INCOME TAXES

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 13.                INCOME TAXES

Income is subject to taxation in various countries in which the Company and its subsidiaries operate or are incorporated. The loss before income taxes by geographical locations for the three months ended March 31, 2022 and 2021 were summarized as follows:

Schedule of (income) loss before income taxes by geographical locations
	For the Three Months Ended
	March 31, 2022			March 31, 2021
United States	$	(95,739	)	$	(23,631	)
Foreign		(177,102	)		(172,002	)
	$	(272,841	)	$	(195,633	)

Other than the United States, the Company is subject to taxation in Hong Kong and PRC. Under Hong Kong tax laws, deferred tax assets are recognized for tax loss carried forward to the extent that the realization of the related tax benefit through future taxable profits is probable. These tax losses do not expire under current Hong Kong tax legislation. Under PRC tax laws, tax losses may be carried forward for 5 years and no carry-back is allowed. At March 31, 2022, the Company does not have available tax losses in the Hong Kong and PRC to utilize for future taxable profits.

The Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was enacted on March 27, 2020.  There are several different provisions with the CARES Act that impact income taxes for corporations. The Company has evaluated the tax implications and believes these provisions did not have a material impact to the financial statements.

At March 31, 2022, the Company had an unused net operating loss carryforward of approximately $16,421,705 for income tax purposes. This net operating loss carryforward may result in future income tax benefits of approximately $3,448,559, which will expire on various from 2024 through 2037 as follows:

Schedule of operating loss carryforward
2024 to 2028	$	2,279,147
2029 to 2033		892,375
2034 to 2037		217,937
Indefinitely		122,088
	$	3,511,548

The realization of net operating loss carryforward is uncertain at this time, a valuation allowance in the same amount has been established. Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

Significant components of the Company’s deferred tax liabilities and assets of March 31, 2022 and December 31, 2021 are as follows:

Schedule of deferred tax liabilities and deferred tax assets
	As of March 31, 2022			As of December 31, 2021
Deferred tax liabilities	$	-		$	-
Deferred tax assets:
Effect of net operating loss carried forward		3,511,548			3,496,482
Less: valuation allowance		(3,511,548	)		(3,496,482	)
Net deferred tax assets	$	-		$	-

Movement of valuation allowance:

Schedule of movement of valuation allowance
	As of March 31, 2022		As of December 31, 2021
At the beginning of the period/year	$	3,496,482	$	3,443,596
Additions/(Deductions)		15,065		52,886
At the end of the period/year	$	3,511,548	$	3,496,482