INTANGIBLE ASSETS, NET

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS, NET

NOTE 7. INTANGIBLE ASSETS, NET

Intangible Assets, net as of June 30, 2023 and December 31, 2022 were as follows:

	As of June 30, 2023											As of December 31, 2022
	Ningbo (Note 1)			Tianjin (Note 2)		Chengdu (Note 3)			Total			Total
Cost	$	333,785		$	-	$	622,578		$	956,363		$	333,785
Less: accumulated amortization		(83,446	)		-		(103,763	)		(187,209	)		(27,815	)
Total	$	250,339		$	-	$	518,815		$	769,154		$	305,970

Note:

1) Intangible Assets of Ningbo are acquired advertising rights fee contracts and the Company measured the intangible assets acquired based on the fair value of the consideration given. The Company granted 606,881 shares of the Company’s common stock for the acquisition of advertising rights fee contracts. In connection with this stock grant, the Company measured the Company’s shares at fair value of $0.55 per share and recognized the amount of $333,785 as the cost of intangible assets.

2) Intangible Assets of Tianjin are acquired advertising rights fee contracts and the Company measured the intangible assets acquired based on the fair value of the consideration given. The Company granted 933,964 shares of the Company’s common stock for the acquisition of advertising rights fee contracts. In connection with this stock grant, the Company measured the Company’s shares at fair value of $0.55 per share and recognized the amount of $513,680 as the cost of intangible assets. On May 16, 2023, the Company early terminated the advertising rights fee contracts in Tianjin and 933,964 shares issued will be cancelled, the intangible asset was written off and loss on written off of intangible assets of $449,473 was recorded.

3) Intangible Assets of Chengdu are acquired advertising rights fee contracts and the Company measured the intangible assets acquired based on the fair value of the consideration given. The Company granted 1,131,960 shares of the Company’s common stock for the acquisition of advertising rights fee contracts. In connection with this stock grant, the Company measured the Company’s shares at fair value of $0.55 per share and recognized the amount of $622,578 as the cost of intangible assets.

The Company recorded amortization expenses for the three and six months ended June 30, 2023, amounted to $101,098 and $223,601 respectively and no amortization expenses recorded for the three and six months ended June 30, 2022. The Company recorded loss on written off of intangible asset for the three and six months ended June 30, 2023, amounted to $449,473.

The estimated amortization is as follows:

	Estimated amortization expense
Twelve Months Ending December 31,
2023	$	159,393
2024		318,789
2025		290,972
2026		-
Thereafter		-
Total	$	769,154