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Discontinued Operations | 12 Months Ended
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Dec. 31, 2024
Discontinued Operations |
Discontinued Operations | Note 4 – D iscontinued Operations On May 15, 2025, the Group closed the sale of its Electric Vehicle business (the “EV Business”), comprised of 100% equity interest in Jiyi, 100% equity interest in Wangbo, 70% equity interest in Shangchi Automobile (51% equity held by Wangbo and 19% equity held by Jiyi) and 100% equity interest of Shenzhen Yimao held by Shangchi Automobile to a third party for a consideration of $11,179,154 (RMB 81,600,000). The Group determined that the disposal of the EV Business met the criteria to be classified as a discontinued operation and, as a result, the EV Business’s historical financial results are reflected in the Group’s consolidated financial statements as a discontinued operation. The disposal of the EV Business represents a strategic shift that has a significant effect on the Group’s operations and financial results, which trigger discontinued operations accounting in accordance with ASC 205-20-45. The assets and liabilities related to the discontinued operations were retroactively classified as assets/liabilities of discontinued operations, while results of operations related to the discontinued operations, including comparatives, were retroactively reported as loss from discontinued operations for the years ended December 31, 2024, 2023 and 2022, respectively. The aggregated financial results of the discontinued business are set forth below:
|  | Year ended December 31, |  |  | Year ended December 31, |  |  | Year ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Revenues |  | $ | 65,778 |  |  | $ | 2,687,305 |  |  | $ | 520,624 |
Cost of revenues |  |  | 11,207 |  |  |  | 2,230,100 |  |  |  | 538,226 |
Gross profit (loss) |  |  | 54,571 |  |  |  | 457,205 |  |  |  | (17,602 | )
Operating expenses |  |  | 1,013,008 |  |  |  | 2,283,967 |  |  |  | 1,343,546 |
Loss from operations |  |  | (958,437 | ) |  |  | (1,826,762 | ) |  |  | (1,361,148 | )
Other expenses, net |  |  | (118,214 | ) |  |  | (57,849 | ) |  |  | (90,541 | )
Loss before income taxes |  |  | (1,076,651 | ) |  |  | (1,884,611 | ) |  |  | (1,451,689 | )
Provision for income taxes |  |  | - |  |  |  | - |  |  |  | - |
Loss from discontinued operations |  | $ | (1,076,651 | ) |  | $ | (1,884,611 | ) |  | $ | (1,451,689 | )
Assets and liabilities of the discontinued operations:
|  | December 31, |  |  | December 31, |
|  | 202 4 |  |  | 202 3 |
Assets |  |  |  |  |  |
Current assets |  |  |  |  |  |
Cash and cash equivalents |  | $ | 20,566 |  |  | $ | 29,459 |
Restricted cash |  |  | 104 |  |  |  | 34,134 |
Accounts receivable, net |  |  | 342,141 |  |  |  | 912 |
Inventory, net |  |  | 453,971 |  |  |  | 999,212 |
Advances to suppliers, net |  |  | 30,392 |  |  |  | 178,153 |
Prepaid taxes |  |  | 36,312 |  |  |  | 68,619 |
Prepaid expenses and other receivables, net |  |  | 3,700 |  |  |  | 10,636 |
Total current assets of discontinued operations |  |  | 887,186 |  |  |  | 1,321,125 |
Non-current assets |  |  |  |  |  |  |  |
Property, plant and equipment, net |  |  | 994,281 |  |  |  | 1,119,559 |
Intangible assets, net |  |  | 731 |  |  |  | 1,001 |
Total non-current assets of discontinued operations |  |  | 995,012 |  |  |  | 1,120,560 |
Total assets of discontinued operations |  | $ | 1,882,198 |  |  | $ | 2,441,685 |
Liabilities |  |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |  |
Accounts payable |  | $ | 1,530,190 |  |  | $ | 1,457,878 |
Due to related parties |  |  | 37,793 |  |  |  | 30,744 |
Customer deposits |  |  | 887,699 |  |  |  | 1,104,964 |
Taxes payable |  |  | - |  |  |  | 393 |
Accrued liabilities and other payables |  |  | 2,564,581 |  |  |  | 2,005,021 |
Total c urrent l iabilities of discontinued operations |  |  | 5,020,263 |  |  |  | 4,599,000 |
Total liabilities of discontinued operations |  | $ | 5,020,263 |  |  | $ | 4,599,000 |

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent + Details
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