INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

INCOME TAXES [Abstract]

Components of Losses Before Income Taxes

The components of losses before income taxes are summarized as follows:

	For the Years Ended December 31,
	2022			2021
PRC	$	(7,386,251	)	$	(5,477,857	)
US		(17,254,945	)		(9,234,455	)
Europe		(20,130,854	)		-
Australia		(67,392,512	)		(1,128,325	)
Others		19,300			(581,170	)
Total	$	(112,145,263	)	$	(16,421,807	)

Income Tax Expenses

As the main business operations were concentrated in China, and other losses except for PRC losses are caused by non-operating activities, PRC statutory income tax rate was applied. The actual income tax expense reported in the consolidated and combined statements of operations and comprehensive loss for years ended December 31, 2022 and 2021 differs from the amount computed by applying the PRC statutory income tax rate to income before income taxes due to the following:

	For the Years Ended December 31,
	2022			2021
Loss before provision for income tax	$	(112,145,263	)	$	(16,421,807	)
PRC statutory income tax rate		25	%		25	%
Income tax expense at the PRC statutory rate		(28,036,316	)		(4,105,452	)
Effect of preferential tax rate		161,592			279,886
Effect of international tax rates		(2,255,963	)		420,450
Effect of non-deductible expenses		1,069,009			396,826
Effect of research and development deduction		(568,446	)		(204,807	)
Fair value change of warrant liability		3,912,074			-
Impairment loss of goodwill		2,777,972			-
Effect of valuation allowance		22,940,078			3,213,097
Total income tax expense		-			-
Effective income tax rate		0	%		0	%

Deferred Income Tax Assets

The tax effects of temporary differences that give rise to the deferred income tax assets balances as of December 31, 2022 and 2021 are as follows:

	December 31, 2022			December 31, 2021
Deferred income tax assets:
Impairment loss	$	3,532,162		$	2,013,232
Change in fair value of financial instrument		912,340			-
Capitalization of research and experimental costs		369,687			-
Net operating loss carry forwards		28,818,841			12,646,183
Total deferred income tax assets		33,633,030			14,659,415
Valuation allowance		(33,633,030	)		(14,659,415	)
Deferred income tax assets, net	$	-		$	-

Changes Related to Valuation Allowance

The changes related to valuation allowance are as follows:

	For the Years Ended December 31,
	2022			2021
Balance at the beginning of the year	$	14,659,415		$	19,072,736
Additions during the year		22,940,078			3,213,097
Expire of NOL		(1,318,979	)		(1,243,653	)
Write-off of employee stock ownership plans deferred tax asset		-			(4,981,854	)
Change in tax rate		(91,423	)		(959,106	)
Company deregistration		-			(708,266	)
Exchange rate effect		(2,556,061	)		266,461
Balance at the end of the year	$	33,633,030		$	14,659,415