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Condensed Financial Information of the Parent Company | 12 Months Ended
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Dec. 31, 2023
Condensed Financial Information of the Parent Company [Abstract] |
Condensed financial information of the parent company | Note 22 – Condensed financial information of the parent company The Company performed a test on the restricted net assets of consolidated subsidiaries in accordance with Securities and Exchange Commission Regulation S-X Rule 5-04 and concluded that it was applicable for the Company to disclose the financial statements for the parent company. The following condensed financial statements of the Parent Company have 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 its investment in its subsidiaries. The Parent Company and its subsidiaries were included in the consolidated financial statements whereby the inter-company balances and transactions were eliminated upon consolidation. The Parent Company’s share of loss from its subsidiaries is reported as “share of loss from subsidiaries” in the condensed financial statements. The Parent Company is a Cayman Islands company and, therefore, is not subjected to income taxes for all years presented. 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 US GAAP have been condensed or omitted. The subsidiaries did not pay any dividend to the Company for the years presents. As of December 31, 2023 and 2022, there were no material commitments or 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. (a) Condensed balance sheets
|  | December 31, |  |  | December 31, |
|  | 2023 |  |  | 2022 |
Assets |  |  |  |  |  |
Current assets: |  |  |  |  |  |
Cash and cash equivalents |  | $ | 172,588,698 |  |  | $ | 212,388,959 |
Other current assets, net |  |  | 2,939,668 |  |  |  | 257,500 |
Due from subsidiaries |  |  | 158,603,618 |  |  |  | 114,912,019 |
Total current assets |  |  | 334,131,984 |  |  |  | 327,558,478 |
Total assets |  | $ | 334,131,984 |  |  | $ | 327,558,478 |
Liabilities and Shareholders’ Equity |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |
Deficit of investments in subsidiaries |  | $ | 53,878,530 |  |  | $ | 8,626,897 |
Due to subsidiaries |  |  | 409,607 |  |  |  | - |
Total current liabilities |  |  | 54,288,137 |  |  |  | 8,626,897 |
Total liabilities |  |  | 54,288,137 |  |  |  | 8,626,897 |
Shareholders’ equity: |  |  |  |  |  |  |  |
Class A ordinary share, HKD0.03 par value, 11,112,474 shares authorized, 4,989,746 and 4,725,019 shares issued, 4,726,424 and 4,700,852 shares outstanding as of December 31, 2023 and 2022, respectively(1)(2) |  |  | 18,178 |  |  |  | 18,080 |
Class B ordinary share, HKD0.03 par value, 1,554,192 shares authorized, issued and outstanding as of December 31, 2023 and 2022, respectively(1) |  |  | 5,978 |  |  |  | 5,978 |
Additional paid-in capital |  |  | 397,467,795 |  |  |  | 397,620,927 |
Accumulated deficit |  |  | (103,761,016 | ) |  |  | (66,988,873 | )
Accumulated other comprehensive loss |  |  | (13,887,088 | ) |  |  | (11,724,531 | )
Total shareholders’ equity |  |  | 279,843,847 |  |  |  | 318,931,581 |
Total liabilities and shareholders’ equity |  | $ | 334,131,984 |  |  | $ | 327,558,478 |
| (1) | Retrospectively adjusted for the effect of the Reverse Stock Split effected on November 20, 2022. See Note 12.
| (2) | As of December 31, 2023 and 2022, 263,322 and 24,167 (725,000 before the Reverse Stock Split) shares reserved for future issuance upon the vesting of RSAs granted under the 2020 Plan were considered issued but not outstanding, respectively. See Note 12.
(b) Condensed statements of operations and comprehensive income (loss)
|  | For the year ended December 31, 2023 |  |  | For the year ended December 31, 2022 |  |  | For the year ended December 31, 2021 |
Operating expenses: |  |  |  |  |  |  |  |  |
General and administrative expenses |  | $ | 1,482,786 |  |  | $ | 33,796,950 |  |  | $ | 6,233,339 |
Total operating expenses |  |  | 1,482,786 |  |  |  | 33,796,950 |  |  |  | 6,233,339 |
Loss from operations |  |  | (1,482,786 | ) |  |  | (33,796,950 | ) |  |  | (6,233,339 | )
Interest income |  |  | 9,945,862 |  |  |  | 2,409,547 |  |  |  | 541,598 |
Other expenses |  |  | (2,847 | ) |  |  | (52,793 | ) |  |  | (8,505 | )
Exchange gain (loss) |  |  | 36,752 |  |  |  | (67,696 | ) |  |  | 1,478,258 |
Other income |  |  | - |  |  |  | - |  |  |  | 18,114 |
Loss on forgiveness of receivable from a subsidiary |  |  | 1,600,517 |  |  |  | - |  |  |  | - |
Share of income (loss) from subsidiaries |  |  | (46,869,641 | ) |  |  | (12,380,350 | ) |  |  | 8,634,815 |
Net income (loss) |  | $ | (36,772,143 | ) |  | $ | (43,888,242 | ) |  | $ | 4,430,941 |
Comprehensive income (loss) |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) |  | $ | (36,772,143 | ) |  | $ | (43,888,242 | ) |  | $ | 4,430,941 |
Other comprehensive income (loss): |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency translation adjustment |  |  | (2,162,557 | ) |  |  | (4,827,526 | ) |  |  | 751,327 |
Comprehensive income (loss) |  | $ | (38,934,700 | ) |  | $ | (48,715,768 | ) |  | $ | 5,182,268 |
(c) Condensed statements of cash flows
|  | For the year ended December 31, 2023 |  |  | For the year ended December 31, 2022 |  |  | For the year ended December 31, 2021 |
Cash Flows from Operating Activities: |  |  |  |  |  |  |  |  |
Net income (loss) |  | $ | (36,772,143 | ) |  | $ | (43,888,242 | ) |  | $ | 4,430,941 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: |  |  |  |  |  |  |  |  |  |  |  |
Share of (income) loss from subsidiaries |  |  | 46,869,641 |  |  |  | 12,380,350 |  |  |  | (8,634,815 | )
Amortization expense |  |  | - |  |  |  | 6,987,975 |  |  |  | 1,987,974 |
Share-based compensation |  |  | (153,034 | ) |  |  | 3,903,970 |  |  |  | 707,000 |
Loss on forgiveness of receivable from a subsidiary |  |  | 1,600,517 |  |  |  | - |  |  |  | - |
Impairment of intangible assets |  |  | - |  |  |  | 20,738,130 |  |  |  | - |
Changes in assets and liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Due from subsidiaries |  |  | (45,292,116 | ) |  |  | 127,102,949 |  |  |  | (195,566,806 | )
Other current assets, net |  |  | (2,682,168 | ) |  |  | 400,545 |  |  |  | 210,904 |
Accrued liabilities and other payables |  |  | - |  |  |  | (53,603 | ) |  |  | (7,973,877 | )
Due to subsidiaries |  |  | 409,607 |  |  |  | - |  |  |  | - |
Net Cash Provided by (Used in) Operating Activities |  |  | (36,019,696 | ) |  |  | 127,572,074 |  |  |  | (204,838,679 | )
Cash Flows from Investing Activities |  |  |  |  |  |  |  |  |  |  |  |
Collections from short-term investments |  |  | - |  |  |  | 15,000,000 |  |  |  | 25,835,000 |
Purchases of intangible assets |  |  | - |  |  |  | (10,000,000 | ) |  |  | - |
Net Cash Provided by Investing Activities |  |  | - |  |  |  | 5,000,000 |  |  |  | 25,835,000 |
Cash Flows from Financing Activities |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from issuances of ordinary shares |  |  | - |  |  |  | - |  |  |  | 254,727,705 |
Net Cash Provided by Financing Activities |  |  | - |  |  |  | - |  |  |  | 254,727,705 |
Effect of Foreign Exchange on Cash and Cash Equivalents |  |  | (3,780,565 | ) |  |  | (1,760,012 | ) |  |  | (2,465,348 | )
Net Increase (Decrease) in Cash and Cash Equivalents |  |  | (39,800,261 | ) |  |  | 130,812,062 |  |  |  | 73,258,678 |
Cash and Cash Equivalents at Beginning of Year |  |  | 212,388,959 |  |  |  | 81,576,897 |  |  |  | 8,318,219 |
Cash and Cash Equivalents at End of Year |  | $ | 172,588,698 |  |  | $ | 212,388,959 |  |  | $ | 81,576,897 |
Non-Cash Investing and Financing Activities: |  |  |  |  |  |  |  |  |  |  |  |
Issuance of vested restricted share awards |  | $ | 98 |  |  |  | 232 |  |  |  | - |

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04(a)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 205 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04(Schedule I)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480922/205-10-S99-6 Reference 3: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 810 -SubTopic 10 -Name Accounting Standards Codification -Section 45 -Paragraph 11 -Publisher FASB -URI https://asc.fasb.org//1943274/2147481231/810-10-45-11 + Details
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