v3.26.1
DISCONTINUED OPERATION
 12 Months Ended
Dec. 31, 2025
Discontinued Operations and Disposal Groups [Abstract]  
DISCONTINUED OPERATION

Note 3 - DISCONTINUED OPERATION

 

On May 6, 2025, the Hong Kong subsidiary of AGM Holdings, AGM HK, entered into an Equity Transfer Agreement by and among AGM HK, Nanjing Lucun and Hong Kong Giant Electronics Co., Limited (“Giant Electronics”) for the sale of shares of Nanjing Lucun held by AGM HK to Giant Electronics (the “Equity Transfer Agreement”). Pursuant to the Equity Transfer Agreement, AGM HK will sell 100% of the Nanjing Lucun shares it holds to Giant Electronics for a total transfer consideration of $57,450,000. The closing of the sale contemplated under the Equity Transfer Agreement is subject to certain closing conditions. The transaction was closed on May 7, 2025, the Company recorded a loss from the disposition of $7,518,052.

 

The discontinued operations represent a strategic shift that has a major effect on the Company’s operations and financial results, which triggers discontinued operations accounting in accordance with ASC 205-20-45. The results of operations related to the discontinued operations for the years ended December 31, 2024 and 2023 were reported as loss from discontinued operations.

 

The results of discontinued operations of Nanjing Lucun for the years ended December 31, 2025, 2024 and 2023 are as follows:

 

   For the Years ended December 31, 
   2025   2024   2023 
Net revenues  $-   $23,871,417   $24,148,914 
Cost of revenues   (21,465)   (23,443,331)   (22,672,758)
Gross profit   (21,465)   428,086    1,476,156 
Operating expenses   (20,875)   (882,885)   (26,538,318)
Other income/(expenses).net   23,055    71,756    (70,220)
Loss before income tax  $(19,285)  $(383,043)  $(25,132,382)
Income tax benefit   3,089    94,501    6,277,197 
Loss from discontinued operation, net of income tax  $(16,196)  $(288,542)  $(18,855,185)

Assets and liabilities of the discontinued operations of Nanjing Lucun as of December 31, 2024 were as follows:

 

   December 31, 
   2024 
ASSETS    
Current assets：    
Cash and cash equivalents  $469 
Restricted cash   8,037 
Advance to suppliers   2,795,162 
Prepayment and other current assets   3,497,724 
Total current assets   6,301,392 
      
Non-current assets：     
Property, plant and equipment, net   6,512 
Operating lease right-of-use assets   55,334 
Deferred tax assets   6,247,083 
Total non-current assets   6,308,929 
TOTAL ASSETS  $12,610,321 
      
LIABILITIES     
Current liabilities：     
Accounts payable  $2,640 
Accrued expenses and other payables   1,233,311 
Advances from customers   4,537,799 
Deferred government grant - current   38,792 
Income tax payable   659,919 
Total current liabilities   6,472,461 
      
Non-current liabilities：     
Deferred government grant - non current   16,543 
Total non-current liabilities   16,543 
Total liabilities  $6,489,004