v3.26.3
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

Note 10 – Income Taxes

 

The Company is subject to taxation in the United States (USA) and its subsidiaries were incorporated in China and are governed by the Income Tax Law of China.

 

Deferred taxes represent the net tax effects of the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes. Temporary differences result primarily from the recording of tax benefits of net operating loss carry forwards.

 

As of December 31, 2025, the Company has an insufficient history to support the likelihood of ultimate realization of the benefit associated with the deferred tax asset. Accordingly, a valuation allowance has been established for the full amount of the net deferred tax asset.

 

The provision for income taxes consists of the following:

   2025   2024 
   Year Ended December 31, 
   2025   2024 
Current:        
USA  $-   $- 
China   12,905    307 
           
Deferred:          
USA   -    - 
China   -    - 
           
Provision for income taxes  $12,905   $307 

 

 

The Company’s effective income tax rate differs from the amount computed by applying the federal statutory income tax rate to loss before income taxes for the years ended December 31, 2025 and 2024 as follows:

 

   2025   2024 
   Year Ended December 31, 
   2025   2024 
         
Income tax benefit at federal statutory rate (21%)  $37,105   $(20,187)
Difference in foreign income tax rates   (41,948)   12,307 
Change in valuation allowance   17,748    8,187 
Provision for income taxes  $12,905   $307 

 

The components of deferred taxes consist of the following at December 31, 2025 and 2024:

 

  

December 31,

2025

  

December 31,

2024

 
         
Net operating loss carryforwards  $20,483,488   $20,465,740 
Less: valuation allowance   (20,483,488)   (20,465,740)
Net deferred tax assets  $-   $- 

 

Uncertain Tax Positions

 

Interest associated with unrecognized tax benefits is classified as income tax, and penalties are classified as selling, general, and administrative expenses in the statements of operations. As of December 31, 2024, and 2025, the Company had no unrecognized tax benefits and related interest and penalty expenses. Currently, the Company is not subject to examination by major tax jurisdictions.