Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
| Income Taxes [Abstract] |
|
| Schedule of Components of Profit (Loss) Before Income Tax Benefits (Expenses) |
The
components of profit (loss) before income tax benefits (expenses) are summarized as follows:
| |
|
For
the Years Ended
December 31, |
|
| |
|
2025 |
|
|
2024 |
|
|
2023 |
|
| Domestic (Cayman Islands) |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
| Foreign (PRC) |
|
|
(741,782 |
) |
|
|
3,233,722 |
|
|
|
(11,527,235 |
) |
| Foreign (Others) |
|
|
(5,026,903 |
) |
|
|
(3,171,966 |
) |
|
|
(449,764 |
) |
| Total |
|
$ |
(5,768,685 |
) |
|
$ |
61,756 |
|
|
$ |
(11,976,999 |
) |
|
| Schedule of Income Tax (Expenses) Benefits |
Income
tax (expenses) benefits consist of the following:
| | |
For
the Years Ended December 31, | |
| | |
2025 | | |
2024 | | |
2023 | |
| Current income tax expenses | |
| | |
| | |
| |
| Domestic (Cayman Islands) | |
$ | - | | |
$ | - | | |
$ | - | |
| Foreign (PRC) | |
| (128,172 | ) | |
| (43,516 | ) | |
| (69,467 | ) |
| Foreign (Others) | |
| (500 | ) | |
| (4,002 | ) | |
| - | |
| Total current income
tax expenses | |
| (128,672 | ) | |
| (47,518 | ) | |
| (69,467 | ) |
| Deferred income tax benefits
(expenses) | |
| | | |
| | | |
| | |
| Domestic (Cayman Islands) | |
| - | | |
| - | | |
| - | |
| Foreign (PRC) | |
| 82,490 | | |
| (287,651 | ) | |
| 806,092 | |
| Foreign (Others) | |
| - | | |
| - | | |
| (66,865 | ) |
| Total deferred income
tax benefits (expenses) | |
| 82,490 | | |
| (287,651 | ) | |
| 739,227 | |
| Total
income tax (expenses) benefits | |
$ | (46,182 | ) | |
$ | (335,169 | ) | |
$ | 669,760 | |
The
following table presents income taxes paid, net of refunds, disaggregated by jurisdiction:
| | |
For
the Years Ended December 31, | |
| | |
2025 | | |
2024 | | |
2023 | |
| Income taxes paid, net of refunds | |
| | |
| | |
| |
| Domestic (Cayman Islands) | |
$ | - | | |
$ | - | | |
$ | - | |
| Foreign (PRC) | |
| 126,089 | | |
| 45,444 | | |
| 114,001 | |
| Foreign (Others) | |
| 500 | | |
| 500 | | |
| 500 | |
| Total
income taxes paid, net of refunds | |
$ | 126,589 | | |
$ | 45,944 | | |
$ | 114,501 | |
|
| Schedule of Reconciliation of the Statutory Tax Rate to the Effective Tax Rate |
Below
is a reconciliation of the statutory tax rate to the effective tax rate after the adoption of ASU 2023-09:
| | |
For
the Years Ended December 31, | |
| | |
2025 | | |
2024 | | |
2023 | |
| | |
Amount | | |
Effective
tax rate | | |
Amount | | |
Effective
tax rate | | |
Amount | | |
Effective
tax rate | |
| Income
tax expense at Cayman statutory rate | |
$ | - | | |
| - | % | |
$ | - | | |
| - | % | |
$ | - | | |
| - | % |
| Effect of foreign tax rates | |
| (375,755 | ) | |
| 6.51 | % | |
| (471,337 | ) | |
| (763.22 | )% | |
| (3,301,850 | ) | |
| 27.57 | % |
| Effect
of non-deductible expenses | |
| 5,522 | | |
| (0.10 | )% | |
| 59,812 | | |
| 96.85 | % | |
| 312,302 | | |
| (2.61 | )% |
| Effect
of research and development credits | |
| - | | |
| - | % | |
| (12,623 | ) | |
| (20.44 | )% | |
| (427,160 | ) | |
| 3.57 | % |
| Effect
of deferred tax rate change | |
| - | | |
| - | % | |
| - | | |
| - | % | |
| 2,350,577 | | |
| (19.63 | )% |
| Effect
of changes in valuation allowance | |
| 416,415 | | |
| (7.21 | )% | |
| 759,317 | | |
| 1,229.54 | % | |
| 396,371 | | |
| (3.31 | )% |
| Total
income tax expenses (benefits) | |
$ | 46,182 | | |
| (0.80 | )% | |
$ | 335,169 | | |
| 542.73 | % | |
$ | (669,760 | ) | |
| 5.59 | % |
|
| Schedule of Deferred Tax Assets |
Deferred
tax assets as of December 31, 2025 and 2024 consist of the following:
| | |
December 31,
2025 | | |
December 31,
2024 | |
| Deferred tax assets: | |
| | |
| |
| Net operating loss carrying forward | |
$ | 1,891,291 | | |
$ | 1,706,177 | |
| Share-based compensation | |
| 259,023 | | |
| 195,422 | |
| Lease liabilities | |
| 14,704 | | |
| 21,281 | |
| Others | |
| 93,891 | | |
| 25,249 | |
| Less: Deferred tax liability | |
| (169,184 | ) | |
| (201,872 | ) |
| Less: Valuation allowance
on deferred tax assets | |
| (2,045,531 | ) | |
| (1,626,832 | ) |
| Deferred
tax assets, net | |
$ | 44,194 | | |
$ | 119,425 | |
| Deferred tax liability | |
| | | |
| | |
| Changes in fair value of short-term investments | |
| 37,179 | | |
| 22,879 | |
| Downward adjustments in investments in non-marketable
securities | |
| (5,781 | ) | |
| (6,153 | ) |
| Right-of-use assets | |
| 12,105 | | |
| 15,739 | |
| Unbilled revenue | |
| 147,941 | | |
| 349,045 | |
| Less: Deferred tax assets | |
| (169,184 | ) | |
| (201,872 | ) |
| Deferred tax liability,
net | |
$ | 22,260 | | |
$ | 179,638 | |
|