XML 101 R53.htm IDEA: XBRL DOCUMENT v3.26.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2025
INCOME TAXES [Abstract]  
Income Tax (Benefit) Expense
Income tax benefit for years ended December 31, 2025 and 2024 was $52,920 and $35,524.

   
December 31,
2025
    
December 31,
2024
  
             
Current tax (benefit) expense
  
$
(2,965
)
  
$
12,327
  
Deferred tax benefit
    
(49,955
)
    
(47,851
)
Total tax benefit
    
(52,920
)
    
(35,524
)
Less: tax expense of discontinued operation
    
-
      
-
  
Tax benefit of continuing operation
  
$
(52,920
)
  
$
(35,524
)
Components of Losses Before Income Taxes
The components of losses before income taxes are summarized as follows:

   
For the Years Ended
December 31,
  
   
2025
    
2024
  
PRC
  
$
(12,000,684
)
  
$
(16,182,770
)
US
    
(26,402,024
)
    
(11,440,101
)
Europe
    
(6,604,383
)
    
(14,244,854
)
Australia
    
(27,499,020
)
    
(1,406,267
)
Others
    
(568,739
)
    
(1,670,149
)
Total losses before income taxes
    
(73,074,850
)
    
(44,944,141
)
Less: losses before income taxes for discontinued operations
    
(4,135,717
)
    
(10,795,692
 )
Losses before income taxes for continuing operations
  
$
(68,939,133
)
  
$
(34,148,449
)
Cash Paid for Income Taxes, Net of Refunds
Cash paid for income taxes, net of refunds, are summarized as follows. The amounts presented represent cash payments for income taxes made in the respective jurisdictions in which the Company operates.

 
  
For the Years Ended
December 31,
  
 
  
2025
    
2024
  
PRC
  
$
 -
 
$
 -
US
     -
    -
Europe
     -
    -
Australia
     -
    -
Others
     -
    -
Total
  
$
 -
 
$
 -
Statutory Income Tax Rate to Income Before Income Taxes Due
As the main business operations were concentrated in China, PRC statutory income tax rate was applied. The actual income tax expense reported in the consolidated statements of operations and comprehensive loss for years ended December 31, 2025 and 2024 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,
  
   
2025
    
2024
  
   
Amount
    
Percentage
    
Amount
    
Percentage
  
Loss before provision for income tax
  
$
(73,074,850
)
        
$
(44,944,141
)
      
PRC statutory income tax rate
    
25
%
          
25
%
      
Income tax expense at the PRC statutory rate
    
(18,268,712
)
    
25.0
%
    
(11,236,035
)
    
25.0
%
Effect of preferential tax rate
    
549,898
      
(0.8
)%
    
121,460
      
(0.3
)%
Effect of international tax rates
    
1,067,905
      
(1.5
)%
    
999,558
      
(2.2
)%
Effect of non-deductible expenses
    
715,517
      
(1.0
)%
    
34,568
      
(0.1
)%
Effect of research and development deduction
    
(158,580
)
    
0.2
%
    
(316,368
)
    
0.7
%
Fair value change of warrant liability
    
(87,688
)
    
0.1
%
    
1,035
      
0.0
%
Impairment loss of goodwill
    
-
      
0.0
%
    
55,874
      
(0.1
)%
Effect of valuation allowance
    
16,128,740
      
(21.9
)%
    
10,304,384
      
(22.9
)%
Total income tax benefit
  
$
(52,920
)
    
0.1
%
  
$
(35,524
)
    
0.1
%
Deferred Income Tax Liabilities
The tax effects of temporary differences that give rise to the deferred income tax liabilities balances as of December 31, 2025 and 2024 are as follows:

   
December
31,
2025
    
December
31,
2024
  
Deferred income tax assets:
            
Impairment loss
  
$
5,653,911
    
$
4,701,765
  
Change in fair value of financial instrument
    
3,680,165
      
1,183,965
  
Capitalization of research and experimental costs
    
850,838
      
-
  
Amortization of research and experimental expenses in United States
    
-
      
1,073,895
  
Net operating loss carry forwards
    
55,282,430
      
43,534,620
  
Lease liabilities
    
84,428
      
-
  
Accrued expenses
    
(138,794
)
    
-
  
Total deferred income tax assets
    
65,412,978
      
50,494,245
  
Valuation allowance
    
(65,412,978
)
    
(50,494,245
)
Deferred income tax assets, net
  
$
-
    
$
-
  
 
                
Deferred tax liabilities:
                
Assets valuation increase from acquisition
    
(142,312
)
    
(171,558
)
Total deferred tax liabilities
    
(142,312
)
    
(171,558
)
 
                
Net deferred tax liabilities
    
(142,312
)
    
(171,558
)