Taxes (Tables)

6 Months Ended

Jun. 30, 2024

Taxes [Abstract]

Schedule of Provision for Income Taxes

Significant components of the provision for income taxes are as follows:

	For the six months ended June 30,
	2024			2023
Current	$	(410	)	$	2,795
Deferred		(144,541	)		(77,651	)
Total income tax benefit	$	(144,951	)	$	(74,856	)

Schedule of Effective Tax Rate

The following table reconciles China statutory rates to the Group’s effective tax rate:

	For the six months ended June 30,
	2024			2023
PRC statutory rates		25.0	%		25.0	%
Preferential tax rates		(1.9	)%		(0.4	)%
R&D credits		1.2	%		0.3	%
Change in valuation allowance and others		(23.3	)%		(24.8	)%
Effective tax rate		1.0	%		0.1	%

Schedule of Deferred Tax Assets and Liabilities

The significant components of the deferred tax assets and liabilities are as follows:

	June 30, 2024			December 31, 2023
Deferred tax assets:
Provision for credit losses	$	1,455,081		$	1,268,962
Depreciation and amortization		194,760			185,676
Net operating loss carryforward		2,477,328			2,496,584
Valuation allowance		(3,021,726	)		(2,932,049	)
Total deferred tax assets	$	1,105,443		$	1,019,173
Deferred tax liabilities:
Intangible assets arising from acquisitions	$	1,992,457		$	-

Schedule of Taxes Payable

Taxes payable consists of the following:

	June 30, 2024		December 31, 2023
Income taxes payable	$	5,616	$	5,889
VAT and other tax payable		163,754		174,553
Totals	$	169,370	$	180,442