v3.26.3
INCOME TAXES (Tables)
6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
SCHEDULE OF COMPOSITION OF LOSS BEFORE INCOME TAX

Composition of loss before income tax for the periods presented by jurisdictions is as follows:

 

       
   For the six months ended June 30, 
   2026   2025 
Chinese Mainland  $(898,382)  $310,715 
Other jurisdictions   (255,181)   (2,762,059)
Total  $(1,153,563)  $(2,451,344)
SCHEDULE OF INCOME TAX PROVISION

The components of the income tax provision are:

 

       
   For the six months ended June 30, 
   2026   2025 
Current income tax expense  $-   $170,825 
Deferred income tax benefit   (75,118)   - 
Total  $(75,118)  $170,825 
SCHEDULE OF INCOME TAX RECONCILIATIONS

The reconciliations of the statutory income tax rate and the Company’s effective income tax rate are as follows:

 

SCHEDULE OF INCOME TAX RECONCILIATIONS

                   
   For the six months ended June 30, 
   2026   2025 
   Amount   Percent   Amount   Percent 
Loss before income taxes   (1,153,563)        (2,451,344)     
Income tax expense computed at PRC statutory income tax rate of 25%   (288,391)   25.0%   (612,835)   25.0%
Foreign tax effects   62,991    (5.5)%   690,514    (28.2)%
Nontaxable or nondeductible items   1,142    (0.1)%   238,417    (9.7)%
Other adjustments                    
Tax incentives relating to R&D expenditures   -    0.0%   (188,480)   7.7%
Effect of preferential tax of PRC subsidiary   107,236    (9.3)%   37,849    (1.5)%
Effect of deferred income tax arising from operating lease   (30,752)   2.7%   -    0.0%
Changes in valuation allowance   72,656    (6.3)%   5,360    (0.2)%
Income tax (benefit)/expense   (75,118)   6.5%   170,825    (6.9)%
SCHEDULE OF DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES

The Company’s deferred tax assets and liabilities as of June 30, 2026 and December 31, 2025 are attributable to the following:

  

         
   As of 
   June 30, 2026   December 31, 2025 
Deferred tax assets:          
Lease liability  $247,048   $245,571 
Net operating loss carryforwards-PRC   269,395    156,031 
Valuation allowance   (222,732)   (154,293)
Total deferred tax assets   293,711    247,309 
           
Deferred tax liabilities          
Right-of-use assets   118,793    151,308 
Total deferred tax liabilities   118,793    151,308 
           
Net deferred tax assets   182,882    96,001 
Net deferred tax liabilities   7,964    - 
SCHEDULE OF MOVEMENT OF VALUATION ALLOWANCE PROVISION FOR DEFERRED TAX ASSETS

The movement of valuation allowance provision for deferred tax assets is as follows:

 

SCHEDULE OF MOVEMENT OF VALUATION ALLOWANCE PROVISION FOR DEFERRED TAX ASSETS 

         
   As of 
   June 30, 2026   December 31, 2025 
Balance as of January 1,   154,293    261,846 
Current year addition   72,656    147,310 
Write-off   (9,656)   (263,106)
Exchange rate effect   5,439    8,243 
Balance as of June 30 and December 31,   222,732    154,293