v3.26.3
Income Taxes (Tables)
6 Months Ended
Jun. 30, 2026
Income Taxes [Abstract]  
Schedule of Loss Before Income Taxes he Company’s loss before income taxes includes the following for the six months ended June 30.

 

    2026     2025  
    (Unaudited)     (Unaudited)  
Non-PRC operations   $ (809,587 )   $ (445,352 )
PRC operations     (665,341 )     (571,639 )
Total loss before income taxes   $ (1,474,928 )   $ (1,016,991 )
Schedule of Income Tax Expense

Income tax expense was comprised of the following for the six months ended June 30.

 

    2026     2025  
    (Unaudited)     (Unaudited)  
Current tax expense   $ 389     $ -  
Deferred tax benefit     (105,252 )     (100,882 )
Total income tax benefit   $ (104,863 )   $ (100,882 )
Schedule of Deferred Tax Assets and Liabilities The cumulative tax effect at the expected rate of 25% of significant items comprising the net deferred tax amount at June 30, 2026 and December 31, 2025 as follows.

 

    June 30,
2026
    December 31,
2025
 
    (Unaudited)        
Deferred tax assets            
Net operating loss   $ 123,134     $ 60,681  
Deferred revenue     15,417       17,230  
Unbilled cost     475,467       461,325  
Unbilled interest     39,462       38,288  
Depreciation     11,486       9,373  
Software amortization     323,096       287,015  
Allowance for expected credit losses     367,413       232,109  
Inventories obsolescence     (6,198 )     (6,509 )
Unrealized losses on trading securities     2,283       1,787  
Accrued bonus     46,992       45,595  
Other     50,231       48,569  
Total deferred tax assets     1,448,783       1,195,463  
Valuation allowance     (76,599 )     (15,529 )
Total deferred tax assets, net     1,372,184       1,179,934  
Deferred tax liabilities                
Unbilled revenue     (2,344,731 )     (2,264,589 )
Unbilled interest income     (459,596 )     (420,187 )
Deferred government subsidy     (43,590 )     (42,293 )
Unrealized gain on short-term investment     (79,545 )     (60,877 )
Other     (3,864 )     (8,041 )
Total deferred tax liabilities     (2,931,326 )     (2,795,987 )
Deferred tax liabilities, net   $ (1,559,142 )   $ (1,616,053 )
Schedule of a Reconciliation of Income Tax Expense

Following is a reconciliation of income tax expense at the effective rate to income tax at the calculated statutory rates for the six months ended June 30.

 

    2026     2025  
    (Unaudited)     (Unaudited)  
Loss before income taxes   $ (1,474,928 )           $ (1,016,991 )        
Statutory tax rate of 25%     (368,732 )     25.0 %     (254,248 )     25.0 %
Reconciling items:                                
Tax effect of non-deductible expense     618       - %     570       (0.1 )%
Tax effect of PRC preferential tax rates     1,176       (0.1 )%     1,293       (0.1 )%
Effect of non-PRC entities not subject to PRC tax     202,164       (13.7 )%     111,338       (10.9 )%
Others     59,911       (4.1 )%     40,165       (3.9 )%
Income tax benefit   $ (104,863 )     7.1 %   $ (100,882 )     10.0 %