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Deferred Tax Liability, Net
 12 Months Ended
Dec. 31, 2019
Deferred Tax Liability, Net [Abstract]  
DEFERRED TAX LIABILITY, NET

9. DEFERRED TAX LIABILITY, NET

 

Deferred tax assets resulted from asset impairment loss which was temporarily non-tax deductible for tax purposes but expensed in accordance with US GAAP, interest income in sales-type leases which was recognized as income for tax purposes but not for book purpose as it did not meet revenue recognition in accordance with US GAAP, accrued employee social insurance that can be deducted for tax purposes in the future, and the difference between tax and accounting basis of cost of fixed assets which was capitalized for tax purposes and expensed as part of cost of systems in accordance with US GAAP. Deferred tax liability arose from the difference between tax and accounting basis of net investment in sales-type leases.

 

As of December 31, 2019 and 2018, deferred tax liability consisted of the following:

 

   2019   2018 
Non-current deferred tax assets        
Accrued expenses  $189,050   $186,779 
Interest income in sales-type leases on cash basis   853,265    658,307 
Depreciation of fixed assets   2,938,605    6,176,064 
Assets impairment loss   7,537,556    15,003,497 
Capitalized interest on CIP   -    2,531,120 
US NOL   3,246,655    3,114,083 
PRC NOL   10,424,558    1,617,861 
           
Non-current deferred tax liabilities          
Net investment in sales-type leases   (6,685,021)   (10,974,998)
           
Net non-current deferred tax assets   18,504,668    18,312,713 
Less: valuation allowance for deferred tax assets   (18,504,668)   (21,353,059)
Non-current deferred tax liabilities, net  $-   $(3,040,346)