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Taxes (Tables) | 6 Months Ended
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Jun. 30, 2025
Taxes [Abstract] |
Schedule of Components of the Income Tax Provision | The components of the income tax provision are as follows:
|  | For the six months ended June 30, |
|  | 2025 |  |  | 2024 |
Current |  |  |  |  |  |
Mainland China |  | $ | 360 |  |  | $ | 19,486 |
Deferred |  |  |  |  |  |  |  |
Mainland China |  |  | (221 | ) |  |  | (223 | )
Total |  | $ | 139 |  |  | $ | 19,263 |
Schedule of Loss Before Income Taxes Geographic Locations | Loss before income taxes was attributable to the following geographic locations for the six months ended June 30, 2025 and 2024:
|  | For the six months ended June 30, |
|  | 2025 |  |  | 2024 |
Mainland China |  | $ | (2,072,922 | ) |  | $ | (4,840,111 | )
Others |  |  | (767,085 | ) |  |  | (1,180,861 | )
Total |  | $ | (2,840,007 | ) |  | $ | (6,020,972 | )
Schedule of Loss Before Income Taxes and Actual Provision of Income Taxes | Reconciliation between the provision for income taxes computed by applying the Mainland China EIT rate of 25% to loss before income taxes and the actual provision of income taxes is as follows:
|  | For the six months ended June 30, |
|  | 2025 |  |  | 2024 |
Loss before income taxes |  | $ | (2,840,007 | ) |  | $ | (6,020,972 | )
Mainland China EIT rate |  |  | 25 | % |  |  | 25 | %
Income taxes computed at statutory EIT rate |  | $ | (710,002 | ) |  | $ | (1,505,243 | )
Reconciling items: |  |  |  |  |  |  |  |
Effect of tax holiday and preferential tax rate |  |  | 244,627 |  |  |  | 353,097 |
Effect of tax rates in foreign jurisdictions |  |  | 130,477 |  |  |  | 143,280 |
Effect of changes in tax rate |  |  | 79,036 |  |  |  | 2,117,881 |
Effect of true up on net operating loss in the tax returns |  |  | 1,340,693 |  |  |  | 694,422 |
Effect of expiration on net operating loss |  |  | 154,052 |  |  |  | - |
Change in valuation allowance |  |  | (1,214,129 | ) |  |  | (1,810,084 | )
Effect of non-deductible expense |  |  | 27,241 |  |  |  | 1,993 |
Effect of share-based compensation |  |  | 61,294 |  |  |  | 151,936 |
Super deduction of qualified R&D expenditures |  |  | (113,150 | ) |  |  | (128,019 | )
Income tax expense |  | $ | 139 |  |  | $ | 19,263 |
Effective tax rate |  |  | (0.00 | )% |  |  | (0.32 | )%
Schedule of Significant Components of Deferred Tax Assets and Liabilities | Significant components of deferred tax assets and liabilities were as follows:
|  | As of June 30, 2025 |  |  | As of December 31, 2024 |
Deferred tax assets |  |  |  |  |  |
Net operating loss carry forwards |  | $ | 6,206,074 |  |  | $ | 6,893,492 |
Provision for doubtful debts |  |  | 2,024,125 |  |  |  | 1,996,852 |
Finance lease liabilities |  |  | 143,356 |  |  |  | 334,895 |
Impairment on inventory |  |  | 630,994 |  |  |  | 1,204,730 |
Impairment of intangible assets |  |  | 440,182 |  |  |  | 458,576 |
Impairment of long-term investment |  |  | 594,593 |  |  |  | 583,539 |
Deferred tax assets, gross |  | $ | 10,039,324 |  |  |  | 11,472,084 |
Less: valuation allowance |  |  | (9,722,654 | ) |  |  | (10,693,306 | )
Total deferred tax assets, net |  | $ | 316,670 |  |  | $ | 778,778 |
Deferred tax liabilities |  |  |  |  |  |  |  |
Finance lease right-of-use assets |  | $ | 316,670 |  |  | $ | 778,778 |
Assets acquired in the asset acquisition |  |  | 192,918 |  |  |  | 189,551 |
Total deferred tax liabilities |  | $ | 509,588 |  |  | $ | 968,329 |
Deferred tax assets, net |  | $ | - |  |  | $ | - |
Deferred tax liabilities, net |  | $ | 192,918 |  |  | $ | 189,551 |
Schedule of Expiration of Carry Forward Operating Loss | The following is a schedule of expiration of carry forward operating losses as of June 30, 2025:
For the years ending December 31, |  |  |
2025 |  | $ | 304,779 |
2026 |  |  | 49,800 |
2027 |  |  | 1,184,689 |
2028 |  |  | 632,830 |
2029 |  |  | 2,863,893 |
2030 |  |  | 1,529,443 |
2031 |  |  | - |
2032 |  |  | 3,488,449 |
2033 |  |  | 8,645,606 |
2034 |  |  | 8,142,451 |
2035 |  |  | 5,728,281 |
Carried forward indefinitely |  |  | 444,865 |
Total |  | $ | 33,015,086 |

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