v3.26.3
Taxes (Tables)
6 Months Ended
Jun. 30, 2026
Taxes [Abstract]  
Schedule of Income Before Taxes by Geographic Area

The income before taxes by geographic area is as follows:

 

Loss before taxes:   For the
Six Months
 Ended
June 30,
2026
    For the
Six Months
 Ended
June 30,
2025
 
             
China   $ (1,384,896 )   $ (754,674 )
Japan     (272,171 )     1,184,949  
USA     753,504       (26,085 )
Germany     (122,381 )     (26,310 )
Cayman     (15,713,828 )     (9,044,435 )
Singapore     (92,269 )      
Total loss before taxes   $ (16,832,041 )   $ (8,666,555 )
Schedule of Components of the Income Tax Provision

The components of the income tax provision are as follows:

 

    For the
Six Months
 Ended
June 30,
2026
    For the
Six Months
 Ended
June 30,
2025
 
             
Current income tax expense   $ 214,016     $ 256,389  
Deferred income tax expense     (394,377 )     (191,703 )
Total (benefit) provision for income taxes   $ (180,361 )   $ 64,686  
Schedule of Reconciles the PRC Statutory Rate

The following table reconciles the PRC statutory rate to the Company’s effective tax rate:

 

    For the
Six Months
 Ended
June 30,
2026
    For the
Six Months
 Ended
June 30,
2025
 
             
PRC statutory tax rate     25 %     25 %
Effect of different tax jurisdiction     (23.4 )%     (24.3 )%
Non-deductible items*     (0.5 )%     (1.4 )%
Effective tax rate     1.1 %     (0.7 )%

 

* Non-deductible items represent excess expenses and losses not deductible for PRC tax purpose.
Schedule of Deferred Tax Assets and Liabilities

The following table summarizes deferred tax assets and liabilities resulting from differences between financial accounting basis and tax basis of assets and liabilities:

 

    June 30,
2026
    December 31,
2025
 
             
Deferred tax assets:            
Allowance for credit losses   $ 448,038     $ 258,510  
Net operating losses     646,305       426,337  
Total deferred tax assets   $ 1,094,343     $ 684,847  
Schedule of Taxes Payable

Taxes payable consists of the following:

 

    June 30,
2026
    December 31,
2025
 
             
Income tax payable   $ 538,952     $ 399,156  
VAT payable     628,806       482,587  
Other taxes payable           2,951  
Total taxes payable   $ 1,167,758     $ 884,694