XML 27 R14.htm IDEA: XBRL DOCUMENT

Deferred Tax, Net

3 Months Ended

Mar. 31, 2020

Deferred Tax Assets Liabilities Net Disclosure [Abstract]

8. DEFERRED TAX, 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 March 31, 2020 and December 31, 2019, deferred tax liability consisted of the following:

	2020			2019
Non-current deferred tax assets
Accrued expenses	$	186,145		$	189,050
Interest income in sales-type leases on cash basis		-			853,265
Depreciation of fixed assets		-			2,938,605
Assets impairment loss		1,411,413			7,537,556
US NOL		266,817			3,246,655
PRC NOL		16,337,354			10,424,558

Non-current deferred tax liabilities
Net investment in sales-type leases		-			(6,685,021	)

Net non-current deferred tax assets		18,201,729			18,504,668
Less: valuation allowance for deferred tax assets		(18,201,729	)		(18,504,668	)
Non-current deferred tax liabilities, net	$	-		$	-