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:
SCHEDULE
OF COMPOSITION OF LOSS BEFORE INCOME TAX
| | |
2026 | | |
2025 | |
| | |
For the six months ended June 30, | |
| | |
2026 | | |
2025 | |
|
| SCHEDULE OF INCOME TAX PROVISION |
The
components of the income tax provision are:
SCHEDULE OF INCOME TAX PROVISION
| | |
2026 | | |
2025 | |
| | |
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 | |
| 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:
SCHEDULE
OF DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES
| | |
| | | |
| | |
| | |
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 | |
|