v3.25.3
Income Taxes (Tables)
6 Months Ended
Jun. 30, 2025
Income Taxes [Abstract]  
Schedule of Income (Loss) Before Income Taxes

The Company’s (loss) income before income taxes includes the following for the six months ended June 30.

 

   2025   2024 
   (Unaudited)   (Unaudited) 
Non-PRC operations  $(445,352)  $(328,168)
PRC operations   (571,639)   620,407 
Total (loss) income before income taxes  $(1,016,991)  $292,239 
Schedule of Income Tax Expense

Income tax expense was comprised of the following for the six months ended June 30.

 

   2025   2024 
   (Unaudited)   (Unaudited) 
Current tax expense  $
-
   $799 
Deferred tax (benefit) expense   (100,882)   169,778 
Total income tax (benefit) expense  $(100,882)  $170,577 
Schedule of Deferred Tax Assets and Liabilities The cumulative tax effect at the expected rate of 25% of significant items comprising the net deferred tax amount is at June 30, 2025 and December 31, 2024 as follows.
   June 30,
2025
   December 31,
2024
 
   (Unaudited)     
Deferred tax assets        
Net operating loss  $88,939   $87,285 
Deferred revenue   10,136    13,496 
Unbilled cost   450,345    441,973 
Unbilled interest expenses   37,376    36,682 
Depreciation   7,421    5,586 
Software amortization   254,343    224,254 
Allowance for doubtful accounts   230,741    106,569 
Inventories obsolescence   (5,507)   (6,408)
Unrealized losses on trading securities   1,745    1,712 
Accrued Bonus   44,510    43,682 
Other   51,787    46,771 
  Total deferred tax assets   1,171,836    1,001,602 
Valuation allowance   (15,159)   (14,878)
Total deferred tax assets, net   1,156,677    986,724 
Deferred tax liabilities          
Unbilled revenue   (2,226,908)   (2,188,848)
Unbilled interest income   (365,574)   (318,899)
Deferred government subsidiary income   (41,286)   (40,519)
Unrealized gain on short-term investment   (37,976)   (25,575)
Other   (11,994)   (11,792)
  Total deferred tax liabilities   (2,683,738)   (2,585,633)
Net deferred tax liabilities, net  $(1,527,061)   (1,598,909)
Schedule of a Reconciliation of Income Tax Expense

Following is a reconciliation of income tax expense at the effective rate to income tax at the calculated statutory rates for the six months ended June 30.

 

   2025   2024 
   (Unaudited)   (Unaudited) 
PRC statutory tax rate   25.0%   25.0%
Effect of different tax rates in different jurisdictions   (10.9)%   28.1%
Permanent difference   (0.1)%   4.3%
Exemption rendered by local authorities   (4.1)%   1.0%
Effective tax rate   9.9%   58.4%