0001477932-21-008398 | 20-F/A | XBRL Viewer | China Liberal Education Holdings LTD

Cover	12 Months Ended
Cover	Dec. 31, 2020 shares
Cover [Abstract]
Entity Registrant Name	China Liberal Education Holdings Ltd,
Entity Central Index Key	0001775085
Document Type	20-F/A
Amendment Flag	true
Amendment Description	Amendment
Entity Voluntary Filers	No
Current Fiscal Year End Date	--12-31
Entity Well Known Seasoned Issuer	No
Entity Shell Company	false
Entity Emerging Growth Company	true
Entity Current Reporting Status	Yes
Document Period End Date	Dec. 31, 2020
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2020
Entity Ex Transition Period	false
Entity Common Stock Shares Outstanding	6,333,333
Document Annual Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Document Shell Company Report	false

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2020	Dec. 31, 2019
CURRENT ASSETS
Cash	$ 5,007,449	$ 1,702,279
Accounts receivable, net	915,618	518,191
Contract receivable, net current	4,448,946	1,639,213
Advance to suppliers	94,648	836,766
Deferred initial public offering costs	0	649,451
Due from a related party	1,439,080	0
Inventory, net	196,326	0
Prepaid expenses and other current assets	223,387	339,260
TOTAL CURRENT ASSETS	12,325,454	5,685,160
Property and equipment, net	49,148	77,782
Operating lease right-of-use lease assets, net	136,695	18,372
Contract receivable, net, non current	262,617	1,071,826
TOTAL NON-CURRENT ASSETS	448,460	1,167,980
TOTAL ASSETS	12,773,914	6,853,140
CURRENT LIABILITIES
Accounts payable	125,223	51,071
Deferred revenue	154,927	562,056
Taxes payable	633,651	404,453
Due to related parties	0	461,633
Operating lease liabilities, current	90,253	10,326
Accrued expenses and other current liabilities	105,829	178,276
TOTAL CURRENT LIABILITIES	1,109,883	1,667,815
Operating lease liabilities, non-current	23,102	5,350
TOTAL LIABILITIES	1,132,985	1,673,165
SHAREHOLDERS' EQUITY
Ordinary shares $0.001 par value, 50,000,000 shares authorized, 6,333,333 and 5,000,000 shares issued and outstanding at December 31, 2020 and 2019, respectively	6,333	5,000
Additional paid in capital	9,358,487	4,579,116
Statutory reserve	551,146	379,952
Retained earnings	1,565,817	528,315
Accumulated other comprehensive income (loss)	159,146	(312,408)
Total shareholders' equity	11,640,929	5,179,975
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 12,773,914	$ 6,853,140

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2020	Dec. 31, 2019
Stockholders' Equity (Deficit)
Ordinary shares par value	$ 0.001	$ 0.001
Ordinary shares authorized	50,000,000	50,000,000
Ordinary shares issued	6,333,333	5,000,000
Ordinary shares outstanding	6,333,333	5,000,000

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
REVENUE, NET	$ 5,023,099	$ 5,255,810	$ 4,808,993
COST OF REVENUE	2,157,033	3,360,694	2,702,297
GROSS PROFIT	2,866,066	1,895,116	2,106,696
OPERATING EXPENSES
Selling expenses	229,656	593,215	704,060
General and administrative expenses	1,199,690	783,241	579,500
Total operating expenses	1,429,346	1,376,456	1,283,560
INCOME FROM OPERATIONS	1,436,720	518,660	823,136
OTHER INCOME
Interest income	101,257	6,120	88,926
Other (expense) income, net	(26,035)	69,162	180,191
Total other income, net	75,222	75,282	269,117
INCOME BEFORE INCOME TAXES	1,511,942	593,942	1,092,253
INCOME TAX PROVISION	303,246	156,038	167,813
NET INCOME	1,208,696	437,904	924,440
Less: net income attributable to non-controlling interest	0	0	81,779
NET INCOME ATTRIBUTABLE TO CHINA LIBERAL EDUCATION HOLDINGS LIMITED	1,208,696	437,904	842,661
OTHER COMPREHENSIVE INCOME (LOSS)
Total foreign currency translation adjustment	471,554	(78,171)	(260,983)
TOTAL COMPREHENSIVE INCOME	1,680,250	359,733	663,457
Less: comprehensive income (loss) attributable to non-controlling interest	0	0	(22,871)
COMPREHENSIVE INCOME ATTRIBUTABLE TO CHINA LIBERAL EDUCATION HOLDINGS LIMITED	$ 1,680,250	$ 359,733	$ 686,328
EARNINGS PER SHARE
Basic and diluted	$ 0.21	$ 0.09	$ 0.17
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
Basic and diluted	5,852,459	5,000,000	5,000,000

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY - USD ($)	Total	Total shareholders' equity	Statutory reserve	Common Stock	Additional Paid-in Capital	Accumulated other comprehensive income (loss)	Non-controlling Interest	Retained Earnings
Balance, shares at Dec. 31, 2017				5,000,000
Balance, amount at Dec. 31, 2017	$ 4,610,993	$ 4,151,326	$ 201,468	$ 5,000	$ 1,643,527	$ 26,746	$ 459,667	$ 2,274,585
Capital restructuring		0	0	0	2,935,589	0	0	(2,935,589)
Appropriation to statutory reserve			92,690					(92,690)
Net income	924,440	842,661					81,779	842,661
Foreign currency translation adjustment	(283,854)	(260,983)				(260,983)	(22,871)
Acquisition of 8.8228% non-controlling interest	453,669
Balance, amount at Dec. 31, 2018	5,251,579	4,733,004	294,158	$ 5,000	4,579,116	(234,237)	518,575	88,967
Balance, shares at Dec. 31, 2018				5,000,000
Appropriation to statutory reserve			85,794					(85,794)
Net income	437,904	437,904						437,904
Foreign currency translation adjustment	(55,839)	(78,171)				(78,171)	22,332
Acquisition of 8.8228% non-controlling interest	(453,669)	87,238	0	$ 0	0	0	(540,907)	87,238
Balance, amount at Dec. 31, 2019	5,179,975	5,179,975	379,952	$ 5,000	4,579,116	(312,408)	0	528,315
Balance, shares at Dec. 31, 2019				5,000,000
Appropriation to statutory reserve			171,194				0	(171,194)
Net income	1,208,696	1,208,696						1,208,696
Foreign currency translation adjustment	471,554	471,554				471,554	0	0
Issuance of ordinary shares in initial public offering, net, shares				1,333,333
Issuance of ordinary shares in initial public offering, net, amount	4,780,704	4,780,704		$ 1,333	4,779,371		0	0
Balance, amount at Dec. 31, 2020	$ 11,640,929	$ 11,640,929	$ 551,146	$ 6,333	$ 9,358,487	$ 159,146	$ 0	$ 1,565,817
Balance, shares at Dec. 31, 2020				6,333,333

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References + Details

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities
Net income	$ 1,208,696	$ 437,904	$ 924,440
Adjusted to reconcile net income to cash provided by (used in) operating activities
Depreciation and amortization	15,891	40,038	45,347
Non-cash lease expenses	41,524	2,533	0
Loss from disposal of property and equipment	37,468	0	0
Changes in operating assets and liabilities:
Accounts receivable, net	(343,165)	306,781	(243,769)
Contract receivable, net	(719,615)	(176,968)	(1,848,073)
Advance to suppliers	756,846	(824,141)	1,484,014
Deferred initial public offering costs	0	(650,092)	0
Due from a related party	0	72,371	(75,571)
Inventory, net	(185,985)	0	0
Prepaid expenses and other current assets	753,405	(57,406)	(130,282)
Accounts payable	66,961	(69,500)	(42,786)
Deferred revenue	(421,834)	417,987	53,000
Taxes payable	191,373	164,879	78,988
Operating lease liabilities	(60,907)	(5,252)	0
Accrued expenses and other current liabilities	(80,097)	2,434	16,507
Net cash provided by (used in) operating activities	1,260,561	(338,432)	261,816
Cash flows from investing activities
Purchase of property and equipment	(21,230)	(17,738)	(83,515)
Advance to a related party	(1,374,895)
Acquisition of 8.8228% non-controlling interest in China Liberal Beijing	0	(453,669)	0
Repayment of loan receivable	0	0	1,964,844
Net cash (used in) provided by investing activities	(1,396,125)	(471,407)	1,881,329
Cash flows from financing activities
Repayment of due to a related party	(1,439,799)	0	0
Net proceeds from initial public offering - stock issuance	4,780,704	0	0
Proceeds from related party borrowings	0	439,193	8,094
Net cash provided by financing activities	3,340,905	439,193	8,094
Effect of changes of foreign exchange rates on cash	99,829	(4,241)	(82,043)
Net decrease (increase) in cash	3,305,170	(374,887)	2,069,196
Cash, beginning of year	1,702,279	2,077,166	7,970
Cash, end of year	5,007,449	1,702,279	2,077,166
Supplemental disclosure of cash flow information
Cash paid for interest expense	2,697	0	0
Cash paid for income tax	20,775	18,657	79,830
Supplemental disclosure of non-cash investing and financing activities
Transfer of non-controlling interest	0	87,238	0
Right-of-use assets obtained in exchange for operating lease obligations	180,528	21,062	0
Capital restructuring	$ 0	$ 0	$ 2,935,589

ORGANIZATION AND BUSINESS DESCRIPTION

12 Months Ended

Dec. 31, 2020

ORGANIZATION AND BUSINESS DESCRIPTION

NOTE 1 - ORGANIZATION AND BUSINESS DESCRIPTION

China Liberal Education Holdings Limited (“China Liberal” or the “Company”) was incorporated under the laws of the Cayman Islands on February 25, 2019 as an exempted company with limited liability.

China Liberal owns 100% equity interest of Yi Xin BVI International Investment Limited (“Yi Xin BVI”), a business company incorporated under the laws of the British Virgin Islands (“BVI”) on October 19, 2010.

China Liberal Beijing Education Group Co., Limited (“Boya Hong Kong”), formerly known as Haier International Investment Holding Limited, was incorporated in accordance with the laws and regulations of Hong Kong on May 11, 2011, and changed to its current name on July 19, 2016. Yi Xin BVI owns 100% equity interest in Boya Hong Kong.

China Liberal, Yi Xin BVI and Boya Hong Kong are currently not engaging in any active business operations and are merely acting as holding companies.

China Liberal (Beijing) Education Technology Co., Ltd. (“China Liberal Beijing”) was formed on August 8, 2011, as a Wholly Foreign-Owned Enterprise (“WOFE”) in the People’s Republic of China (“PRC”), with the registered capital of RMB33.5 million (approximately $5.1 million). Through December 31, 2018, Boya Hong Kong owned 91.1772% ownership interest in China Liberal Beijing, with the remaining 8.8228% ownership interest owned by five individual shareholders. On February 1, 2019, Boya Hong Kong entered into share transfer agreements with each of the non-controlling shareholders of China Liberal Beijing and completed the acquisition of the 8.8228% non-controlling interest in China Liberal Beijing, for a total price of RMB2.95 million (approximately $453,669). The total value of the non-controlling interest amounted to $540,907 as of the acquisition date (see Note 11). The Company borrowed cash from a related party to make this acquisition payment (see Note 8). After this transaction, China Liberal Beijing became a 100% owned subsidiary of Boya Hong Kong.

The Company, through its wholly-owned subsidiaries, is primarily engaged in providing educational services in the People’s Republic of China (the “PRC”) under the “China Liberal” brand. The Company offers a wide range of educational services and programs to customers, consisting primarily of Sino-foreign Jointly Managed Academic Programs, sales of textbooks and course material, Overseas Study Consulting Services and technological consulting services provided for targeted Chinese universities / colleges to help them improve their data management system and to optimize their teaching and operating environment (see Note 2). In late 2019, the Company also started to provide tailored job readiness training services to graduating students from the appropriate partner schools so that such students would be better equipped to serve the employer at their respective job positions.

Reorganization

A reorganization of the legal structure of the Company (“Reorganization”) was completed on March 25, 2019. The reorganization involved the incorporation of China Liberal, and the transfer of the 100% equity interest of Yi Xin BVI to China Liberal. Consequently, China Liberal became the ultimate holding company of all other entities mentioned above.

The Reorganization has been accounted for as a recapitalization among entities under common control since the same controlling shareholders controlled all these entities before and after the Reorganization. The consolidation of the Company and its subsidiaries has been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements. Results of operations for the periods presented comprise those of the previously separate entities combined from the beginning of the period to the end of the period, eliminating the effects of intra-entity transactions.

Initial Public Offering

On May 12, 2020, the Company completed its initial public offering (“IPO”) of 1,333,333 common shares at a public offering price of $6.00 per share. The gross proceeds were $8 million before deducting placement agents’ commissions and other offering expenses, resulting in net proceeds of approximately $4.8 million. In connection with the offering, the Company’s common shares began trading on the NASDAQ Global Market under the symbol “CLEU.”

Details of the subsidiaries of the Company as of December 31, 2020 were set out below:

Name of Entity	Date of Incorporation	Place of Incorporation	% of Ownership	Principal Activities
China Liberal	February 25, 2019	Cayman Islands	Parent, 100%	Investment holding

Yi Xin BVI	October 19, 2010	BVI	100%	Investment holding

Boya Hong Kong	May 11, 2011	Hong Kong	100%	Investment holding

China Liberal Beijing	August 8, 2011	Beijing, PRC	100%	Education service provider

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of consolidation

The accompanying consolidated financial statements include the financial statements of China Liberal, Yi Xin BVI, Boya Hong Kong and China Liberal Beijing. All inter-company balances and transactions are eliminated upon consolidation.

Non-controlling interest and accounting for changes in ownership

Non-controlling interests represented five minority shareholders’ aggregate 8.8228% ownership interest in China Liberal Beijing as of December 31, 2018. The non-controlling interests are presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Non-controlling interests in the results of the Company are presented on the face of the consolidated statements of income and comprehensive income as an allocation of the total income for the year between non-controlling interest holders and the shareholders of the Company. On February 1, 2019, Boya Hong Kong entered into share transfer agreements with each of the non-controlling shareholders of China Liberal Beijing and completed the acquisition of the 8.8228% non-controlling interest in China Liberal Beijing, for a total price of RMB 2.95 million (approximately $453,669). After this transaction, China Liberal Beijing became a 100% owned subsidiary of Boya Hong Kong. In accordance with ASC 810 “Consolidation,” changes in a parent’s ownership while the parent retains its controlling financial interest in its subsidiary should be accounted for as an equity transaction.

Uses of estimates

In preparing the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), management makes 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. These estimates are based on information as of the date of the consolidated financial statements. Significant estimates required to be made by management include, but are not limited to, the valuation of accounts receivable and contracts receivable, advances to suppliers, valuation allowance for deferred tax assets, provision necessary for contingent liabilities and revenue recognition. Actual results could differ from those estimates.

Risks and Uncertainties

The main operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company’s results may be adversely affected by changes in the political, regulatory and social conditions in the PRC. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations including its organization and structure disclosed in Note 1, such experience may not be indicative of future results.

The Company’s business, financial condition and results of operations may also be negatively impacted by risks related to natural disasters, extreme weather conditions, health epidemics and other catastrophic incidents, which could significantly disrupt the Company’s operations.

The Company’s operations may be further affected by the ongoing outbreak of COVID-19 which in March 2020, had been declared as a pandemic by the World Health Organization. The Company’s revenue from Sino-foreign jointly managed academic programs was not significantly impacted because the Company has been providing distance teaching services to students and no dropout has been reported to the Company during the temporary school closure period from late December 2019 to the reopening of schools in May 2020. However, due the COVID-19 impact, the internal payment processes of the partnering schools were temporarily delayed by three to six months. As a result, the Company and these partnering schools mutually agreed to extend the 2020 academic school year tuition payment term from around November 2020 to the first half of 2021. The Company does not believe such delay will result in any collectability risk and the entire tuition receivable balance is expected to be fully received but only slightly later than a typical operating year. Furthermore, this temporary delay in tuition payment does not represent a change in the Company’s cooperation model with these partnering schools and the Company does not expect to incur further tuition payment delays in the future. The December 31, 2020 outstanding tuition receivable from partnering schools has been fully collected as of the date of this report. Most recently, the Company increased the number of students enrolled in its Sino-foreign jointly managed education programs with two colleges during the 2021 academic school year starting from the 2020 fall semester and taking this into consideration, the average enrolled number of students increased by 22.1% in 2020 as compared to 2019.

As the Chinese universities/colleges have gradually reopened since May 2020, the Company has substantially completed the delayed “smart campus” projects during the summer 2020. Also, due to the international travel bans since December 2019, students were not able to pursue their overseas education in Europe, Australia, the United States and other foreign countries, which in turn reduced the number of students for the Company’s one-on-one consulting services provided within our overseas study consulting services revenue stream. Total number of students for our one-on-one study abroad consulting services decreased by about 41% from 2019 to 2020, and the ongoing uncertainties associated with the COVID-19 may continue to restrict students from pursuing their overseas education in the near terms. These services represented approximately 2.6% and 10% of total revenue in 2020 and 2019, respectively.

Although the pandemic did not significant impact the two major lines of business in fiscal year 2020 , the continued uncertainties associated with COVID 19 may negatively impact the Company’s revenue and cash flows as students may be discouraged by the restrictions imposed by major overseas education destination countries leading to significant decrease in the demand of our overseas study consulting services and even our Sino-foreign Jointly Managed Academic Programs. Further, a resurgence could negatively affect the execution of additional smart campus contracts with Chinese universities/colleges, the collection of the payments from previous smart campus projects and the market development of the newly launched visualization solutions and technology consulting services to non-university business.

See Note 10 for customer concentrations.

Cash

Cash includes currency on hand and deposits held by banks that can be added or withdrawn without limitation. The Company maintains most of its bank accounts in the PRC and Hong Kong. Cash maintained in banks within the People’s Republic of China of less than RMB0.5 million (equivalent to $70,550) per bank are covered by “deposit insurance regulation” promulgated by the State Council of the People’s Republic of China. Cash maintained in banks in Hong Kong of less than HKD0.5 million (equivalent to $64,488) per bank are covered by “deposit insurance scheme” oversee by a statutory body, Hong Kong Deposit Protection Board, established under the Deposit Protection Scheme Ordinance. As of December 31, 2020 and 2019, cash at bank in Hong Kong amounted to $3,401,817 and $172, respectively.

Accounts and contracts receivable, net

Accounts and contracts receivable are recorded net of allowance for uncollectible accounts.

The Company determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trend. The allowance is based on management’s best estimate of specific losses on individual exposures, as well as a provision on historical trends of collections. Actual amounts received may differ from management’s estimate of credit worthiness and the economic environment. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. As of December 31, 2020 and 2019, there was no allowance recorded as the Company considers all of the accounts receivable fully collectible.

The Company’s contracts receivable represents balance derived from the Technological Consulting Services for Smart Campus Solutions provided to Chinese universities / colleges, when the projects under the contracts have been completed and accepted by Chinese universities / colleges, but the balances are not yet due. Subsequent to year end, in March 2021, the payment terms of FMP were revised, the due date of the balance of RMB14.2 million (approximately $2.2 million) with original due date prior to December 31, 2020 was extended to March 31, 2021 and was fully collected by the revised due date. The due date for balance of RMB 2.5 million (approximately $0.4 million) of the contract receivable with original due date prior to December 31, 2020 was extended to June 30, 2021 and the due dates of the remaining balance of RMB 9.9 million (approximately $1.5 million) were not changed under the revised payment term. The Company had not incurred any bad debts with Chinese universities / colleges in the past and FMP has been paying its debts according to the revised payment plan and a significant portion has been collected by the filing date. These considerations together with management’s assessment of FMP’s ability and intent to repay has resulted in no allowance requirements on such outstanding contract receivable as of December 31, 2020 and 2019 (See Note 4).

Advances to suppliers

Advance to suppliers consists of balances paid to suppliers that have not been provided or received. The Company makes advance payment to suppliers for purchase of equipment and devices in order to undertake the “smart campus” consulting projects for customers. Advances to suppliers are short-term in nature and are reviewed periodically to determine whether their carrying value has become impaired. As of December 31, 2020 and 2019, there was no allowance recorded as the Company considers all of the advances to be fully realizable.

Deferred initial public offering (“IPO”) costs

The Company complies with the requirement of the ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A - “Expenses of Offering”. Deferred offering costs consist of underwriting, legal, and other expenses incurred through the balance sheet date that are directly related to the intended IPO. Deferred offering costs will be charged to shareholders’ equity upon the completion of the IPO. The Company completed its IPO on May 12, 2020, and accordingly, the December 31, 2019 capitalized deferred offering costs of $649,451 have been charged to shareholders’ equity.

Inventories

Inventories as of December 31, 2020 mainly consists of computer components to be sold within our Technological Consulting and Support Services revenue stream. Inventories are stated at the lower of cost or net realizable value. Costs include the cost of raw materials, freight, direct labor and related production overhead. The cost of inventories is calculated using the weighted average method. Any excess of the cost over the net realizable value of each item of inventories is recognized as a provision for diminution in the value of inventories.

Net realizable value is the estimated selling price in the normal course of business less any costs to complete and sell products. The Company evaluates inventories on a quarterly basis for its net realizable value adjustments, and reduces the carrying value of those inventories that are obsolete or in excess of the forecasted usage to their estimated net realizable value based on various factors including aging and future demand of each type of inventories. The Company did not record any inventory reserve as of December 31, 2020.

Lease

The Company adopted ASU 2016-02, “Leases” on January 1, 2019 and used the alternative transition approach which permits the effects of adoption to be applied at the effective date. The new standard provides a number of optional practical expedients in transition. The Company elected the ‘package of practical expedients’, which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. The Company also elected the short-term lease exemption and combining the lease and non-lease components practical expedients. The most significant impact upon adoption relates to the recognition of new Right-of-use (“ROU”) assets and lease liabilities on the Company’s balance sheet for office space operating leases. Upon adoption, the Company recognized additional operating liabilities of approximately $0.02 million, with corresponding ROU assets of the same amount based on the present value of the remaining rental payments under current leasing standards for existing operating leases.

Impairment of long-lived Assets

Long-lived assets with finite lives, primarily property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the estimated cash flows from the use of the asset and its eventual disposition below are the asset’s carrying value, then the asset is deemed to be impaired and written down to its fair value. There were no impairments of these assets as of December 31, 2020 and 2019.

Fair value of financial instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

·	Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

·	Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data.

·	Level 3 - inputs to the valuation methodology are unobservable.

Unless otherwise disclosed, the fair value of the Company’s financial instruments, including cash, accounts and contracts receivable, advances to suppliers, due from a related party, prepaid expenses and other current assets, accounts payable, deferred revenue, accrued expenses and other current liabilities, taxes payable and due to related parties, approximate the fair value of the respective assets and liabilities as of December 31, 2020 and 2019 based upon the short-term nature of the assets and liabilities. The fair value of the contracts receivable also approximates their carrying amount because the receivables were derived from fixed-price contracts and will be settled by cash.

Property and equipment

Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment is provided using the straight-line method over their expected useful lives, as follows:

		Useful life
Office equipment and furniture		5 years
Electronic equipment		5 years
Transportation vehicles		5-10 years
Leasehold improvement		Shorter of the lease term or estimated useful life

Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of income and other comprehensive income in other income or expenses.

Revenue recognition

The Company’s revenues are primarily derived from providing a wide range of educational services and programs to customers, as disclosed below. Revenues are reported net of all value added taxes.

On January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2014-09 Revenue from Contracts with Customers (“ASC Topic 606”) using the modified retrospective method.

To determine revenue recognition for contracts with customers, the Company performs the following five steps: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation.

The Company generates its revenue from the following sources:

Sino-foreign Jointly-Managed Academic Programs

The Company recommends and coordinates accredited international universities / colleges to forge partnerships with Chinese host universities / colleges to establish international education programs at degree level. Chinese host universities / colleges then utilize their existing administrative ability, campus classrooms and facilities to recruit Chinese students into such programs. The Company also selects, recruits and appoints qualified foreign faculty to teach major courses at selected Chinese host universities / colleges and bears all faculty related costs, provides continuing support to foreign faculty, develops and delivers major course content and materials to ensure teaching quality meeting international standards, and to optimize students’ learning outcome and to prepare them for further education overseas and help them with course credit conversion in the event that any student decides to pursue further study overseas. The Company actively supports and interacts with enrolled students throughout their programs to ensure successful program completion. The Company’s contracts with host Chinese universities / colleges are fixed price contracts, pursuant to which, the Company is to receive a fixed portion of tuition for services rendered. As a result of performing the above-mentioned services, the Company is entitled to receive 30% to 50% of such student tuitions depending on the universities / colleges and the jointly managed academic programs, which are collected first by Chinese host universities / colleges from enrolled students at the beginning of each academic school year, and then remitted to the Company.

With respect to Sino-foreign Jointly Managed Academic Programs, the Company is not involved in recruiting students, collecting refunding tuition when students dropout, all of which are handled by the host universities / colleges. The host universities / colleges normally offer tuition refund if a student drops out from school within the first month of each academic school year. Collected tuition fees become non-refundable after the one-month refund policy window. Historically, for students enrolled under the Sino-foreign Jointly Managed Academic Programs, the average student dropout rate was below 1%. The Company’s contracts with Chinese host universities / colleges provide that (1) the host universities / colleges will withhold the tuition collected from students for one to three months after the academic school year starts in September, and then remit the portion of tuition fees to the Company after the student headcounts have been finalized, and (2) the portion of tuition fee that the Company is entitled to receive is calculated based on the final actual number of students retained with the universities / colleges after any student dropout has been adjusted. Accordingly, any tuition refund has already been deducted by host universities / colleges before the Company receives its portion of the tuition fees. For accounting purposes, at the beginning of each academic school year, the Company initially accrues the estimated refund based on an historical 1% student dropout rate, and makes subsequent true-up adjustments after the final number of students retained with the host universities / colleges is determined. Such adjustments were immaterial for the years ended December 31, 2020, 2019 and 2018, respectively.

The Company’s contracts with Chinese host universities / colleges provide that foreign teachers assigned by the Company should be substituted, and teaching textbooks, course materials and curriculums should be adjusted in a timely manner in order to ensure a satisfactory teaching result. The Chinese host universities / colleges have the right to withhold the Company’s portion of the tuition if the Company does not take corrective action when the Company’s service deficiency is identified. Any costs related to teacher substitution, textbooks, course materials and curriculums adjustment should be borne by the Company. The Company maintains active communications with the host universities / colleges in order to obtain feedback on the quality of the services performed. Any service deficiency is being corrected and improved in a timely manner so as to achieve satisfactory long-term cooperation with the host universities / colleges. Historically, as a result of timely interaction with the host universities / colleges to address any service deficiency and to improve the teaching result, there were no estimable tuition withhold from the host universities / colleges that needs to be accrued. There were no complaints received from the host universities / colleges with respect to the Company’s services for the years ended December 31, 2020, 2019 and 2018 which required material adjustment to the amount of fees received by the Company.

The tuition fees received by the Company are initially recorded as deferred revenue and recognized ratably over applicable academic year as the Company’s performance obligations related to teaching, management and other supporting services are carried out over the whole academic year.

Sales of textbooks and course materials

In order to ensure the quality of the course content to meet international standards, the Company has developed and edited more than 16 English textbooks and course materials with emphasis on language training, and sells these textbooks and course materials to students enrolled under the Sino-foreign joint education programs.

Revenue from sales of textbooks and related course materials is recognized upon delivery of textbooks and course materials, which is when the risks and titles are transferred and the Company’s performance obligation is satisfied.

Overseas Study Consulting Service

The Company’s Overseas Study Consulting Services target those students who wish to study in foreign countries to enrich their learning experiences and to expand their horizon and employment possibilities. The Company’s overseas study consulting services are typically performed under one-on-one private tutoring model with duration of four to six months. The Company provides school information to help students make informed decisions about which institution and major to choose from, help them prepare for school application and admission; provides study plans, language training and test preparation courses to help students improve their foreign language ability and help them achieve higher scores in international admission and assessment tests. The Company also helps students on visa application and paperwork, and offers overseas extended services such as finding accommodation and travel assistance. In connection with these services, the Company collects an up-front fee based on the scope of consulting services requested by students. 90% of the consulting service fee collected is non-refundable, and is recognized ratably as revenue over the service period, while 10% of the consulting fee is refundable and is deferred and recognized as revenue when students are successfully admitted by foreign institution and student visas are granted.

Technological Consulting and Support Services

The Company’s technological consulting services utilize the advanced information technology such as cloud computing, mobile internet and big data analytics to provide total solutions to targeted Chinese universities / colleges in order to integrate and improve their teaching, research, student data management, storage and processing, and campus life services, and to optimize their teaching and operating environment and improve operational efficiency. Since late 2020, the Company also started to provide technical support services to business entities in addition to universities/ colleges to help customers to construct and establish multi-location video conference center and other technical solutions. The Company’s technological consulting and support service contracts are primarily on a fixed-price basis, which require the Company to perform services including project planning, project solution and design, data management application customization, installations of hardware equipment and components for digital classrooms and academic experiment centers or labs, integration of hardware and software application, and post-contract continuous maintenance support, based on the specific needs from each customer. Upon delivery of services, project completion inspection and customer acceptance are generally required. In the same contract, it may also include provisions that require the Company to provide post-contract maintenance support for a period ranging from several months to three years after customized solutions and services are delivered.

In addition, some of the Company’s technological consulting service contracts include a difference in timing of when control is, or is deemed to be, transferred and the collection of cash receipts, which are collected over the term of the service arrangement. The timing difference could result in a significant financing component for performance obligations. If a significant financing component is identified, the future cash flows included in the transaction price allocated to the performance obligations are discounted using a discount rate compared to a market-based borrowing rate specific to both the customer and terms of the contract. The resulting present value of the allocated future cash flows is recorded as revenue while the discount amount is considered to be the significant financing component. Future cash flows received from the customer related to the performance obligations are bifurcated between principal repayment of the receivable and the related imputed interest income related to customer financing. The interest income is recorded as financing income within the consolidated statements of income and comprehensive income as providing financing to the customers is a core component under such contracts.

We evaluate “smart campus” solution service contracts and determines whether these contracts contain multiple performance obligations. A performance obligation is a promise to transfer to the customer either (1) a good or service (or a bundle of goods or services) that is distinct; or (2) a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer. Performance obligations in the agreements are identified based on the goods and services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the services or goods is separately identifiable from other promises in the contract.

We determine “smart campus” solution and application customization service, installations of hardware and software components, and post-contract continuous maintenance support, as separate performance obligations in the same fixed-fee contract, because our promise to transfer each of these services is separately identifiable from other promises in the contract and the customer can benefit from each service or goods deliver either on its own or together with other resources that are readily available. We allocate contract revenue to the identified separate units based on their relative standalone selling price. The standalone selling price is the price at which an entity would sell a promised good or service separately to a customer. Revenue associated with post-contract continuous maintenance support performance obligation is recognized over the time. Revenue associated with the solution and application customization service and installations of hardware and software components are recognized at a point in time upon completion of the performance obligation is satisfied and accepted by the customers. In instances, where substantive completion inspection and customer acceptance provisions are specified in contracts, revenues are deferred until all inspection and acceptance criteria have been met.

Tailored job readiness training services

In late 2019, the Company also started to provide tailored job readiness training services to graduating students from the appropriate partner schools so that such students would be better equipped to serve the employer at their respective job positions. Similar to Sino-foreign jointly-managed academic programs, the Company forges partnerships with selected Chinese vocational schools or colleges to provide tailored job readiness training services to students. The partner schools utilize their existing administrative ability, campus classrooms and facilities to recruit students into such training programs. The Company selects, recruits and appoints qualified faculty, trainers or professionals to provide trainings and bears related costs, develops and delivers major training content and materials to students to optimize their learning outcome, improve their social and technical skills, coordinate with employers to provide internship job opportunities to students and eventually help students to find appropriate jobs after completion of the trainings and graduation. The Company actively supports and interacts with enrolled students to ensure successful completion of the trainings, which normally takes several months up to three years. The Company’s contracts with partner schools are fixed price contracts, pursuant to which, the Company is to receive a fixed portion of training fees for services rendered. The training fees are collected first by partner schools from enrolled students before the training services get started, and then remitted to the Company. The Company initially records such training service fees as deferred revenue and ratably recognized it as revenue over the training service period as the Company’s performance obligations related to teaching, training, management and other supporting services are carried throughout the training period. For the year ended December 31, 2020 and 2019, the Company earned $76,400 and $4,000 from providing tailored job readiness training services to students.

Contract Balances and Remaining Performance Obligations

Contract balances typically arise when a difference in timing between the transfer of control to the customer and receipt of consideration occurs.

The Company’s contract assets, consist primarily of accounts receivable related to providing educational services associated with Sino-foreign jointly managed education programs and study abroad consulting services to enrolled students, and contract receivable associated with providing technological consulting services for smart campus solutions, in which the Company’s contracted performance obligations have been satisfied, amount billed and the Company has an unconditional right to payment.

The Company had accounts receivable related to revenues from Sino-foreign jointly managed education programs, tailored job readiness training services and study abroad consulting services of $915,618 and $518,191 as of December 31, 2020 and 2019, respectively. Out of outstanding $915,618 accounts receivable as of December 31, 2020, $904,627 has been collected during the subsequent period up to March 2021.

In addition, the Company had contract receivable of $4,711,563 (including current and non-current portion of $4,448,946 and $262,617, respectively) and $2,711,039 (including current and non-current portion of $1,639,213 and $1,071,826, respectively) as of December 31, 2020 and 2019, respectively, primarily derived from providing technological consulting services for smart campus solutions to Chinese universities / colleges.

The balance due within one year and more than one year was based on the contracted payment terms with Chinese universities / colleges. As of December 31, 2020, the Company’s short-term contract receivable included $4,203,186 receivable from FMP and $245,761 receivable from other Chinese universities / colleges. Subsequently, from January 2021 up to the date of this report, the Company collected approximately $2,414,649 (RMB15,755,580) short-term contract receivable from FMP and remaining short-term contract receivable will be collected before December 2021. The FMP long-term contract receivable of $262,617 will be collected in 2022 based on the contract payment terms (see Note 4). In connection with the FMP “smart campus” projects, financing component resulted from a timing difference when control is transferred and the collection of cash receipts that may impact future cash flows amounted to $135,466 as of December 31, 2020. The Company had not incurred any bad debts with Chinese universities/colleges in the past in connection with its undertaking of these services, and accordingly the Company considers the contract receivable fully collectible.

The Company’s contract liabilities, which are reflected in its consolidated balance sheets as deferred revenue of $154,927 and $562,056 as of December 31, 2020 and December 31, 2019, respectively, consist primarily of the unsatisfied performance obligations as of the balance sheet dates. The December 31, 2020 deferred revenue balance primarily consisted of $27,334 deferred revenue associated with the “smart campus” projects when the Company received advance payment from customers while the projects have not been completed as of the balance sheet date, $21,257 deferred revenue associated with tailored job readiness training services and $106,336 deferred revenue associated with Overseas Study Consulting Services. The December 31, 2019 deferred revenue balance primarily consisted of $302,640 deferred revenue associated with the Company’s Sino-foreign jointly managed academic programs and $259,416 deferred revenue associated with the Company’s “smart campus” projects when the Company received advance payment from customers while the projects have not been completed as of the balance sheet date.

Disaggregation of revenue

Revenue disaggregated by service type was as follows for the years ended December 31, 2020, 2019, and 2018:

	For the years ended December 31,
	2020		2019		2018
Revenue from Sino-foreign Jointly Managed Academic Programs	$	2,772,679	$	2,484,194	$	2,410,781
Revenue from Technological Consulting Services for Smart Campus Solutions		1,995,559		2,232,588		1,820,974
Revenue from Overseas Study Consulting Services		129,485		525,878		547,521
Revenue from tailored job readiness training services		76,400		-		-
Revenue from textbook and course material sales		48,976		13,150		29,717
Total revenue	$	5,023,099	$	5,255,810	$	4,808,993

Costs on data management application system customization

With its “smart campus” solution services to Chinese universities / colleges, the Company provides technical support to help Chinese universities / colleges to customize their campus data management application system to record student information. The Company does not develop and own the data management application software. Costs incurred, which consist primarily of internal salaries and benefits of personnel involved in the provision of such services, were included in the cost of revenue in the consolidated statements of income and comprehensive income.

Advertising expense

Advertising expenses primarily relate to advertisement of the Company’s brand name and services through outdoor billboards and social media such as Weibo and WeChat. Advertising expenses are included in selling expenses in the consolidated statements of income and comprehensive income. Advertising expenses amounted to $3,378, $31,640, and $47,353 for the years ended December 31, 2020, 2019 and 2018, respectively.

Government subsidies

Government subsidies primarily relate to value added tax refund on qualified teaching data management software developed by the Company and used in the Company’s Technological Consulting Services for Smart Campus Solution projects, with the subsidy amount approved by local tax authority. The Company recognizes government subsidies as other operating income when they are received because they are not subject to any past or future conditions, there are no performance conditions or conditions of use, and they are not subject to future refunds. Government subsidies received and recognized as other operating income totaled $11,146, $72,051 and $169,789 for the years ended December 31, 2020, 2019 and 2018, respectively.

Income taxes

The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. 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 income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes have been incurred during the years ended December 31, 2020, 2019 and 2018. The Company does not believe there was any uncertain tax provision at December 31, 2020 and 2019.

The Company’s operating subsidiary in China is subject to the income tax laws of the PRC. No significant income was generated outside the PRC for the fiscal years ended December 31, 2020, 2019 and 2018. As of December 31, 2020, all of the tax returns of the Company’s PRC Subsidiary remain open for statutory examination by PRC tax authorities.

Value added tax (“VAT”)

The PRC government implemented a value-added tax reform pilot program, which replaced the business tax with VAT on selected sectors including but not limited to education in Beijing effective September 1, 2012. In August 2013, the pilot program was expanded nationwide in certain industries. Since May 2016, the change from business tax to VAT are expanded to all other service sectors which used to be subject to business tax. The VAT rates applicable to the Company’s PRC subsidiary ranged from 3% to 6%.

Earnings per Share

The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding for the period. Diluted presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. For the years ended December 31, 2020, 2019 and 2018, there were no dilutive shares.

Foreign currency translation

The functional currency for China Liberal, Yi Xin BVI and Boya Hong Kong is the U.S Dollar (“US$”). However, China Liberal, Yi Xin BVI and Boya Hong Kong currently only serve as the holding companies and did not have active operation as of December 31, 2020. The Company operates primarily through its subsidiary China Liberal Beijing in the PRC, and the functional currency for China Liberal Beijing is the Chinese Yuan (“RMB”). The Company’s consolidated financial statements have been translated into the reporting currency U.S. Dollars (“US$”). Assets and liabilities of the Company are translated at the exchange rate at each reporting period end date. Equity is translated at historical rates. Income and expense accounts are translated at the average rate of exchange during the reporting period. The resulting translation adjustments are reported under other comprehensive income (loss). Gains and losses resulting from the translations of foreign currency transactions and balances are reflected in the results of operations.

The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US$ at the rates used in translation.

The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report:

	December 31, 2020	December 31, 2019		December 31, 2018
Year-end spot rate	US$1=RMB 6.5250		US$1=RMB 6.9680		US$1=RMB 6.8776
Average rate	US$1=RMB 6.8878		US$1=RMB 6.9088		US$1=RMB 6.6163

Comprehensive income

Comprehensive income consists of two components, net income and other comprehensive income (loss). The foreign currency translation gain or loss resulting from translation of the financial statements expressed in RMB to US$ is reported in other comprehensive income (loss) in the consolidated statements of income and comprehensive income.

Statement of Cash Flows

In accordance with ASC 230, “Statement of Cash Flows”, cash flows from the Company’s operations are formulated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets.

Recent Adopted Accounting Pronouncements

In August 2018, the FASB Accounting Standards Board issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 modifies the disclosure requirements on fair value measurements. ASU 2018-13 is effective for all entities for fiscal years and interim periods within those fiscal years beginning after December 15, 2019, with early adoption permitted for any removed or modified disclosures. The removed and modified disclosures were adopted on a retrospective basis and the new disclosures were adopted on a prospective basis. The adoption of this guidance had no material impact on the Company’s consolidated financial statements.

Recent Accounting Pronouncements not yet adopted

In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. ASU 2016-13 was subsequently amended by Accounting Standards Update 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Accounting Standards Update 2019-04 Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, and Accounting Standards Update 2019-05, Targeted Transition Relief. In November 2019, the FASB issued ASU 2019-10, which extends the effective date for adoption of ASU 2016-13. Accordingly, for public entities that are not smaller reporting entities, ASU 2016-13 and its amendments is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. For all other entities, this guidance and its amendments will be effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. As an emerging growth company, we plan to adopt this guidance effective January 1, 2023. We are currently evaluating the impact of our pending adoption of ASU 2016-13 on our consolidated financial statements.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes. ASU 2019-12 is intended to simplify accounting for income taxes. It removes certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years, with early adoption permitted. The Company does not expect adoption of the new guidance to have a significant impact on its consolidated financial statements.

ACCOUNTS RECEIVABLE, NET

12 Months Ended

Dec. 31, 2020

ACCOUNTS RECEIVABLE, NET

NOTE 3 - ACCOUNTS RECEIVABLE, NET

Accounts receivable consist of the following:

	December 31, 2020		December 31, 2019
Accounts receivable - Sino-foreign Jointly Managed Academic Programs	$	890,807	$	37,296
Accounts receivable – tailored job readiness training services		13,820		-
Accounts receivable - Overseas Study Consulting Services		10,991		480,895
Less: allowance for doubtful accounts		-		-
Accounts receivable, net	$	915,618	$	518,191

Under the Sino-foreign Jointly Managed Academic Programs, student tuition fees are collected by the Chinese host universities / colleges at the beginning of each academic school year and then remit the agreed portion to the Company within one to four months. 100% of the December 31, 2020 accounts receivable balances associated with Sino-foreign Jointly Managed Academic Programs and tailored job readiness training services has been collected as of the filing date of these financial statements.

CONTRACTS RECEIVABLE, NET

12 Months Ended

Dec. 31, 2020

CONTRACTS RECEIVABLE, NET

NOTE 4 - CONTRACTS RECEIVABLE, NET

Contracts receivable consists of the following:

	December 31, 2020		December 31, 2019
Contract receivable- “Smart Campus” related technological consulting services with FMP (1)	$	3,730,203	$	2,450,312
Contract receivable- “Smart Campus” project maintenance and technical support fee with FMP		600,134		-
Contracts receivable – Other “Smart Campus” related technological consulting services (2)		245,761		95,735
Financing component associated with FMP contract receivable (1)		135,465		164,992
Less: allowance for doubtful accounts		-		-
Total contracts receivable, net		4,711,563		2,711,039
Less: current portion of contract receivable		4,448,946		1,639,213
Contracts receivable, non-current	$	262,617	$	1,071,826

______

(1) In 2017, the Company entered into a contract with FMP to help FMP with its smart campus project, including creating a big data center, digital classrooms and an experiment-based simulation teaching center for its business school. These projects have been fully completed in November 2018 with satisfactory inspection and acceptance by FMP in December 2018.

Total contract price under the 2017 FMP “smart campus” project was RMB16.68 million (approximately $2.4 million) for completion of the software and hardware installation, plus additional RMB 5.05 million (approximately $0.73 million) post-contract maintenance and technical support fee during the period of 2019 to 2021.

Based on the initial contract payment schedule, RMB16.68 million earned project fee shall be paid in three equal installments of RMB 5,561,180 (approximately $798,103) before December 20 of each year from 2019 to 2021. RMB 5.05 million Post-contract maintenance and technical support fee will also be paid in four installments in 2018 to 2021 when services are rendered. Subsequent to year end, RMB10.2 million (approximately $1.6 million) was collected in March 2021. The Company and FMP revised the payment term of the remaining balance. Accordingly, the balance of RMB 2.6 million (approximately $0.4 million) was expected to be collected on or prior to June 30, 2021 and the remaining RMB 3.0 million (approximately $0.46 million) was expected to be collected on the original due date of December 20, 2021.

As of December 31, 2020, total outstanding contract receivable from FMP 2017 contract amounted to $2,420,188, including the following:

2017 FMP Contract	Amount as of December 31, 2020		Contracted payment due date
Contract receivable	$	2,011,090
Maintenance fees		409,098
Total		2,420,188
Less: current portion of contract receivable		2,420,188	By December 31, 2021
Non-current portion	$	-

As of December 31, 2020, current portion of contract receivable associated with FMP 2017 contract amounted to $2,420,188, including receivable of $2,215,639 for services completed before December 31, 2019 and receivable of $204,549 for services completed during 2020. As of the filing date of these financial statements, $1,567,900 contract receivable associated with FMP 2017 contract has been collected . For the remaining $0.85 million contract receivable, approximately $0.4 million will be collected by June 2021 pursuant to the revised payment plan with FMP, and approximately $0.45 million was not past due and will be collected by December 20, 2021.

In addition to the 2017 FMP contract, in 2019, the Company entered into a new “smart campus” related contract with FMP to help FMP to create an information engineering laboratory training center and an experiment-based simulation center for its hotel management major for total contract price of RMB15.58 million (approximately $2.3 million) plus additional RMB3.74 million (approximately $0.54 million) for post-installation maintenance and technical support fees for the three years from 2020 to 2022.

The contract for the information engineering laboratory training center include two phases. Phase I requires the Company to complete the hardware and software installation and decoration of the computer training rooms, IOT training room and digital classrooms with contract price of approximately RMB 7.1 million ($1.01 million), which was completed before December 31, 2019, passed the inspection and was accepted by FMP. Phase II requires the Company to complete the hardware and software installation for the cloud computing and big data room with contract price of RMB3.48 million (approximately $0.5 million). Due to COVID-19 outbreak and temporary school closure, the performance of the Phase II contract has been delayed and rescheduled to be completed in 2021. During the year ended December 31, 2020, the Company completed the experiment-based simulation center for FMP’s hotel management major, with satisfactory inspection and acceptance by FMP and recognized RMB4.6 million ($0.7 million) revenue.

As of December 31, 2020, total outstanding contract receivable from FMP 2019 contract amounted to $2,045,614, including the following:

2019 FMP Contract	Amount		Contracted payment due date
Contract receivable	$	1,854,580
Maintenance fees		191,034
Total		2,045,614
Less current portion		1,782,997	By December 31, 2021
Non-current portion	$	262,617	By December 31, 2022

As of December 31, 2020, contract receivable associated with FMP 2019 contract amounted to $2,045,614, including receivable of $1,088,289 for services completed before December 31, 2019, receivable of $766,289 for services completed during 2020 and maintenance fee of $191,036. For current portion of contract receivable of $1.78 million from FMP, $0.6 million has been collected as of the date of this report, approximately $0.38 million will be collected in June 2021 pursuant to the revised payment plan with FMP and remaining approximately $0.8 million was not past due and will be collected by December 20, 2021.

For the above mentioned 2017 and 2019 FMP contracts, revenue recognized for the years ended December 31, 2020, 2019 and 2018 was as follows:

	For the years ended December 31,
	2020		2019		2018
Revenue from 2017 FMP “smart campus” contract	$	-	$	-	$	1,517,410
2017 FMP contract post-installation maintenance fee revenue		171,035		187,559		153,040
Revenue from 2019 FMP “smart campus” contract		612,359		926,187		-
2019 FMP contract post-installation maintenance fee revenue		159,736		-		-
Total revenue from FMP “smart campus” contracts	$	943,130	$	1,113,746	$	1,670,450

(2) The Company has entered into additional smart campus solution contracts with a number of Chinese universities / colleges, including Capital Normal University, Shougang Technician College, Beijing Institute of Technology, North China Electric Power University, University of Chinese Academy of Sciences, Beijing Advanced Technical School of Arts and Craft and China University of Mining & Technology (Beijing), etc., to provide “smart campus” solution related consulting services to them, such as internet network improvement, digital classroom solutions, and educational management system customization. Most of these new smart campus contracts had been executed, completed, and accepted by these universities / colleges and the Company recognized revenue of $440,190 and $1,118,842 in 2020 and 2019, respectively. Due to school closure and business disruptions because of the COVID-19 outbreak, the progress of some of these projects was delayed and the Company substantially completed these projects during the summer of 2020. As of December 31, 2020, contract receivable from these smart campus projects amounted to $245,761, which has been fully collected as of the date of this report.

ADVANCE TO SUPPLIERS	12 Months Ended
ADVANCE TO SUPPLIERS	Dec. 31, 2020
ADVANCE TO SUPPLIERS
NOTE 5 - ADVANCE TO SUPPLIERS	In connection with the technological consulting services provided to Chinese universities / colleges for the “smart campus” projects as disclosed in Note 4, the Company made advance payment to suppliers for purchase of electronic sensors, smartboards, projectors, LED display panels, high definition classroom audio and sound system and other lab-based equipment. The balances of advance to suppliers were $94,648 and $836,766 as of December 31, 2020 and 2019, respectively. There was no allowance recorded as the Company considers all of the advances fully realizable.

PREPAID EXPENSES AND OTHER CURRENT ASSETS

12 Months Ended

Dec. 31, 2020

PREPAID EXPENSES AND OTHER CURRENT ASSETS

NOTE 6 - PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consisted of the following:

	December 31, 2020		December 31, 2019
Other receivable ⁽¹⁾	$	167,748	$	234,710
Prepaid expenses and other ⁽²⁾		251,965		104,550
Subtotal		419,713		339,260
Allowance for doubtful accounts		-		-
Prepaid expenses and other current assets, net	$	419,713	$	339,260

____________

(1)	Other receivable primarily includes short-term advances to employees for business operations, which are normally expensed within three months when invoices and other supporting documents been submitted for reimbursement, and security deposits for performance of contracts.

(2)	Prepaid expenses and other include IT equipment and tools which will be expensed upon sales, as well as prepaid independent director fees, prepaid investor relation expense and prepaid insurance expense, which are amortized over the service periods.

PROPERTY AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2020

PROPERTY AND EQUIPMENT, NET

NOTE 7 - PROPERTY AND EQUIPMENT, NET

Property and equipment, net, consist of the following:

	December 31, 2020			December 31, 2019
Office equipment and furniture	$	8,128		$	27,941
Electronic equipment		94,335			87,176
Transportation vehicles		232,957			218,147
Leasehold improvement		-			46,128
Subtotal		335,420			379,392
Less: accumulated depreciation		(286,272	)		(301,610	)
Property and equipment, net	$	49,148		$	77,782

Depreciation expense was $15,891, $40,038 and $45,347 for the years ended December 31, 2020, 2019 and 2018, respectively. In June 2020, China Liberal Beijing relocated its headquarters office to a new location for an efficient space. In connection with the office relocation, the Company disposed certain fully depreciated office equipment and furniture and leasehold improvement associated with the old office lease. The Company recognized a loss of $37,468 from such disposal.

RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2020

RELATED PARTY TRANSACTIONS

NOTE 8 - RELATED PARTY TRANSACTIONS

a.	Due from a related party

As of December 31, 2020, balance due from a related party, Ms. Ngai Ngai Lam, CEO and Chairwoman of the Company, amounted to $1,439,080. The advance was made on December 29, 2020 and was interest free. The Company received full repayment on this advance in January 2021 and has no intention to make additional advance to related parties in the future.

b.	Due to related parties

As of December 31, 2019, the balance due to related parties are comprised of advances from the Company’s principal shareholders and used for working capital during the Company’s normal course of business. These advances were non-interest bearing and due on demand. Due to related parties amounted to $nil and $461,633 as of December 31, 2020 and 2019, respectively.

c.	Borrowing from a related party for acquisition of non-controlling interest

In connection with the Company’s acquisition of the 8.8228% non-controlling interest in China Liberal Beijing, the Company borrowed cash in the amount of $453,669 from related party, Ms. Ngai Ngai Lam, the controlling shareholder of the Company, and made the payment to original five non-controlling shareholders (see Note 11). This borrowing from related party is non-interest bearing and the Company made the repayment to related party in fourth quarter of fiscal year 2019 using cash generated from operating activities.

TAXES

12 Months Ended

Dec. 31, 2020

TAXES

NOTE 9 - TAXES

(a)

Corporate Income Taxes (“CIT”)

Cayman Island

Under the current tax laws of the Cayman Islands, the Company is not subject to tax on its income or capital gains. In addition, no Cayman Islands withholding tax will be imposed upon the payment of dividends by the Company to its shareholders.

BVI

Yi Xin BVI is incorporated in the BVI as an offshore holding company and is not subject to tax on income or capital gain under the laws of BVI.

Hong Kong

Boya Hong Kong is incorporated in Hong Kong and is subject to profit taxes in Hong Kong at a rate of 16.5%. However, Boya Hong Kong did not generate any assessable profits arising in or derived from Hong Kong for the fiscal years ended December 31, 2020, 2019 and 2018, and accordingly no provision for Hong Kong profits tax has been made in these periods.

PRC

Under the Enterprise Income Tax (“EIT”) Law of PRC, domestic enterprises and Foreign Investment Enterprises (the “FIE”) are usually subject to a unified 25% enterprise income tax rate while preferential tax rates, tax holidays and even tax exemption may be granted on case-by-case basis. EIT grants preferential tax treatment to High and New Technology Enterprises (“HNTEs”). Under this preferential tax treatment, HNTEs are entitled to an income tax rate of 15%, subject to a requirement that they re-apply for HNTE status every three years.

China Liberal Beijing, the Company’s main operating subsidiary in PRC, was approved as a HNTE and is entitled to a reduced income tax rate of 15% beginning December 2016, which is valid for three years. In December 2019, China Liberal Beijing successfully renewed its HNTE Certificate with local government and will continue to enjoy the reduced income tax rate of 15% for another three years by December 2022. EIT is typically governed by the local tax authority in PRC. Each local tax authority at times may grant tax holidays to local enterprises as a way to encourage entrepreneurship and stimulate local economy.

The corporate income taxes for fiscal 2020, 2019 and 2018 were reported at a reduced rate of 15% as a result of China Liberal Beijing being approved as a HNTE. The impact of the tax holidays noted above decreased corporate income taxes by $234,099, $101,398 and $105,864 for the years ended December 31, 2020, 2019 and 2018, respectively. The benefit of the tax holidays on net income per share (basic and diluted) $0.04, $0.02 and $0.02 for the years ended December 31, 2020, 2019 and 2018, respectively.

The components of the income tax provision are as follows:

	For the year ended December 31, 2020		For the year ended December 31, 2019		For the year ended December 31, 2018
Current tax provision
Cayman	$	-	$	-	$	-
BVI		-		-		-
Hong Kong		-		-		-
PRC		303,246		156,038		167,813
	$	303,246	$	156,038	$	167,813
Deferred tax provision
Cayman	$	-	$	-	$	-
BVI		-		-		-
Hong Kong		-		-		-
PRC		-		-		-
		-		-		-
Income tax provision	$	303,246	$	156,038	$	167,813

The following table reconciles the China statutory rates to the Company’s effective tax rate for the years ended December 31, 2020, 2019 and 2018:

	For the year ended December 31, 2020			For the year ended December 31, 2019			For the year ended December 31, 2018
China Income tax statutory rate		25.0	%		25.0	%		25.0	%
Permanent difference		0.6	%		0.4	%		0.4	%
Effect of PRC preferential tax rate		(10.0	%)		(10.0	%)		(10.0	%)
Non-PRC entities not subject to PRC income tax		4.5	%		10.9	%		0.0	%
Effective tax rate		20.1	%		26.3	%		15.4	%

The Company continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. As of December 31, 2020, all of the Company’s tax returns for its PRC Subsidiary remain open for statutory examination by PRC tax authorities.

(b)

Taxes payable

Taxes payable consist of the following:

	December 31, 2020		December 31, 2019
Income tax payable	$	512,231	$	257,125
Value added tax payable		118,832		144,108
Other taxes payable		2,588		3,220
Total taxes payable	$	633,651	$	404,453

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

CONCENTRATIONS	12 Months Ended
CONCENTRATIONS	Dec. 31, 2020
CONCENTRATIONS
NOTE 10 - CONCENTRATIONS	For the year ended December 31, 2020, three customers accounted for approximately 45.3%, 30.1% and 12.2% of the Company’s total revenue, respectively. For the year ended December 31, 2019, two customers accounted for approximately 36.3% and 30.9% of the Company’s total revenue, respectively. For the year ended December 31, 2018, two customers accounted for approximately 44.2% and 37.1% of the Company’s total revenue, respectively. As of December 31, 2020, one customer accounted for 86.0% of the total outstanding accounts and contracts receivable balance. As of December 31, 2019, one customer accounted for 82.1% of the total outstanding accounts and contracts receivable balance. For the year ended December 31, 2020, one supplier accounted for approximately 33.1% of the total purchases. For the year ended December 31, 2019, three suppliers accounted for approximately 26.0%, 15.9% and 14.6% of the total purchases, respectively. For the year ended December 31, 2018, two suppliers accounted for approximately 21.2% and 12.2% of the total purchases, respectively.

SHAREHOLDERS EQUITY	12 Months Ended
SHAREHOLDERS EQUITY	Dec. 31, 2020
SHAREHOLDERS EQUITY
NOTE 11 - SHAREHOLDERS' EQUITY	Ordinary Shares China Liberal is an exempted company established under the laws of the Cayman Island on February 25, 2019. The original authorized number of ordinary shares was 50,000 shares with par value of US$1.00 per share and 1,000 ordinary shares were issued. On July 8, 2019, the Company amended its Memorandum of Association to subdivide the authorized shares from 50,000 shares at par value of $1.00 per share to 50,000,000 shares of ordinary shares with par value of $0.001 per share, and subdivide the already issued 1,001 shares to 1,001,000 shares at par value of $0.001 per share. On July 15, 2019, the Company issued additional 3,999,000 shares of ordinary shares with par value of $0.001 per share to current shareholders. The issuance of these 5,000,000 ordinary shares is considered as a part of the Reorganization of the Company, which was retroactively applied as if the transaction occurred at the beginning of the period presented (see Note 1). Initial Public Offering On May 12, 2020, the Company completed its IPO of 1,333,333 common shares at a public offering price of $6.00 per share. The gross proceeds were $8 million before deducting placement agents’ commissions and other offering expenses, resulting in net proceeds of approximately $4.8 million. In connection with the offering, the Company’s common shares began trading on the NASDAQ Capital Market under the symbol “CLEU.” As of December 31, 2020 and December 31, 2019, the Company had a total of 6,333,333 and 5,000,000 ordinary shares issued and outstanding, respectively. Acquisition of non-controlling interest Before December 31, 2018, non-controlling interests represent five minority shareholders’ 8.8228% ownership interests in the Company’s subsidiary China Liberal Beijing. On February 1, 2019, Boya Hong Kong entered into share transfer agreements with each of the non-controlling shareholders of China Liberal Beijing and completed the acquisition of the 8.8228% non-controlling interest in China Liberal Beijing, for a total price of RMB 2.95 million (approximately $453,669). The total value of the non-controlling interest amounted to $540,907 as of the acquisition date. The Company borrowed cash from related party to make the acquisition payment. After this transaction, China Liberal Beijing became a 100% owned subsidiary of Boya Hong Kong (See Note 1 and Note 8). In accordance with ASC 810 “Consolidation,” changes in a parent’s ownership while the parent retains its controlling financial interest in its subsidiary should be accounted for as an equity transaction. Therefore, no gain or loss was recognized from this transaction. Statutory reserve and restricted net assets The Company’s PRC subsidiary is restricted in its ability to transfer a portion of its net assets to the Company. The payment of dividends by entities organized in China is subject to limitations, procedures and formalities. Regulations in the PRC currently permit payment of dividends only out of accumulated profits as determined in accordance with accounting standards and regulations in China. The Company is required to make appropriations to certain reserve funds, comprising the statutory surplus reserve and the discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (“PRC GAAP”). Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entity’s registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the Board of Directors. The statutory reserve may be applied against prior year losses, if any, and may be used for general business expansion and production or increase in registered capital, but are not distributable as cash dividends. Relevant PRC laws and regulations restrict the Company’s PRC subsidiary from transferring a portion of its net assets, equivalent to its statutory reserves and its share capital, to the Company in the form of loans, advances or cash dividends. Only PRC entities’ accumulated profits may be distributed as dividends to the Company without the consent of a third party. As of December 31, 2020 and December 31, 2019, the restricted amounts as determined pursuant to PRC statutory laws totaled $551,146 and $379,952, respectively, and total restricted net assets amounted to $8,262,442 and $4,964,068, respectively.

LEASES

12 Months Ended

Dec. 31, 2020

LEASES

NOTE 12 - LEASES

The Company’s main operating subsidiary, China Liberal Beijing, leases office spaces for its headquarter office and local branches under non-cancelable operating lease agreements with various expiration dates between 2019 and 2021. Lease expense for the years ended December 31, 2020, 2019 and 2018 was $158,612, $235,894 and $271,585, respectively.

Effective January 1, 2019, the Company adopted the new lease accounting standard Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) using the optional transition method which allowed the Company to continue to apply the guidance under the lease standard in effect at the time in the comparative periods presented. In addition, the Company elected the package of practical expedients, which allowed it to not reassess whether any existing contracts contain a lease, to not reassess historical lease classification as operating or finance leases, and to not reassess initial direct costs. The Company has not elected the practical expedient to use hindsight to determine the lease term for its leases at transition. The Company has also elected the practical expedient allowing it to not separate the lease and non-lease components for all classes of underlying assets. Adoption of this standard resulted in the recording of operating lease ROU assets and corresponding operating lease liabilities of $18,372 and $15,676, respectively, as of December 31, 2019 with no impact on accumulated deficit.

As of December 31, 2020, the remaining lease term was one-and-a-half years. The Company’s lease agreements do not provide a readily determinable implicit rate nor is it available to the Company from its lessors. Instead, the Company estimates its incremental borrowing rate based on the benchmark lending rate for three-year loans as published by China’s central bank in order to discount lease payments to present value. The weighted-average discount rate of the Company’s operating leases was 3.95%, as of December 31, 2020.

Supplemental balance sheet information related to operating leases was as follows:

	As of December 31, 2020
Right-of-use assets	$	180,528
Right of use asset-accumulated amortization		(43,833	)
Right-of-use assets, Net		136,695

Operating lease liabilities, current		90,253
Operating lease liabilities, noncurrent		23,102
Total operating lease liabilities	$	113,355

As of December 31, 2020, maturities of operating lease liabilities were as follows:

Maturity of Operating Lease Liabilities
2021	$	93,359
2022		23,340
Total future minimum lease payments		116,699
Less imputed interest		(3,344	)
Total	$	113,355

SEGMENT REPORTING

12 Months Ended

Dec. 31, 2020

SEGMENT REPORTING

NOTE 13 - SEGMENT REPORTING

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, and is identified on the basis of the internal financial reports that are provided to and regularly reviewed by the Company’s chief operating decision maker in order to allocate resources and assess performance of the segment.

In accordance with ASC 280, Segment Reporting, operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”), or decision making group, in deciding how to allocate resources and in assessing performance. The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. Management, including the chief operating decision maker, reviews operation results by the revenue of different services. Based on management’s assessment, the Company has determined that it has five operating segments as defined by ASC 280, including Sino-foreign Jointly Managed Academic Programs, textbooks and course material sales, Overseas Study Consulting Services, Technological Consulting Services for Smart Campus Solutions and Tailored Job Readiness Training Services.

Substantially all of the Company’s revenues for the years ended December 31, 2020, 2019 and 2018 were generated from the PRC. As of December 31, 2020 and 2019, a majority of the long-lived assets of the Company are located in the PRC, and therefore, no geographical segments are presented.

The following table presents summary information by segment for the years ended December 31, 2020, 2019 and 2018, respectively:

	For the year ended December 31, 2020
	Joint education programs		Textbook Sales		Overseas study consulting		Technological consulting for “smart campus” solutions		Tailored job readiness services			Total
Revenue	$	2,772,679	$	48,976	$	129,485	$	1,995,559	$	76,400		$	5,023,099
Cost of revenue		594,035		9,333		85,733		1,403,029		64,903			2,157,033
Gross profit		2,178,644		39,643		43,752		592,530		11,497			2,866,066

Operating expenses		788,978		13,936		36,846		567,846		21,740			1,429,346
Income (Loss) from operation		1,389,666		25,707		6,906		24,684		(10,243	)		1,436,720

Depreciation and amortization		8,771		155		410		6,313		242			15,891
Capital expenditure		11,719		207		547		8,434		323			21,230

Total assets		7,051,018		124,548		329,285		5,074,775		194,288			12,773,914
Total liabilities	$	625,392	$	11,047	$	29,206	$	450,108	$	17,232		$	1,132,985

	For the year ended December 31, 2019
	Joint education programs		Textbook Sales			Overseas study consulting		Technological consulting for “smart campus” solutions		Total
Revenue	$	2,484,194	$	13,150		$	525,878	$	2,232,588	$	5,255,810
Cost of revenue		1,508,356		11,499			264,695		1,576,144		3,360,694
Gross profit		975,838		1,651			261,183		656,444		1,895,116

Operating expenses		700,850		3,730			140,765		531,111		1,376,456
Income (Loss) from operation		274,988		(2,079	)		120,418		125,333		518,660

Depreciation and amortization		18,505		64			4,404		17,065		40,038
Capital expenditure		-		304			760		16,674		17,738

Total assets		3,239,183		17,146			685,702		2,911,109		6,853,140
Total liabilities	$	790,833	$	4,186		$	167,411	$	710,735	$	1,673,165

	For the year ended December 31, 2018
	Joint education programs		Textbook sales		Overseas study consulting		Technological consulting for “smart campus” solutions		Total
Revenue	$	2,410,781	$	29,717	$	547,521	$	1,820,974	$	4,808,993
Cost of revenue		1,155,854		19,687		64,321		1,462,435		2,702,297
Gross profit		1,254,927		10,030		483,200		358,539		2,106,696

Operating expenses		661,642		2,765		383,688		235,465		1,283,560
Income from operation		593,285		7,265		99,512		123,074		823,136

Depreciation and amortization		22,733		-		5,443		17,171		45,347
Capital expenditure		41,867		-		10,024		31,624		83,515

Total assets		2,991,601		-		716,310		2,259,694		5,967,605
Total liabilities	$	358,949	$	-	$	85,947	$	271,130	$	716,026

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2020
SUBSEQUENT EVENTS
NOTE 14 - SUBSEQUENT EVENTS	In March 2021, the Company filed a Registration Statement on Form F-1 to register 6,000,000 shares of the Company’s common shares in an effort to offer these shares to potential investors and raise fund as working capital. On April 19, 2021, the Company entered into certain securities purchase agreements with investors through a self-written public offering, pursuant to which the Company sold an aggregate of 6 million shares of its common stock, par value $0.001 per share, at a per share purchase price of $5 per share (the “Offering”). The net proceeds to the Company from such Offering was approximately $29.2 million.

CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY

12 Months Ended

Dec. 31, 2020

CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY

NOTE 15 - CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY

Pursuant to the requirements of Rule 12-04(a), 5-04(c) and 4-08(e)(3) of Regulation S-X, the condensed financial information of the parent company shall be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. The Company performed a test on the restricted net assets of consolidated subsidiaries in accordance with such requirement and concluded that it was applicable to the Company as the restricted net assets of the Company’s PRC subsidiary exceeded 25% of the consolidated net assets of the Company, therefore, the condensed financial statements for the parent company are included herein.

For purposes of the above test, restricted net assets of consolidated subsidiaries shall mean that amount of the Company’s proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form of loans, advances or cash dividends without the consent of a third party.

The condensed financial information of the parent company has been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the parent company used the equity method to account for investment in its subsidiaries. Such investment is presented on the condensed balance sheets as “Investment in subsidiaries” and the respective profit or loss as “Equity in earnings of subsidiaries” on the condensed statements of income.

The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S GAAP have been condensed or omitted.

The Company did not pay any dividend for the periods presented. As of December 31, 2020 and 2019, there were no material contingencies, significant provisions for long-term obligations, or guarantees of the Company, except for those which have been separately disclosed in the consolidated financial statements, if any.

CHINA LIBERAL EDUCATION HOLDINGS LIMITED

PARENT COMPANY BALANCE SHEET

	As of December 31,
	2020		2019
ASSETS
Current assets
Prepaid expenses and other current assets	$	55,639	$	-

Non-current assets
Investment in subsidiaries		11,585,290		5,179,975

Total assets	$	11,640,929	$	5,179,975

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES	$	-	$	-

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS’ EQUITY
Ordinary shares $0.001 par value, 50,000,000 shares authorized, 6,333,333 and 5,000,000 shares issued and outstanding at December 31, 2020 and 2019		6,333		5,000
Additional paid-in capital		9,358,487		4,579,116
Retained earnings		2,276,109		908,267
Accumulated other comprehensive loss		-		(312,408	)
Total shareholders’ equity		11,640,929		5,179,975

Total liabilities and shareholders’ equity	$	11,640,929	$	5,179,975

CHINA LIBERAL EDUCATION HOLDINGS LIMITED

PARENT COMPANY STATEMENTS OF INCOME

	For the Years Ended
	December 31 2020			December 31 2019			December 31 2018
Operating expenses
General and administrative expenses	$	488,735		$	-		$	-

Other expenses		10			-			-
Loss from operations		(488,745	)		-			-
Equity in earnings of subsidiaries		2,168,995			437,904			842,661

Net income	$	1,680,250		$	437,904		$	842,661

Foreign currency translation adjustments		-			(78,171	)		(156,333
Comprehensive income attributable to the Company	$	1,680,250		$	359,733		$	686,328

CHINA LIBERAL EDUCATION HOLDINGS LIMITED

PARENT COMPANY STATEMENTS OF CASH FLOWS

	For the Years Ended
	December 31 2020			December 31 2019			December 31 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	1,680,250		$	437,904		$	842,661
Adjustments to reconcile net cash flows from operating activities:
Equity in earnings of subsidiary		(2,168,995	)		(437,904	)		(842,661	)
Prepaid expenses and other current assets		(55,639	)		-			-
Net cash used in operating activities		(544,384	)		-			-
CASH FLOW FROM INVESTING ACTIVITIES
Investment in subsidiaries		(4,236,320	)		-			-
Net cash used in investing activities		(4,236,320	)		-			-
Net cash provided by financing activities		4,780,704			-			-
Change in cash		-			-			-

Cash, beginning of year		-			-			-

Cash, end of year	$	-		$	-		$	-

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of consolidation

Non-controlling interest and accounting for changes in ownership

Uses of estimates

Risks and Uncertainties

See Note 10 for customer concentrations.

Cash

Accounts and contracts receivable, net

Accounts and contracts receivable are recorded net of allowance for uncollectible accounts.

Advances to suppliers

Deferred initial public offering ("IPO") costs

The Company complies with the requirement of the ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A — “Expenses of Offering”. Deferred offering costs consist of underwriting, legal, and other expenses incurred through the balance sheet date that are directly related to the intended IPO. Deferred offering costs will be charged to shareholders’ equity upon the completion of the IPO. The Company completed its IPO on May 12, 2020, and accordingly, the December 31, 2019 capitalized deferred offering costs of $649,451 have been charged to shareholders’ equity.

Inventories

Lease

Impairment for long-lived assets

Fair value of financial instruments

·	Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

·	Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data.

·	Level 3 — inputs to the valuation methodology are unobservable.

Property and equipment

		Useful life
Office equipment and furniture		5 years
Electronic equipment		5 years
Transportation vehicles		5-10 years
Leasehold improvement		Shorter of the lease term or estimated useful life

Revenue recognition

The Company’s revenues are primarily derived from providing a wide range of educational services and programs to customers, as disclosed below. Revenues are reported net of all value added taxes.

On January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2014-09 Revenue from Contracts with Customers (“ASC Topic 606”) using the modified retrospective method.

The Company generates its revenue from the following sources:

Sino-foreign Jointly-Managed Academic Programs

Sales of textbooks and course materials

Overseas Study Consulting Service

Technological Consulting and Support Services

Tailored job readiness training services

Contract Balances and Remaining Performance Obligations

Contract balances typically arise when a difference in timing between the transfer of control to the customer and receipt of consideration occurs.

Disaggregation of revenue

Revenue disaggregated by service type was as follows for the years ended December 31, 2020, 2019, and 2018:

	For the years ended December 31,
	2020		2019		2018
Revenue from Sino-foreign Jointly Managed Academic Programs	$	2,772,679	$	2,484,194	$	2,410,781
Revenue from Technological Consulting Services for Smart Campus Solutions		1,995,559		2,232,588		1,820,974
Revenue from Overseas Study Consulting Services		129,485		525,878		547,521
Revenue from tailored job readiness training services		76,400		-		-
Revenue from textbook and course material sales		48,976		13,150		29,717
Total revenue	$	5,023,099	$	5,255,810	$	4,808,993

Costs on data management application system customization

Advertising expense

Government subsidies

Income taxes

Value Added Tax ("VAT")

Earnings per Share

Foreign currency translation

The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report:

	December 31, 2020	December 31, 2019		December 31, 2018
Year-end spot rate	US$1=RMB 6.5250		US$1=RMB 6.9680		US$1=RMB 6.8776
Average rate	US$1=RMB 6.8878		US$1=RMB 6.9088		US$1=RMB 6.6163

Comprehensive income

Statement of Cash Flows

Recent Accounting Pronouncements

Recent Accounting Pronouncements not yet adopted

In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. ASU 2016-13 was subsequently amended by Accounting Standards Update 2018-19, Codification Improvements to Topic 326, Financial Instruments — Credit Losses, Accounting Standards Update 2019-04 Codification Improvements to Topic 326, Financial Instruments — Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, and Accounting Standards Update 2019-05, Targeted Transition Relief. In November 2019, the FASB issued ASU 2019-10, which extends the effective date for adoption of ASU 2016-13. Accordingly, for public entities that are not smaller reporting entities, ASU 2016-13 and its amendments is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. For all other entities, this guidance and its amendments will be effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. As an emerging growth company, we plan to adopt this guidance effective January 1, 2023. We are currently evaluating the impact of our pending adoption of ASU 2016-13 on our consolidated financial statements.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes. ASU 2019-12 is intended to simplify accounting for income taxes. It removes certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years, with early adoption permitted. The Company does not expect adoption of the new guidance to have a significant impact on its consolidated financial statements.

ORGANIZATION AND BUSINESS DESCRIPTION (Tables)

12 Months Ended

Dec. 31, 2020

ORGANIZATION AND BUSINESS DESCRIPTION

Schedule of subsidiaries of the Company

Name of Entity	Date of Incorporation	Place of Incorporation	% of Ownership	Principal Activities
China Liberal	February 25, 2019	Cayman Islands	Parent, 100%	Investment holding

Yi Xin BVI	October 19, 2010	BVI	100%	Investment holding

Boya Hong Kong	May 11, 2011	Hong Kong	100%	Investment holding

China Liberal Beijing	August 8, 2011	Beijing, PRC	100%	Education service provider

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of estimated useful lives of the assets

		Useful life
Office equipment and furniture		5 years
Electronic equipment		5 years
Transportation vehicles		5-10 years
Leasehold improvement		Shorter of the lease term or estimated useful life

Schedule of Revenue disaggregated

	For the years ended December 31,
	2020		2019		2018
Revenue from Sino-foreign Jointly Managed Academic Programs	$	2,772,679	$	2,484,194	$	2,410,781
Revenue from Technological Consulting Services for Smart Campus Solutions		1,995,559		2,232,588		1,820,974
Revenue from Overseas Study Consulting Services		129,485		525,878		547,521
Revenue from tailored job readiness training services		76,400		-		-
Revenue from textbook and course material sales		48,976		13,150		29,717
Total revenue	$	5,023,099	$	5,255,810	$	4,808,993

Summary of currency exchange rates

	December 31, 2020	December 31, 2019		December 31, 2018
Year-end spot rate	US$1=RMB 6.5250		US$1=RMB 6.9680		US$1=RMB 6.8776
Average rate	US$1=RMB 6.8878		US$1=RMB 6.9088		US$1=RMB 6.6163

ACCOUNTS RECEIVABLE, NET (Tables)

12 Months Ended

Dec. 31, 2020

ACCOUNTS RECEIVABLE, NET

Schedule of Accounts receivable

	December 31, 2020		December 31, 2019
Accounts receivable - Sino-foreign Jointly Managed Academic Programs	$	890,807	$	37,296
Accounts receivable – tailored job readiness training services		13,820		-
Accounts receivable - Overseas Study Consulting Services		10,991		480,895
Less: allowance for doubtful accounts		-		-
Accounts receivable, net	$	915,618	$	518,191

CONTRACTS RECEIVABLE, NET (Tables)

12 Months Ended

Dec. 31, 2020

CONTRACTS RECEIVABLE, NET

Schedule of Contracts receivable

	December 31, 2020		December 31, 2019
Contract receivable- “Smart Campus” related technological consulting services with FMP (1)	$	3,730,203	$	2,450,312
Contract receivable- “Smart Campus” project maintenance and technical support fee with FMP		600,134		-
Contracts receivable – Other “Smart Campus” related technological consulting services (2)		245,761		95,735
Financing component associated with FMP contract receivable (1)		135,465		164,992
Less: allowance for doubtful accounts		-		-
Total contracts receivable, net		4,711,563		2,711,039
Less: current portion of contract receivable		4,448,946		1,639,213
Contracts receivable, non-current	$	262,617	$	1,071,826

Schedule of contracted receivable from FMP 2017

2017 FMP Contract	Amount as of December 31, 2020		Contracted payment due date
Contract receivable	$	2,011,090
Maintenance fees		409,098
Total		2,420,188
Less: current portion of contract receivable		2,420,188	By December 31, 2021
Non-current portion	$	-

Schedule of contracted receivable from FMP 2019

2019 FMP Contract	Amount		Contracted payment due date
Contract receivable	$	1,854,580
Maintenance fees		191,034
Total		2,045,614
Less current portion		1,782,997	By December 31, 2021
Non-current portion	$	262,617	By December 31, 2022

Summary of revenue recognized for the year

	For the years ended December 31,
	2020		2019		2018
Revenue from 2017 FMP “smart campus” contract	$	-	$	-	$	1,517,410
2017 FMP contract post-installation maintenance fee revenue		171,035		187,559		153,040
Revenue from 2019 FMP “smart campus” contract		612,359		926,187		-
2019 FMP contract post-installation maintenance fee revenue		159,736		-		-
Total revenue from FMP “smart campus” contracts	$	943,130	$	1,113,746	$	1,670,450

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)

12 Months Ended

Dec. 31, 2020

PREPAID EXPENSES AND OTHER CURRENT ASSETS

Schedule of Prepaid expenses and other current assets

	December 31, 2020		December 31, 2019
Other receivable ⁽¹⁾	$	167,748	$	234,710
Prepaid expenses and other ⁽²⁾		251,965		104,550
Subtotal		419,713		339,260
Allowance for doubtful accounts		-		-
Prepaid expenses and other current assets, net	$	419,713	$	339,260

PROPERTY AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2020

PROPERTY AND EQUIPMENT, NET

Schedule of Property and equipment

	December 31, 2020			December 31, 2019
Office equipment and furniture	$	8,128		$	27,941
Electronic equipment		94,335			87,176
Transportation vehicles		232,957			218,147
Leasehold improvement		-			46,128
Subtotal		335,420			379,392
Less: accumulated depreciation		(286,272	)		(301,610	)
Property and equipment, net	$	49,148		$	77,782

TAXES (Tables)

12 Months Ended

Dec. 31, 2020

TAXES

Schedule of income tax provision

	For the year ended December 31, 2020		For the year ended December 31, 2019		For the year ended December 31, 2018
Current tax provision
Cayman	$	-	$	-	$	-
BVI		-		-		-
Hong Kong		-		-		-
PRC		303,246		156,038		167,813
	$	303,246	$	156,038	$	167,813
Deferred tax provision
Cayman	$	-	$	-	$	-
BVI		-		-		-
Hong Kong		-		-		-
PRC		-		-		-
		-		-		-
Income tax provision	$	303,246	$	156,038	$	167,813

Summary of reconciliation between the statutory EIT

	For the year ended December 31, 2020			For the year ended December 31, 2019			For the year ended December 31, 2018
China Income tax statutory rate		25.0	%		25.0	%		25.0	%
Permanent difference		0.6	%		0.4	%		0.4	%
Effect of PRC preferential tax rate		(10.0	%)		(10.0	%)		(10.0	%)
Non-PRC entities not subject to PRC income tax		4.5	%		10.9	%		0.0	%
Effective tax rate		20.1	%		26.3	%		15.4	%

Schedule of Taxes payable

	December 31, 2020		December 31, 2019
Income tax payable	$	512,231	$	257,125
Value added tax payable		118,832		144,108
Other taxes payable		2,588		3,220
Total taxes payable	$	633,651	$	404,453

LEASES (Tables)

12 Months Ended

Dec. 31, 2020

LEASES

Summary of operating leases

	As of December 31, 2020
Right-of-use assets	$	180,528
Right of use asset-accumulated amortization		(43,833	)
Right-of-use assets, Net		136,695

Operating lease liabilities, current		90,253
Operating lease liabilities, noncurrent		23,102
Total operating lease liabilities	$	113,355

Summary of maturities of operating lease liabilities

Maturity of Operating Lease Liabilities
2021	$	93,359
2022		23,340
Total future minimum lease payments		116,699
Less imputed interest		(3,344	)
Total	$	113,355

SEGMENT REPORTING (Tables)

12 Months Ended

Dec. 31, 2020

SEGMENT REPORTING

Summary information by segment for the years

	For the year ended December 31, 2020
	Joint education programs		Textbook Sales		Overseas study consulting		Technological consulting for “smart campus” solutions		Tailored job readiness services			Total
Revenue	$	2,772,679	$	48,976	$	129,485	$	1,995,559	$	76,400		$	5,023,099
Cost of revenue		594,035		9,333		85,733		1,403,029		64,903			2,157,033
Gross profit		2,178,644		39,643		43,752		592,530		11,497			2,866,066

Operating expenses		788,978		13,936		36,846		567,846		21,740			1,429,346
Income (Loss) from operation		1,389,666		25,707		6,906		24,684		(10,243	)		1,436,720

Depreciation and amortization		8,771		155		410		6,313		242			15,891
Capital expenditure		11,719		207		547		8,434		323			21,230

Total assets		7,051,018		124,548		329,285		5,074,775		194,288			12,773,914
Total liabilities	$	625,392	$	11,047	$	29,206	$	450,108	$	17,232		$	1,132,985

	For the year ended December 31, 2019
	Joint education programs		Textbook Sales			Overseas study consulting		Technological consulting for “smart campus” solutions		Total
Revenue	$	2,484,194	$	13,150		$	525,878	$	2,232,588	$	5,255,810
Cost of revenue		1,508,356		11,499			264,695		1,576,144		3,360,694
Gross profit		975,838		1,651			261,183		656,444		1,895,116

Operating expenses		700,850		3,730			140,765		531,111		1,376,456
Income (Loss) from operation		274,988		(2,079	)		120,418		125,333		518,660

Depreciation and amortization		18,505		64			4,404		17,065		40,038
Capital expenditure		-		304			760		16,674		17,738

Total assets		3,239,183		17,146			685,702		2,911,109		6,853,140
Total liabilities	$	790,833	$	4,186		$	167,411	$	710,735	$	1,673,165

	For the year ended December 31, 2018
	Joint education programs		Textbook sales		Overseas study consulting		Technological consulting for “smart campus” solutions		Total
Revenue	$	2,410,781	$	29,717	$	547,521	$	1,820,974	$	4,808,993
Cost of revenue		1,155,854		19,687		64,321		1,462,435		2,702,297
Gross profit		1,254,927		10,030		483,200		358,539		2,106,696

Operating expenses		661,642		2,765		383,688		235,465		1,283,560
Income from operation		593,285		7,265		99,512		123,074		823,136

Depreciation and amortization		22,733		-		5,443		17,171		45,347
Capital expenditure		41,867		-		10,024		31,624		83,515

Total assets		2,991,601		-		716,310		2,259,694		5,967,605
Total liabilities	$	358,949	$	-	$	85,947	$	271,130	$	716,026

CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Tables)

12 Months Ended

Dec. 31, 2020

CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Tables)

Schedule of Parent company statements of balance sheet

	As of December 31,
	2020		2019
ASSETS
Current assets
Prepaid expenses and other current assets	$	55,639	$	-

Non-current assets
Investment in subsidiaries		11,585,290		5,179,975

Total assets	$	11,640,929	$	5,179,975

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES	$	-	$	-

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS’ EQUITY
Ordinary shares $0.001 par value, 50,000,000 shares authorized, 6,333,333 and 5,000,000 shares issued and outstanding at December 31, 2020 and 2019		6,333		5,000
Additional paid-in capital		9,358,487		4,579,116
Retained earnings		2,276,109		908,267
Accumulated other comprehensive loss		-		(312,408	)
Total shareholders’ equity		11,640,929		5,179,975

Total liabilities and shareholders’ equity	$	11,640,929	$	5,179,975

Schedule of condensed financial information of parent company

	For the Years Ended
	December 31 2020			December 31 2019			December 31 2018
Operating expenses
General and administrative expenses	$	488,735		$	-		$	-

Other expenses		10			-			-
Loss from operations		(488,745	)		-			-
Equity in earnings of subsidiaries		2,168,995			437,904			842,661

Net income	$	1,680,250		$	437,904		$	842,661

Foreign currency translation adjustments		-			(78,171	)		(156,333
Comprehensive income attributable to the Company	$	1,680,250		$	359,733		$	686,328

Schedule of Parent company statements of cashflows

	For the Years Ended
	December 31 2020			December 31 2019			December 31 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	1,680,250		$	437,904		$	842,661
Adjustments to reconcile net cash flows from operating activities:
Equity in earnings of subsidiary		(2,168,995	)		(437,904	)		(842,661	)
Prepaid expenses and other current assets		(55,639	)		-			-
Net cash used in operating activities		(544,384	)		-			-
CASH FLOW FROM INVESTING ACTIVITIES
Investment in subsidiaries		(4,236,320	)		-			-
Net cash used in investing activities		(4,236,320	)		-			-
Net cash provided by financing activities		4,780,704			-			-
Change in cash		-			-			-

Cash, beginning of year		-			-			-

Cash, end of year	$	-		$	-		$	-

ORGANIZATION AND BUSINESS DESCRIPTION (Details)	12 Months Ended
ORGANIZATION AND BUSINESS DESCRIPTION (Details)	Dec. 31, 2020
Subsidiaries Four [Member]
Ownership Percentage	100.00%
Place of incorporation	Bejing, PRC
Date of incorporation	Aug. 08, 2011
Name of Entity	China Liberal Bejing
Description of principal activity	Education Service provider
Subsidiaries Three [Member]
Ownership Percentage	100.00%
Place of incorporation	Hong Kong
Date of incorporation	May 11, 2011
Name of Entity	Boya Hong Kong
Description of principal activity	Investment holding
Subsidiaries One [Member]
Ownership Percentage	100.00%
Place of incorporation	Cayman Islands
Date of incorporation	Feb. 25, 2019
Name of Entity	China Liberal
Description of principal activity	Investment holding
Subsidiaries Two [Member]
Ownership Percentage	100.00%
Place of incorporation	BVI
Date of incorporation	Oct. 19, 2010
Name of Entity	Yi Xin BVI
Description of principal activity	Investment holding

ORGANIZATION AND BUSINESS DESCRIPTION (Details Narrative)		12 Months Ended
	May 12, 2020 USD ($) $ / shares shares	Dec. 31, 2020 USD ($) integer	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Jul. 19, 2016	Oct. 19, 2010
Initial public offering \| shares	1,333,333
Public offering price \| $ / shares	$ 6.00
Gross proceeds before commisissions	$ 8,000,000
Net proceeds	$ 4,800,000
Total value of non controlling interest			$ 453,669	$ 0
Yi Xin BVI [Member]
Ownership interest						100.00%
China Liberal Bejing [Member] \| February 01, 2019 [Member]
Cash Paid To Acquire Non Controlling Interest		$ 453,669
Total value of non controlling interest		$ 540,907
Ownership interest		100.00%
Boya Hong Kong [Member]
Ownership interest					100.00%
Registered capital		$ 5,100,000
Proportion Of Ownership Interest				91.1772%
Ownership interest owned by shareholders				8.8228%
Number of shareholders \| integer		5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Dec. 31, 2020
Leasehold improvement [Member]
Description of Estimated useful life	Shorter of the lease term or estimated useful life
Office Equipment And Furniture [Member]
Estimated useful lives of the assets	5 years
Tranportation vehicles [Member] \| Minimum [Member]
Estimated useful lives of the assets	5 years
Tranportation vehicles [Member] \| Maximum [Member]
Estimated useful lives of the assets	10 years
Electronic equipment [Member]
Estimated useful lives of the assets	5 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenue from Sino foreign Jointly Managed Academic Programs	$ 2,772,679	$ 2,484,194	$ 2,410,781
Revenue from Technological Consulting Services for Smart Campus Solutions	1,995,559	2,232,588	1,820,974
Revenue from Overseas Study Consulting Services	129,485	525,878	547,521
Revenue from tailored job readiness training services	76,400	0	0
Revenue from textbook and course material sales	48,976	13,150	29,717
Total Revenue	$ 5,023,099	$ 5,255,810	$ 4,808,993

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - ¥ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Year- end spot rate	¥ 6.5250	¥ 6.9680	¥ 6.8776
Average Rate	¥ 6.8878	¥ 6.9088	¥ 6.6163

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	1 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Jun. 30, 2020	May 12, 2020
Working capital		$ 783,444		$ 404,154		$ 8,200,000
Cash maintained in banks covered by deposit insurance regulation		70,550
Cash maintained in banks covered by deposit insurance scheme		64,488
Cash at bank		3,401,817	$ 172
Accounts receivable, net		915,618	518,191
Outstanding accounts receivable		$ 915,618
Average student dropout rate, percentage		1.00%
Operating liability		$ 90,253	10,326
Cash flow from operating activities				(871,233)
Revenue from tailored job readiness training services		76,400	4,000	0
Total contract receivables, net		$ 24,711,563	2,711,039	2,577,423
Descriptions of value added tax		The VAT rates applicable to the Company’s PRC subsidiary ranged from 3% to 6%.
Contract receivable, net current		$ 4,448,946	1,639,213
Short term contract receivables		4,203,186			$ 400,000
Contract receivable, net non-current		262,617	1,071,826
Financing Component Associated With Fmp Contract Receivable		135,466
Deferred revenue		154,927	562,056
Advertising expenses		3,378	31,640	47,353
Receivables, other chinese colleges		$ 245,761
Description of contract payments		Subsequent to year end, in March 2021, the payment terms of FMP were revised, the due date of the balance of RMB14.2 million (approximately $2.2 million) with original due date prior to December 31, 2020 was extended to March 31, 2021 and was fully collected by the revised due date. The due date for balance of RMB 2.5 million (approximately $0.4 million) of the contract receivable with original due date prior to December 31, 2020 was extended to June 30, 2021 and the due dates of the remaining balance of RMB 9.9 million (approximately $1.5 million) were not changed under the revised payment term.
Operating income		$ 11,146	72,051	$ 169,789
Consulting fees, Descriptions		. As a result of performing the above-mentioned services, the Company is entitled to receive 30% to 50% of such student tuitions depending on the universities/colleges and the jointly managed academic programs, which are collected first by Chinese host universities/colleges from enrolled students at the beginning of each academic school year, and then remitted to the Company.
Overseas study consulting service fees descriptions		90% of the consulting service fee collected is non-refundable, and is recognized ratably as revenue over the service period, while 10% of the consulting fee is refundable and is deferred and recognized as revenue when students are successfully admitted by foreign institution and student visas are granted.
Sino Foreign Jointly Managed Academic Programme [Member]
Deferred revenue		$ 302,640	$ 259,416
January 2021 [Member]
Short term contract receivables		414,649
January, 01 2019 [Member] \| Lease [Member]
Operating liabilities		$ 20,000
February 01, 2019 [Member] \| China Liberal Bejing [Member]
Ownership interest owned by shareholders		8.8228%		8.8228%
Cash Paid To Acquire Non Controlling Interest		$ 453,669
Ownership percentage		100.00%
Subsequent Event [Member]
Account receivable collected	$ 904,627

ACCOUNTS RECEIVABLE, NET (Details) - USD ($)	12 Months Ended
ACCOUNTS RECEIVABLE, NET (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
ACCOUNTS RECEIVABLE, NET
Accounts receivable - Sino-foreign Jointly Managed Academic Programs	$ 890,807	$ 37,296
Accounts receivable - tailored job readiness training services	13,820	0
Accounts receivable - Overseas Study Consulting Services	10,991	480,895
Less: allowance for doubtful accounts	0	0
Accounts receivable, net	$ 915,618	$ 518,191

ACCOUNTS RECEIVABLE, NET (Details Narrative)	12 Months Ended
ACCOUNTS RECEIVABLE, NET (Details Narrative)	Dec. 31, 2020
ACCOUNTS RECEIVABLE, NET
Accounts Receivable Balance, Percentage	100.00%

CONTRACTS RECEIVABLE, NET (Details) - USD ($)	12 Months Ended
CONTRACTS RECEIVABLE, NET (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
CONTRACTS RECEIVABLE, NET
Contract receivable- "Smart Campus" related technological consulting services with FMP (1)	$ 3,730,203	$ 2,450,312
Contract receivable- "Smart Campus" project maintenance and technical support fee with FMP	600,134	0
Contracts receivable - Other "Smart Campus" related technological consulting services (2)	245,761	95,735
Financing component associated with FMP contract receivable (1)	135,465	164,992
Less: allowance for doubtful accounts	0	0
Total contracts receivable, net	4,711,563	2,711,039
Less: current portion of contract receivable	4,448,946	1,639,213
Contracts receivable, non-current	$ 262,617	$ 1,071,826

CONTRACTS RECEIVABLE, NET (Details 1) - USD ($)	12 Months Ended
CONTRACTS RECEIVABLE, NET (Details 1) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Contract receivable	$ 167,748	$ 234,710
Less: current portion of contract receivable	915,618	518,191
Non-current portion	262,617	$ 1,071,826
2017 FMP Contract [Member]
Contract receivable	2,011,090
Maintenance fees	409,098
Total	2,420,188
Less: current portion of contract receivable	2,420,188
Non-current portion	$ 0
Contracted payment due date	Dec. 31, 2021
2019 FMP Contract [Member]
Contract receivable	$ 1,854,580
Maintenance fees	191,034
Total	2,045,614
Less: current portion of contract receivable	1,782,997
Non-current portion	$ 262,617
Contracted payment due date	Dec. 31, 2021
Contracted payment due date, Non current	Dec. 31, 2022

CONTRACTS RECEIVABLE, NET (Details 2) - USD ($)	12 Months Ended
CONTRACTS RECEIVABLE, NET (Details 2) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
CONTRACTS RECEIVABLE, NET
Revenue from 2017 FMP "smart campus" contract	$ 0	$ 0	$ 1,517,410
2017 FMP contract post-installation maintenance fee revenue	171,035	187,559	153,040
Revenue from 2019 FMP "smart campus" contract	612,359	926,187	0
2019 FMP contract post-installation maintenance fee revenue	159,736
Total revenue from FMP "smart campus" contracts	$ 943,130	$ 1,113,746	$ 1,670,450

CONTRACTS RECEIVABLE, NET (Details Narrative) - USD ($)	12 Months Ended
CONTRACTS RECEIVABLE, NET (Details Narrative) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 20, 2021	Jun. 30, 2021	Mar. 31, 2021
Total contract price under the 2019 FMP "smart campus" project		$ 2,300,000
Contract receivable from smart campus	$ 245,761
Recognized revenue	440,190	1,118,842
Total outstanding contract receivable	850,000
Subsequent Event [Member]
Total outstanding contract receivable			$ 460,000	$ 400,000	$ 1,600,000
FMP [Member] \| 2017 [Member]
Total outstanding contract receivable	2,420,188
Amount to be received from services	204,549	2,215,639
Current portion of contract receivable	2,420,188
Total contract price	2,400,000
Post-contract maintenance and technical support fee	7,300,000	540,000
Contract receivable	1,567,900
Non - current portion of contract receivable		798,103
FMP [Member] \| 2017 [Member] \| Experiment-Based Simulation Center [Member]
Contract Price	700,000
FMP [Member] \| 2017 [Member] \| Subsequent Event [Member]
Total outstanding contract receivable			4,500,000	400,000
FMP [Member] \| 2019 [Member] \| Subsequent Event [Member]
Total outstanding contract receivable			$ 800,000	$ 380,000	$ 600,000
FMP [Member] \| 2019 [Member]
Total outstanding contract receivable	2,045,614
Amount to be received from services	766,289	$ 1,088,289
Current portion of contract receivable	2,045,614
Maintenance fee	191,036
Phase II [Member]
Contract Price	500,000
Phase I [Member]
Contract Price	$ 1,010,000

ADVANCE TO SUPPLIERS (Details Narrative) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
ADVANCE TO SUPPLIERS
Advance to supplier	$ 94,648	$ 836,766

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details)
Other receivable	$ 167,748	$ 234,710
Prepaid expenses and other	251,965	104,550
Subtotal	419,713	339,260
Allowance for doubtful accounts	0	0
Prepaid expenses and other current assets, net	$ 419,713	$ 339,260

PROPERTY AND EQUIPMENT, NET (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Total property and equipment	$ 335,420	$ 379,392
Less: accumulated depreciation	(286,272)	(301,610)
Property and equipment, net	49,148	77,782
Office Equipment And Furniture [Member]
Total property and equipment	8,128	27,941
Electronic equipment [Member]
Total property and equipment	94,335	87,176
Transportation vehicles [Member]
Total property and equipment	232,957	218,147
Leasehold improvement [Member]
Total property and equipment	$ 0	$ 46,128

PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
PROPERTY AND EQUIPMENT, NET
Depreciation expense	$ 15,891	$ 40,038	$ 45,347
Loss from disposal of property and equipment	$ 37,468	$ 0	$ 0

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Due to related party	$ 0	$ 461,633
Ms. Ngai Ngai Lam [Member]
Proceeds from related party debt	1,439,080
China Liberal Bejing [Member]
Proceeds from related party debt	$ 453,669
Acquisition of Non controlling interest	8.8228%

TAXES (Details) - USD ($)	12 Months Ended
TAXES (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Current tax provision	$ 303,246	$ 156,038	$ 167,813
Deferred tax provision	0	0	0
Income tax provision	303,246	156,038	167,813
PRC [Member]
Current tax provision	303,246	156,038	167,813
Deferred tax provision	0	0	0
Hong Kong [Member]
Current tax provision	0	0	0
Deferred tax provision	0	0	0
BVI [Member]
Current tax provision	0	0	0
Deferred tax provision	0	0	0
Cayman [Member]
Current tax provision	0	0	0
Deferred tax provision	$ 0	$ 0	$ 0

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

TAXES (Details 1)	12 Months Ended
TAXES (Details 1)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
TAXES
China Income tax statutory rate	25.00%	25.00%	25.00%
Permanent difference	0.60%	0.40%	0.40%
Effect of PRC preferential tax rate	(10.00%)	(10.00%)	(10.00%)
Changes in valuation allowance	4.50%	10.90%	0.00%
Effective tax rate	20.10%	26.30%	15.40%

TAXES (Details 2) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
TAXES
Income tax payable	$ 512,231	$ 257,125
Value added tax payable	118,832	144,108
Other taxes payable	2,588	3,220
Total taxes payable	$ 633,651	$ 404,453

TAXES (Details Narrative) - USD ($)	12 Months Ended
TAXES (Details Narrative) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Reduced tax rate	15.00%	15.00%	15.00%
Reduced income tax due to tax rate reduction	$ 234,099	$ 101,398	$ 105,864
Net income per share basic and diluted	$ 0.04	$ 0.02	$ 0.02
Hong Kong [Member]
Income tax rate	16.50%	16.50%	16.50%

CONCENTRATIONS (Details Narrative)	12 Months Ended
CONCENTRATIONS (Details Narrative)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Concentration of credit risk	45.30%	36.30%	44.20%
Account and contracts receivable [Member] \| Customer One [Member]
Concentration of credit risk	86.00%	82.10%
Total revenue [Member] \| Customer One [Member]
Concentration of credit risk	45.30%	36.30%	44.20%
Total revenue [Member] \| Customer two [Member]
Concentration of credit risk	30.10%	30.90%	37.10%
Total revenue [Member] \| Customer Three [Member]
Concentration of credit risk	12.20%
Total Purchases [member] \| Supplier One [member]
Concentration of credit risk	33.10%	26.00%	21.20%
Total Purchases [member] \| Supplier Two [member]
Concentration of credit risk		15.90%	12.20%
Total Purchases [member] \| Supplier Three [member]
Concentration of credit risk		14.60%

SHAREHOLDERS EQUITY (Details Narrative) - USD ($)			12 Months Ended
SHAREHOLDERS EQUITY (Details Narrative) - USD ($)	May 12, 2020	Jul. 08, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2020	Jul. 15, 2019	Feb. 25, 2019
Ordinary shares authorized		50,000,000	50,000,000	50,000,000	50,000,000		50,000
Ordinary shares par value		$ 0.001	$ 0.001	$ 0.001	$ 0.001		$ 1.00
Ordinary sharers issued			5,000,000		6,333,333	3,999,000	1,000
Ordinary sharers outstanding			5,000,000	5,000,000	6,333,333
Description of subdivision of ordinery shares		subdivide the already issued 1,001 shares to 1,001,000 shares at par value of $0.001 per share
Acquisition of 8.8228% non-controlling interest			$ (453,669)	$ 453,669
Acquisition of non-controlling interest			(540,907)
Net income attributable to non-controlling interest			453,669	0
Statutory reserve			379,952	294,158	$ 551,146
Total restricted net assets			$ 4,964,068	$ 4,878,274	$ 8,262,442
Boya Hong Kong [Member]
Ownership interest					100.00%
Initial Public Offering [Member]
Ordinary shares par value	$ 6.00			$ 0.001			$ 1.00
Ordinary sharers issued	1,333,333						1,000
Proceeds from issuance of shares, net	$ 4,800,000
Proceeds from issuance of shares, gross	$ 8,000,000

LEASES (Details) - USD ($)	12 Months Ended
LEASES (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
LEASES
Right-of-use assets	$ 180,528
Right of use asset-accumulated amortization	(43,833)
Right-of-use assets, Net	136,695	$ 18,372
Operating lease liabilities, current	90,253
Operating lease liabilities, noncurrent	23,102	5,350
Total operating lease liabilities	$ 113,355	$ 15,676

LEASES (Details 1)	Dec. 31, 2020 USD ($)
LEASES
2021	$ 93,359
2022	23,340
Total future minimum lease payments	116,699
Less imputed interest	(3,344)
Total	$ 113,355

LEASES (Details Narrative) - USD ($)	12 Months Ended
LEASES (Details Narrative) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
LEASES
Rent expense	$ 158,612	$ 235,894	$ 271,585
Right-of-use assets, Net	136,695	18,372
Total operating lease liabilities	$ 113,355	$ 15,676
Operating lease agreements expiration dates	expiration dates between 2019 and 2021
Operating Lease, Weighted Average Discount Rate, Percent	3.95%

SEGMENT REPORTING (Details) - USD ($)	12 Months Ended
SEGMENT REPORTING (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenue	$ 5,023,099	$ 5,255,810	$ 4,808,993
Cost of revenue	2,157,033	3,360,694	2,702,297
Gross profit	2,866,066	1,895,116	2,106,696
Operating expenses	1,429,346	1,376,456	1,283,560
Income (Loss) from operation	1,436,720	518,660	823,136
Depreciation and amortization	15,891	40,038	45,347
Capital expenditure	21,230	17,738	83,515
Total assets	12,773,914	6,853,140	5,967,605
Total liabilities	1,132,985	1,673,165	716,026
Tailored Job Readiness Services [Member]
Revenue	76,400
Cost of revenue	64,903
Gross profit	11,497
Operating expenses	21,740
Income (Loss) from operation	(10,243)
Depreciation and amortization	242
Capital expenditure	323
Total assets	194,288
Total liabilities	17,232
Joint Education Programs [Member]
Revenue	2,772,679	2,484,194	2,410,781
Cost of revenue	594,035	1,508,356	1,155,854
Gross profit	2,178,644	975,838	1,254,927
Operating expenses	788,978	700,850	661,642
Income (Loss) from operation	1,389,666	274,988	593,285
Total assets	7,051,018	3,239,183	2,991,601
Total liabilities	625,392	790,833	358,949
Capital expenditure	11,719	0	41,867
Depreciation and amortization	8,771	18,505	22,733
Textbook Sales [Member]
Revenue	48,976	13,150	29,717
Cost of revenue	9,333	11,499	19,687
Gross profit	39,643	1,651	10,030
Operating expenses	13,936	3,730	2,765
Income (Loss) from operation	25,707	(2,079)	7,265
Total assets	124,548	17,146	0
Total liabilities	11,047	4,186	0
Capital expenditure	207	304	0
Depreciation and amortization	155	64	0
Overseas Study Consulting [Member]
Revenue	129,485	525,878	547,521
Cost of revenue	85,733	264,695	64,321
Gross profit	43,752	261,183	483,200
Operating expenses	36,846	140,765	383,688
Income (Loss) from operation	6,906	120,418	99,512
Total assets	329,285	685,702	716,310
Total liabilities	29,206	167,411	85,947
Capital expenditure	547	760	10,024
Depreciation and amortization	410	4,404	5,443
Technological Consulting For Smart Campus Solutions [Member]
Revenue	1,995,559	2,232,588	1,820,974
Cost of revenue	1,403,029	1,576,144	1,462,435
Gross profit	592,530	656,444	358,539
Operating expenses	567,846	531,111	235,465
Income (Loss) from operation	24,684	125,333	123,074
Total assets	5,074,775	2,911,109	2,259,694
Total liabilities	450,108	710,735	271,130
Capital expenditure	8,434	16,674	31,624
Depreciation and amortization	$ 6,313	$ 17,065	$ 17,171

SUBSEQUENT EVENTS (Detail Narrative) - USD ($)	1 Months Ended
SUBSEQUENT EVENTS (Detail Narrative) - USD ($)	Apr. 19, 2021	Dec. 31, 2020	Dec. 31, 2019	Jul. 08, 2019	Feb. 25, 2019	Dec. 31, 2018
Shares to be offer		6,000,000
Ordinary shares par value		$ 0.001	$ 0.001	$ 0.001	$ 1.00	$ 0.001
Subsequent Event [Member]
Shares sold	6,000,000
Purchase price, per share	$ 5
Ordinary shares par value	$ 0.001
Proceeds from issuance of shares, net	$ 29,200,000

CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current assets
Prepaid expenses and other current assets	$ 223,387	$ 339,260
Non-current assets
Total assets	12,773,914	6,853,140	$ 5,967,605
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES	1,132,985	1,673,165	716,026
SHAREHOLDERS' EQUITY
Ordinary shares $0.001 par value, 50,000,000 shares authorized, 6,333,333 and 5,000,000 shares issued and outstanding at December 31, 2020 and 2019	6,333	5,000
Additional paid-in capital	9,358,487	4,579,116
Retained earnings	1,565,817	528,315
Accumulated other comprehensive loss	159,146	(312,408)
Total shareholders' equity	11,640,929	5,179,975	$ 5,251,579	$ 4,610,993
Total liabilities and shareholders' equity	12,773,914	6,853,140
Parent Company [Member]
Current assets
Prepaid expenses and other current assets	55,639	0
Non-current assets
Investment in subsidiaries	11,585,290	5,179,975
Total assets	11,640,929	5,179,975
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES	0	0
COMMITMENTS AND CONTINGENCIES	0	0
SHAREHOLDERS' EQUITY
Ordinary shares $0.001 par value, 50,000,000 shares authorized, 6,333,333 and 5,000,000 shares issued and outstanding at December 31, 2020 and 2019	6,333	5,000
Additional paid-in capital	9,358,487	4,579,116
Retained earnings	2,276,109	908,267
Accumulated other comprehensive loss	0	(312,408)
Total shareholders' equity	11,640,929	5,179,975
Total liabilities and shareholders' equity	$ 11,640,929	$ 5,179,975

CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Operating expenses
General and administrative expenses	$ 1,199,690	$ 783,241	$ 579,500
Loss from operations	1,436,720	518,660	823,136
Net income	1,208,696	437,904	924,440
Comprehensive income attributable to the Company	1,680,250	359,733	686,328
Parent Company [Member]
Operating expenses
General and administrative expenses	488,735	0	0
Other expenses	10	0
Loss from operations	(488,745)	0
Equity in earnings of subsidiaries	2,168,995	437,904	842,661
Net income	1,680,250	437,904	842,661
Foreign currency translation adjustments	0	(78,171)	(156,333)
Comprehensive income attributable to the Company	$ 1,680,250	$ 359,733	$ 686,328

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 1,208,696	$ 437,904	$ 924,440
Adjustments to reconcile net cash flows from operating activities:
Prepaid expenses and other current assets	753,405	(57,406)	(130,282)
Net cash used in operating activities	1,260,561	(338,432)	261,816
Net cash used in investing activities	(1,396,125)	(471,407)	1,881,329
Net cash provided by financing activities	3,340,905	439,193	8,094
Change in cash	3,305,170	(374,887)	2,069,196
Cash, beginning of year	1,702,279	2,077,166	7,970
Cash, end of year	5,007,449	1,702,279	2,077,166
Parent Company [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	1,680,250	437,904	842,661
Adjustments to reconcile net cash flows from operating activities:
Equity in earnings of subsidiary	(2,168,995)	(437,904)	(842,661)
Prepaid expenses and other current assets	(55,639)	0	0
Net cash used in operating activities	(544,384)	0	0
Investment in subsidiaries	(4,236,320)	0	0
Net cash used in investing activities	(4,236,320)	0	0
Net cash provided by financing activities	4,780,704	0	0
Change in cash	0	0	0
Cash, beginning of year	0	0	0
Cash, end of year	$ 0	$ 0	$ 0