EOS INC. [EOSS] Filings

10-Q 1 eoss-20230630.htm FORM 10-Q EOS INC.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED: June 30, 2023

TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

FOR THE TRANSITION PERIOD FROM __________ TO __________

Commission File Number: 000-55661

EOS Inc.

(Exact name of registrant as specified in its charter)

Nevada		30-0873246
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

4F-1, No.5, Qingdao E. Rd

., Zhongzheng Dist.,

Taipei City 100008 Taiwan (Republic of China)

(Address of principal executive offices, Zip Code)

886

-2586-8300

(Registrant’s telephone number, including area code)

	N/A
	(Former name or former address, if changed since last report)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common		EOSS		OTC Pink

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was require

d t

o file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes

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

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated f

iler

,” “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	x	Smaller reporting company	x
		Emerging growth company	x

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 Exchange Act). Yes

s of August 1

2023,

he number of shares of registrant’s common stock outstanding is 183,781,560.

EOS, Inc.

Table of Contents

PART I - FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)	F-1

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operation	3

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	6

Item 4.	Controls and Procedures	6

PART II - OTHER INFORMATION

Item 1.	Legal Proceedings	6

Item 1A.	Risk Factors	7

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	7

Item 3.	Defaults Upon Senior Securities	7

Item 4.	Mine Safety Disclosures	7

Item 5.	Other Information	7

Item 6.	Exhibits	7

SIGNATURES		8

PART I — FINANCIAL INFORMAT

ION

Item 1. Financial Statements.

The following unaudited interim condensed consolidated financial statements of EOS Inc. are included in this Quarterly Report on Form 10

-Q:

INDEX TO FINANCIAL STATEMENT

Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 (unaudited)	F-2

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, 2023 and 2022 (unaudited)	F-3

Condensed Consolidated Statements of Changes in Stockholders’ Equity for the six months ended June 30, 2023 and 2022 (unaudited)	F-4

Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022 (unaudited)	F-5

Notes to Condensed Consolidated Financial Statements for the six months ended June 30, 2023 and 2022 (unaudited)	F-6

F-1

EOS, INC. AND SUBSIDIARIES

Condensed

Consolidated Balance Sheets

As of June 30, 2023 and December 31, 2022

Unaudited

	June 30,			December 31,
	2023			2022
ASSETS
Current Assets
Cash and cash equivalents	$	26,600		$	18,169
Accounts receivable		129,698			160,253
Inventory, net		84,658			46,196
Advances to suppliers		159,422			166,594
Security deposits		-			6,608
Prepaid expenses and other current assets		15,647			28,096
Total Current Assets		416,025			425,916
Non-Current Assets
Property, plant and equipment, net		5,283			4,692
Other non-current assets		192			-
Operating lease right of use asset		96,579			115,884
Loans receivable from related parties, net		-			-
Total Non-Current Assets		102,054			120,576
Total Assets		518,079			546,492

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Other payable and accrued expenses		51,125			73,352
Due to shareholders		505,709			277,080
Income taxes payable		47,764			49,074
Other current liabilities		875,116			750,000
Operating lease liabilities - current		35,138			48,231
Current portion of long-term loan payables		58,941			68,497
Total Current Liabilities		1,573,793			1,266,234
Non-Current Liabilities
Long-term loan payables		86,644			116,012
Operating lease liabilities - non-current		61,441			80,538
Total Non-Current Liabilities		148,085			196,550
Total Liabilities		1,721,878			1,462,784

Commitments and Contingencies		-			-

Shareholders’ Equity
Preferred stock ($0.001 par value, 5,000,000 shares authorized, 1,500,000 sha res issued and outstanding as of June 30, 2023 and December 31, 2022, respectively)		1,500			1,500
Common stock ($0.001 par value; 575,000,000 shares authorized, 183,781,560 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively)		183,781			183,781
Additional paid in capital		67,249			67,249
Deferred stock compensation		(40,674	)		(40,674	)
Retained earnings		(1,456,128	)		(1,165,665	)
Accumulated other comprehensive loss		50,349			42,964
Total equity attributable to EOS, Inc.		(1,193,923	)		(910,845	)
Non-controlling interest		(9,876	)		(5,447	)
Total Equity		(1,203,799	)		(916,292	)
Total Liabilities and Shareholders’ Equity	$	518,079		$	546,492

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

F-2

EOS, INC. AND SUBSIDIARIES

Con

densed Consolidated Statements of Operations and Comprehensive Income (Loss)

For the Three and Six Months Ended June 30, 2023 and 2022

Unaudited

	Three Months Ended			Three Months Ended			Six Months Ended			Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2023			2022			2023			2022
Net sales	$	82,426		$	99,121		$	253,505		$	132,185
Cost of sales		28,530			42,224			86,703			48,899
Gross profit		53,896			56,897			166,802			83,286
Selling, general and administrative expenses		218,537			210,571			460,863			440,654
Income (Loss) from operations		(164,641	)		(153,674	)		(294,061	)		(357,368	)
Other income (expense)
Interest income (expense)		(1,226	)		(789	)		(2,609	)		(1,669	)
Other income (expense)		759			7,370			1,425			4,865
Total other income (expense)		(467	)		6,581			(1,184	)		3,196
Loss before income tax provision		(165,108	)		(147,093	)		(295,245	)		(354,172	)
Income tax expenses (benefits)		-			(10,475	)		-			(10,475	)
Net Loss	$	(165,108	)	$	(136,618	)	$	(295,245	)	$	(343,697	)

Other Comprehensive Income (Loss):
Net income (loss) attributable to non-controlling interests	$	(2,882	)		(2,071	)		(4,782	)		(6,162	)
Net income (loss) attributable to EOS and subsidiaries		(162,226	)		(134,547	)		(290,463	)		(337,535	)
Foreign currency translation adjustment, net of tax		8,532			(41,696	)		7,738			(86,619	)
Comprehensive loss	$	(156,576	)	$	(178,314	)	$	(287,507	)	$	(430,316	)

Net loss per share:
Basic and diluted	$	(0.001	)	$	(0.001	)	$	(0.002	)	$	(0.002	)
Weighted average number of common shares:
Basic and diluted		183,781,560			181,821,311			183,781,560			180,948,133

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

F-3

EOS, INC. AND SUBSIDIARIES

Con

densed Consolidated Statements of Changes in Stockholders’ Equity

For the Six Months Ended June 30, 2023 and 2022

Unaudited

																	Accumulated			Equity
	Common Stock				Preferred Stock				Deferred			Additional					other			attributable			Non-
	Number of				Number of				Stock			Paid-in		Retained			Comprehensive			to			Controlling			Total
	Shares		Amount		Shares		Amount		Compensation			Capital		Earnings			Income (Loss)			EOS, Inc.			interest			Equity
Balance at December 31, 2021		180,065,254		180,065	$	1,500,000		1,500	$	-		$	29,060	$	722,925		$	133,056		$	1,066,606		$	19,562		$	1,086,168
Foreign currency translation adjustment		-		-		-		-		-			-		-			(44,080	)		(44,080	)		(843	)		(44,923	)
Net loss		-		-		-		-		-			-		(202,988	)		-			(202,988	)		(4,091	)		(207,079	)
Balance at March 31, 2022		180,065,254		180,065		1,500,000		1,500		-			29,060		519,937			88,976			819,538			14,628			834,166
Share issued for compensation		115,000		115		-		-		-			1,116		-			-			1,231			-			1,231
Deferred compensation expense relating to issuance of restricted common stock		3,601,306		3,601		-		-		(38,534	)		34,933		-			-			-			-			-
Deferred compensation expense relating to issuance of warrant		-		-		-		-		(2,140	)		2,140		-			-			-			-			-
Foreign currency translation adjustment		-		-		-		-		-			-		-			(40,980	)		(40,980	)		(714	)		(41,694	)
Net loss		-		-		-		-		-			-		(134,547	)		-			(134,547	)		(2,071	)		(136,618	)
Balance at June 30, 2022		183,781,560		183,781		1,500,000		1,500		(40,674	)		67,249		385,390			47,996			645,242			11,843			657,085


Balance at December 31, 2022		183,781,560		183,781		1,500,000		1,500		(40,674	)		67,249		(1,165,665	)		42,964			(910,845	)		(5,447	)		(916,292	)
Foreign currency translation adjustment		-		-

EOS INC. [EOSS] Filings
10-Q	[2023-08-14]
10-Q	[2023-05-16]
10-K	[2023-03-31]
10-Q	[2022-11-14]
10-Q	[2022-08-31]
10-Q	[2022-05-23]
10-K	[2022-04-18]
10-Q	[2021-11-19]
10-Q	[2021-08-16]
10-Q	[2021-05-18]
10-K	[2021-04-15]
10-Q	[2021-01-25]
10-Q	[2020-08-21]
10-Q	[2020-06-25]
10-K	[2020-04-16]
10-Q	[2019-11-14]
S-1	[2019-10-11]
10-Q	[2019-08-14]
10-Q	[2019-05-21]
10-K	[2019-04-15]
10-Q	[2018-11-14]
10-Q	[2018-08-14]
10-Q	[2018-05-15]
10-K	[2018-04-04]
10-Q	[2017-11-13]
10-Q	[2017-08-14]
10-Q	[2017-05-15]
10-K	[2017-04-14]
10-Q	[2016-11-14]
10-Q	[2016-08-15]
10-Q	[2016-05-13]
10-K	[2016-03-23]
10-Q	[2016-01-08]
S-1	[2015-09-10]