Goodwill

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

13. Goodwill

The changes in the carrying amount of goodwill by reportable segment are as follows: 

	Ansheng		Fast			JSSH			JLCY		SDYC		Allinyson
Balance as of December 31, 2020		-		2,340,111			-			-		-		-
Goodwill acquired through acquisition	$	10,263,937		-			923,313			3,191,897		4,724,698		-
Goodwill impairment		-		(2,340,111	)		(923,313	)		-		-		-
Balance as of December 31, 2021	$	10,263,937		-			-			3,191,897		4,724,698		-
Goodwill acquired through acquisition		-		-			-			-		-		7,193,965
Goodwill impairment		-		-			-			-
Balance as of June 30, 2022	$	10,263,937		-			-			3,191,897		4,724,698		7,193,965

The goodwill related to the acquisition of Fast Approach was impaired as the result of actual financial performance being less than that originally forecasted and estimates of future cash flows are at the time of this report, are expected to be less than previously estimated. The global COVID 19 pandemic was a significant macroeconomic factor that contributed to the downward revisions of previous estimation and forecasts; accordingly, after management considered different factors including COVID 19 and performed an analysis by discounting future cash flows, it determined that the fair value of the Fast unit was less than the carrying value; therefore, the Company recorded impairment of goodwill to reflect the difference between fair value and the then previously unimpaired carrying value. Management will continue to monitor for additional deterioration of cash flows.

Goodwill related to JSSH was written off in its entirety as the unit experienced operating losses in the years ended December 31, 2021 and 2020, and based on past performance as guidance for future performance, management determined that discounted expected future cash flows and profitability from the unit were enough to support the carrying value for synergies that were expected to be realized when the Company originally acquired the unit.