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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net Income (loss) $ (6,919,993) $ 8,484,506
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 1,374,682 1,487,905
Provision for doubtful accounts, net 897,134 223,204
Deferred tax benefit (580,008) (279,680)
Loss from short term investment 158,220
Loss from disposal of property and equipment 32
Goodwill impairment loss 5,276,951 2,861,000
Intangible assets impairment loss 2,038,809
Gain from disposal of subsidiary (9,751)
Amortization of operating lease right-of-use assets 145,433 124,499
Amortization of debt discount 216,497
Change in fair value of warrant liability (123,750)
Change in fair value of business acquisition payable (502,190)
Change in operating assets and liabilities:    
Accounts receivables (958,720) 5,041,867
Prepaid services fees 255,109 (2,409,686)
Other receivables and prepaid expenses 142,626 (236,953)
Inventories 691,217 (641,688)
Prepaid expenses and deposits 18,697 10,563
Accounts payable 141,017 380,797
Deferred revenues (343,796) 1,048,245
Other payables and accrued liabilities (54,589) 281,784
Operating lease liabilities (137,126) (124,450)
Taxes payable (56,804) (693,806)
Net cash provided by operating activities 1,955,358 15,272,446
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of short term investments (16,323,138) (16,011,638)
Sale of short term investments 16,164,918 16,011,638
Purchases of cost method investment (89,205) (93,002)
Payment for Shanghai Guoyu acquisition (3,100,054)
Cash received from acquisition 302 25,054
Purchases of property and equipment (160,923) (36,010)
Loan to a third party 3,172,000 (3,279,857)
Net cash (used in) provided by investing activities 2,763,954 (6,483,869)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Advance to Parent (5,741,573)
Repayment to Parent (29,891,621) (4,485,078)
Proceeds from Parent 12,548,920 3,192,813
Deferred merger costs (556,567)
Proceeds from banking facility 1,182,468
Payments to banking facility (3,182,468)
Proceeds from loan - a related party 870,518
Payments to loan - a related party (870,518)
Cash received from recapitalization of MicroAlgo 20,661,356
Capital contribution from noncontrolling interests 51
Net cash used in financing activities (2,422,918) (3,848,781)
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS (2,269,919) 675,890
CHANGE IN CASH AND CASH EQUIVALENTS 26,475 5,615,686
CASH AND CASH EQUIVALENTS, beginning of year 42,719,795 37,104,109
CASH AND CASH EQUIVALENTS, end of year 42,746,270 42,719,795
SUPPLEMENTAL CASH FLOW INFORMATION:    
Cash paid for income tax 185,906 675,478
Cash paid for interest 2,992 17,536
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Deferred offering cost to offset proceed from recapitalization 548,586
Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 110,352 $ 96,398