Taxes (Tables)
|
6 Months Ended |
Jun. 30, 2025 |
Taxes [Abstract] |
|
Schedule of Income Before Provision for Income Taxes |
(Loss) income before provision for income taxes
is attributable to the following geographic locations for the six months ended June 30, 2025 and 2024:
| |
For the Six
Months Ended June 30, | |
| |
2025 | | |
2024 | |
Cayman Islands | |
$ | (237,780 | ) | |
$ | 403,760 | |
PRC | |
| 480,596 | | |
| 644,983 | |
United States | |
| (1,229,177 | ) | |
| (960,466 | ) |
Total (loss) income before income taxes | |
$ | (986,361 | ) | |
$ | 88,277 | |
|
Schedule of Components of the Income Tax Provision |
The components of the income tax provision were
as follows:
| |
For the Six
Months Ended June 30, | |
| |
2025 | | |
2024 | |
Current tax provision | |
| | |
| |
Cayman Islands | |
$ | - | | |
$ | - | |
BVI | |
| - | | |
| - | |
Hong Kong | |
| - | | |
| - | |
PRC | |
| 62,432 | | |
| 64,865 | |
United States | |
| - | | |
| - | |
| |
$ | 62,432 | | |
$ | 64,865 | |
Deferred tax provision | |
| | | |
| | |
Cayman Islands | |
$ | - | | |
$ | - | |
BVI | |
| - | | |
| - | |
Hong Kong | |
| - | | |
| - | |
PRC | |
| - | | |
| - | |
United States | |
| - | | |
| - | |
| |
| - | | |
| - | |
Income tax provisions | |
$ | 62,432 | | |
$ | 64,865 | |
|
Schedule of Income Tax Provision Computed Based on PRC Statutory Income Tax Rate |
Reconciliation of the differences between the
income tax provision computed based on PRC statutory income tax rate and the Company’s actual income tax provision for the six months
ended June, 2025 and 2024 are as follows:
| |
For the Six
Months Ended June 30, | |
| |
2025 | | |
2024 | |
Income tax (benefit) expense computed based on PRC statutory rate | |
$ | (246,590 | ) | |
$ | 22,069 | |
Favorable tax rate and tax exemption impact in PRC entities (a) | |
| (57,717 | ) | |
| (96,381 | ) |
Effect of rate differential for non-PRC entities | |
| 108,612 | | |
| (62,521 | ) |
Change in valuation allowance | |
| 258,127 | | |
| 201,698 | |
Total income tax provisions | |
$ | 62,432 | | |
$ | 64,865 | |
(a) | During the six months ended June, 2025 and 2024, Xinjiang United Family and all its branch offices were subject to 25% income tax rate. For the six months ended June 30, 2025, 14 of these UFG entities were subject to income tax assessed at 0.5% of TNI that ranged from RMB33,000 to RMB180,000 per month. For the six months ended June 30, 2024, 12 of these UFG entities were subject to income tax assessed at 0.5% of TNI that ranged from RMB33,000 to RMB180,000 per month. The rest of the UFG entities were exempted from paying income tax. For the six months ended June 30, 2025 and 2024, the tax saving as the result of the favorable tax rates and tax exemption amounted to $57,717 and $96,381, respectively, and per share effect of the favorable tax rate and tax exemption was $0.16 and $0.62, respectively. |
|
Schedule of Deferred Tax Assets, Net |
The Company’s deferred tax assets, net was comprised of the following:
| |
June 30, 2025 | | |
December 31, 2024 | |
Net operating loss | |
$ | 3,639,998 | | |
$ | 3,381,871 | |
Total deferred tax assets | |
| 3,639,998 | | |
| 3,381,871 | |
Valuation allowance | |
| (3,639,998 | ) | |
| (3,381,871 | ) |
Total deferred tax assets, net | |
$ | - | | |
$ | - | |
|
Schedule of Taxes Payable |
Taxes payable consisted of the following:
| |
June 30, 2025 | | |
December 31, 2024 | |
Income tax payable | |
$ | 16,909 | | |
$ | 7,899 | |
Value added tax payable | |
| 27,477 | | |
| 2,440 | |
Other taxes payable | |
| 129,904 | | |
| 38,373 | |
Total taxes payable | |
$ | 174,290 | | |
$ | 48,712 | |
|