Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Taxes [Abstract]

Schedule of Income (Loss) Before Income Taxes

The Company’s (loss) income before income taxes includes the following for the years ended December 31.

	2024			2023			2022
Non-PRC operations	$	(781,182	)	$	(176,949	)	$	(385,297	)
PRC operations		(75,761	)		1,771,475			2,254,260
Total (loss) income before income taxes	$	(856,943	)	$	1,594,526		$	1,868,963

Schedule of Income Tax Expense

Income tax expense was comprised of the following for the years ended December 31.

	2024		2023		2022
Current tax expense	$	-	$	207,553	$	276,189
Deferred tax expense		39,747		339,332		177,029
Total income tax expense	$	39,747	$	546,885	$	453,218

Schedule of Deferred Tax Assets and Liabilities

The cumulative tax effect at the expected rate of 25% of significant items comprising the net deferred tax amount is at December 31, 2024 and 2023 as follows.

	2024			2023
Deferred tax assets
Net operating loss	$	87,285		$	8,338
Deferred revenue		13,496			39,340
Unbilled cost		441,973			374,357
Unbilled interest		36,682			37,727
Depreciation		5,586			-
Software amortization		224,254			259,965
Allowance for expected credit losses		106,569			13,459
Inventories obsolescence		(6,408	)		(6,591	)
Unrealized losses on trading securities		1,712			1,761
Accrued Bonus		43,682			43,074
Other		46,771			34,246
Total deferred tax assets		1,001,602			805,676
Deferred tax liabilities
Unbilled revenue		(2,188,848	)		(2,270,234	)
Unbilled interest income		(318,899	)		(50,369	)
Deferred government subsidy		(40,519	)		(41,673	)
Unrealized gain on short-term investment		(25,575	)		(285	)
Other		(11,792	)		(14,336	)
Total deferred tax liabilities		(2,585,633	)		(2,376,897	)
Valuation allowance		(14,878	)		(32,942	)
Net deferred tax liabilities	$	(1,598,909	)	$	(1,604,163	)

Schedule of a Reconciliation of Income Tax Expense

Following is a reconciliation of income tax expense at the effective rate to income tax at the calculated statutory rates for the years ended December 31.

	2024			2023			2022
PRC statutory tax rate		25.0	%		25.0	%		25.0	%
Effect of non-PRC entities not subject to PRC tax		(22.8	)%		2.8	%		5.2	%
Effect of deregistration of a subsidiary		(1.9	)%		-	%		-	%
Permanent difference		(4.6	)%		-	%		(0.1	)%
Tax holiday effect		(0.3	)%		6.5	%		(5.9	)%
Effective tax rate		(4.6	)%		34.3	%		24.2	%