Agape ATP Corp Revenue Disclosure

Revenue recognition

 

The Company adopted Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (ASC Topic 606). The core principle underlying the revenue recognition of this ASU allows the Company to recognize revenue that represents the transfer of goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. This will require the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. The Company’s revenue streams are recognized at a point in time for the Company’s sale of health and wellness products.

 

The ASU requires the use of a five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (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 accounts for a contract with a customer when the contract is committed in writing, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration is probable of substantially collection.

 

Sales of Skin Care, Health and Wellness products

 

- Performance obligations satisfied at a point in time

 

The Company derives its revenues from sales contracts with its customers with revenues being recognized when control of the skin care, health and wellness products are transferred to its customer at the Company’s office or shipment of the goods. The revenue is recorded net of estimated discounts and return allowances. Products are given 60 days for returns or exchanges from the date of purchase. Historically, there were insignificant sales returns.

 

Under the Company’s network marketing business, the Company issues product coupons to members and distributors when these customers made purchases above certain thresholds set by the Company. Depending on the type of product coupons issued, the coupons carry varying values and can be used by the customers for reduction in the transaction price of product purchases within the coupon validity period. The value of the product coupons issued is recorded as a reduction of the Company’s revenue account upon issuance; the corresponding amount credited to the customer deposits account. Amounts in customer deposits will be reversed when the coupons are used. The Company’s coupons have a validity period of between six and twelve months. If the Company’s customers did not utilize the coupons after the validity period, the Company would recognize the forfeiture of the originated sales value of the coupons as net revenues.

 

For the years ended December 31, 2025 and 2024, the Company recognized $5,448 and $3,485 as forfeited coupon income, respectively.

 

As of December 31, 2025, the Company had contracts for the sales of skin care, health and wellness products amounting to $8,352 which it is expected to fulfill within 12 months from December 31, 2025.

 

Sales of products for the provision of complementary health therapies

 

- Performance obligations satisfied at a point in time

 

Products for the provision of complementary health therapies are predominantly Chinese herbs in different forms, processed or otherwise, for prescriptions for treating non-communicable diseases.

 

The Company prescribes the products for complementary health therapies based on health screening test reports and delivers the products to the customers during the consultation session.

 

For the years ended December 31, 2025 and 2024, revenues from products for the provision of complementary health therapies were $912,239 and $913,297 respectively.

 

 

AGAPE ATP CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Currency expressed in United States Dollars (“US$”), except for number of shares)

 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

 

Provision of Health and Wellness services

 

- Performance obligations satisfied at a point in time

 

The Company carries out its Wellness program, where the Company’s products are bundled with health screening test. The health screening test is considered as separate performance obligations. The promises to deliver the health screening test report is separately identifiable, which is evidenced by the fact that the Company provides separate services of delivering the health screening test report.

 

The Company based on the health screening test contracts with customers, establishes the selling price for the health screening test and place order to the health screening center. The Company obtains control of the test report before they are delivered to the customers. The Company analyze the test report, provides consultations to the customers, bundle it with the Company’s products and services depending on the customer’s needs.

 

The Company derives its revenues from sales contracts with its customers with revenues being recognized when the test reports are completed and delivered to its customers during the consultation session in person.

 

For the years ended December 31, 2025 and 2024, revenues from providing health and wellness services are $169,299 and $207,546, respectively.

 

Sales of products and services for the operations in green energy

 

- Performance obligations satisfied over time

 

The Company provides products, technical knowledge and solutions for sustainability and energy savings. The Company delivers the products to the customers and enhances the products that the customer controls. The products that the Company creates have no alternative use to the Company. The Company has an enforceable right to receive payment for performance completed to date, the Company recognized revenue based on the percentage of cost incurred.

 

For the years ended December 31, 2025 and 2024, revenues from green energy are $139,727 and $42,763, respectively.

 

Disaggregated information of revenues by products and services are as follows:

 

SCHEDULE OF DISAGGREGATED INFORMATION OF REVENUES

		2025				2024
		For the years ended December 31,
		2025				2024
Energized Mineral Concentrate		$	59,024			$	43,487
Ionized Cal-Mag			-				388
LIVO5			7,931				76,465
Soy Protein Isolate Powder			1,859				9,357
Mix Soy Protein Isolate Powder with Black Sesame			2,462				7,353
Others – Products for the provision of complementary health therapies			912,239				913,297
Skin care and healthcare products			231,721				22,091
Green Energy			139,727				42,763
Total revenues – products			1,354,963				1,115,201
Health and Wellness services			169,299				207,546
Total revenues – products and services		$	1,524,262			$	1,322,747

 

Total net sales include $15,140 of revenue recognized in year 2025 that was included in customer deposit as of December 31, 2024, $12,442 of revenue recognized in year 2024 that was included in customer deposit as of December 31, 2023.

 

 

AGAPE ATP CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Currency expressed in United States Dollars (“US$”), except for number of shares)

 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)