Industrial Technical Holdings Corp

CIK:0001786989|SEC Filings

Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Consolidated Statements of Operations and Comprehensive Income (Loss)
Revenues	$ 6,631,309	$ 4,991,624
Cost of revenues	4,898,148	3,223,035
Gross profit	1,733,161	1,768,589
Operating expenses:
Selling and marketing	653,061	224,677
General and administrative	1,774,828	1,617,970
Stock-based compensation	0	25,000
Total operating expenses	2,427,889	1,867,647
Operating Income	(694,728)	(99,058)
Other income (expenses):
Other income	137,849	240,602
Other expense	(177,774)	(274,585)
Share of loss of investment in joint venture	(175)	(2,030)
Interest on lease liability	0	(19,568)
Total other income (expenses), net	(40,100)	(55,581)
Income before income taxes	(734,828)	(154,639)
Income tax expense	3,637	18,669
Net loss	$ (738,465)	$ (173,308)
Weighted average number of shares, basic and diluted	3,378,760	3,375,918
Loss per share, basic and diluted	$ (0.16)	$ (0.05)
Other comprehensive income (loss):
Foreign currency translation adjustment	$ 135,130	$ (96,591)
Comprehensive loss	$ (603,335)	$ (76,717)

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Cash Flows from Operating Activities:
Net income	$ (738,465)	$ (173,308)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,697	142,158
Gain on fixed asset disposal	0	0
Amortization of convertible loan	6,150	59,925
Interest expense of convertible loan		18,720
Depreciation of right-of-use assets	0	178,135
Share-based compensation	0	25,000
Bad debt expense		2,411
Share of loss of investment in joint venture	338	2,030
Provision for obsolete inventories		176,805
Changes in operating assets and liabilities:
Accounts receivable	305,744	(114,900)
Product inventories	(395,679)	(142,334)
Prepaid expenses and other current assets	(229,351)	102,616
Operating lease		(186,921)
Trade accounts and other payables	657,995	(501,804)
Amount due from related parties	1,571,944	(12,061)
Amount due to related parties	(1,575,240)	(3,914)
Net cash provided (used) by operating activities	(394,867)	(427,442)
Cash Flows from Investing Activities:
Purchases of property, plant and equipment		(51,131)
Proceeds from sale of fixed assets	94,890
Net cash used in investing activities	94,890	(51,131)
Cash Flows from Financing activities:
Proceeds from convertible notes payable	124,025	60,000
Net cash provided by financing activities	124,025	60,000
Effect of exchange rate changes on cash and cash equivalents	159,346	6,294
Net increase (decrease) in cash and cash equivalents	(16,607)	(412,279)
Cash and cash equivalents at the beginning of year	55,950	468,229
Cash and cash equivalents at the end of year	39,343	55,950
Cash paid during the period for:
Income Tax	3,637	18,669
Interest	$ (315)	$ (577)
SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION
Ordinary shares issued in consideration for services		25,000

Consolidated Balance Sheets - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 39,343	$ 55,950
Accounts receivable	141,861	440,783
Other receivables	56,257	5,469
Due from related parties	34,819	12,750
Prepayment	208,192	11,823
Deferred IPO cost		0
Inventories	2,417,016	1,968,150
Other current asset	66,234	78,734
Total current assets	2,963,722	2,573,659
Non-current assets:
Property, plant and equipment, net	284,692	371,726
Construction in progress	110,683	108,043
Intangible asset	4,043	5,786
Investment in joint venture	62,341	27,671
Right-of-use assets, net	425,949	415,791
Total non-current assets	887,708	929,017
TOTAL ASSETS	3,851,430	3,502,676
Current liabilities:
Convertible notes payable	119,215	200,175
Accounts and other payable	1,482,013	1,101,279
Advance from customer	437,831	302,229
Salary payable	137,594	113,412
Other payables	476,416	89,349
Tax payables	20,706	33,543
Due to related party	31,149	30,407
Operating lease Liabilities, current	169,393	165,354
Total current liabilities	2,874,317	2,035,748
Non-current liabilities:
Operating lease Liabilities, non-current	247,041	241,149
Total non-current liabilities	247,041	241,149
TOTAL LIABILITIES	3,121,358	2,276,897
SHAREHOLDERS' EQUITY
Common shares, $0 par value, 100,000,000 shares authorized, 3,378,760 and 3,378,760 shares issued and outstanding at December 31, 2020, and 2021, respectively	0	0
Additional paid-in capital	3,021,912	3,021,912
Accumulated Deficit	(2,426,970)	(1,688,505)
Accumulated other comprehensive income	135,130	(107,628)
Total shareholders' equity(deficit)	730,072	1,225,779
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 3,851,430	$ 3,502,676