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<p id="xdx_806_eus-gaap--OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock_z7fy3O3AmRF9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">NOTE 1. ORGANIZATION AND PRINCIPAL ACTIVITIES Hudson Capital Inc. (“HUSN” or the “Company”), formerly known as China Internet Nationwide Financial Services, Inc., incorporated in the British Virgin Islands (the “BVI”) on September 28, 2015, is engaged in the business of providing financial advisory services to meet the financial and capital needs of its clients, which comprise largely of small-to-medium sized enterprises, through the Company’s wholly-owned subsidiaries. On April 10, 2020, the board of directors of China Internet Nationwide Financial Services, Inc. (“CIFS”) resolved to change the Company’s name to “Hudson Capital Inc.” to re-brand the Company and better reflect the plans for its next phase of growth. The name change was effected with the British Virgin Islands Registrar of Corporate Affairs on April 23, 2020 and its name change and new ticker symbol on the Nasdaq was changed to HUSN with effect from May 8, 2020. The Company offers commercial payment advisory services, international corporate financing advisory services, intermediary bank loan advisory services and technical services. The Company’s wholly owned subsidiaries include: Hongkong Internet Financial Services Limited, (“HKIFS’) which was established in HongKong on October 7, 2015, and Beijing Yingxin Yijia Internet Technology Co., Ltd., (“Yingxin Yijia”) which was established on December 31, 2015 in Beijing, China by HKIFS. On September 2, 2019, Hong kong Shengqi technology limited(“HKSQ”) company became a shareholder of Beijing Yingxin Yijia. HKSQ was incorporated in Hong Kong on August 29, 2019. Mr. Lin Jianxin is a shareholder of HKSQ. On September 26, 2019, a series of agreements were entered into among HKIFS, HK Shengqi and its shareholders (the “VIE Agreements”). As a result of the VIE Agreements, HK become the primary beneficiary of HKSQ. HUSN is able to exercise control over Sheng Ying Xin and was entitled to substantially all of the economic benefits of Ying Xin Yi Jia through HKSQ, and HUSN treats Ying Xin Yi Jia as its variable interest entity (“VIE”) under U.S. GAAP. As a result, the results of operations, assets and liabilities of Ying Xin Yi Jia and its subsidiary (collectively “VIEs”) have been included in the accompanying consolidated financial statements. Beijing Sheng Ying Xin Management Consulting Co., Ltd. (“Sheng Ying Xin”) was incorporated in Beijing, China on September 16, 2014. On December 29, 2016, Sheng Ying Xin incorporated Kashgar Sheng Yingxin Enterprise Consulting Co., Ltd. (“Kashgar SYX”) in the People’s Republic of China with registered capital of RMB5,000,000 (approximately $726,600), which capital has to be contributed in full by December 31, 2026. The legal representative of Kashgar SYX is Mr. Shaoyong Huang, who is also a <span id="xdx_907_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20161229__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--ShengYingXinMember_zWy7GfycaAd7" title="Percentage of ownership of subsidiary">1% equity shareholder of Sheng Ying Xin. HUSN is <span id="xdx_90A_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20140916__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--ShengYingXinMember_zuQOMfU4amBb" title="Percentage of ownership of subsidiary">60.22% owned by Mr. Jianxin Lin, who also owned 99% of Sheng Ying Xin directly and 1% of Sheng Ying Xin indirectly since its inception, September 16, 2014; Mr. Jianxin Lin is the former chief executive officer of both HUSN and Sheng Ying Xin. So HUSN and Sheng Ying Xin were considered to be under common control since September 28, 2015. On April 26, 2016, a series of agreements were entered into among Yingxin Yijia, Sheng Ying Xin and its shareholders (the “VIE Agreements”). As a result of the VIE Agreements, Yingxin Yijia become the primary beneficiary of Sheng Ying Xin. HUSN is able to exercise control over Sheng Ying Xin and was entitled to substantially all of the economic benefits of Sheng Ying Xin through Yingxin Yijia, and HUSN treats Sheng Ying Xin as its variable interest entity (“VIE”) under U.S. GAAP. As a result, the results of operations, assets and liabilities of Sheng Ying Xin and its subsidiary (collectively “VIEs”) have been included in the accompanying consolidated financial statements. Since HUSN and its subsidiaries were formed in 2015 and did not have significant operations since inception as well as HUSN and Sheng Ying Xin are under common control, the VIE Agreements dated April 26, 2016 were considered a capital transaction in substance. Accordingly, the consolidated balance sheets as of December 31, 2019 and 2018 include the accounts and balances of HUSN and its subsidiaries, Sheng Ying Xin and its subsidiaries at their respective carrying values. The consolidated statements of income and comprehensive income for the period from inception through September 28, 2015 were the historical operations of Sheng Ying Xin. On July 28, 2017, HUSN completed its initial public offering (“IPO”) and issued <span id="xdx_903_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20170727__20170728__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember__srt--TitleOfIndividualAxis__custom--NewInvestorsMember_zajb3r0VWAlg" title="Number of shares issued">2,023,146 shares of common stock to investors at a price of $10.00 per share for a total of $<span id="xdx_902_eus-gaap--StockIssuedDuringPeriodValueNewIssues_pp0p0_c20170727__20170728__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember__srt--TitleOfIndividualAxis__custom--NewInvestorsMember_zwErLrNLziVl" title="Number of shares issued">20,231,460 before underwriting discounts and commissions and offering expenses of $1,262,562 and deferred issuing cost of $763,365. According to the underwriting agreement signed on May 9,2017, the Company issued warrants to the underwriter to purchase 91,042 ordinary shares upon the successful completion of the IPO at an exercise price of 120% of the IPO price, namely $12 dollars per share, and exercisable for two years. On November 21, 2017 the underwriter exercised all the warrants in connection with the IPO to purchase 91,042 shares. As of December 31, 2017 the number of shares issued and outstanding is 22,114,188. On March 10, 2017, Sheng Ying Xin set up a wholly owned subsidiary Fu Hui (Shenzhen) Commercial Factoring Co., Ltd (“FuhuiSZ”) which mainly provides supply chain financing to commercial enterprises. On September 19, 2017 Sheng Ying Xin set up another wholly owned subsidiary Yingda Xincheng (Beijing) Insurance Broker Co., Ltd (“Yin Da Xin Cheng”) which mainly provides insurance brokerage services. On November 23, 2017, Sheng Ying Xin acquired a <span id="xdx_904_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20171123__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--ShengYingXinMember_zKtKivZD3utg" title="Percentage of ownership of subsidiary">100% equity interest in Beijing Anytrust Information Technology Co., Ltd (“Anytrust”) which mainly provides enterprise financial data services, including system management, application development, business intelligence and maintenance services. On September 25, 2019, Yin Da Xin Cheng carried out industrial and commercial deregistration. On May 25, 2018, HKIFS set up a wholly owned subsidiary CIFS (Xiamen) Fianncial leasing company which mainly provides financial leasing services to commercial enterprises. Also on May 25, 2018, Sheng Yin Xin set up another wholly owned subsidiary Fuhui (Xiamen) Commercial Factoring Co., Ltd which mainly provides factoring services to commercial enterprises. On July 11, 2018 Sheng Ying Xin set up another wholly owned subsidiary Zhizhen Investment & Research (Beijing) Information Consulting Co., Ltd which mainly provides investment research services. On July 25, 2018, Sheng Ying Xin set up a wholly-owned subsidiary Hangzhou Yuchuang Investment Partnership (Limited Partnership) which is an investment vehicle for our strategic investing activities. On December 30, 2018, Sheng Yin Xin disposed Anytrust and transferred its equity interest in Anytrust to Mr. Jainxin Lin, the Company’s Chief Executive Officer and Chairman of the Board, with no consideration and incurred approximate loss of $2,062,000. On September 2, 2019, Hongkong Shengqi Technology Limited (“HKSQ”) became a shareholder of WFOE. HKSQ was incorporated in Hong Kong on August 29, 2019. Mr. Jianxin Lin is the sole shareholder of HKSQ. On September 26, 2019, a series of agreements were entered into among HKIFS, HKSQ and its shareholder (the “HKSQ VIE Agreements”). As a result of the HKSQ VIE Agreements, HKIFS become the primary beneficiary of HKSQ. The contractual agreements among HKSQ, WFOE and Sheng Ying Xin essentially confer control and management as well as the economic benefits of Sheng Ying Xin onto WFOE. In spite of the shareholder change in WFOE, we are able to retain full control and management over Sheng Ying Xin and are still entitled to substantially all of the economic benefits of WFOE through the HKSQ VIE Agreements. Accordingly, the results of operations, assets and liabilities of HKSQ, WFOE and Sheng Ying Xin have been included in the accompanying consolidated financial statements. On April 9, 2020, we incorporated a New York subsidiary, Hudson Capital USA Inc. On September 9, 2020, we incorporated a Delaware subsidiary, Hudson Capital Merger Sub I Inc. On September 9, 2020, we incorporated a Delaware subsidiary, Hudson Capital Merger Sub II Inc. As of December 31, 2021, the Company’s corporate structure is set forth below: <img alt="" src="form20-f_009.jpg"/> The following is a summary of the VIE agreements: Exclusive Business Cooperation Agreement Pursuant to the terms of the certain Exclusive Business Cooperation Agreement dated April 26, 2016, between Sheng Ying Xin and Yingxin Yijia (the “Exclusive Business Cooperation Agreement”), Yingxin Yijia is the exclusive technology services and consultancy service provider to Sheng Ying Xin. Sheng Ying Xin agreed to pay Yingxin Yijia all fees payable for technology services and consultancy service, the amount of which equals <span id="xdx_907_ecustom--PercentageOfNetProfit_iI_dp_c20160426__us-gaap--TypeOfArrangementAxis__custom--ExclusiveBusinessCooperationAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ShengYingXinMember_ze4MPr53hBS2" title="Percentage of net profit">100% of the net profit of Sheng Ying Xin. Any payment from Sheng Ying Xin to Yingxin Yijia must comply with applicable Chinese laws. Yingxin Yijia is also obligated to bears all losses of Sheng Ying Xin. Further, the parties agreed that Yingxin Yijia shall retain sole ownership of all intellectual property developed in connection with providing technology services to Sheng Ying Xin. The Exclusive Business Cooperation Agreement has a <span id="xdx_901_ecustom--AgreementTerm_dxL_c20160425__20160426__us-gaap--TypeOfArrangementAxis__custom--ExclusiveBusinessCooperationAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ShengYingXinMember_zALKNr1Kh2g3" title="Agreement term::XDX::P10Y">ten-year term. The term of these agreements may be extended if confirmed in writing by Yingxin Yijia, prior to the expiration of the term. The extended term shall be determined by Yingxin Yijia, and Sheng Ying Xin shall accept such extended term unconditionally. Pursuant to the terms of the certain Exclusive Business Cooperation Agreement dated September 26, 2019, between HKIFS and HKSQ (the “Exclusive Business Cooperation Agreement”), HKIFS is the exclusive technology services and consultancy service provider to HKSQ. HKSQ agreed to pay HKIFS all fees payable for technology services and consultancy service, the amount of which equals 100% of the net profit of HKSQ. Any payment from HKSQ to HKIFS must comply with applicable Chinese laws. HKIFS is also obligated to bears all losses of HKSQ. Further, the parties agreed that HKIFS shall retain sole ownership of all intellectual property developed in connection with providing technology services to HKSQ. The Exclusive Business Cooperation Agreement has a ten-year term. The term of these agreements may be extended if confirmed in writing by HKIFS, prior to the expiration of the term. The extended term shall be determined by HKIFS, and HKSQ shall accept such extended term unconditionally. Power of Attorney Pursuant to the terms of a certain Power of Attorney Agreement dated April 26, 2016, among Yingxin Yijia and the shareholders of Sheng Ying Xin (the “Power of Attorney”), each of the shareholders of Sheng Ying Xin irrevocably appointed Yingxin Yijia as their proxy to exercise on each of such shareholder’s behalf all of their voting rights as shareholders pursuant to PRC law and the Articles of Association of Sheng Ying Xin, including the appointment and election of directors of Sheng Ying Xin. The term of the Power of Attorney is valid so long as such shareholder is a shareholder of Sheng Ying Xin. Pursuant to the terms of a certain Power of Attorney Agreement dated September 26, 2019, among HKIFS and the shareholders of HKSQ (the “Power of Attorney”), each of the shareholders of HKSQ irrevocably appointed HIIFS as their proxy to exercise on each of such shareholder’s behalf all of their voting rights as shareholders pursuant to PRC law and the Articles of Association of HKSQ, including the appointment and election of directors of HKSQ. The term of the Power of Attorney is valid so long as such shareholder is a shareholder of HKSQ. The contractual agreements between WFOE and Sheng Ying Xin essentially confer control and management as well as the economic benefits of Sheng Ying Xin onto WFOE. In spite of the shareholder change in WFOE, we are able to retain full control and management over Sheng Ying Xin and are still entitled to substantially all of the economic benefits of WFOE through the HKSQ VIE Agreements. Exclusive Option Agreement Pursuant to the terms of a certain Exclusive Option Agreement dated April 26, 2016, among Yingxin Yijia, Sheng Ying Xin and the shareholders of Sheng Ying Xin (the “Exclusive Option Agreement”), the shareholders of Sheng Ying Xin granted Yingxin Yijia an irrevocable and exclusive purchase option (the “Option”) to acquire Sheng Ying Xin’s equity interests and/or remaining assets, but only to the extent that the acquisition does not violate limitations imposed by PRC law on such transactions. Accordingly, the Option is exercisable at any time at Yingxin Yijia’s discretion so long as such exercise and subsequent acquisition of Sheng Ying Xin does not violate PRC law. The consideration for the exercise of the Option is RMB <span id="xdx_903_ecustom--ConsiderationForExerciseOption_pp0p0_uRMB_c20160425__20160426__us-gaap--TypeOfArrangementAxis__custom--ExclusiveOptionAgreementMember_zLJENLjDYJC" title="Consideration for exercise option">1 in total. To the extent Sheng Ying Xin shareholders receive any of such consideration, the Option requires Sheng Ying Xin shareholders to transfer (and not retain) the same to Sheng Ying Xin or Yingxin Yijia. The Exclusive Option Agreement has a ten-year term. The term of these agreements may be extended if confirmed in writing by Yingxin Yijia, and if no written confirmation was obtained from Yingxin Yijia, the Exclusive Option Agreement will be automatically renewed, the term of the renewed agreement will be determined till Yingxin Yijia’s written confirmation. Pursuant to the terms of a certain Exclusive Option Agreement dated September 26, 2019, among HKIFS, HKSQ and the shareholders of HKSQ (the “Exclusive Option Agreement”), the shareholders of HKSQ granted HKIFS an irrevocable and exclusive purchase option (the “Option”) to acquire HKSQ’s equity interests and/or remaining assets, but only to the extent that the acquisition does not violate limitations imposed by PRC law on such transactions. Accordingly, the Option is exercisable at any time at HKIFS’s discretion so long as such exercise and subsequent acquisition of HKSQ does not violate PRC law. The consideration for the exercise of the Option is RMB <span id="xdx_907_ecustom--ConsiderationForExerciseOption_pp0p0_uRMB_c20190925__20190926__us-gaap--TypeOfArrangementAxis__custom--ExclusiveOptionAgreementMember_z2ipKHwfyAR3" title="Consideration for exercise option">1 in total. To the extent HKSQ shareholders receive any of such consideration, the Option requires HKSQ shareholders to transfer (and not retain) the same to Sheng HKSQ or HKIFS. The Exclusive Option Agreement has a ten-year term. The term of these agreements may be extended if confirmed in writing by HKIFS, and if no written confirmation was obtained from HKIFS, the Exclusive Option Agreement will be automatically renewed, the term of the renewed agreement will be determined till HKIFS’s written confirmation. Share Pledge Agreement Pursuant to the terms of a certain Share Pledge Agreement dated April 26, 2016 among Yingxin Yijia and the shareholders of Sheng Ying Xin (the “Share Pledge Agreement”), the shareholders of Sheng Ying Xin pledged all of their equity interests in Sheng Ying Xin, including the proceeds thereof, to guarantee all of Yingxin Yijia’s rights and benefits under the Exclusive Business Cooperation agreement, the Power of Attorney and the Exclusive Option Agreement. Prior to termination of the Share Pledge Agreement, the pledged equity interests cannot be transferred without Yingxin Yijia’s prior written consent. All of the equity interest pledges with respect to the equity interests of Sheng Ying Xin according to the Share Pledge Agreement have been registered with the relevant office of the Administration for Industry and Commerce in China. The Share Pledge Agreement will be valid until all the payments related to the services provided by Yingxin Yijia to Sheng Ying Xin due under the Exclusive Business Cooperation Agreements have been fulfilled. Therefore, the Share Pledge Agreement shall only be terminated when the payments related to the ten-year Exclusive Business Cooperation Agreement are paid in full and Yingxin Yijia does not intend to extend the term of the Exclusive Business Cooperation Agreement. Summarized below is the information related to the combined VIEs’ assets and liabilities as of December 31, 2021 and 2020, respectively: SCHEDULE OF VIES' ASSETS AND LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_496_20211231_z405aTUTbYO4" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As of December 31, 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49A_20201231_zsnMmFgvwNZ6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As of December 31, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_40D_eus-gaap--AssetsCurrent_iI_pp0p0_hsrt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_maAzRtU_zxQbA1QkEVz9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify">Current assets</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">48,287,298</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--PropertyPlantAndEquipmentNet_iI_pp0p0_hsrt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_maAzRtU_zueawKmO7qe3" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Plant and equipment, net</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> -</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">373</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--OtherAssetsNoncurrent_iI_pp0p0_hsrt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_maAzRtU_zcjwBDLBSxU1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Other non-current assets</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,836</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--Assets_iTI_pp0p0_hsrt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_mtAzRtU_maANznDU_zsP01DBqIKqa" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Total assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">48,291,507</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--Liabilities_iNI_pp0p0_di_hsrt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_msANznDU_zgCzkv6N43h" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Total liabilities</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"/><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(48,851,480</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_404_eus-gaap--AssetsNet_iTI_pp0p0_hsrt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_mtANznDU_zs8xeQxFx9Ck" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt">Net assets (liabilities)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"/><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(559,973</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table> <p id="xdx_896_ecustom--ScheuleOfViesReportedConsolidatedStatementsOfOperationsAndComprehensiveIncomeTableTextBlock_zz20zkDfKip8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Summarized below is the information related to the financial performance of the VIEs reported in the Company’s consolidated statements of operations and comprehensive income (loss) for the years ended December 31, 2021, 2020 and 2019, respectively: SCHEDULE OF VIES' REPORTED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_499_20210101__20211231_zuYkurFHfk2a" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year ended December 31, 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_497_20200101__20201231_zNJNQDfRigzb" style="border-bottom: Black 1.5pt solid; text-align: center">Year ended December 31, 2020</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20190101__20191231_zRgcZ2wD4Tx5" style="border-bottom: Black 1.5pt solid; text-align: center">Year ended December 31, 2019</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_409_eus-gaap--Revenues_hsrt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zd82vMTaW3rg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%">Revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">618</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,366,417</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--CostOfRevenue_hsrt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zR7aV1RYZrud" style="vertical-align: bottom; background-color: White"> <td>Cost of revenues</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">123</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--OperatingExpenses_hsrt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_z5T451wQbEmc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total operating expenses</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">203,388</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">102,135</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">784,840</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--NetIncomeLoss_hsrt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_z9jJqOhv5wHf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net loss</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">149,536</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">248,314</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">53,859,306</td><td style="text-align: left"> </td></tr> </table>

5000000

726600

0.01

0.6022

0.99 0.01

2023146

10.00

20231460

1262562

763365

91042

1.20

P2Y

91042

22114188

2062000

1 1 1

Summarized below is the information related to the combined VIEs’ assets and liabilities as of December 31, 2021 and 2020, respectively: SCHEDULE OF VIES' ASSETS AND LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_496_20211231_z405aTUTbYO4" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As of December 31, 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49A_20201231_zsnMmFgvwNZ6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As of December 31, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_40D_eus-gaap--AssetsCurrent_iI_pp0p0_hsrt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_maAzRtU_zxQbA1QkEVz9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify">Current assets</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">48,287,298</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--PropertyPlantAndEquipmentNet_iI_pp0p0_hsrt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_maAzRtU_zueawKmO7qe3" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Plant and equipment, net</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> -</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">373</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--OtherAssetsNoncurrent_iI_pp0p0_hsrt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_maAzRtU_zcjwBDLBSxU1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Other non-current assets</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,836</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--Assets_iTI_pp0p0_hsrt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_mtAzRtU_maANznDU_zsP01DBqIKqa" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Total assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">48,291,507</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--Liabilities_iNI_pp0p0_di_hsrt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_msANznDU_zgCzkv6N43h" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Total liabilities</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"/><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(48,851,480</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_404_eus-gaap--AssetsNet_iTI_pp0p0_hsrt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_mtANznDU_zs8xeQxFx9Ck" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt">Net assets (liabilities)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"/><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(559,973</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table>

48287298

373

3836

48291507

48851480

-559973

<p id="xdx_896_ecustom--ScheuleOfViesReportedConsolidatedStatementsOfOperationsAndComprehensiveIncomeTableTextBlock_zz20zkDfKip8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Summarized below is the information related to the financial performance of the VIEs reported in the Company’s consolidated statements of operations and comprehensive income (loss) for the years ended December 31, 2021, 2020 and 2019, respectively: SCHEDULE OF VIES' REPORTED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_499_20210101__20211231_zuYkurFHfk2a" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year ended December 31, 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_497_20200101__20201231_zNJNQDfRigzb" style="border-bottom: Black 1.5pt solid; text-align: center">Year ended December 31, 2020</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20190101__20191231_zRgcZ2wD4Tx5" style="border-bottom: Black 1.5pt solid; text-align: center">Year ended December 31, 2019</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_409_eus-gaap--Revenues_hsrt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zd82vMTaW3rg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%">Revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">618</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,366,417</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--CostOfRevenue_hsrt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zR7aV1RYZrud" style="vertical-align: bottom; background-color: White"> <td>Cost of revenues</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">123</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--OperatingExpenses_hsrt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_z5T451wQbEmc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total operating expenses</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">203,388</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">102,135</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">784,840</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--NetIncomeLoss_hsrt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_z9jJqOhv5wHf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net loss</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">149,536</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">248,314</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">53,859,306</td><td style="text-align: left"> </td></tr> </table>

618

1366417

123

203388

102135

784840

149536

248314

53859306

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). (b) Principles of Consolidation The consolidated financial statements include the financial statements of all the subsidiaries and VIEs of the Company. All transactions and balances between the Company and its subsidiaries and VIEs have been eliminated upon consolidation (c) Foreign currency translation and transactions The functional currency of HUSN, Hudson Capital USA Inc., Hudson Capital Merger Sub I Inc., Hudson Capital Merger Sub II Inc., HKIFS and HKSQ are in United States dollars (“US$” or “$”). The functional currency of Yingxin Yijia, CIFS (Xiamen) Financial Leasing, Sheng Ying Xin and its subsidiaries are Renminbi (“RMB”), and the PRC is the primary economic environment in which the Company operates. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. The resulting exchange differences are included in the determination of net income (loss) for the respective periods. For financial reporting purposes, the financial statements of the Company’s PRC subsidiary and the financial statements of the VIEs are prepared using RMB and are translated into the Company’s reporting currency, the US$. Assets and liabilities are translated using the exchange rate at each balance sheet date. Revenue and expenses are translated using average rates prevailing during each reporting period, and Shareholders’ equity is translated at historical exchange rates except for the change in retained earnings during the year which is the result of the net income (loss). The cumulative translation adjustments are recorded in accumulated other comprehensive income (loss) in the accompanying consolidated statements of shareholders’ equity. The exchange rates used are as follows: SCHEDULE OF EXCHANGE RATES APPLIED FOR FOREIGN CURRENCY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20211231_zfT7X12STKmj" style="border-bottom: Black 1.5pt solid; text-align: center">December 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20201231_z5pTrNdsiqPh" style="border-bottom: Black 1.5pt solid; text-align: center">December 31, 2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 64%; text-align: justify"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pdd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">RMB exchange rate at balance sheets dates,</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6.3757</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6.5249</td><td style="text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20211231_zn06OAYAwlc3" style="border-bottom: Black 1.5pt solid; text-align: center">2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20201231_zxwUmZUvFfD2" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_491_20191231_z2iRYe4PbUol" style="border-bottom: Black 1.5pt solid; text-align: center">2019</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year Ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2019</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 46%; text-align: justify"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--DerivativeAverageForwardExchangeRate1_iI_pdd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Average exchange rate for each year</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6.4515</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6.9010</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6.8944</td><td style="text-align: left"> </td></tr> </table> No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rates used in translation. The source of the exchange rates is generated from the People’s Bank of China. (d) Use of estimates The preparation of these consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the related disclosures of contingent assets and liabilities. Management makes its estimates based on historical experience and on various other assumptions it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates. Significant accounting estimates reflected in the Company’s consolidated financial statements mainly include the allowance for doubtful accounts, the valuation allowance of deferred tax assets, the estimated useful lives of long-lived assets, the impairment assessment of goodwill, intangibles and other long-lived assets, and the fair value of identifiable assets and liabilities acquired through business combination. (e) Cash Cash and cash equivalents consist of cash on hand, cash on deposit and other highly liquid investments which are unrestricted as to withdrawal or use, and which have original maturities of three months or less when purchased. The Company maintains cash with various financial institutions mainly in the US and PRC. As of December 31, 2021 and 2020, the Company had no cash equivalents. (f) Accounts receivable and loans to third parties Accounts receivable and loans to third parties are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts as needed. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable and loans receivable. The Company determines the allowance based on aging data, historical collection experience, customer specific facts and economic conditions. Based on management’s assessment of the collectability of the accounts receivable and loans to third party, allowance for loans to third party was $<span id="xdx_90A_eus-gaap--LoansAndLeasesReceivableAllowance_iI_pp0p0_c20211231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ThirdPartiesMember_zvdgYBhn7D29" title="Allowance for loans to third party">0 as of December 31, 2021, allowance for loans to third party was $<span id="xdx_90E_eus-gaap--LoansAndLeasesReceivableAllowance_iI_pp0p0_c20201231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ThirdPartiesMember_z54A1TDLaorg" title="Allowance for loans to third party">41,782,173 as of December 31, 2020, allowance for loans to third party was $39,402,683 as of December 31, 2019, and, allowance for loans to third party was $7,119,594 as of December 31, 2018. The value-added tax receivable from customers included in the accounts receivable in the balance sheet were $0, $0, and $97,287 as of December 31, 2021, 2020 and 2019, respectively. The accounts receivable, except for the principal of factoring as of December 31, 2019 were <span id="xdx_900_ecustom--AccountsReceivableExceptForPrincipleOfFactoringAsPercentageCollected_iI_pid_dp_uPure_c20200331_z1RrMEYuRgoe" title="Accounts receivable, except for the principle of factoring as percentage collected">0.07% collected as of March 31, 2020. (g) Property and Equipment The Company records equipment at cost less accumulated depreciation. The Company computes depreciation using the straight-line method over the estimated useful lives of the assets with a <span id="xdx_90E_eus-gaap--PropertyPlantAndEquipmentSalvageValuePercentage_iI_pid_dp_uPure_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ElectronicEquipmentMember_z5TKqOpz7Ph4" title="Percentage of residual value">5% residual value for electronic equipment, and a <span id="xdx_909_eus-gaap--PropertyPlantAndEquipmentSalvageValuePercentage_iI_pid_dp_uPure_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FurnitureMember_zfbh826cW1Td" title="Percentage of residual value">5% residual value for furniture and a <span id="xdx_901_eus-gaap--PropertyPlantAndEquipmentSalvageValuePercentage_iI_pid_dp_uPure_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zqCvBA8vRO4c" title="Percentage of residual value">0% residual value for leasehold improvement. Estimated useful lives of property and equipment: SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; width: 70%; border-collapse: collapse; margin-right: auto"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; width: 49%; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 49%; text-align: center">Useful Life</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Furniture</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span id="xdx_900_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dc_c20210101__20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_ze81GkWtm0zj" title="Estimated useful lives">10 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Electronic equipment</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span id="xdx_905_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dc_c20210101__20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ElectronicEquipmentMember_zq4p9GYiAtO5" title="Estimated useful lives">3 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Motor vehicle</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center">5 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Leasehold improvements</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span id="xdx_905_eus-gaap--PropertyPlantAndEquipmentEstimatedUsefulLives_c20210101__20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zw5ykt1VI3si" title="Estimated useful lives, description">Shorter of life of asset or lease</td></tr> </table> The Company eliminates the cost and related accumulated depreciation of assets sold or otherwise retired from the accounts and includes any gain or loss in the statement of operations. The Company charges maintenance, repairs and minor renewals directly to expense as incurred. (h) Intangible Assets Intangible assets, comprising accounting software and big data platform, which are separable from the property and equipment, are stated at cost less accumulated amortization. Amortization is computed using the straight-line method over the estimated useful lives of the assets. (i) Impairment of Long-lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future net undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. For the year ended December 31, 2021, the Company did not recognize any impairment loss of its long-lived assets. For the year ended December 31, 2020, the Company did not recognize any impairment loss of its long-lived assets. For the year ended December 31, 2019, the Company did not recognize any impairment loss of its long-lived assets. (j) Statutory Reserve The Company is required to make appropriations to reserve funds, comprising the statutory surplus reserve and discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (“PRC GAAP”). Appropriations to the statutory surplus reserve is required to be at least <span id="xdx_904_ecustom--PercentageOfStatutorySurplusReserveAfterTaxNetIncome_pid_dp_c20210101__20211231__srt--RangeAxis__srt--MinimumMember_zGSlJXv5JlWi" title="Percentage of statutory surplus reserve after tax net income">10% of the after tax net income determined in accordance with PRC GAAP until the reserve is equal to <span id="xdx_90D_ecustom--PercentageOfStatutorySurplusReserveAfterTaxNetIncome_pid_dp_c20210101__20211231__srt--RangeAxis__srt--MaximumMember_zW08LjiBBsD4" title="Percentage of statutory surplus reserve after tax net income">50% of the entities’ registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of Board of Directors. (k) Revenue recognition The Company adopted ASC Topic 606, “Revenue from Contracts with Customers” effective January 1, 2019, applying the modified retrospective method. In accordance with ASC Topic 606, revenues are recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. In determining when and how much revenue is recognized from contracts with customers, the Company performs the following five-step analysis: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; (5) recognize revenue when (or as) the entity satisfies a performance obligation. The Company’s services include commercial payment advisory services, intermediary bank loan advisory services, international corporate financing advisory services, technical services and factoring services. For commercial payment advisory service after signing contracts with the client, the Company starts to identify and select banks and financial products and coordinates with banks to structure financing solutions for the client. Then the client prepares application materials and sends them to the bank. When approved by the bank, the client will deposit cash with the bank or purchases wealth management products sold by the bank. After this step, the bank will issue a letter of guarantee, which the client will pledge as security for the acceptance bills. The letter of guarantee is a document that the bank provides certifying itself as guarantor. The Company’s service fee is a percentage of the amount of cash deposited with or wealth management products purchased from the bank by the client. The Company recognizes revenue after the client receives a credit contract from the bank and when the Company receives a contract completion confirmation from the client. For intermediary bank loan advisory services, the Company matches small-to-medium sized enterprises (“SMEs”) with financing sources. The Company charges borrowers an introduction fee which is calculated at a percentage of the loan. The Company recognizes revenue after the client receives a bank credit contract from the bank and when the Company receives a contract completion confirmation from the client. The Company typically receives the contract completion confirmation when the client receives the bank financing and signs off on the contract completion confirmation. For international corporate financing advisory services, the Company works with overseas banks to structure and provide clients with financing solutions to obtain facilities from overseas banks for the clients’ offshore affiliates. After signing the contract with the client, the Company will identify overseas banks and domestic banks, structure financing solutions and facilitate application processes. After the client provides security to the domestic bank, the domestic bank will issue a letter of guarantee to the overseas bank. The overseas bank will provide credit to the affiliate designated by the client. The Company’s service fee is a percentage of credit granted by the overseas bank to the offshore affiliate. The Company recognizes revenue after the offshore affiliate receives credit approval notice from the offshore bank and when the Company receives a contract completion confirmation from the client. The Company typically receives the contract completion confirmation when the affiliate receives the bank financing and the client signs off on the contract completion confirmation. For technical services, after signing the contract, the Company provides the clients with the technical services and charges a fee for the technical service. The Company recognizes revenue when the services are rendered. For factoring services, generally after we checked the documents such as client information, contracts, invoices supporting the client’s credit worth, authenticity of the business contracts and the collectability of receivables, we will sign the factoring service contract with client. Upon signing the contract, we request the client to pay us the management fee which we record as revenue upon receipt. After signing the factoring contract, we will wire the factored amount to the client’s designated party, generally its suppliers, and will collect the amount over the contact period. At each month end we will record the factoring service revenue based on the service fee ratio and the amount we factored. There is no claw back provisions or other guarantees. Full services fees are due upon the contract completion confirmation from the client. (l) Taxation The Company follows the guidance of ASC Topic 740 “Income taxes” and uses the assets and liability method to account for income taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets, if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized in statement of operations and comprehensive income (loss) in the period that includes the enactment date. The Company follows a more likely than not threshold and a two-step approach for the measurement of tax positions and financial statement recognition. Under the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including the resolution of related appeals or litigation process, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Company has elected to classify interest related to an uncertain tax position (if and when required) to interest expense, and classify penalties related to an uncertain tax position (if and when required) as part of other expense in the consolidated statements of operations and comprehensive income (loss). The tax authority of the PRC government conducts periodic and ad hoc tax filing reviews on business enterprises operating in the PRC after those enterprises had completed their relevant tax filings, hence the Company’s tax filings may not be finalized. It is therefore uncertain as to whether the PRC tax authority may take different views about the Company’s tax filings which may lead to additional tax liabilities. The tax returns of the Company’s PRC subsidiaries and VIEs are subject to examination by the relevant tax authorities. According to the PRC Tax Administration Law on the Levying and Collection of Taxes, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB100,000. In the case of transfer pricing issues, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion. The Company did not have any material interest or penalties associated with tax positions for the years ended December 31, 2021, 2020, and 2019 and did not have any significant unrecognized uncertain tax positions as of December 31, 2021, 2020 and 2019. The Company does not expect that the position of unrecognized tax benefits will significantly increase or decrease within 12 months of December 31, 2021. (m) Cost of revenues The Company’s cost of revenues mainly consists of revenue-generating staff costs. (n) Research and development expenses The Company accounts for expenses for the enhancement, maintenance and technical support for the Company’s Internet platforms and intellectual property that are used in its daily operations as research and development expenses. Research and development costs are charged to expense when incurred. No expenses for research and development for the years ended December 31, 2021, 2020 and 2019 were incurred. (o) Comprehensive income (loss) The Company presents comprehensive income (loss) in accordance with ASC 220, “Comprehensive Income”, which establishes standards for reporting and displaying comprehensive income (loss) and its components in the consolidated financial statements. Comprehensive income (loss) is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. Accumulated other comprehensive income (loss), as presented in the Company’s consolidated balance sheets are the cumulative foreign currency translation adjustments. (p) Earnings (loss) per Share Earnings (loss) per share (“EPS”) are calculated in accordance with ASC Topic 260, “Earnings Per Share”. Basic earnings (loss) per share is computed by dividing net income (loss) attributable to common shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted into common stock. The dilutive effect of outstanding common share warrants and options are reflected in the diluted earnings per share by application of the treasury stock method when the impact is dilutive. Potential common shares that have an anti-dilutive effect are excluded from the calculation of diluted EPS. There is <span id="xdx_903_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_do_c20210101__20211231_zPhcMlyTvt5g" title="Antidilutive securities excluded from computation of earnings per share, amount"><span id="xdx_907_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_do_c20200101__20201231_zxGLcWBNNPrj" title="Antidilutive securities excluded from computation of earnings per share, amount"><span id="xdx_902_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_do_c20190101__20191231_zoF7MzftC4R2" title="Antidilutive securities excluded from computation of earnings per share, amount">no dilutive effect for the years ended December 31, 2021, 2020 and 2019. (q) Fair Value of Financial Instruments The carrying value of cash and cash equivalents, accounts receivable, other receivable and short term loans approximate their fair values because of the short-term nature of these instruments. (r) Goodwill Goodwill is the excess of the consideration transferred over the fair value of the acquired assets and assumed liabilities in a business combination. The Company tests goodwill for impairment at the reporting unit level on an annual basis and between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. The Company first has the option to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the company decides, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise, no further testing is required. (s) Jobs Act accounting election The Company is an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(2) of the Jobs Act, that allows the Company to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies. As a result of this election, the financial statements may not be comparable to companies that comply with public company effective dates. (t) Recently issued accounting standards In June 2016, the FASB issued ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments”, which will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The guidance replaces the incurred loss impairment methodology with an expected credit loss model for which a company recognizes an allowance based on the estimate of expected credit loss. The standard did not have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles — Goodwill and Other (Topic 350): simplifying the test for goodwill impairment”, the guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not the difference between the fair value and carrying amount of goodwill which was the step 2 test before. The ASU should be adopted on a prospective basis for the annual or any interim goodwill impairment tests beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The standard did not have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Changes to the Disclosure Requirements for Fair Value Measurement.” This standard eliminates the current requirement to disclose the amount or reason for transfers between level 1 and level 2 of the fair value hierarchy and the requirement to disclose the valuation methodology for level 3 fair value measurements. The standard includes additional disclosure requirements for level 3 fair value measurements, including the requirement to disclose the changes in unrealized gains and losses in other comprehensive income during the period and permits the disclosure of other relevant quantitative information for certain unobservable inputs. The new guidance is effective for interim and annual periods beginning after December 15, 2019. The standard did not have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, “Internal-Use Software — Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement.” This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement service contract with the guidance to capitalize implementation costs of internal use software. The ASU also requires that the costs for implementation activities during the application development phase be capitalized in a hosting arrangement service contract, and costs during the preliminary and post implementation phase are expensed. The new guidance is effective for interim and annual periods beginning after December 15, 2019. The standard did not have a material impact on our consolidated financial statements. In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities, (“ASU 2018-17”). ASU 2018-17 requires reporting entities to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety for determining whether a decision-making fee is a variable interest. The standard is effective for all entities for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. Entities are required to apply the amendments in ASU 2018-17 retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented. The standard did not have a material impact on our consolidated financial statements In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, (“ASU 2019-04”). ASU 2019-04 clarifies and improves areas of guidance related to the recently issued standards on credit losses (ASU 2016-13), hedging (ASU 2017-12), and recognition and measurement of financial instruments (ASU 2016-01). The amendments generally have the same effective dates as their related standards. If already adopted, the amendments of ASU 2016-01 and ASU 2016-13 are effective for fiscal years beginning after December 15, 2019 and the amendments of ASU 2017-12 are effective as of the beginning of the Company’s next annual reporting period; early adoption is permitted. The standard did not have a material impact on our consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 will simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. ASU 2019-12 will be effective for the Company in the first quarter of 2021. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s financial condition, results of operations, cash flows or disclosures. In March 2020, the FASB issued ASU 2020-03, Codification Improvements to Financial Instruments, (“ASU 2020-03”). ASU 2020-03 improves various financial instruments topics, including the CECL Standard. ASU 2020-03 includes seven different issues that describe the areas of improvement and the related amendments to GAAP, intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The amendments related to Issue 1, Issue 2, Issue 4 and Issue 5 were effective upon issuance of ASU 2020-03. The amendments related to Issue 3, Issue 6 and Issue 7 were effective for the Company beginning on January 1, 2020. The Company does not anticipate that the adoption of the new standard will have a material effect on its consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. The amendments in this standard can be applied anytime between the first quarter of 2020 and the fourth quarter of 2022. The Company is currently in the process of evaluating the impact of adoption of the new rules on the Company’s financial condition, results of operations, cash flows and disclosures. Other than the above, management does not believe that any of the recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s consolidated financial statements. (u) Going Concern The Company has suffered from losses from operation and significant accumulated deficits. It’s net loss for the year ended December 31, 2021, 2020 and 2019 were $2,145,530, $9,075,353 and $61,995,758, respectively, and turned the retained earnings as of December 31, 2018 to 2019 from $36,653,460 to (25,379,698). As of December 31, 2021 and 2020, the Company has cash and cash equivalents of $221,312 and $3,274,287, respectively and net cash used in operating activities during the year ended December 31, 2021 and 2020 were $4,854,519 and $3,818,665, respectively. As of December 31, 2020 and 2019, the Company has cash and cash equivalents of $3,274,287 and $13,567, respectively and net cash used in operating activities during the year ended December 31, 2020 and 2019 were $3,818,665 and $1,071,379, respectively. The Company comes to have insufficient cash flows generated from operations and provided for development. In addition, the Company continues to experience negative cash flows from operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The management determines that additional effort will be required to improve the operation so that the Company may generate more profits to sustain its continuous. The Company may explore the channels to raise additional capital or any opportunities to improve the cash flow in the years to come. The Company had raised $3,599,502 and $4,278,000 from share placement to improve the financial position and cash flow as of December 31 2021 and 2020, respectively.

(a) Basis of presentation The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

(b) Principles of Consolidation The consolidated financial statements include the financial statements of all the subsidiaries and VIEs of the Company. All transactions and balances between the Company and its subsidiaries and VIEs have been eliminated upon consolidation

(c) Foreign currency translation and transactions The functional currency of HUSN, Hudson Capital USA Inc., Hudson Capital Merger Sub I Inc., Hudson Capital Merger Sub II Inc., HKIFS and HKSQ are in United States dollars (“US$” or “$”). The functional currency of Yingxin Yijia, CIFS (Xiamen) Financial Leasing, Sheng Ying Xin and its subsidiaries are Renminbi (“RMB”), and the PRC is the primary economic environment in which the Company operates. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. The resulting exchange differences are included in the determination of net income (loss) for the respective periods. For financial reporting purposes, the financial statements of the Company’s PRC subsidiary and the financial statements of the VIEs are prepared using RMB and are translated into the Company’s reporting currency, the US$. Assets and liabilities are translated using the exchange rate at each balance sheet date. Revenue and expenses are translated using average rates prevailing during each reporting period, and Shareholders’ equity is translated at historical exchange rates except for the change in retained earnings during the year which is the result of the net income (loss). The cumulative translation adjustments are recorded in accumulated other comprehensive income (loss) in the accompanying consolidated statements of shareholders’ equity. The exchange rates used are as follows: SCHEDULE OF EXCHANGE RATES APPLIED FOR FOREIGN CURRENCY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20211231_zfT7X12STKmj" style="border-bottom: Black 1.5pt solid; text-align: center">December 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20201231_z5pTrNdsiqPh" style="border-bottom: Black 1.5pt solid; text-align: center">December 31, 2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 64%; text-align: justify"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pdd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">RMB exchange rate at balance sheets dates,</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6.3757</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6.5249</td><td style="text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20211231_zn06OAYAwlc3" style="border-bottom: Black 1.5pt solid; text-align: center">2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20201231_zxwUmZUvFfD2" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_491_20191231_z2iRYe4PbUol" style="border-bottom: Black 1.5pt solid; text-align: center">2019</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year Ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2019</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 46%; text-align: justify"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--DerivativeAverageForwardExchangeRate1_iI_pdd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Average exchange rate for each year</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6.4515</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6.9010</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6.8944</td><td style="text-align: left"> </td></tr> </table> No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rates used in translation. The source of the exchange rates is generated from the People’s Bank of China.

The exchange rates used are as follows: SCHEDULE OF EXCHANGE RATES APPLIED FOR FOREIGN CURRENCY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20211231_zfT7X12STKmj" style="border-bottom: Black 1.5pt solid; text-align: center">December 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20201231_z5pTrNdsiqPh" style="border-bottom: Black 1.5pt solid; text-align: center">December 31, 2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 64%; text-align: justify"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pdd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">RMB exchange rate at balance sheets dates,</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6.3757</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6.5249</td><td style="text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20211231_zn06OAYAwlc3" style="border-bottom: Black 1.5pt solid; text-align: center">2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20201231_zxwUmZUvFfD2" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_491_20191231_z2iRYe4PbUol" style="border-bottom: Black 1.5pt solid; text-align: center">2019</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year Ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2019</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 46%; text-align: justify"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--DerivativeAverageForwardExchangeRate1_iI_pdd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Average exchange rate for each year</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6.4515</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6.9010</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6.8944</td><td style="text-align: left"> </td></tr> </table>

6.3757

6.5249

6.4515

6.9010

6.8944

(d) Use of estimates The preparation of these consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the related disclosures of contingent assets and liabilities. Management makes its estimates based on historical experience and on various other assumptions it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates. Significant accounting estimates reflected in the Company’s consolidated financial statements mainly include the allowance for doubtful accounts, the valuation allowance of deferred tax assets, the estimated useful lives of long-lived assets, the impairment assessment of goodwill, intangibles and other long-lived assets, and the fair value of identifiable assets and liabilities acquired through business combination.

(e) Cash Cash and cash equivalents consist of cash on hand, cash on deposit and other highly liquid investments which are unrestricted as to withdrawal or use, and which have original maturities of three months or less when purchased. The Company maintains cash with various financial institutions mainly in the US and PRC. As of December 31, 2021 and 2020, the Company had no cash equivalents.

(f) Accounts receivable and loans to third parties Accounts receivable and loans to third parties are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts as needed. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable and loans receivable. The Company determines the allowance based on aging data, historical collection experience, customer specific facts and economic conditions. Based on management’s assessment of the collectability of the accounts receivable and loans to third party, allowance for loans to third party was $<span id="xdx_90A_eus-gaap--LoansAndLeasesReceivableAllowance_iI_pp0p0_c20211231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ThirdPartiesMember_zvdgYBhn7D29" title="Allowance for loans to third party">0 as of December 31, 2021, allowance for loans to third party was $<span id="xdx_90E_eus-gaap--LoansAndLeasesReceivableAllowance_iI_pp0p0_c20201231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ThirdPartiesMember_z54A1TDLaorg" title="Allowance for loans to third party">41,782,173 as of December 31, 2020, allowance for loans to third party was $39,402,683 as of December 31, 2019, and, allowance for loans to third party was $7,119,594 as of December 31, 2018. The value-added tax receivable from customers included in the accounts receivable in the balance sheet were $0, $0, and $97,287 as of December 31, 2021, 2020 and 2019, respectively. The accounts receivable, except for the principal of factoring as of December 31, 2019 were <span id="xdx_900_ecustom--AccountsReceivableExceptForPrincipleOfFactoringAsPercentageCollected_iI_pid_dp_uPure_c20200331_z1RrMEYuRgoe" title="Accounts receivable, except for the principle of factoring as percentage collected">0.07% collected as of March 31, 2020.

41782173

39402683

7119594

97287

0.0007

(g) Property and Equipment The Company records equipment at cost less accumulated depreciation. The Company computes depreciation using the straight-line method over the estimated useful lives of the assets with a <span id="xdx_90E_eus-gaap--PropertyPlantAndEquipmentSalvageValuePercentage_iI_pid_dp_uPure_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ElectronicEquipmentMember_z5TKqOpz7Ph4" title="Percentage of residual value">5% residual value for electronic equipment, and a <span id="xdx_909_eus-gaap--PropertyPlantAndEquipmentSalvageValuePercentage_iI_pid_dp_uPure_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FurnitureMember_zfbh826cW1Td" title="Percentage of residual value">5% residual value for furniture and a <span id="xdx_901_eus-gaap--PropertyPlantAndEquipmentSalvageValuePercentage_iI_pid_dp_uPure_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zqCvBA8vRO4c" title="Percentage of residual value">0% residual value for leasehold improvement. Estimated useful lives of property and equipment: SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; width: 70%; border-collapse: collapse; margin-right: auto"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; width: 49%; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 49%; text-align: center">Useful Life</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Furniture</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span id="xdx_900_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dc_c20210101__20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_ze81GkWtm0zj" title="Estimated useful lives">10 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Electronic equipment</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span id="xdx_905_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dc_c20210101__20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ElectronicEquipmentMember_zq4p9GYiAtO5" title="Estimated useful lives">3 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Motor vehicle</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center">5 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Leasehold improvements</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span id="xdx_905_eus-gaap--PropertyPlantAndEquipmentEstimatedUsefulLives_c20210101__20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zw5ykt1VI3si" title="Estimated useful lives, description">Shorter of life of asset or lease</td></tr> </table> The Company eliminates the cost and related accumulated depreciation of assets sold or otherwise retired from the accounts and includes any gain or loss in the statement of operations. The Company charges maintenance, repairs and minor renewals directly to expense as incurred.

0.05

Estimated useful lives of property and equipment: SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; width: 70%; border-collapse: collapse; margin-right: auto"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; width: 49%; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 49%; text-align: center">Useful Life</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Furniture</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span id="xdx_900_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dc_c20210101__20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_ze81GkWtm0zj" title="Estimated useful lives">10 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Electronic equipment</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span id="xdx_905_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dc_c20210101__20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ElectronicEquipmentMember_zq4p9GYiAtO5" title="Estimated useful lives">3 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Motor vehicle</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center">5 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Leasehold improvements</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span id="xdx_905_eus-gaap--PropertyPlantAndEquipmentEstimatedUsefulLives_c20210101__20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zw5ykt1VI3si" title="Estimated useful lives, description">Shorter of life of asset or lease</td></tr> </table>

P10Y

P3Y

P5Y

Shorter of life of asset or lease

(h) Intangible Assets Intangible assets, comprising accounting software and big data platform, which are separable from the property and equipment, are stated at cost less accumulated amortization. Amortization is computed using the straight-line method over the estimated useful lives of the assets.

(i) Impairment of Long-lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future net undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. For the year ended December 31, 2021, the Company did not recognize any impairment loss of its long-lived assets. For the year ended December 31, 2020, the Company did not recognize any impairment loss of its long-lived assets. For the year ended December 31, 2019, the Company did not recognize any impairment loss of its long-lived assets.

(j) Statutory Reserve The Company is required to make appropriations to reserve funds, comprising the statutory surplus reserve and discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (“PRC GAAP”). Appropriations to the statutory surplus reserve is required to be at least <span id="xdx_904_ecustom--PercentageOfStatutorySurplusReserveAfterTaxNetIncome_pid_dp_c20210101__20211231__srt--RangeAxis__srt--MinimumMember_zGSlJXv5JlWi" title="Percentage of statutory surplus reserve after tax net income">10% of the after tax net income determined in accordance with PRC GAAP until the reserve is equal to <span id="xdx_90D_ecustom--PercentageOfStatutorySurplusReserveAfterTaxNetIncome_pid_dp_c20210101__20211231__srt--RangeAxis__srt--MaximumMember_zW08LjiBBsD4" title="Percentage of statutory surplus reserve after tax net income">50% of the entities’ registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of Board of Directors.

0.10 0.50

(k) Revenue recognition The Company adopted ASC Topic 606, “Revenue from Contracts with Customers” effective January 1, 2019, applying the modified retrospective method. In accordance with ASC Topic 606, revenues are recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. In determining when and how much revenue is recognized from contracts with customers, the Company performs the following five-step analysis: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; (5) recognize revenue when (or as) the entity satisfies a performance obligation. The Company’s services include commercial payment advisory services, intermediary bank loan advisory services, international corporate financing advisory services, technical services and factoring services. For commercial payment advisory service after signing contracts with the client, the Company starts to identify and select banks and financial products and coordinates with banks to structure financing solutions for the client. Then the client prepares application materials and sends them to the bank. When approved by the bank, the client will deposit cash with the bank or purchases wealth management products sold by the bank. After this step, the bank will issue a letter of guarantee, which the client will pledge as security for the acceptance bills. The letter of guarantee is a document that the bank provides certifying itself as guarantor. The Company’s service fee is a percentage of the amount of cash deposited with or wealth management products purchased from the bank by the client. The Company recognizes revenue after the client receives a credit contract from the bank and when the Company receives a contract completion confirmation from the client. For intermediary bank loan advisory services, the Company matches small-to-medium sized enterprises (“SMEs”) with financing sources. The Company charges borrowers an introduction fee which is calculated at a percentage of the loan. The Company recognizes revenue after the client receives a bank credit contract from the bank and when the Company receives a contract completion confirmation from the client. The Company typically receives the contract completion confirmation when the client receives the bank financing and signs off on the contract completion confirmation. For international corporate financing advisory services, the Company works with overseas banks to structure and provide clients with financing solutions to obtain facilities from overseas banks for the clients’ offshore affiliates. After signing the contract with the client, the Company will identify overseas banks and domestic banks, structure financing solutions and facilitate application processes. After the client provides security to the domestic bank, the domestic bank will issue a letter of guarantee to the overseas bank. The overseas bank will provide credit to the affiliate designated by the client. The Company’s service fee is a percentage of credit granted by the overseas bank to the offshore affiliate. The Company recognizes revenue after the offshore affiliate receives credit approval notice from the offshore bank and when the Company receives a contract completion confirmation from the client. The Company typically receives the contract completion confirmation when the affiliate receives the bank financing and the client signs off on the contract completion confirmation. For technical services, after signing the contract, the Company provides the clients with the technical services and charges a fee for the technical service. The Company recognizes revenue when the services are rendered. For factoring services, generally after we checked the documents such as client information, contracts, invoices supporting the client’s credit worth, authenticity of the business contracts and the collectability of receivables, we will sign the factoring service contract with client. Upon signing the contract, we request the client to pay us the management fee which we record as revenue upon receipt. After signing the factoring contract, we will wire the factored amount to the client’s designated party, generally its suppliers, and will collect the amount over the contact period. At each month end we will record the factoring service revenue based on the service fee ratio and the amount we factored. There is no claw back provisions or other guarantees. Full services fees are due upon the contract completion confirmation from the client.

(l) Taxation The Company follows the guidance of ASC Topic 740 “Income taxes” and uses the assets and liability method to account for income taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets, if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized in statement of operations and comprehensive income (loss) in the period that includes the enactment date. The Company follows a more likely than not threshold and a two-step approach for the measurement of tax positions and financial statement recognition. Under the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including the resolution of related appeals or litigation process, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Company has elected to classify interest related to an uncertain tax position (if and when required) to interest expense, and classify penalties related to an uncertain tax position (if and when required) as part of other expense in the consolidated statements of operations and comprehensive income (loss). The tax authority of the PRC government conducts periodic and ad hoc tax filing reviews on business enterprises operating in the PRC after those enterprises had completed their relevant tax filings, hence the Company’s tax filings may not be finalized. It is therefore uncertain as to whether the PRC tax authority may take different views about the Company’s tax filings which may lead to additional tax liabilities. The tax returns of the Company’s PRC subsidiaries and VIEs are subject to examination by the relevant tax authorities. According to the PRC Tax Administration Law on the Levying and Collection of Taxes, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB100,000. In the case of transfer pricing issues, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion. The Company did not have any material interest or penalties associated with tax positions for the years ended December 31, 2021, 2020, and 2019 and did not have any significant unrecognized uncertain tax positions as of December 31, 2021, 2020 and 2019. The Company does not expect that the position of unrecognized tax benefits will significantly increase or decrease within 12 months of December 31, 2021.

100000

(m) Cost of revenues The Company’s cost of revenues mainly consists of revenue-generating staff costs.

(n) Research and development expenses The Company accounts for expenses for the enhancement, maintenance and technical support for the Company’s Internet platforms and intellectual property that are used in its daily operations as research and development expenses. Research and development costs are charged to expense when incurred. No expenses for research and development for the years ended December 31, 2021, 2020 and 2019 were incurred.

(o) Comprehensive income (loss) The Company presents comprehensive income (loss) in accordance with ASC 220, “Comprehensive Income”, which establishes standards for reporting and displaying comprehensive income (loss) and its components in the consolidated financial statements. Comprehensive income (loss) is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. Accumulated other comprehensive income (loss), as presented in the Company’s consolidated balance sheets are the cumulative foreign currency translation adjustments.

(p) Earnings (loss) per Share Earnings (loss) per share (“EPS”) are calculated in accordance with ASC Topic 260, “Earnings Per Share”. Basic earnings (loss) per share is computed by dividing net income (loss) attributable to common shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted into common stock. The dilutive effect of outstanding common share warrants and options are reflected in the diluted earnings per share by application of the treasury stock method when the impact is dilutive. Potential common shares that have an anti-dilutive effect are excluded from the calculation of diluted EPS. There is <span id="xdx_903_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_do_c20210101__20211231_zPhcMlyTvt5g" title="Antidilutive securities excluded from computation of earnings per share, amount"><span id="xdx_907_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_do_c20200101__20201231_zxGLcWBNNPrj" title="Antidilutive securities excluded from computation of earnings per share, amount"><span id="xdx_902_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_do_c20190101__20191231_zoF7MzftC4R2" title="Antidilutive securities excluded from computation of earnings per share, amount">no dilutive effect for the years ended December 31, 2021, 2020 and 2019.

(q) Fair Value of Financial Instruments The carrying value of cash and cash equivalents, accounts receivable, other receivable and short term loans approximate their fair values because of the short-term nature of these instruments.

(r) Goodwill Goodwill is the excess of the consideration transferred over the fair value of the acquired assets and assumed liabilities in a business combination. The Company tests goodwill for impairment at the reporting unit level on an annual basis and between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. The Company first has the option to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the company decides, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise, no further testing is required.

(s) Jobs Act accounting election The Company is an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(2) of the Jobs Act, that allows the Company to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies. As a result of this election, the financial statements may not be comparable to companies that comply with public company effective dates.

(t) Recently issued accounting standards In June 2016, the FASB issued ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments”, which will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The guidance replaces the incurred loss impairment methodology with an expected credit loss model for which a company recognizes an allowance based on the estimate of expected credit loss. The standard did not have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles — Goodwill and Other (Topic 350): simplifying the test for goodwill impairment”, the guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not the difference between the fair value and carrying amount of goodwill which was the step 2 test before. The ASU should be adopted on a prospective basis for the annual or any interim goodwill impairment tests beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The standard did not have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Changes to the Disclosure Requirements for Fair Value Measurement.” This standard eliminates the current requirement to disclose the amount or reason for transfers between level 1 and level 2 of the fair value hierarchy and the requirement to disclose the valuation methodology for level 3 fair value measurements. The standard includes additional disclosure requirements for level 3 fair value measurements, including the requirement to disclose the changes in unrealized gains and losses in other comprehensive income during the period and permits the disclosure of other relevant quantitative information for certain unobservable inputs. The new guidance is effective for interim and annual periods beginning after December 15, 2019. The standard did not have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, “Internal-Use Software — Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement.” This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement service contract with the guidance to capitalize implementation costs of internal use software. The ASU also requires that the costs for implementation activities during the application development phase be capitalized in a hosting arrangement service contract, and costs during the preliminary and post implementation phase are expensed. The new guidance is effective for interim and annual periods beginning after December 15, 2019. The standard did not have a material impact on our consolidated financial statements. In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities, (“ASU 2018-17”). ASU 2018-17 requires reporting entities to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety for determining whether a decision-making fee is a variable interest. The standard is effective for all entities for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. Entities are required to apply the amendments in ASU 2018-17 retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented. The standard did not have a material impact on our consolidated financial statements In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, (“ASU 2019-04”). ASU 2019-04 clarifies and improves areas of guidance related to the recently issued standards on credit losses (ASU 2016-13), hedging (ASU 2017-12), and recognition and measurement of financial instruments (ASU 2016-01). The amendments generally have the same effective dates as their related standards. If already adopted, the amendments of ASU 2016-01 and ASU 2016-13 are effective for fiscal years beginning after December 15, 2019 and the amendments of ASU 2017-12 are effective as of the beginning of the Company’s next annual reporting period; early adoption is permitted. The standard did not have a material impact on our consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 will simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. ASU 2019-12 will be effective for the Company in the first quarter of 2021. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s financial condition, results of operations, cash flows or disclosures. In March 2020, the FASB issued ASU 2020-03, Codification Improvements to Financial Instruments, (“ASU 2020-03”). ASU 2020-03 improves various financial instruments topics, including the CECL Standard. ASU 2020-03 includes seven different issues that describe the areas of improvement and the related amendments to GAAP, intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The amendments related to Issue 1, Issue 2, Issue 4 and Issue 5 were effective upon issuance of ASU 2020-03. The amendments related to Issue 3, Issue 6 and Issue 7 were effective for the Company beginning on January 1, 2020. The Company does not anticipate that the adoption of the new standard will have a material effect on its consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. The amendments in this standard can be applied anytime between the first quarter of 2020 and the fourth quarter of 2022. The Company is currently in the process of evaluating the impact of adoption of the new rules on the Company’s financial condition, results of operations, cash flows and disclosures. Other than the above, management does not believe that any of the recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s consolidated financial statements.

(u) Going Concern The Company has suffered from losses from operation and significant accumulated deficits. It’s net loss for the year ended December 31, 2021, 2020 and 2019 were $2,145,530, $9,075,353 and $61,995,758, respectively, and turned the retained earnings as of December 31, 2018 to 2019 from $36,653,460 to (25,379,698). As of December 31, 2021 and 2020, the Company has cash and cash equivalents of $221,312 and $3,274,287, respectively and net cash used in operating activities during the year ended December 31, 2021 and 2020 were $4,854,519 and $3,818,665, respectively. As of December 31, 2020 and 2019, the Company has cash and cash equivalents of $3,274,287 and $13,567, respectively and net cash used in operating activities during the year ended December 31, 2020 and 2019 were $3,818,665 and $1,071,379, respectively. The Company comes to have insufficient cash flows generated from operations and provided for development. In addition, the Company continues to experience negative cash flows from operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The management determines that additional effort will be required to improve the operation so that the Company may generate more profits to sustain its continuous. The Company may explore the channels to raise additional capital or any opportunities to improve the cash flow in the years to come. The Company had raised $3,599,502 and $4,278,000 from share placement to improve the financial position and cash flow as of December 31 2021 and 2020, respectively.

-2145530

-9075353

-61995758

-36653460

-25379698

221312

3274287

-4854519

-3818665

3274287

13567

-3818665

-1071379

3599502

4278000

NOTE 3. CASH Cash consisted of the following: SCHEDULE OF CASH <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20211231_zGN0S0VAb5V8" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_490_20201231_zxKx2hTl4Iqi" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_400_eus-gaap--Cash_iI_pp0p0_maCACEAzyLo_zPfsdvGRnJ4c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Cash on hand</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--CashInBanks_iI_pp0p0_maCACEAzyLo_zOOXevPJifcj" style="vertical-align: bottom; background-color: White"> <td style="width: 56%; text-align: justify; padding-bottom: 1.5pt">Cash in banks</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 18%; text-align: right">221,312</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 18%; text-align: right">3,274,287</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iTI_pp0p0_mtCACEAzyLo_zET6WQ2AcL66" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Total cash</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">221,312</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">3,274,287</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table>

Cash consisted of the following: SCHEDULE OF CASH <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20211231_zGN0S0VAb5V8" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_490_20201231_zxKx2hTl4Iqi" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_400_eus-gaap--Cash_iI_pp0p0_maCACEAzyLo_zPfsdvGRnJ4c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Cash on hand</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--CashInBanks_iI_pp0p0_maCACEAzyLo_zOOXevPJifcj" style="vertical-align: bottom; background-color: White"> <td style="width: 56%; text-align: justify; padding-bottom: 1.5pt">Cash in banks</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 18%; text-align: right">221,312</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 18%; text-align: right">3,274,287</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iTI_pp0p0_mtCACEAzyLo_zET6WQ2AcL66" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Total cash</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">221,312</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">3,274,287</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table>

221312 3274287

221312

3274287

NOTE 4. OTHER RECEIVABLES Other receivables consisted of the following: SCHEDULE OF OTHER RECEIVABLES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49A_20211231_zMRqd8icbUI8" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_499_20201231_zqyG1ITszlI1" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_400_eus-gaap--InterestReceivableCurrent_iI_pp0p0_maORNCz1fy_zRIFIB81YQf2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: justify">Interest receivable</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">750</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--OtherReceivablesGrossCurrent_iI_pp0p0_maORNCz1fy_zuSRvzPJY7D9" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Others</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">54,990</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">105,149</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--OtherReceivablesNetCurrent_iTI_pp0p0_mtORNCz1fy_zr16mUcXYfEa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">55,740</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">105,149</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> Interest receivable represents interest income earned on loans to third parties (See Note 5).

Other receivables consisted of the following: SCHEDULE OF OTHER RECEIVABLES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49A_20211231_zMRqd8icbUI8" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_499_20201231_zqyG1ITszlI1" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_400_eus-gaap--InterestReceivableCurrent_iI_pp0p0_maORNCz1fy_zRIFIB81YQf2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: justify">Interest receivable</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">750</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--OtherReceivablesGrossCurrent_iI_pp0p0_maORNCz1fy_zuSRvzPJY7D9" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Others</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">54,990</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">105,149</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--OtherReceivablesNetCurrent_iTI_pp0p0_mtORNCz1fy_zr16mUcXYfEa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">55,740</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">105,149</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table>

750

54990

105149

55740

105149

NOTE 5. LOANS TO THIRD PARTIES The Company lends their own funds to eligible third parties occasionally and receives interest income to better utilize the Company’s cash. Loans to third parties consisted of direct loans and entrusted loan as follows: SCHEDULE OF LOANS TO THIRD PARTIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20211231_z5JyH6gHRcW9" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20201231_za2TRNEGhDW" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_408_ecustom--DirectLoanToThirdParties_iI_pp0p0_maDTRPCzDMD_zx7MrjzBLTw5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: justify">Direct loans to third parties</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">14,650,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">12,200,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_ecustom--EntrustedLoansToThirdParties_iNI_pp0p0_di_msDTRPCzDMD_zw6GmCatqdV" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Entrusted loans to third parties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">36,782,173</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">36,782,173</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_ecustom--ImpairmentOnUncollectableLoans_iI_pp0p0_maDTRPCzDMD_z1p6udhWq2O7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Impairment on uncollectable loans</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(48,982,173</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(48,982,173</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_407_eus-gaap--DueToRelatedPartiesCurrentAndNoncurrent_iTI_pp0p0_mtDTRPCzDMD_zehEhwU4urCe" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Total loans to third parties</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">2,450,000</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> Direct loans The Company lends their own funds directly to third parties. Due to the COVID-19 pandemic, in year ended December 31, 2020, the Company has agreed to extend the due dates of the loans to A, B and C. The detailed direct loan information as of December 31, 2021 is as follows: SCHEDULE OF DIRECT LOAN INFORMATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Borrower</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Annual Interest rate</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Due dates (after extension)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 22%; text-align: center">A</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_ecustom--DirectLoanToThirdParties_iI_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zYpbQfXXn851" style="width: 22%; text-align: right" title="Direct loan to third parties">4,000,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 22%; text-align: right"><span id="xdx_90D_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zVJZfMurRW42" title="Annual Interest rate">5</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 24%; text-align: center"><span id="xdx_904_eus-gaap--DebtInstrumentMaturityDate_dd_c20210101__20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_z0x4TGSuBcl2" title="Due date">Feb 7, 2021</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center">B</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_ecustom--DirectLoanToThirdParties_iI_pp0p0_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerBMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zXKsvcTh2TSe" style="text-align: right" title="Direct loan to third parties">5,000,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerBMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zvG39CIRoGe8" title="Annual Interest rate">15</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_903_eus-gaap--DebtInstrumentMaturityDate_dd_c20210101__20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerBMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_z834Uivx9dfi" title="Due date">Jan 28, 2019</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center">C</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_ecustom--DirectLoanToThirdParties_iI_pp0p0_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerCMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zv8hmzrjR3a4" style="text-align: right" title="Direct loan to third parties">3,000,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90B_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerCMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zo1XgpN9fa2a" title="Annual Interest rate">5</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_901_eus-gaap--DebtInstrumentMaturityDate_dd_c20210101__20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerCMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_z8fCUsqD2gd9" title="Due date">Jan 6, 2021</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center">C</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_ecustom--DirectLoanToThirdParties_iI_pp0p0_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerCOneMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zfFvjztYreqk" style="text-align: right" title="Direct loan to third parties">200,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_908_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerCOneMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_z0F6nX5S3ZJd" title="Annual Interest rate">5</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_902_eus-gaap--DebtInstrumentMaturityDate_dd_c20210101__20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerCOneMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_z7Az2uPRYiSc" title="Due date">Jun 26, 2021</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center">D</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_ecustom--DirectLoanToThirdParties_iI_pp0p0_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerDMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zK3M3k5d9dji" style="text-align: right" title="Direct loan to third parties">1,500,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_906_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerDMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zhtDf3kzg4Mg" title="Annual Interest rate">0.17</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_90B_eus-gaap--DebtInstrumentMaturityDate_dd_c20210101__20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerDMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zbWhTJzvfDR" title="Due date">Sep 16, 2022</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center; padding-bottom: 1.5pt">D</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98A_ecustom--DirectLoanToThirdParties_iI_pp0p0_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerDOneMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zClSHNq0CeL4" style="border-bottom: Black 1.5pt solid; text-align: right" title="Direct loan to third parties">950,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"><span id="xdx_90A_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerDOneMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zYMCwtSNImTc" title="Annual Interest rate">0.17</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: center; padding-bottom: 1.5pt"><span id="xdx_909_eus-gaap--DebtInstrumentMaturityDate_dd_c20210101__20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerDOneMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zIxotVj7YTVg" title="Due date">Sep 28, 2022</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: center; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98C_ecustom--DirectLoanToThirdParties_iI_pp0p0_c20211231__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zPxWOkQKzkV8" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total direct loan to third parties">14,650,000</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td></tr> </table> All the above loans to A, B and C were fully impaired as at December 31, 2021 and December 31, 2020 and no extension agreements were executed for them and are overdue. On October 10, 2020, we entered into an Agreement and Plan of Merger (as it may be amended from time to time, the “Merger Agreement”), with Hudson Capital Merger Sub I, Inc., a Delaware corporation and our wholly-owned subsidiary (“Merger Sub I”), Hudson Capital Merger Sub II, Inc., a Delaware corporation and Merger Sub I’s wholly-owned subsidiary, Freight App, Inc. (formerly known as FreightHub, Inc.), a Delaware corporation (“Fr8 App”) and ATW Master Fund II, L.P., as the representative of the stockholders of Fr8 App (the “Stockholders’ Representative”). This Merger Agreement was terminated on December 13, 2021 after the Board determined it was in our best interest to change strategies. In its stead, a new merger agreement was entered into between, us, Merger Sub I, Fr8 App and the Stockholders’ Representative on December 13, 2021 (the “New Merger Agreement”). On February 14, 2022, a Certificate of Merger was filed with the Secretary of State of the State of Delaware, in accordance with the relevant provisions of Delaware Law, whereby in accordance with the New Merger Agreement, Merger Sub I merged with and into Fr8 App, with Fr8 App surviving the Merger and continuing as a direct wholly-owned subsidiary of the Company (the “Merger”). The Merger closed on February 14, 2022 and the separate corporate existence of Merger Sub I and its Certificate of Incorporation and by-laws then in effect ceased, and the organizational documents of Fr8 App after the Merger is in the form as agreed by the Company and Fr8 App. As Borrower D is Fr8 App and the loan is becoming loan to related party after the Merger. The Company lends their own funds directly to third parties. Due to the COVID-19 pandemic, the Company has agreed to extend the due dates of the loans and the detailed direct loan information as of December 31, 2020 is as follows: <div id="xdx_C08_gL3SODLITTB-YJXWN_zICdsfI50Vn3" style="margin-top: 0pt; margin-bottom: 0pt"> <div style="margin-top: 0pt; margin-bottom: 0pt"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Borrower</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Annual Interest rate</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Due dates (after extension)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 22%; text-align: center">A</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_ecustom--DirectLoanToThirdParties_iI_pp0p0_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zCOd816uwU8h" style="width: 22%; text-align: right" title="Direct loan to third parties">4,000,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 22%; text-align: right"><span id="xdx_907_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zc4hwv42TMyj" title="Annual Interest rate">5</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 24%; text-align: center"><span id="xdx_904_eus-gaap--DebtInstrumentMaturityDate_dd_c20200101__20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zziIFKQnd5Ve" title="Due date">Feb 7, 2021</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center">B</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_ecustom--DirectLoanToThirdParties_iI_pp0p0_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerBMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zF3WAYnj94O6" style="text-align: right" title="Direct loan to third parties">5,000,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_908_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerBMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zbB9YjM44uAb" title="Annual Interest rate">15</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_909_eus-gaap--DebtInstrumentMaturityDate_dd_c20200101__20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerBMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_z6u8cdeIUWfj" title="Due date">Jan 28, 2019</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center">C</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_ecustom--DirectLoanToThirdParties_iI_pp0p0_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerCMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zqQAcj8c34w1" style="text-align: right" title="Direct loan to third parties">3,000,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerCMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zxgQ6nfvjnX2" title="Annual Interest rate">5</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_907_eus-gaap--DebtInstrumentMaturityDate_dd_c20200101__20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerCMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_z9Gcn5upkoac" title="Due date">Jan 6, 2021</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center; padding-bottom: 1.5pt">C</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_986_ecustom--DirectLoanToThirdParties_iI_pp0p0_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerCOneMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zLkmkana02fi" style="border-bottom: Black 1.5pt solid; text-align: right" title="Direct loan to third parties">200,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"><span id="xdx_900_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerCOneMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zCWh5ZwtjXSh" title="Annual Interest rate">5</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: center; padding-bottom: 1.5pt"><span id="xdx_906_eus-gaap--DebtInstrumentMaturityDate_dd_c20200101__20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerCOneMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zaPpeAWE2fBc" title="Due date">Jun 26, 2021</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: center; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98E_ecustom--DirectLoanToThirdParties_iI_pp0p0_c20201231__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_ziBRIDlvhsYi" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Direct loan to third parties">12,200,000</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td></tr> </table> </div></div> All the above loans were fully impaired as at December 31, 2020 and no extension agreements were executed for them and are overdue. The interest income from such direct loans was $<span id="xdx_901_eus-gaap--InterestIncomeOperating_pp0p0_c20210101__20211231__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_z0SJBeRdKr35" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">0, $<span id="xdx_900_eus-gaap--InterestIncomeOperating_pp0p0_c20200101__20201231__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zfkiLyTEMFi" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">365,000, and $<span id="xdx_90C_eus-gaap--InterestIncomeOperating_pp0p0_c20190101__20191231__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zJ0YGnXWBwod" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">422,284 for the years ended December 31, 2021, 2020, and 2019, respectively. Entrusted loans The Company also deposits (“entrust”) its funds in trust accounts with certain bank lenders, who will, in turn, make loans to borrowers. The balance of entrusted loans as of December 31, 2021 was $36,782,173 to four borrowers. The detailed entrusted loan information as of December 31, 2021 is as follows: SCHEDULE OF ENTRUSTED LOAN INFORMATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Borrower</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Annual Interest rate</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Due dates</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 22%; text-align: center">A</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zFe8i3gGbGy2" style="width: 22%; text-align: right" title="Entrusted loans to third parties">3,065,181</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 22%; text-align: right"><span id="xdx_90B_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zKD6yhUVfvq8" title="Annual Interest rate">16</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 24%; text-align: center"><span id="xdx_90A_eus-gaap--DebtInstrumentMaturityDate_dd_c20210101__20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zSZrMJGdowbi" title="Due date">October 23, 2018</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center">A</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalAMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_z04Qd8KId4ui" style="text-align: right" title="Entrusted loans to third parties">6,130,362</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_900_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalAMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zrHl9O86ZN11" title="Annual Interest rate">16</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_90F_eus-gaap--DebtInstrumentMaturityDate_dd_c20210101__20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalAMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zElcSTo3DVY1" title="Due date">December 26, 2018</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center">B</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerBMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zaHe9h8deBTj" style="text-align: right" title="Entrusted loans to third parties">4,597,772</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_901_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerBMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zu24fWxfSGD6" title="Annual Interest rate">16</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_909_eus-gaap--DebtInstrumentMaturityDate_dd_c20210101__20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerBMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_z7JHPofQGXCi" title="Due date">May 30, 2019</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center">B</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalBMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zi0v2ykF2z3" style="text-align: right" title="Entrusted loans to third parties">5,364,067</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90F_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalBMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_z2lWyxFbfNcc" title="Annual Interest rate">16</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_906_eus-gaap--DebtInstrumentMaturityDate_dd_c20210101__20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalBMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zr9RAoZV48fi" title="Due date">July 27, 2019</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center">C</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerCMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zCMgqj7j7leb" style="text-align: right" title="Entrusted loans to third parties">7,662,953</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_901_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerCMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zvbwuuorlrcd" title="Annual Interest rate">16</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_90F_eus-gaap--DebtInstrumentMaturityDate_dd_c20210101__20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerCMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zl6CveC4SRyc" title="Due date">June 9, 2019</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center">C</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalCMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zINwjfqTRnFb" style="text-align: right" title="Entrusted loans to third parties">6,130,362</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90B_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalCMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zeVwyo6jUcof" title="Annual Interest rate">16</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_908_eus-gaap--DebtInstrumentMaturityDate_dd_c20210101__20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalCMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zpxrwTmKQqC3" title="Due date">July 9, 2019</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center; padding-bottom: 1.5pt">E</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerEMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zEOGkdQSat4i" style="border-bottom: Black 1.5pt solid; text-align: right" title="Entrusted loans to third parties">3,831,476</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"><span id="xdx_90E_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerEMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zPx9Ej1UEwZg" title="Annual Interest rate">16</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: center; padding-bottom: 1.5pt"><span id="xdx_90B_eus-gaap--DebtInstrumentMaturityDate_dd_c20210101__20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerEMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zUfNMXcwDyag">September 7, 2019</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: center; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98E_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20211231__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zwP5IqsOEjR1" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Entrusted loans to third parties">36,782,173</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td></tr> </table> The balance of entrusted loans as of December 31, 2020 was $36,782,173 to four borrowers. The detailed entrusted loan information as of December 31, 2020 is as follows: <div style="margin-top: 0pt; margin-bottom: 0pt"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Borrower</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Annual Interest rate</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Due dates</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 22%; text-align: center">A</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zRUJD9hLCVmd" style="width: 22%; text-align: right" title="Entrusted loans to third parties">3,065,181</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 22%; text-align: right"><span id="xdx_905_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zfy4XIER9L24" title="Annual Interest rate">16</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 24%; text-align: center"><span id="xdx_901_eus-gaap--DebtInstrumentMaturityDate_dd_c20200101__20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zQCz9hydmwai" title="Due date">October 23, 2018</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center">A</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalAMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_z8xzdPed2Ty3" style="text-align: right" title="Entrusted loans to third parties">6,130,362</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_908_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalAMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zSTLxqZICEdh" title="Annual Interest rate">16</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_904_eus-gaap--DebtInstrumentMaturityDate_dd_c20200101__20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalAMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zl15MtiWMSBh" title="Due date">December 26, 2018</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center">B</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerBMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zcGvXUtUBS4e" style="text-align: right" title="Entrusted loans to third parties">4,597,772</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_902_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerBMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zAUXGXjXiqml" title="Annual Interest rate">16</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_905_eus-gaap--DebtInstrumentMaturityDate_dd_c20200101__20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerBMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zvqr5Vieg2z4" title="Due date">May 30, 2019</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center">B</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalBMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zK97cHB2rCsa" style="text-align: right" title="Entrusted loans to third parties">5,364,067</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalBMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_ztgBOTlXoUHb" title="Annual Interest rate">16</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_90F_eus-gaap--DebtInstrumentMaturityDate_dd_c20200101__20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalBMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zoWUz6SX5YX5" title="Due date">July 27, 2019</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center">C</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerCMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zYB4NH1ZWJf5" style="text-align: right" title="Entrusted loans to third parties">7,662,953</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90F_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerCMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zQ9cWsTsRQB2" title="Annual Interest rate">16</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_90F_eus-gaap--DebtInstrumentMaturityDate_dd_c20200101__20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerCMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_z4NjM2KhgAXg" title="Due date">June 9, 2019</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center">C</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalCMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zCyZqeUbaqif" style="text-align: right" title="Entrusted loans to third parties">6,130,362</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalCMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_z1up5zg1TMRe" title="Annual Interest rate">16</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_90E_eus-gaap--DebtInstrumentMaturityDate_dd_c20200101__20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalCMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zdO5S178jONi" title="Due date">July 9, 2019</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center; padding-bottom: 1.5pt">E</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_980_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerEMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zeZlZ5rHvmx" style="border-bottom: Black 1.5pt solid; text-align: right" title="Entrusted loans to third parties">3,831,476</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"><span id="xdx_900_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerEMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zbPf4mkGCpzi" title="Annual Interest rate">16</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: center; padding-bottom: 1.5pt"><span id="xdx_907_eus-gaap--DebtInstrumentMaturityDate_dd_c20200101__20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerEMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_znjwD7sN2Edi" title="Due date">September 7, 2019</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: center; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_986_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20201231__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_z1xOlG6I6huf" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Entrusted loans to third parties">36,782,173</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td></tr> </table> </div> The interest income from such entrusted loans was $0, $0, and $2,043,124 for the years ended December 31, 2021, 2020 and 2019. SCHEDULE OF LOANS TO THIRD PARTIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20211231_z5JyH6gHRcW9" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20201231_za2TRNEGhDW" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_408_ecustom--DirectLoanToThirdParties_iI_pp0p0_maDTRPCzDMD_zx7MrjzBLTw5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: justify">Direct loans to third parties</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">14,650,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">12,200,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_ecustom--EntrustedLoansToThirdParties_iNI_pp0p0_di_msDTRPCzDMD_zw6GmCatqdV" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Entrusted loans to third parties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">36,782,173</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">36,782,173</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_ecustom--ImpairmentOnUncollectableLoans_iI_pp0p0_maDTRPCzDMD_z1p6udhWq2O7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Impairment on uncollectable loans</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(48,982,173</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(48,982,173</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_407_eus-gaap--DueToRelatedPartiesCurrentAndNoncurrent_iTI_pp0p0_mtDTRPCzDMD_zehEhwU4urCe" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Total loans to third parties</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">2,450,000</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> 14650000 12200000 -36782173 -36782173 -48982173 -48982173

2450000

The Company lends their own funds directly to third parties. Due to the COVID-19 pandemic, in year ended December 31, 2020, the Company has agreed to extend the due dates of the loans to A, B and C. The detailed direct loan information as of December 31, 2021 is as follows: SCHEDULE OF DIRECT LOAN INFORMATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Borrower</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Annual Interest rate</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Due dates (after extension)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 22%; text-align: center">A</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_ecustom--DirectLoanToThirdParties_iI_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zYpbQfXXn851" style="width: 22%; text-align: right" title="Direct loan to third parties">4,000,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 22%; text-align: right"><span id="xdx_90D_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zVJZfMurRW42" title="Annual Interest rate">5</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 24%; text-align: center"><span id="xdx_904_eus-gaap--DebtInstrumentMaturityDate_dd_c20210101__20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_z0x4TGSuBcl2" title="Due date">Feb 7, 2021</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center">B</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_ecustom--DirectLoanToThirdParties_iI_pp0p0_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerBMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zXKsvcTh2TSe" style="text-align: right" title="Direct loan to third parties">5,000,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerBMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zvG39CIRoGe8" title="Annual Interest rate">15</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_903_eus-gaap--DebtInstrumentMaturityDate_dd_c20210101__20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerBMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_z834Uivx9dfi" title="Due date">Jan 28, 2019</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center">C</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_ecustom--DirectLoanToThirdParties_iI_pp0p0_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerCMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zv8hmzrjR3a4" style="text-align: right" title="Direct loan to third parties">3,000,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90B_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerCMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zo1XgpN9fa2a" title="Annual Interest rate">5</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_901_eus-gaap--DebtInstrumentMaturityDate_dd_c20210101__20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerCMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_z8fCUsqD2gd9" title="Due date">Jan 6, 2021</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center">C</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_ecustom--DirectLoanToThirdParties_iI_pp0p0_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerCOneMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zfFvjztYreqk" style="text-align: right" title="Direct loan to third parties">200,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_908_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerCOneMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_z0F6nX5S3ZJd" title="Annual Interest rate">5</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_902_eus-gaap--DebtInstrumentMaturityDate_dd_c20210101__20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerCOneMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_z7Az2uPRYiSc" title="Due date">Jun 26, 2021</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center">D</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_ecustom--DirectLoanToThirdParties_iI_pp0p0_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerDMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zK3M3k5d9dji" style="text-align: right" title="Direct loan to third parties">1,500,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_906_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerDMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zhtDf3kzg4Mg" title="Annual Interest rate">0.17</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_90B_eus-gaap--DebtInstrumentMaturityDate_dd_c20210101__20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerDMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zbWhTJzvfDR" title="Due date">Sep 16, 2022</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center; padding-bottom: 1.5pt">D</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98A_ecustom--DirectLoanToThirdParties_iI_pp0p0_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerDOneMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zClSHNq0CeL4" style="border-bottom: Black 1.5pt solid; text-align: right" title="Direct loan to third parties">950,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"><span id="xdx_90A_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerDOneMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zYMCwtSNImTc" title="Annual Interest rate">0.17</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: center; padding-bottom: 1.5pt"><span id="xdx_909_eus-gaap--DebtInstrumentMaturityDate_dd_c20210101__20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerDOneMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zIxotVj7YTVg" title="Due date">Sep 28, 2022</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: center; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98C_ecustom--DirectLoanToThirdParties_iI_pp0p0_c20211231__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zPxWOkQKzkV8" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total direct loan to third parties">14,650,000</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td></tr> </table> The Company lends their own funds directly to third parties. Due to the COVID-19 pandemic, the Company has agreed to extend the due dates of the loans and the detailed direct loan information as of December 31, 2020 is as follows: <div style="margin-top: 0pt; margin-bottom: 0pt"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Borrower</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Annual Interest rate</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Due dates (after extension)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 22%; text-align: center">A</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_ecustom--DirectLoanToThirdParties_iI_pp0p0_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zCOd816uwU8h" style="width: 22%; text-align: right" title="Direct loan to third parties">4,000,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 22%; text-align: right"><span id="xdx_907_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zc4hwv42TMyj" title="Annual Interest rate">5</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 24%; text-align: center"><span id="xdx_904_eus-gaap--DebtInstrumentMaturityDate_dd_c20200101__20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zziIFKQnd5Ve" title="Due date">Feb 7, 2021</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center">B</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_ecustom--DirectLoanToThirdParties_iI_pp0p0_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerBMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zF3WAYnj94O6" style="text-align: right" title="Direct loan to third parties">5,000,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_908_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerBMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zbB9YjM44uAb" title="Annual Interest rate">15</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_909_eus-gaap--DebtInstrumentMaturityDate_dd_c20200101__20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerBMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_z6u8cdeIUWfj" title="Due date">Jan 28, 2019</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center">C</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_ecustom--DirectLoanToThirdParties_iI_pp0p0_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerCMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zqQAcj8c34w1" style="text-align: right" title="Direct loan to third parties">3,000,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerCMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zxgQ6nfvjnX2" title="Annual Interest rate">5</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_907_eus-gaap--DebtInstrumentMaturityDate_dd_c20200101__20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerCMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_z9Gcn5upkoac" title="Due date">Jan 6, 2021</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center; padding-bottom: 1.5pt">C</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_986_ecustom--DirectLoanToThirdParties_iI_pp0p0_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerCOneMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zLkmkana02fi" style="border-bottom: Black 1.5pt solid; text-align: right" title="Direct loan to third parties">200,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"><span id="xdx_900_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerCOneMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zCWh5ZwtjXSh" title="Annual Interest rate">5</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: center; padding-bottom: 1.5pt"><span id="xdx_906_eus-gaap--DebtInstrumentMaturityDate_dd_c20200101__20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerCOneMember__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_zaPpeAWE2fBc" title="Due date">Jun 26, 2021</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: center; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98E_ecustom--DirectLoanToThirdParties_iI_pp0p0_c20201231__us-gaap--FinancialInstrumentAxis__custom--DirectLoanMember_ziBRIDlvhsYi" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Direct loan to third parties">12,200,000</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td></tr> </table> </div> 4000000

0.05

2021-02-07

5000000

0.15

2019-01-28

3000000

0.05

2021-01-06

200000

0.05

2021-06-26

1500000

0.0017

2022-09-16

950000

0.0017

2022-09-28

14650000 4000000

0.05

2021-02-07

5000000

0.15

2019-01-28

3000000

0.05

2021-01-06

200000

0.05

2021-06-26

12200000

365000

422284

The balance of entrusted loans as of December 31, 2021 was $36,782,173 to four borrowers. The detailed entrusted loan information as of December 31, 2021 is as follows: SCHEDULE OF ENTRUSTED LOAN INFORMATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Borrower</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Annual Interest rate</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Due dates</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 22%; text-align: center">A</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zFe8i3gGbGy2" style="width: 22%; text-align: right" title="Entrusted loans to third parties">3,065,181</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 22%; text-align: right"><span id="xdx_90B_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zKD6yhUVfvq8" title="Annual Interest rate">16</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 24%; text-align: center"><span id="xdx_90A_eus-gaap--DebtInstrumentMaturityDate_dd_c20210101__20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zSZrMJGdowbi" title="Due date">October 23, 2018</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center">A</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalAMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_z04Qd8KId4ui" style="text-align: right" title="Entrusted loans to third parties">6,130,362</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_900_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalAMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zrHl9O86ZN11" title="Annual Interest rate">16</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_90F_eus-gaap--DebtInstrumentMaturityDate_dd_c20210101__20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalAMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zElcSTo3DVY1" title="Due date">December 26, 2018</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center">B</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerBMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zaHe9h8deBTj" style="text-align: right" title="Entrusted loans to third parties">4,597,772</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_901_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerBMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zu24fWxfSGD6" title="Annual Interest rate">16</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_909_eus-gaap--DebtInstrumentMaturityDate_dd_c20210101__20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerBMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_z7JHPofQGXCi" title="Due date">May 30, 2019</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center">B</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalBMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zi0v2ykF2z3" style="text-align: right" title="Entrusted loans to third parties">5,364,067</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90F_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalBMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_z2lWyxFbfNcc" title="Annual Interest rate">16</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_906_eus-gaap--DebtInstrumentMaturityDate_dd_c20210101__20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalBMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zr9RAoZV48fi" title="Due date">July 27, 2019</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center">C</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerCMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zCMgqj7j7leb" style="text-align: right" title="Entrusted loans to third parties">7,662,953</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_901_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerCMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zvbwuuorlrcd" title="Annual Interest rate">16</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_90F_eus-gaap--DebtInstrumentMaturityDate_dd_c20210101__20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerCMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zl6CveC4SRyc" title="Due date">June 9, 2019</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center">C</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalCMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zINwjfqTRnFb" style="text-align: right" title="Entrusted loans to third parties">6,130,362</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90B_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalCMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zeVwyo6jUcof" title="Annual Interest rate">16</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_908_eus-gaap--DebtInstrumentMaturityDate_dd_c20210101__20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalCMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zpxrwTmKQqC3" title="Due date">July 9, 2019</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center; padding-bottom: 1.5pt">E</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerEMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zEOGkdQSat4i" style="border-bottom: Black 1.5pt solid; text-align: right" title="Entrusted loans to third parties">3,831,476</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"><span id="xdx_90E_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerEMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zPx9Ej1UEwZg" title="Annual Interest rate">16</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: center; padding-bottom: 1.5pt"><span id="xdx_90B_eus-gaap--DebtInstrumentMaturityDate_dd_c20210101__20211231__us-gaap--DebtInstrumentAxis__custom--BorrowerEMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zUfNMXcwDyag">September 7, 2019</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: center; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98E_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20211231__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zwP5IqsOEjR1" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Entrusted loans to third parties">36,782,173</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td></tr> </table> The balance of entrusted loans as of December 31, 2020 was $36,782,173 to four borrowers. The detailed entrusted loan information as of December 31, 2020 is as follows: <div style="margin-top: 0pt; margin-bottom: 0pt"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Borrower</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Annual Interest rate</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Due dates</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 22%; text-align: center">A</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zRUJD9hLCVmd" style="width: 22%; text-align: right" title="Entrusted loans to third parties">3,065,181</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 22%; text-align: right"><span id="xdx_905_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zfy4XIER9L24" title="Annual Interest rate">16</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 24%; text-align: center"><span id="xdx_901_eus-gaap--DebtInstrumentMaturityDate_dd_c20200101__20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zQCz9hydmwai" title="Due date">October 23, 2018</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center">A</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalAMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_z8xzdPed2Ty3" style="text-align: right" title="Entrusted loans to third parties">6,130,362</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_908_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalAMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zSTLxqZICEdh" title="Annual Interest rate">16</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_904_eus-gaap--DebtInstrumentMaturityDate_dd_c20200101__20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalAMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zl15MtiWMSBh" title="Due date">December 26, 2018</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center">B</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerBMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zcGvXUtUBS4e" style="text-align: right" title="Entrusted loans to third parties">4,597,772</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_902_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerBMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zAUXGXjXiqml" title="Annual Interest rate">16</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_905_eus-gaap--DebtInstrumentMaturityDate_dd_c20200101__20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerBMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zvqr5Vieg2z4" title="Due date">May 30, 2019</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center">B</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalBMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zK97cHB2rCsa" style="text-align: right" title="Entrusted loans to third parties">5,364,067</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalBMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_ztgBOTlXoUHb" title="Annual Interest rate">16</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_90F_eus-gaap--DebtInstrumentMaturityDate_dd_c20200101__20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalBMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zoWUz6SX5YX5" title="Due date">July 27, 2019</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center">C</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerCMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zYB4NH1ZWJf5" style="text-align: right" title="Entrusted loans to third parties">7,662,953</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90F_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerCMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zQ9cWsTsRQB2" title="Annual Interest rate">16</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_90F_eus-gaap--DebtInstrumentMaturityDate_dd_c20200101__20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerCMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_z4NjM2KhgAXg" title="Due date">June 9, 2019</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center">C</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalCMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zCyZqeUbaqif" style="text-align: right" title="Entrusted loans to third parties">6,130,362</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalCMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_z1up5zg1TMRe" title="Annual Interest rate">16</td><td style="text-align: left">%</td><td> </td> <td style="text-align: center"><span id="xdx_90E_eus-gaap--DebtInstrumentMaturityDate_dd_c20200101__20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerAdditionalCMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zdO5S178jONi" title="Due date">July 9, 2019</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center; padding-bottom: 1.5pt">E</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_980_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerEMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zeZlZ5rHvmx" style="border-bottom: Black 1.5pt solid; text-align: right" title="Entrusted loans to third parties">3,831,476</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"><span id="xdx_900_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerEMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_zbPf4mkGCpzi" title="Annual Interest rate">16</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: center; padding-bottom: 1.5pt"><span id="xdx_907_eus-gaap--DebtInstrumentMaturityDate_dd_c20200101__20201231__us-gaap--DebtInstrumentAxis__custom--BorrowerEMember__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_znjwD7sN2Edi" title="Due date">September 7, 2019</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: center; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_986_ecustom--EntrustedLoansToThirdParties_iI_pp0p0_c20201231__us-gaap--FinancialInstrumentAxis__custom--EntrustedLoanMember_z1xOlG6I6huf" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Entrusted loans to third parties">36,782,173</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td></tr> </table> </div> 3065181

0.16

2018-10-23

6130362

0.16

2018-12-26

4597772

0.16

2019-05-30

5364067

0.16

2019-07-27

7662953

0.16

2019-06-09

6130362

0.16

2019-07-09

3831476

0.16

2019-09-07

36782173 36782173 3065181

0.16

2018-10-23

6130362

0.16

2018-12-26

4597772

0.16

2019-05-30

5364067

0.16

2019-07-27

7662953

0.16

2019-06-09

6130362

0.16

2019-07-09

3831476

0.16

2019-09-07

36782173

2043124

NOTE 6. DUE FROM RELATED PARTIES Due from related party consists of the following: SCHEDULE OF DUE FROM RELATED PARTY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20211231_zRYgiOTnMb69" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_494_20201231_zBOi9zr1JVrl" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_409_eus-gaap--DueFromRelatedPartiesCurrent_iI_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ShengYingXinBeijingFilmIndustryCoLtdMember_zlSFMGvPSAbi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: justify">Sheng Ying Xin (Beijing) Film Industry Co., Ltd.</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right"> -</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">46,416</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--DueFromRelatedPartiesCurrent_iI_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--BeijingZhipingScienceAndTechnologyDevelopmentCoLtdMember_zON5AWRAiR4c" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Beijing ZhipingScience and Technology Development Co., Ltd.</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">30,214</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DueFromRelatedPartiesCurrent_iI_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AnytrustInformationTechnologyCoLtdMember_zwXCOqbJMiS6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Anytrust Information Technology Co., Ltd</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,126</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--DueFromRelatedPartiesCurrent_iI_zicGg90NbQuk" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total due from related party</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">81,756</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> As of December 31, 2021 and December 31, 2020, the Company has related party receivable of $0 and $81,756, respectively, due to advances made on behalf of these related parties. Due from related party consists of the following: SCHEDULE OF DUE FROM RELATED PARTY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20211231_zRYgiOTnMb69" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_494_20201231_zBOi9zr1JVrl" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_409_eus-gaap--DueFromRelatedPartiesCurrent_iI_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ShengYingXinBeijingFilmIndustryCoLtdMember_zlSFMGvPSAbi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: justify">Sheng Ying Xin (Beijing) Film Industry Co., Ltd.</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right"> -</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">46,416</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--DueFromRelatedPartiesCurrent_iI_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--BeijingZhipingScienceAndTechnologyDevelopmentCoLtdMember_zON5AWRAiR4c" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Beijing ZhipingScience and Technology Development Co., Ltd.</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">30,214</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DueFromRelatedPartiesCurrent_iI_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AnytrustInformationTechnologyCoLtdMember_zwXCOqbJMiS6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Anytrust Information Technology Co., Ltd</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,126</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--DueFromRelatedPartiesCurrent_iI_zicGg90NbQuk" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total due from related party</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">81,756</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table>

46416

30214

5126

81756

NOTE 7. PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT, NET <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49A_20211231_zgw7u9G50wqh" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_496_20201231_zh2iOUoqEjkg" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_40A_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_z1nK1UFZMdi2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: justify">Furniture</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">1,949</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">460</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ElectronicEquipmentMember_z2KLNElphqG8" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Electronic equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,520</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">15,931</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--VehiclesMember_zodHUqOTov06" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Motor vehicle</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">100,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zbKKv0R32U7b" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Leasehold improvement</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--PropertyPlantAndEquipmentGross_iI_maPPAENzJKp_zOgQHT9oee3f" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Total property and equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13,469</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">116,391</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_pp0p0_di_msPPAENzJKp_zzA41Cqe1tKg" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Less: accumulated depreciation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2,395</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(7,924</td><td style="text-align: left">)</td></tr> <tr id="xdx_408_ecustom--ImpairmentOfPropertyPlantAndEquipment_iNI_pp0p0_di_maPPAENzJKp_zOovsUm7K0Zc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Less: impairment</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--PropertyPlantAndEquipmentNet_iTI_pp0p0_mtPPAENzJKp_z5CYderqCUt1" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Property and equipment, net</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">11,074</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">108,467</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> Depreciation expense was $2,395, $703, and $60,910, respectively for the years ended December 31, 2021, 2020 and 2019.

Property and equipment consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT, NET <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49A_20211231_zgw7u9G50wqh" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_496_20201231_zh2iOUoqEjkg" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_40A_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_z1nK1UFZMdi2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: justify">Furniture</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">1,949</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">460</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ElectronicEquipmentMember_z2KLNElphqG8" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Electronic equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,520</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">15,931</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--VehiclesMember_zodHUqOTov06" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Motor vehicle</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">100,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zbKKv0R32U7b" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Leasehold improvement</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--PropertyPlantAndEquipmentGross_iI_maPPAENzJKp_zOgQHT9oee3f" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Total property and equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13,469</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">116,391</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_pp0p0_di_msPPAENzJKp_zzA41Cqe1tKg" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Less: accumulated depreciation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2,395</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(7,924</td><td style="text-align: left">)</td></tr> <tr id="xdx_408_ecustom--ImpairmentOfPropertyPlantAndEquipment_iNI_pp0p0_di_maPPAENzJKp_zOovsUm7K0Zc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Less: impairment</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--PropertyPlantAndEquipmentNet_iTI_pp0p0_mtPPAENzJKp_z5CYderqCUt1" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Property and equipment, net</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">11,074</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">108,467</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table>

1949

460

11520

15931

100000

13469

116391

2395

7924

11074

108467

2395

703

60910

NOTE 8. INTANGIBLE ASSETS, NET The intangible assets consisted of the following: SCHEDULE OF INTANGIBLE ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_497_20211231_zNg2yOi136Wg" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_499_20201231_zcnX9FMSBn2d" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_402_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_hus-gaap--FairValueByAssetClassAxis__custom--AccountingSoftwareMember_zzCYd0CMxJJb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: justify">Accounting software</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">7,650</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">7,650</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iNI_pp0p0_di_ztevZn8kJ3Rj" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Less: accumulated amortization</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(7,650</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(6,844</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--FiniteLivedIntangibleAssetsNet_iTI_pp0p0_zfvFtmPGRfa7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Intangible assets, net</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">806</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> Amortization expense was $806, $476 and $1,448, respectively, for the years ended December 31, 2021, 2020 and 2019.

The intangible assets consisted of the following: SCHEDULE OF INTANGIBLE ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_497_20211231_zNg2yOi136Wg" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_499_20201231_zcnX9FMSBn2d" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_402_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_hus-gaap--FairValueByAssetClassAxis__custom--AccountingSoftwareMember_zzCYd0CMxJJb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: justify">Accounting software</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">7,650</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">7,650</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iNI_pp0p0_di_ztevZn8kJ3Rj" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Less: accumulated amortization</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(7,650</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(6,844</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--FiniteLivedIntangibleAssetsNet_iTI_pp0p0_zfvFtmPGRfa7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Intangible assets, net</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">806</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table>

7650

6844

806

476

1448

NOTE 9. RELATED PARTY TRANSACTIONS For the year ended December 31, 2021, the Company has entered into sublease agreement with PX Capital USA Inc. (“PX Capital”) for payment of rental of $<span id="xdx_904_eus-gaap--PaymentsForRent_pp0p0_c20210101__20211231__us-gaap--TypeOfArrangementAxis__custom--SubleaseAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--PXCapitalMember_zexv2whm8wVd" title="Payment of rental">112,100 for the period from January 1, 2021 to December 31, 2021. The Company has also entered into consultant agreement with PX Capital for the consultancy services rendered by PX Capital of $<span id="xdx_901_eus-gaap--ProfessionalFees_pp0p0_c20210101__20211231__us-gaap--TypeOfArrangementAxis__custom--ConsultantAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--PXCapitalMember_zDDcz1fXeHA" title="Consultancy services fees">120,000 for the period from January 1, 2021 to December 31, 2021. The Company and PX Capital have common chief executive officer, Mr. Warren Wang. For the year ended December 31, 2021, the Company has entered into agreement with Wave Sync Corp. (“Wave Sync”) for disposal of used motor vehicle of $<span id="xdx_901_eus-gaap--PaymentsForRent_pp0p0_c20210101__20211231__us-gaap--TypeOfArrangementAxis__custom--WaveSyncCorpAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MrHonManYunMember_zt7qqMM3tOye">100,000. For the year ended December 31, 2021, the Company purchased equity shares of $250,000 from Montis Digital Limited, a company incorporated in Gibraltar, and $500,000 from Archax Holdings Ltd., a company incorporated in the United Kingdom. The Company then sold all of the equity shares to Wave Sync for a total of $750,000. Montis Digital Limited and Archax Holdings Ltd. are not related parties of the Company. The Company and Wave Sync have common chief financial officer, Mr. Hon Man Yun. For the year ended December 31, 2020, the Company has entered into sublease agreement with PX Capital USA Inc. (“PX Capital”) for payment of rental of $<span id="xdx_904_eus-gaap--PaymentsForRent_pp0p0_c20200401__20201231__us-gaap--TypeOfArrangementAxis__custom--SubleaseAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--PXCapitalMember_zf2whezSTJ63" title="Payment of rental">68,000 for the period from April 1, 2020 to December 31, 2020. The Company has also entered into consultant agreement with PX Capital for the consultancy services rendered by PX Capital of $<span id="xdx_909_eus-gaap--ProfessionalFees_pp0p0_c20200401__20201231__us-gaap--TypeOfArrangementAxis__custom--ConsultantAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--PXCapitalMember_zGYdptdPR447" title="Consultancy services fees">80,000 for the period from April 1, 2020 to December 31, 2020. The Company and PX Capital have common chief executive officer, Mr. Warren Wang. Due from related parties: As of December 31, 2021, the Company has $0 related party receivables and $0 due to advances made on behalf of related parties. As of December 31, 2020, the Company has related party receivables of $81,756, due to advances made on behalf of related parties, including $46,416 due from Sheng Ying Xin (Beijing) Film Industry Co., Ltd., $<span id="xdx_900_eus-gaap--DueFromRelatedPartiesCurrent_iI_pp0p0_c20201231__dei--LegalEntityAxis__custom--BeijingZhipingScienceAndTechnologyDevelopmentCoLtdMember_zqhp4JV7e9Dh" title="Related party receivables">30,214 from Beijing Zhiping Science. As of December 31, 2019, the Company has related party receivables of $76,467, due to advances made on behalf of related parties, including $43,414 due from Sheng Ying Xin (Beijing) Film Industry Co., Ltd., $<span id="xdx_90E_eus-gaap--DueFromRelatedPartiesCurrent_iI_pp0p0_c20191231__dei--LegalEntityAxis__custom--BeijingZhipingScienceAndTechnologyDevelopmentCoLtdMember_zDshUoAqcHle" title="Related party receivables">28,259 from Beijing Zhiping Science. Due to related party: As of December 31, 2021, the Company has related party payables of $100 due to Mr. Warren Wang the chief executive officer of the Company, who lend funds for the Company’s operations. The payables are unsecured, non-interest bearing and due on demand. As of December 31, 2020 and 2019, the Company has related party payables of $358,241 and $279,925, respectively, due to Mr. Jianxin Lin the Company’s founder, former chairman of the board of directors and former chief executive officer and Mr Jinchi Xu the Company’s former director and chief financial officer, who lend funds for the Company’s operations. The payables are unsecured, non-interest bearing and due on demand.

112100

120000

100000

250000

500000

750000

68000

80000

81756

46416

30214

76467

43414

28259

100

358241

279925

NOTE 10. EMPLOYEE DEFINED CONTRIBUTION PLAN Full time employees of the Company in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the PRC subsidiaries and VIEs of the Company make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The employee benefits were expensed as contribution was made. The Company has no legal obligation for the benefits beyond the contributions made. The total amounts for such contributions were approximately $0, $0, and $140,149 for the years ended December 31, 2021, 2020, and 2019, respectively.

140149

NOTE 11. STOCKHOLDERS’ EQUITY On June 23, 2020 and July 31, 2020, we closed on two registered direct offerings for the purchase and sale of 4,352,941 of the Company’s ordinary shares, at a purchase price of $0.85 per share, for an aggregate purchase price of approximately $3.7 million and the purchase and sale of 3,555,556 of the Company’s ordinary shares, at a purchase price of $0.45 per share, for an aggregate purchase price of approximately $1.6 million, respectively. Chardan Capital Markets LLC acted as placement agent in both offerings. The net proceeds to the Company from the offerings, after deducting placement agent fees and estimated offering expenses, were approximately $3.328 million and $1.39 million, respectively. On October 26, 2020, we filed Amended and Restated Memorandum and Articles of Association with the Registrar of Corporate Affairs of the British Virgins Islands to effect a 5-for-1 reverse stock split (the “Reverse Split”) of our ordinary shares. As a result of the Reverse Split, every five (5) ordinary shares were automatically combined into one (1) ordinary share. In connection with the Reverse Split, our par value per share was increased from $0.001 to $0.005. The number of common stock outstanding has been changed accordingly. On September 16, 2021, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with ATW Opportunities Master Fund, L.P. (“ATW”) pursuant to which the Company agreed to sell for an aggregate purchase price of $<span id="xdx_905_eus-gaap--SaleOfStockConsiderationReceivedPerTransaction_pp0p0_c20210915__20210916__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__dei--LegalEntityAxis__custom--ATWOpportunitiesMasterFundLPMember_zo9iVvRHYfq9" title="Sale of Stock">2,700,000, an aggregate of <span id="xdx_90C_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20210915__20210916__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__dei--LegalEntityAxis__custom--ATWOpportunitiesMasterFundLPMember_zdJ65vY82R84" title="Sale of Stock, Number of Shares Issued in Transaction">630,000 ordinary shares, par value $<span id="xdx_907_eus-gaap--SaleOfStockPricePerShare_iI_pp3d_c20210916__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__dei--LegalEntityAxis__custom--ATWOpportunitiesMasterFundLPMember_zc8piBGpw5h4" title="Sale of Stock, Price Per Share">0.005 (“Ordinary Shares”) of the Company and a pre-funded warrant (the “Warrant”) to purchase <span id="xdx_904_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pid_c20210916__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__dei--LegalEntityAxis__custom--ATWOpportunitiesMasterFundLPMember_zW3dE6r7AzF7" title="Purchase of ordinary shares warrant">650,000 Ordinary Shares (the “Securities Purchase”). The closing of the Securities Purchase will be subject to customary closing conditions. The net proceeds from the Securities Purchase, after expenses, will be approximately $2.6 million, of which $1.5 million will be used to fund a loan to Fr8App (the “Fr8App Loan”) evidenced by a promissory note issued by Fr8App to the Company dated September 16, 2021 (the “Promissory Note”). In connection with the Fr8App Loan, Fr8App also issued the Company a warrant (the “Fr8App Warrant”) to purchase certain securities of Fr8App in an aggregate value of $2,700,000. The Company agreed to assign the Fr8App Warrant it received from Fr8App thereunder to ATW and executed a Warrant Assignment Agreement on the same date. The effectiveness of the Fr8App Loan and the Fr8App Warrant is contingent on the closing of the Securities Purchase by ATW. The Securities Purchase was consummated on September 28, 2021. Pursuant to the terms and provisions of the Purchase Agreement, the Warrant was paid in full amount and same as offering price of the Ordinary Shares. On February 14, 2022, the <span id="xdx_90F_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pid_c20220214__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zIO6DgsjaSN2" title="Purchase of ordinary shares warrant">650,000 Ordinary Shares have been issued for the effectiveness of the Warrant. The warrants issued in the private placement described above are exercisable for a fixed number of shares, and are classified as equity instruments under ASC 815-40-25-10. The Company accounted for the warrants issued in the private placement based on the fair value method under ASC Topic 505, and the fair value of the warrants was calculated using the Black-Scholes model under the following assumptions: estimated life of 5 years, volatility of 99.91%, risk-free interest rate of 1.02% and dividend yield of 0%. No estimate of forfeitures was made as the Company has a short history of granting options and warrants. The fair value of the warrants issued to investors at grant date was $3,312,887.04. <p id="xdx_893_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValueTableTextBlock_zwHNkyZyCJCi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in"> SUMMARY OF FAIR VALUE AT GRANT DATE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: left">Grant date</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 28, 2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 78%">Share price at date of grant</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--SharePrice_iI_pp2d_c20210928_z48a5VTZTvFc" style="width: 18%; text-align: right" title="Share price at date of grant">5.26</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercise price at date of grant</td><td> </td> <td style="text-align: left">$</td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pp3d_c20210928_zlXpkBPOgMRe" style="text-align: right" title="Exercise price at date of grant">0.001</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Volatility</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20210927__20210928_z7JaqPz4tZza" style="text-align: right" title="Volatility">99.91</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Warrant life</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5 years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Dividend yield</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20210927__20210928_zmvskiJG5xm8" style="text-align: right" title="Dividend yield">0</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Risk-free interest rate</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20210927__20210928_zVrbHBGnlMj9" style="text-align: right" title="Risk-free interest rate">1.02</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Average fair value at grant date</td><td> </td> <td style="text-align: left">$</td><td id="xdx_989_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue_pp2d_c20210927__20210928_zmuV1UTQ3lhi" style="text-align: right" title="Average fair value at grant date">5.26</td><td style="text-align: left"> </td></tr> </table> The following is a summary of the warrant activity for the year ended December 31, 2021: SUMMARY OF WARRANT ACTIVITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Number of Warrants</td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Average Exercise Price</td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Weighted Average Remaining Contractual Term in Years</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Outstanding at January 1, 2021</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pid_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zxVOx1Dbekak" style="text-align: right" title="Number of warrants - Beginning balance">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pp0d_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zvtcP23z11z3" style="text-align: right" title="Average exercise price - Beginning balance">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercisable at January 1, 2021</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iS_pid_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zRm6N0JBpd4i" style="text-align: right" title="Number of warrants - Beginning balance">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iS_pp3d_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zcTMWWL8c5M5" style="text-align: right" title="Average exercise price - Exercisable as beginning balance">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 34%">Granted</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z3DXLiqOywFl" style="width: 18%; text-align: right" title="Number of warrants - Granted">650,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pp3d_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z7p1TzoyL2X4" style="width: 18%; text-align: right" title="Average exercise price - Granted">0.001</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 18%; text-align: right"><span id="xdx_902_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsGrantsWeightedAverageRemainingContractualTerm2_dtY_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z6tUvJNzDfbl" title="Weighted Average Remaining Contractual Term in Years - Granted">5.00</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercised/surrendered</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_pid_di_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zQ0m5T2ieRD9" style="text-align: right" title="Number of warrants - Exercised/surrendered">(499,751</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pp3d_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zYtDPGNKIxmf" style="text-align: right" title="Average exercise price - Exercised/Surrendered">0.001</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_903_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisedWeightedAverageRemainingContractualTerm2_dtY_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zdo8LQkkqozd" title="Weighted Average Remaining Contractual Term in Years - Exercised/Surrendered">4.75</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Forfeited</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_pid_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zOWCSd7ZgAda" style="text-align: right" title="Number of warrants - Forfeited">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zNaKOtCdLTbe" style="text-align: right" title="Average exercise price - Forfeited">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_900_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsForfeituresWeightedAverageRemainingContractualTerm2_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zlYcUnEA5ai3" title="Weighted Average Remaining Contractual Term in Years - Forfeited">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Expired</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod_pid_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zotaOodbZLQg" style="text-align: right" title="Number of warrants - Expired">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zjSLpz98tx1j" style="text-align: right" title="Average exercise price - Expired">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExpirationsWeightedAverageRemainingContractualTerm2_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zUtMYCTpuKIf" title="Weighted Average Remaining Contractual Term in Years - Expired">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Outstanding at December 31, 2021</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pid_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z9wTD7ROv52b" style="text-align: right" title="Number of warrants - Ending balance">150,249</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pp3d_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zXlUMHyfcUCd" style="text-align: right" title="Average exercise price - Ending balance">0.001</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_905_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zHT8GRj39cB8" title="Weighted Average Remaining Contractual Term in Years - Ending">4.74</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercisable at December 31, 2021</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iE_pid_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zSDLOUtkAqIj" style="text-align: right" title="Number of warrants - Exercisable">150,249</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iE_pp3d_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zPWnrrjzXoc4" style="text-align: right" title="Average exercise price - Exercisable as ending balance">0.001</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z8Fy5L5ttGh8" title="Weighted Average Remaining Contractual Term in Years - Exercisable as Ending">4.74</td><td style="text-align: left"> </td></tr> </table>

4352941

0.85

3700000

3555556

0.45

1600000

3328000

1390000

Affairs of the British Virgins Islands to effect a 5-for-1 reverse stock split (the “Reverse Split”) of our ordinary shares. As a result of the Reverse Split, every five (5) ordinary shares were automatically combined into one (1) ordinary share. In connection with the Reverse Split, our par value per share was increased from $0.001 to $0.005. The number of common stock outstanding has been changed accordingly

2700000

630000

0.005

650000

2600000

1500000

2700000

650000

P5Y

0.9991

0.0102

3312887.04

<p id="xdx_893_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValueTableTextBlock_zwHNkyZyCJCi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in"> SUMMARY OF FAIR VALUE AT GRANT DATE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: left">Grant date</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 28, 2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 78%">Share price at date of grant</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--SharePrice_iI_pp2d_c20210928_z48a5VTZTvFc" style="width: 18%; text-align: right" title="Share price at date of grant">5.26</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercise price at date of grant</td><td> </td> <td style="text-align: left">$</td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pp3d_c20210928_zlXpkBPOgMRe" style="text-align: right" title="Exercise price at date of grant">0.001</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Volatility</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20210927__20210928_z7JaqPz4tZza" style="text-align: right" title="Volatility">99.91</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Warrant life</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5 years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Dividend yield</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20210927__20210928_zmvskiJG5xm8" style="text-align: right" title="Dividend yield">0</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Risk-free interest rate</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20210927__20210928_zVrbHBGnlMj9" style="text-align: right" title="Risk-free interest rate">1.02</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Average fair value at grant date</td><td> </td> <td style="text-align: left">$</td><td id="xdx_989_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue_pp2d_c20210927__20210928_zmuV1UTQ3lhi" style="text-align: right" title="Average fair value at grant date">5.26</td><td style="text-align: left"> </td></tr> </table>

5.26

0.001

0.9991

P5Y

0.0102

5.26

The following is a summary of the warrant activity for the year ended December 31, 2021: SUMMARY OF WARRANT ACTIVITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Number of Warrants</td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Average Exercise Price</td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Weighted Average Remaining Contractual Term in Years</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Outstanding at January 1, 2021</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pid_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zxVOx1Dbekak" style="text-align: right" title="Number of warrants - Beginning balance">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pp0d_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zvtcP23z11z3" style="text-align: right" title="Average exercise price - Beginning balance">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercisable at January 1, 2021</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iS_pid_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zRm6N0JBpd4i" style="text-align: right" title="Number of warrants - Beginning balance">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iS_pp3d_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zcTMWWL8c5M5" style="text-align: right" title="Average exercise price - Exercisable as beginning balance">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 34%">Granted</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z3DXLiqOywFl" style="width: 18%; text-align: right" title="Number of warrants - Granted">650,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pp3d_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z7p1TzoyL2X4" style="width: 18%; text-align: right" title="Average exercise price - Granted">0.001</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 18%; text-align: right"><span id="xdx_902_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsGrantsWeightedAverageRemainingContractualTerm2_dtY_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z6tUvJNzDfbl" title="Weighted Average Remaining Contractual Term in Years - Granted">5.00</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercised/surrendered</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_pid_di_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zQ0m5T2ieRD9" style="text-align: right" title="Number of warrants - Exercised/surrendered">(499,751</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pp3d_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zYtDPGNKIxmf" style="text-align: right" title="Average exercise price - Exercised/Surrendered">0.001</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_903_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisedWeightedAverageRemainingContractualTerm2_dtY_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zdo8LQkkqozd" title="Weighted Average Remaining Contractual Term in Years - Exercised/Surrendered">4.75</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Forfeited</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_pid_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zOWCSd7ZgAda" style="text-align: right" title="Number of warrants - Forfeited">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zNaKOtCdLTbe" style="text-align: right" title="Average exercise price - Forfeited">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_900_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsForfeituresWeightedAverageRemainingContractualTerm2_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zlYcUnEA5ai3" title="Weighted Average Remaining Contractual Term in Years - Forfeited">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Expired</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod_pid_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zotaOodbZLQg" style="text-align: right" title="Number of warrants - Expired">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zjSLpz98tx1j" style="text-align: right" title="Average exercise price - Expired">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExpirationsWeightedAverageRemainingContractualTerm2_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zUtMYCTpuKIf" title="Weighted Average Remaining Contractual Term in Years - Expired">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Outstanding at December 31, 2021</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pid_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z9wTD7ROv52b" style="text-align: right" title="Number of warrants - Ending balance">150,249</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pp3d_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zXlUMHyfcUCd" style="text-align: right" title="Average exercise price - Ending balance">0.001</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_905_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zHT8GRj39cB8" title="Weighted Average Remaining Contractual Term in Years - Ending">4.74</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercisable at December 31, 2021</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iE_pid_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zSDLOUtkAqIj" style="text-align: right" title="Number of warrants - Exercisable">150,249</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iE_pp3d_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zPWnrrjzXoc4" style="text-align: right" title="Average exercise price - Exercisable as ending balance">0.001</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z8Fy5L5ttGh8" title="Weighted Average Remaining Contractual Term in Years - Exercisable as Ending">4.74</td><td style="text-align: left"> </td></tr> </table>

650000

0.001

P5Y

499751

0.001

P4Y9M

150249

0.001

P4Y8M26D

150249

0.001

P4Y8M26D

NOTE 12. TAXATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; width: 24px; text-align: justify">a)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Corporate Income Taxes</td></tr> </table> HUSN is incorporated in the BVI. Under the current law of the BVI, HUSN is not subject to tax on income or capital gains. Additionally, if dividends are paid by HUSN to its shareholders, no BVI withholding tax will be imposed. Hudson Capital USA Inc., Hudson Capital Merger Sub I Inc. and Hudson Capital Merger Sub II Inc. were incorporated in the United States and are subject to taxes in the United States. They have evaluated their respective income tax positions and have determined that they do not have any uncertain tax positions. They will recognize interest and penalties related to any uncertain tax positions through their income tax expense. Hudson Capital Merger Sub I Inc. and Hudson Capital Merger Sub II Inc. are subject to franchise tax filing requirements in the State of Delaware. HKIFS and HKSQ were incorporated in Hong Kong and does not conduct any substantial operations of its own. No provision for Hong Kong profits tax has been made in the financial statements as HKFS and HKSQ has no assessable profits for the years ended December 31, 2021, 2020 and 2019. The HUSN’s PRC subsidiary, Yingxin Yijia, CIFS (Xiamen) Financial Leasing and its variable interest entities, Sheng Ying Xin and its subsidiaries being incorporated in the PRC, are governed by the income tax law of the PRC and are subject to PRC enterprise income tax (“EIT”). Effective from January 1, 2008, the EIT rate of PRC is <span id="xdx_900_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_c20210101__20211231__us-gaap--IncomeTaxAuthorityAxis__custom--PRCMember_zUVfxyZSKHNb" title="Effective income tax rate">25%, and applies to both domestic and foreign invested enterprises. Kashgar Sheng Ying Xin, which was incorporated in Kashgar City, Xinjiang Autonomous Region in People’s Republic of China, is exempted from income tax from its inception to December 31, 2021 and is subject to a tax rate of 25% after December 31, 2021. The components of the income tax expense are as follows: SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20210101__20211231_zDYyrKyZSxe2" style="border-bottom: Black 1.5pt solid; text-align: center">Year ended December 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49B_20200101__20201231_zliIwiq7Ime3" style="border-bottom: Black 1.5pt solid; text-align: center">Year ended December 31, 2020</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20190101__20191231_zLGPwWyFs9zc" style="border-bottom: Black 1.5pt solid; text-align: center">Year ended December 31, 2019</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_40B_eus-gaap--CurrentIncomeTaxExpenseBenefit_maITEBz2Tx_zdXB7XqpHU1k" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: justify">Current</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right"> -</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right"> -</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">7,243</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--CurrentIncomeTaxExpenseBenefit_maITEBz2Tx_zRclXucdd6C3" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Total Current</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"> -</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"> -</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">7,243</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--DeferredIncomeTaxExpenseBenefit_maITEBz2Tx_z7ZLsgQ82j39" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Deferred</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--IncomeTaxExpenseBenefit_iT_pp0p0_mtITEBz2Tx_z422EyyvWt36" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">7,243</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> Reconciliation of the income tax expenses at the PRC statutory EIT rate of 25% for the years ended December 31, 2021, 2020, and 2019 and the Company’s effective income tax expenses is as follows: SCHEDULE OF INCOME TAX RECONCILIATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year ended December 31, 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year ended December 31, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year ended December 31, 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: justify">(Loss) before income taxes</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_c20210101__20211231_z2Mw6jIHSAji" style="width: 16%; text-align: right" title="(Loss) before income taxes">(2,145,530</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_c20200101__20201231_zlhUMxiNJGqg" style="width: 16%; text-align: right" title="(Loss) before income taxes">(9,075,353</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_c20190101__20191231_zZGA8VWqeDG9" style="width: 16%; text-align: right" title="(Loss) before income taxes">(61,988,515</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">PRC statutory EIT rate</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_c20210101__20211231_z826WTIpRkSj" style="border-bottom: Black 1.5pt solid; text-align: right" title="PRC statutory EIT rate">25</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_c20200101__20201231_zkCL12kBMkIl" style="border-bottom: Black 1.5pt solid; text-align: right" title="PRC statutory EIT rate">25</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_c20190101__20191231_zSm6dsd84j56" style="border-bottom: Black 1.5pt solid; text-align: right" title="PRC statutory EIT rate">25</td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Income tax (benefit) computed at statutory EIT rate</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_c20210101__20211231_zxSFFBGLAH2d" style="text-align: right" title="Income tax (benefit) computed at statutory EIT rate">(536,383</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_c20200101__20201231_zZZhShO18yyc" style="text-align: right" title="Income tax (benefit) computed at statutory EIT rate">(2,268,838</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_c20190101__20191231_zA9IxmpnQq9f" style="text-align: right" title="Income tax (benefit) computed at statutory EIT rate">(15,497,129</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Reconciling items:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: justify">Valuation allowance</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_c20210101__20211231_zXEgTPckwuXe" style="text-align: right" title="Valuation allowance">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_c20200101__20201231_zkUvYCTid4Pb" style="text-align: right" title="Valuation allowance">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_pdp0_c20190101__20191231_zpdXtjbTy1Qk" style="text-align: right" title="Valuation allowance">1,798,398</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: justify">Effect of tax holidays</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_ecustom--IncomeTaxReconciliationTaxHoliday_pp0p0_c20210101__20211231_zpbIfo1XFRH8" style="text-align: right" title="Effect of tax holidays">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_ecustom--IncomeTaxReconciliationTaxHoliday_c20200101__20201231_z2Wu3fRBVCd6" style="text-align: right" title="Effect of tax holidays">109,630</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_ecustom--IncomeTaxReconciliationTaxHoliday_c20190101__20191231_zl0wKCDwpgP9" style="text-align: right" title="Effect of tax holidays">93,455</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: justify">Temporary difference</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--IncomeTaxReconciliationChangeInEnactedTaxRate_pp0p0_c20210101__20211231_zO9lC0FDkVa" style="text-align: right" title="Temporary difference">536,383</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--IncomeTaxReconciliationChangeInEnactedTaxRate_c20200101__20201231_z4UBRIePF4Kl" style="text-align: right" title="Temporary difference">2,133,790</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--IncomeTaxReconciliationChangeInEnactedTaxRate_c20190101__20191231_zSmqKv8jdzJg" style="text-align: right" title="Temporary difference">13,369,701</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: justify; padding-bottom: 1.5pt">Permanent difference</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--IncomeTaxReconciliationOtherAdjustments_c20210101__20211231_zMpkBhAkI92" style="border-bottom: Black 1.5pt solid; text-align: right" title="Permanent difference">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--IncomeTaxReconciliationOtherAdjustments_c20200101__20201231_zKnFIefu3sPd" style="border-bottom: Black 1.5pt solid; text-align: right" title="Permanent difference">25,418</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--IncomeTaxReconciliationOtherAdjustments_c20190101__20191231_zabLIKxhQFEc" style="border-bottom: Black 1.5pt solid; text-align: right" title="Permanent difference">242,818</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Income tax (benefit) expense</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_eus-gaap--IncomeTaxExpenseBenefit_c20210101__20211231_zjMcBKGPACo1" style="border-bottom: Black 2.5pt double; text-align: right" title="Income tax (benefit) expense">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_eus-gaap--IncomeTaxExpenseBenefit_c20200101__20201231_zVou5QFuw9Qc" style="border-bottom: Black 2.5pt double; text-align: right" title="Income tax (benefit) expense">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--IncomeTaxExpenseBenefit_c20190101__20191231_zZpRY0bBhelb" style="border-bottom: Black 2.5pt double; text-align: right" title="Income tax (benefit) expense">7,243</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; width: 24px; text-align: justify">b)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Deferred Taxes</td></tr> </table> Deferred income tax was measured using the enacted income tax rates for the periods in which they are expected to be reversed. Significant components of the Company’s deferred income tax assets and liabilities consist of follows: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 95%; margin-left: 0.25in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20211231_zkp1cYvrUdO8" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49B_20201231_zfFb6iPNWcJc" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_401_eus-gaap--ComponentsOfDeferredTaxAssetsAbstract_iB_zHleCIPQKJXj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify">Deferred income tax assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwards_iI_z8KtpTsZSZHe" style="vertical-align: bottom; background-color: White"> <td style="width: 56%; text-align: justify; padding-bottom: 1.5pt">Net operating loss carry forwards</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 18%; text-align: right">-</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 18%; text-align: right"> -</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--DeferredTaxAssetsGross_iI_ze7OX0Zr0uCe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify">Total Deferred income tax assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--DeferredTaxAssetsValuationAllowance_iI_zWaO0I5GZKAb" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Less: Valuation allowance</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--DeferredTaxAssetsNet_iI_zFAagmD1930l" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Net deferred income tax assets</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 95%; margin-left: 0.25in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As of December 31, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--DeferredTaxLiabilitiesAbstract_iB_zuWrnb1IYzs3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify">Deferred income tax liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--DeferredTaxLiabilitiesGoodwillAndIntangibleAssetsIntangibleAssets_iI_zIo7zZo7O6E3" style="vertical-align: bottom; background-color: White"> <td style="width: 56%; text-align: justify; padding-bottom: 1.5pt">Intangible assets from business combination</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 18%; text-align: right"> -</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 18%; text-align: right"> -</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--DeferredTaxLiabilities_iI_zs9Ls33jrFwa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Total deferred income tax liabilities</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> The Company’s NOL was mainly from the Company’s VIE and subsidiaries’ cumulative net operating losses (“NOL”) of approximately $149,536 and $252,483 as of December 31, 2021 and 2020, respectively. Management considers projected future losses outweighs other factors and made a full allowance of related deferred tax assets. <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; width: 24px; text-align: justify">c)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Taxes Payable</td></tr> </table> Yingxin Yijia, CIFS (Xiamen) Financial Leasing and its variable interest entities, Sheng Ying Xin and its subsidiaries, who provided services in China and therefore are subject to Chinese value-added tax (“VAT”). Sales revenue represents the invoiced value of services, net of the VAT. Since August 1, 2015, Sheng Ying Xin was classified as a general taxpayer with VAT of 6%. Kashgar Sheng Ying Xin is subject VAT of 4.5% (75% of general taxpayer’s rate of 6%), which is a tax holiday for enterprises established in Kashgar. Both FuhuiSZ and Anytrust are general taxpayers and subject to a 6% VAT rate. Yingda Xincheng was classified as a small-scale taxpayer and the VAT is at 3%. Furthermore, VAT payable of these four companies are subject to a 12% surtax, which includes urban maintenance and construction taxes and additional education fees. Taxes payable consisted of the following: SCHEDULE OF TAX PAYABLE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49A_20211231_zuHrsnBbHor5" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20201231_zuO5h2Aqazo9" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_403_ecustom--CorporateIncomeTaxPayable_iI_maTPCzDHX_zLIjXIHEsoE6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: justify">Corporate income tax payable</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right"> -</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">805,117</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--SalesAndExciseTaxPayableCurrent_iI_maTPCzDHX_z2fPfnrR19xl" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Value added tax payable</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">202,395</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_ecustom--OtherSurtaxesPayable_iI_maTPCzDHX_zTj5JxUJisF2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Other surtaxes payable</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">45,737</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--TaxesPayableCurrent_iTI_mtTPCzDHX_zVyS7hCYWBT" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,053,249</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table>

0.25

The components of the income tax expense are as follows: SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20210101__20211231_zDYyrKyZSxe2" style="border-bottom: Black 1.5pt solid; text-align: center">Year ended December 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49B_20200101__20201231_zliIwiq7Ime3" style="border-bottom: Black 1.5pt solid; text-align: center">Year ended December 31, 2020</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20190101__20191231_zLGPwWyFs9zc" style="border-bottom: Black 1.5pt solid; text-align: center">Year ended December 31, 2019</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_40B_eus-gaap--CurrentIncomeTaxExpenseBenefit_maITEBz2Tx_zdXB7XqpHU1k" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: justify">Current</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right"> -</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right"> -</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">7,243</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--CurrentIncomeTaxExpenseBenefit_maITEBz2Tx_zRclXucdd6C3" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Total Current</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"> -</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"> -</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">7,243</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--DeferredIncomeTaxExpenseBenefit_maITEBz2Tx_z7ZLsgQ82j39" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Deferred</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--IncomeTaxExpenseBenefit_iT_pp0p0_mtITEBz2Tx_z422EyyvWt36" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">7,243</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table>

7243

Reconciliation of the income tax expenses at the PRC statutory EIT rate of 25% for the years ended December 31, 2021, 2020, and 2019 and the Company’s effective income tax expenses is as follows: SCHEDULE OF INCOME TAX RECONCILIATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year ended December 31, 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year ended December 31, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year ended December 31, 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: justify">(Loss) before income taxes</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_c20210101__20211231_z2Mw6jIHSAji" style="width: 16%; text-align: right" title="(Loss) before income taxes">(2,145,530</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_c20200101__20201231_zlhUMxiNJGqg" style="width: 16%; text-align: right" title="(Loss) before income taxes">(9,075,353</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_c20190101__20191231_zZGA8VWqeDG9" style="width: 16%; text-align: right" title="(Loss) before income taxes">(61,988,515</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">PRC statutory EIT rate</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_c20210101__20211231_z826WTIpRkSj" style="border-bottom: Black 1.5pt solid; text-align: right" title="PRC statutory EIT rate">25</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_c20200101__20201231_zkCL12kBMkIl" style="border-bottom: Black 1.5pt solid; text-align: right" title="PRC statutory EIT rate">25</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_c20190101__20191231_zSm6dsd84j56" style="border-bottom: Black 1.5pt solid; text-align: right" title="PRC statutory EIT rate">25</td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Income tax (benefit) computed at statutory EIT rate</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_c20210101__20211231_zxSFFBGLAH2d" style="text-align: right" title="Income tax (benefit) computed at statutory EIT rate">(536,383</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_c20200101__20201231_zZZhShO18yyc" style="text-align: right" title="Income tax (benefit) computed at statutory EIT rate">(2,268,838</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_c20190101__20191231_zA9IxmpnQq9f" style="text-align: right" title="Income tax (benefit) computed at statutory EIT rate">(15,497,129</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Reconciling items:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: justify">Valuation allowance</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_c20210101__20211231_zXEgTPckwuXe" style="text-align: right" title="Valuation allowance">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_c20200101__20201231_zkUvYCTid4Pb" style="text-align: right" title="Valuation allowance">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_pdp0_c20190101__20191231_zpdXtjbTy1Qk" style="text-align: right" title="Valuation allowance">1,798,398</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: justify">Effect of tax holidays</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_ecustom--IncomeTaxReconciliationTaxHoliday_pp0p0_c20210101__20211231_zpbIfo1XFRH8" style="text-align: right" title="Effect of tax holidays">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_ecustom--IncomeTaxReconciliationTaxHoliday_c20200101__20201231_z2Wu3fRBVCd6" style="text-align: right" title="Effect of tax holidays">109,630</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_ecustom--IncomeTaxReconciliationTaxHoliday_c20190101__20191231_zl0wKCDwpgP9" style="text-align: right" title="Effect of tax holidays">93,455</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: justify">Temporary difference</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--IncomeTaxReconciliationChangeInEnactedTaxRate_pp0p0_c20210101__20211231_zO9lC0FDkVa" style="text-align: right" title="Temporary difference">536,383</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--IncomeTaxReconciliationChangeInEnactedTaxRate_c20200101__20201231_z4UBRIePF4Kl" style="text-align: right" title="Temporary difference">2,133,790</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--IncomeTaxReconciliationChangeInEnactedTaxRate_c20190101__20191231_zSmqKv8jdzJg" style="text-align: right" title="Temporary difference">13,369,701</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: justify; padding-bottom: 1.5pt">Permanent difference</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--IncomeTaxReconciliationOtherAdjustments_c20210101__20211231_zMpkBhAkI92" style="border-bottom: Black 1.5pt solid; text-align: right" title="Permanent difference">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--IncomeTaxReconciliationOtherAdjustments_c20200101__20201231_zKnFIefu3sPd" style="border-bottom: Black 1.5pt solid; text-align: right" title="Permanent difference">25,418</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--IncomeTaxReconciliationOtherAdjustments_c20190101__20191231_zabLIKxhQFEc" style="border-bottom: Black 1.5pt solid; text-align: right" title="Permanent difference">242,818</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Income tax (benefit) expense</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_eus-gaap--IncomeTaxExpenseBenefit_c20210101__20211231_zjMcBKGPACo1" style="border-bottom: Black 2.5pt double; text-align: right" title="Income tax (benefit) expense">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_eus-gaap--IncomeTaxExpenseBenefit_c20200101__20201231_zVou5QFuw9Qc" style="border-bottom: Black 2.5pt double; text-align: right" title="Income tax (benefit) expense">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--IncomeTaxExpenseBenefit_c20190101__20191231_zZpRY0bBhelb" style="border-bottom: Black 2.5pt double; text-align: right" title="Income tax (benefit) expense">7,243</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

-2145530

-9075353

-61988515

0.25

-536383

-2268838

-15497129

1798398

109630 93455

536383

2133790

13369701

25418

242818

7243

Deferred income tax was measured using the enacted income tax rates for the periods in which they are expected to be reversed. Significant components of the Company’s deferred income tax assets and liabilities consist of follows: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 95%; margin-left: 0.25in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20211231_zkp1cYvrUdO8" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49B_20201231_zfFb6iPNWcJc" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_401_eus-gaap--ComponentsOfDeferredTaxAssetsAbstract_iB_zHleCIPQKJXj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify">Deferred income tax assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwards_iI_z8KtpTsZSZHe" style="vertical-align: bottom; background-color: White"> <td style="width: 56%; text-align: justify; padding-bottom: 1.5pt">Net operating loss carry forwards</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 18%; text-align: right">-</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 18%; text-align: right"> -</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--DeferredTaxAssetsGross_iI_ze7OX0Zr0uCe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify">Total Deferred income tax assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--DeferredTaxAssetsValuationAllowance_iI_zWaO0I5GZKAb" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Less: Valuation allowance</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--DeferredTaxAssetsNet_iI_zFAagmD1930l" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Net deferred income tax assets</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 95%; margin-left: 0.25in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As of December 31, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--DeferredTaxLiabilitiesAbstract_iB_zuWrnb1IYzs3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify">Deferred income tax liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--DeferredTaxLiabilitiesGoodwillAndIntangibleAssetsIntangibleAssets_iI_zIo7zZo7O6E3" style="vertical-align: bottom; background-color: White"> <td style="width: 56%; text-align: justify; padding-bottom: 1.5pt">Intangible assets from business combination</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 18%; text-align: right"> -</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 18%; text-align: right"> -</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--DeferredTaxLiabilities_iI_zs9Ls33jrFwa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Total deferred income tax liabilities</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table>

149536

252483

Since August 1, 2015, Sheng Ying Xin was classified as a general taxpayer with VAT of 6%. Kashgar Sheng Ying Xin is subject VAT of 4.5% (75% of general taxpayer’s rate of 6%), which is a tax holiday for enterprises established in Kashgar. Both FuhuiSZ and Anytrust are general taxpayers and subject to a 6% VAT rate. Yingda Xincheng was classified as a small-scale taxpayer and the VAT is at 3%. Furthermore, VAT payable of these four companies are subject to a 12% surtax, which includes urban maintenance and construction taxes and additional education fees.

Taxes payable consisted of the following: SCHEDULE OF TAX PAYABLE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49A_20211231_zuHrsnBbHor5" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20201231_zuO5h2Aqazo9" style="border-bottom: Black 1.5pt solid; text-align: center">As of December 31, 2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_403_ecustom--CorporateIncomeTaxPayable_iI_maTPCzDHX_zLIjXIHEsoE6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: justify">Corporate income tax payable</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right"> -</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">805,117</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--SalesAndExciseTaxPayableCurrent_iI_maTPCzDHX_z2fPfnrR19xl" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Value added tax payable</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">202,395</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_ecustom--OtherSurtaxesPayable_iI_maTPCzDHX_zTj5JxUJisF2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Other surtaxes payable</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">45,737</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--TaxesPayableCurrent_iTI_mtTPCzDHX_zVyS7hCYWBT" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,053,249</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> 805117

202395

45737

1053249

NOTE 13. (LOSS) EARNINGS PER SHARE The following table presents a reconciliation of basic and diluted earnings per share: SCHEDULE OF EARNINGS PER SHARE, BASIC AND DILUTED <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">For the years ended December, 31</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2019</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Numerator:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 46%; text-align: left">Net (loss)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--NetIncomeLoss_c20210101__20211231_znvOKYYho89d" style="width: 14%; text-align: right" title="Net (loss)">(2,145,530</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--NetIncomeLoss_c20200101__20201231_zyzJghTr2m5f" style="width: 14%; text-align: right" title="Net (loss)">(9,075,353</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--NetIncomeLoss_c20190101__20191231_zCY91DOiNEF1" style="width: 14%; text-align: right" title="Net (loss)">(61,995,758</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Denominator:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Weighted average number of common stock outstanding-basic and diluted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_c20210101__20211231_zRSsRB2CQa93" style="text-align: right" title="Weighted average number of common stock outstanding-basic and diluted">6,572,226</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_c20200101__20201231_ze7XiU5GAYFl" style="text-align: right" title="Weighted average number of common stock outstanding-basic and diluted">6,406,146</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_c20190101__20191231_fKg_____zeq311sxmad6" style="text-align: right" title="Weighted average number of common stock outstanding-basic and diluted">4,422,837</td><td id="xdx_F2C_zXhYKmMefEzh" style="text-align: left">*</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>(Loss) per share – basic and diluted</td><td> </td> <td style="text-align: left">$</td><td id="xdx_988_eus-gaap--EarningsPerShareBasic_c20210101__20211231_z1SWqtRc36L1" style="text-align: right" title="(Loss) per share - basic and diluted">(0.33</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_987_eus-gaap--EarningsPerShareBasic_c20200101__20201231_zP2TpAygjEjd" style="text-align: right" title="(Loss) per share - basic and diluted">(1.42</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_983_eus-gaap--EarningsPerShareBasic_c20190101__20191231_fKg_____zHw7sVtMAQcc" style="text-align: right" title="(Loss) per share - basic and diluted">(14.02</td><td style="text-align: left">)*</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td id="xdx_F0C_zD6QB4zDVKsb" style="width: 15pt; text-align: right">*</td><td style="text-align: justify">- The computation of basic and diluted share and EPS data was adjusted retroactively for all period presented to reflect the 5 to 1 reverse stock split change which was effective on October 29, 2020.</td> </tr></table>

The following table presents a reconciliation of basic and diluted earnings per share: SCHEDULE OF EARNINGS PER SHARE, BASIC AND DILUTED <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">For the years ended December, 31</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2019</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Numerator:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 46%; text-align: left">Net (loss)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--NetIncomeLoss_c20210101__20211231_znvOKYYho89d" style="width: 14%; text-align: right" title="Net (loss)">(2,145,530</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--NetIncomeLoss_c20200101__20201231_zyzJghTr2m5f" style="width: 14%; text-align: right" title="Net (loss)">(9,075,353</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--NetIncomeLoss_c20190101__20191231_zCY91DOiNEF1" style="width: 14%; text-align: right" title="Net (loss)">(61,995,758</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Denominator:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Weighted average number of common stock outstanding-basic and diluted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_c20210101__20211231_zRSsRB2CQa93" style="text-align: right" title="Weighted average number of common stock outstanding-basic and diluted">6,572,226</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_c20200101__20201231_ze7XiU5GAYFl" style="text-align: right" title="Weighted average number of common stock outstanding-basic and diluted">6,406,146</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_c20190101__20191231_fKg_____zeq311sxmad6" style="text-align: right" title="Weighted average number of common stock outstanding-basic and diluted">4,422,837</td><td id="xdx_F2C_zXhYKmMefEzh" style="text-align: left">*</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>(Loss) per share – basic and diluted</td><td> </td> <td style="text-align: left">$</td><td id="xdx_988_eus-gaap--EarningsPerShareBasic_c20210101__20211231_z1SWqtRc36L1" style="text-align: right" title="(Loss) per share - basic and diluted">(0.33</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_987_eus-gaap--EarningsPerShareBasic_c20200101__20201231_zP2TpAygjEjd" style="text-align: right" title="(Loss) per share - basic and diluted">(1.42</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_983_eus-gaap--EarningsPerShareBasic_c20190101__20191231_fKg_____zHw7sVtMAQcc" style="text-align: right" title="(Loss) per share - basic and diluted">(14.02</td><td style="text-align: left">)*</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td id="xdx_F0C_zD6QB4zDVKsb" style="width: 15pt; text-align: right">*</td><td style="text-align: justify">- The computation of basic and diluted share and EPS data was adjusted retroactively for all period presented to reflect the 5 to 1 reverse stock split change which was effective on October 29, 2020.</td> </tr></table>

-2145530

-9075353

-61995758

6572226

6406146

4422837

-0.33

-1.42

-14.02

NOTE 14. CONCENTRATION OF RISK Credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents. As of December 31, 2021, 2020 and 2019, substantially all of the Company’s cash and cash equivalents were held by major financial institutions located in Mainland China and Hong Kong, which management believes are of high credit quality. Under PRC law, it is generally required that a commercial bank in the PRC that holds third party cash deposits protect the depositors’ rights over and interests in their deposited money. PRC banks are subject to a series of risk control regulatory standards, and PRC bank regulatory authorities are empowered to take over the operation and management of any PRC bank that faces a material credit crisis. Currency convertibility risk The significant part of the Company’s businesses is transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices and signed contracts. These exchange control measures imposed by the PRC government authorities may restrict the ability of the Company’s PRC subsidiary and VIEs to transfer its net assets to the Company through loans, advances or cash dividends. Concentration of customers There was no revenue for the year ended December 31, 2021. No customers have outstanding accounts receivable balances as of December 31, 2021. There was only one customer of total revenue for the year ended December 31, 2020, which was prepaid revenue recognised in 2020. No customers have outstanding accounts receivable balances as of December 31, 2020. There was no customer whose revenue accounts for more than <span id="xdx_900_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20190101__20191231__srt--MajorCustomersAxis__custom--NoCustomerMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zMuX508YMQ9e" title="Concentration credit risk percentage">10% of total revenue for the year ended December 31, 2019. Three customers have outstanding accounts receivable balances that accounts for <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20190101__20191231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--OneCustomerMember_z1ueXXk2kKl9" title="Concentration credit risk percentage">44.01%, <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20190101__20191231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--TwoCustomerMember_zxtkmSBdtvfe" title="Concentration credit risk percentage">19.38% and <span id="xdx_907_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20190101__20191231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--ThreeCustomerMember_zX13MdjWzHfh" title="Concentration credit risk percentage">17.95% of the total accounts receivable balance as of December 31, 2019, respectively.

0.10

0.4401

0.1938

0.1795

NOTE 15. COMMITMENTS AND CONTINGENCIES The following table sets forth the Company’s office lease commitment as of December 31, 2021: SCHEDULE OF FUTURE MINIMUM PAYMENTS FOR OPERATING LEASES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 50%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49B_20211231_zIj77l65R8cb" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Office Rental</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Year ending December 31,</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_ze7cDiPIoaK9" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">2022</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 78%; text-align: right"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 18%; text-align: right"> </td><td style="width: 1%; text-align: left"/></tr> <tr id="xdx_400_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iI_zCtkG7yExc83" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> For the years ended December 31, 2021, 2020 and 2019, rental expenses under operating leases were approximately $112,100, $82,670, and $258,476, respectively. For the year ended December 31, 2020, the Company has written back an accrued payroll for the Company’s VIEs amounting to $475,943 (RMB 3,105,476). There has been no claims from the relevant employees for over 2 years. Clause 27 of the Labor Dispute Mediation and Arbitration Law of the People’s Republic of China provides that a claimant has the right to claim his outstanding salaries within one year after termination of the employment. Notwithstanding the foregoing, the Company cannot assure that the claimants have not lodged their claim(s) and such claim(s) has/have been delivered to our VIEs. Accordingly, the Company may be exposed to a potential but unlikely claim for $475,943 (RMB 3,105,476). In the ordinary course of business, the Company may be subject to legal proceedings regarding contractual and employment relationships and a variety of other matters. The Company records contingent liabilities resulting from such claims, when a loss is assessed to be probable and the amount of the loss is reasonably estimable. The company is not currently involved in any such claims.

The following table sets forth the Company’s office lease commitment as of December 31, 2021: SCHEDULE OF FUTURE MINIMUM PAYMENTS FOR OPERATING LEASES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 50%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49B_20211231_zIj77l65R8cb" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Office Rental</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Year ending December 31,</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_ze7cDiPIoaK9" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">2022</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 78%; text-align: right"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 18%; text-align: right"> </td><td style="width: 1%; text-align: left"/></tr> <tr id="xdx_400_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iI_zCtkG7yExc83" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

112100

82670

258476

475943

3105476

475943

3105476

NOTE 16. RESTRICTED NET ASSETS Relevant PRC statutory laws and regulations permit payments of dividends by the Company’s PRC subsidiary and VIEs only from their retained earnings, if any, determined in accordance with PRC GAAP. In addition, the Company’s subsidiary and VIEs in China are required to make annual appropriations of <span id="xdx_90F_ecustom--PercentageOfStatutorySurplusReserveAfterTaxNetIncome_pid_dp_c20210101__20211231__srt--RangeAxis__srt--MinimumMember_zDAcUfWldLcl" title="Percentage of statutory surplus reserve after tax net income">10% of after-tax profits to a general reserve fund or statutory reserve fund until such reserve has reached <span id="xdx_905_ecustom--PercentageOfStatutorySurplusReserveAfterTaxNetIncome_pid_dp_c20210101__20211231__srt--RangeAxis__srt--MaximumMember_zj0UzAvp5MLj" title="Percentage of statutory surplus reserve after tax net income">50% of its registered capital based on the enterprise’s PRC statutory accounts. Paid in capital of the PRC subsidiary and VIEs included in the Company’s consolidated net assets are also non-distributable for dividend purposes. As a result of these PRC laws and regulations, the Company’s PRC subsidiary and VIEs are restricted in their abilities to transfer net assets to the Company in the form of dividends, loans or advances. As of December 31, 2021 and 2020, net assets restricted in the aggregate, which include paid-in capital and statutory reserve funds of the Company’s PRC subsidiary and VIEs that are included in the Company’s consolidated balance sheets, were $22,879,785 and $11,353,962, respectively. Even though the Company currently does not require any such dividends, loans or advances from the PRC subsidiary and VIEs for working capital and other funding purposes, the Company may in the future require additional cash resources from its PRC subsidiary and VIEs due to changes in business conditions, to fund future acquisitions and developments, or merely declare and pay dividends to or distributions to the Company’s shareholders. The ability of our PRC subsidiaries to make dividends and other payments to us may also be restricted by changes in applicable foreign exchange and other laws and regulations. Foreign currency exchange regulation in China is primarily governed by the following rules: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td> <td style="font: 10pt Times New Roman, Times, Serif">Foreign Exchange Administration Rules (1996), as amended in August 2008, or the Exchange Rules;</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif">Administration Rules of the Settlement, Sale and Payment of Foreign Exchange (1996), or the Administration Rules.</td></tr> </table> As of December 31, 2021 and 2020 there were approximately $17,228,887 and $16,976,571 accumulated losses in the aggregate, respectively, which were generated by our PRC subsidiaries and VIEs in Renminbi included in our consolidated balance sheets, aside from $22,879,785 and $11,353,962 of the paid-in capital and statutory reserve funds as of December 31, 2021 and 2020, that may be affected by increased restrictions on currency exchanges in the future and accordingly may further limit our PRC subsidiaries’ or VIEs’ ability to make dividends or other payments in U.S. dollars to us, in addition to the restricted net assets as of December 31, 2021 and 2020, respectively, as discussed above.

0.10 0.50

22879785

11353962

17228887

16976571

22879785

11353962

NOTE 17. REVERSE STOCK SPLIT On October 13, 2020, our board of directors approved a 5:1 reverse split of our ordinary shares, which began trading on a split adjusted basis on October 29, 2020. As a result of the reverse share split, each five (5) pre-split shares automatically combined into one (1) ordinary share without any action on the part of the holders, and the number of outstanding ordinary shares was be reduced from 32,022,685 to 6,406,146. No fractional shares will be issued as a result of the reverse share split. Shareholders who otherwise would be entitled to a fractional share because they hold a number of ordinary shares not evenly divisible by the one (1) for five (5) reverse split ratio, will automatically be entitled to receive an additional fractional share to round up to the next whole share. On October 29, 2020, the Company effected a reverse stock split of its common stock, pursuant to which every FIVE (5) shares of common stock outstanding before the reverse split were converted into ONE (1) share of common stock after the reverse split. According to ASC 260-10-55-12 the computation of basic and diluted share and earnings per share amounts for all periods presented herein was adjusted retroactively to reflect the reverse split change as if it had occurred at the beginning of the year 2018. Also, see Significant events Note 18.

our board of directors approved a 5:1 reverse split of our ordinary shares, which began trading on a split adjusted basis on October 29, 2020. As a result of the reverse share split, each five (5) pre-split shares automatically combined into one (1) ordinary share without any action on the part of the holders, and the number of outstanding ordinary shares was be reduced from 32,022,685 to

32022685

6406146

the Company effected a reverse stock split of its common stock, pursuant to which every FIVE (5) shares of common stock outstanding before the reverse split were converted into ONE (1) share of common stock after the reverse split

NOTE 18. SIGNIFICANT EVENTS In December 2019, there was an outbreak of the novel coronavirus (COVID-19) in China that has since spread to many other regions of the world. The outbreak was subsequently labeled as a global pandemic by the World Health Organization in March 2020. It is anticipated that the COVID-19 outbreak may ultimately have a material adverse impact on the Company’s results of operations, financial position and cash flow in 2020 including, but not limited to: Transportation delays and cost increases, more extensive travel restrictions, closures or disruptions of businesses and facilities or social, economic, political or labor instability in the affected areas, may impact the Company’s customers’ operations. Customers may not be able to repay their loans on time due to lack of capital. The extent of the impact of COVID-19 on the Company’s operations and financial results depends on future developments and is highly uncertain due to the unknown duration and severity of the outbreak. The situation is changing rapidly and future impacts may materialize that are not yet known. The Company continues to monitor the situation closely and may implement further measures to provide additional financial flexibility and improve the Company’s cash position and liquidity. On April 9, 2020, the Company entered into subscription agreements with three accredited investors for the sale and issuance of two million shares (<span id="xdx_902_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20200408__20200409__us-gaap--TypeOfArrangementAxis__custom--SubscriptionAgreementsMember__srt--TitleOfIndividualAxis__custom--AccreditedInvestorsMember_z868Se24hzn2" title="Number of shares issued">2,000,000) ordinary shares of the Company, $<span id="xdx_905_eus-gaap--CommonStockParOrStatedValuePerShare_iI_c20200409__us-gaap--TypeOfArrangementAxis__custom--SubscriptionAgreementsMember__srt--TitleOfIndividualAxis__custom--AccreditedInvestorsMember_zNMJLV8Fzhhk" title="Stock par value">0.001 par value per share (“Ordinary Shares”) at a per-share price of $<span id="xdx_903_eus-gaap--SharesIssuedPricePerShare_iI_c20200409__us-gaap--TypeOfArrangementAxis__custom--SubscriptionAgreementsMember__srt--TitleOfIndividualAxis__custom--AccreditedInvestorsMember_zmAiB9RTlyQb" title="Shares issued price per share">0.40 for aggregate gross proceeds of $<span id="xdx_908_eus-gaap--ProceedsFromIssuanceOfCommonStock_pp0p0_c20200408__20200409__us-gaap--TypeOfArrangementAxis__custom--SubscriptionAgreementsMember__srt--TitleOfIndividualAxis__custom--AccreditedInvestorsMember_zwWb7scJrhO7" title="Proceeds from issuance of stock">800,000 (the “Private Placement). The subscription agreements contain customary representations, warranties and agreements by the Company and customary conditions to closing. The Company closed the Private Placement on May 12, 2020 and intend to use the funds for working capital. No brokers or placement agents was involved. Our Private Placement is exempt from the registration requirements of Section 5 of the Securities Act of 1933, as amended (the “Securities Act”), in reliance on Section 4(a)(2) thereof and/or Rule 506 of Regulation D and Regulation S thereunder, each as promulgated by the Securities and Exchange Commission (the “Commission”). In keeping with our plan to diversity our operations and rebrand ourselves, our corporate name was changed to “Hudson Capital Inc.” on April 23, 2020 and we began to trade under our new symbol, “HUSN” on May 8, 2020. On April 9, 2020, we incorporated a New York subsidiary, Hudson Capital USA Inc. On June 23, 2020 and July 31, 2020, we closed on two registered direct offerings for the purchase and sale of 4,352,941 of the Company’s ordinary shares, at a purchase price of $0.85 per share, for an aggregate purchase price of approximately $3.7 million and the purchase and sale of 3,555,556 of the Company’s ordinary shares, at a purchase price of $0.45 per share, for an aggregate purchase price of approximately $1.6 million, respectively. Chardan Capital Markets LLC acted as placement agent in both offerings. The net proceeds to the Company from the offerings, after deducting placement agent fees and estimated offering expenses, were approximately $3.328 million and $1.39 million, respectively. Our securities were transferred to the Capital Market at the opening of business on July 16, 2020. On August 20, 2020, Mr. Jinchi Xu tendered his resignation as Chief our Financial Officer and director and on the same day, we appointed Mr. Hon Man Yun to succeed Mr. Xu as Chief Financial Officer and director. On September 9, 2020, we incorporated Hudson Capital Merger Sub I Inc. in Delaware, which in turn incorporated Hudson Capital Merger Sub I Inc. in Delaware as a wholly-owned subsidiary. On October 26, 2020, we filed Amended and Restated Memorandum and Articles of Association with the Registrar of Corporate Affairs of the British Virgins Islands to effect a 5-for-1 reverse stock split (the “Reverse Split”) of our ordinary shares. As a result of the Reverse Split, every five (5) ordinary shares were automatically combined into one (1) ordinary share. In connection with the Reverse Split, our par value per share was increased from $0.001 to $0.005. In a bid to strategically adjust our business to diversify into new business opportunities, on October 10, 2020, we entered into an Agreement and Plan of Merger (as it may be amended from time to time, the “Merger Agreement”), with Hudson Capital Merger Sub I, Inc., a Delaware corporation and our wholly-owned subsidiary (“Merger Sub I”), Hudson Capital Merger Sub II, Inc., a Delaware corporation and Merger Sub I’s wholly-owned subsidiary, Freight App, Inc. (formerly known as FreightHub, Inc.), a Delaware corporation (“Fr8 App”) and ATW Master Fund II, L.P., as the representative of the stockholders of Fr8 App (the “Stockholders’ Representative”). This Merger Agreement was terminated on December 13, 2021 after the Board determined it was in our best interest to change strategies. In its stead, a new merger agreement was entered into between, us, Merger Sub I, Fr8 App and the Stockholders’ Representative on December 13, 2021 (the “New Merger Agreement”). Under the New Merger Agreement, the Company acquires all the issued and outstanding securities of Freight App and assume Freight App as its direct, wholly–owned subsidiary. On September 16, 2021, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with ATW Opportunities Master Fund, L.P. (“ATW”) pursuant to which the Company agreed to sell for an aggregate purchase price of $<span id="xdx_905_eus-gaap--StockIssuedDuringPeriodValueNewIssues_c20210911__20210916__dei--LegalEntityAxis__custom--MasterFundLPMember__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember_zD6XYTgWJU99" title="Number of shares issued, value">2,700,000, an aggregate of <span id="xdx_90A_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20210911__20210916__dei--LegalEntityAxis__custom--MasterFundLPMember__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember_zHBuFDbtikG3" title="Number of shares issued">630,000 ordinary shares, par value $<span id="xdx_90E_eus-gaap--CommonStockParOrStatedValuePerShare_iI_c20210916__dei--LegalEntityAxis__custom--MasterFundLPMember__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember_zYLhiXudL66h" title="Commonn stock par value">0.005 (“Ordinary Shares”) of the Company and a pre-funded warrant (the “Warrant”) to purchase <span id="xdx_905_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20210916__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__dei--LegalEntityAxis__custom--MasterFundLPMember_zRi4rPqgCVJb" title="Purchase of warrants">650,000 Ordinary Shares (the “Securities Purchase”). The closing of the Securities Purchase will be subject to customary closing conditions. The net proceeds from the Securities Purchase, after expenses, will be approximately $<span id="xdx_909_eus-gaap--ProceedsFromLoans_pn5n6_c20210911__20210916__dei--LegalEntityAxis__custom--MasterFundLPMember__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember_z5aPBymnywi8" title="Proceeds from loans">2.6 million, of which $<span id="xdx_90D_eus-gaap--ProceedsFromLoans_pn5n6_c20210911__20210916__dei--LegalEntityAxis__custom--MasterFundLPMember__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--DebtInstrumentAxis__custom--FrEightAppLoanMember_z5918ra7zcOf" title="Proceeds from loans">1.5 million will be used to fund a loan to Fr8App (the “Fr8App Loan”) evidenced by a promissory note issued by Fr8App to the Company dated September 16, 2021 (the “Promissory Note”). In connection with the Fr8App Loan, Fr8App also issued the Company a warrant (the “Fr8App Warrant”) to purchase certain securities of Fr8App in an aggregate value of $<span id="xdx_901_eus-gaap--StockIssuedDuringPeriodValueNewIssues_c20210911__20210916__dei--LegalEntityAxis__custom--MasterFundLPMember__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--SubsidiarySaleOfStockAxis__custom--FrEightAppWarrantMember_zCvHDrOJdEVk" title="Number of shares issued, value">2,700,000. The Company agreed to assign the Fr8App Warrant it received from Fr8App thereunder to ATW and executed a Warrant Assignment Agreement on the same date. The effectiveness of the Fr8App Loan and the Fr8App Warrant is contingent on the closing of the Securities Purchase by ATW. The Securities Purchase was consummated on September 28, 2021.

2000000

0.001

0.40

800000

4352941

0.85

3700000

3555556

0.45

1600000

3328000

1390000

2700000

630000

0.005

650000

2600000

1500000

2700000

NOTE 19. SUBSEQUENT EVENTS On February 9, 2022, Fr8App, ATW Opportunities together with certain existing stockholders of Fr8App (collectively, the “SPA Investors”) entered into an amended and restated Securities Purchase Agreement with the Company (the “A&R SPA”) pursuant to which the Company agreed to, among other things, issue four series of warrants (Series A, Series B, Series C and Series D) to purchase an aggregate of <span id="xdx_907_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20220209__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--SubsidiarySaleOfStockAxis__custom--SeriesAWarrantMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zZ3NvMkdRCWk" title="Purchase of warrants"><span id="xdx_90C_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20220209__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--SubsidiarySaleOfStockAxis__custom--SeriesBWarrantMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zBPgbBjRGE96" title="Purchase of warrants"><span id="xdx_908_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20220209__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--SubsidiarySaleOfStockAxis__custom--SeriesCWarrantMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zD4jRCRnqgkf" title="Purchase of warrants"><span id="xdx_908_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20220209__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--SubsidiarySaleOfStockAxis__custom--SeriesDWarrantMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zR4UFye89oVf" title="Purchase of warrants">16,257,671 of the Company’s ordinary shares. These warrants will remain exercisable for a period of seven years after issuance. The exercise price of Series A, Series B, Series C and Series D Warrants are $<span id="xdx_90F_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20220209__us-gaap--SubsidiarySaleOfStockAxis__custom--SeriesAWarrantMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zfvmaclvGM14" title="Warrant exercise price">1.50, $<span id="xdx_90E_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20220209__us-gaap--SubsidiarySaleOfStockAxis__custom--SeriesBWarrantMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zYyc0R9gRZVd" title="Warrant exercise price">1.20, $<span id="xdx_90A_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20220209__us-gaap--SubsidiarySaleOfStockAxis__custom--SeriesCWarrantMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zPXTxKfMMeM6" title="Warrant exercise price">0.75, and $<span id="xdx_900_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20220209__us-gaap--SubsidiarySaleOfStockAxis__custom--SeriesDWarrantMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_z7or4hIQARDe" title="Warrant exercise price">1.125 per ordinary share, respectively, subject to customary adjustments for stock splits, dividends, rights offerings, pro rata distributions and fundamental transactions. As part of the Merger, on February 9, 2022, the Company and ATW Opportunities Master Fund, L.P. (“ATW Opportunities”), together with certain investors (collectively, the “PIPE Investors”) entered into a Securities Purchase Agreement pursuant to which the Company agreed to sell and issue to the PIPE Investors an aggregate of <span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20220201__20220209__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--StatementClassOfStockAxis__custom--RestrictedSeriesBPreferredStockMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__dei--LegalEntityAxis__custom--ATWOpportunitiesMasterFundLPMember_z3YoHO4mGlTb" title="Number of shares issued">2,333,333 restricted Series B Preferred Shares along with Series A warrants to purchase <span id="xdx_90A_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20220209__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--SubsidiarySaleOfStockAxis__custom--SeriesDWarrantMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__dei--LegalEntityAxis__custom--ATWOpportunitiesMasterFundLPMember_zKhSOdiDbHu2" title="Purchase of warrants">2,333,333 of the Company’s ordinary shares, in a private placement for an aggregate purchase price of $<span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodValueNewIssues_c20220201__20220209__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--StatementClassOfStockAxis__custom--RestrictedSeriesBPreferredStockMember__dei--LegalEntityAxis__custom--ATWOpportunitiesMasterFundLPMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zHfJTVMrJLrj" title="Number of shares issued, value">3,500,000 upon closing of the Merger. On February 14, 2022, a Certificate of Merger was filed with the Secretary of State of the State of Delaware, in accordance with the relevant provisions of Delaware Law, whereby in accordance with the New Merger Agreement, Merger Sub I merged with and into Fr8 App, with Fr 8App surviving the Merger and continuing as a direct wholly-owned subsidiary of the Company (the “Merger”). The Merger closed on February 14, 2022 and the separate corporate existence of Merger Sub I and its Certificate of Incorporation and by-laws then in effect ceased, and the organizational documents of Fr8 App after the Merger is in the form as agreed by the Company and Fr8 App. On February 14, 2022, the <span id="xdx_905_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20220211__20220214__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zdamUedqgB09">650,000 Ordinary Shares have been issued for the effectiveness of the Warrant. On February 14, 2022, the Company entered into a Stock Sale and Purchase Agreement with Wave Sync Corp. for selling all shares of Hudson Capital USA Inc. to Wave Sync. Corp. for $<span id="xdx_90D_eus-gaap--SaleOfStockConsiderationReceivedOnTransaction_c20220211__20220214__us-gaap--TypeOfArrangementAxis__custom--StockSaleAndPurchaseAgreementMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__dei--LegalEntityAxis__custom--WaveSyncCorpMember_zrbuTzyeIMSh" title="Sale of stock consideration received on transaction">1 and the transaction was closed at February 16, 2022. <span id="xdx_907_eus-gaap--StockholdersEquityReverseStockSplit_c20220211__20220214__us-gaap--TypeOfArrangementAxis__custom--StockSaleAndPurchaseAgreementMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__dei--LegalEntityAxis__custom--WaveSyncCorpMember_zjoSY4tWnXpb" title="Reverse stock split">The Company effected a 2.2 for 1 reverse stock split on its Ordinary Shares as of trading beginning on February 15, 2022. In order to focus on its core business as a North American transportation logistics technology platform company and improving operations, the Company has decided to divest any non-core, non-performing businesses and to sell its wholly-owned subsidiary, Hong Kong Internet Financial Services (“HKIFS”), to private investors. On March 30, 2022, the Company entered into a Buough and Sold Note with a private investor and executed an Instrument of Transfer to transfer its one (1) shall in its wholly-owned Hong Kong subsidiary, Hongkong Internet Financial Services Limited (“HKIFS”) to the private investor for HK$<span id="xdx_903_eus-gaap--SaleOfStockConsiderationReceivedOnTransaction_uHKD_c20220321__20220330__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zTxtdZ3pUQhe" title="Sale of stock consideration received on transaction">1. The divestment of HKIFS will result in the Company departing from its legacy People’s Republic of China financial advisory business and shifting its priorities towards being situated in geographical locations of its core businesses. The sale of HKIFS was completed on March 30, 2022 and included all of the prior operations, obligations and commitments related to its Chinese operations. The Company expects immaterial financial effects from the sale outside of incurring minimal legal expenses to assemble and formalize the transaction. Following is Hudson’s structure following the sale of HKIFS: <img alt="" src="form20-f_010.jpg"/> Except for the above mentioned matters, no other material events are required to be adjusted or disclosed as of the report date of the consolidated financial statements.

16257671

1.50

1.20

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1.125

2333333

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650000

The Company effected a 2.2 for 1 reverse stock split

UHY LLP 1195 Melville, New York

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<p id="xdx_809_eus-gaap--OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock_zRXruTnASodk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS General Freight App, Inc. (“Freight App US”) (formerly known as “Freighthub, Inc.”), a Delaware corporation, was incorporated on October 26, 2015 for the purpose of arranging for pick-up, transport, and delivery of full truckload freight shipments. On January 18, 2019, Freight App Mexico S.A De C.V. (“Freight App Mexico”) (formerly known as “Freight Hub Mexico S.A. De C.V.”), a wholly owned subsidiary of Freight App Inc., was formed. On July 29, 2021, Freight App US and Freight App Mexico filed their name change. Freight App Inc., along with its wholly owned subsidiary, Freight App Mexico, are hereinafter referred to as the “Company”. The Company provides innovative digital freight matching technology that streamlines cross-border and domestic USA (from and to border cities) and domestic Mexico shipping, connecting shippers with a broad network of reliable carriers and drivers in Mexico, Canada, and the United States. Merger On October 10, 2020, the Company entered into an agreement and plan of merger with Hudson Capital, Inc. (“Hudson”), as amended on May 18, 2021. On December 13, 2021, the October 10, 2020 agreement and plan of merger was terminated and the Company entered into a new merger agreement (“Merger”) with Hudson and ATW Master Fund II, L.P., as the representative of the stockholders of the Company (the “Stockholders’ Representative”) by which Hudson acquires all the issued and outstanding securities of the Company and assume the Company as its direct, wholly–owned subsidiary. The Merger closed on February 14, 2022 and a Certificate of Merger was filed with the Secretary of State for the State of Delaware, in accordance with the relevant provisions of Delaware Law. As part of the Merger, on February 9, 2022, Hudson and ATW Opportunities Master Fund, L.P. (“ATW Opportunities”), together with certain investors (collectively, the “PIPE Investors”) entered into a Securities Purchase Agreement pursuant to which Hudson agreed to sell and issue to the PIPE Investors an aggregate of <span id="xdx_906_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20220201__20220209__us-gaap--StatementClassOfStockAxis__custom--RestrictedSeriesBPreferredStockMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__dei--LegalEntityAxis__custom--ATWOpportunitiesMasterFundLPMember_zzXsGSmxbVPd" title="Number of shares issued">2,333,333 restricted Series B Preferred Shares along with Series A warrants to purchase <span id="xdx_909_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20220209__us-gaap--StatementClassOfStockAxis__custom--RestrictedSeriesBPreferredStockMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__dei--LegalEntityAxis__custom--ATWOpportunitiesMasterFundLPMember_zHYFqJABpTYc" title="Purchase of warrants">2,333,333 of the Hudson’s ordinary shares, in a private placement for an aggregate purchase price of $<span id="xdx_900_eus-gaap--StockIssuedDuringPeriodValueNewIssues_c20220201__20220209__us-gaap--StatementClassOfStockAxis__custom--RestrictedSeriesBPreferredStockMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__dei--LegalEntityAxis__custom--ATWOpportunitiesMasterFundLPMember_z8nv6GOy8rMf" title="Number of shares issued, value">3,500,000 upon closing of the Merger. On February 9, 2022, the Company, ATW Opportunities together with certain existing stockholders of the Company (collectively, the “SPA Investors”) entered into an amended and restated Securities Purchase Agreement with Hudson (the “A&R SPA”) pursuant to which Hudson agreed to, among other things, issue four series of warrants (Series A, Series B, Series C and Series D) to purchase an aggregate of <span id="xdx_90A_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20220209__us-gaap--SubsidiarySaleOfStockAxis__custom--SeriesAWarrantMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zyLmjR4ebzWk" title="Purchase of warrants"><span id="xdx_90B_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20220209__us-gaap--SubsidiarySaleOfStockAxis__custom--SeriesBWarrantMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zbwQS76N5gPd" title="Purchase of warrants"><span id="xdx_903_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20220209__us-gaap--SubsidiarySaleOfStockAxis__custom--SeriesCWarrantMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_z0a7C2KeyHy3" title="Purchase of warrants"><span id="xdx_904_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20220209__us-gaap--SubsidiarySaleOfStockAxis__custom--SeriesDWarrantMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zNh7jtCEvSAb" title="Purchase of warrants">16,257,671 of Hudson’s ordinary shares. These warrants will remain exercisable for a period of seven years after issuance. The exercise price of Series A, Series B, Series C and Series D Warrants are $1.50, $1.20, $0.75, and $1.125 per ordinary share, respectively, subject to customary adjustments for stock splits, dividends, rights offerings, pro rata distributions and fundamental transactions. All of the Company’s convertible notes were converted in February 2022 into Hudson’s equity in their entirety as a result of the Merger. All shares of common stock, preferred stock, series seed, warrants and stock options of the Company issued and outstanding immediately prior to the merger were cancelled and converted into equivalent Hudson’s securities at an exchange ratio estimated at 1 to 1.26855 (“Exchange Ratio”). Upon the closing of the transaction, the Company shareholders own <span id="xdx_901_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_dp_uPure_c20220209__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--ShengYingXinMember_zZWaCWdciVf1" title="Ownership percentage">81.1% of the combined company on a non-diluted basis. The recent global pandemic outbreak, or COVID-19, continues to adversely impact commercial activity, globally and in the United States, and has contributed to significant volatility in financial markets. The outbreak could have a continued adverse impact on economic and market conditions, including business and financial services disruption. As of the date these consolidated financial statements were available to be issued, the effects of impact are unknown and the Company will continue to monitor the potential impact of COVID-19 on the Company’s consolidated financial statements. FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020

2333333

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NOTE 2 – LIQUIDITY The accompanying consolidated financial statements do not include any adjustments or classifications that may result from the possible inability of the Company to continue as a going concern. The accompanying consolidated financial statements have been prepared on a basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying consolidated financial statements as of the year ended December 31, 2021, the Company has an accumulated deficit of $21,800,763 and working capital deficit of $9,738,852. At December 31, 2021, the Company had total debt of $12,359,531 and $3,152,993 of unrestricted cash on hand. The Company has historically met its cash needs through a combination of term loans, promissory notes, convertible notes, private placement offerings and sales of equity. The Company’s cash requirements are generally for operating activities. The Company believes cash on hand and proceeds from the PIPE Investors as part of the Merger will allow the Company to continue as a going concern for the next twelve months from the issuance of these consolidated financial statements.

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NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation These consolidated financial statements and related notes are presented in accordance with generally accepted accounting principles in the United States (“GAAP”), expressed in U.S. dollars. In the opinion of the management, the accompanying consolidated financial statements reflect all normal recurring adjustments, which in the opinion of management, are necessary to present fairly the financial position, results of operations, and cash flows for the periods presented in accordance with GAAP. The accompanying consolidated financial statements include the accounts of Freight App US and its wholly owned subsidiary, Freight App Mexico. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingencies at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include, but are not limited to, allowance for doubtful accounts, valuation of share-based compensation and warrants, fair value of the company’s stock, accrued expenses, useful lives of internally developed software and property and equipment, whether an arrangement is or contains a lease, the discount rate used for operating leases, fair value of financial instruments and warrant liabilities, income tax accruals and the valuation allowance for deferred income taxes. The Company bases these estimates on historical and anticipated results, trends, and various other assumptions that it believes are reasonable under the circumstances, including assumptions as to future events. Actual results could differ from those estimates. Cash and Cash Equivalents Cash consists of funds held in bank accounts. Cash equivalents consist of short-term, highly liquid investments with original maturities of 90 days or less at the time of purchase and generally include money market accounts. Concentrations of Credit Risk The Company maintains cash accounts with various financial institutions. At times, balances in these accounts may exceed federally insured limits. Accounts at each institution within the United States (“US”) are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. Additionally, a portion of the Company’s cash is deposited in non-US accounts. The funds are held with financial intuition that offer deposit insurance and bear specific country and regional risks. The amounts over the insured limits as of December 31, 2021 and 2020 was $2,661,919 and $2,249,070, respectively. No losses have been incurred to date on any deposit balances. The financial instrument that potentially subjects the Company to concentration of credit risk is accounts receivable and unbilled receivables. At December 31, 2021, two customers accounted for <span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20210101__20211231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--OneCustomersMember_zfn6pxWJedB" title="Concentration Risk, Percentage">35% and <span id="xdx_903_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20210101__20211231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--TwoCustomersMember_zuzbhLv3P0R9" title="Concentration Risk, Percentage">15% of the Company’s accounts receivable, respectively, and as of December 31, 2020, three customers accounted for <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20200101__20201231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--OneCustomersMember_z9VhvzhGsZr8" title="Concentration Risk, Percentage">11%, <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20200101__20201231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--TwoCustomersMember_zb4CxZCBIB1" title="Concentration Risk, Percentage">12% and <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20200101__20201231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--ThreeCustomersMember_z5blsd05iJpg" title="Concentration Risk, Percentage">13% of the Company’s accounts receivable, respectively. FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020 NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) For the year ended December 31, 2021, one customer accounted for <span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20210101__20211231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__srt--MajorCustomersAxis__custom--OneCustomersMember_z6Um4EZjPgm3" title="Concentration Risk, Percentage">37% of the Company’s revenues. For the year ended December 31, 2020, one customer accounted for <span id="xdx_900_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20200101__20201231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__srt--MajorCustomersAxis__custom--OneCustomersMember_zfrX2PxvufWa" title="Concentration Risk, Percentage">13% of the Company’s revenues. Fair Value Measurements The Company is required to disclose information on all assets and liabilities reported at fair value that enables an assessment of the inputs used in determining the reported fair values. Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), establishes a hierarchy of inputs used when available. Observable inputs are what market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are those that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. The three levels of the fair value hierarchy are described below: Level 1—Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2—Valuations based on quoted prices for similar assets or liabilities in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3—Valuations that require inputs that are unobservable for the asset and liability in which there is little, if any, market activity. Fair Value of Financial Instruments The carrying amounts of the Company’s financial instruments, which include trade accounts receivable, unbilled receivables, accounts payable, accrued expenses, and debt at variable interest rates, approximate their fair values at December 31, 2021 and 2020, respectively, principally due to the short-term nature, maturities, or nature of interest rates of the above listed items. Accounts Receivable and Allowance for Credit Losses Accounts receivable are recorded at the net invoiced amount, net of allowances for credit losses, and do not bear interest. Unbilled receivables include unbilled amounts for services rendered in the respective period but not yet billed to the customer until a future date, which typically occurs within one month, are recorded separately on the consolidated balance sheets. The allowance for credit losses is the Company’s best estimate of the amount of probable credit losses in existing accounts receivable. In accordance with Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, the Company also considers reasonable and supportable forecasts of future economic conditions and their expected impact on customer collections in determining the allowance for credit losses. The Company determines expected credit losses based on historical write-off experience, an analysis of the aging of outstanding receivables, customer payment patterns, and our expectations of changes in macro-economic conditions, including the ongoing COVID-19 pandemic, that may impact the collectability of outstanding receivables. Balances are considered past due based on invoiced terms. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. As of December 31, 2021 and 2020, the allowance for credit losses was $77,483 and $0, respectively. Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or circumstances exist that indicate the carrying amount of an asset or asset group may not be recoverable. Recoverability of assets is measured by comparing the carrying amounts of the assets to the future undiscounted cash flows expected to be generated by the assets. If the asset or asset group is considered to be impaired, an impairment loss would be recorded to adjust the carrying amounts to the estimated fair value. Management has determined that no impairment of long-lived assets exists, and accordingly, FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020 NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) no adjustments to the carrying amounts of the Company’s long-lived assets have been made for the year ended December 31, 2021 and 2020. Property and Equipment Property and equipment consisting of office and computer equipment, furniture and leasehold improvements are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives, ranging between three to seven years. SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td style="font-size: 11pt"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: center">Useful Lives</td></tr> <tr style="vertical-align: bottom"> <td style="width: 49%">Equipment</td><td style="width: 2%"> </td> <td style="width: 49%; text-align: center">3 years</td></tr> <tr style="vertical-align: bottom"> <td>Furniture</td><td> </td> <td style="text-align: center"><span id="xdx_901_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20210101__20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zRRsrxPaaOae" title="Estimated useful lives">7 years</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left">Leasehold improvements</td><td> </td> <td style="text-align: center"><span id="xdx_90B_eus-gaap--PropertyPlantAndEquipmentEstimatedUsefulLives_c20210101__20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zKNMX8dW5c2j" title="Estimated useful lives, description">Shorter of useful life of asset or lease term</td></tr> </table> Capitalized Software The Company complies with the guidance of ASC Topic 350-40, “Intangibles—Goodwill and Other—Internal Use Software”, in accounting for of its internally developed system projects that it utilizes to provide its services to customers. These system projects generally relate to software of the Company that is not intended for sale or otherwise marketed. Internal and external costs incurred during the preliminary project stage are expensed as they are incurred. Once a project has reached the development stage, the Company capitalizes direct internal and external costs until the software is substantially complete and ready for its intended use. Costs for upgrades and enhancements are capitalized, whereas, costs incurred for maintenance are expensed as incurred. These capitalized software costs are amortized on a project-by- project basis over the expected economic life of the underlying software on a straight-line basis, which is generally three years. Amortization commences when the software is available for its intended use. Warrants The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own ordinary shares, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding. Warrants classified as liabilities are recorded at fair value and are remeasured at each reporting date until settlement. Changes in fair value is recognized as a component of change in fair value of warrant liability in the consolidated statements of operations. The fair value of the warrant liabilities was estimated using a Black-Scholes option pricing formula. The warrant volatility assumption within the Black-Scholes model represents a Level 3 measurement within the fair value measurement hierarchy. Warrants classified as equity instruments are initially recognized at fair value and are not subsequently remeasured. Advertising Advertising costs are expensed as incurred. Advertising costs amounted to $421 and $10,257 for the years ended December 31, 2021 and 2020, respectively. FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020 NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Income Taxes The Company accounts for income taxes using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax basis, net operating losses, tax credit and other carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates when the assets and liabilities are expected to be realized or settled. The Company regularly reviews deferred tax assets for realizability and establishes valuation allowances based on available evidence including historical operating losses, projected future taxable income, expected timing of the reversals of existing temporary differences, and appropriate tax planning strategies. If the Company’s assessment of the realizability of a deferred tax asset changes, an increase to a valuation allowance will result in a reduction of net earnings at that time, while the reduction of a valuation allowance will result in an increase of net earnings at that time. The Company follows ASC Topic 740-10-65-1 in accounting for uncertainty in income taxes by prescribing rules for recognition, measurement and classification in financial statements of tax positions taken or expected to be in a tax return. This prescribes a two-step process for the financial statement measurement and recognition of a tax position. The first step involves the determination of whether it is more likely than not (greater than 50 percent likelihood) that a tax position will be sustained upon examination, based on the technical merits of the position. The second step requires that any tax position that meets the more likely than not recognition threshold be measured and recognized in the financial statements at the largest amount of benefit that is a greater than 50 percent likelihood of being realized upon ultimate settlement. This topic also provides guidance on the accounting for related interest and penalties, financial statement classification and disclosure. The Company’s policy is that any interest or penalties related to uncertain tax positions are recognized in income tax expense when incurred. The Company has no uncertain tax positions or related interest or penalties requiring accrual at December 31, 2021 and 2020. Foreign Currency Translation The financial statements of the Company’s subsidiary operating in Mexico are prepared to conform to U.S. GAAP and translated into U.S. Dollars by applying a current exchange rate. The local currency has been determined to be the functional currency. Assets and liabilities of non-U.S. operations are translated at period-end exchange rates. Items appearing in the consolidated statements of operations are translated using average exchange rates during each period. Translation gains and losses are reported in accumulated other comprehensive income (loss) as a component of stockholders’ equity (deficit). Deferred Financing Costs and Debt Discount Costs incurred in connection with obtaining certain financing are deferred and amortized on an effective interest method basis over the term of the related obligation. Debt discounts are also amortized using the effective interest method unless the interest method approximates the straight-line method. Amortization of such costs are included in interest expense, while the unamortized balances of deferred financing fees and debt discount are presented as reductions of the carrying value of the related debt. Intangible Assets Intangible assets include the Company’s domain name and are accounted for based on ASC Topic 350 “Intangibles – Goodwill and Other.” The Company’s intangible assets that have finite lives, consisting of intellectual property, are amortized over their useful lives and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If any indicators were present, the Company would test for recoverability by comparing the carrying amount of the asset to the net undiscounted cash flows expected to be generated from the asset. If those net undiscounted cash flows do not exceed the carrying amount (i.e., the asset is not recoverable), the Company would perform the next step, which is to determine the fair value of the asset and record an impairment loss, if any. The Company evaluates the useful lives for these intangible assets each reporting period to determine whether events and circumstances warrant a revision in their remaining useful lives. FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020 NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Foreign Operations Operations outside the United States include a wholly-owned subsidiary in Mexico. Foreign operations are subject to risks inherent in operating under different legal systems and various political and economic environments. Among the risks are changes in existing tax laws, possible limitations on foreign investment and income repatriation, government price or foreign exchange controls, and restrictions on currency exchange. Revenue Recognition The Company’s revenues are accounted for under FASB Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers.” The Company generates revenues primarily from shipments executed by the Company’s freight transportation brokerage services to shippers through the Company’s freight rideshare marketplace. Shippers contract with the Company to utilize the Company’s network of independent freight carriers to transport freight. Those shipments are the Company’s performance obligation, arising under contracts the Company has entered into with customers that define the price for each shipment and payment terms. The Company’s acceptance of the shipment request establishes enforceable rights and obligations for each contract. By accepting the shipper’s order, the Company has responsibility for transportation of the shipment from origin to destination. Under such contracts, revenue is recognized when obligations are satisfied, which occurs over time with the transit of shipments from origin to destination. This is appropriate as the customer simultaneously receives and consumes the benefits as the Company performs its obligation. The Company determines revenue in-transit using the input method, under which revenue is recognized based on the duration of time that has lapsed from the departure date (start of transportation services) to the arrival date (completion of transportation services). Measurement of revenue in-transit requires the application of significant judgement. The Company calculates the estimated percentage of an order’s transit time that is complete at period end and apply that percentage of completion of the order’s estimated revenue. Revenue is measured as the amount of consideration the Company expects to receive in exchange for providing services. Accessorial charges for fuel surcharge, loading and unloading, stop charges, and other immaterial charges are part of the consideration received for the single performance obligation of delivering shipments. Payment for the Company’s services is generally due within 30 to 45 days upon delivery of the shipment. Contracts entered into with customers do not contain material financing components. The Company’s contracts with customers have a duration of one year or less and do not require any significant start-up costs, and as such, costs incurred to obtain contracts associated with these contracts are expensed as incurred. Through the Company’s freight brokerage services, the Company is responsible for identifying and directing independent freight carriers to transport the shipper’s goods. The transportation of the loads is outsourced to third-party carriers. The Company is a principal in these arrangements, and therefore records revenue associated with these contracts on a gross basis. The Company controls the service and has primary responsibility to meet the customer’s requirements. The Company invoices and collects from its customers and also maintains discretion over pricing. Additionally, the Company is responsible for selection of third-party transportation providers to the extent used to satisfy customer freight requirements. The timing of revenue recognition, billings, cash collections, and allowance for doubtful accounts results in billed and unbilled receivables on the Company’s consolidated balance sheet. The Company receives the unconditional right to bill when shipments are delivered to their destination. Convertible Debt The Company evaluates convertible debt to determine the impact (if any) of 1) embedded conversion option; 2) beneficial conversion feature; 3) bifurcation; 4) derivative liability; and 5) fair value adjustments and other expenses thereto. In assessing the convertible debt instruments, management determines if the convertible debt host instrument is conventional convertible debt and further if there is a beneficial conversion feature requiring measurement. If the instrument is not considered conventional convertible debt under ASC Topic 470, “Debt” (“ASC 470”), the Company will continue its evaluation process of these instruments as derivative financial instruments under ASC Topic 815, “Derivatives and Hedging” (“ASC 815”). FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020 NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Conventional convertible debt is a financial instrument in which the holder may only realize the value of the conversion option by exercising the option and receiving the entire proceeds in a fixed number of shares or the equivalent amount of cash. Conventional convertible debt, for which the fair value option is not elected at issuance, is accounted for as straight debt with no accounting recognition of the embedded equity option. The convertible debt the Company issued prior to 2020, had the following typical characteristics for a conventional convertible debt: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"> <tr style="vertical-align: top"> <td style="width: 0.25in"> </td> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 0.25in">●</td> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: justify">The debt security is convertible into the common stock of the issuer at a specified price at the option of the holder.</td></tr> <tr style="vertical-align: top"> <td> </td> <td style="font: 11pt Calibri, Helvetica, Sans-Serif">●</td> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: justify">The debt security was sold at a price or has a value at issuance not significantly in excess of the face amount.</td></tr> <tr style="vertical-align: top"> <td> </td> <td style="font: 11pt Calibri, Helvetica, Sans-Serif">●</td> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: justify">It bears an interest rate that is lower than the Company would obtain for nonconvertible debt.</td></tr> <tr style="vertical-align: top"> <td> </td> <td style="font: 11pt Calibri, Helvetica, Sans-Serif">●</td> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: justify">If converted, the Company must deliver shares of its stock to the investor (i.e., physical settlement). There is no cash conversion feature by which the convertible debt can be settled in full or in part in cash upon conversion.</td></tr> <tr style="vertical-align: top"> <td> </td> <td style="font: 11pt Calibri, Helvetica, Sans-Serif">●</td> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: justify">The initial conversion price of the security is greater than the market value of the common stock at time of issuance and there is no beneficial conversion feature (“BCF”) upon issuance to be bifurcated and separately accounted for.</td></tr> </table> Since the Company has determined that the embedded conversion options should not be bifurcated from their host instruments, the Company accounts for convertible debt instruments in accordance with ASC 470-20, Debt with Conversion and Other Options. Share-Based Compensation The Company accounts for share-based awards, including stock options and restricted stock awards, issued to employees in accordance with ASC Topic 718, “Compensation—Stock Compensation”. In addition, the Company issues stock options to non-employees in exchange for consulting services and accounts for these in accordance with the provisions of ASC 718, as amended by ASU 2018-07. Compensation expense is measured at the grant, based on the calculated fair value of the award, and recognized as an expense over the requisite service period, which is generally the vesting period of the grant. For modification of stock compensation awards, the Company records the incremental fair value of the modified award as share-based compensation on the date of modification for vested awards or over the remaining vesting period for unvested awards. The incremental compensation is the excess of the fair value of the modified award on the date of modification over the fair value of the original award immediately before the modification. In addition, the Company records the remaining unrecognized compensation cost for the original cost for the original award on the modification date over the remaining vesting period for unvested awards. For options granted to non-employees, the expected life of the option used is the contractual term of each such option. All other assumptions used to calculate the grant date fair value are generally consistent with the assumptions used for options granted to employees. For purposes of calculating share-based compensation, the Company estimates the fair value of stock options using a Black-Scholes option-pricing model. The determination of the fair value of share-based payment awards utilizing the Black-Scholes model is affected by the Company’s stock price, which is determined by a third party 409(a) valuation, and a number of assumptions, including expected volatility, expected life, risk-free interest rate and expected dividends. FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020 NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The expected volatility is primarily based on the historical volatility of peer company data while the expected life of the stock options is based on historical and other economic data trended into the future. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding to the expected option term. The dividend yield assumption is based on the Company’s history and expectation of no dividend payouts. If factors change and the Company employs different assumptions, share-based compensation expense may differ significantly from what has been recorded in the past. If there is a difference between the assumptions used in determining share-based compensation expense and the actual factors which become known over time, specifically with respect to anticipated forfeitures, the Company may change the input factors used in determining share-based compensation costs for future grants. These changes, if any, may materially impact the Company’s results of operations in the period such changes are made. Incremental compensation costs arising from subsequent modifications of awards after the grant date are recognized when incurred. In addition, the Company accounts for forfeitures of awards as they occur. For share-based awards that vest based on performance conditions, expense is recognized when it is probable that the conditions will be met. <p id="xdx_89C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValueTableTextBlock_zOxF7ljI6Q9d" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The fair value of options and share awards granted under the stock option plan during the years ended December 31, 2021 and 2020 was estimated at the date of grant using the Black-Scholes option pricing model and the following assumptions for grants: SUMMARY OF FAIR VALUE AT GRANT DATE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 11pt"> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2021</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Risk-free interest rates</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">0.986</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">0.20</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected life of options</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5 years</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5 years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Expected volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">78.50</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">104.20</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected dividend yield</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.00</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.00</td><td style="text-align: left">%</td></tr> </table> Earnings Per Share Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of outstanding common shares for the period, considering the effect of participating securities series A preferred stock and series seed preferred stock. Diluted earnings (loss) per share are calculated by dividing net earnings (loss) by the weighted average number of common shares and dilutive common stock equivalents outstanding. During the periods when they are anti-dilutive, common stock equivalents, if any, are not considered in the computation. At December 31, 2021 and 2020, there were 1,542,828 and 1,685,827 common share equivalents, respectively, excluding 2020 Bridge Notes and the 2021 Bridge Notes which were issued at a conversion price determinable at certain future events and not at specified conversion price (see Note 11). For the years ended December 31, 2021 and 2020, these potential shares were excluded from the shares used to calculate diluted loss per share as their effect would have been antidilutive. Segments Operating segments are defined as components of an entity for which separate financial information is available. The Company reviews financial information presented on a consolidated basis for the purposes of making operating decisions, allocating resources, and evaluating financial performance. As such, the Company has determined that it operates in one operating and one reportable segment. The Company presents financial information about its operating segment and geographical areas in Note 15 to the consolidated financial statements. FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020 NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases. ASU 2016-02 requires lessees to recognize assets and liabilities in the balance sheet for rights and obligations created by leases with terms of more than twelve months. Lessor accounting will not be fundamentally changed; however, some changes may be required to align and conform to lessee guidance. In July 2018, the FASB issued ASU 2018-10 Leases (Topic 842), Codification Improvements and ASU 2018-11 Leases (Topic 842), Targeted Improvements, to provide additional guidance for the adoption of Topic 842. ASU 2018-10 clarifies certain provisions and correct unintended applications of the guidance such as the application of implicit rate, lessee reassessment of lease classification, and certain transition adjustments that should be recognized to earnings rather than to stockholders’ equity. ASU 2018-11 provides an alternative transition method and practical expedient for separating contract components for the adoption of Topic 842. For private entities the new standard applies to fiscal years starting after December 15, 2021, and to interim periods within fiscal years beginning after December 15, 2022. The Company adopted ASU No. 2016-02 on January 1, 2020 and the adoption of this guidance did not have a material impact on its consolidated financial statements. In November 2019, the FASB issued ASU No. 2019-08 “Compensation – Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Codification Improvements – Share-Based Consideration Payable to a Customer.” ASU No. 2019-08 amends and clarifies ASU No. 2018-07, which was adopted by the Company on January 1, 2019, to require that an entity measure and classify share-based payment awards granted to a customer by applying the guidance in Topic 718. For entities that have already adopted the amendments in ASU No. 2018-07, the amendments in this ASU are effective for fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years, with early adoption permitted. This guidance is applicable to the Company’s fiscal year beginning January 1, 2020. The Company adopted ASU No. 2019-08 on January 1, 2020 and the adoption of this guidance did not have a material impact on its consolidated financial statements. In April 2019, the FASB issued ASU No. 2019-04 “Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.” ASU No. 2019-04 was issued as part of the FASB’s ongoing project to improve upon its ASC, and to clarify and improve areas of guidance related to recently issued standards on credit losses, hedging, and recognition and measurement. This guidance contains several effective dates but is applicable to the Company’s fiscal year beginning January 1, 2020. The Company adopted ASU No. 2019-04 on January 1, 2020 and the adoption of this guidance did not have a material impact on its consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12 “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” ASU No. 2019-12 is intended to simplify various aspects related to accounting for income taxes, eliminates certain exceptions to the general principles in ASC Topic 740 related to intra-period tax allocation, simplifies when companies recognize deferred taxes in an interim period, and clarifies certain aspects of the current guidance to promote consistent application. This guidance is effective for public business entities for fiscal years beginning after December 15, 2020, and for interim periods within those fiscal years, with early adoption permitted. This guidance is applicable to the Company’s fiscal year beginning January 1, 2021. The Company adopted ASU No. 2019-12 on January 1, 2021 and the adoption of this guidance did not have a material impact on its consolidated financial statements. Recently Issued Accounting Pronouncements In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the guidance on the issuer’s accounting for convertible debt instruments by removing the separation models for (1) convertible debt with a cash conversion feature and (2) convertible instruments with a beneficial conversion feature. As a result, entities will not separately present in equity an embedded conversion feature in such debt. Instead, they will account for a convertible debt instrument wholly as debt, unless certain other conditions are met. The elimination of these models will reduce reported interest expense and increase reported net income for entities that have issued a convertible instrument that was within the scope of those models before the adoption of ASU 2020-06. ASU 2020-06 also requires that the effect of potential share settlement be included in the diluted EPS calculation when an instrument may be settled in cash or shares. This amendment removes current guidance that allows an entity to rebut this presumption if it has a history or policy of cash settlement. FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020 NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Furthermore, ASU 2020-06 requires the application of the if-converted method for calculating diluted earnings per share, the treasury stock method will be no longer available. In addition, ASU 2020-06 clarifies that an average market price should be used to calculate the diluted EPS denominator in cases in which the exercise prices may change on the basis of an entity’s share price or changes in the entity’s share price may affect the number of shares that may be used to settle a financial instrument and that an entity should use the weighted-average share count from each quarter when calculating the year-to-date weighted-average share. The provisions of ASU 2020-06 are applicable for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. The Company is currently evaluating the impact of ASU 2020-06 on its consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU No. 2020-04 provides guidance on optional expedients for a limited time to ease the operational burden in accounting for (or recognizing the effects of) reference rate reform (LIBOR) on financial reporting. This guidance is effective upon the ASUs issuance on March 12, 2020 and companies may elect to apply the amendments prospectively through December 31, 2022. The Company’s credit facilities already contain comparable alternative reference rates that would automatically take effect upon the LIBOR phase out, and it is also reviewing its commercial contracts that may utilize LIBOR as a reference rate. The Company is currently evaluating the potential effects of this guidance on its consolidated financial statements.

Basis of Presentation These consolidated financial statements and related notes are presented in accordance with generally accepted accounting principles in the United States (“GAAP”), expressed in U.S. dollars. In the opinion of the management, the accompanying consolidated financial statements reflect all normal recurring adjustments, which in the opinion of management, are necessary to present fairly the financial position, results of operations, and cash flows for the periods presented in accordance with GAAP. The accompanying consolidated financial statements include the accounts of Freight App US and its wholly owned subsidiary, Freight App Mexico. All significant intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingencies at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include, but are not limited to, allowance for doubtful accounts, valuation of share-based compensation and warrants, fair value of the company’s stock, accrued expenses, useful lives of internally developed software and property and equipment, whether an arrangement is or contains a lease, the discount rate used for operating leases, fair value of financial instruments and warrant liabilities, income tax accruals and the valuation allowance for deferred income taxes. The Company bases these estimates on historical and anticipated results, trends, and various other assumptions that it believes are reasonable under the circumstances, including assumptions as to future events. Actual results could differ from those estimates.

Cash and Cash Equivalents Cash consists of funds held in bank accounts. Cash equivalents consist of short-term, highly liquid investments with original maturities of 90 days or less at the time of purchase and generally include money market accounts.

Concentrations of Credit Risk The Company maintains cash accounts with various financial institutions. At times, balances in these accounts may exceed federally insured limits. Accounts at each institution within the United States (“US”) are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. Additionally, a portion of the Company’s cash is deposited in non-US accounts. The funds are held with financial intuition that offer deposit insurance and bear specific country and regional risks. The amounts over the insured limits as of December 31, 2021 and 2020 was $2,661,919 and $2,249,070, respectively. No losses have been incurred to date on any deposit balances. The financial instrument that potentially subjects the Company to concentration of credit risk is accounts receivable and unbilled receivables. At December 31, 2021, two customers accounted for <span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20210101__20211231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--OneCustomersMember_zfn6pxWJedB" title="Concentration Risk, Percentage">35% and <span id="xdx_903_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20210101__20211231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--TwoCustomersMember_zuzbhLv3P0R9" title="Concentration Risk, Percentage">15% of the Company’s accounts receivable, respectively, and as of December 31, 2020, three customers accounted for <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20200101__20201231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--OneCustomersMember_z9VhvzhGsZr8" title="Concentration Risk, Percentage">11%, <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20200101__20201231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--TwoCustomersMember_zb4CxZCBIB1" title="Concentration Risk, Percentage">12% and <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20200101__20201231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--ThreeCustomersMember_z5blsd05iJpg" title="Concentration Risk, Percentage">13% of the Company’s accounts receivable, respectively. FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020 NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) For the year ended December 31, 2021, one customer accounted for <span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20210101__20211231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__srt--MajorCustomersAxis__custom--OneCustomersMember_z6Um4EZjPgm3" title="Concentration Risk, Percentage">37% of the Company’s revenues. For the year ended December 31, 2020, one customer accounted for <span id="xdx_900_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20200101__20201231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__srt--MajorCustomersAxis__custom--OneCustomersMember_zfrX2PxvufWa" title="Concentration Risk, Percentage">13% of the Company’s revenues.

250000

2661919

2249070

0.35

0.15

0.11

0.12

0.13

0.37

0.13

Fair Value Measurements The Company is required to disclose information on all assets and liabilities reported at fair value that enables an assessment of the inputs used in determining the reported fair values. Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), establishes a hierarchy of inputs used when available. Observable inputs are what market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are those that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. The three levels of the fair value hierarchy are described below: Level 1—Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2—Valuations based on quoted prices for similar assets or liabilities in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3—Valuations that require inputs that are unobservable for the asset and liability in which there is little, if any, market activity.

Fair Value of Financial Instruments The carrying amounts of the Company’s financial instruments, which include trade accounts receivable, unbilled receivables, accounts payable, accrued expenses, and debt at variable interest rates, approximate their fair values at December 31, 2021 and 2020, respectively, principally due to the short-term nature, maturities, or nature of interest rates of the above listed items.

Accounts Receivable and Allowance for Credit Losses Accounts receivable are recorded at the net invoiced amount, net of allowances for credit losses, and do not bear interest. Unbilled receivables include unbilled amounts for services rendered in the respective period but not yet billed to the customer until a future date, which typically occurs within one month, are recorded separately on the consolidated balance sheets. The allowance for credit losses is the Company’s best estimate of the amount of probable credit losses in existing accounts receivable. In accordance with Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, the Company also considers reasonable and supportable forecasts of future economic conditions and their expected impact on customer collections in determining the allowance for credit losses. The Company determines expected credit losses based on historical write-off experience, an analysis of the aging of outstanding receivables, customer payment patterns, and our expectations of changes in macro-economic conditions, including the ongoing COVID-19 pandemic, that may impact the collectability of outstanding receivables. Balances are considered past due based on invoiced terms. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. As of December 31, 2021 and 2020, the allowance for credit losses was $77,483 and $0, respectively.

77483

Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or circumstances exist that indicate the carrying amount of an asset or asset group may not be recoverable. Recoverability of assets is measured by comparing the carrying amounts of the assets to the future undiscounted cash flows expected to be generated by the assets. If the asset or asset group is considered to be impaired, an impairment loss would be recorded to adjust the carrying amounts to the estimated fair value. Management has determined that no impairment of long-lived assets exists, and accordingly, FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020 NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) no adjustments to the carrying amounts of the Company’s long-lived assets have been made for the year ended December 31, 2021 and 2020.

Property and Equipment Property and equipment consisting of office and computer equipment, furniture and leasehold improvements are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives, ranging between three to seven years. SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td style="font-size: 11pt"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: center">Useful Lives</td></tr> <tr style="vertical-align: bottom"> <td style="width: 49%">Equipment</td><td style="width: 2%"> </td> <td style="width: 49%; text-align: center">3 years</td></tr> <tr style="vertical-align: bottom"> <td>Furniture</td><td> </td> <td style="text-align: center"><span id="xdx_901_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20210101__20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zRRsrxPaaOae" title="Estimated useful lives">7 years</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left">Leasehold improvements</td><td> </td> <td style="text-align: center"><span id="xdx_90B_eus-gaap--PropertyPlantAndEquipmentEstimatedUsefulLives_c20210101__20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zKNMX8dW5c2j" title="Estimated useful lives, description">Shorter of useful life of asset or lease term</td></tr> </table>

SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td style="font-size: 11pt"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: center">Useful Lives</td></tr> <tr style="vertical-align: bottom"> <td style="width: 49%">Equipment</td><td style="width: 2%"> </td> <td style="width: 49%; text-align: center">3 years</td></tr> <tr style="vertical-align: bottom"> <td>Furniture</td><td> </td> <td style="text-align: center"><span id="xdx_901_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20210101__20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zRRsrxPaaOae" title="Estimated useful lives">7 years</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left">Leasehold improvements</td><td> </td> <td style="text-align: center"><span id="xdx_90B_eus-gaap--PropertyPlantAndEquipmentEstimatedUsefulLives_c20210101__20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zKNMX8dW5c2j" title="Estimated useful lives, description">Shorter of useful life of asset or lease term</td></tr> </table>

P3Y

P7Y

Shorter of useful life of asset or lease term

Capitalized Software The Company complies with the guidance of ASC Topic 350-40, “Intangibles—Goodwill and Other—Internal Use Software”, in accounting for of its internally developed system projects that it utilizes to provide its services to customers. These system projects generally relate to software of the Company that is not intended for sale or otherwise marketed. Internal and external costs incurred during the preliminary project stage are expensed as they are incurred. Once a project has reached the development stage, the Company capitalizes direct internal and external costs until the software is substantially complete and ready for its intended use. Costs for upgrades and enhancements are capitalized, whereas, costs incurred for maintenance are expensed as incurred. These capitalized software costs are amortized on a project-by- project basis over the expected economic life of the underlying software on a straight-line basis, which is generally three years. Amortization commences when the software is available for its intended use.

Warrants The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own ordinary shares, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding. Warrants classified as liabilities are recorded at fair value and are remeasured at each reporting date until settlement. Changes in fair value is recognized as a component of change in fair value of warrant liability in the consolidated statements of operations. The fair value of the warrant liabilities was estimated using a Black-Scholes option pricing formula. The warrant volatility assumption within the Black-Scholes model represents a Level 3 measurement within the fair value measurement hierarchy. Warrants classified as equity instruments are initially recognized at fair value and are not subsequently remeasured.

Advertising Advertising costs are expensed as incurred. Advertising costs amounted to $421 and $10,257 for the years ended December 31, 2021 and 2020, respectively. FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020 NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

421

10257

Income Taxes The Company accounts for income taxes using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax basis, net operating losses, tax credit and other carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates when the assets and liabilities are expected to be realized or settled. The Company regularly reviews deferred tax assets for realizability and establishes valuation allowances based on available evidence including historical operating losses, projected future taxable income, expected timing of the reversals of existing temporary differences, and appropriate tax planning strategies. If the Company’s assessment of the realizability of a deferred tax asset changes, an increase to a valuation allowance will result in a reduction of net earnings at that time, while the reduction of a valuation allowance will result in an increase of net earnings at that time. The Company follows ASC Topic 740-10-65-1 in accounting for uncertainty in income taxes by prescribing rules for recognition, measurement and classification in financial statements of tax positions taken or expected to be in a tax return. This prescribes a two-step process for the financial statement measurement and recognition of a tax position. The first step involves the determination of whether it is more likely than not (greater than 50 percent likelihood) that a tax position will be sustained upon examination, based on the technical merits of the position. The second step requires that any tax position that meets the more likely than not recognition threshold be measured and recognized in the financial statements at the largest amount of benefit that is a greater than 50 percent likelihood of being realized upon ultimate settlement. This topic also provides guidance on the accounting for related interest and penalties, financial statement classification and disclosure. The Company’s policy is that any interest or penalties related to uncertain tax positions are recognized in income tax expense when incurred. The Company has no uncertain tax positions or related interest or penalties requiring accrual at December 31, 2021 and 2020.

Foreign Currency Translation The financial statements of the Company’s subsidiary operating in Mexico are prepared to conform to U.S. GAAP and translated into U.S. Dollars by applying a current exchange rate. The local currency has been determined to be the functional currency. Assets and liabilities of non-U.S. operations are translated at period-end exchange rates. Items appearing in the consolidated statements of operations are translated using average exchange rates during each period. Translation gains and losses are reported in accumulated other comprehensive income (loss) as a component of stockholders’ equity (deficit).

Deferred Financing Costs and Debt Discount Costs incurred in connection with obtaining certain financing are deferred and amortized on an effective interest method basis over the term of the related obligation. Debt discounts are also amortized using the effective interest method unless the interest method approximates the straight-line method. Amortization of such costs are included in interest expense, while the unamortized balances of deferred financing fees and debt discount are presented as reductions of the carrying value of the related debt.

Intangible Assets Intangible assets include the Company’s domain name and are accounted for based on ASC Topic 350 “Intangibles – Goodwill and Other.” The Company’s intangible assets that have finite lives, consisting of intellectual property, are amortized over their useful lives and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If any indicators were present, the Company would test for recoverability by comparing the carrying amount of the asset to the net undiscounted cash flows expected to be generated from the asset. If those net undiscounted cash flows do not exceed the carrying amount (i.e., the asset is not recoverable), the Company would perform the next step, which is to determine the fair value of the asset and record an impairment loss, if any. The Company evaluates the useful lives for these intangible assets each reporting period to determine whether events and circumstances warrant a revision in their remaining useful lives. FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020 NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Foreign Operations Operations outside the United States include a wholly-owned subsidiary in Mexico. Foreign operations are subject to risks inherent in operating under different legal systems and various political and economic environments. Among the risks are changes in existing tax laws, possible limitations on foreign investment and income repatriation, government price or foreign exchange controls, and restrictions on currency exchange.

Revenue Recognition The Company’s revenues are accounted for under FASB Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers.” The Company generates revenues primarily from shipments executed by the Company’s freight transportation brokerage services to shippers through the Company’s freight rideshare marketplace. Shippers contract with the Company to utilize the Company’s network of independent freight carriers to transport freight. Those shipments are the Company’s performance obligation, arising under contracts the Company has entered into with customers that define the price for each shipment and payment terms. The Company’s acceptance of the shipment request establishes enforceable rights and obligations for each contract. By accepting the shipper’s order, the Company has responsibility for transportation of the shipment from origin to destination. Under such contracts, revenue is recognized when obligations are satisfied, which occurs over time with the transit of shipments from origin to destination. This is appropriate as the customer simultaneously receives and consumes the benefits as the Company performs its obligation. The Company determines revenue in-transit using the input method, under which revenue is recognized based on the duration of time that has lapsed from the departure date (start of transportation services) to the arrival date (completion of transportation services). Measurement of revenue in-transit requires the application of significant judgement. The Company calculates the estimated percentage of an order’s transit time that is complete at period end and apply that percentage of completion of the order’s estimated revenue. Revenue is measured as the amount of consideration the Company expects to receive in exchange for providing services. Accessorial charges for fuel surcharge, loading and unloading, stop charges, and other immaterial charges are part of the consideration received for the single performance obligation of delivering shipments. Payment for the Company’s services is generally due within 30 to 45 days upon delivery of the shipment. Contracts entered into with customers do not contain material financing components. The Company’s contracts with customers have a duration of one year or less and do not require any significant start-up costs, and as such, costs incurred to obtain contracts associated with these contracts are expensed as incurred. Through the Company’s freight brokerage services, the Company is responsible for identifying and directing independent freight carriers to transport the shipper’s goods. The transportation of the loads is outsourced to third-party carriers. The Company is a principal in these arrangements, and therefore records revenue associated with these contracts on a gross basis. The Company controls the service and has primary responsibility to meet the customer’s requirements. The Company invoices and collects from its customers and also maintains discretion over pricing. Additionally, the Company is responsible for selection of third-party transportation providers to the extent used to satisfy customer freight requirements. The timing of revenue recognition, billings, cash collections, and allowance for doubtful accounts results in billed and unbilled receivables on the Company’s consolidated balance sheet. The Company receives the unconditional right to bill when shipments are delivered to their destination.

Convertible Debt The Company evaluates convertible debt to determine the impact (if any) of 1) embedded conversion option; 2) beneficial conversion feature; 3) bifurcation; 4) derivative liability; and 5) fair value adjustments and other expenses thereto. In assessing the convertible debt instruments, management determines if the convertible debt host instrument is conventional convertible debt and further if there is a beneficial conversion feature requiring measurement. If the instrument is not considered conventional convertible debt under ASC Topic 470, “Debt” (“ASC 470”), the Company will continue its evaluation process of these instruments as derivative financial instruments under ASC Topic 815, “Derivatives and Hedging” (“ASC 815”). FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020 NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Conventional convertible debt is a financial instrument in which the holder may only realize the value of the conversion option by exercising the option and receiving the entire proceeds in a fixed number of shares or the equivalent amount of cash. Conventional convertible debt, for which the fair value option is not elected at issuance, is accounted for as straight debt with no accounting recognition of the embedded equity option. The convertible debt the Company issued prior to 2020, had the following typical characteristics for a conventional convertible debt: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"> <tr style="vertical-align: top"> <td style="width: 0.25in"> </td> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 0.25in">●</td> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: justify">The debt security is convertible into the common stock of the issuer at a specified price at the option of the holder.</td></tr> <tr style="vertical-align: top"> <td> </td> <td style="font: 11pt Calibri, Helvetica, Sans-Serif">●</td> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: justify">The debt security was sold at a price or has a value at issuance not significantly in excess of the face amount.</td></tr> <tr style="vertical-align: top"> <td> </td> <td style="font: 11pt Calibri, Helvetica, Sans-Serif">●</td> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: justify">It bears an interest rate that is lower than the Company would obtain for nonconvertible debt.</td></tr> <tr style="vertical-align: top"> <td> </td> <td style="font: 11pt Calibri, Helvetica, Sans-Serif">●</td> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: justify">If converted, the Company must deliver shares of its stock to the investor (i.e., physical settlement). There is no cash conversion feature by which the convertible debt can be settled in full or in part in cash upon conversion.</td></tr> <tr style="vertical-align: top"> <td> </td> <td style="font: 11pt Calibri, Helvetica, Sans-Serif">●</td> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: justify">The initial conversion price of the security is greater than the market value of the common stock at time of issuance and there is no beneficial conversion feature (“BCF”) upon issuance to be bifurcated and separately accounted for.</td></tr> </table> Since the Company has determined that the embedded conversion options should not be bifurcated from their host instruments, the Company accounts for convertible debt instruments in accordance with ASC 470-20, Debt with Conversion and Other Options.

Share-Based Compensation The Company accounts for share-based awards, including stock options and restricted stock awards, issued to employees in accordance with ASC Topic 718, “Compensation—Stock Compensation”. In addition, the Company issues stock options to non-employees in exchange for consulting services and accounts for these in accordance with the provisions of ASC 718, as amended by ASU 2018-07. Compensation expense is measured at the grant, based on the calculated fair value of the award, and recognized as an expense over the requisite service period, which is generally the vesting period of the grant. For modification of stock compensation awards, the Company records the incremental fair value of the modified award as share-based compensation on the date of modification for vested awards or over the remaining vesting period for unvested awards. The incremental compensation is the excess of the fair value of the modified award on the date of modification over the fair value of the original award immediately before the modification. In addition, the Company records the remaining unrecognized compensation cost for the original cost for the original award on the modification date over the remaining vesting period for unvested awards. For options granted to non-employees, the expected life of the option used is the contractual term of each such option. All other assumptions used to calculate the grant date fair value are generally consistent with the assumptions used for options granted to employees. For purposes of calculating share-based compensation, the Company estimates the fair value of stock options using a Black-Scholes option-pricing model. The determination of the fair value of share-based payment awards utilizing the Black-Scholes model is affected by the Company’s stock price, which is determined by a third party 409(a) valuation, and a number of assumptions, including expected volatility, expected life, risk-free interest rate and expected dividends. FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020 NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The expected volatility is primarily based on the historical volatility of peer company data while the expected life of the stock options is based on historical and other economic data trended into the future. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding to the expected option term. The dividend yield assumption is based on the Company’s history and expectation of no dividend payouts. If factors change and the Company employs different assumptions, share-based compensation expense may differ significantly from what has been recorded in the past. If there is a difference between the assumptions used in determining share-based compensation expense and the actual factors which become known over time, specifically with respect to anticipated forfeitures, the Company may change the input factors used in determining share-based compensation costs for future grants. These changes, if any, may materially impact the Company’s results of operations in the period such changes are made. Incremental compensation costs arising from subsequent modifications of awards after the grant date are recognized when incurred. In addition, the Company accounts for forfeitures of awards as they occur. For share-based awards that vest based on performance conditions, expense is recognized when it is probable that the conditions will be met. <p id="xdx_89C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValueTableTextBlock_zOxF7ljI6Q9d" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The fair value of options and share awards granted under the stock option plan during the years ended December 31, 2021 and 2020 was estimated at the date of grant using the Black-Scholes option pricing model and the following assumptions for grants: SUMMARY OF FAIR VALUE AT GRANT DATE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 11pt"> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2021</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Risk-free interest rates</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">0.986</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">0.20</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected life of options</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5 years</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5 years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Expected volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">78.50</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">104.20</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected dividend yield</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.00</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.00</td><td style="text-align: left">%</td></tr> </table>

<p id="xdx_89C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValueTableTextBlock_zOxF7ljI6Q9d" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The fair value of options and share awards granted under the stock option plan during the years ended December 31, 2021 and 2020 was estimated at the date of grant using the Black-Scholes option pricing model and the following assumptions for grants: SUMMARY OF FAIR VALUE AT GRANT DATE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 11pt"> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2021</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Risk-free interest rates</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">0.986</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">0.20</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected life of options</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5 years</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5 years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Expected volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">78.50</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">104.20</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected dividend yield</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.00</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.00</td><td style="text-align: left">%</td></tr> </table>

0.00986

0.0020

P5Y

0.7850

1.0420

0.0000

Earnings Per Share Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of outstanding common shares for the period, considering the effect of participating securities series A preferred stock and series seed preferred stock. Diluted earnings (loss) per share are calculated by dividing net earnings (loss) by the weighted average number of common shares and dilutive common stock equivalents outstanding. During the periods when they are anti-dilutive, common stock equivalents, if any, are not considered in the computation. At December 31, 2021 and 2020, there were 1,542,828 and 1,685,827 common share equivalents, respectively, excluding 2020 Bridge Notes and the 2021 Bridge Notes which were issued at a conversion price determinable at certain future events and not at specified conversion price (see Note 11). For the years ended December 31, 2021 and 2020, these potential shares were excluded from the shares used to calculate diluted loss per share as their effect would have been antidilutive.

1542828

1685827

Segments Operating segments are defined as components of an entity for which separate financial information is available. The Company reviews financial information presented on a consolidated basis for the purposes of making operating decisions, allocating resources, and evaluating financial performance. As such, the Company has determined that it operates in one operating and one reportable segment. The Company presents financial information about its operating segment and geographical areas in Note 15 to the consolidated financial statements. FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020 NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases. ASU 2016-02 requires lessees to recognize assets and liabilities in the balance sheet for rights and obligations created by leases with terms of more than twelve months. Lessor accounting will not be fundamentally changed; however, some changes may be required to align and conform to lessee guidance. In July 2018, the FASB issued ASU 2018-10 Leases (Topic 842), Codification Improvements and ASU 2018-11 Leases (Topic 842), Targeted Improvements, to provide additional guidance for the adoption of Topic 842. ASU 2018-10 clarifies certain provisions and correct unintended applications of the guidance such as the application of implicit rate, lessee reassessment of lease classification, and certain transition adjustments that should be recognized to earnings rather than to stockholders’ equity. ASU 2018-11 provides an alternative transition method and practical expedient for separating contract components for the adoption of Topic 842. For private entities the new standard applies to fiscal years starting after December 15, 2021, and to interim periods within fiscal years beginning after December 15, 2022. The Company adopted ASU No. 2016-02 on January 1, 2020 and the adoption of this guidance did not have a material impact on its consolidated financial statements. In November 2019, the FASB issued ASU No. 2019-08 “Compensation – Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Codification Improvements – Share-Based Consideration Payable to a Customer.” ASU No. 2019-08 amends and clarifies ASU No. 2018-07, which was adopted by the Company on January 1, 2019, to require that an entity measure and classify share-based payment awards granted to a customer by applying the guidance in Topic 718. For entities that have already adopted the amendments in ASU No. 2018-07, the amendments in this ASU are effective for fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years, with early adoption permitted. This guidance is applicable to the Company’s fiscal year beginning January 1, 2020. The Company adopted ASU No. 2019-08 on January 1, 2020 and the adoption of this guidance did not have a material impact on its consolidated financial statements. In April 2019, the FASB issued ASU No. 2019-04 “Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.” ASU No. 2019-04 was issued as part of the FASB’s ongoing project to improve upon its ASC, and to clarify and improve areas of guidance related to recently issued standards on credit losses, hedging, and recognition and measurement. This guidance contains several effective dates but is applicable to the Company’s fiscal year beginning January 1, 2020. The Company adopted ASU No. 2019-04 on January 1, 2020 and the adoption of this guidance did not have a material impact on its consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12 “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” ASU No. 2019-12 is intended to simplify various aspects related to accounting for income taxes, eliminates certain exceptions to the general principles in ASC Topic 740 related to intra-period tax allocation, simplifies when companies recognize deferred taxes in an interim period, and clarifies certain aspects of the current guidance to promote consistent application. This guidance is effective for public business entities for fiscal years beginning after December 15, 2020, and for interim periods within those fiscal years, with early adoption permitted. This guidance is applicable to the Company’s fiscal year beginning January 1, 2021. The Company adopted ASU No. 2019-12 on January 1, 2021 and the adoption of this guidance did not have a material impact on its consolidated financial statements.

Recently Issued Accounting Pronouncements In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the guidance on the issuer’s accounting for convertible debt instruments by removing the separation models for (1) convertible debt with a cash conversion feature and (2) convertible instruments with a beneficial conversion feature. As a result, entities will not separately present in equity an embedded conversion feature in such debt. Instead, they will account for a convertible debt instrument wholly as debt, unless certain other conditions are met. The elimination of these models will reduce reported interest expense and increase reported net income for entities that have issued a convertible instrument that was within the scope of those models before the adoption of ASU 2020-06. ASU 2020-06 also requires that the effect of potential share settlement be included in the diluted EPS calculation when an instrument may be settled in cash or shares. This amendment removes current guidance that allows an entity to rebut this presumption if it has a history or policy of cash settlement.

NOTE 4 – RESTRICTED CASH IN ESCROW An amount of $175,000 is being held in escrow to be used to pay an advisor in connection with the transactions contemplated by in the Merger (See Note 1). This amount was released form escrow at the time of the Merger.

175000

NOTE 5 – PROPERTY AND EQUIPMENT Property and equipment consist of the following at: SCHEDULE OF PLANT AND EQUIPMENT, NET <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_499_20211231_zyHzT4jzvhW9" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_496_20201231_zwvR6ACUU6Ub" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_406_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--EquipmentMember_zotQi3Cnbi27" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%">Equipment</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">92,873</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">79,413</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zXZfeRPasoag" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Furniture and fixtures</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,517</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,517</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zl6PD4PKKcn5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Leasehold improvements</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,759</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,759</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_maPPAENzIo6_z5DLSAQT7eV5" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Total cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">107,149</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">93,689</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_pp0p0_di_msPPAENzIo6_zCTMpZ4ItrG" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Accumulated depreciation</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(53,700</td><td style="text-align: left">)</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(37,570</td><td style="text-align: left">)</td></tr> <tr id="xdx_40A_eus-gaap--PropertyPlantAndEquipmentNet_iTI_pp0p0_mtPPAENzIo6_z2xHznpocLWd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Property and equipment, net</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">53,449</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">56,119</td><td style="text-align: left"> </td></tr> </table> Depreciation expense for the years ended December 31, 2021 and 2020 was $16,130 and $14,230, respectively.

Property and equipment consist of the following at: SCHEDULE OF PLANT AND EQUIPMENT, NET <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_499_20211231_zyHzT4jzvhW9" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_496_20201231_zwvR6ACUU6Ub" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_406_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--EquipmentMember_zotQi3Cnbi27" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%">Equipment</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">92,873</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">79,413</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zXZfeRPasoag" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Furniture and fixtures</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,517</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,517</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zl6PD4PKKcn5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Leasehold improvements</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,759</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,759</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_maPPAENzIo6_z5DLSAQT7eV5" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Total cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">107,149</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">93,689</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_pp0p0_di_msPPAENzIo6_zCTMpZ4ItrG" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Accumulated depreciation</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(53,700</td><td style="text-align: left">)</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(37,570</td><td style="text-align: left">)</td></tr> <tr id="xdx_40A_eus-gaap--PropertyPlantAndEquipmentNet_iTI_pp0p0_mtPPAENzIo6_z2xHznpocLWd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Property and equipment, net</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">53,449</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">56,119</td><td style="text-align: left"> </td></tr> </table>

92873

79413

9517

4759

107149

93689

53700

37570

53449

56119

16130

14230

NOTE 6 – CAPITALIZED SOFTWARE Capitalized software consists of the following at: SCHEDULE OF CAPITALIZED SOFTWARE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_491_20211231_zXhLNgMR8k9j" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_491_20201231_z2XzAYSneo2d" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_40D_ecustom--CapitalizedSoftware_iI_z3JcbRpQUced" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">Capitalized software</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">2,548,817</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">2,338,367</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--CapitalizedComputerSoftwareAccumulatedAmortization_iNI_di_zAYxwILjJxZ4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accumulated amortization</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,203,548</td><td style="text-align: left">)</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,918,479</td><td style="text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--CapitalizedComputerSoftwareGross_iI_zaIq05ke05ad" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Net carrying amount</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">345,269</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">419,888</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--CapitalizedSoftwareInprocess_iI_zmoWl4UkY9K9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Capitalized software in-process</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">245,733</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--CapitalizedComputerSoftwareNet_iI_zEhl6YRr9jGa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Capitalized software, net</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">591,002</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">419,888</td><td style="text-align: left"> </td></tr> </table> Amortization expense for the years ended December 31, 2021 and 2020 was $285,069 and $515,985, respectively. FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020 NOTE 6 – CAPITALIZED SOFTWARE (CONTINUED) Estimated amortization for capitalized software for future periods is as follows: SCHEDULE OF ESTIMATED AMORTIZATION CAPITALIZED SOFTWARE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: center">Year Ended December 31,</td><td> </td> <td colspan="2" id="xdx_498_20211231_zaljnwHa4V3a" style="text-align: center"> </td><td> </td></tr> <tr id="xdx_403_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths_iI_zhiJWA3X8BRk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; text-align: center">2022</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 22%; text-align: right">203,191</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo_iI_z67BWEVq76qh" style="vertical-align: bottom; background-color: White"> <td style="text-align: center">2023</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">103,964</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearThree_iI_zUV1zgcZRqwe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center">2024</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">38,114</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_zp8QPz7OHAvh" style="vertical-align: bottom; background-color: White"> <td> TOTAL</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">345,269</td><td style="text-align: left"> </td></tr> </table>

Capitalized software consists of the following at: SCHEDULE OF CAPITALIZED SOFTWARE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_491_20211231_zXhLNgMR8k9j" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_491_20201231_z2XzAYSneo2d" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_40D_ecustom--CapitalizedSoftware_iI_z3JcbRpQUced" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">Capitalized software</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">2,548,817</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">2,338,367</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--CapitalizedComputerSoftwareAccumulatedAmortization_iNI_di_zAYxwILjJxZ4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accumulated amortization</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,203,548</td><td style="text-align: left">)</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,918,479</td><td style="text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--CapitalizedComputerSoftwareGross_iI_zaIq05ke05ad" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Net carrying amount</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">345,269</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">419,888</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--CapitalizedSoftwareInprocess_iI_zmoWl4UkY9K9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Capitalized software in-process</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">245,733</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--CapitalizedComputerSoftwareNet_iI_zEhl6YRr9jGa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Capitalized software, net</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">591,002</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">419,888</td><td style="text-align: left"> </td></tr> </table>

2548817 2338367

2203548

1918479

345269

419888

245733

591002

419888

285069

515985

Estimated amortization for capitalized software for future periods is as follows: SCHEDULE OF ESTIMATED AMORTIZATION CAPITALIZED SOFTWARE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: center">Year Ended December 31,</td><td> </td> <td colspan="2" id="xdx_498_20211231_zaljnwHa4V3a" style="text-align: center"> </td><td> </td></tr> <tr id="xdx_403_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths_iI_zhiJWA3X8BRk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; text-align: center">2022</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 22%; text-align: right">203,191</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo_iI_z67BWEVq76qh" style="vertical-align: bottom; background-color: White"> <td style="text-align: center">2023</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">103,964</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearThree_iI_zUV1zgcZRqwe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center">2024</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">38,114</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_zp8QPz7OHAvh" style="vertical-align: bottom; background-color: White"> <td> TOTAL</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">345,269</td><td style="text-align: left"> </td></tr> </table>

203191

103964

38114

345269

NOTE 7 – ACCRUED EXPENSES Accrued expenses consist of the following at: SCHEDULE OF ACCRUED EXPENSES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49E_20211231_z8gsxCs0FN9h" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_495_20201231_ztolrfnBFAb8" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_406_eus-gaap--AccruedPayrollTaxesCurrentAndNoncurrent_iI_zpzy0oVWUCwl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: left">Accrued payroll</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 20%; text-align: right">289,408</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 20%; text-align: right">120,926</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_ecustom--AccruedValueAddedTax_iI_zZxVuaCK9Y4g" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued value added tax</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">30,374</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">17,956</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--AccruedCostOfRevenue_iI_zjv1YPWZS1X7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Accrued cost of revenue</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">603,332</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">489,071</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--AccruedProfessionalFeesCurrent_iI_zB3AKf3RmkE4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued professional services</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,466</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">136,017</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--OtherAccruedLiabilitiesCurrent_iI_zHjLqnJeaYHa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Other accrued liabilities</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,527</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">18,527</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--AccruedLiabilitiesCurrent_i02I_maLCzXzQ_z6ovCagvYGya" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total accrued expenses</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">939,107</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">782,497</td><td style="text-align: left"> </td></tr> </table>

Accrued expenses consist of the following at: SCHEDULE OF ACCRUED EXPENSES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49E_20211231_z8gsxCs0FN9h" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_495_20201231_ztolrfnBFAb8" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_406_eus-gaap--AccruedPayrollTaxesCurrentAndNoncurrent_iI_zpzy0oVWUCwl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: left">Accrued payroll</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 20%; text-align: right">289,408</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 20%; text-align: right">120,926</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_ecustom--AccruedValueAddedTax_iI_zZxVuaCK9Y4g" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued value added tax</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">30,374</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">17,956</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--AccruedCostOfRevenue_iI_zjv1YPWZS1X7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Accrued cost of revenue</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">603,332</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">489,071</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--AccruedProfessionalFeesCurrent_iI_zB3AKf3RmkE4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued professional services</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,466</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">136,017</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--OtherAccruedLiabilitiesCurrent_iI_zHjLqnJeaYHa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Other accrued liabilities</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,527</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">18,527</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--AccruedLiabilitiesCurrent_i02I_maLCzXzQ_z6ovCagvYGya" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total accrued expenses</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">939,107</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">782,497</td><td style="text-align: left"> </td></tr> </table>

289408

120926

30374 17956 603332 489071

12466

136017

3527

18527

939107

782497

NOTE 8 – SHARE-BASED COMPENSATION The Company has a Stock Incentive Plan (the “Plan”) under which the Company may grant restricted stock awards and stock options for up to <span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20210101__20211231__us-gaap--PlanNameAxis__custom--StockIncentivePlanMember__srt--RangeAxis__srt--MaximumMember_zN38lMc6ymMe" title="Number of option will be granted">3,500,000 common shares. Both incentive stock options and non-qualified stock options expire ten years from the date of the grant. Stock Options The following table summarizes stock option activity: SUMMARY OF ABOUT STOCK OPTION ACTIVITY <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-size: 10pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: center">Number of Options</td><td style="font-size: 10pt"> </td><td style="font-size: 10pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: center">Weighted Average Exercise Price</td><td style="font-size: 10pt"> </td><td style="font-size: 10pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: center">Weighted Average Remaining Contractual Term</td><td style="font-size: 10pt"> </td><td style="font-size: 10pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: center">Aggregate Intrinsic Value</td><td style="font-size: 10pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; font-size: 10pt">Balance at January 1, 2020</td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20200101__20201231_zGOJL6IkRrBl" style="width: 11%; font-size: 10pt; text-align: right" title="Number of Options, Beinning">94,753</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pid_c20200101__20201231_zo23um0r9VJ2" style="width: 11%; font-size: 10pt; text-align: right" title="Weighted Average Exercise Price, Beginning Balance">0.52</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 11%; font-size: 10pt; text-align: right"> </td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Granted</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20200101__20201231_zJopPEeOyvAd" style="font-size: 10pt; text-align: right" title="Number of Options, Grants">1,662,716</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pid_c20200101__20201231_zhJUyRFr4yIg" style="font-size: 10pt; text-align: right" title="Weighted Average Exercise Price Options, Granted">0.25</td><td style="font-size: 10pt; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Forfeited/Expired</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_iN_di_c20200101__20201231_zXan9OfDXW78" style="font-size: 10pt; text-align: right" title="Number of Options, Forfeited/Expired">(189,853</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_pid_c20200101__20201231_zXHM53ovblX6" style="font-size: 10pt; text-align: right" title="Weighted Average Exercise Price Options, Forfeited/Expired">0.38</td><td style="font-size: 10pt; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Exercised</td><td style="font-size: 10pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left"> </td><td id="xdx_98E_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_di_c20200101__20201231_zOQqgPADKsbe" style="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right" title="Number of Options, Exercised">(1,753</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20200101__20201231_zYH24mQJqrMh" style="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right" title="Weighted Average Exercise Price Options, Exercised">0.25</td><td style="font-size: 10pt; text-align: left"> </td><td> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Balance at December 31, 2020</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20210101__20211231_zYXcu62VuQni" style="font-size: 10pt; text-align: right" title="Number of Options, Beginning">1,565,863</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pid_c20210101__20211231_zJHxm94q8RN9" style="font-size: 10pt; text-align: right" title="Weighted Average Exercise Price, Beginning Balance">0.25</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><span id="xdx_90A_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20200101__20201231_zYoduL0iu088" title="Weighted Average Remaining Contractual Term, Beginning Balance">5.92</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">-</td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Granted</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20210101__20211231_zrHFDgkXBaae" style="font-size: 10pt; text-align: right" title="Number of Options, Granted">1,185,308</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pid_c20210101__20211231_zbiMiQCYIp79" style="font-size: 10pt; text-align: right" title="Weighted Average Exercise Price Options, Granted">1.45</td><td style="font-size: 10pt; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Forfeited/Expired</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_iN_di_c20210101__20211231_zISfvIHAPqNe" style="font-size: 10pt; text-align: right" title="Number of Options, Forfeited/Expired">(8,839</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_pid_c20210101__20211231_zi9FHXHP4kub" style="font-size: 10pt; text-align: right" title="Weighted Average Exercise Price Options, Forfeited/Expired">0.25</td><td style="font-size: 10pt; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Exercised</td><td style="font-size: 10pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left"> </td><td id="xdx_98A_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_di_c20210101__20211231_zdI5tCCZCLB3" style="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right" title="Number of Options, Exercised">-</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20210101__20211231_zlennLIFyk3j" style="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right" title="Weighted Average Exercise Price Options, Exercised">-</td><td style="font-size: 10pt; text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Balance at December 31, 2021</td><td style="font-size: 10pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20210101__20211231_zNl0UyBx7nOk" style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right" title="Number of Options, Ending">2,742,332</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pid_c20210101__20211231_zUoXUDzBA8Zd" style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right" title="Weighted Average Exercise Price, Ending Balance">0.77</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><span id="xdx_90F_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20210101__20211231_zAMuimg5SE5a" title="Weighted Average Remaining Contractual Term, Ending Balance">6.58</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_c20210101__20211231_zxZjVy4ljJ5e" style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right" title="Aggregate Intrinsic Value, Ending Balance">854,217</td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Exercisable at December 31, 2021</td><td style="font-size: 10pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iE_c20210101__20211231_zX17xz1KSLY8" style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right" title="Number of Options, Exercisable">1,527,994</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iI_c20211231_zkGn9a7Z0Zk1" style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right" title="Weighted Average Exercise Price, Exercisable">0.53</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td id="xdx_984_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20210101__20211231_zj33HjvAlHYf" style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right" title="Weighted Average Remaining Contractual Term, Exercisable">4.93</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">$ 640,828.</td><td style="font-size: 10pt; text-align: left"> </td></tr> </table> FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020 NOTE 8 – SHARE-BASED COMPENSATION (CONTINUED) The following table summarizes the Company’s non-vested stock options. SUMMARY OF NON-VESTED STOCK OPTION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Non-vested Options Outstanding</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted-Average Grant Date Fair Value</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%">At January 1, 2020</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98E_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares_iS_c20200101__20201231_zvAAUaRWmbYk" style="width: 18%; text-align: right" title="Non-vested Options Outstanding, Beginning Balance">51,462</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right"><span id="xdx_902_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iS_c20200101__20201231_z2ZGt87QpsWb" title="Weighted-Average Grant Date Fair Value, Beginning Balance">0.25</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Options granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20200101__20201231_zCdovTGKczPj" style="text-align: right" title="Non-vested Options Outstanding, Options granted">1,662,716</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> <span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20200101__20201231_zU7TbO8p3cQ" title="Weighted-Average Grant Date Fair Value, options granted">0.25</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Options forfeited/cancelled</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedNumberOfShares_iN_di_c20200101__20201231_zMYtZANXF3d2" style="text-align: right" title="Non-vested Options Outstanding, Options forfeited/cancelled">(189,853</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_900_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageGrantDateFairValue_c20200101__20201231_zf9ym2SZ9WXk" title="Weighted-Average Grant Date Fair Value, Options forfeited/cancelled">0.25</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Options exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsExeecisedNumberOfShares_iN_di_c20200101__20201231_zHEtAslIXDP2" style="text-align: right" title="Non-vested Options Outstanding, Options exercised">(1,753</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90C_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageExeecisedFairValue_c20200101__20201231_zYcp39yxTaA1" title="Weighted-Average Grant Date Fair Value, Options exercised">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Options vested</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares_iN_di_c20200101__20201231_zI5o3HH8HUe2" style="border-bottom: Black 1.5pt solid; text-align: right" title="Non-vested Options Outstanding, Options vested">(860,034</td><td style="text-align: left">)</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span id="xdx_905_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue_c20200101__20201231_zSFaHQtwI0yi" title="Weighted-Average Grant Date Fair Value, Options vested">0.15</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>At December 31, 2020</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares_iS_c20210101__20211231_zg4Hzr4l5Thi" style="text-align: right" title="Non-vested Options Outstanding, Beginning Balance">662,538</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_904_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iS_c20210101__20211231_zi8WcJpSax94" title="Weighted-Average Grant Date Fair Value, Beginning Balance">0.19</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Options granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20210101__20211231_zsVVtkc2FJsg" style="text-align: right" title="Non-vested Options Outstanding, Options granted">1,185,308</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20210101__20211231_zTmyLdk4C2og" title="Weighted-Average Grant Date Fair Value, options granted">0.26</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Options forfeited/cancelled</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedNumberOfShares_iN_di_c20210101__20211231_zMqO4G7lQMT1" style="text-align: right" title="Non-vested Options Outstanding, Options forfeited/cancelled">(8,839</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_903_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageGrantDateFairValue_c20210101__20211231_zIrE8BFvPQKe" title="Weighted-Average Grant Date Fair Value, Options forfeited/cancelled">0.19</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Options exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsExeecisedNumberOfShares_iN_di_c20210101__20211231_zFTkEHGj0zKg" style="text-align: right" title="Non-vested Options Outstanding, Options exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_905_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageExeecisedFairValue_c20210101__20211231_zlaccZigulGl" title="Weighted-Average Grant Date Fair Value, Options exercised">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Options vested</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares_iN_di_c20210101__20211231_zAyWXckvqhX9" style="border-bottom: Black 1.5pt solid; text-align: right" title="Non-vested Options Outstanding, Options vested">(624,668</td><td style="text-align: left">)</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span id="xdx_901_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue_c20210101__20211231_zA3s53AvI8ki" title="Weighted-Average Grant Date Fair Value, Options vested">0.29</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>At December 31, 2021</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98B_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares_iE_c20210101__20211231_zcZXDrWxxNNi" style="border-bottom: Black 2.5pt double; text-align: right" title="Non-vested Options Outstanding, Ending Balance">1,214,339</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_90D_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iE_c20210101__20211231_zVVNPwdRmpJ1" title="Weighted-Average Grant Date Fair Value, Ending Balance">0.34</td><td style="text-align: left"> </td></tr> </table> For the years ended December 31, 2021 and 2020, the Company recognized $171,500 and $160,638 of stock compensation expense, respectively, relating to vested stock options. As of December 31, 2021, there was $418,077 of unrecognized stock compensation expense related to non-vested stock options granted under the Plan, which is expected to be recognized over a weighted-average period of four years. Restricted Stock Awards From time-to-time the Company issues time-based restricted stock awards (“RSAs”) under the Plan. The fair value of the nonvested shares are measured at the market price of a share on the date of grant and will be recognized as share-based compensation expense over the requisite service period. Grants vest over a period ranging from one to four years based on continued employment or service. The shares of common stock underlying the RSAs are not considered issued and outstanding until vested. The following table summarizes the restricted stock awards activity: SUMMARY OF RESTRICTED STOCK AWARDS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Restricted Stock Awards</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted-Average Grant Date Fair Value Per Share</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>At December 31, 2020</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zv8CyUUwctbg" style="text-align: right" title="Restricted Stock Awards, Beginning Balance">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zrnH2SrEu9S8" title="Weighted-Average Grant Date Fair Value Per Share, Beginning Balance">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 56%">Granted</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zNJ2fQ7uDagc" style="width: 18%; text-align: right" title="Restricted Stock Awards, Granted">175,332</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 18%; text-align: right"> <span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zWVT3JKO8Bke" title="Weighted-Average Grant Date Fair Value Per Share, Granted">0.80</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Forfeited</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_di_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_ztCDQkswKiOg" style="text-align: right" title="Restricted Stock Awards, Forfeited">(5,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zpKCEGSlOjLh" title="Weighted-Average Grant Date Fair Value Per Share, Forfeited">0.80</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsExercisedNumberOfShares_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_z7KbjMlUTKNl" style="text-align: right" title="Restricted Stock Awards, Exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_903_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageExercisedFairValue_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zywFd0tRgzYd" title="Weighted-Average Grant Date Fair Value Per Share, Exercised">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Vested</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_iN_di_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zRGozUScWPw8" style="border-bottom: Black 1.5pt solid; text-align: right" title="Restricted Stock Awards, Vested">(78,631</td><td style="text-align: left">)</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zZ9zQEQzKDzd" title="Weighted-Average Grant Date Fair Value Per Share, Vested">0.80</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Outstanding non-vested at December 31, 2021</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zePeBk5Lm0e6" style="border-bottom: Black 2.5pt double; text-align: right" title="Restricted Stock Awards, Ending Balance">91,701</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zCYxNwxrDyN8" title="Weighted-Average Grant Date Fair Value Per Share, Ending Balance">0.80</td><td style="text-align: left"> </td></tr> </table> For the year ended December 31, 2021, the Company recognized $63,905 of stock compensation expense relating to RSAs. As of December 31, 2021, there was $<span id="xdx_909_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized_iI_c20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zhYdcyIhuGJ1" title="Unrecognized share-based compensation expense">73,361 of unrecognized share-based compensation expense related to non-vested RSAs, which is expected to be recognized over a weighted average period of three years. FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020

3500000

The following table summarizes stock option activity: SUMMARY OF ABOUT STOCK OPTION ACTIVITY <table cellpadding="0" cellspacing="0" style="font: 11pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-size: 10pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: center">Number of Options</td><td style="font-size: 10pt"> </td><td style="font-size: 10pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: center">Weighted Average Exercise Price</td><td style="font-size: 10pt"> </td><td style="font-size: 10pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: center">Weighted Average Remaining Contractual Term</td><td style="font-size: 10pt"> </td><td style="font-size: 10pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: center">Aggregate Intrinsic Value</td><td style="font-size: 10pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; font-size: 10pt">Balance at January 1, 2020</td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20200101__20201231_zGOJL6IkRrBl" style="width: 11%; font-size: 10pt; text-align: right" title="Number of Options, Beinning">94,753</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pid_c20200101__20201231_zo23um0r9VJ2" style="width: 11%; font-size: 10pt; text-align: right" title="Weighted Average Exercise Price, Beginning Balance">0.52</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 11%; font-size: 10pt; text-align: right"> </td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Granted</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20200101__20201231_zJopPEeOyvAd" style="font-size: 10pt; text-align: right" title="Number of Options, Grants">1,662,716</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pid_c20200101__20201231_zhJUyRFr4yIg" style="font-size: 10pt; text-align: right" title="Weighted Average Exercise Price Options, Granted">0.25</td><td style="font-size: 10pt; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Forfeited/Expired</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_iN_di_c20200101__20201231_zXan9OfDXW78" style="font-size: 10pt; text-align: right" title="Number of Options, Forfeited/Expired">(189,853</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_pid_c20200101__20201231_zXHM53ovblX6" style="font-size: 10pt; text-align: right" title="Weighted Average Exercise Price Options, Forfeited/Expired">0.38</td><td style="font-size: 10pt; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Exercised</td><td style="font-size: 10pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left"> </td><td id="xdx_98E_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_di_c20200101__20201231_zOQqgPADKsbe" style="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right" title="Number of Options, Exercised">(1,753</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20200101__20201231_zYH24mQJqrMh" style="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right" title="Weighted Average Exercise Price Options, Exercised">0.25</td><td style="font-size: 10pt; text-align: left"> </td><td> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Balance at December 31, 2020</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20210101__20211231_zYXcu62VuQni" style="font-size: 10pt; text-align: right" title="Number of Options, Beginning">1,565,863</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pid_c20210101__20211231_zJHxm94q8RN9" style="font-size: 10pt; text-align: right" title="Weighted Average Exercise Price, Beginning Balance">0.25</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><span id="xdx_90A_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20200101__20201231_zYoduL0iu088" title="Weighted Average Remaining Contractual Term, Beginning Balance">5.92</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">-</td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Granted</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20210101__20211231_zrHFDgkXBaae" style="font-size: 10pt; text-align: right" title="Number of Options, Granted">1,185,308</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pid_c20210101__20211231_zbiMiQCYIp79" style="font-size: 10pt; text-align: right" title="Weighted Average Exercise Price Options, Granted">1.45</td><td style="font-size: 10pt; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Forfeited/Expired</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_iN_di_c20210101__20211231_zISfvIHAPqNe" style="font-size: 10pt; text-align: right" title="Number of Options, Forfeited/Expired">(8,839</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_pid_c20210101__20211231_zi9FHXHP4kub" style="font-size: 10pt; text-align: right" title="Weighted Average Exercise Price Options, Forfeited/Expired">0.25</td><td style="font-size: 10pt; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Exercised</td><td style="font-size: 10pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left"> </td><td id="xdx_98A_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_di_c20210101__20211231_zdI5tCCZCLB3" style="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right" title="Number of Options, Exercised">-</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20210101__20211231_zlennLIFyk3j" style="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right" title="Weighted Average Exercise Price Options, Exercised">-</td><td style="font-size: 10pt; text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Balance at December 31, 2021</td><td style="font-size: 10pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20210101__20211231_zNl0UyBx7nOk" style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right" title="Number of Options, Ending">2,742,332</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pid_c20210101__20211231_zUoXUDzBA8Zd" style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right" title="Weighted Average Exercise Price, Ending Balance">0.77</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><span id="xdx_90F_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20210101__20211231_zAMuimg5SE5a" title="Weighted Average Remaining Contractual Term, Ending Balance">6.58</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_c20210101__20211231_zxZjVy4ljJ5e" style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right" title="Aggregate Intrinsic Value, Ending Balance">854,217</td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Exercisable at December 31, 2021</td><td style="font-size: 10pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iE_c20210101__20211231_zX17xz1KSLY8" style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right" title="Number of Options, Exercisable">1,527,994</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iI_c20211231_zkGn9a7Z0Zk1" style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right" title="Weighted Average Exercise Price, Exercisable">0.53</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td id="xdx_984_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20210101__20211231_zj33HjvAlHYf" style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right" title="Weighted Average Remaining Contractual Term, Exercisable">4.93</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">$ 640,828.</td><td style="font-size: 10pt; text-align: left"> </td></tr> </table>

94753

0.52

1662716

0.25

189853

0.38

1753

0.25

1565863

0.25

P5Y11M1D

1185308

1.45

8839

0.25

2742332

0.77

P6Y6M29D

854217

1527994

0.53

P4Y11M4D

640828

The following table summarizes the Company’s non-vested stock options. SUMMARY OF NON-VESTED STOCK OPTION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Non-vested Options Outstanding</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted-Average Grant Date Fair Value</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%">At January 1, 2020</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98E_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares_iS_c20200101__20201231_zvAAUaRWmbYk" style="width: 18%; text-align: right" title="Non-vested Options Outstanding, Beginning Balance">51,462</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right"><span id="xdx_902_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iS_c20200101__20201231_z2ZGt87QpsWb" title="Weighted-Average Grant Date Fair Value, Beginning Balance">0.25</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Options granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20200101__20201231_zCdovTGKczPj" style="text-align: right" title="Non-vested Options Outstanding, Options granted">1,662,716</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> <span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20200101__20201231_zU7TbO8p3cQ" title="Weighted-Average Grant Date Fair Value, options granted">0.25</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Options forfeited/cancelled</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedNumberOfShares_iN_di_c20200101__20201231_zMYtZANXF3d2" style="text-align: right" title="Non-vested Options Outstanding, Options forfeited/cancelled">(189,853</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_900_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageGrantDateFairValue_c20200101__20201231_zf9ym2SZ9WXk" title="Weighted-Average Grant Date Fair Value, Options forfeited/cancelled">0.25</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Options exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsExeecisedNumberOfShares_iN_di_c20200101__20201231_zHEtAslIXDP2" style="text-align: right" title="Non-vested Options Outstanding, Options exercised">(1,753</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90C_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageExeecisedFairValue_c20200101__20201231_zYcp39yxTaA1" title="Weighted-Average Grant Date Fair Value, Options exercised">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Options vested</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares_iN_di_c20200101__20201231_zI5o3HH8HUe2" style="border-bottom: Black 1.5pt solid; text-align: right" title="Non-vested Options Outstanding, Options vested">(860,034</td><td style="text-align: left">)</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span id="xdx_905_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue_c20200101__20201231_zSFaHQtwI0yi" title="Weighted-Average Grant Date Fair Value, Options vested">0.15</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>At December 31, 2020</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares_iS_c20210101__20211231_zg4Hzr4l5Thi" style="text-align: right" title="Non-vested Options Outstanding, Beginning Balance">662,538</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_904_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iS_c20210101__20211231_zi8WcJpSax94" title="Weighted-Average Grant Date Fair Value, Beginning Balance">0.19</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Options granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20210101__20211231_zsVVtkc2FJsg" style="text-align: right" title="Non-vested Options Outstanding, Options granted">1,185,308</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20210101__20211231_zTmyLdk4C2og" title="Weighted-Average Grant Date Fair Value, options granted">0.26</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Options forfeited/cancelled</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedNumberOfShares_iN_di_c20210101__20211231_zMqO4G7lQMT1" style="text-align: right" title="Non-vested Options Outstanding, Options forfeited/cancelled">(8,839</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_903_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageGrantDateFairValue_c20210101__20211231_zIrE8BFvPQKe" title="Weighted-Average Grant Date Fair Value, Options forfeited/cancelled">0.19</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Options exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsExeecisedNumberOfShares_iN_di_c20210101__20211231_zFTkEHGj0zKg" style="text-align: right" title="Non-vested Options Outstanding, Options exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_905_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageExeecisedFairValue_c20210101__20211231_zlaccZigulGl" title="Weighted-Average Grant Date Fair Value, Options exercised">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Options vested</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares_iN_di_c20210101__20211231_zAyWXckvqhX9" style="border-bottom: Black 1.5pt solid; text-align: right" title="Non-vested Options Outstanding, Options vested">(624,668</td><td style="text-align: left">)</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span id="xdx_901_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue_c20210101__20211231_zA3s53AvI8ki" title="Weighted-Average Grant Date Fair Value, Options vested">0.29</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>At December 31, 2021</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98B_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares_iE_c20210101__20211231_zcZXDrWxxNNi" style="border-bottom: Black 2.5pt double; text-align: right" title="Non-vested Options Outstanding, Ending Balance">1,214,339</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_90D_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iE_c20210101__20211231_zVVNPwdRmpJ1" title="Weighted-Average Grant Date Fair Value, Ending Balance">0.34</td><td style="text-align: left"> </td></tr> </table>

51462

0.25

1662716

0.25

189853

0.25

1753

860034

0.15

662538

0.19

1185308

0.26

8839

0.19

624668

0.29

1214339

0.34

171500

160638

418077

The following table summarizes the restricted stock awards activity: SUMMARY OF RESTRICTED STOCK AWARDS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Restricted Stock Awards</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted-Average Grant Date Fair Value Per Share</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>At December 31, 2020</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zv8CyUUwctbg" style="text-align: right" title="Restricted Stock Awards, Beginning Balance">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zrnH2SrEu9S8" title="Weighted-Average Grant Date Fair Value Per Share, Beginning Balance">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 56%">Granted</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zNJ2fQ7uDagc" style="width: 18%; text-align: right" title="Restricted Stock Awards, Granted">175,332</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 18%; text-align: right"> <span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zWVT3JKO8Bke" title="Weighted-Average Grant Date Fair Value Per Share, Granted">0.80</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Forfeited</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_di_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_ztCDQkswKiOg" style="text-align: right" title="Restricted Stock Awards, Forfeited">(5,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zpKCEGSlOjLh" title="Weighted-Average Grant Date Fair Value Per Share, Forfeited">0.80</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsExercisedNumberOfShares_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_z7KbjMlUTKNl" style="text-align: right" title="Restricted Stock Awards, Exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_903_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageExercisedFairValue_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zywFd0tRgzYd" title="Weighted-Average Grant Date Fair Value Per Share, Exercised">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Vested</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_iN_di_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zRGozUScWPw8" style="border-bottom: Black 1.5pt solid; text-align: right" title="Restricted Stock Awards, Vested">(78,631</td><td style="text-align: left">)</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zZ9zQEQzKDzd" title="Weighted-Average Grant Date Fair Value Per Share, Vested">0.80</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Outstanding non-vested at December 31, 2021</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zePeBk5Lm0e6" style="border-bottom: Black 2.5pt double; text-align: right" title="Restricted Stock Awards, Ending Balance">91,701</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zCYxNwxrDyN8" title="Weighted-Average Grant Date Fair Value Per Share, Ending Balance">0.80</td><td style="text-align: left"> </td></tr> </table>

175332

0.80

5000

0.80

78631

0.80

91701

0.80

63905

73361

NOTE 9 – SHORT-TERM BORROWINGS On March 7, 2019, the Company entered into a short-term promissory note (“2019 Note”) with a lender (the “2019 Note Lender”) which provides the Company a revolving line of credit up to $1,000,000. On September 1, 2021, the note was amended to increase the maximum principal amount that could be advanced withdrawn under the line of credit to $<span id="xdx_90D_eus-gaap--LineOfCreditFacilityPeriodicPaymentPrincipal_c20210101__20211231__us-gaap--CreditFacilityAxis__us-gaap--RevolvingCreditFacilityMember_z3gSGQAjfGjf" title="Line of credit principal amount withdrawn">3,000,000. The borrowing base of the revolving line of credit is limited to 80% of eligible accounts receivable. Under the revolving line of credit, if the aggregate principal amount of the outstanding advances exceeds the applicable borrowing base, the Company must repay the lender an amount equal to the difference between the outstanding principal balance of the revolving line of credit and the borrowing base. The note requires monthly payments of interest, beginning May 1, 2019. Interest accrues on the outstanding principal at a rate equal to Prime Rate as set out in the Wall Street Journal from time to time with a floor of <span id="xdx_901_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_dp_uPure_c20190307__us-gaap--CreditFacilityAxis__us-gaap--RevolvingCreditFacilityMember_znIXSwbmh1Uk" title="Debt Instrument, Interest Rate, Stated Percentage">3.25% per annum. The interest rate as of December 31, 2021 was <span id="xdx_90C_eus-gaap--LineOfCreditFacilityInterestRateDuringPeriod_dp_uPure_c20210101__20211231__us-gaap--CreditFacilityAxis__us-gaap--RevolvingCreditFacilityMember_zsRZ1JvhAGOc" title="Line of credit interest rate">5.25%. The 2019 Note matures on July 31, 2023. The Company incurred interest expense relating to the short-term borrowings in the amount of $263,788 and $90,332 for the years ended December 31, 2021 and 2020, respectively.

1000000

3000000

0.0325

0.0525

2023-07-31

263788

90332

NOTE 10 – PAYCHECK PROTECTION PROGRAM – LONG TERM On May 6, 2020, the Company received the proceeds from a loan in the amount of $114,700 (the “PPP Loan”) pursuant to the Paycheck Protection Program (“PPP”) of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The Company accounted for the PPP Loan as a financial liability in accordance with Accounting Standards Codification (“ASC”) Topic 470 Debt. The PPP Loan matures on May 6, 2022 and bears interest at a fixed rate of 1.00% per annum. Loan payments, which includes principal and interest are deferred to August 20, 2021, which is 10 months after the loan forgiveness covered period. Accordingly, the PPP Loan was recognized as long-term debt in the Company’s consolidated balance sheets. There is no prepayment penalty. Under the terms of the PPP, all or a portion of the principal may be forgiven if the PPP Loan proceeds are used for qualifying expenses as described in the CARES Act, such as payroll costs, benefits, rent, and utilities. No assurance was provided that the Company will obtain forgiveness of the PPP Loan in whole or in part. With respect to any portion of the PPP Loan that is not forgiven, the PPP Loan would be subject to customary provisions for a loan of this type, including customary events of default relating to, among other things, payment defaults and breaches of the provisions of the PPP Loan. On March 22, 2021, the PPP loan was forgiven in whole, which included principal of $114,700 and accrued interest of $978. The total amount forgiven of $115,678 is recorded as a gain from extinguishment of debt in the accompanying consolidated statements of operations.

114700

2022-05-06

0.0100

114700

978

115678

NOTE 11 – CONVERTIBLE DEBT 2020 Bridge Notes On October 7, 2020, the Company entered into a note purchase agreement (the “2020 Bridge Notes”) with certain existing shareholders and investors pursuant to which the Company issued bridge notes in the aggregate principal amount of $4,004,421 (the “Bridge Financing”). All bridge notes will mature on the date that is two years from the closing date of the bridge financing. Interest on the bridge notes will accrue at an annual rate of <span id="xdx_905_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_uPure_c20201007__us-gaap--DebtInstrumentAxis__custom--TwoThousandAndTwentyBridgeNotesMember_zZutgY3ri2W5" title="Debt instrument interest percentage">5% over two-year term of the bridge notes and is payable by the Company (i) at maturity, (ii) upon acceleration of the indebtedness in the case of an event of default, (iii) in connection with any prepayment of the bridge notes by the Company or, (iv) in connection with any conversion of the bridge notes through the issuance of shares of the capital stock of the Company in exchange for accrued and unpaid interest owing at the time of conversion. Each note is convertible into conversion shares pursuant to one of the following: 1. Automatic Private Investment in Public Equity (“PIPE”) financing conversion, 2. Optional next equity financing conversion; 3. Optional corporate transaction conversion; 4. Optional maturity conversion. There is no pre-determined conversion price in any of the above under the note purchase agreements, but rather, the applicable conversion price in connection with any conversion of the 2020 Bridge Notes will be determined by reference to a formula that includes a 50% discount to the per share price or value of the Company’s shares, as the case may be, implied by the event in connection with which, or at the time at which, conversion occurs. FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020 NOTE 11 – CONVERTIBLE DEBT (CONTINUED) Under the note purchase agreement, the Company agreed to issue to each purchaser, at the time of such purchaser’s purchase of a note pursuant to the agreement (whether at the initial closing or at a subsequent closing), and for no additional consideration to be paid by such purchaser, <span id="xdx_90E_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20201006__20201007__us-gaap--DebtInstrumentAxis__custom--TwoThousandAndTwentyBridgeNotesMember__srt--TitleOfIndividualAxis__custom--PurchaserMember_zRtrT0e5TP6h" title="Number of common shares issued">257.5261 shares of the Company’s common stock for each $<span id="xdx_901_eus-gaap--StockIssuedDuringPeriodValueNewIssues_c20201006__20201007__us-gaap--DebtInstrumentAxis__custom--TwoThousandAndTwentyBridgeNotesMember__srt--TitleOfIndividualAxis__custom--PurchaserMember_z1979P1sC0r8" title="Value of shares issued">1,000 principal amount of notes purchased by such purchaser. The Company issued <span id="xdx_902_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20201006__20201007__us-gaap--DebtInstrumentAxis__custom--TwoThousandAndTwentyBridgeNotesMember_zlc7ntheylq6" title="Number of common shares issued upon agreement">1,031,243 of common stock in connection with the 2020 Bridge Notes (see Note 18). Both the 2020 Bridge Notes and the common stock are not remeasured at fair value and the proceeds from the 2020 Bridge Notes were allocated between common stock and the bridge note debt based on the relative fair value, and $242,219 was allocated to the common stock and was recorded as a discount for the 2020 Bridge Notes, amortized as interest over the term of the 2020 Bridge Notes. In addition, the Company incurred $<span id="xdx_90D_eus-gaap--DebtInstrumentFeeAmount_iI_c20201007__us-gaap--DebtInstrumentAxis__custom--TwoThousandAndTwentyBridgeNotesMember__srt--TitleOfIndividualAxis__custom--LenderMember_zMrbICXkDCc" title="Debt transaction fees">50,000 of transaction fees with one of the lenders for administering the Bridge Financing. These fees were included in the lender’s bridge note and were recorded as debt issuance costs and will be amortized over the term of the 2020 Bridge Notes. 2021 Bridge Notes In 2021, the Company entered into three note purchase agreements with an existing shareholder pursuant to which the Company issued in January 2021, May 2021, and July 2021 bridge notes in the aggregate principal amount of $1,000,000, $1,608,842, and $1,000,000, respectively (the “2021 Bridge Notes”). The 2021 Bridge Notes will mature on <span id="xdx_905_eus-gaap--DebtInstrumentMaturityDate_dd_c20210101__20211231__us-gaap--DebtInstrumentAxis__custom--TwoThousandAndTwentyOneBridgeNotesMember_zUSRuTkrxXha" title="Debt instrument, maturity date">October 7, 2022. Interest on the notes will accrue at an annual rate of 5% over the term of the notes and is payable by the Company (i) at maturity, (ii) upon acceleration of the indebtedness in the case of an event of default, (iii) in connection with any prepayment of the note by the Company or, (iv) in connection with any conversion of the note through the issuance of shares of the capital stock of the Company in exchange for accrued and unpaid interest owed at the time of conversion. The 2021 Bridge Notes are convertible into conversion shares pursuant to one of the following: 1. Automatic PIPE financing conversion, 2. Optional next equity financing conversion; 3. Optional corporate transaction conversion; 4. Optional maturity conversion. There is no pre-determined conversion price in any of the above under the note purchase agreement, but rather, the applicable conversion price in connection with any conversion of the 2021 Bridge Notes will be determined by reference to a formula that includes a <span id="xdx_908_ecustom--PercentageOfDebtDiscount_iI_pid_uPure_c20201007__us-gaap--DebtInstrumentAxis__custom--TwoThousandAndTwentyBridgeNotesMember__srt--RangeAxis__srt--MinimumMember_zvS858mEaoM8" title="Debt discount price per share">20% to <span id="xdx_906_ecustom--PercentageOfDebtDiscount_iI_pid_uPure_c20201007__us-gaap--DebtInstrumentAxis__custom--TwoThousandAndTwentyBridgeNotesMember__srt--RangeAxis__srt--MaximumMember_zYcZWCnasXF7" title="Debt discount price per share">25% discount to the per share price or value of the Company’s shares, as the case may be, implied by the event in connection with which, or at the time at which, conversion occurs. Since the Company’s shares are not publicly traded and the conversion of both the 2020 Bridge Notes and the 2021 Bridge Notes are determinable at future certain events, the conversion features cannot be determined as beneficial, and as such, no beneficial conversion feature can be bifurcated and separately accounted for. In addition, the embedded conversion feature meets the scope exception for derivatives as it is indexed to the entity’s own stock which is classified within stockholders’ equity (deficit) as there are no net settlement provisions. The Company recorded interest expense pursuant to the stated interest rates on the convertible notes in the amount of $312,426 and $200,731 for the years ended December 31, 2021 and 2020, respectively. Amortization of convertible note issuance costs for the years ended December 31, 2021 and 2020 was $<span id="xdx_908_eus-gaap--AmortizationOfFinancingCosts_c20210101__20211231__us-gaap--LongtermDebtTypeAxis__us-gaap--ConvertibleDebtMember_z4dNS5hy1KSa" title="Amortization of convertible debt issuance costs">24,996 and $<span id="xdx_901_eus-gaap--AmortizationOfFinancingCosts_c20200101__20201231__us-gaap--LongtermDebtTypeAxis__us-gaap--ConvertibleDebtMember_zBFf9RL8v6fk" title="Amortization of convertible debt issuance costs">10,828, respectively. Amortization of convertible note discounts for the years ended December 31, 2021 and 2020 was $121,104 and $28,322, respectively. The aggregate balance of the convertible notes payable is as follows at: SCHEDULE OF CONVERTIBLE NOTES PAYABLE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_491_20211231__us-gaap--ShortTermDebtTypeAxis__us-gaap--ConvertibleNotesPayableMember_zdrzqlxKSQva" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_493_20201231__us-gaap--ShortTermDebtTypeAxis__us-gaap--ConvertibleNotesPayableMember_zT7G6mlP8mBd" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_404_eus-gaap--DebtInstrumentCarryingAmount_iI_maCDzop2_zFmSdR0vum2g" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">Convertible notes payable</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">7,613,292</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">4,004,421</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--InterestPayableCurrent_iI_maCDzop2_zaVFCDhGacL7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued interest</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">356,238</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">43,842</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--DeferredFinanceCostsCurrentNet_iNI_di_msCDzop2_zhijrfpBFE37" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Less: unamortized deferred financing costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(19,158</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(44,154</td><td style="text-align: left">)</td></tr> <tr id="xdx_405_eus-gaap--DebtInstrumentUnamortizedDiscountCurrent_iNI_di_msCDzop2_z9HGWSFSOUgd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Less: unamortized discount</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(92,793</td><td style="text-align: left">)</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(213,897</td><td style="text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--ConvertibleNotesPayableCurrent_iTI_mtCDzop2_zCuMOwDdbYZ5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Convertible note payable, net</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">7,857,579</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,790,212</td><td style="text-align: left"> </td></tr> </table> FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020 NOTE 11 – CONVERTIBLE DEBT (CONTINUED) The outstanding balance of the convertible notes principal and accrued interest at December 31, 2021 relates to both the 2020 Bridge Notes and 2021 Bridge Notes and mature on the October 7, 2022. All of the convertible notes, including principal and accrued interest, were converted in February 2022 into Hudson’s equity as a result of the Merger.

4004421

P2Y

0.05

257.5261

1000

1031243

242219

50000

1000000

1608842

1000000

2022-10-07

0.05

0.20 0.25

312426

200731

24996

10828

121104

28322

The aggregate balance of the convertible notes payable is as follows at: SCHEDULE OF CONVERTIBLE NOTES PAYABLE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_491_20211231__us-gaap--ShortTermDebtTypeAxis__us-gaap--ConvertibleNotesPayableMember_zdrzqlxKSQva" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_493_20201231__us-gaap--ShortTermDebtTypeAxis__us-gaap--ConvertibleNotesPayableMember_zT7G6mlP8mBd" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_404_eus-gaap--DebtInstrumentCarryingAmount_iI_maCDzop2_zFmSdR0vum2g" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">Convertible notes payable</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">7,613,292</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">4,004,421</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--InterestPayableCurrent_iI_maCDzop2_zaVFCDhGacL7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued interest</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">356,238</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">43,842</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--DeferredFinanceCostsCurrentNet_iNI_di_msCDzop2_zhijrfpBFE37" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Less: unamortized deferred financing costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(19,158</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(44,154</td><td style="text-align: left">)</td></tr> <tr id="xdx_405_eus-gaap--DebtInstrumentUnamortizedDiscountCurrent_iNI_di_msCDzop2_z9HGWSFSOUgd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Less: unamortized discount</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(92,793</td><td style="text-align: left">)</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(213,897</td><td style="text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--ConvertibleNotesPayableCurrent_iTI_mtCDzop2_zCuMOwDdbYZ5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Convertible note payable, net</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">7,857,579</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,790,212</td><td style="text-align: left"> </td></tr> </table>

7613292

4004421

356238

43842

19158

44154

92793

213897

7857579

3790212

NOTE 12 – NOTES PAYABLE On September 16, 2021, the Company entered into a promissory note with Hudson (the “September Promissory Note”), for the amount of $1,500,000 with maturity date of September 16, 2022. Interest on the September Promissory Note accrues at a rate of <span id="xdx_908_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_uPure_c20210916__us-gaap--DebtInstrumentAxis__custom--SeptemberPromissoryNoteMember_zekze9uZ7Vb7" title="Debt instrument interest percentage">0.17% per annum. In connection with the September Promissory Note, the Company also issued warrants to Hudson to purchase certain securities of the Company (the “September Warrant Securities”) (see Note 17). Hudson assigned the warrants it received from the Company to ATW Partners Opportunities Management, LLC an affiliate of a shareholder of the Company (“ATW”) and executed a Warrant Assignment Agreement on September 16, 2021 (see Note 16). The Company measured the fair value of the warrants at the issuance date to be $2,692,396 and allocated an amount of $1,500,000 to be recorded as a debt discount that will be amortized over the term of the September Promissory Note. The transaction is deemed to be a financing transaction and the excess fair value over the proceeds received from the September Promissory Note in the amount of $1,192,396 was recorded in other expense on the accompanying consolidated statements of operations. On December 29, 2021, the Company entered into a promissory note with ATW pursuant to which the Company issued in notes in the aggregate principal amount of $200,000 discounted by $30,000 for net proceeds of $170,000 (the “First December Promissory Note”). The promissory note will mature on October 7, 2022 and interest will accrue at an annual rate of 0.33% over the term of the note. On December 29, 2021, in connection with an contemporaneous investment in Hudson funded by ATW, the Company entered a promissory note with Hudson (the “Second December Promissory Note”), for the amount of $950,000 with maturity date of September 28, 2022. Interest on the Second December Promissory Note accrues at a rate of 0.17% per annum. In connection with the First and the Second December Promissory Notes and the contemporaneous investment by ATW in Hudson, the Company also issued warrants to ATW to purchase certain securities of the Company (the “Warrant Securities”) (see Note 17). The Company measured the fair value of the warrants at the issuance date to be $2,756,669 and allocated an amount of $1,120,000 to be recorded as a debt discount that will be amortized over the term of the two notes payable. The transaction is deemed to be a financing transaction and the excess fair value over the proceeds received from the two notes payable in the amount of $1,636,669 was recorded in other expense on the accompanying consolidated statements of operations. During the year ended December 31, 2021, amortization of debt discount was recorded to interest expense in the amount of $446,774. The aggregate balance of the note payable is as follows: SCHEDULE OF NOTE PAYABLE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49A_20211231_zmnLsnRDTlib" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2021</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_40B_eus-gaap--DebtInstrumentCarryingAmount_iI_maNPCznwt_z0kZ1pITaoQ8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; text-align: left">Notes payable</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 22%; text-align: right">2,650,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--DebtInstrumentUnamortizedDiscountCurrent_iNI_di_msNPCznwt_zTbyht3ONBa3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Less: unamortized discount</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,203,226</td><td style="text-align: left">)</td></tr> <tr id="xdx_406_eus-gaap--NotesPayableCurrent_iTI_mtNPCznwt_z5FDWhpH18ck" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Notes payable, net</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">446,774</td><td style="text-align: left"> </td></tr> </table> FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020

1500000

2022-09-16

0.0017

2692396

1500000

1192396

200000

30000

170000

2022-10-07

0.0033

950000

2022-09-28

0.0017

2756669

1120000

1636669

446774

The aggregate balance of the note payable is as follows: SCHEDULE OF NOTE PAYABLE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49A_20211231_zmnLsnRDTlib" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2021</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_40B_eus-gaap--DebtInstrumentCarryingAmount_iI_maNPCznwt_z0kZ1pITaoQ8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; text-align: left">Notes payable</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 22%; text-align: right">2,650,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--DebtInstrumentUnamortizedDiscountCurrent_iNI_di_msNPCznwt_zTbyht3ONBa3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Less: unamortized discount</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,203,226</td><td style="text-align: left">)</td></tr> <tr id="xdx_406_eus-gaap--NotesPayableCurrent_iTI_mtNPCznwt_z5FDWhpH18ck" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Notes payable, net</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">446,774</td><td style="text-align: left"> </td></tr> </table>

2650000

2203226

446774

NOTE 13 – INCOME TAXES Income tax expense consists of the following components: SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 95%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_490_20210101__20211231_zqlCSofZg4B8" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_492_20200101__20201231_zUAswbAKsYAa" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Current</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--CurrentFederalTaxExpenseBenefit_i01_maCITEBzMjY_zc8nJpNC8Epj" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Federal</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--CurrentStateAndLocalTaxExpenseBenefit_i01_maCITEBzMjY_zAnFooLu1WJa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt">State</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--CurrentForeignTaxExpenseBenefit_i01_maCITEBzMjY_zftkGnxfvNTi" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 56%">Foreign</td><td style="width: 2%"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 18%; text-align: right">40,264</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 18%; text-align: right">23,051</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--CurrentIncomeTaxExpenseBenefit_i01T_mtCITEBzMjY_maITEBzyWD_z3RJErFm1aXg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total Current</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">40,264</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">23,051</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Deferred</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--DeferredFederalIncomeTaxExpenseBenefit_i01_maDFSALz1Xz_zyMtio6GzP03" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Federal</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--DeferredStateAndLocalIncomeTaxExpenseBenefit_i01_maDFSALz1Xz_zG7pviRA29De" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt">State</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--DeferredFederalStateAndLocalTaxExpenseBenefit_i01T_mtDFSALz1Xz_maITEBzyWD_znTwlLFqM2A5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total Deferred</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--IncomeTaxExpenseBenefit_iT_mtITEBzyWD_zCYzdXrhXNee" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Income tax expense</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">40,264</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">23,051</td><td style="text-align: left"> </td></tr> </table> The Company’s provision for income taxes for the years ended December 31, 2021 and 2020 is based on the estimated annual effective tax rate, plus discrete items. The following table presents the provision for income taxes and the effective tax rates for and years ended December 31, 2021 and 2020: SCHEDULE OF PROVISION AND EFFECTIVE TAX RATES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 95%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_499_20210101__20211231_zhMstiwknT81" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49E_20200101__20201231_zz9K6HAnpqf9" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_40C_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_zM2f59N766me" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">Loss before income tax provision</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">(8,160,541</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">(5,828,925</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_405_eus-gaap--IncomeTaxExpenseBenefit_zd2lj8ZI1VT4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Income tax provision</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">40,264</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">23,051</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_pid_uPure_zh3Uo0riVnt1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Effective tax rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-0.49</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-0.40</td><td style="text-align: left">%</td></tr> </table> The difference between the Company’s effective tax rate for and years ended December 31, 2021 and 2020 and the US statutory rate of 21% primarily relates to nondeductible expenses, state income taxes (net of federal benefit), a net increase in valuation allowances and certain discrete items. Reconciliation between the effective tax rate on income from continuing operations and the statutory tax rate is as follows: SCHEDULE OF RECONCILIATION EFFECTIVE AND STATUTORY TAX RATE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2021</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Income tax expense (benefit) at federal statutory rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_c20210101__20211231_zmp78qRoBmH" style="width: 16%; text-align: right" title="Income tax expense (benefit) at federal statutory rate">(1,713,714</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"><span id="xdx_909_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_c20210101__20211231_zAkzuPbaHx29" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">21.00</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">State and local income taxes net of federal tax benefit</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--IncomeTaxReconciliationStateAndLocalIncomeTaxes_c20210101__20211231_zlP3TK91FOS4" style="text-align: right" title="State and local income taxes net of federal tax benefit">(21,754</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes_pid_uPure_c20210101__20211231_zB9fhoKNOAid" style="text-align: right" title="State and local income taxes net of federal tax benefit">0.27</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Change in valuation allowance</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_c20210101__20211231_zIssxlizQEqf" style="text-align: right" title="Change in valuation allowance">2,295,280</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance_pid_dp_uPure_c20210101__20211231_zlZ6DH7ich9g" style="text-align: right" title="Change in valuation allowance">-28.13</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Return to provision adjustments</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--IncomeTaxReconciliationOtherAdjustments_c20210101__20211231_zeiCGgKMQIsk" style="text-align: right" title="Return to provision adjustments">5,119</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--EffectiveIncomeTaxRateReconciliationOtherAdjustments_pid_uPure_c20210101__20211231_zQo1VDQAbBg8" style="text-align: right" title="Return to provision adjustments">-0.06</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Permanent differences</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--IncomeTaxReconciliationChangeInEnactedTaxRate_c20210101__20211231_zUF4x0bAKmvk" style="text-align: right" title="Permanent differences">(528,281</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInEnactedTaxRate_pid_dp_uPure_c20210101__20211231_zcIwuGJkcmK8" style="text-align: right" title="Permanent differences">6.47</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Other - net</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--IncomeTaxReconciliationOtherReconcilingItems_c20210101__20211231_z1ucGBSALrs7" style="border-bottom: Black 1.5pt solid; text-align: right" title="Other - net">3,614</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--EffectiveIncomeTaxRateReconciliationOtherReconcilingItemsPercent_pid_dp_uPure_c20210101__20211231_zHBR7uG2ccwl" style="border-bottom: Black 1.5pt solid; text-align: right" title="Other - net">-0.04</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Income tax expense (benefit)</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98C_eus-gaap--IncomeTaxExpenseBenefit_c20210101__20211231_zLbYSvcAp36k" style="border-bottom: Black 2.5pt double; text-align: right" title="Income tax expense (benefit)">40,264</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_988_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_c20210101__20211231_z4mQltqs95Ri" style="border-bottom: Black 2.5pt double; text-align: right" title="Income tax expense (benefit)">-0.49</td><td style="text-align: left">%</td></tr> </table> FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020 NOTE 13 – INCOME TAXES (CONTINUED) At December 31, 2021 and December 31, 2020, the Company had federal net operating losses (“NOLs”) in the amount of $22,135,733 and $12,892,095 respectively, which are offset fully by a valuation allowance. These NOLs expire from 2035 to 2037 or have indefinite lives as follows. However, the Tax Cuts & Jobs Act of 2017 limits the amount of net operating loss utilized each year after December 31, 2020 to 80% of taxable income. SCHEDULE OF TAX CUTS AND JOBS ACT NET OPERATING LOSS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; text-align: right; padding-left: 5.4pt">12/31/2035</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--OperatingLossCarryforwards_iI_c20211231__us-gaap--TaxPeriodAxis__custom--TwelveThirtyOneTwoThousandThirtyFiveMember_zrISrXQr2SCd" style="width: 22%; text-align: right">35,945</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right; padding-left: 5.4pt">12/31/2036</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--OperatingLossCarryforwards_iI_c20211231__us-gaap--TaxPeriodAxis__custom--TwelveThirtyOneTwoThousandThirtySixMember_zexmmCuocT4h" style="text-align: right">836,622</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: right; padding-left: 5.4pt">12/31/2037</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--OperatingLossCarryforwards_iI_c20211231__us-gaap--TaxPeriodAxis__custom--TwelveThirtyOneTwoThousandThirtySevenMember_zeLjDf5p2c7h" style="text-align: right">1,922,017</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt">Indefinite</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--OperatingLossCarryforwards_iI_c20211231__us-gaap--TaxPeriodAxis__custom--IndefiniteMember_z3LTmO6GBUgl" style="border-bottom: Black 1.5pt solid; text-align: right">19,341,149</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: right; padding-bottom: 2.5pt; padding-left: 5.4pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98C_eus-gaap--OperatingLossCarryforwards_iI_c20211231_zE5iCKt17YMc" style="border-bottom: Black 2.5pt double; text-align: right" title="Total">22,135,733</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The Company is in process of evaluating the effects that a change in ownership under Internal Revenue Code Section 382 may limit the potential utilization of its NOLs going forward. Temporary differences which give rise to a significant portion of deferred tax assets are as follows: SCHEDULE OF DEFERRED TAX ASSET <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_490_20211231_ziXzIF1csoJa" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_497_20201231_zSGMnN0Ko4Wh" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_402_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsAccruedLiabilities_iI_maDTAGzZxL_zv7FjK56mRZd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: left">Accrued expenses</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 20%; text-align: right">214,397</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 20%; text-align: right">9,456</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--DeferredTaxAssetsPropertyPlantAndEquipment_iNI_di_maDTAGzZxL_z2ADh7q8AWvb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Fixed and intangible assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(75,900</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(93,694</td><td style="text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsAllowanceForDoubtfulAccounts_iI_maDTAGzZxL_zehXcNa31QWg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Allowance for doubtful accounts</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">16,678</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsWarrantyReserves_iI_maDTAGzZxL_zQhhaVgwkbSd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Warrant amortization</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">96,165</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwardsDomestic_iI_maDTAGzZxL_zhcmYY8QqOCj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Net operating loss - Federal</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,648,504</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,707,117</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwardsStateAndLocal_iI_maDTAGzZxL_zshE7sZTDVgd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net operating loss - States</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">134,113</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">115,798</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--DeferredTaxAssetsGross_iTI_mtDTAGzZxL_maDTANzA07_zzDHmyj6yFTj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Deferred tax asset, gross</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,033,957</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,738,677</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--DeferredTaxAssetsValuationAllowance_iNI_di_msDTANzA07_zXt8f0s9ToVc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Less: Valuation allowance</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(5,033,957</td><td style="text-align: left">)</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,738,677</td><td style="text-align: left">)</td></tr> <tr id="xdx_408_eus-gaap--DeferredTaxAssetsNet_iTI_mtDTANzA07_zeNpqvOLQcr5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Net deferred tax asset</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="text-align: left"> </td></tr> </table> In making this determination, the Company is required to give significant weight to evidence that can be objectively verified. It is generally difficult to conclude that a valuation allowance is not needed when there is significant negative evidence, such as cumulative losses in recent years. Forecasts of future taxable income are considered to be less objective than past results. At December 31, 2021 and December 31, 2020, the Company maintains a full valuation allowance against its deferred tax assets. Income tax expense is recorded using the asset and liability method. Deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to temporary differences between amounts reported for income tax purposes and financial statement purposes, using current tax rates. A valuation allowance is recognized if it is anticipated that some or all of a deferred tax asset will not be realized. The Company must assess the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent that the Company believes that recovery is not likely, it must establish a valuation allowance. Significant management judgment is required in determining the provision for income taxes, deferred tax assets and liabilities and any valuation allowance recorded against net deferred tax assets. None of the Company’s Federal or state income tax returns are currently under examination by the Internal Revenue Service (“IRS”) or state authorities. However, the 2017-2020 remain open to examination as the statute of limitations has not yet expired. FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020

Income tax expense consists of the following components: SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 95%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_490_20210101__20211231_zqlCSofZg4B8" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_492_20200101__20201231_zUAswbAKsYAa" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Current</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--CurrentFederalTaxExpenseBenefit_i01_maCITEBzMjY_zc8nJpNC8Epj" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Federal</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--CurrentStateAndLocalTaxExpenseBenefit_i01_maCITEBzMjY_zAnFooLu1WJa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt">State</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--CurrentForeignTaxExpenseBenefit_i01_maCITEBzMjY_zftkGnxfvNTi" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 56%">Foreign</td><td style="width: 2%"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 18%; text-align: right">40,264</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 18%; text-align: right">23,051</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--CurrentIncomeTaxExpenseBenefit_i01T_mtCITEBzMjY_maITEBzyWD_z3RJErFm1aXg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total Current</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">40,264</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">23,051</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Deferred</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--DeferredFederalIncomeTaxExpenseBenefit_i01_maDFSALz1Xz_zyMtio6GzP03" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Federal</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--DeferredStateAndLocalIncomeTaxExpenseBenefit_i01_maDFSALz1Xz_zG7pviRA29De" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt">State</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--DeferredFederalStateAndLocalTaxExpenseBenefit_i01T_mtDFSALz1Xz_maITEBzyWD_znTwlLFqM2A5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total Deferred</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--IncomeTaxExpenseBenefit_iT_mtITEBzyWD_zCYzdXrhXNee" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Income tax expense</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">40,264</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">23,051</td><td style="text-align: left"> </td></tr> </table>

40264

23051

40264

23051

40264

23051

The Company’s provision for income taxes for the years ended December 31, 2021 and 2020 is based on the estimated annual effective tax rate, plus discrete items. The following table presents the provision for income taxes and the effective tax rates for and years ended December 31, 2021 and 2020: SCHEDULE OF PROVISION AND EFFECTIVE TAX RATES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 95%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_499_20210101__20211231_zhMstiwknT81" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49E_20200101__20201231_zz9K6HAnpqf9" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_40C_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_zM2f59N766me" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">Loss before income tax provision</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">(8,160,541</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">(5,828,925</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_405_eus-gaap--IncomeTaxExpenseBenefit_zd2lj8ZI1VT4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Income tax provision</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">40,264</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">23,051</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_pid_uPure_zh3Uo0riVnt1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Effective tax rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-0.49</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-0.40</td><td style="text-align: left">%</td></tr> </table>

-8160541

-5828925

40264

23051

-0.49

-0.40

0.21

Reconciliation between the effective tax rate on income from continuing operations and the statutory tax rate is as follows: SCHEDULE OF RECONCILIATION EFFECTIVE AND STATUTORY TAX RATE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2021</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Income tax expense (benefit) at federal statutory rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_c20210101__20211231_zmp78qRoBmH" style="width: 16%; text-align: right" title="Income tax expense (benefit) at federal statutory rate">(1,713,714</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"><span id="xdx_909_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_c20210101__20211231_zAkzuPbaHx29" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">21.00</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">State and local income taxes net of federal tax benefit</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--IncomeTaxReconciliationStateAndLocalIncomeTaxes_c20210101__20211231_zlP3TK91FOS4" style="text-align: right" title="State and local income taxes net of federal tax benefit">(21,754</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes_pid_uPure_c20210101__20211231_zB9fhoKNOAid" style="text-align: right" title="State and local income taxes net of federal tax benefit">0.27</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Change in valuation allowance</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_c20210101__20211231_zIssxlizQEqf" style="text-align: right" title="Change in valuation allowance">2,295,280</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance_pid_dp_uPure_c20210101__20211231_zlZ6DH7ich9g" style="text-align: right" title="Change in valuation allowance">-28.13</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Return to provision adjustments</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--IncomeTaxReconciliationOtherAdjustments_c20210101__20211231_zeiCGgKMQIsk" style="text-align: right" title="Return to provision adjustments">5,119</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--EffectiveIncomeTaxRateReconciliationOtherAdjustments_pid_uPure_c20210101__20211231_zQo1VDQAbBg8" style="text-align: right" title="Return to provision adjustments">-0.06</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Permanent differences</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--IncomeTaxReconciliationChangeInEnactedTaxRate_c20210101__20211231_zUF4x0bAKmvk" style="text-align: right" title="Permanent differences">(528,281</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInEnactedTaxRate_pid_dp_uPure_c20210101__20211231_zcIwuGJkcmK8" style="text-align: right" title="Permanent differences">6.47</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Other - net</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--IncomeTaxReconciliationOtherReconcilingItems_c20210101__20211231_z1ucGBSALrs7" style="border-bottom: Black 1.5pt solid; text-align: right" title="Other - net">3,614</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--EffectiveIncomeTaxRateReconciliationOtherReconcilingItemsPercent_pid_dp_uPure_c20210101__20211231_zHBR7uG2ccwl" style="border-bottom: Black 1.5pt solid; text-align: right" title="Other - net">-0.04</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Income tax expense (benefit)</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98C_eus-gaap--IncomeTaxExpenseBenefit_c20210101__20211231_zLbYSvcAp36k" style="border-bottom: Black 2.5pt double; text-align: right" title="Income tax expense (benefit)">40,264</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_988_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_c20210101__20211231_z4mQltqs95Ri" style="border-bottom: Black 2.5pt double; text-align: right" title="Income tax expense (benefit)">-0.49</td><td style="text-align: left">%</td></tr> </table>

-1713714

0.2100

-21754

0.27

2295280

-0.2813

5119

-0.06

-528281

0.0647

3614

-0.0004

40264

-0.49

22135733

12892095

NOLs expire from 2035 to 2037 SCHEDULE OF TAX CUTS AND JOBS ACT NET OPERATING LOSS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; text-align: right; padding-left: 5.4pt">12/31/2035</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--OperatingLossCarryforwards_iI_c20211231__us-gaap--TaxPeriodAxis__custom--TwelveThirtyOneTwoThousandThirtyFiveMember_zrISrXQr2SCd" style="width: 22%; text-align: right">35,945</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right; padding-left: 5.4pt">12/31/2036</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--OperatingLossCarryforwards_iI_c20211231__us-gaap--TaxPeriodAxis__custom--TwelveThirtyOneTwoThousandThirtySixMember_zexmmCuocT4h" style="text-align: right">836,622</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: right; padding-left: 5.4pt">12/31/2037</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--OperatingLossCarryforwards_iI_c20211231__us-gaap--TaxPeriodAxis__custom--TwelveThirtyOneTwoThousandThirtySevenMember_zeLjDf5p2c7h" style="text-align: right">1,922,017</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right; padding-bottom: 1.5pt; padding-left: 5.4pt">Indefinite</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--OperatingLossCarryforwards_iI_c20211231__us-gaap--TaxPeriodAxis__custom--IndefiniteMember_z3LTmO6GBUgl" style="border-bottom: Black 1.5pt solid; text-align: right">19,341,149</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: right; padding-bottom: 2.5pt; padding-left: 5.4pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98C_eus-gaap--OperatingLossCarryforwards_iI_c20211231_zE5iCKt17YMc" style="border-bottom: Black 2.5pt double; text-align: right" title="Total">22,135,733</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

35945

836622

1922017

19341149

22135733

Temporary differences which give rise to a significant portion of deferred tax assets are as follows: SCHEDULE OF DEFERRED TAX ASSET <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_490_20211231_ziXzIF1csoJa" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_497_20201231_zSGMnN0Ko4Wh" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_402_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsAccruedLiabilities_iI_maDTAGzZxL_zv7FjK56mRZd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: left">Accrued expenses</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 20%; text-align: right">214,397</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 20%; text-align: right">9,456</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--DeferredTaxAssetsPropertyPlantAndEquipment_iNI_di_maDTAGzZxL_z2ADh7q8AWvb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Fixed and intangible assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(75,900</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(93,694</td><td style="text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsAllowanceForDoubtfulAccounts_iI_maDTAGzZxL_zehXcNa31QWg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Allowance for doubtful accounts</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">16,678</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsWarrantyReserves_iI_maDTAGzZxL_zQhhaVgwkbSd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Warrant amortization</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">96,165</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwardsDomestic_iI_maDTAGzZxL_zhcmYY8QqOCj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Net operating loss - Federal</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,648,504</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,707,117</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwardsStateAndLocal_iI_maDTAGzZxL_zshE7sZTDVgd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net operating loss - States</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">134,113</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">115,798</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--DeferredTaxAssetsGross_iTI_mtDTAGzZxL_maDTANzA07_zzDHmyj6yFTj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Deferred tax asset, gross</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,033,957</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,738,677</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--DeferredTaxAssetsValuationAllowance_iNI_di_msDTANzA07_zXt8f0s9ToVc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Less: Valuation allowance</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(5,033,957</td><td style="text-align: left">)</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,738,677</td><td style="text-align: left">)</td></tr> <tr id="xdx_408_eus-gaap--DeferredTaxAssetsNet_iTI_mtDTANzA07_zeNpqvOLQcr5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Net deferred tax asset</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="text-align: left"> </td></tr> </table>

214397

9456

75900

93694

16678

96165

4648504

2707117

134113

115798

5033957

2738677

5033957

2738677

the 2017-2020 remain open to examination as the statute of limitations has not yet expired.

NOTE 14 – LEASES In 2020, the Company entered into various short-term lease commitments ranging from three to six months for office workspace in New York. The monthly rental cost ranged from $800 to $2,000. In January 2020, the Company entered into a lease agreement for 7 workstations in Mexico for a term of 12 months and expired on December 31, 2020. In November 2020, the Company entered into a lease agreement for 14 workstations in Mexico for a term of 12 months and expired on October 31, 2021. In November 2021, the Company entered into a lease agreement for 62 workstations in Mexico for a term of 12 months and will expire on October 31, 2022. The rental cost for the years ended December 31, 2021 and 2020, was approximately $110,000 and 67,000, respectively.

800

2000

P12M

2020-12-31

P12M

2021-10-31

P12M

2022-10-31

110000

67000

NOTE 15 – SEGMENT INFORMATION Geographic long-lived asset information presented below is based on the physical location of the assets at the end of year. Long-lived assets including intangible assets, capitalized software, property and equipment and security deposits, by geographic region, are as follows at: <p id="xdx_894_eus-gaap--ScheduleOfRevenuesFromExternalCustomersAndLongLivedAssetsByGeographicalAreasTableTextBlock_zbPUxg7vdnm6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> SCHEDULE OF SEGMENT LONG-LIVED ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49E_20211231_zf8rTkQUU3rc" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_493_20201231_zD9P6uGaPE5e" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_406_eus-gaap--NoncurrentAssets_iI_hsrt--StatementGeographicalAxis__country--US_zmQNce5rXENa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: left">United States</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 20%; text-align: right">369,706</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 20%; text-align: right">452,891</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--NoncurrentAssets_iI_hsrt--StatementGeographicalAxis__country--MX_zeJU7YawgHib" style="vertical-align: bottom; background-color: White"> <td>Mexico</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">290,548</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">39,731</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--NoncurrentAssets_iI_zGMEk3LKKjC2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total long-lived assets</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">660,254</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">492,622</td><td style="text-align: left"> </td></tr> </table> The following table summarizes the Company’s total revenue by geographic area based on the billing address of the customers: SCHEDULE OF REVENUE BY GEOGRAPHIC AREA OF CUSTOMERS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_497_20210101__20211231_zjmLqO7mzwA5" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_498_20200101__20201231_zOYKYG6TTk38" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year Ended December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_407_eus-gaap--Revenues_hsrt--StatementGeographicalAxis__country--US_zEe3lxumHE39" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: left">United States</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 20%; text-align: right">20,156,744</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 20%; text-align: right">8,738,661</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--Revenues_hsrt--StatementGeographicalAxis__country--MX_zEm4LRNpCyC1" style="vertical-align: bottom; background-color: White"> <td>Mexico</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,317,407</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">467,280</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--Revenues_zusbbPArPfI7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total revenue</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">21,474,151</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,205,941</td><td style="text-align: left"> </td></tr> </table>

<p id="xdx_894_eus-gaap--ScheduleOfRevenuesFromExternalCustomersAndLongLivedAssetsByGeographicalAreasTableTextBlock_zbPUxg7vdnm6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> SCHEDULE OF SEGMENT LONG-LIVED ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49E_20211231_zf8rTkQUU3rc" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_493_20201231_zD9P6uGaPE5e" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_406_eus-gaap--NoncurrentAssets_iI_hsrt--StatementGeographicalAxis__country--US_zmQNce5rXENa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: left">United States</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 20%; text-align: right">369,706</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 20%; text-align: right">452,891</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--NoncurrentAssets_iI_hsrt--StatementGeographicalAxis__country--MX_zeJU7YawgHib" style="vertical-align: bottom; background-color: White"> <td>Mexico</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">290,548</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">39,731</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--NoncurrentAssets_iI_zGMEk3LKKjC2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total long-lived assets</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">660,254</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">492,622</td><td style="text-align: left"> </td></tr> </table>

369706

452891

290548

39731

660254

492622

The following table summarizes the Company’s total revenue by geographic area based on the billing address of the customers: SCHEDULE OF REVENUE BY GEOGRAPHIC AREA OF CUSTOMERS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_497_20210101__20211231_zjmLqO7mzwA5" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_498_20200101__20201231_zOYKYG6TTk38" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year Ended December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_407_eus-gaap--Revenues_hsrt--StatementGeographicalAxis__country--US_zEe3lxumHE39" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: left">United States</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 20%; text-align: right">20,156,744</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 20%; text-align: right">8,738,661</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--Revenues_hsrt--StatementGeographicalAxis__country--MX_zEm4LRNpCyC1" style="vertical-align: bottom; background-color: White"> <td>Mexico</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,317,407</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">467,280</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--Revenues_zusbbPArPfI7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total revenue</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">21,474,151</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,205,941</td><td style="text-align: left"> </td></tr> </table>

20156744

8738661

1317407

467280

21474151

9205941

NOTE 16 – RELATED PARTY TRANSACTIONS The Company received consulting, accounting and recruiting services from various shareholders. The total cost of these services for the years ended December 31, 2021 and 2020 were $350,000 and $353,000, respectively. The accounts payable to these various shareholders as of December 31, 2021 and December 31, 2020 were $140,000 and $30,000, respectively. The Company also provided freight services to a customer owned by a shareholder. The accounts receivable from this certain customer as of December 31, 2021 and December 31, 2020 was $0 and $24,000 respectively. The revenue of these services for the years ended December 31, 2021 and 2020 was $99,000 and $164,000, respectively. In 2021, the Company issued various warrants to ATW, an affiliate of a shareholder and entered into various promissory notes with shareholders. (See Note 12 and 17). FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020

350000

353000

140000

30000

24000

99000

164000

NOTE 17 – WARRANTS On November 9, 2015, the Company issued 9,050 common stock warrants to two founders with an exercise price of $5.00. The warrants expire and are no longer exercisable at the earlier of the tenth anniversary of the date the warrants were issued or the date the Company is acquired by another entity. Under the terms of a short-term borrowing agreement signed in 2017, the lender had a right to invest up to the greater of (i) $250,000 or (ii) an amount that would maintain Lender’s pro rata ownership in the Company under the same terms provided to other investors. On November 15, 2018, the Company and the lender agreed on the terms of the right to invest by granting the lender a warrant to purchase up to <span id="xdx_903_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20181115__us-gaap--StatementEquityComponentsAxis__custom--SeriesSeedPreferredWarrantsMember__srt--RangeAxis__srt--MaximumMember_zWDwKI5qyrG3" title="Warrants to Purchase">7,224 series seed preferred shares of the Company at an exercise price of $<span id="xdx_90F_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20181115__us-gaap--StatementEquityComponentsAxis__custom--SeriesSeedPreferredWarrantsMember_zwIjVmpJv3M8" title="Exercise Price">10.38 per share. The warrants expire and are no longer exercisable at the tenth anniversary of the date the warrants were issued. The warrant shall be automatically exchanged for shares in the event of a change of control. On August 26, 2020, the Company issued a warrant to an affiliate of a shareholder to purchase up to <span id="xdx_905_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20200826__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zMjZsnyt7YL6" title="Purchase of Warrants">765,862 Series A2 preferred shares at an exercise price of $0.25 in exchange for professional services. Effective December 31, 2020, this warrant was cancelled and a replacement warrant to purchase up to <span id="xdx_909_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20201231__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zhISodOrz9L9" title="Purchase of Warrants">765,862 Series A2 preferred shares at an exercise price of $0.25 was issued to an affiliate of the original warrant holder. The Company estimated the fair value of the warrants to be $1,039,070 based on a Black-Scholes valuation and recorded it as professional fees and included it in additional paid-in capital as of December 31, 2020. The warrants expire on August 26, 2027. On December 17, 2021, the warrants were exercised (see Note 19). The following assumptions were used when calculating the issuance date fair value: SUMMARY OF FAIR VALUE AT GRANT DATE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%">Exercise price of the warrants</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20211231_zc5BEOHUCmOk" style="width: 22%; text-align: right" title="Exercise price of the warrants">0.25</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected life of the warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--WarrantsAndRightsOutstandingTerm_iI_dc_c20211231__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedTermMember_zmkwK3ksEdo" title="Expected life of the warrants">7 years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Current value of the underlying share</td><td> </td> <td style="text-align: left">$</td><td id="xdx_988_eus-gaap--SharePrice_iI_c20211231_zoIvcdq8M6Le" style="text-align: right" title="Current value of the underlying share">1.45</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20211231__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_za9TwdetpRPe" title="Expected volatility">101.70</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Expected dividend yield</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20211231__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedDividendRateMember_zNvlSnB04End" title="Expected dividend yield">0.00</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Risk-free interest rates</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20211231__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_zjiukMGZV4N6" title="Risk- free interest rates">0.22</td><td style="text-align: left">%</td></tr> </table> The table below summarizes the Company’s warrant activities: SUMMARY OF WARRANT ACTIVITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number of Common Shares Warrants</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number of Series Seed Shares Warrants</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number of Series A Shares Warrants</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Exercise Price Range Per Share</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted Average Exercise Price</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 20%">Balance at December 31, 2019</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20200101__20201231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zw9SDeZ9px74" style="width: 10%; text-align: right" title="Number of warrants, Beginning balance">9,050</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20200101__20201231__us-gaap--StatementEquityComponentsAxis__custom--SeriesSeedPreferredWarrantsMember_zkUjmztiXRyl" style="width: 10%; text-align: right" title="Number of series seed shares warrants, Beginning balance">7,224</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20200101__20201231__us-gaap--StatementEquityComponentsAxis__custom--SeriesAWarrantsMember_zEtwUIPJqtx8" style="width: 12%; text-align: right" title="Number of series A shares warrants, Beginning balance">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right"><span id="xdx_90F_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice_iS_c20200101__20201231__srt--RangeAxis__srt--MinimumMember_z7tM7s0xOEv5" title="Exercise Price Range Per Share, Beginning balance">5.00 to <span id="xdx_909_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice_iS_c20200101__20201231__srt--RangeAxis__srt--MaximumMember_zKViiKPsHjja" title="Exercise Price Range Per Share, Beginning balance">10.38</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageExercisePrice_iS_c20200101__20201231_zcEQ8mh9J4wl" style="width: 12%; text-align: right" title="Weighted average exercise price, beginning balance">7.39</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_c20200101__20201231_zfgBDuUsiQEd" style="text-align: right" title="Number of warrants, Granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_c20200101__20201231__us-gaap--StatementEquityComponentsAxis__custom--SeriesSeedPreferredWarrantsMember_zw3yos5P9c01" style="text-align: right" title="Number of series seed shares warrants, Granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_pid_c20200101__20201231__us-gaap--StatementEquityComponentsAxis__custom--SeriesAWarrantsMember_zpKzAt1rx2J4" style="text-align: right" title="Number of Series A Shares Warrants, Granted">1,573,362</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardNonOptionsGrantsInPeriodWeightedAverageExercisePrice_c20200101__20201231__srt--RangeAxis__srt--MinimumMember_zRFmNRffYht6" title="Exercise Price Range Per Share, Granted">0.00001 to <span id="xdx_90A_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardNonOptionsGrantsInPeriodWeightedAverageExercisePrice_c20200101__20201231__srt--RangeAxis__srt--MaximumMember_zsUvBynUEuya" title="Exercise Price Range Per Share, Granted">0.60</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGrantsInPeriodWeightedAverageExercisePrice_c20200101__20201231_zy9CU1uLtO1k" style="text-align: right" title="Weighted Average Exercise Price, Granted">0.40</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Forfeited</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeitures_c20200101__20201231_zeAunQazZpd9" style="text-align: right" title="Number of warrants, Forfeited">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeitures_c20200101__20201231__us-gaap--StatementEquityComponentsAxis__custom--SeriesSeedPreferredWarrantsMember_zeo7HA3jOntc" style="text-align: right" title="Number of series seed shares warrants, Forfeited">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeitures_c20200101__20201231__us-gaap--StatementEquityComponentsAxis__custom--SeriesAWarrantsMember_zYMzxJPHZ8c" style="text-align: right" title="Number of Series A Shares Warrants, Forfeited">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeitedInPeriodWeightedAverageExercisePrice_c20200101__20201231_z3vALKjSNKpb" style="text-align: right" title="Weighted Average Exercise Price, Forfeited">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercised</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_c20200101__20201231_zhCnYg6ch5fg" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of warrants, Exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_c20200101__20201231__us-gaap--StatementEquityComponentsAxis__custom--SeriesSeedPreferredWarrantsMember_zKLu8cs2c9ee" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of series seed shares warrants, Exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_c20200101__20201231__us-gaap--StatementEquityComponentsAxis__custom--SeriesAWarrantsMember_zkIkDVmbPx76" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of Series A Shares Warrants, Exercised">(807,500</td><td style="text-align: left">)</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span id="xdx_906_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardNonOptionsExercisesInPeriodWeightedAverageExercisePrice_c20200101__20201231__srt--RangeAxis__srt--MinimumMember_zlAORwV6HvYf" title="Exercise Price Range Per Share, Exercised">0.00001 to <span id="xdx_907_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardNonOptionsExercisesInPeriodWeightedAverageExercisePrice_c20200101__20201231__srt--RangeAxis__srt--MaximumMember_zWPHFHqqMZ0a" title="Exercise Price Range Per Share, Exercised">0.60</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_984_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercisedInPeriodWeightedAverageExercisePrice_c20200101__20201231_zuqPK3NA9kX2" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted Average Exercise Price, Exercised">0.54</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Balance at December 31, 2020</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_ziTncFpCohh9" style="text-align: right" title="Number of warrants, Beginning balance">9,050</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__custom--SeriesSeedPreferredWarrantsMember_zEMMAJof2bJl" style="text-align: right" title="Number of series seed shares warrants, Beginning balance">7,224</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__custom--SeriesAWarrantsMember_zZD8OgOiomn1" style="text-align: right" title="Number of series A shares warrants, Beginning balance">765,862</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_908_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice_iS_c20210101__20211231__srt--RangeAxis__srt--MinimumMember_zVm2a6oYSeT1" title="Exercise Price Range Per Share, Beginning balance">0.00001 to <span id="xdx_90B_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice_iS_c20210101__20211231__srt--RangeAxis__srt--MaximumMember_zwVyQQSKp0Lj" title="Exercise Price Range Per Share, Beginning balance">10.38 </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageExercisePrice_iS_c20210101__20211231_zBNitFOrJzs5" style="text-align: right" title="Weighted average exercise price, beginning balance">0.40</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Forfeited</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeitures_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zY1NGJd7jkL" style="text-align: right" title="Number of warrants, Forfeited">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeitures_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__custom--SeriesSeedPreferredWarrantsMember_ztugXuVgJRb5" style="text-align: right" title="Number of series seed shares warrants,Forfeited">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeitures_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__custom--SeriesAWarrantsMember_zuWAaPkJpud2" style="text-align: right" title="Number of Series A Shares Warrants, Forfeited">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeitedInPeriodWeightedAverageExercisePrice_c20210101__20211231_zyddDebCP5Kf" style="text-align: right" title="Weighted Average Exercise Price, Forfeited">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercised</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zdRn01J3moM4" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of warrants, Exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__custom--SeriesSeedPreferredWarrantsMember_zDWA0UEDnju2" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of series seed shares warrants, Exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__custom--SeriesAWarrantsMember_zhdRbBW9PnGd" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of Series A Shares Warrants, Exercised">(765,862</td><td style="text-align: left">)</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span id="xdx_902_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice_iI_c20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z8p4B3AM2OWi" title="Exercise Price Range Per Share, Exercised">0.25</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_984_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercisedInPeriodWeightedAverageExercisePrice_c20210101__20211231_zOvZPCDhup21" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted Average Exercise Price, Exercised">0.25</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Balance at December 31, 2021</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iE_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z3KA3sILisn7" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of warrants, Ending balance">9,050</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iE_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__custom--SeriesSeedPreferredWarrantsMember_zmai22gKvLG2" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of series seed shares warrants, Ending balance">7,224</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iE_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__custom--SeriesAWarrantsMember_zFxviYRMfS29" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Series A Shares Warrants, Ending balance">-</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_906_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice_iE_c20210101__20211231__srt--RangeAxis__srt--MinimumMember_zLgpkWyY0zj4" title="Exercise Price Range Per Share, Ending balance">0.00001 to <span id="xdx_904_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice_iE_c20210101__20211231__srt--RangeAxis__srt--MaximumMember_zAklL1tgFCl3" title="Exercise Price Range Per Share, Ending balance">10.38</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_988_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageExercisePrice_iE_c20210101__20211231_zeLkx5DNoVW2" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average exercise price, ending balance">7.39</td><td style="text-align: left"> </td></tr> </table> FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020 NOTE 17 – WARRANTS (CONTINUED) Warrant Liabilities The Company’s warrant liabilities contained unobservable inputs that reflected the Company’s own assumptions in which there was little, if any, market activity as of the measurement date. Accordingly, the Company’s warrant liabilities are measured on a recurring basis using unobservable inputs and were classified as level 3 measurements. In connection with the September Promissory Note, on September 16, 2021 the Company also issued the September Warrant Securities to Hudson to purchase certain securities of the Company. Hudson assigned the warrants it received from the Company to ATW, an affiliate of a shareholder and executed a Warrant Assignment Agreement on September 16, 2021 (see Note 12). Pursuant to the terms of the warrant agreement, upon closing of the Merger, the warrant will be automatically deemed exercised and the Company will issue <span id="xdx_90B_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20210916__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zsYHxjWdwCyj" title="Purchase of warrants">1,891,928 shares of the Company’s Series A3 Preferred Stock and warrants to purchase <span id="xdx_901_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20210916__us-gaap--StatementClassOfStockAxis__custom--SeriesA3PreferredStockMember_zsS50U6r5V9i" title="Purchase of warrants">1,891,928 shares of Series A3 Preferred Stock at an exercise price of $<span id="xdx_909_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20210916__us-gaap--StatementClassOfStockAxis__custom--SeriesA3PreferredStockMember_zNtO9aEAxBda" title="Exercise price">1.125 based on the Exchange Ratio of 1.26855. The warrant agreement includes additional optional exercise triggers upon certain financing transactions if the Merger is not completed. In addition, if the warrants are not exercised prior to October 7, 2022 under any of the additional optional exercise triggers, then at any time on or after October 7, 2022, the warrant holder may elect to exercise a warrant to purchase up to a number of September Warrant Securities equal to the quotient obtained by dividing (A) $2,700,000 (“September Warrant Value”), by (B) 75% of the fair market value of a share of the most senior class of equity securities of the Company outstanding at the time of exercise as determined by mutual agreement. If the warrant has not been exercised in full by October 7, 2023, the warrant shall automatically be exercised by instructing the Company to withhold a number of Warrant Securities then issuable upon exercise of the warrant with an aggregate fair market value as of the exercise date equal to the exercise price of $0.01 multiplied by the number of September Warrant Securities as determined by the September Warrant Value. The warrants are considered an unconditional obligation to issue variable number of the Company’s shares for a fixed monetary amount known at inception. As such, the warrants are recorded as a liability until exercised. The Company measured the fair value of the warrants to be $2,692,396, comprised of $1,703,782 fair value of Series A3 Preferred Stock, and $<span id="xdx_906_eus-gaap--FairValueAdjustmentOfWarrants_c20210915__20210916__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember__us-gaap--StatementClassOfStockAxis__custom--SeriesA3PreferredStockMember_zVC5WhtdEJli" title="Fair value warrants">988,614 fair value of Series A3 Preferred Stock warrants based on a Black-Scholes option pricing model. The Company recorded the fair value of the warrant on inception date on September 16, 2021 as a liability and the excess fair value over the proceeds received from the September Promissory Note in the amount of $1,192,396 was recorded in other expenses on the accompanying consolidated statements of operations. The Company remeasured the fair value on December 31, 2021 and the periodic change in fair value, which amounted to $497,759, is reflected in change of fair value of warrant liabilities within the consolidated statements of operations. <p id="xdx_89C_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_hus-gaap--DebtInstrumentAxis__custom--SeptemberPromissoryNoteMember_zNjPrC0xm6E6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following assumptions were used when calculating the fair value of the A3 Warrants: SUMMARY OF FAIR VALUE AT GRANT DATE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercise price of the warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">$<span id="xdx_90F_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20210916__srt--RangeAxis__srt--MinimumMember__us-gaap--DebtInstrumentAxis__custom--SeptemberPromissoryNoteMember_zIDxey9LmY53" title="Exercise price of the warrants">0.01-$<span id="xdx_902_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20210916__srt--RangeAxis__srt--MaximumMember__us-gaap--DebtInstrumentAxis__custom--SeptemberPromissoryNoteMember_z7jC6tcAscOb" title="Exercise price of the warrants">1.125</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected life of the warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--WarrantsAndRightsOutstandingTerm_iI_dtY_c20210916__srt--RangeAxis__srt--MinimumMember__us-gaap--DebtInstrumentAxis__custom--SeptemberPromissoryNoteMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedTermMember_zZ5MRg1Gzjk8" title="Expected life of the warrants">0.3-<span id="xdx_905_eus-gaap--WarrantsAndRightsOutstandingTerm_iI_dtY_c20210916__srt--RangeAxis__srt--MaximumMember__us-gaap--DebtInstrumentAxis__custom--SeptemberPromissoryNoteMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedTermMember_zCjlbXZtbmAk" title="Expected life of the warrants">7 years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Current value of the underlying Series A3 Preferred Stock</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">$<span id="xdx_905_eus-gaap--SharePrice_iI_c20210916__srt--RangeAxis__srt--MinimumMember__us-gaap--DebtInstrumentAxis__custom--SeptemberPromissoryNoteMember_zV2wFBFY9c0d" title="Current value of the underlying series A3 preferred stock">0.75-$<span id="xdx_902_eus-gaap--SharePrice_iI_c20210916__srt--RangeAxis__srt--MaximumMember__us-gaap--DebtInstrumentAxis__custom--SeptemberPromissoryNoteMember_zoM9AFmuaFP1" title="Current value of the underlying series A3 preferred stock">0.82</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20210916__srt--RangeAxis__srt--MinimumMember__us-gaap--DebtInstrumentAxis__custom--SeptemberPromissoryNoteMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zOnQ3bJnXk2l" title="Expected volatility">58.5%-<span id="xdx_909_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20210916__srt--RangeAxis__srt--MaximumMember__us-gaap--DebtInstrumentAxis__custom--SeptemberPromissoryNoteMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zVJKivUAFISd" title="Expected volatility">71.3%</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; text-align: left">Expected dividend yield</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 22%; text-align: right"><span id="xdx_906_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20210916__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember__us-gaap--DebtInstrumentAxis__custom--SeptemberPromissoryNoteMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedDividendRateMember_zZmiX08H2IRl" title="Expected dividend yield">0.00</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Risk-free interest rates</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20210916__srt--RangeAxis__srt--MinimumMember__us-gaap--DebtInstrumentAxis__custom--SeptemberPromissoryNoteMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_zuwRVSx1guRa" title="Risk-free interest rate">0.02%-<span id="xdx_90E_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20210916__srt--RangeAxis__srt--MaximumMember__us-gaap--DebtInstrumentAxis__custom--SeptemberPromissoryNoteMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_zDsvg7JUVjPf" title="Risk- free interest rates">1.44%</td><td style="text-align: left"> </td></tr> </table> On December 29, 2021, the Company issued warrants to an affiliate of a shareholder in connection with the First and Second December Promissory Note (see Note 12). Pursuant to the terms of the warrant agreement, upon closing of the Merger (see Note 12), the warrant will be automatically deemed exercised and the Company will issue <span id="xdx_90E_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20211229__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zZ70xHvzL32f" title="Purchase of warrants">2,376,439 shares of the Company’s Series A3 Preferred Stock and warrants to purchase <span id="xdx_90C_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20211229__us-gaap--StatementClassOfStockAxis__custom--SeriesA3PreferredStockMember_z9uYKkuD8QTa" title="Purchase of warrants">2,376,439 shares of Series A3 Preferred Stock at an exercise price of $<span id="xdx_908_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20211229__us-gaap--StatementClassOfStockAxis__custom--SeriesA3PreferredStockMember_zcvv31FB5ES3" title="Exercise price">1.125 based on the Exchange Ratio of 1.26855 (“December Warrant Securities”). FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020 NOTE 17 – WARRANTS (CONTINUED) The warrant agreement includes additional optional exercise triggers upon certain financing transactions if the Merger is not completed. In addition, if the warrants are not exercised prior to December 29, 2022 under any of the additional optional exercise triggers, then at any time on or after December 29, 2022, the warrant holder may elect to exercise a warrant to purchase up to a number of December Warrant Securities equal to the quotient obtained by dividing (A) $3,391,452 (“December Warrant Value”), by (B) 75% of the fair market value of a share of the most senior class of equity securities of the Company outstanding at the time of exercise as determined by mutual agreement. If the warrant has not been exercised in full by October 7, 2023, the warrant shall automatically be exercised by instructing the Company to withhold a number of Warrant Securities then issuable upon exercise of the warrant with an aggregate fair market value as of the exercise date equal to the exercise price of $0.01 multiplied by the number of the December Warrant Securities as determined by the December Warrant Value. The warrants are considered an unconditional obligation to issue variable number of the Company’s shares for a fixed monetary amount known at inception. As such, the warrants are recorded as a liability until exercised. The Company measured the fair value of the warrants to be $2,756,669, comprised of $<span id="xdx_908_eus-gaap--FairValueAdjustmentOfWarrants_c20211228__20211229__us-gaap--StatementClassOfStockAxis__custom--SeriesA3PreferredStockMember_zwL96yqT3ixg" title="Fair Value Adjustment of Warrants">1,758,565 fair value of Series A3 Preferred Stock, and $<span id="xdx_90A_eus-gaap--FairValueAdjustmentOfWarrants_c20211228__20211229__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember__us-gaap--StatementClassOfStockAxis__custom--SeriesA3PreferredStockMember_zJ3gAiW9iRV7" title="Fair Value Adjustment of Warrants">998,104 fair value of Series A3 Preferred Stock warrants based on a Black-Scholes option pricing model. The Company recorded the fair value of the warrant on inception date as a liability on the consolidated balance sheet as of December 31, 2021 and the excess fair value over the proceeds received from the First and Second December Promissory Note in the amount of $1,636,669 was recorded in other expense on the accompanying consolidated statements of operations. <p id="xdx_89B_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_hus-gaap--DebtInstrumentAxis__custom--DecemberPromissoryNoteMember_ziutBlHoqZWh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following assumptions were used when calculating the fair value of the A3 Warrants: SUMMARY OF FAIR VALUE AT GRANT DATE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercise price of the warrants</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><span id="xdx_903_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20211229__srt--RangeAxis__srt--MinimumMember__us-gaap--DebtInstrumentAxis__custom--DecemberPromissoryNoteMember_zzERwJuiKZEg" title="Exercise price of the warrants">0.01-<span id="xdx_906_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20211229__srt--RangeAxis__srt--MaximumMember__us-gaap--DebtInstrumentAxis__custom--DecemberPromissoryNoteMember_zpcf1vJObwic" title="Exercise price of the warrants">1.125</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Contractual life of the warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90B_eus-gaap--WarrantsAndRightsOutstandingTerm_iI_dtY_c20211229__srt--RangeAxis__srt--MinimumMember__us-gaap--DebtInstrumentAxis__custom--DecemberPromissoryNoteMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedTermMember_z2C1IBzlia86" title="Contractual life of the warrants">0.3-<span id="xdx_904_eus-gaap--WarrantsAndRightsOutstandingTerm_iI_dtY_c20211229__srt--RangeAxis__srt--MaximumMember__us-gaap--DebtInstrumentAxis__custom--DecemberPromissoryNoteMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedTermMember_zrdWMAqB0Pug" title="Contractual life of the warrants">7 years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 78%; text-align: left">Current value of the underlying Series A3 Preferred Stock</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right"><span id="xdx_903_eus-gaap--SharePrice_iI_c20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember__us-gaap--DebtInstrumentAxis__custom--DecemberPromissoryNoteMember_zwx9V76gAEwi" title="Current value of the underlying series A3 preferred stock">0.80</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90C_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20211229__srt--RangeAxis__srt--MinimumMember__us-gaap--DebtInstrumentAxis__custom--DecemberPromissoryNoteMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zH01MvAkK2n9" title="Expected volatility">66.6%-<span id="xdx_908_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20211229__srt--RangeAxis__srt--MaximumMember__us-gaap--DebtInstrumentAxis__custom--DecemberPromissoryNoteMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zPmpV8vVdpGh" title="Expected volatility">71.3%</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Expected dividend yield</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90F_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20211229__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember__us-gaap--DebtInstrumentAxis__custom--DecemberPromissoryNoteMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedDividendRateMember_zRMwlivpP3n7" title="Expected dividend yield">0.00</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Risk-free interest rates</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_903_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20211229__srt--RangeAxis__srt--MinimumMember__us-gaap--DebtInstrumentAxis__custom--DecemberPromissoryNoteMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_z1WzW6z07psi" title="Risk- free interest rates">0.02%-<span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_uPure_c20211228__20211229__srt--RangeAxis__srt--MaximumMember__us-gaap--DebtInstrumentAxis__custom--DecemberPromissoryNoteMember_zNLyWMYiTuA5" title="Risk-free interest rates">1.44%</td><td style="text-align: left"> </td></tr> </table>

9050

5.00

250000

7224

10.38

765862

0.25

765862

0.25

1039070

2027-08-26

The following assumptions were used when calculating the issuance date fair value: SUMMARY OF FAIR VALUE AT GRANT DATE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%">Exercise price of the warrants</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20211231_zc5BEOHUCmOk" style="width: 22%; text-align: right" title="Exercise price of the warrants">0.25</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected life of the warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--WarrantsAndRightsOutstandingTerm_iI_dc_c20211231__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedTermMember_zmkwK3ksEdo" title="Expected life of the warrants">7 years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Current value of the underlying share</td><td> </td> <td style="text-align: left">$</td><td id="xdx_988_eus-gaap--SharePrice_iI_c20211231_zoIvcdq8M6Le" style="text-align: right" title="Current value of the underlying share">1.45</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20211231__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_za9TwdetpRPe" title="Expected volatility">101.70</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Expected dividend yield</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20211231__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedDividendRateMember_zNvlSnB04End" title="Expected dividend yield">0.00</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Risk-free interest rates</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20211231__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_zjiukMGZV4N6" title="Risk- free interest rates">0.22</td><td style="text-align: left">%</td></tr> </table>

0.25

P7Y

1.45

101.70

0.00

0.22

The table below summarizes the Company’s warrant activities: SUMMARY OF WARRANT ACTIVITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number of Common Shares Warrants</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number of Series Seed Shares Warrants</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number of Series A Shares Warrants</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Exercise Price Range Per Share</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted Average Exercise Price</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 20%">Balance at December 31, 2019</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20200101__20201231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zw9SDeZ9px74" style="width: 10%; text-align: right" title="Number of warrants, Beginning balance">9,050</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20200101__20201231__us-gaap--StatementEquityComponentsAxis__custom--SeriesSeedPreferredWarrantsMember_zkUjmztiXRyl" style="width: 10%; text-align: right" title="Number of series seed shares warrants, Beginning balance">7,224</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20200101__20201231__us-gaap--StatementEquityComponentsAxis__custom--SeriesAWarrantsMember_zEtwUIPJqtx8" style="width: 12%; text-align: right" title="Number of series A shares warrants, Beginning balance">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right"><span id="xdx_90F_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice_iS_c20200101__20201231__srt--RangeAxis__srt--MinimumMember_z7tM7s0xOEv5" title="Exercise Price Range Per Share, Beginning balance">5.00 to <span id="xdx_909_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice_iS_c20200101__20201231__srt--RangeAxis__srt--MaximumMember_zKViiKPsHjja" title="Exercise Price Range Per Share, Beginning balance">10.38</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageExercisePrice_iS_c20200101__20201231_zcEQ8mh9J4wl" style="width: 12%; text-align: right" title="Weighted average exercise price, beginning balance">7.39</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_c20200101__20201231_zfgBDuUsiQEd" style="text-align: right" title="Number of warrants, Granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_c20200101__20201231__us-gaap--StatementEquityComponentsAxis__custom--SeriesSeedPreferredWarrantsMember_zw3yos5P9c01" style="text-align: right" title="Number of series seed shares warrants, Granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_pid_c20200101__20201231__us-gaap--StatementEquityComponentsAxis__custom--SeriesAWarrantsMember_zpKzAt1rx2J4" style="text-align: right" title="Number of Series A Shares Warrants, Granted">1,573,362</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardNonOptionsGrantsInPeriodWeightedAverageExercisePrice_c20200101__20201231__srt--RangeAxis__srt--MinimumMember_zRFmNRffYht6" title="Exercise Price Range Per Share, Granted">0.00001 to <span id="xdx_90A_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardNonOptionsGrantsInPeriodWeightedAverageExercisePrice_c20200101__20201231__srt--RangeAxis__srt--MaximumMember_zsUvBynUEuya" title="Exercise Price Range Per Share, Granted">0.60</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGrantsInPeriodWeightedAverageExercisePrice_c20200101__20201231_zy9CU1uLtO1k" style="text-align: right" title="Weighted Average Exercise Price, Granted">0.40</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Forfeited</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeitures_c20200101__20201231_zeAunQazZpd9" style="text-align: right" title="Number of warrants, Forfeited">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeitures_c20200101__20201231__us-gaap--StatementEquityComponentsAxis__custom--SeriesSeedPreferredWarrantsMember_zeo7HA3jOntc" style="text-align: right" title="Number of series seed shares warrants, Forfeited">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeitures_c20200101__20201231__us-gaap--StatementEquityComponentsAxis__custom--SeriesAWarrantsMember_zYMzxJPHZ8c" style="text-align: right" title="Number of Series A Shares Warrants, Forfeited">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeitedInPeriodWeightedAverageExercisePrice_c20200101__20201231_z3vALKjSNKpb" style="text-align: right" title="Weighted Average Exercise Price, Forfeited">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercised</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_c20200101__20201231_zhCnYg6ch5fg" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of warrants, Exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_c20200101__20201231__us-gaap--StatementEquityComponentsAxis__custom--SeriesSeedPreferredWarrantsMember_zKLu8cs2c9ee" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of series seed shares warrants, Exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_c20200101__20201231__us-gaap--StatementEquityComponentsAxis__custom--SeriesAWarrantsMember_zkIkDVmbPx76" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of Series A Shares Warrants, Exercised">(807,500</td><td style="text-align: left">)</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span id="xdx_906_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardNonOptionsExercisesInPeriodWeightedAverageExercisePrice_c20200101__20201231__srt--RangeAxis__srt--MinimumMember_zlAORwV6HvYf" title="Exercise Price Range Per Share, Exercised">0.00001 to <span id="xdx_907_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardNonOptionsExercisesInPeriodWeightedAverageExercisePrice_c20200101__20201231__srt--RangeAxis__srt--MaximumMember_zWPHFHqqMZ0a" title="Exercise Price Range Per Share, Exercised">0.60</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_984_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercisedInPeriodWeightedAverageExercisePrice_c20200101__20201231_zuqPK3NA9kX2" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted Average Exercise Price, Exercised">0.54</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Balance at December 31, 2020</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_ziTncFpCohh9" style="text-align: right" title="Number of warrants, Beginning balance">9,050</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__custom--SeriesSeedPreferredWarrantsMember_zEMMAJof2bJl" style="text-align: right" title="Number of series seed shares warrants, Beginning balance">7,224</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__custom--SeriesAWarrantsMember_zZD8OgOiomn1" style="text-align: right" title="Number of series A shares warrants, Beginning balance">765,862</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_908_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice_iS_c20210101__20211231__srt--RangeAxis__srt--MinimumMember_zVm2a6oYSeT1" title="Exercise Price Range Per Share, Beginning balance">0.00001 to <span id="xdx_90B_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice_iS_c20210101__20211231__srt--RangeAxis__srt--MaximumMember_zwVyQQSKp0Lj" title="Exercise Price Range Per Share, Beginning balance">10.38 </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageExercisePrice_iS_c20210101__20211231_zBNitFOrJzs5" style="text-align: right" title="Weighted average exercise price, beginning balance">0.40</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Forfeited</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeitures_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zY1NGJd7jkL" style="text-align: right" title="Number of warrants, Forfeited">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeitures_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__custom--SeriesSeedPreferredWarrantsMember_ztugXuVgJRb5" style="text-align: right" title="Number of series seed shares warrants,Forfeited">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeitures_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__custom--SeriesAWarrantsMember_zuWAaPkJpud2" style="text-align: right" title="Number of Series A Shares Warrants, Forfeited">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeitedInPeriodWeightedAverageExercisePrice_c20210101__20211231_zyddDebCP5Kf" style="text-align: right" title="Weighted Average Exercise Price, Forfeited">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercised</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zdRn01J3moM4" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of warrants, Exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__custom--SeriesSeedPreferredWarrantsMember_zDWA0UEDnju2" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of series seed shares warrants, Exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__custom--SeriesAWarrantsMember_zhdRbBW9PnGd" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of Series A Shares Warrants, Exercised">(765,862</td><td style="text-align: left">)</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span id="xdx_902_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice_iI_c20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z8p4B3AM2OWi" title="Exercise Price Range Per Share, Exercised">0.25</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_984_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercisedInPeriodWeightedAverageExercisePrice_c20210101__20211231_zOvZPCDhup21" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted Average Exercise Price, Exercised">0.25</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Balance at December 31, 2021</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iE_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z3KA3sILisn7" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of warrants, Ending balance">9,050</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iE_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__custom--SeriesSeedPreferredWarrantsMember_zmai22gKvLG2" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of series seed shares warrants, Ending balance">7,224</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iE_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__custom--SeriesAWarrantsMember_zFxviYRMfS29" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Series A Shares Warrants, Ending balance">-</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_906_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice_iE_c20210101__20211231__srt--RangeAxis__srt--MinimumMember_zLgpkWyY0zj4" title="Exercise Price Range Per Share, Ending balance">0.00001 to <span id="xdx_904_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice_iE_c20210101__20211231__srt--RangeAxis__srt--MaximumMember_zAklL1tgFCl3" title="Exercise Price Range Per Share, Ending balance">10.38</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_988_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageExercisePrice_iE_c20210101__20211231_zeLkx5DNoVW2" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average exercise price, ending balance">7.39</td><td style="text-align: left"> </td></tr> </table>

9050

7224

5.00 10.38 7.39

1573362

0.00001 0.60 0.40

807500

0.00001 0.60 0.54

9050

7224

765862

0.00001 10.38 0.40

765862

0.25 0.25

9050

7224

0.00001 10.38 7.39

1891928

1.125

2700000

0.01

2692396

1703782

988614

1192396

497759

<p id="xdx_89C_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_hus-gaap--DebtInstrumentAxis__custom--SeptemberPromissoryNoteMember_zNjPrC0xm6E6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following assumptions were used when calculating the fair value of the A3 Warrants: SUMMARY OF FAIR VALUE AT GRANT DATE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercise price of the warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">$<span id="xdx_90F_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20210916__srt--RangeAxis__srt--MinimumMember__us-gaap--DebtInstrumentAxis__custom--SeptemberPromissoryNoteMember_zIDxey9LmY53" title="Exercise price of the warrants">0.01-$<span id="xdx_902_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20210916__srt--RangeAxis__srt--MaximumMember__us-gaap--DebtInstrumentAxis__custom--SeptemberPromissoryNoteMember_z7jC6tcAscOb" title="Exercise price of the warrants">1.125</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected life of the warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--WarrantsAndRightsOutstandingTerm_iI_dtY_c20210916__srt--RangeAxis__srt--MinimumMember__us-gaap--DebtInstrumentAxis__custom--SeptemberPromissoryNoteMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedTermMember_zZ5MRg1Gzjk8" title="Expected life of the warrants">0.3-<span id="xdx_905_eus-gaap--WarrantsAndRightsOutstandingTerm_iI_dtY_c20210916__srt--RangeAxis__srt--MaximumMember__us-gaap--DebtInstrumentAxis__custom--SeptemberPromissoryNoteMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedTermMember_zCjlbXZtbmAk" title="Expected life of the warrants">7 years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Current value of the underlying Series A3 Preferred Stock</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">$<span id="xdx_905_eus-gaap--SharePrice_iI_c20210916__srt--RangeAxis__srt--MinimumMember__us-gaap--DebtInstrumentAxis__custom--SeptemberPromissoryNoteMember_zV2wFBFY9c0d" title="Current value of the underlying series A3 preferred stock">0.75-$<span id="xdx_902_eus-gaap--SharePrice_iI_c20210916__srt--RangeAxis__srt--MaximumMember__us-gaap--DebtInstrumentAxis__custom--SeptemberPromissoryNoteMember_zoM9AFmuaFP1" title="Current value of the underlying series A3 preferred stock">0.82</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20210916__srt--RangeAxis__srt--MinimumMember__us-gaap--DebtInstrumentAxis__custom--SeptemberPromissoryNoteMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zOnQ3bJnXk2l" title="Expected volatility">58.5%-<span id="xdx_909_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20210916__srt--RangeAxis__srt--MaximumMember__us-gaap--DebtInstrumentAxis__custom--SeptemberPromissoryNoteMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zVJKivUAFISd" title="Expected volatility">71.3%</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; text-align: left">Expected dividend yield</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 22%; text-align: right"><span id="xdx_906_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20210916__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember__us-gaap--DebtInstrumentAxis__custom--SeptemberPromissoryNoteMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedDividendRateMember_zZmiX08H2IRl" title="Expected dividend yield">0.00</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Risk-free interest rates</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20210916__srt--RangeAxis__srt--MinimumMember__us-gaap--DebtInstrumentAxis__custom--SeptemberPromissoryNoteMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_zuwRVSx1guRa" title="Risk-free interest rate">0.02%-<span id="xdx_90E_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20210916__srt--RangeAxis__srt--MaximumMember__us-gaap--DebtInstrumentAxis__custom--SeptemberPromissoryNoteMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_zDsvg7JUVjPf" title="Risk- free interest rates">1.44%</td><td style="text-align: left"> </td></tr> </table>

0.01

1.125

P0Y3M18D

P7Y

0.75

0.82

58.5

71.3

0.00

0.02

1.44

2376439

1.125

3391452

0.75

0.01

2756669

1758565

998104

1636669

<p id="xdx_89B_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_hus-gaap--DebtInstrumentAxis__custom--DecemberPromissoryNoteMember_ziutBlHoqZWh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following assumptions were used when calculating the fair value of the A3 Warrants: SUMMARY OF FAIR VALUE AT GRANT DATE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercise price of the warrants</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><span id="xdx_903_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20211229__srt--RangeAxis__srt--MinimumMember__us-gaap--DebtInstrumentAxis__custom--DecemberPromissoryNoteMember_zzERwJuiKZEg" title="Exercise price of the warrants">0.01-<span id="xdx_906_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20211229__srt--RangeAxis__srt--MaximumMember__us-gaap--DebtInstrumentAxis__custom--DecemberPromissoryNoteMember_zpcf1vJObwic" title="Exercise price of the warrants">1.125</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Contractual life of the warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90B_eus-gaap--WarrantsAndRightsOutstandingTerm_iI_dtY_c20211229__srt--RangeAxis__srt--MinimumMember__us-gaap--DebtInstrumentAxis__custom--DecemberPromissoryNoteMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedTermMember_z2C1IBzlia86" title="Contractual life of the warrants">0.3-<span id="xdx_904_eus-gaap--WarrantsAndRightsOutstandingTerm_iI_dtY_c20211229__srt--RangeAxis__srt--MaximumMember__us-gaap--DebtInstrumentAxis__custom--DecemberPromissoryNoteMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedTermMember_zrdWMAqB0Pug" title="Contractual life of the warrants">7 years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 78%; text-align: left">Current value of the underlying Series A3 Preferred Stock</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right"><span id="xdx_903_eus-gaap--SharePrice_iI_c20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember__us-gaap--DebtInstrumentAxis__custom--DecemberPromissoryNoteMember_zwx9V76gAEwi" title="Current value of the underlying series A3 preferred stock">0.80</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90C_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20211229__srt--RangeAxis__srt--MinimumMember__us-gaap--DebtInstrumentAxis__custom--DecemberPromissoryNoteMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zH01MvAkK2n9" title="Expected volatility">66.6%-<span id="xdx_908_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20211229__srt--RangeAxis__srt--MaximumMember__us-gaap--DebtInstrumentAxis__custom--DecemberPromissoryNoteMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zPmpV8vVdpGh" title="Expected volatility">71.3%</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Expected dividend yield</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90F_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20211229__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember__us-gaap--DebtInstrumentAxis__custom--DecemberPromissoryNoteMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedDividendRateMember_zRMwlivpP3n7" title="Expected dividend yield">0.00</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Risk-free interest rates</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_903_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20211229__srt--RangeAxis__srt--MinimumMember__us-gaap--DebtInstrumentAxis__custom--DecemberPromissoryNoteMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_z1WzW6z07psi" title="Risk- free interest rates">0.02%-<span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_uPure_c20211228__20211229__srt--RangeAxis__srt--MaximumMember__us-gaap--DebtInstrumentAxis__custom--DecemberPromissoryNoteMember_zNLyWMYiTuA5" title="Risk-free interest rates">1.44%</td><td style="text-align: left"> </td></tr> </table>

0.01

1.125

P0Y3M18D

P7Y

0.80

66.6

71.3

0.00

0.02

1.44

NOTE 18 - DEFINED CONTRIBUTION PLAN The Company has a defined contribution plan covering eligible employees with at least two months of service. The Company fully matches employee contributions up to 3% of total compensation, plus 50% of contributions that exceed that amount up to 5% of total compensation. Total expense for the years ended December 31, 2021 and 2020, was $29,477 and $15,304, respectively.

The Company has a defined contribution plan covering eligible employees with at least two months of service. The Company fully matches employee contributions up to 3% of total compensation, plus 50% of contributions that exceed that amount up to 5% of total compensation.

29477

15304

NOTE 19 – STOCKHOLDERS’ DEFICIT Prior to the closing of the Merger with Hudson, the Company’s authorized capitalization consisted of (i) 68,437,031 shares of Common stock, $0.00001 par value per share (“Common Stock”), (ii) 80,000 shares of Non-Voting Common Stock, $0.00001 par value per share (“Non-Voting Common Stock”), and (iii) 60,437,031 shares of Preferred Stock, $0.00001 par value per share (“Preferred Stock”), of which 19,958 shares were designated as Series Seed Preferred Stock, $0.00001 par value per share (“Series Seed Preferred Stock”), 7,991,078 were designated as Series A1-A Preferred Stock, $0.00001 par value per share (“Series A1-A Preferred Stock”), 3,167,474 shares were designated as Series A1-B Preferred Stock, $0.00001 par value per share (“Series A1-B Preferred Stock” and together with the Series A1-A Preferred Stock, the “Series A1 Preferred Stock”), 2,258,521 shares were designated as Series A2 Preferred Stock, $0.00001 par value per share (“Series A2 Preferred Stock”), 46,000,000 shares were designated as Series A3 Preferred Stock, $0.00001 par value per share (“Series A3 Preferred Stock”), and 1,000,000 shares were designated as Series A4 Preferred Stock, $0.00001 par value per share (the “Series A4 Preferred Stock”). FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020 NOTE 19 – STOCKHOLDERS’ DEFICIT (CONTINUED) Holders of Common Stock are entitled to one vote for each share of Common Stock held at all meetings of stockholders (and written actions in lieu of meetings). On any matter presented to the stockholders of the Company for their action or consideration at any meeting of stockholders or by written consent in lieu of meeting, each holder of outstanding shares of Preferred Stock are entitled to cast the number of votes equal to the number of whole shares of Common Stock into which the shares of Preferred Stock held by such holder were convertible as of the record date for determining stockholders entitled to vote on such matter. Except as specifically indicated in the Company’s Fourth Amended and Restated Certificate of Incorporation (as amended, the “Restated Charter”) the holders of Preferred Stock voted together with the holders of Common Stock, as a single class and on an as-converted to Common Stock basis. The Non-Voting Common Stock was not entitled to vote on any matters presented to the stockholders of the Company for their action or consideration. The Restated Charter also included certain customary preferred stock protective provisions which gave a specified majority of the outstanding shares of Series A2 Preferred Stock the right to approve certain customary fundamental actions by the Company. The holders of record of the Common Stock and Preferred Stock, voting together as a single class, were entitled to elect the directors of the Company. The Restated Charter contained certain restrictions on the Company’s ability to pay dividends on its Common Stock without also simultaneously paying dividends on the Preferred Stock. In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company, the assets of the Company available for distribution to its stockholders or, in the case of a Deemed Liquidation Event (as defined in the Restated Charter) the consideration or proceeds available for distribution, as the case may be, were to be distributed to the holders of Series A4 Preferred Stock, Series A3 Preferred Stock, Series A2 Preferred Stock, Series A1 Preferred Stock, Series Seed Preferred Stock, Common Stock and Non-Voting Common Stock, pro rata based on the number of shared held by each such holder, treating for this purpose all such shares as if they had been converted to Common Stock pursuant to the terms of the Restated Charter immediately prior to such liquidation, dissolution or winding up of the Company or Deemed Liquidation Event. No share of Common Stock, Non-Voting Common Stock or Preferred Stock enjoyed a liquidation preference of priority with respect to any such distributions. Each share of Preferred Stock was convertible, at the option of the holder thereof, at any time and from time to time and without the payment of additional consideration by the holder thereof, into such number of shares of Common Stock as is determined by dividing the Reference Price (as defined below) of such share of Preferred Stock by the Conversion Price (as defined below) of such share of Preferred Stock. The “Series A4 Conversion Price” and “Series A4 Reference Price” were both initially equal to $2.25. The “Series A3 Conversion Price” and “Series A3 Reference Price” were both initially equal to $4.23. The “Series A2 Conversion Price” and “Series A2 Reference Price” were both initially equal to $1.80. The “Series A1-A Conversion Price” and “Series A1-A Reference Price” were both initially equal to $1.20. The “Series A1-B Conversion Price” and “Series A1-B Reference Price” were both initially equal to $1.50 and the “Series Seed Conversion Price” and “Series Seed Reference Price” were both initially equal to $20.7626. Accordingly, all shares of Preferred Stock were convertible to Common Stock on a one-to-one basis. The Restated Charter provided for customary broad-based weighted-average anti-dilution adjustments to the Series A2 Conversion Price or the Series A1-A Conversion Price in the event of issuances or deemed issuances of Common Stock at prices below the effective Series A2 Conversion Price or Series A1-A Conversion Price. The conversion prices of all Preferred Stock were also subject to other customary adjustments in the case of certain dividends, distributions, stock splits, stock combinations, reorganizations and similar transactions effecting the Common Stock. All outstanding shares of Preferred Stock were also subject to mandatory conversion to Common Stock upon election of the requisite majority of holders of Series A2 Preferred Stock or an initial public offering of the Company’s common stock meeting certain specified qualification. On May 19, 2020, the Company entered into a Series A Preferred Stock Purchase Agreement (the “Purchase Agreement”), with holders of the Company’s then-outstanding convertible notes. Under the Purchase Agreement, on May 19, 2020, the convertible notes were converted to <span id="xdx_900_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_c20200518__20200519__us-gaap--StatementClassOfStockAxis__custom--SeriesA1APreferredStockMember_zLUsCQc1QYMf" title="Debt Conversion">7,152,551 Series A1-A, 2,977,544 Series A1-B and 1,225,153 Series A2 preferred shares at par value of $0.00001 per share for a total carrying costs of $10,726,543. FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020 NOTE 19 – STOCKHOLDERS’ DEFICIT (CONTINUED On July 31, 2020, the Company issued <span id="xdx_909_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20200729__20200731__us-gaap--StatementClassOfStockAxis__custom--SeriesA1APreferredStockMember_zxu1AY7cWTi6" title="Warrants to purchase shares of stock">605,777.5 Series A1-A and <span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20200729__20200731__us-gaap--StatementClassOfStockAxis__custom--SeriesA2PreferredStockMember_zwoFGeITPWfg" title="Warrants to purchase shares of stock">126,722.5 Series A2 preferred shares upon the exercise of warrant to purchase shares of stock and an exercise price of $0.60 per share under the terms of the respective warrant agreement for a total consideration of approximately $440,000. On August 24, 2020, the Company issued <span id="xdx_905_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20200823__20200824__us-gaap--StatementEquityComponentsAxis__custom--SeriesA2PreferredStockMember_zfGEXiWSDUCd" title="Warrant to purchase shares of stock">75,000 Series A2 preferred shares upon the exercise of warrant to purchase shares of stock under the terms of the respective warrant agreement for a total consideration of $0. On August 26, 2020, the Company issued <span id="xdx_90A_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20200825__20200826__us-gaap--StatementEquityComponentsAxis__custom--VotingCommonSharesMember_zbOg7DwcBus" title="Stock issued during period, shares, new issues">60,000 voting common shares for professional services performed in the amount of $<span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodValueNewIssues_c20200825__20200826__us-gaap--StatementEquityComponentsAxis__custom--VotingCommonSharesMember_zGh2mtRl0q7f" title="Stock issued during period, value, new issues">15,000. On August 26, 2020, the Company issued <span id="xdx_901_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20200825__20200826__us-gaap--StatementEquityComponentsAxis__custom--VotingCommonSharesOneMember_zHcwdCZMx89l" title="Stock issued during period, shares, new issues">29,332 voting common shares for professional services performed in the amount of $<span id="xdx_90D_eus-gaap--StockIssuedDuringPeriodValueNewIssues_c20200825__20200826__us-gaap--StatementEquityComponentsAxis__custom--VotingCommonSharesOneMember_zzx7CaVMAwrb" title="Stock issued during period, value, new issues">7,333. On October 7, 2020, the Company issued <span id="xdx_90E_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20201006__20201007__us-gaap--DebtInstrumentAxis__custom--TwoThousandAndTwentyBridgeNotesMember_zXo4nhAm3Uel" title="Stock issued during period, shares, new issues">1,031,243 voting common shares to each purchaser of bridge notes based on <span id="xdx_904_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20201006__20201007__us-gaap--DebtInstrumentAxis__custom--TwoThousandAndTwentyBridgeNotesMember__srt--TitleOfIndividualAxis__custom--PurchaserMember_zwPXeVqpTXdl" title="Stock issued during period, shares, new issues">257.5261 shares for each $<span id="xdx_905_eus-gaap--SharesIssuedPricePerShare_iI_c20201007__us-gaap--DebtInstrumentAxis__custom--TwoThousandAndTwentyBridgeNotesMember__srt--TitleOfIndividualAxis__custom--PurchaserMember_ztzRBpwC2tK3" title="Shares issued, price per share">1,000 principal amount of notes purchased for a total consideration $<span id="xdx_90F_eus-gaap--DebtInstrumentFaceAmount_iI_c20201007__us-gaap--DebtInstrumentAxis__custom--TwoThousandAndTwentyBridgeNotesMember__srt--TitleOfIndividualAxis__custom--PurchaserMember_zLwKioAK8uM7" title="Debt instrument, face amount">0 (see Note 11). On February 18, 2021, the Company filed its Restated Charter. On July 30, 2021, this was amended by the Company, further amended on August 19, 2021 and further amended on September 20, 2021. On December 17, 2021, the Company issued <span id="xdx_904_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20211217__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_z2xPzCRpmw04" title="Warrants or rights shares">765,862 Series A2 preferred shares upon the exercise of warrant to purchase shares of stock and an exercise price of $<span id="xdx_90C_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20211217__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_ztvxChkS5sFg" title="Exercise price of warrants or rights">0.25 per share under the terms of the respective warrant agreement for a total consideration of $191,466. The different classes of preferred stock issued are set forth below: SCHEDULE OF PREFERRED STOCK ISSUED <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_494_20211231_zvggvOgEbSU7" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_490_20201231_zu0EaBqQ4Omi" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_402_eus-gaap--PreferredStockSharesIssued_iI_hus-gaap--StatementClassOfStockAxis__custom--SeriesA1APreferredStockMember_zMX0L1C1xdl7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%">Series A1-A Preferred Shares</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 18%; text-align: right">7,758,328</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 18%; text-align: right">7,758,328</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--PreferredStockSharesIssued_iI_hus-gaap--StatementClassOfStockAxis__custom--SeriesA2PreferredStockMember_zrcQCnftEKh1" style="vertical-align: bottom; background-color: White"> <td>Series A2 Preferred Shares</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,192,738</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,426,876</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--PreferredStockSharesIssued_iI_hus-gaap--StatementClassOfStockAxis__custom--SeriesA1BPreferredStockMember_z5OoCYGy69dh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Series A1-B Preferred Shares</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,977,544</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,977,544</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--PreferredStockSharesIssued_iI_zlHUCcUTJTn9" style="vertical-align: bottom; background-color: White"> <td>Total</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">12,928,610</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">12,162,748</td><td style="text-align: left"> </td></tr> </table>

68437031

0.00001

80000

0.00001

60437031

0.00001

19958

0.00001

7991078

0.00001

3167474

0.00001

2258521

0.00001

46000000

0.00001

1000000

0.00001

2.25

4.23

1.80

1.20

1.50

20.7626

7152551

2977544

1225153

0.00001

10726543

605777.5

126722.5

0.60

440000

75000

60000

15000

29332

7333

1031243

257.5261

1000

765862

0.25

191466

The different classes of preferred stock issued are set forth below: SCHEDULE OF PREFERRED STOCK ISSUED <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_494_20211231_zvggvOgEbSU7" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_490_20201231_zu0EaBqQ4Omi" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_402_eus-gaap--PreferredStockSharesIssued_iI_hus-gaap--StatementClassOfStockAxis__custom--SeriesA1APreferredStockMember_zMX0L1C1xdl7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%">Series A1-A Preferred Shares</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 18%; text-align: right">7,758,328</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 18%; text-align: right">7,758,328</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--PreferredStockSharesIssued_iI_hus-gaap--StatementClassOfStockAxis__custom--SeriesA2PreferredStockMember_zrcQCnftEKh1" style="vertical-align: bottom; background-color: White"> <td>Series A2 Preferred Shares</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,192,738</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,426,876</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--PreferredStockSharesIssued_iI_hus-gaap--StatementClassOfStockAxis__custom--SeriesA1BPreferredStockMember_z5OoCYGy69dh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Series A1-B Preferred Shares</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,977,544</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,977,544</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--PreferredStockSharesIssued_iI_zlHUCcUTJTn9" style="vertical-align: bottom; background-color: White"> <td>Total</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">12,928,610</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">12,162,748</td><td style="text-align: left"> </td></tr> </table>

7758328

2192738

1426876

2977544

12928610

12162748

NOTE 20 - SUBSEQUENT EVENTS Management has evaluated subsequent events through [DATE], the date that the consolidated financial statements were available for issuance. On February 2, 2022, the Company amended its Fourth Charter to increase the amount of authorized share to <span id="xdx_900_eus-gaap--CommonStockSharesAuthorized_iI_c20220202__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_ziTKAoptzSce" title="Common stock, shares authorized">68,437,031 shares of common stock, <span id="xdx_90A_eus-gaap--CommonStockSharesAuthorized_iI_c20220202__us-gaap--StatementClassOfStockAxis__us-gaap--NonvotingCommonStockMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zk8NTKQQ9qte" title="Common stock, shares, authorized">80,000 shares of non-voting common stock and <span id="xdx_90E_eus-gaap--PreferredStockSharesAuthorized_iI_c20220202__us-gaap--StatementEquityComponentsAxis__us-gaap--PreferredStockMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zwg7s5eYq6Vk" title="Preferred stock, shares authorized">60,437,031 shares of preferred stock. The different classes of preferred stock authorized are set forth below: SCHEDULE OF PREFERRED STOCK AUTHORIZED <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 60%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Type of Shares</td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_497_20211231_zGX44PUpjYx7" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number of Shares Authorized</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_402_eus-gaap--PreferredStockSharesAuthorized_iI_hus-gaap--StatementClassOfStockAxis__custom--SeriesSeedPreferredStockMember_za9ir3zsiCHa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left">Series Seed Preferred Shares</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 26%; text-align: right">19,958</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--PreferredStockSharesAuthorized_iI_hus-gaap--StatementClassOfStockAxis__custom--SeriesA1APreferredStockMember_zoU051uYTvBi" style="vertical-align: bottom; background-color: White"> <td>Series A1-A Preferred Shares</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,991,078</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--PreferredStockSharesAuthorized_iI_hus-gaap--StatementClassOfStockAxis__custom--SeriesA1BPreferredStockMember_zXrdO7jWgpR7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Series A1-B Preferred Shares</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,167,474</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--PreferredStockSharesAuthorized_iI_hus-gaap--StatementClassOfStockAxis__custom--SeriesA2PreferredStockMember_zJUL4QVk3Dle" style="vertical-align: bottom; background-color: White"> <td>Series A2 Preferred Shares</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,258,521</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--PreferredStockSharesAuthorized_iI_hus-gaap--StatementClassOfStockAxis__custom--SeriesA4PreferredStockMember_zNXc3vG8DPV7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Series A4 Preferred Shares</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,000,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--PreferredStockSharesAuthorized_iI_hus-gaap--StatementClassOfStockAxis__custom--SeriesA3PreferredStockMember_zswEa4scK702" style="vertical-align: bottom; background-color: White"> <td>Series A3 Preferred Shares</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">46,000,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--PreferredStockSharesAuthorized_iI_zzhGxk840Vh1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Total</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">60,437,031</td><td style="text-align: left"> </td></tr> </table> FREIGHT APP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020 NOTE 20 - SUBSEQUENT EVENTS (CONTINUED) As described in Note 1, the Merger between the Company and Hudson Capital Inc. was closed on February 14, 2022, including the closing of the private placement for net proceeds of $<span id="xdx_90C_eus-gaap--ProceedsFromIssuanceOfPrivatePlacement_c20220211__20220214__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zIQkMosTVXTf" title="Net proceeds from private placement">3,500,000. All of the Company’s convertible notes in the amount of $7,857,579 (as of December 31, 2021) were converted. Pursuant to the terms of the September Warrant Securities, upon closing of the Merger, the warrant securities were exercised and the Company issued <span id="xdx_904_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20210916__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z2r3Xp1dznE9" title="Warrants or rights shares">1,891,928 shares of its Series A3 Preferred Stock and warrants to purchase <span id="xdx_90D_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20210916__us-gaap--StatementClassOfStockAxis__custom--SeriesA3PreferredStockMember_zM57Nli0G3s1" title="Warrants or rights">1,891,928 shares of Series A3 Preferred Stock at an exercise price of $<span id="xdx_908_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20210916__us-gaap--StatementClassOfStockAxis__custom--SeriesA3PreferredStockMember_zn1N5H70BPZk" title="Price of warrants or rights">1.125 based on the Exchange Ratio of 1.26855 (see Note 17). Pursuant to the terms of the December Warrant Securities, upon closing of the Merger the warrant securities were exercised and the Company issued <span id="xdx_908_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20211229__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zDjDIiDKYCn8" title="Warrants or rights shares">2,376,439 shares of its Series A3 Preferred Stock and warrants to purchase <span id="xdx_900_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20211229__us-gaap--StatementClassOfStockAxis__custom--SeriesA3PreferredStockMember_z2q81eIsasIg" title="Warrants or rights shares">2,376,439 shares of Series A3 Preferred Stock at an exercise price of $<span id="xdx_90E_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20211229__us-gaap--StatementClassOfStockAxis__custom--SeriesA3PreferredStockMember_zDdjwmWUBrkf" title="Price of warrants or rights">1.125 based on the Exchange Ratio of 1.26855 (see Note 17). In order to focus on its core business as a North American transportation logistics technology platform company and improving operations, Hudson Capital Inc. (“Hudson”) has decided to divest any non-core, non-performing businesses and to sell its wholly-owned subsidiary, Hong Kong Internet Financial Services (“HKIFS”), to private investors. The divestment of HKIFS will result in Hudson departing from its legacy People’s Republic of China financial advisory business and shifting its priorities towards being situated in geographical locations of its core businesses. The sale of HKIFS was completed on March 30, 2022 for a nominal consideration, and included all of the prior operations, obligations and commitments related to its Chinese operations. Hudson expects immaterial financial effects from the sale outside of incurring minimal legal expenses to assemble and formalize the transaction.

68437031

80000

60437031

The different classes of preferred stock authorized are set forth below: SCHEDULE OF PREFERRED STOCK AUTHORIZED <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 60%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Type of Shares</td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_497_20211231_zGX44PUpjYx7" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number of Shares Authorized</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_402_eus-gaap--PreferredStockSharesAuthorized_iI_hus-gaap--StatementClassOfStockAxis__custom--SeriesSeedPreferredStockMember_za9ir3zsiCHa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left">Series Seed Preferred Shares</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 26%; text-align: right">19,958</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--PreferredStockSharesAuthorized_iI_hus-gaap--StatementClassOfStockAxis__custom--SeriesA1APreferredStockMember_zoU051uYTvBi" style="vertical-align: bottom; background-color: White"> <td>Series A1-A Preferred Shares</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,991,078</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--PreferredStockSharesAuthorized_iI_hus-gaap--StatementClassOfStockAxis__custom--SeriesA1BPreferredStockMember_zXrdO7jWgpR7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Series A1-B Preferred Shares</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,167,474</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--PreferredStockSharesAuthorized_iI_hus-gaap--StatementClassOfStockAxis__custom--SeriesA2PreferredStockMember_zJUL4QVk3Dle" style="vertical-align: bottom; background-color: White"> <td>Series A2 Preferred Shares</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,258,521</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--PreferredStockSharesAuthorized_iI_hus-gaap--StatementClassOfStockAxis__custom--SeriesA4PreferredStockMember_zNXc3vG8DPV7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Series A4 Preferred Shares</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,000,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--PreferredStockSharesAuthorized_iI_hus-gaap--StatementClassOfStockAxis__custom--SeriesA3PreferredStockMember_zswEa4scK702" style="vertical-align: bottom; background-color: White"> <td>Series A3 Preferred Shares</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">46,000,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--PreferredStockSharesAuthorized_iI_zzhGxk840Vh1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Total</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">60,437,031</td><td style="text-align: left"> </td></tr> </table>

19958

7991078

3167474

2258521

1000000

46000000

60437031

3500000

7857579

1891928

1.125

2376439

1.125

The number of shares outstanding was adjusted retroactively for all period presented to reflect the 5 to 1 reverse stock split change which was effective on October 29, 2020. The number of shares outstanding was adjusted retroactively for all period presented to reflect the 5 to 1 reverse stock split change which was effective on October 29, 2020. The number of shares outstanding was adjusted retroactively for all period presented to reflect the 5 to 1 reverse stock split change which was effective on October 29, 2020. - The computation of basic and diluted share and EPS data was adjusted retroactively for all period presented to reflect the 5 to 1 reverse stock split change which was effective on October 29, 2020. Series A Preferred Shares were issued on May 14, 2020 and have been classified as mezzanine equity in the interim consolidated balance sheet at June 30, 2020 at their maximum redemption value due to Preferred A Shares being contingently redeemable upon the occurrence of an event that is outside of the issuer’s control. On December 31, 2020, the Company’s Certificate of Incorporation was amended, such that Company’s Preferred A Shares are no longer contingently redeemable upon the occurrence of an event that is outside of the issuer’s control and therefore the Series A Preferred Shares have been reclassified from mezzanine equity to permanent equity on December 31, 2020. The warrants which are exercisable into Series A Preferred Shares were classified in preferred stock warrant liabilities in the consolidated balance sheet at June 30, 2020 due to Series A Preferred Shares holders’ control over the redemption of the shares. Due to the amendment of the Company’s certificate of incorporation on September 30, 2020 as described in the previous note, the warrants have been reclassified from warrant liabilities to additional paid-in capital as of December 31, 2020 (see also Note 18).