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Taxation (Tables) | 6 Months Ended | 12 Months Ended
--- | --- | ---
Jun. 30, 2023 | Dec. 31, 2022
Taxation [Abstract] |  |
Schedule of Income Tax Provision | The income tax provision consisted of the following components:
|  | For the Six Months Ended June 30, |
|  | 2022 |  |  | 2023 |
Current income tax expenses |  |  | 1,139 |  |  |  | 926 |
Deferred income tax benefit |  |  | (249 | ) |  |  | (76 | )
Total income tax expense |  | $ | 890 |  |  | $ | 850 |
| The income tax provision consisted of the following components:
|  | For the years ended December 31, |
|  | 2020 |  |  | 2021 |  |  | 2022 |
Current income tax expenses |  | $ | 4,028 |  |  | $ | 2,062 |  |  | $ | 2,182 |
Deferred income tax benefit |  |  | (2,276 | ) |  |  | (1,124 | ) |  |  | (1,951 | )
Total income tax expense |  | $ | 1,752 |  |  | $ | 938 |  |  | $ | 231 |
Schedule of Provision for Income Taxes and the Provision at the Prc, Mainland Statutory Rate | A reconciliation between the Group’s actual provision for income taxes and the provision at the PRC, mainland statutory rate is as follows:
|  | For the Six Months Ended June 30, |
|  | 2022 |  |  | 2023 |
Income before income tax expense |  | $ | 7,613 |  |  | $ | 1,986 |
Computed income tax expense with statutory tax rate |  |  | 1,903 |  |  |  | 573 |
Additional deduction for R&D expenses |  |  | (257 | ) |  |  | (237 | )
Tax effect of preferred tax rate |  |  | (766 | ) |  |  | (791 | )
Tax effect of favorable tax rates on small-scale and low-profit entities |  |  | (5 | ) |  |  | (15 | )
Tax effect of tax relief |  |  | (5 | ) |  |  | (2 | )
Tax effect of non-deductible items |  |  | 11 |  |  |  | 35 |
Tax effect due to the disposal of Shengda Group* |  |  | (3,868 | ) |  |  | - |
Tax effect of deferred tax effect of tax rate change |  |  | - |  |  |  | (42 | )
Changes in valuation allowance |  |  | 3,877 |  |  |  | 1,329 |
Income tax expense |  | $ | 890 |  |  | $ | 850 |
| A reconciliation between the Group’s actual provision for income taxes and the provision at the PRC, mainland statutory rate is as follows:
|  | For the years ended December 31, |
|  | 2020 |  |  | 2021 |  |  | 2022 |
Income (Loss) before income tax expense |  | $ | 8,374 |  |  | $ | 10,530 |  |  | $ | (10,674 | )
Computed income tax expense (benefit) with statutory tax rate |  |  | 2,093 |  |  |  | 2,632 |  |  |  | (2,669 | )
Additional deduction for research and development expenses |  |  | (386 | ) |  |  | (509 | ) |  |  | (635 | )
Tax effect of preferred tax rate |  |  | (1,255 | ) |  |  | (1,389 | ) |  |  | 1,050 |
Tax effect of favorable tax rates on small-scale and low-profit entities |  |  | (52 | ) |  |  | (93 | ) |  |  | 123 |
Tax effect of tax relief |  |  | (51 | ) |  |  | (9 | ) |  |  | (7 | )
Tax effect of non-deductible items |  |  | 27 |  |  |  | 71 |  |  |  | 26 |
Tax effect due to the disposal of Shengda Group |  |  | - |  |  |  | - |  |  |  | (3,580 | )
Tax effect of deferred tax effect of tax rate change |  |  | - |  |  |  | - |  |  |  | 129 |
Changes in valuation allowance |  |  | 1,376 |  |  |  | 235 |  |  |  | 5,794 |
Income tax expense |  | $ | 1,752 |  |  | $ | 938 |  |  | $ | 231 |
Schedule of Deferred Tax Assets | As of December 31, 2022 and June 30, 2023, the significant components of the deferred tax assets are summarized below:
|  | December 31, |  |  | June 30, |
|  | 2022 |  |  | 2023 |
Deferred tax assets: |  |  |  |  |  |
Temporary difference in accounts receivable recognition |  | $ | 5,353 |  |  | $ | 5,092 |
Temporary difference in research and development costs |  |  | 3,738 |  |  |  | 3,983 |
Net operating loss carried forward |  |  | 7,676 |  |  |  | 8,635 |
Share-based compensation |  |  | 78 |  |  |  | 185 |
Allowance for doubtful accounts |  |  | 3,802 |  |  |  | 3,210 |
Total deferred tax assets |  |  | 20,647 |  |  |  | 21,105 |
Valuation allowance |  |  | (7,577 | ) |  |  | (8,475 | )
Deferred tax assets, net of valuation allowance |  | $ | 13,070 |  |  | $ | 12,630 |
| As of December 31, 2021 and 2022, the significant components of the deferred tax assets are summarized below:
|  | December 31, |
|  | 2021 |  |  | 2022 |
Deferred tax assets: |  |  |  |  |  |
Temporary difference in accounts receivable recognition |  | $ | 5,794 |  |  | $ | 5,353 |
Temporary difference in research and development costs |  |  | 4,211 |  |  |  | 3,738 |
Net operating loss carried forward |  |  | 4,142 |  |  |  | 7,676 |
Share-based compensation |  |  | 253 |  |  |  | 78 |
Allowance for doubtful accounts |  |  | - |  |  |  | 3,802 |
Total deferred tax assets |  |  | 14,400 |  |  |  | 20,647 |
Valuation allowance |  |  | (2,314 | ) |  |  | (7,577 | )
Deferred tax assets, net of valuation allowance |  | $ | 12,086 |  |  | $ | 13,070 |
Schedule of Changes in Valuation Allowance | Changes in valuation allowance are as follows:
|  | December 31, |  |  | June 30, |
|  | 2022 |  |  | 2023 |
Balance at beginning of the period |  | $ | 2,314 |  |  | $ | 7,577 |
Additions |  |  | 5,436 |  |  |  | 1,268 |
Foreign currency translation adjustments |  |  | (173 | ) |  |  | (370 | )
Balance at end of the period |  | $ | 7,577 |  |  | $ | 8,475 |
| Changes in valuation allowance are as follows:
|  | December 31, |
|  | 2021 |  |  | 2022 |
Balance at the beginning of the year |  | $ | 2,030 |  |  | $ | 2,314 |
Additions |  |  | 233 |  |  |  | 5,436 |
Foreign currency translation adjustments |  |  | 51 |  |  |  | (173 | )
Balance at the end of the year |  | $ | 2,314 |  |  | $ | 7,577 |
Schedule of Net Operating Loss Carryforwards | As of June 30, 2023, net operating loss carryforwards will expire, if unused, in the following amounts:
Remainder of 2023 |  |  | 643 |
2024 |  |  | 2,017 |
2025 |  |  | 5,263 |
2026 |  |  | 5,397 |
2027 |  |  | 16,817 |
2028 |  |  | 5,711 |
Total |  |  | 35,848 |
| As of December 31, 2022, net operating loss carryforwards will expire, if unused, in the following amounts:
2023 |  | $ | 676 |
2024 |  |  | 2,303 |
2025 |  |  | 5,534 |
2026 |  |  | 5,757 |
2027 |  |  | 17,996 |
Total |  | $ | 32,266 |

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