| CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY |
22.
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, 2025 and
2024.
PARENT
COMPANY BALANCE SHEETS
| | |
December 31,
2025 | | |
December 31,
2024 | |
| ASSETS | |
| | |
| |
| Cash
and cash equivalents | |
$ | 79,976 | | |
$ | 1,088,565 | |
| Short-term
investment | |
| 1,750,059 | | |
| 4,040,000 | |
| Other
current assets | |
| 26,493 | | |
| 54,383 | |
| Due from
subsidiaries, VIE and VIE’s subsidiaries | |
| 15,639,807 | | |
| 12,247,807 | |
| Investment
in subsidiaries, VIE and VIE’s subsidiaries | |
| 2,443,215 | | |
| 5,113,612 | |
| Total
Assets | |
$ | 19,939,550 | | |
$ | 22,544,367 | |
| | |
| | | |
| | |
| LIABILITIES
AND EQUITY | |
| | | |
| | |
| Total
Liabilities | |
$ | - | | |
$ | - | |
| | |
| | | |
| | |
| Commitments
and Contingencies | |
| | | |
| | |
| | |
| | | |
| | |
| Shareholders’
Equity | |
| | | |
| | |
| Class A Ordinary Share (par value $0.008 per share, 2,250,000,000 shares authorized; 3,236,141 and 3,104,891 shares issued and outstanding on December 31, 2025 and 2024, respectively) * | |
| 25,890 | | |
| 24,840 | |
| Class B Ordinary Share (par value $0.008 per share, 250,000,000 shares authorized; 624,972 and 68,722 shares issued and outstanding on December 31, 2025 and 2024, respectively) * | |
| 5,000 | | |
| 550 | |
| Additional
paid-in capital | |
| 34,475,566 | | |
| 29,059,063 | |
| Deferred share compensation | |
| (1,716,667 | ) | |
| - | |
| Accumulated
deficit | |
| (12,850,239 | ) | |
| (6,540,086 | ) |
| Total
Shareholders’ Equity | |
| 19,939,550 | | |
| 22,544,367 | |
| Total
Liabilities and Shareholders’ Equity | |
$ | 19,939,550 | | |
$ | 22,544,367 | |
| * | Retrospectively restated for the effect of share consolidation (see Note 21). | PARENT
COMPANY STATEMENTS OF OPERATIONS
| |
|
For
the Years Ended
December 31, |
|
| |
|
2025 |
|
|
2024 |
|
|
2023 |
|
| Equity in loss of subsidiaries |
|
$ |
(2,670,397 |
) |
|
$ |
(642,807 |
) |
|
$ |
(11,440,721 |
) |
| General and administrative expenses |
|
|
(3,776,558 |
) |
|
|
(192,233 |
) |
|
|
(82,620 |
) |
| Interest income |
|
|
136,802 |
|
|
|
191,811 |
|
|
|
187,430 |
|
| Net Loss |
|
$ |
(6,310,153 |
) |
|
|
(643,229 |
) |
|
|
(11,335,911 |
) |
PARENT
COMPANY STATEMENTS OF CASH FLOWS
| |
|
For
the Years Ended
December 31, |
|
| |
|
2025 |
|
|
2024 |
|
|
2023 |
|
| Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
|
| Net Cash
Provided by (Used in) Operating Activities |
|
$ |
93,470 |
|
|
$ |
198,117 |
|
|
$ |
(193,778 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Investments in short-term investments |
|
|
(3,820,059 |
) |
|
|
(9,068,000 |
) |
|
|
(5,241,677 |
) |
| Proceeds from redemption of short-term investments |
|
|
6,110,000 |
|
|
|
10,269,677 |
|
|
|
- |
|
| Loans (made to) repaid
from subsidiaries, VIE and VIE’s subsidiaries |
|
|
(3,392,000 |
) |
|
|
(4,299,500 |
) |
|
|
1,475,310 |
|
| Net Cash Used in Investing
Activities |
|
|
(1,102,059 |
) |
|
|
(3,097,823 |
) |
|
|
(3,766,367 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Proceeds from issuance
of ordinary shares in connection with direct offering, net off issuance cost |
|
|
- |
|
|
|
3,838,200 |
|
|
|
- |
|
| Net Cash Provided
by Financing Activities |
|
|
- |
|
|
|
3,838,200 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net (decrease) increase in cash and cash equivalents |
|
|
(1,008,589 |
) |
|
|
938,494 |
|
|
|
(3,960,145 |
) |
| Cash and cash equivalents
at beginning of year |
|
|
1,088,565 |
|
|
|
150,071 |
|
|
|
4,110,216 |
|
| Cash and cash equivalents
at end of year |
|
$ |
79,976 |
|
|
$ |
1,088,565 |
|
|
$ |
150,071 |
|
|