We primarily engage in the manufacturing and distribution of organic fertilizer and the sales of agricultural products in the PRC. Our organic fertilizer products are sold under our brand names "Zongbao," "Fukang," and "Muliang."
Viagoo business model has three main revenue streams.
? VTM provides single job and bulk orders or API connections for a job posting.
The fees are pre-calculated based on distance, areas, volume matric weight,
type of goods, delivery options, and time.
? Task tracking - Shippers can track the delivery status if the option for
? eWallet option - eWallet will be used for the service purpose, and payment
will be deducted from the eWallet stored value.
? Reports - Delivery reports are available for shippers to track the performance
? Automatic Scheduling - Delivery / Invoice data will be pushed to the VES for
an automatic schedule to the driver via VES mobile app. The criteria of
automatic scheduling are based on location, time preference, and route zoning.
These criteria can be configured and fine-tuned as the business progresses.
? Route Optimisation - The system can automatically calculate the best routes
based on various delivery points and constraints such as "time window." With
route optimization, the transport planner can handle new delivery addresses
dynamically. Also, if there is a change in delivery plans due to various
unforeseen circumstances such as vehicle breakdown and customer last-minute
? VES Driver app - Task tracking - Once the tasks are started, they will be
tracked until they are completed. If e-sign is accepted, customers can sign
and acknowledge the acceptance of goods using VES' mobile sign feature built
into the app or by taking a photo of the signed invoices or delivering orders
completion of the delivery. A copy of the invoice/delivery order and the
signed copies will be sent to customers (customer email list to be maintained
? Reports - Delivery reports are available for operations managers to track the
? VES Temperature Sensor Tracking Services - This is an additional module for
real-time tracking of temperature control (via a GPS temperature tracking
device installed in the truck) trucks to prevent food waste and ensure food
VES is charged based on a monthly subscription by vehicles and by users. It is integrated with VTM and jobs received via VTM can be assigned and tracked automatically by VES.
All transactions and balances among the Company, its subsidiaries, the VIE and the VIE' subsidiaries have been eliminated upon consolidation.
Comparative VIE financials, are set forth below:
Net cash provided by (used in) operating activities 301,982 3,976,411 Net cash provided by (used in) investment activities (27,857 )
Net cash provided by (used in) financing activities $ (266,408 ) $ (3,974,127 )
Quantitative Metrics of the VIE, Shanghai Muliang Industry Co., Ltd.are set forth below:
For the six months ended June 30, 2022
Note 1 The investment refers to the acquisition of 100% shares of Viagoo Pte Ltd, paid in 1,011,000 shares on June 19, 2020, by the Company
Note 3 The intercompany balances of $8,815,769 between the WOFE and the VIE arising from the service fee income payable to the WOFE by the VIE; the intercompany balances do not include any loans between the WOFE and the VIE.
VIE Agreements that were entered to give Muliang Viagoo effective control over the VIE include:
Voting Rights Proxy Agreement and Irrevocable Power of Attorney
VIE Agreements that enables Muliang Viagoo to receive substantially all of the economic benefits from the VIE include:
Risks in relation to the VIE structure
? Discontinue or restrict the operations of any related-party transactions among
? Impose fines or other requirements on Muliang Viagoo's PRC subsidiaries or
? Require Muliang Viagoo's PRC subsidiaries or consolidated affiliated entities
to revise the relevant ownership structure or restructure operations; and/or;
? Restrict or prohibit Muliang Viagoo's use of the proceeds of the additional
public offering to finance Muliang Viagoo's business and operations in China;
? Discontinue or place restrictions or onerous conditions on Muliang Viagoo's
? Require Muliang Viagoo to undergo a costly and disruptive restructuring.
Management has determined that the adoption of ASC 606 did not impact the Company's previously reported financial statements in any prior period, nor did it result in a cumulative-effect adjustment to opening retained earnings.
? Recognize a right-of-use asset and a lease liability, initially measured at
the present value of the lease payments, in the statement of financial
? Recognize interest on the lease liability separately from amortization of the
right-of-use asset in the statement of comprehensive income
? Classify repayments of the principal portion of the lease liability within
financing activities and payments of interest on the lease liability and
variable lease payments within operating activities in the statement of cash
For operating leases, a lessee is required to do the following:
? Recognize a right-of-use asset and a lease liability, initially measured at
the present value of the lease payments, in the statement of financial
? Recognize a single lease cost, calculated so that the cost of the lease is
allocated over the lease term on a generally straight-line basis
? Classify all cash payments within operating activities in the statement of
? Provide the disclosures required by ASC 840 for all periods that continue to
be presented in accordance with ASC 840.
? Recognize the effects of applying ASC 842 as a cumulative-effect adjustment to
The management has reviewed the accounting pronouncements and adopted the new standard on January 1, 2019, using the modified retrospective method of adoption.
We are principally engaged in the organic fertilizer manufacture and distribution business in the PRC, which account for 87.1% of our total revenue for the six months ended June 30, 2022.
Results of Operations for the Three Months Ended June 30, 2022 and 2021
Our revenue for logistic also decreased from $226,185 for the three months ended June 30, 2021, to $95,885 for the three months ended June 30, 2022, which represented a decrease of $130,300, or approximately 57.6%.
Our net income was $298,437 for the three months ended June 30, 2022, compared with a net income of $538,525 for the three months ended June 30, 2021, representing a decrease of $240,088.
Results of Operations for the Six Months Ended June 30, 2022 and 2021
Our revenue for logistic also decreased from $410,338 for the six months ended June 30, 2021, to $450,752 for the six months ended June 30, 2022, which represented an increase of $40,414, or approximately 9.8%.
Our net income was $760,612 for the six months ended June 30, 2022, compared with a net income of $799,029 for the six months ended June 30, 2021, representing a decrease of $38,417.
We have financed our operations over the six months ended June 30, 2022 and 2021 primarily through proceeds from net cash inflow from operations.
The components of cash flows are discussed below:
Net cash provided by (used in) operating activities $ 121,069 $ 3,618,813 Net cash provided by (used in) investing activities (27,857 )
Cash Provided by Operating Activities
Cash used in Investing Activities
Cash Used in Financing Activities
Contractual Commitments and Commitments for Capital Expenditure
There were no non-cancelable commitments for capital expenditure as of June 30, 2022.
© Edgar Online, source Glimpses