10-Q 1 eoss-20240331.htm FORM 10-Q EOS INC.
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form 10-Q
 
(Mark One)
 
x
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
FOR THE QUARTERLY PERIOD ENDED:
March 31
, 2024
 
 
¨
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.)
 
2F., No. 157, Sec. 2, Nanjing E. Rd., Zhongshan Dist.,
Taipei City 104075 Taiwan (Republic of China)
(Address of principal executive offices, Zip Code)
 
+8862-2586-8300
(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
None
 
None
 
None
 
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 required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes 
x
 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
x
  No 
¨
 
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 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
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 
¨
 No 
x
 
As of
May
20
202
4
, the number of shares of registrant’s common stock outstanding is 604,781,560.

 
 
EOS, Inc. 
 
Table of Contents
 
 
2
P
ART I — FINANCIAL INFORMATION
 
I
tem 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
 
 
F-1
 
EOS, INC. AND SUBSIDIARIES
Condensed
 
C
onsolidated Balance Sheets
As of March 31, 2024 and December 31, 2023
(In U.S. Dollars, except share data or otherwise stated)
Unaudited
 
 
 
March 31,
 
 
December 31,
 
 
 
20
24
 
 
202
3
 
ASSETS
 
 
 
 
 
 
 
 
Current Assets
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
64,506
 
 
$
14,307
 
Accounts receivable
 
 
51,424
 
 
 
224,590
 
Inventory, net
 
 
46,837
 
 
 
79,482
 
Advances to suppliers
 
 
164,098
 
 
 
161,179
 
Security deposits
 
 
76
 
 
 
3,802
 
Prepaid expenses and other current assets
 
 
3,703
 
 
 
3,959
 
Total Current Assets
 
$
330,644
 
 
 
487,319
 
Non-Current Assets
 
 
 
 
 
 
 
  
Property, plant and equipment, net
 
$
5,413
 
 
$
5,660
 
Operating lease right of use asset
 
 
3,393
 
 
 
4,192
 
 
 
 
 
 
 
 
 
 
Total Non-Current Assets
 
$
8,806
 
 
$
9,852
 
Total Assets
 
$
339,450
 
 
$
497,171
 
LIABILITIES AN
D
SHAREHOLDERS’
 
DEFICIT
 
 
 
 
 
 
 
 
 
Current Liabilities
 
 
 
 
 
 
 
 
Accounts payable
 
$
-
 
 
$
9,761
 
Other payable and accrued expenses
 
 
206,640
 
 
 
309,103
 
Due to shareholders
 
 
8,513
 
 
 
74,065
 
Income taxes payable
 
 
43,810
 
 
 
45,318
 
Other current liabilities
 
 
1,062,500
 
 
 
1,000,000
 
Operating lease liabilities - current
 
 
2,260
 
 
 
2,818
 
Current portion of long-term loan payables
 
 
49,876
 
 
 
53,165
 
Total Current Liabilities
 
$
1,373,599
 
 
$
1,494,230
 
Non-Current Liabilities
 
 
 
 
 
 
 
 
Long-term loan payables
 
$
50,976
 
 
$
65,210
 
Operating lease liabilities - non-current
 
 
1,133
 
 
 
1,374
 
Total Non-Current Liabilities
 
$
52,109
 
 
$
66,584
 
Total Liabilities
 
$
1,425,708
 
 
$
1,560,814
 
Commitments and Contingencies
 
 
 
 
 
 
Shareholders’
Deficit
 
 
 
 
 
 
 
 

Preferred stock ($
0.001
par value, 5,000,000 shares authorized, 1,500,000 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively)
 
$
1,500

 
$
1,500
 
Common stock ($0.001 par value;
1,000,000,000
shares authorized, 604,781,560 shares issued and outstanding as of March 31, 2024 and December 31, 2
0
23, respectively)
 
 
604,781
 
 
 
604,781
 
Additional paid in capital
 
 
175,268
 
 
 
175,268
 
Deferred stock compensation
 
 
(40,674
)
 
 
(40,674
)
Accumulated loss
 
 
(1,845,903
)
 
 
(1,802,695
)
Accumulated other comprehensive income (loss)
 
 
18,770
 
  
 
  
 
  
(1,823
)
Total
S
hareholders’ Deficit
 
 
 
$
(1,086,258
)
 
$
(1,063,643
)
Total Liabilities and Shareholders’
Deficit
 
 
$
339,450
 
 
$
497,171
 
 
 

F-2
 
 
 
EOS, INC. AND SUBSIDIARIES
Condensed
 
C
onsolidated Statements of Income and Comprehensive 
Loss
For the Three Months Ended March 31, 2024 and 202
3
(In U.S. Dollars, except share data
or
otherwise stated)
Unaudited
 
 
 
Three
Months Ended
 
 
Three Months Ended
 
 
 
March 31,
 
 
March 31,
 
 
 
202
4
 
 
202
3
 
Net sales
 
$
54,124
 
 
$
171,079
 
Cost of sales
 
 
(50,506
)
 
 
(58,173
)
Gross profit 
 
 
3,618
 
 
112,906
 
Selling, general and administrative expenses
 
 
(205,644
)
 
 
(242,326
)
Loss from operations
 
 
(202,026
)
 
 
(129,420
)
Other income (expense)
 
 
 
 
 
 
 
 
Interest expense
 
 
(832
)
 
 
(1,383
)
Other income
 
 
159,650
 
 
 
666
 
Total other income (expense)
 
 
158,818
 
 
 
(717
)
Net loss before income tax
 
 
(43,208
)
 
 
(130,137
)
Income tax expense
 
 
-
 
 
 
-
 
Net Loss
 
$
(43,208
)
 
$
(130,137
)
Other Comprehensive Loss:
 
 
 
 
 
 
 
 
Net loss attributable to non-controlling interests
 
 
-
 
 
 
(1,900
)
Net loss attributable to EOS and subsidiaries
 
 
(43,208
)
 
 
(128,237
)
Foreign currency translation adjustment, net of tax
 
 
20,593
 
 
(794
)
Comprehensive loss
 
$
(22,615
)
 
$
(130,931
)
Net loss per share:
 
 
 
 
 
 
 
 
Basic and diluted
 
 
(0.000
)
 
 
(0.001
)
Weighted average number of common shares:
 
 
 
 
 
 
 
 
Basic and diluted
 
 
323,047,313
 
 
 
183,781,560
 
 
 
F-3
 
 
 
EOS, INC. AND SUBSIDIARIES
Condensed
 
C
onsolidated Statements of Changes in Shareholders’ Equity
For the Three Months Ended March 31, 2024 and 202
3
(In U.S. Dollars, except share data or otherwise stated)
Unaudited
 
 
 
Common
Stock
 
 
Preferred
Stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of
Shares
 
 
Amount
 
 
Number of
Shares
 
 
Amount
 
 
Deferred
Stock
Compensation
 
 
 
 
Additional
Paid-in
Capital
 
 
 
 
Accumulated
loss
 
 
 
 
Accumulated
other
Comprehensive
Income (Loss)
 

 
 
 

 
 
Equity
attributable
to
EOS, Inc.
 
 
 
 
Non-
Controlling
interest
 
 
 
 
Total
Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 202
2
 
 
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
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
  
  
  
-
 
 
 
-
 
 
 
-
 
 
 
(727
)
 
 
(727
)
 
 
(67
)
 
 
(794
)
Net loss
 
 
-
  
  
  
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
(128,237
)
 
 
 
 
 
 
(128,237
)
 
 
(1,900
)
 
 
(130,137
)
Balance at March 31, 2023
 
 
183,781,560
 
 
 
183,781
 
 
 
1,500,000
 
 
 
1,500
 
 
 
(40,674
)
 
 
67,249
 
 
 
(1,293,902
)
 
 
42,237
 
 
 
(1,039,809
)
  
  
(7,414
)
 
 
(1,047,223
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2023