INCOME TAXES

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 16. 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 and six months ended June 30, 2024 and 2023 were summarized as follows:

	For the Three Months Ended						For the Six Months Ended
	June 30, 2024			June 30, 2023			June 30, 2024			June 30, 2023
United States	$	(110,368	)	$	(604,427	)	$	(224,982	)	$	(777,444	)
Foreign		(168,151	)		(209,306	)		(373,747	)		(478,636	)
Total	$	(278,519	)	$	(813,733	)	$	(598,729	)	$	(1,256,080	)

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 June 30, 2024, 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 June 30, 2024, the Company had an unused net operating loss carryforward of approximately $18,229,018 for income tax purposes. This net operating loss carryforward may result in future income tax benefits of approximately $3,818,718, which will expire on various from 2024 through 2037 as follows:

2024 to 2028	$	2,279,147
2029 to 2033		892,375
2034 to 2037		217,937
Indefinitely		429,259
	$	3,818,718

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 June 30, 2024 and December 31, 2023 are as follows:

	As of June 30, 2024			As of December 31, 2023
Deferred tax liabilities	$	-		$	-
Deferred tax assets:		-			-
Effect of net operating loss carried forward		3,818,718			3,771,472
Less: valuation allowance		(3,818,718	)		(3,771,472	)
Net deferred tax assets	$	-		$	-

Movement of valuation allowance:

	As of June 30, 2024		As of December 31, 2023
At the beginning of the period/year	$	3,771,472	$	3,567,272
Additions/(Deductions)		47,246		204,200
At the end of the period/year	$	3,818,718	$	3,771,472