XML 21 R10.htm IDEA: XBRL DOCUMENT

BALANCE SHEET COMPONENTS

6 Months Ended

Jun. 30, 2025

Organization, Consolidation and Presentation of Financial Statements [Abstract]

(4) BALANCE SHEET COMPONENTS

Property, equipment and software, net

Property, equipment and software, net consists of the following:

Schedule of equipment
	As of June 30, 2025			As of December 31, 2024
Internal use software	$	90,000		$	-
Equipment		2,622,829			2,621,706
Vehicles		129,220			-
Total property, equity and software		2,842,049			2,621,706
Accumulated depreciation and amortization		(2,573,633	)		(2,501,835	)
Total property, equipment and software, net	$	268,416		$	119,871

For the three months ended June 30, 2025 and 2024, depreciation and amortization was $22 thousand and $83 thousand, respectively. Depreciation and amortization expense was $72 thousand and $169 thousand for the years ended June 30, 2025 and 2024, respectively.

Intangible assets

As part of the asset acquisition completed on June 30, 2025, a substantial portion of the total purchase consideration was allocated to intangible assets, primarily consisting of acquired proprietary software, which represent a group of software code and associated patents that are expected to provide future economic benefits to the Company. The allocation of the purchase price was performed on a relative fair value basis in accordance with ASC 805-50. The acquired group of proprietary software is being amortized over 3 years, its estimated useful life.

Intangible assets consisted of the following at June 30, 2025 and December 31, 2024:

Schedule of intangible assets
	As of June 30, 2025						As of December 31, 2024
	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Acquired group of proprietary software	$	1,269,658	$	-	$	1,269,658	$	-	$	-	$	-
	$	1,269,658	$	-	$	1,269,658	$	-	$	-	$	-

Amortization expense was $0 thousand and $29 thousand in the three months ended June 30, 2025 and 2024, respectively. Amortization expense was $0 thousand and $33 thousand in the six months ended June 30, 2025 and 2024, respectively.

Estimated amortization expenses for the future years are as follows:

Schedule of Amortization
Years ending December 31,	Amortization
2025	$	211,610
2026		423,219
2027		423,219
2028		211,610
Total	$	1,269,658

Prepaid and other current assets

Prepaid and other current assets consist of the following:

Schedule of inventories
	June 30, 2025		December 31, 2024
Insurance fees	$	65,930	$	119,757
Cloud hosting fee		93,461		-
Other		20,351		15,000
Total prepaid and other current assets	$	179,742	$	134,757

Accrued expenses and other current liabilities

Accrued expenses and other current liabilities consist of the following:

Schedule of accrued expenses
	June 30, 2025		December 31, 2024
Payroll & related benefits	$	94,516	$	-
Professional fees		442,429		185,000
Value of shares to be issued		75,000		-
Sales allowances		26,905		26,905
Sales and use tax		81,708		81,708
Other⁽¹⁾		36,174		-
Total accrued expenses and other current liabilities	$	756,732	$	293,613

(1)

There was a balance of $7,232 due to a stockholder of the Company, Cao Yu, which represents the amount paid by Cao Yu to support the company’s normal operating activities.

Other payables

As of June 30, 2025, other payables included $1.4 million for the assets acquisition, $90 thousand for a software development, $20 thousand for advanced hosting fee, and $18 thousand for software maintenance, all payable to a single third-party vendor.