January 2020, the Company, through its wholly-owned subsidiary, Logiq, Inc. (formerly known as Origin8, Inc.) (“Logiq”), completed the acquisition of substantially all of the assets of Push Holdings, Inc (Note 17). Logiq operates a consumer data management platform powered by lead generation, online marketing, and multichannel reengagement strategies through its owned and operated brands. Logiq has developed a proprietary data management platform and integrated with several third-party service providers to optimize the return on its marketing efforts. Logiq focuses on consumer engagement and enrichment to maximize its return on acquisition through repeat monetization of each consumer. Logiq also licenses its software technology and provides managed technology services to various other e-commerce companies. Logiq is located in Minneapolis, Minnesota, USA.

 

COVID-19 Effect

 

Due to the unprecedented effect and related impact of Covid-19 pandemic, the Company has experienced a push back from the Company’s resellers and white label distributors, for its Platform as a Service pay-to-use subscription basis, noted in April 2020 to the date of this report. The Company is expecting a continuing reduction in its service revenues, as it provides complimentary services to maintain customers and loss of customers, in the remaining period to December 31, 2020 on an as needed basis.

  

20

 

 

Results of Operation

 

Results of Operations for the Three Months ended June 30, 2020 and 2019

 

The following tables set forth our results of operations for the three months period ended June 30, 2020 and 2019 respectively, presented in dollars and as a percentage of net revenue:

 

    Three Months ended  
    June 30, 2020     June 30, 2019  
Revenue (service)   $ 9,315,060       100.00 %   $ 7,141,932       100.00 %
Cost of revenues (service)     8,095,406       86.91       5,874,249       82.25  
Gross profit     1,219,654       13.09       1,267,683       17.75  
Other Income(Expenses),net     (265,223 )     (2.85 )     -       -  
Gross Income     954,431       10.25       1,267,683       17.75  
                                 
Depreciation and Amortization     449,625       4.83       25,483       0.33  
General and administrative     1,180,246       12.67       1,280,869       17.93  
Sales and Marketing     99,262       1.07       389,610       5.46  
Research and development     900,844       9.67       1,242,833       17.40  
Total operating expenses     2,629,977       28.23       2,983,795       41.15  
(Loss) from operations     (1,675,546 )     (17.99 )     (1,671,112 )     (23.40 )
Impairment loss on investment in associate     -       -       -       -  
Net (loss) before income tax     (1,675,546 )     (17.99 )     (1,671,112 )     (23.40 )
Income tax (expense)     -       -       -       -  
Net (loss)   $ (1,675,546 )     (17.99 )   $ (1,671,112 )     (23.40 )

 

Segment Reporting

 

We consolidated the results of our subsidiary, Logiq Inc from January 8, 2020 and the comparatives for the three months ended June 30, 2019 are not applicable (“N/A”).  

 

Revenue

 

Consolidated Revenues were $9,315,060 and $7,141,932 for the three months ended June 30, 2020 and 2019, respectively.

 

The revenues from the our CreateAPP platform decreased to $5,653,495 compared to $ 7,141,932 for the three months ended June 30, 2020 and 2019, respectively as a result of providing complimentary subscriptions to retain our customers impacted by Covid-19 pandemic.

 

Our data logic platform Logiq revenues were $3,661,565 (2019: N/A).

 

Cost of Revenue

 

Consolidated Cost of revenues were $8,095,406 and $5,874,249 for the three months ended June 30, 2020 and 2019, respectively.

 

The Cost of revenues of the Company’s CreateAPP platform decreased to $5,000,454 and $ 5,874,249 for the three months ended June 30, 2020 and 2019,

 

Our data logic platform cost of revenue from Logiq were $3,094,951 (2019: N/A).

 

Gross margin

 

Our consolidated gross margin reduced to 13.09% from 17.75% for the three months ended June 30, 2020 and 2019.

 

Our CreateAPP platform gross margin reduced to 11.55% from 17.75% as a result of providing complimentary services and discounting to maintain customers during Covid-19 pandemic.

 

Our data logic platform Logiq gross margin was 15.47% for the three months ended June 30, 2020. (2019: N/A).

 

Other Income/(Expenses), net

 

Consolidated Other income (expenses), net were ($265,223) for the three months ended June 30, 2020 (2019: nil).

 

The Company received interest from US fixed income money market funds $7,800 against loss on change in fair value of ($15,099) on disposal of this fund for the period.

 

Our data logic platform Logiq incurred $255,594 arising from the early withdrawal from an escrow account.

 

21

 

 

Operating Expenses

 

General and administrative: Consolidated General and administrative expenses were $1,180,246 and $1,280,869 for the three months ended June 30, 2020 and 2019, respectively.

 

The Company’s General and administrative expenses were $200,383 and $ 1,280,869 for the three months ended June 30, 2020 and 2019, respectively. This included a reversal of Consultancy fees of ($181,108) due to cancellation of shares issued previously for the three months ended June 30, 2020 and $910,916 for costs due to the Reg S private placement for the three months ended June 30, 2019.

 

Our data logic platform Logiq’s General and administrative expenses were $979,864 (2019: N/A).

 

Research and Development: Consolidated Research and Development expenses were $900,844 and $1,242,844 for the three months ended June 30, 2020 and 2019, respectively.

 

Our CreateAPP platform Research and Development expenses were $862,500 and $ 1,242,833 for the three months ended June 30, 2020 and 2019, respectively which were scaled back in Q2 on the onset of the Covid-19 pandemic.Our data logic platform Logiq’s Research and Development expenses was $38,344. (2019: N/A).

 

Sales and Marketing: Consolidated Sales and Marketing expenses were $99,262 and $389,610 for the three months ended June 30, 2020 and 2019, respectively.

 

The Company’s Sales and Marketing activities was curtailed due to Covid-19 to $0 and $ 389,610 for the three months ended June 30, 2020 and 2019, respectively.

 

Our data logic platform Logiq’s Sales and Marketing expenses was $99,262 (2019: N/A)..

 

Net (Loss)

 

The Company reports a Consolidated net loss of ($1,675,546) for the three months ended June 30, 2020 as compared to a net loss ($1,671,112) for the three months ended June 30, 2019.

 

The Company incorporating our CreateAPP platform incurred a net loss of ($ 444,298) and ($ 1,671,112) for the three months ended June 30, 2020 and 2019, respectively.

 

Our data logic platform Logiq incurred a net loss of ($1,231,247) for the three months ended June 30, 2020 (2019: N/A).

 

Results of Operations for the Six Months ended June 30, 2020 and 2019

 

The following tables set forth our results of operations for the six months period ended June 30, 2020 and 2019 respectively, presented in dollars and as a percentage of net revenue:

 

    Six Months ended  
    June 30, 2020     June 30, 2019  
Revenue (service)   $ 24,296,454       100.00 %   $ 15,633,624       100.00 %
Cost of revenues (service)     20,431,668       84.09       12,858,676       82.25  
Gross profit     3,864,786       15.91       2,774,948       17.75  
Other Income (Expenses), net     (261,415 )     (1.08 )     -       -  
Gross Income     3,603,371       14.83       2,774,948       17.75  
                                 
Depreciation and Amortization     899,249       3.70       50,967       0.33  
General and administrative     4,382,288       18.04       1,921,791       12.29  
Sales and Marketing     152,277       0.63       389,610       2.49  
Research and development     2,658,195       10.94       2,110,548       13.50  
Total operating expenses     8,092,009       33.31       14,472,916       28.61  
(Loss) from operations     (4,488,638 )     (18.47 )     (1,697,968 )     (10.86 )
Impairment loss on investment in associate     -       -       -       -  
Net (loss) before income tax     (4,488,638 )     (18.47 )     (1,697,968 )     (10.86 )
Income tax (expense)     -       -       -       -  
Net (loss)   $ (4,488,638 )     (18.47 )   $ (1,697,968 )     (10.86 )

 

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Segment Reporting

 

We consolidated the results of our subsidiary, Logiq Inc from January 8, 2020 and the comparatives for the six months ended June 30, 2019 are not applicable (“N/A”).  

 

Revenue

 

Consolidated Revenue was $24,296,454 and $15,633,624 for the six months ended June 30, 2020 and 2019, respectively.

 

The revenues from the our CreateAPP platform were $17,439,238 and $15,633,624 for the three months ended June 30, 2020 and 2019, respectively. Our Q2 CreateAPP revenues were adversely impacted as a result of providing complimentary subscriptions to retain our customers affected by Covid-19 pandemic and reduced to $ 5,653,495 from $11,785,743 in Q1.

 

Our data logic platform Logiq’s revenue effective January 9, 2020 were $6,857,216 (2019: N/A)

 

Cost of Revenue

 

Consolidated Cost of revenue were $20,431,668 and $12,858,676 for the six months ended June 30, 2020 and 2019, respectively.

 

The Cost of revenues of the Company’s CreateAPP platform increased to $14,694,238 and $ 12,858,676 for the six months ended June 30, 2020 and 2019,

 

Our data logic platform Logiq’s Cost of revenues was $5,737,430 (2019: N/A).

 

Gross margin

 

Our Consolidated gross margin reduced to 15.9% from 17.8% for the six months ended June 30, 2020 and 2019, as a result of providing complimentary services and discounting to maintain customers during Covid-19 pandemic.

 

Our CreateAPP platform gross margin reduced to 15.74% from 17.75% as a result of providing complimentary services and discounting to maintain customers during Covid-19 pandemic.

 

Our data logic platform Logiq gross margin was 16.33% for the six months ended June 30, 2020 (2019: N/A).

 

Other Income/(Expenses), net

 

Consolidated Other income (expenses), net was ($261,415) for the six months ended June 30, 2020 (2019: nil).

 

The Company received interest from US fixed income money market funds $42,713 against loss on change in fair value of ($48,223) on disposal of this fund in June 2020.

 

Our data logic platform Logiq incurred $ 255,594 due to the early withdrawal from an escrow account

 

Operating Expenses

 

General and administrative: Consolidated General and administrative expenses were $4,382,288 and $1,921,791 for the six months ended June 30, 2020 and 2019, respectively.

 

The Company’s General and administrative expenses were $2,354,218 and $ 1,921,791 for the six months ended June 30, 2020 and 2019, respectively. During the period, we incurred Investor and public relations costs of $ 799,643 (2019: $ 514,264) in connection with our uplisting plans to a more senior exchange.

 

Our data logic platform Logiq’s General and administrative expenses was $2,028,070 (2019: N/A).

 

Research and Development: Consolidated Research and Development expenses were $2,658,195 and $2,110,548 for the six months ended June 30, 2020 and 2019, respectively.

 

Our CreateAPP platform Research and Development expenses were $2,544,000 and $ 2,110,548 for the six months ended June 30, 2020 and 2019, respectively. Our Research and Development plans were scaled back in Q2 on onset of Covid-19 to $ 862,500 for the three months ended June 2020.

 

Our data logic platform Logiq’s Research and Development expenses was $ 114,195. (2019: N/A).

 

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Sales and Marketing: Consolidated Sales and Marketing expenses were $152,277 and $389,610 for the six months ended June 30, 2020 and 2019, respectively.

 

The Company’s Sales and Marketing activities was curtailed due to Covid-19 to $0 and $ 389,610 for the six months ended June 30, 2020 and 2019, respectively.

 

Our data logic platform Logiq’s Sales and Marketing expenses was $152,277 (2019: N/A)

 

Net (Loss)

 

The Company reports a Consolidated net loss of ($4,488,638) for the six months ended June 30, 2020 as compared to a net loss ($1,697,968) for the six months ended June 30, 2019.

 

The Company incorporating our CreateAPP platform incurred a net loss of ($ 2,210,006) and ($ 1,697,968) for the six months ended June 30, 2020 and 2019, respectively.

 

Our data logic platform Logiq incurred a net loss of ($2,278,632) for the six months ended June 30, 2020 (2019: N/A).

 

Liquidity and Capital Resources

 

During the six months period ended June 30, 2020, our primary sources of capital came from our operations, existing cash, government loans and third-party financing.

 

Our future capital requirements will depend on many factors including our growth rate, the timing and extent of spending to support development efforts, the expansion of our sales and marketing, the timing of new product introductions and the continuing market acceptance of our products and services. If cash generated from operations is insufficient to satisfy our capital requirements, we may open a revolving line of credit with a bank, or we may have to sell additional equity or debt securities or obtain expanded credit facilities to fund our operating expenses, pay our obligations, diversify our geographical reach and grow our company. In the event such financing is needed in the future, there can be no assurance that such financing will be available to us, or, if available, that it will be in amounts and on terms acceptable to us. If cash flows from operations became insufficient to continue operations at the current level, and if no additional financing was obtained, then management would restructure the Company in a way to preserve its business while maintaining expenses within operating cash flows.

 

However, we estimate that based on current plans and assumptions, that our available cash will be sufficient to satisfy our cash requirements under our present operating expectations, without further financing, for up to 12 months. We have sufficient working capital to fund the expansion of our operations and to provide working capital necessary for our ongoing operations and obligations.

 

A summary of our changes in cash flows for the six months ended June 30, 2020 and 2019 is provided below:

 

    Six months ended
June 30,
 
    2020     2019  
Net cash flows provided by (used in):            
Operating activities   $ (5,348,885 )   $ (2,178,043 )
Investing activities     4,329,935       -  
Financing activities     1,906,084       6,749,607  
Net increase (decrease) in cash and cash equivalents     887,134       4,571,564  
Cash, cash equivalents, beginning of period     2,972,649       731,355  
Cash, cash equivalents end of period   $ 3,859,783     $ 5,302,919  

 

As of June 30, 2020, we had total assets of $ 24,618,846 and $3,956,280 in liabilities. We have a total stockholders’ equity of $20,662,566 as of June 30, 2020.

 

As of June 30, 2020, we had cash and cash equivalents of $3,859,783, including the subsidiary Push Holdings Inc’s cash and cash equivalents of $938,335.

 

Cash Used Provided by Operating Activities

 

Operating activities used ($5,348,885) in operations for the six months ended June 30, 2020, as compared to ($2,178,043) for the six months ended June 30, 2019. This increase is attributable to net loss from consolidated operations of ($4,488,638) comprising the Company’s loss of ($1,697,968) and that of our subsidiary Push Holdings Inc of ($2,278,632).

 

Cash Used in Investing Activities

 

The Company invested in Financial assets held for resale of $2,730,363, which was subsequently disposed in June 2020 and net cash held by our subsidiary Logiq Inc (incorporating Push Holdings Inc) of $1,599,572.

 

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Cash Provided by Financing Activities

 

Financing activities provided $1,906,084 in cash for the six months ended June 30, 2020, as compared to $6,749,607 for the six months ended June 30, 2019. This decrease is proceeds from stock issuance and repayment of a bank loan of $1,990,000 by the Company and a new Covid-19 loan in the form of Notes payable by our subsidiary Push Holdings Inc of $503,700.

 

As reflected in the financial statements, the Company had net cash, cash equivalents in operations of $3,859,783, a net consolidated loss of $4,488,638 and an accumulated deficit of $ 52,102,296 as at June 30, 2020.

 

We estimate that based on current plans and assumptions, that our available cash will be sufficient to satisfy our cash requirements under our present operating expectations, without further financing, for up to 12 months. We have sufficient working capital to fund the expansion of our operations and to provide working capital necessary for our ongoing operations and obligations. We may continue to raise significant additional capital to fund our operating expenses, pay our obligations, diversify our geographical reach and grow our company.

 

Critical Accounting Policies

 

For a description of our critical accounting policies, see Note 2 – Summary of Significant Accounting Policies in Part 1, Item 1 of this Quarterly Report on Form 10-Q.

 

Recently Issued Accounting Pronouncements

 

For a description of our recently issued accounting pronouncements, see Note 2 – Summary of Significant Accounting Policies in Part 1, Item 1 of this Quarterly Report on Form 10-Q.

 

Off-Balance Sheet Arrangements

 

The Company has no off-balance sheet arrangements.

 

25

 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information under this item.

 

Item 4. Controls and Procedures.

 

a) Evaluation of Disclosure Controls and Procedures

 

Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). that is designed to ensure that information required to be disclosed by the Company in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

 

As of the end of the period covered by this report, we have carried out an evaluation of the effectiveness of the design and operation of our company’s disclosure controls and procedures, and our current procedures are in full compliance with disclosure controls and procedures.

 

b) Management’s Report on Internal Control over Financial Reporting

 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting for the Company. Our internal control system was designed to, in general, provide reasonable assurance to the Company’s management and board regarding the preparation and fair presentation of published financial statements, but because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

 

Our management assessed the effectiveness of the Company’s internal control over financial reporting as of June 30, 2020. The framework used by management in making that assessment was the criteria set forth in the document entitled “Internal Control – Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework). Based on this assessment, our management has concluded that our internal controls were effective as of June 30, 2020.

 

c) Changes in Internal Control over Financial Reporting

 

Our management has reported to the Audit Committee the content of the material weaknesses identified in our assessment. Addressing these weaknesses is a priority of management and we are in the process of remediating the cited material weaknesses. For example, the Company is actively evaluating its internal control structure to identify the need for additional resources to ensure appropriate segregation of duties.

 

Except as disclosed in the preceding paragraphs, there have been no changes in our internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect our internal control over financial reporting.

 

26

 

 

PART II – OTHER INFORMATION

 

Item 1. Legal Proceedings

 

We are currently not involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations, except as set forth below. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.

 

Item 1A. Risk Factors

 

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information under this item.

 

We must successfully navigate the demand, supply and operational challenges associated with the ongoing coronavirus (COVID-19) pandemic.

 

Certain segments of our business has begun to be negatively affected by a range of external factors related to COVID-19 that are not within our control. For example, numerous measures have been implemented by governmental authorities across the globe to contain the virus, including travel bans and restrictions, quarantines, shelter-in-place orders, restrictions and limitations of public gatherings, and business limitations and shutdowns. Many of our customers’ businesses have been severely impacted by these measures and some have been required to reduce employee headcount as a result. If a significant number of our customers are unable to continue as a going concern, this would have an adverse impact on our business and financial condition. In addition, many of our customers are working remotely, which may delay the timing of new business and implementations of our services. If COVID-19 continues to have a substantial impact on our partners, customers, vendors, resellers, or suppliers, our results of operations and overall financial performance will be harmed.

 

The impacts of COVID-19 on our business, customers, partners, vendors, resellers, suppliers, employees, markets and financial results and condition are uncertain, evolving and dependent on numerous unpredictable factors outside of our control, including:

 

the spread, duration and severity of COVID-19 as a public health matter and its impact on governments, businesses and society generally and our clients, partners, vendors, resellers, suppliers and our business more specifically;

 

the measures being taken by governments, businesses and society in response to COVID-19 and the effectiveness of those measures;

 

the scope and effectiveness of fiscal and monetary stimulus programs and other legislative and regulatory measures being implemented by federal, state and local governments in response to COVID-19;

 

the duration and impact of the numerous measures implemented by governmental authorities throughout the country to contain COVID-19, including travel bans and restrictions, quarantines, shelter-in-place orders, restrictions and limitations on public gatherings, and business limitations and shutdowns;

 

the increase in business failures or slowdowns among our customers, vendors, resellers, suppliers, and other businesses;

 

the pace and extent to which our customers and other businesses are able to operate and/or reduce their number of employees and other compensated individual;

 

27

 

 

the willingness of current and prospective clients to invest in our products and services;

 

the willingness of current and prospective clients to buy and install products and services remotely;

 

the satisfaction of customers with product and service remote delivery and support; and

 

the continuing extension of complimentary subscriptions to retain our customers.

 

If we are not able to respond to and manage the impact of such events effectively, our business will be adversely impacted.

 

At present, it is clear the global economy has been negatively impacted by COVID-19, and demand for some of our products and services have been reduced due to uncertainty and the economic impact of COVID-19.

 

More generally, COVID-19 raises the possibility of an extended global economic downturn, which could affect demand for our products and services and impact our results and financial condition even after the pandemic is contained and remediation/restriction measures are lifted. For example, we may be unable to collect receivables from customers that are significantly impacted by COVID-19. COVID-19 may also have the effect of heightening many of the other risks described in the “Risk Factors” section of our Annual Report on Form 10-K. We will continue to evaluate the nature and extent of the impact of COVID-19 may have on our business.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

 

There were no unregistered shares of equity securities sold during this time period which were not previously disclosed.

 

Item 3. Defaults Upon Senior Securities

 

None

 

Item 4. Mine Safety Disclosures.

 

Not applicable.

 

Item 5. Other Information.

 

There is no other information required to be disclosed under this item which was not previously disclosed.

 

28

 

 

Item 6. Exhibits

 

Exhibit No.   Description of Exhibit
10.1   Form of Subscription Agreement
10.2   Form of Warrant
10.3   Consultancy Service Agreement by and between the Company and Falcon Capital Partners Limited, dated June 7, 2019.
31.1*   CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO EXCHANGE ACT RULE 13a-14(a)/15d-14(a) AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
31.2*   CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO EXCHANGE ACT RULE 13a-14(a)/15d-14(a) AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
32.1*   CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
32.2*   CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
101.INS   XBRL Instance Document*
101.SCH   XBRL Taxonomy Extension Schema Document*
101.CAL   XBRL Taxonomy Extension Calculation Linkbase Document*
101.DEF   XBRL Taxonomy Extension Definition Linkbase Document*
101.LAB   XBRL Taxonomy Extension Label Linkbase Document*
101.PRE   XBRL Taxonomy Extension Presentation Linkbase Document*

 

* Filed herewith

 

29

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

  Weyland Tech Inc.
   
August 14, 2020 /s/ Brent Y Suen
  President, Chief Executive Officer
  (Principal Executive Officer
  and Principal Financial Officer)
   
  /s/ Lionel Choong
  Lionel Choong
  Chief Accounting Officer

 

 

30

 

 

Exhibit 31.1

 

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO EXCHANGE ACT RULE 13a-14(a)/15d-14(a)

AS ADOPTED PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

 

I, Brent Suen, certify that:

 

  1. I have reviewed this quarterly report on Form 10-Q of Weyland Tech, Inc.;
       
  2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
       
  3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
       
  4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
       
    a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
       
    b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
       
    c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
       
    d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
       
  5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
       
    a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
       
    b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: August 14, 2020  
   
/s/ Brent Suen  
Brent Suen  
Chief Executive Officer and President  
(Principal Executive Officer)  

 

Exhibit 31.2

 

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO EXCHANGE ACT RULE 13a-14(a)/15d-14(a)

AS ADOPTED PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

 

I, Brent Suen, certify that: 

 

  1. I have reviewed this quarterly report on Form 10-Q of Weyland Tech, Inc.;

 

  2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

  3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

  4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

  a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

  d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

  5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

  b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: August 14, 2020  
   
/s/ Brent Suen  
Brent Suen  
Chief Executive Officer and President  
(Principal Financial Officer)  

 

Exhibit 32.1

 

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF

THE SARBANES-OXLEY ACT OF 2002

 

In connection with this Quarterly Report on Form 10-Q for the quarter ending June 30, 2020 of Weyland Tech Inc. (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, in the capacity and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

 

1. The Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 (the “Report”), fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

 

2. Information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

 

IN WITNESS WHEREOF, each of the undersigned has executed this statement this 14th day of August 2020.

 

  /s/ Brent Suen
  Brent Suen
  Chief Executive Officer and President
  (Principal Executive Officer)

 

Exhibit 32.2

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with this Quarterly Report on Form 10-Q for the quarter ending June 30, 2020 of Weyland Tech Inc. (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, in the capacity and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

 

1. The Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 (the “Report”), fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

 

2. Information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

 

IN WITNESS WHEREOF, each of the undersigned has executed this statement this 14th day of August, 2020.

 

  /s/ Brent Suen
  Brent Suen
  Chief Executive Officer and President
  (Principal Financial Officer)