Income Taxes

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 9 – 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, 2024, 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:

	Year Ended December 31,
	2024		2023
Current:
USA	$	-	$	-
China		307		-
Deferred:
USA		-		-
China		-		-
Provision for income taxes	$	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, 2024, and 2023 as follows:

	Year Ended December 31,
	2024			2023
Income tax benefit at federal statutory rate (21%)		(20,187	)		(32,437	)
Difference in foreign income tax rates		12,308			24,096
Change in valuation allowance		8,187			8,341
Provision for income taxes		307			-

The components of deferred taxes consist of the following at December 31, 2024 and 2023:

	December 31, 2024			December 31, 2023
Net operating loss carryforwards	$	20,465,740		$	20,457,553
Less: valuation allowance		(20,465,740	)		(20,457,553	)
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, 2023, and 2024, 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.