| CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY |
24. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY
The subsidiary did not pay any dividend to the
parent company for the periods presented. For the purpose of presenting parent only financial information, the parent company records
its investment in its subsidiary under the equity method of accounting. Such investment is presented on the separate condensed balance
sheets of the parent company as “Investment in subsidiaries and the income of the subsidiary is presented as “share of income
of subsidiary”. Certain information and footnote disclosures generally included in financial statements prepared in accordance with
U.S. GAAP have been condensed and omitted.
The parent company did not have significant capital
and other commitments, long-term obligations, or guarantees as of December 31, 2024 and 2023.
PARENT COMPANY BALANCE SHEETS
| | |
December 31,
2024 | | |
December 31,
2023 | |
| ASSETS | |
| | |
| |
| Cash and cash equivalents | |
$ | 1,088,565 | | |
$ | 150,071 | |
| Short-term investment | |
| 4,040,000 | | |
| 5,241,677 | |
| Other current assets | |
| 54,383 | | |
| 143,208 | |
| Due from subsidiaries, VIE and VIE’s subsidiaries | |
| 12,247,807 | | |
| 7,948,307 | |
| Investment in subsidiaries, VIE and VIE’s subsidiaries | |
| 5,113,612 | | |
| 5,756,419 | |
| Total Assets | |
$ | 22,544,367 | | |
$ | 19,239,682 | |
| | |
| | | |
| | |
| LIABILITIES AND EQUITY | |
| | | |
| | |
| Total Liabilities | |
$ | - | | |
$ | - | |
| | |
| | | |
| | |
| Commitments and Contingencies | |
| | | |
| | |
| | |
| | | |
| | |
| Shareholders’ Equity | |
| | | |
| | |
| Class A Ordinary Share (par value $0.001 per share, 450,000,000 shares authorized; 24,839,131 and 2,054,943* shares issued and outstanding on December 31, 2024 and 2023, respectively) | |
| 24,840 | | |
| 2,056 | |
| Class B Ordinary Share (par value $0.001 per share, 50,000,000 shares authorized; 549,772 and 549,772* shares issued and outstanding on December 31, 2024 and 2023, respectively) | |
| 550 | | |
| 550 | |
| Additional paid-in capital | |
| 29,059,063 | | |
| 25,133,933 | |
| Accumulated deficit | |
| (6,540,086 | ) | |
| (5,896,857 | ) |
| Total Shareholders’ Equity | |
| 22,544,367 | | |
| 19,239,682 | |
| Total Liabilities and Shareholders’ Equity | |
$ | 22,544,367 | | |
$ | 19,239,682 | |
| * | Retrospectively restated for the effect of share consolidation (see Note 18). | PARENT COMPANY STATEMENTS OF OPERATIONS
| | |
For the Years Ended
December 31, | |
| | |
2024 | | |
2023 | | |
2022 | |
| Equity in loss of subsidiaries | |
$ | (642,807 | ) | |
$ | (11,440,721 | ) | |
$ | (2,919,423 | ) |
| General and administrative expenses | |
| (192,233 | ) | |
| (82,620 | ) | |
| (23,193 | ) |
| Interest income | |
| 191,811 | | |
| 187,430 | | |
| 1,725 | |
| Net Loss | |
$ | (643,229 | ) | |
| (11,335,911 | ) | |
| (2,940,891 | ) |
PARENT COMPANY STATEMENTS OF CASH FLOWS
| | |
For the Years Ended
December 31, | |
| | |
2024 | | |
2023 | | |
2022 | |
| Cash Flows from Operating Activities: | |
| | |
| | |
| |
| Net Cash Provided by (Used in) Operating Activities | |
$ | 198,117 | | |
$ | (193,778 | ) | |
$ | 139,309 | |
| | |
| | | |
| | | |
| | |
| Cash Flows from Investing Activities: | |
| | | |
| | | |
| | |
| Proceeds from redemption of short-term investments | |
| 10,269,677 | | |
| - | | |
| - | |
| Investments in short-term investments | |
| (9,068,000 | ) | |
| (5,241,677 | ) | |
| - | |
| Loans (made to) repaid from subsidiaries, VIE and VIE’s subsidiaries | |
| (4,299,500 | ) | |
| 1,475,310 | | |
| (1,638,455 | ) |
| Net Cash Used in Investing Activities | |
| (3,097,823 | ) | |
| (3,766,367 | ) | |
| (1,638,455 | ) |
| | |
| | | |
| | | |
| | |
| Cash Flows from Financing Activities: | |
| | | |
| | | |
| | |
| Proceeds from issuance of common stocks in connection with direct offering, net off issuance cost | |
| 3,838,200 | | |
| - | | |
| 1,850,744 | |
| Net Cash Provided by Financing Activities | |
| 3,838,200 | | |
| - | | |
| 1,850,744 | |
| | |
| | | |
| | | |
| | |
| Net increase (decrease) in cash and cash equivalents | |
| 938,494 | | |
| (3,960,145 | ) | |
| 351,598 | |
| Cash and cash equivalents at beginning of year | |
| 150,071 | | |
| 4,110,216 | | |
| 3,758,618 | |
| Cash and cash equivalents at end of year | |
$ | 1,088,565 | | |
$ | 150,071 | | |
$ | 4,110,216 | |
|