v3.26.1
Discontinued Operations
 6 Months Ended 12 Months Ended
Jun. 30, 2026
Dec. 31, 2025
Discontinued Operations and Disposal Groups [Abstract]    
Discontinued Operations

Note 5 – Discontinued Operations

 

Management intended to change its operating focus and entered into an agreement with a related party to sell certain assets and liabilities of RLSP. On November 20, 2025, the Company completed the disposition of the former PRC subsidiary pursuant to the Agreement entered into on November 20, 2025. The Company concluded that, in aggregate, the sale of the business in the PRC segment met the criteria for discontinued operations presentation in 2025. As a result, each of these businesses has been reclassified to discontinued operations in these financial statements for all periods presented. Such assets and liabilities were classified as assets and liabilities held for sale until the transaction closed on November 30, 2025.

 

 

For the six months ended June 30, 2026 and 2025, the net loss from discontinued operations was $Nil and $521,889. For the three months ended June 30, 2026 and 2025, the net loss from discontinued operations was $Nil and $256,404

 

 Schedule of Consolidated Statements of Gain (Loss)

 Schedule of Cash Flow From Discontinued Operations

Note 5 – Discontinued Operations

 

Management intended to change its operation focus and entered into an agreement with a related party to sell certain assets and liabilities of RLSP. On November 20, 2025, the Company completed the disposition of the Former PRC Subsidiary pursuant to the Agreement entered on November 20, 2025. The Company concluded that, in aggregate, the sales of the businesses in PRC segment met the criteria for discontinued operations presentation in 2025. As a result, each of these businesses has been reclassified to discontinued operations in these financial statements for all periods presented. Such assets and liabilities are classified as assets and liabilities held for sale, which was closed on November 30, 2025.

 

 

Assets and Liabilities of Discontinued Operations

 

As previously described, assets and liabilities of discontinued operations are presented separately in the Consolidated Balance Sheets for all periods presented. The following table presents a reconciliation of the carrying amounts of the major classes of assets and liabilities of discontinued operations to the total assets and liabilities of discontinued operations as presented on the Company’s Consolidated Balance Sheets:

 

Schedule of Assets and Liabilities of Discontinued Operations

   November 30, 2025   December 31, 2024 
         
Assets of discontinued operations:          
Current assets:          
Cash  $12,283    11,980 
Accounts receivables   135,822    132,473 
Accounts receivables – related parties   8,505,323    8,295,591 
Advances to vendors   43,801    42,721 
Advances to vendors and other receivable- related parties   238,810    232,922 
Inventories, net   743,115    724,791 
Other current assets   500,822    486,513 
Total current assets held for sale  $10,179,976    9,926,991 
Noncurrent assets:          
Plant and equipment, net   9,494,729    9,864,914 
Intangible assets, net   1,911,948    1,902,930 
Total assets of discontinued operations on Consolidated Balance Sheets  $21,586,653    21,692,835 
           
Liabilities of discontinued operations:          
Current liabilities:          
Borrowings  $4,886,989    4,766,482 
Borrowings– related parties   183,318    178,797 
Accounts payables   7,560,998    7,374,250 
Accounts payables – related parties   7,369,491    7,187,767 
Other payables - related parties   816,226    746,309 
Advances from customers   352,975    344,271 
Other current liabilities   821,359    560,683 
Total current liabilities   21,991,356    21,158,559 
Total assets of discontinued operations on Consolidated Balance Sheets  $21,991,356    21,158,559 

 

Gain (Loss) from Discontinued Operations

 

The following table provides details about the major classes of line items constituting “Gain (Loss) from discontinued operations” as presented on the Company’s Consolidated Statements of Gain (Loss):

Schedule of Consolidated Statements of Gain (Loss)

   2025   2024 
   For the years ended December 31 
   2025   2024 
     
Sales  $-   $5,245 
Sales-related party   -    6,924,461 
Total        6,929,706 
           
Cost of sales-production   -    6,922,148 
Cost of OEM   -    22,776 
Loss on factory relocation   -    359,015 
Loss on idle capacity   586,401    365,310 
Total cost of sales   586,401    7,669,249 
Gross (loss) profit   (586,401)   (739,543)
           
Operating Expenses          
Selling expenses        20,426 
General & administrative expenses   89,721    504,502 
Total operation expenses   89,721    524,928 
(Loss) income from operation   (676,122)   (1,264,471)
           
Other income (expenses):          
Interest expenses   (265,586)   (356,438)
Other income (expenses)   -    (55,399)
Gain on forgiveness of accounts payable   2,165,629      
Total other (expenses) income, net   1,900,043    (411,837)
           
Gain (loss) from discontinued operations before income taxes  $1,223,921    (1,676,308)
Gain on disposal, net   3,578,076      
Income tax expenses        (8,609)
Gain (loss) from discontinued operations, net of income taxes  $4,801,998    (1,667,699)

 

 

Cash Flow From Discontinued Operations

   2025   2024 
   For the years ended December 31 
   2025   2024 
     
Cash flow of discontinued operations    
Net cash provided by operating activities  $     -   $(100,781)
Net cash provided by investing activities   -    (1,947,584)
Cash flow provided by discontinued operations   -    (2,048,365)