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Income Taxes
 3 Months Ended
Mar. 31, 2024
Income Taxes  
Income Taxes 19. Income Taxes

 

The components of the Company’s income (loss) before income taxes and income (loss) from operations for the three months ended March 31, 2024 and 2023 are as follows:

 

 

Three Months Ended

March 31,

 

 

 

2024

 

 

2023

 

 

 

(Unaudited)

 

Domestic (U.S. Segment)

 

$(19,088,377 )

 

$(308,924 )

Foreign (PRC Segment)

 

 

(178,609 )

 

 

850,451

 

Income (loss) before income taxes

 

 

(19,266,986 )

 

 

541,527

 

Income tax expense (benefit)

 

 

4,801

 

 

 

(201,288 )

Income (loss) from operations

 

$(19,271,787 )

 

$742,815

 

Effective tax rate

 

 

(0.2 )%

 

 

(37.17 )%

The Company is subject to taxation in the U.S. and various states jurisdictions. The Company is also subject to taxation in China. The Company’s effective tax rate is determined quarterly, reflecting actual activities and various tax-related items.

 

The Company’s effective income tax rate was (.02)% and (37.17)% for the three months ended March 31, 2024 and 2023, respectively. The variance from the U.S. federal statutory rate of 21% for the three months ended March 31, 2024 was primarily attributable to losses not benefitted for tax purposes, and state and foreign taxes.

 

As of March 31, 2024, the Company determined that, based on an evaluation of its history of net losses and all available evidence, both positive and negative, including the Company’s latest forecasts and cumulative losses in recent years, it was more likely than not that none or substantially none of its deferred tax assets would be realized and, therefore, the Company continued to record a valuation allowance on U.S. side and partially on the Chinese side.