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Deferred Tax, Net

3 Months Ended

Mar. 31, 2021

Deferred Tax Assets Liabilities Net Disclosure [Abstract]

7. 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, 2021 and December 31, 2020, deferred tax assets consisted of the following:

	2021			2020
Accrued expenses	$	69,525		$	70,019
Write-off Erdos TCH net investment in sales-type leases		5,954,586			6,155,300
US NOL		310,424			254,035
PRC NOL		10,934,511			10,849,690
Total deferred tax assets		17,269,047			17,329,044
Less: valuation allowance for deferred tax assets		(17,269,047	)		(17,329,044	)
Deferred tax assets, net	$	-		$	-