Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 24, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Interactive Data Current | Yes | ||
ICFR Auditor Attestation Flag | false | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Information [Line Items] | |||
Entity Registrant Name | China Pharma Holdings, Inc. | ||
Entity Central Index Key | 0001106644 | ||
Entity File Number | 001-34471 | ||
Entity Tax Identification Number | 73-1564807 | ||
Entity Incorporation, State or Country Code | NV | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 3,896,941 | ||
Entity Contact Personnel [Line Items] | |||
Entity Address, Address Line One | Second Floor, No. 17, Jinpan Road | ||
Entity Address, Address Line Two | Haikou | ||
Entity Address, City or Town | Hainan Province | ||
Entity Address, Country | CN | ||
Entity Address, Postal Zip Code | 570216 | ||
Entity Phone Fax Numbers [Line Items] | |||
City Area Code | (011) | ||
Local Phone Number | 86 898-6681-1730 | ||
Entity Listings [Line Items] | |||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | CPHI | ||
Security Exchange Name | NYSE | ||
Entity Common Stock, Shares Outstanding | 14,816,865 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor [Table] | |
Auditor Name | BF Borgers CPA PC |
Auditor Firm ID | 5041 |
Auditor Location | Lakewood, CO |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 1,423,838 | $ 2,029,971 |
Banker’s acceptances | 65,915 | 13,784 |
Trade accounts receivable, less allowance for doubtful accounts of $13,786,074 and $16,739,527, respectively | 504,448 | 421,531 |
Other receivables, less allowance for doubtful accounts of $27,017 and $27,149, respectively | 157,944 | 29,139 |
Advances to suppliers | 2,013 | 444,637 |
Inventory | 3,732,517 | 2,947,787 |
Prepaid expenses | 110,258 | 77,697 |
Total Current Assets | 5,996,933 | 5,964,546 |
Property, plant and equipment, net | 7,100,425 | 9,973,065 |
Operating lease right of use asset | 116,610 | 39,046 |
Intangible assets, net | 3,255,232 | 1,807,486 |
TOTAL ASSETS | 16,469,200 | 17,784,143 |
Current Liabilities: | ||
Trade accounts payable | 966,420 | 667,082 |
Accrued expenses | 298,829 | 404,807 |
Other payables | 2,282,692 | 2,390,063 |
Advances from customers | 90,507 | 520,295 |
Operating lease liability | 77,727 | 40,445 |
Current portion of lines of credit | 1,030,680 | 2,440,915 |
Convertible, redeemable note payable, net of issue discount | 940,000 | 3,800,000 |
Total Current Liabilities | 6,820,664 | 12,739,447 |
Non-current Liabilities: | ||
Operating lease liability, net of current portion | 39,910 | |
Lines of credit, net of current portion | 1,411,891 | |
Deferred tax liability | 742,114 | 754,698 |
Total Liabilities | 9,014,579 | 13,494,145 |
Commitments and Contingencies (Note 9) | ||
Stockholders’ Equity: | ||
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued or outstanding | ||
Common stock, $0.001 par value; 500,000,000 shares authorized; 10,625,788 shares and 1,498,180 shares issued and outstanding, respectively | 10,625 | 1,498 |
Additional paid-in capital | 35,282,256 | 28,926,931 |
Retained deficit | (39,290,314) | (36,211,496) |
Accumulated other comprehensive income | 11,452,054 | 11,573,065 |
Total Stockholders’ Equity | 7,454,621 | 4,289,998 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 16,469,200 | 17,784,143 |
Related Party | ||
Current Liabilities: | ||
Borrowings from related parties | $ 1,133,809 | $ 2,475,840 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, less allowance for doubtful accounts (in Dollars) | $ 13,786,074 | $ 16,739,527 |
Other receivables, allowance for doubtful accounts (in Dollars) | $ 27,017 | $ 27,149 |
Preferred stock par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 10,625,788 | 1,498,180 |
Common stock, shares outstanding | 10,625,788 | 1,498,180 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Revenue | $ 7,011,299 | $ 8,104,092 |
Cost of revenue | 7,292,384 | 8,598,008 |
Gross (loss) profit | (281,085) | (493,916) |
Operating expenses: | ||
Selling expenses | 780,328 | 1,069,785 |
General and administrative expenses | 1,466,084 | 1,893,269 |
Research and development expenses | 240,080 | 185,858 |
Bad debt benefit | (15,757) | (93,851) |
Total operating expenses | 2,470,735 | 3,055,061 |
Loss from operations | (2,751,820) | (3,548,977) |
Other income (expense): | ||
Interest income | 6,602 | 10,755 |
Interest expense | (333,600) | (434,619) |
Net other expense | (326,998) | (423,864) |
Loss before income taxes | (3,078,818) | (3,972,841) |
Income tax expense | ||
Net loss | (3,078,818) | (3,972,841) |
Other comprehensive income (loss) - foreign currency translation adjustment | (121,011) | (990,764) |
Comprehensive loss | $ (3,199,829) | $ (4,963,605) |
Loss per share: | ||
Basic (in Dollars per share) | $ (0.91) | $ (3.78) |
Weighted average shares outstanding (in Shares) | 3,383,573 | 1,051,371 |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive Loss (Parentheticals) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Diluted | $ (0.91) | $ (3.78) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) | Common Stock | Additional Paid-in Capital | Retained Deficit | Accumulated Other Comprehensive Income | Total |
Balance at Dec. 31, 2021 | $ 947 | $ 25,691,760 | $ (32,238,655) | $ 12,563,829 | $ 6,017,881 |
Balance (in Shares) at Dec. 31, 2021 | 946,791 | ||||
Issuance of common stock for intangible assets | $ 310 | 1,707,142 | 1,707,452 | ||
Issuance of common stock for intangible assets (in Shares) | 310,446 | ||||
Stock option compensation | 36,270 | 36,270 | |||
Issuance of common stock for services | $ 6 | 41,994 | 42,000 | ||
Issuance of common stock for services (in Shares) | 6,000 | ||||
Conversions of note payable to common stock | $ 235 | 1,449,765 | 1,450,000 | ||
Conversions of note payable to common stock (in Shares) | 234,943 | ||||
Net loss for the year | (3,972,841) | (3,972,841) | |||
Foreign currency translation adjustment | (990,764) | (990,764) | |||
Balance at Dec. 31, 2022 | $ 1,498 | 28,926,931 | (36,211,496) | 11,573,065 | $ 4,289,998 |
Balance (in Shares) at Dec. 31, 2022 | 1,498,180 | 1,498,180 | |||
Issuance of common stock for intangible assets | $ 3,000 | 1,647,000 | $ 1,650,000 | ||
Issuance of common stock for intangible assets (in Shares) | 3,000,000 | ||||
Conversion of related party note and interest | $ 2,751 | 1,851,701 | 1,854,452 | ||
Conversion of related party note and interest (in Shares) | 2,751,412 | ||||
Share rounding due to reverse split | $ 14 | (14) | |||
Share rounding due to reverse split (in Shares) | 14,085 | ||||
Conversions of note payable to common stock | $ 3,362 | 2,856,638 | 2,860,000 | ||
Conversions of note payable to common stock (in Shares) | 3,362,111 | ||||
Net loss for the year | (3,078,818) | (3,078,818) | |||
Foreign currency translation adjustment | (121,011) | (121,011) | |||
Balance at Dec. 31, 2023 | $ 10,625 | $ 35,282,256 | $ (39,290,314) | $ 11,452,054 | $ 7,454,621 |
Balance (in Shares) at Dec. 31, 2023 | 10,625,788 | 10,625,788 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (3,078,818) | $ (3,972,841) |
Depreciation and amortization | 2,753,653 | 2,700,533 |
Bad debt (benefit) expense | (15,757) | (93,851) |
Stock and stock option compensation | 78,270 | |
Loss on disposal of property, plant & equipment | 45,385 | |
Changes in assets and liabilities: | ||
Trade accounts and other receivables | (938,021) | (170,194) |
Advances to suppliers | 437,431 | (459,959) |
Inventory | (25,032) | 689,104 |
Trade accounts payable | 312,045 | (187,734) |
Other payables and accrued expenses | 257,778 | 692,190 |
Advances from customers | (423,261) | 339,659 |
Prepaid expenses | (25,089) | (24,722) |
Net Cash Used in Operating Activities | (699,686) | (409,545) |
Cash Flows from Investing Activities: | ||
Purchases of property and equipment | (11,517) | (401,964) |
Net Cash Used in Investing Activities | (11,517) | (401,964) |
Cash Flows from Financing Activities: | ||
Payments of line of credit | (1,490,049) | (2,140,921) |
Proceeds from lines of credit | 1,532,622 | 564,965 |
Borrowings and interest from related party | 30,572 | 28,962 |
Repayments to related party | (223,013) | |
Net Cash (Used In) Provided By Financing Activities | 73,145 | (1,770,007) |
Effect of Exchange Rate Changes on Cash | 31,925 | (247,573) |
Net Increase in Cash, Cash Equivalents and Restricted Cash | (606,133) | (2,829,089) |
Cash and Cash Equivalents at Beginning of Period | 2,029,971 | 4,859,060 |
Cash, Cash Equivalents and Restricted Cash at End of Period | 1,423,838 | 2,029,971 |
Supplemental Cash Flow Information: | ||
Cash paid for income taxes | ||
Cash paid for interest | 92,439 | 141,797 |
Supplemental Noncash Investing and Financing Activities: | ||
Accounts receivable collected with banker’s acceptances | 865,733 | 503,383 |
Inventory purchased with banker’s acceptances | 813,105 | 575,713 |
Right-of-use assets obtained in exchange for operating lease obligations | 156,273 | |
Common stock issued for intangible assets | 1,650,000 | 1,707,452 |
Conversion of related party note and interest to common stock | $ 1,854,542 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Significant Accounting Policies [Abstract] | |
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 – ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Organization and Nature of Operations – Onny acquired 100% of the ownership in Helpson on May 25, 2005, by entering into an Equity Transfer Agreement with Helpson’s three former shareholders. The transaction was approved by the Commercial Bureau of Hainan Province on June 12, 2005 and Helpson received the Certificate of Approval for Establishment of Enterprises with Foreign Investment in the PRC on the same day. Helpson received its business license evidencing its Wholly Foreign Owned Enterprise (“WFOE”) status on June 21, 2005. Helpson is principally engaged in the development, manufacture and marketing of pharmaceutical products for human use in connection with a variety of high-incidence and high-mortality diseases and medical conditions prevalent in the PRC. All of its operations are conducted in the PRC, where its manufacturing facilities are located. Helpson manufactures pharmaceutical products in the form of dry powder injectables, liquid injectables, tablets, capsules, and cephalosporin oral solutions. The majority of its pharmaceutical products are sold on a prescription basis and all have been approved for at least one or more therapeutic indications by the National Medical Products Administration (the “NMPA”, formerly China Food and Drug Administration, or CFDA) based upon demonstrated safety and efficacy. Liquidity and Going Concern As of December 31, 2023, the Company had cash and cash equivalents of $1.4 million and an accumulated deficit of $39.3 million. The Company’s Chairperson, Chief Executive Officer and Interim Chief Financial Officer (“Chairperson Li”) has advanced an aggregate of $1,133,809 as of December 31, 2023 to provide working capital and enabled the Company to make the required payments related to its former construction loan facility. The Company anticipates operating losses to continue for the foreseeable future due to, among other things, costs related to the production of its existing products, debt service costs and costs of selling and administrative costs. These conditions raise substantial doubt about its ability to continue as a going concern within one year after the date that the financial statements are issued. To alleviate the conditions that raise substantial doubt about the Company’s ability to continue as a going concern, management plans to enhance the sales model of advance payment, and further strengthen its collection of accounts receivable. Further, the Company is currently exploring strategic alternatives to accelerate the launch of nutrition products. In addition, management believes that the Company’s existing fixed assets can serve as collateral to support additional bank loans. While the current plans will allow the Company to fund its operations in the next twelve months, there can be no assurance that the Company will be able to achieve its future strategic alternatives raising substantial doubt about its ability to continue as a going concern. Pursuant to the requirements of Accounting Standards Codification (ASC) 205-40, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern Under ASC 205-40, the strategic alternatives being pursued by the Company cannot be considered probable at this time because none of the Company’s current plans have been finalized at the time of the issuance of these financial statements and the implementation of any such plan is not probable of being effectively implemented as none of the plans are entirely within the Company’s control. Accordingly, substantial doubt is deemed to exist about the Company’s ability to continue as a going concern within one year after the date these financial statements are issued. The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of the uncertainties described above. Reverse Stock Split Consolidation and Basis of Presentation Helpson’s functional currency is the Chinese Renminbi. Helpson’s revenue and expenses are translated into United States dollars at the average exchange rate for the period. Assets and liabilities are translated at the exchange rate as of the end of the reporting period. Gains or losses from translating Helpson’s financial statements are included in accumulated other comprehensive income, which is a component of stockholders’ equity. Gains and losses arising from transactions denominated in a currency other than the functional currency of the entity that is party to the transaction are included in the results of operations. Accounting Estimates Cash and Cash Equivalents Trade Accounts Receivable and Allowance for Doubtful Accounts – Trade accounts receivable that have been fully allowed for and determined to be uncollectible are charged against the allowance in the period the determination is made. The Company charged off uncollectible trade accounts receivable balances in the amount of $0 and $0 against the allowance for the years ended December 31, 2023 and 2022, respectively. Customer balances outstanding for more than one year are allowed for at a greater rate than more current balances when calculating the allowance for doubtful accounts. Advances to Suppliers and Advances from Customers Inventory – Leases – At lease commencement, the Company records a lease liability based on the present value of lease payments over the expected lease term including any options to extend the lease that the Company is reasonably certain to exercise. The Company calculates the present value of lease payments using an incremental borrowing rate as the Company’s leases do not provide an implicit interest rate. The Company’s incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. At the lease commencement date, the Company records a corresponding right-of-use lease asset based on the lease liability, adjusted for any lease incentives received and any initial direct costs paid to the lessor prior to the lease commencement date. The Company may enter into leases with an initial term of 12 months or less (“Short-Term Leases”). For any Short-Term Leases, the Company records the rent expense on a straight-line basis and does not record the leases on the balance sheet. After lease commencement, the Company measures its leases as follows: (i) the lease liability based on the present value of the remaining lease payments using the discount rate determined at lease commencement and (ii) the right-of-use lease asset based on the remeasured lease liability, adjusted for any unamortized lease incentives received, any unamortized initial direct costs and the cumulative difference between rent expense and amounts paid under the lease agreement. Any lease incentives received and any initial direct costs are amortized on a straight-line basis over the expected lease term. Rent expense is recorded on a straight-line basis over the expected lease term. Valuation of Long-Lived Assets Property, Plant and Equipment Revenue Recognition The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. The Company’s contracts are fixed price and reflect standalone pricing for each item. Due to the nature of the products sold, there are no returns. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon buyer’s designated carrier or the buyer picks up the goods at the Company’s warehouse. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all product revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adoption rules. The Company has received advance deposits for orders less than one year. These advances total $90,507 and $520,295 and are recorded as a liability on the accompanying balance sheet as “Advances from customers” as of December 31, 2023 and 2022, respectively. The subsequently recognized revenue was $81,456as of March 29, 2024. Cost of Revenues Research and Development Credit Risk The Company has its cash in bank deposits primarily at state owned banks located in the PRC. Historically, deposits in PRC banks have been secured due to the state policy of protecting depositors’ interests. The PRC promulgated a Bankruptcy Law in August 2006, effective June 1, 2007, which contains provisions for the implementation of measures for the bankruptcy of PRC banks. Company bank accounts in China are not subject to a certain insurance coverage and will follow the provisions set forth in the PRC Bankruptcy Law should any bank where the Company has accounts declare bankruptcy. Interest Rate Risk Basic and Diluted Loss per Common Share As of December 31, 2023, the Company has potentially dilutive common shares related to the option to purchase 13,300 shares of common stock and the 6,267 shares issuable upon conversion of the Convertible Note Payable are excluded from the computation of diluted net loss per share for all periods presented because the effect is anti-dilutive due to net losses of the Company. Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326) From time to time, the FASB or other standards setting bodies issue new accounting pronouncements. Updates to the FASB ASC are communicated through issuance of ASUs. Unless otherwise discussed, the Company believes that the recently issued guidance, whether adopted or to be adopted in the future, is not expected to have a material impact on its consolidated financial statements upon adoption. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2023 | |
Inventory [Abstract] | |
INVENTORY | NOTE 2 – INVENTORY Inventory consisted of the following: December 31, December 31, 2023 2022 Raw materials 1,849,213 1,839,641 Work in process 413,597 557,146 Finished goods 1,469,707 551,000 Total Inventory $ 3,732,517 $ 2,947,787 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 3 – PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following: December 31, December 31, 2023 2022 Permit of land use $ 397,684 $ 404,427 Building 9,234,836 9,391,433 Plant, machinery and equipment 27,170,123 27,780,585 Motor vehicle 303,697 438,138 Office equipment 388,740 308,847 Total 37,495,080 38,323,430 Less: accumulated depreciation (30,394,655 ) (28,350,365 ) Property, plant and equipment, net $ 7,100,425 $ 9,973,065 Depreciation is computed on a straight-line basis over the estimated useful lives of the assets as follows: Asset Life - years Permit of land use 40 - 70 Building 20 - 49 Plant, machinery and equipment 5 - 10 Motor vehicle 5 - 10 Office equipment 3-5 Depreciation relating to office equipment was included in general and administrative expenses, while all other depreciation was included in cost of revenue. Depreciation expense was $2,529,858 and $2,663,975 for the years ended December 31, 2023 and 2022, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets [Abstract] | |
INTANGIBLE ASSETS | NOTE 4 - INTANGIBLE ASSETS Intangible assets represent the cost of medical formulas approved for production by the NMPA, the intellectual property acquired from Chengdu Bonier Medical Technology Development Co., Ltd. (“Bonier Agreement”) and the Technology Transfer Agreement (the “ Agreement Approved medical formulas are amortized from the date NMPA approval is obtained over their individually identifiable estimated useful life, which range from ten to thirteen years. It is at least reasonably possible that a change in the estimated useful lives of the medical formulas could occur in the near term due to changes in the demand for the drugs and medicines produced from these medical formulas. Amortization expense relating to intangible assets was $223,796 and $36,558 for the years ended December 31, 2023 and 2022, respectively which was included in the general and administrative expenses. Medical formulas typically do not have a residual value at the end of their amortization period. On December 15, 2023, the Company entered into a Technology Transfer Agreement (the “Agreement”) with Tao Liu (the “Transferor”). The Transferor owns an invention patent of a drug combination for the treatment of chronic obstructive pulmonary disease (the “Invention Patent”). Pursuant to the Agreement, the Transferor will transfer the ownership of the Invention Patent to Helpson. The Transferor or its designated third party shall provide relevant technical services in Haikou, which include but are not limited to product research and development, writing of registration materials, registration application and other technical services. Effective December 15, 2023 China Pharma issued 3,000,000 shares of its common stock valued at $1,650,000 based on the closing market price of its common stock of $0.55 per share at that date. The Company recorded the amount as Intangible assets on the accompanying balance sheet at December 31, 2023. The value of the intangible asset will be amortized over its remaining useful life of approximately 14.8 years. During the ten years after the product launches to the market, if and only if the product generates profit, Helpson shall pay 15% of the net profit of the sales in cash on an annual basis to the Transferor. On November 28, 2022, the Company entered into a Technology Transfer Contract (the “Bonier Agreement”) with Chengdu Bonier Medical Technology Development Co., Ltd (“Bonier”). Bonier owns the know-how of a technical invention and creation of an ophthalmic oxygen enriched atomization therapeutic instrument, which has obtained a utility model patent (the “Utility Model Patent”) and applied for an invention patent (the “Invention Patent”) at the same time. Pursuant to the Agreement, Bonier will transfer the ownership of the Utility Model Patent of the technical invention and the Invention Patent application right of the invention to Helpson. Bonier or its designated third party shall provide relevant technical services in Haikou, which include but are not limited to product research and development, writing of registration materials, registration application and other technical services, with a term of ten years. Effective November 28, 2022 the Company issued 310,446 share of its common stock valued at $1,707,452 based on the closing market price of its common stock of $5.50 per share at that date. The Company recorded the amount as Intangible assets on the accompanying balance sheet at December 31, 2022. The value of the intangible asset will be amortized over its remaining useful life of approximately 9.7 years. The Company will pay a service fee of 15% of the net profit of the corresponding product sales revenue, which will be paid in cash annually after it launches to the market, contingent on the successful authorization of the above mentioned Invention Patent. The Company evaluates each approved medical formula for impairment at the date of NMPA approval, when indications of impairment are present and also at the date of each financial statement. The Company’s evaluation is based on an estimated undiscounted net cash flow model, which considers currently available market data for the related drug and the Company’s estimated market share. If the carrying value of the medical formula exceeds the estimated future net cash flows, an impairment loss is recognized for the excess of the carrying value over the fair value of the medical formula, which is determined by the estimated discounted future net cash flows. No impairment loss was recognized during the years ended December 31, 2023 and 2022, respectively. Intangible assets consisted of the following: December 31, December 31, 2023 2022 NMPA approved medical formulas $ 4,766,353 $ 4,847,176 Technology from Bonier 1,726,497 1,707,452 Invention Patent 1,653,028 - Accumulated amortization (4,890,646 ) (4,747,142 ) Net carrying amount $ 3,255,232 $ 1,807,486 The estimated aggregate annual amortization expense for each of the next five years and thereafter is as follows: Year Amount 2024 327,050 2025 321,235 2026 292,156 2027 292,156 2028 292,156 Thereafter 1,730,479 Total $ 3,255,232 |
Other Payables
Other Payables | 12 Months Ended |
Dec. 31, 2023 | |
Other Payables [Abstract] | |
OTHER PAYABLES | NOTE 5 – OTHER PAYABLES Other Payables consisted of the following: December 31, December 31, 2023 2022 Compensation payable to officer 1,243,506 951,506 Compensation and interest to related parties $ 12,000 $ 372,578 Business taxes and other 1,027,186 1,065,979 Total Other Payables $ 2,282,692 $ 2,390,063 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 6 – RELATED PARTY TRANSACTIONS A member of the Company’s board of directors (“Board”) had previously advanced to the Company an aggregate amount of $1,354,567 as of December 31, 2022 which is recorded as “Other payables – related parties” on the accompanying condensed consolidated balance sheets. The advances bore interest at a rate of 1.0% per year. Total interest expense years ended December 31, 2023 and 2022 was $6,773 and $13,546, respectively. Compensation and interest payable to the board member is included in Other payables in the accompanying condensed consolidated balance sheet totaling $12,000 and $372,578 as of December 31, 2023 and 2022, respectively. On August 23, 2023, the director entered into a certain debt transfer agreement with Chairperson Li, pursuant to which the rights to collect a total amount of $1,854,452 were assigned to Chairperson Li. On September 28, 2023, Chairperson Li entered into a certain loan settlement agreement, pursuant to which both parties agreed to convert the aggregate amount of $1,854,452 owed by the Company into 2,751,412 shares of restricted common stock of the Company. Such issuance was completed on September 29, 2023. The Company received advances totaling $2,928 and $0 and repaid $0 and $223,013 of the advances during the years ended December 31, 2023 and 2022, respectively from its Chairperson, Chief Executive Officer and Interim Chief Financial Officer. Total amounts owed were $1,121,273 and $1,425,123 and are recorded as Other payables – related parties on the accompanying condensed consolidated balance sheets as of December 31, 2021 and 2020, respectively. On July 8, 2019 the Company entered into a loan agreement in exchange for cash of RMB 4,770,000 ($738,379) with its Chairperson, Chief Executive Officer and Interim Chief Financial Officer. The loan bears interest at a rate of 4.35% and is payable within one year of the loan agreement. The due date of the loan agreement has been extended annually on identical terms, and is due July 9, 2023. Total interest expense related to the loan for the years ended December 31, 2023 and 2022 was $27,644 and $28,962, respectively. Compensation payable to the Chairperson, Chief Executive Officer and Interim Chief Financial Officer is included in Other payables in the accompanying consolidated balance sheet totaling $1,243,506 and $951,506 as of December 31, 2023 and 2022, respectively. |
Lines of Credit and Constructio
Lines of Credit and Construction Loan Facility | 12 Months Ended |
Dec. 31, 2023 | |
Lines of Credit and Construction Loan Facility [Abstract] | |
LINES OF CREDIT AND CONSTRUCTION LOAN FACILITY | NOTE 7 – LINES OF CREDIT AND CONSTRUCTION LOAN FACILITY Lines of Credit On June 25, 2021 the Company entered into a loan with Bank of Communications bearing an interest rate of 4.17%. The Company paid all principal and interest on June 21, 2022 and on June 22, 2022 entered into a new loan for the same principal amount bearing interest at 4.17% and due December 21, 2022. On December 21, 2022 the Company repaid the loan in full and entered into a new line of credit for an aggregate amount of RMB 7,300,000 (approximately $1.0 million) with interest payable monthly at a rate of 3.9%. The Company received an advance on the line of credit in the amount of RMB 3,800,000 (approximately $0.56 million) on December 30, 2022. On February 24, 2023 the Company received an advance on the line in the amount of RMB 3,500,000 (approximately $0.51 million). The Company has no further availability on this line of credit. The line of credit was payable on December 20, 2023. The line of credit was paid in full on December 15, 2023. On December 20, 2023, the Company received a new line of credit in the amount of RMB 3,800,000 and an interest rate of 3.9% and is due December 15, 2024. The Company obtained a line of credit of RMB 3,200,000 (approximately $0.5 million) from China CITIC Bank in September 2020 and obtained an advance of RMB 2,343,340 (approximately $0.3 million), and the remaining of RMB 856,660 (approximately $0.1 million) in October 2020 under this line. The loan bears interest at the rate of 4.50% per annum. In September, 2021 the Company repaid the line of credit in full. Also in September, 2021 the Company entered into a new line a credit in the amount of RMB 3,200,000 (approximately $0.8 million). The loan bears interest at the rate of 4.50% per annum. The line of credit was due on September 2, 2022. The line of credit was paid in full on September 6, 2022. On September 9, 2022, the Company received a new line of credit in the same amount. The loan bears interest at a rate of 4.5% and is due on September 7, 2023 On September 18, 2021 the Company obtained a line of credit for RMB 10,000,000 (approximately $1.54 million) with Bank of China. The loan bears interest at the rate of 3.85% per annum. The line of credit was paid in full on the due date of September 18, 2022. On September 30, 2022 the Company received a new line of credit in the same amount. The loan bears interest at the rate of 3.45% and was due September 28, 2023. On September 22, 2023 the Company repaid this note in full. On September 25, 2023 the Company entered into a three-year revolving loan and received proceeds of RMB 10,000,000 (approximately $1.4 million). The interest rate for the loan is 3.35% for the first twelve months of the loan and adjusts based on the latest one-year loan market quotation rate less 10 basis points as published by the China National Interbank Funding Center on the working day prior to each twelve month anniversary of the loan. The loan is due on September 24, 2026. Principal payments required for the remaining terms of the lines of credit as of December 31, 2023 are as follows: Year Lines of 2024 $ 2,442,571 $ 2,442,571 In April 2020, the Company obtained a line of credit from Postal Savings Bank of China for an aggregate amount of RMB 10,000,000 (approximately $1.4 million), of which RMB 5,000,000 (approximately $0.7 million) was advanced in April 2020, and RMB 3,000,000 (approximately $0.4 million) was advanced in July 2020. The loan bore interest at a rate of 4.25% per annum. Advances on the line of credit were due two years from the date of the advance. A third party company had guaranteed the loan as being a second priority creditor in the collateral in certain land use rights and buildings next to the creditor of the construction loan facility as discussed above. In addition, the Company’s Chief Executive Officer and Chair of the Board personally guaranteed the line of credit. Total interest expense under this facility for the years ended December 31, 2022 was $12,063. The Company repaid the remaining RMB 5,900,000 (approximately $0.85) during the year ended December 31, 2022 as per the repayment schedule in full satisfaction of the line of credit. Fair Value of Lines of Credit |
Convertible Note Payable
Convertible Note Payable | 12 Months Ended |
Dec. 31, 2023 | |
Convertible Note Payable [Abstract] | |
CONVERTIBLE NOTE PAYABLE | NOTE 8 – CONVERTIBLE NOTE PAYABLE On November 17, 2021, China Pharma entered into a Securities Purchase Agreement (the “Agreement”) pursuant to which the Company issued an unsecured convertible promissory note (the “Note”) to an institutional accredited investor Streeterville Capital, LLC (the “Investor”). The transaction contemplated under the Agreement was closed on November 19, 2021. The Note matured on February 17, 2023. On April 13, 2023 China Pharma entered into an Amendment (the “Amendment”) with the Investor which extended the maturity date of the Convertible Note Payable to May 19, 2024. As consideration for the extension, China Pharma agreed to an extension fee of $65,639, representing 2.0% of the balance of the Note and accrued interest on the date of the Amendment. The amount was satisfied by increasing the Note balance by the amount of the extension fee. The Company recorded this as additional interest expense during the second quarter of 2023. In addition, China Pharma decreased the price at which the Investor can convert the balance from 85% to 82% of the lowest daily volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion, and assumed an additional obligation to redeem a portion of the outstanding balance of the Note monthly or be subject to additional penalty fees. The Note was originally convertible into 70,000 shares of China Pharma’s common stock at a price of $75.00 per share through April 19, 2022. Thereafter, the Note was convertible into 35,000 shares at a price of $150.00 per share. As of December 31, 2023 the Note is convertible into 6,267 shares of common stock. Interest accrues on the outstanding balance of the Note at 5% per annum compounded daily. Upon the occurrence of an Event of Default as defined in the Note, interest accrues at the lesser of 22% per annum or the maximum rate permitted by applicable law. In addition, upon any Event of Default, the Investor may accelerate the outstanding balance payable under the Note, which will increase automatically upon such acceleration by 15% or 5%, depending on the nature of the Event of Default. Pursuant to the terms of the Agreement and the Note, the Company must obtain Investor’s consent for certain fundamental transactions such as consolidation, merger with or into another entity (excerpt for a reincorporation merger), disposition of substantial assets, change of control, reorganization or recapitalization. Any occurrence of a fundamental transaction without Investor’s prior written consent will be deemed an Event of Default. Investor may redeem all or any part the outstanding balance of the Note, subject to $500,000 per calendar month, at any time after one hundred twenty-one (121) days from the Purchase Price Date, as defined in the Note, upon three trading days’ notice, in cash or converting into shares of China Pharma’s common stock, at a price equal to 82% multiplied by the lowest daily volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion, subject to certain adjustments and ownership limitations specified in the Note. The Note provides for liquidated damages upon failure to comply with any of the terms or provisions of the Note. The Company may prepay the outstanding balance of the Note with the Investor’s consent. At inception, the Note was redeemable into 176,229 shares based on the lowest volume weighted average price of $29.79085 on the inception date of November 19, 2021. As of December 31, 2023, the Note was redeemable into 2,159,964 shares of common stock based on 82% of the lowest volume weighted average price of $0.436 on that date. Total interest expense for the years ended December 31, 2023 and 2022 was $206,744 and $250,314, respectively. 2023 Redemptions On January 5, 2023 the Investor delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $3.815, which was 85% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, China Pharma issued a total of 39,319 shares of common stock to the Investor on January 6, 2023. On January 18, 2023 the Investor delivered its notice of redemption for $250,000 of the Note and related interest at the conversion price of $3.815, which was 85% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, China Pharma issued a total of 65,531 shares of common stock to the Investor on January 19, 2023. On March 2, 2023 the Investor delivered its notice of redemption for $250,000 of the Note and related interest at the conversion price of $2.875, which was 85% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, China Pharma issued a total of 86,957 shares of common stock to the Investor on March 8, 2023. On April 7, 2023 the Investor delivered its notice of redemption for $200,000 of the Note and related interest at the conversion price of $1.404, which was 85% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, China Pharma issued a total of 142,450 shares of common stock to the Investor on April 13, 2023. On May 1, 2023 the Investor delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $1.322, which was 85% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, China Pharma issued a total of 113,465 shares of common stock to the Investor on May 3, 2023. On May 24, 2023 the Investor delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $1.2435, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, China Pharma issued a total of 120,628 shares of common stock to the Investor on May 25, 2023. On June 6, 2023 the Investor delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $1.328, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, China Pharma issued a total of 112,952 shares of common stock to the Investor on June 13, 2023. On June 23, 2023 the Investor delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $1.4225, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, China Pharma issued a total of 105,448 shares of common stock to the Investor on June 27, 2023. On August 9, 2023 the Investor delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $1.0715, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 139,991 shares of common stock to the Investor on August 11, 2023. On August 21, 2023 the Investor delivered its notice of redemption for $245,000 of the Note and related interest at the conversion price of $1.0715, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 228,652 shares of common stock to the Investor on August 22, 2023. On September 1, 2023, the Investor delivered its notice of redemption for $140,000 of the Note and related interest at the conversion price of $0.666, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 210,211 shares of common stock to the Investor on September 6, 2023. On September 12, 2023, the Investor delivered its notice of redemption for $75,000 of the Note and related interest at the conversion price of $0.579, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 129,534 shares of common stock to the Investor on September 13, 2023. On October 6, 2023 the Investor delivered its notice of redemption for $100,000 of the Note and related interest at the conversion price of $0.546, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 183,150 shares of common stock to the Investor on October 9, 2023. On October 12, 2023 the Investor delivered its notice of redemption for $115,000 of the Note and related interest at the conversion price of $0.513, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 224,172 shares of common stock to the Investor on October 13, 2023. On October 17, 2023 the Investor delivered its notice of redemption for $115,000 of the Note and related interest at the conversion price of $0.513, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 224,172 shares of common stock to the Investor on October 17, 2023. On November 6, 2023 the Investor delivered its notice of redemption for $80,000 of the Note and related interest at the conversion price of $0.3765, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 212,444 shares of common stock to the Investor on November 7, 2023. On November 29, 2023 the Investor delivered its notice of redemption for $125,000 of the Note and related interest at the conversion price of $0.368, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 339,674 shares of common stock to the Investor on November 30, 2023. On November 30, 2023 the Investor delivered its notice of redemption for $115,000 of the Note and related interest at the conversion price of $0.368, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 312,500 shares of common stock to the Investor on December 1, 2023. On December 13, 2023 the Investor delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $0.4045, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 370,828 shares of common stock to the Investor on December 18, 2023. Subsequent to December 31, 2023 the Investor delivered additional notices of redemption as discussed in Note 14. 2022 Redemptions On March 21, 2022 the Investor delivered its notice of redemption for $100,000 of the Note at the lowest volume weighted average price of $15.565 during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 6,425 shares of common stock to the Investor on March 23, 2022. On March 30, 2022 the Investor delivered its notice of redemption for $200,000 of the Note and related interest at the price of $15.645, which was 85% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 12,874 shares of common stock to the Investor on March 31, 2022. On June 13, 2022 the Investor delivered its notice of redemption for $200,000 of the Note and related interest at the price of $9.90, which was 85% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 20,202 shares of common stock to the Investor on June 13, 2022. On August 3, 2022 the Investor delivered its notice of redemption for $200,000 of the Note and related interest at the conversion price of $8.775, which was 85% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 22,792 shares of common stock to the Investor on August 4, 2022. On October 17, 2022 the Investor delivered its notice of redemption for $100,000 of the Note and related interest at the conversion price of $5.60, which was 85% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 17,857 shares of common stock to the Investor on October 18, 2022. On December 1, 2022 the Investor delivered its notice of redemption for $100,000 of the Note and related interest at the conversion price of $4.145, which was 85% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 24,126 shares of common stock to the Investor on December 2, 2022. On December 5, 2022 the Investor delivered its notice of redemption for $310,000 of the Note and related interest at the conversion price of $4.145, which was 85% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 74,789 shares of common stock to the Investor on December 6, 2022. On December 13, 2022 the Investor delivered its notice of redemption for $90,000 of the Note and related interest at the conversion price of $4.55, which was 85% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 19,781 shares of common stock to the Investor on December 14, 2022. On December 14, 2022 the Investor delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $4.145, which was 85% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 36,181 shares of common stock to the Investor on December 15, 2022. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
LEASES | NOTE 9 - LEASES The Company has leases for certain office and production facilities in the PRC which are classified as operating leases. The leases contain payment terms for fixed amounts. Options to extend are recognized as part of the lease liabilities and recognized as right to use assets when management estimates to renew the lease. There are no residual value guarantees, no variable lease payments, and no restrictions or covenants imposed by leases. The discount rate used in measuring the lease liabilities and right of use assets was determined by reviewing the Company’s incremental borrowing rate at the initial measurement date. For the years ended December 31, 2023 and 2022, operating lease cost was $77,265 and $78,092, respectively and cash paid for amounts included in the measurement of lease liabilities for operating cash flows from operating leases was $80,647 and $82,015, respectively. As of December 31, 2023 and 2022, the Company reported operating lease right of use assets of $116,610 and $39,046, respectively and operating use liabilities of $117,637 and $40,445, respectively. As of December 31, 2023, its operating leases had a weighted average remaining lease term of 1.50 years and a weighted average discount rate of 4.75%. Minimum lease payments for the Company’s operating lease liabilities were as follows for the twelve month periods ended December 31: 2024 $ 80,647 2025 $ 40,324 Total undiscounted cash flows 120,971 Less: Imputed interest (3,334 ) 117,637 Less: Operating lease liabilities, current portion (77,727 ) Operating lease liabilities, net of current portion $ 39,910 The Company has leases with terms less than one year for certain provincial sales offices that are not material. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
INCOME TAXES | NOTE 10 - INCOME TAXES Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect of a change in tax laws or rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Liabilities are established for uncertain tax positions expected to be taken in income tax returns when such positions are judged to meet the “more-likely-than-not” threshold based on the technical merits of the positions. Estimated interest and penalties related to uncertain tax positions are included as a component of other expenses. Through December 31, 2023, the Company has not identified any uncertain tax positions that it has taken. U.S. income tax returns for the years ended December 31, 2020 through December 31, 2023 and the Chinese income tax return for the year ended December 31, 2023 are open for possible examination. Under the current tax law in the PRC, the Company is and will be subject to the enterprise income tax rate of 25%. There was no provision for income taxes for the years ended December 31, 2023 and 2022, respectively due to continued net losses of the Company. Following is a reconciliation of income taxes calculated at the federal statutory rates to the provision for income taxes: Years Ended December 31, 2023 2022 (Benefit) tax at statutory rate of 25% $ (769,704 ) $ (973,717 ) Prior year refund received - - Other, primarily the difference in U.S. tax rates 3,382 8,416 Change in valuation allowance 766,322 965,301 Income tax expense $ - $ - The temporary differences which give rise to the deferred income tax assets and liability are as follows: December 31, 2023 2022 Deferred income tax assets: Allowance for doubtful trade receivables $ 3,446,519 $ 4,184,882 Allowance for doubtful other receivables 6,754 6,787 Inventory obsolescence reserve 32,355 34,921 Stock compensation 3,201 3,201 Expenses not deductible in current year 1,069,198 1,087,328 Advances for intangible assets impairment 9,619,060 9,782,172 Lease liability, net 257 349 PRC net operating loss carry forward 5,275,411 5,036,114 U.S. net operating loss carry forward 2,078,262 1,849,800 Total deferred income tax assets 21,531,017 21,985,554 Valuation allowance (21,531,017 ) (21,985,554 ) Net deferred income tax asset $ - $ - Deferred income tax liability: Intangible assets $ 742,114 $ 754,698 As of December 31, 2022, the Company had net operating loss carryforwards for PRC tax purposes of approximately $21.1 million which are available to offset any future taxable income through 2028. Approximately $3.4 million of these carryforwards expired in December 2023. The Company also has net operating losses for United States federal income tax purposes of approximately $9.9 million of which $5.1 million is available to offset future taxable income, if any, through 2039, and $4.8 million are available for carryforward indefinitely subject to a limitation of 80% of taxable income for each tax year. U.S. federal tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the “U.S. Tax Reform”), was signed into law on December 22, 2017. The U.S. Tax Reform significantly modified the U.S. Internal Revenue Code by, among other things, reducing the statutory U.S. federal corporate income tax rate from 35% to 21% for taxable years beginning after December 31, 2017; limiting and/or eliminating many business deductions; migrating the U.S. to a territorial tax system with a one-time transition tax on a mandatory deemed repatriation of previously deferred foreign earnings of certain foreign subsidiaries; subject to certain limitations, generally eliminating U.S. corporate income tax on dividends from foreign subsidiaries; and providing for new taxes on certain foreign earnings. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those differences become deductible or tax loss carry forwards are utilized. Management considers projected future taxable income and tax planning strategies in making this assessment. Based upon an assessment of the level of historical taxable income and projections for future taxable income over the periods on which the deferred tax assets are deductible or can be utilized, management believes it is not likely for the Company to realize all benefits of the deferred tax assets as of December 31, 2023 and 2022. Therefore, the Company provided for a valuation allowance against its deferred tax assets of $21,531,017 and $21,467,355 as of December 31, 2023 and 2022, respectively. The Company also incurred various other taxes, comprised primarily of business taxes, value-added taxes, urban construction taxes, education surcharges and others. Any unpaid amounts are reflected on the balance sheets as accrued taxes payable. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurements [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 11 – FAIR VALUE MEASUREMENTS Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. To measure fair value, a hierarchy has been established which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs. This hierarchy uses three levels of inputs to measure the fair value of assets and liabilities as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities; Level 2 – Observable inputs other than Level 1 including quoted prices for similar assets or liabilities, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data; and Level 3 – Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. The Company uses fair value to measure the value of the banker’s acceptance notes it holds as of December 31, 2023 and 2022. The banker’s acceptance notes are recorded at cost which approximates fair value. The Company held the following assets and liabilities recorded at fair value: Fair Value Measurements at December 31, Reporting Date Using Description 2023 Level 1 Level 2 Level 3 Banker’s acceptance notes $ 65,915 $ - $ 65,915 $ - Total $ 65,915 $ - $ 65,915 $ - Fair Value Measurements at December 31, Reporting Date Using Description 2022 Level 1 Level 2 Level 3 Banker’s acceptance notes $ 13,784 $ - $ 13,784 $ - Total $ 13,784 $ - $ 13,784 $ - |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 12 - STOCKHOLDERS’ EQUITY The Company is authorized to issue 500,000,000 shares of common stock, $0.001 par value, and 5,000,000 shares of preferred stock, $0.001 par value. The preferred stock may be issued in series with such designations, preferences, stated values, rights, qualifications or limitations as determined solely by the Company’s Board. According to relevant PRC laws, companies registered in the PRC, including the Company’s PRC subsidiary, Helpson, are required to allocate at least 10% of their after tax income, as determined under the accounting standards and regulations in the PRC, to statutory surplus reserve accounts until the reserve account balances reach 50% of the company’s registered capital prior to their remittance of funds out of the PRC. Allocations to these reserves and funds can only be used for specific purposes and are not transferrable to the parent company in the form of loans, advances or cash dividends. The amount designated for general and statutory capital reserves is $8,145,000 at December 31, 2023 and 2022. Effective March 6, 2024, the Company implemented a 1-for -5 reverse stock split as more fully discussed in Note 14. All share and per share disclosures have been retroactively restated to reflect the impact of the reverse stock split. Effective March 6, 2023 China Pharma implemented a 1-for-10 reverse split of its common stock. The reverse stock split was approved by the Company’s Board of Directors through unanimous written consent and China Pharma’s stockholders at its Annual Meeting for the fiscal year ended on December 31, 2021, which was held on December 27, 2022. Upon the effectiveness of the reverse stock split, every 10 shares of China Pharma’s issued and outstanding common stock were automatically converted into one share of issued and outstanding common stock. No fractional shares were issued as a result of the reverse stock split. Instead, any fractional shares that resulted from the split were rounded up to the next whole number. The reverse stock split affects all stockholders uniformly and does not alter any stockholder’s percentage interest in China Pharma’s outstanding common stock, except for adjustments that may result from the treatment of fractional shares. All share and per share amounts have been retroactively restated for all periods presented in the accompanying consolidated financial statements. 2010 Incentive Plan On November 12, 2010, the Company’s Board adopted the Company’s 2010 Incentive Plan (the “Plan”), which was then approved by stockholders on December 22, 2010. On October 17, 2019, the Board of Directors approved the First Amendment to the 2010 Incentive Plan (the “Amendment”), pursuant to which the term of the 2010 Incentive Plan was extended to December 31, 2029. The Amendment was adopted by the stockholders on December 19, 2019. On October 25, 2021, the Board of Directors approved, and on December 27, 2021 our stockholders adopted the Amendment No.2 to the Plan to increase the number of shares of the Common Stock, that are reserved thereunder by 100,000 shares from 80,000 shares to 180,000 shares. On October 27, 2022 the Board of Directors approved and on December 27, 2022, the stockholders adopted the Amended and Restated Long Term 2010 Incentive Plan to increase the number of shares of common stock that are reserved thereunder by an additional 100,000 shares from 180,000 to 280,000. On December 17, 2023 the stockholders approved Amendment No. 1 to the Amended and Restated Long Term 2010 Incentive Plan to increase the number of shares from 280,000 to 580,000. The Plan gives the Company the ability to grant stock options, restricted stock, stock appreciation rights and performance units to its employees, directors and consultants, or those who will become employees, directors and consultants of the Company and/or its subsidiaries. The Plan currently allows for equity awards of up to 580,000 shares of common stock. Through December 31, 2023, there were 84,700 shares of stock and stock options granted and outstanding under the Plan. A total of 13,300 options were outstanding as of December 31, 2023 under the Plan. As such, there are 482,000 additional units available for issuance under the Plan. There were no issuances of securities from the Plan for the year ended December 31, 2023 and as such, no compensation expense was recognized for the period. On October 3, 2022 the Company issued 6,000 shares of common stock pursuant to a contract with a consultant to the Company for services. The Company recorded compensation expense totaling $42,000 based on the closing market price of its common stock of $7.00 per share on the issuance date. The contract also calls for the issuance of up to 18,000 additional shares of common stock contingent upon the achievement of certain milestones as described in the contract. At December 31, 2023 these milestones had not been met. On October 4, 2022 the Company issued an option to purchase 12,000 shares of common stock at an exercise price at $28.00 per share, under the Plan to the same consultant in the preceding paragraph. The Option vests immediately and expires on October 3, 2027. On September 9, 2021 the Company issued an aggregate of 35,200 fully vested shares of common stock at the price of $33.50 per share, representing the closing market price on that date to its Chairperson, Chief Executive Officer and Interim Chief Financial Officer under the Plan, as amended, to partially offset certain unpaid cash compensation totaling $1,179,200. Also on September 9, 2021 the Company issued an option to purchase 1,300 shares of common stock at an exercise price at $73.70 per share, under the Plan. The Option vests immediately and expires on September 9, 2024. On December 23, 2020 the Board approved the issuance of 40,000 shares of common stock from the Company’s 2010 Long-Term Incentive Plan, as amended for the partial conversion of unpaid compensation totaling $864,480 to the Chairperson, Chief Executive Officer and Interim Chief Financial Officer. As of December 31, 2023, there was no remaining unrecognized compensation expense related to stock options or restricted stock grants. |
Risks & Uncertainties
Risks & Uncertainties | 12 Months Ended |
Dec. 31, 2023 | |
Risks & Uncertainties [Abstract] | |
RISKS & UNCERTAINTIES | NOTE 13 – RISKS & UNCERTAINTIES Current vulnerability due to certain concentrations For the year ended December 31, 2023, no customer accounted for more than 10% of sales and two customers accounted for 62.59% and 13.5% of accounts receivable. One suppliers accounted for 13.8% of raw material purchases, and three different products accounted for 29.2%, 27.3% and 12.5% of revenue. For the year ended December 31, 2022, no customer accounted for more than 10% of sales and three customers accounted for 52.9%, 11.4% and 10.4% of accounts receivable. Two suppliers accounted for 21.7% and 11.1% of raw material purchases, and three different products accounted for 25.0%, 22.8% and 13.9% of revenue. Nature of Operations Impact from the New Coronavirus Global Pandemic (“COVID-19”) Economic environment - In addition, all of the Company’s revenue is denominated in the PRC’s currency of Renminbi (RMB), which must be converted into other currencies before remittance out of the PRC. Both the conversion of RMB into foreign currencies and the remittance of foreign currencies abroad require approval of the PRC government. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 14 – SUBSEQUENT EVENTS On February 2, 2024, the Company entered into a Technology Transfer Agreement with Lihua Li (the “Transferor”). The Transferor owns an invention patent of a pharmaceutical composition for treatment of psoriasis (the “Invention Patent”). Pursuant to the Agreement, the Transferor will transfer the ownership of the Invention Patent to Helpson. The Transferor or its designated third party shall provide relevant technical services in Haikou, which include but are not limited to product research and development, writing of registration materials, registration application. The aggregate transfer price as contemplated by the Agreement is $1.365 million which was paid to the Transferor and his two designees upon the issuance of 3,000,000 shares of common stock of the Company at $0.455 per share based on the closing market price of the Company’s common stock as of that date. During ten years since the product launches to the market, if and only if the product generates profit, Helpson shall pay 10% of the net profit of the sales in cash on an annual basis to the Transferor. Effective March 6, 2024 the Company implemented a 1-for-5 reverse split of its common stock. The reverse stock split was approved by the Company’s Board of Directors through unanimous written consent and the Company’s stockholders at its Annual Meeting for the fiscal year ended on December 31, 2022, which was held on December 17, 2023. Upon the effectiveness of the reverse stock split, every 5 shares of the Company’s issued and outstanding common stock were automatically converted into one share of issued and outstanding common stock. No fractional shares were issued as a result of the reverse stock split. Instead, any fractional shares that resulted from the split were rounded up to the next whole number. The reverse stock split affects all stockholders uniformly and does not alter any stockholder’s percentage interest in the Company’s outstanding common stock, except for adjustments that may result from the treatment of fractional shares. All share and per share amounts have been retroactively restated for the years ended December 31, 2023 and 2022. On January 11, 2024 the Investor delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $0.3945, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 380,228 shares of common stock to the Investor on January 16, 2024. On February 1, 2024 the Investor delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $0.3725, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 402,685 shares of common stock to the Investor on February 5, 2024. On February 16, 2024 the Investor delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $0.3675, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 408,164 shares of common stock to the Investor on February 21, 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ (3,078,818) | $ (3,972,841) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Significant Accounting Policies [Abstract] | |
Organization and Nature of Operations | Organization and Nature of Operations – Onny acquired 100% of the ownership in Helpson on May 25, 2005, by entering into an Equity Transfer Agreement with Helpson’s three former shareholders. The transaction was approved by the Commercial Bureau of Hainan Province on June 12, 2005 and Helpson received the Certificate of Approval for Establishment of Enterprises with Foreign Investment in the PRC on the same day. Helpson received its business license evidencing its Wholly Foreign Owned Enterprise (“WFOE”) status on June 21, 2005. Helpson is principally engaged in the development, manufacture and marketing of pharmaceutical products for human use in connection with a variety of high-incidence and high-mortality diseases and medical conditions prevalent in the PRC. All of its operations are conducted in the PRC, where its manufacturing facilities are located. Helpson manufactures pharmaceutical products in the form of dry powder injectables, liquid injectables, tablets, capsules, and cephalosporin oral solutions. The majority of its pharmaceutical products are sold on a prescription basis and all have been approved for at least one or more therapeutic indications by the National Medical Products Administration (the “NMPA”, formerly China Food and Drug Administration, or CFDA) based upon demonstrated safety and efficacy. |
Liquidity and Going Concern | Liquidity and Going Concern As of December 31, 2023, the Company had cash and cash equivalents of $1.4 million and an accumulated deficit of $39.3 million. The Company’s Chairperson, Chief Executive Officer and Interim Chief Financial Officer (“Chairperson Li”) has advanced an aggregate of $1,133,809 as of December 31, 2023 to provide working capital and enabled the Company to make the required payments related to its former construction loan facility. The Company anticipates operating losses to continue for the foreseeable future due to, among other things, costs related to the production of its existing products, debt service costs and costs of selling and administrative costs. These conditions raise substantial doubt about its ability to continue as a going concern within one year after the date that the financial statements are issued. To alleviate the conditions that raise substantial doubt about the Company’s ability to continue as a going concern, management plans to enhance the sales model of advance payment, and further strengthen its collection of accounts receivable. Further, the Company is currently exploring strategic alternatives to accelerate the launch of nutrition products. In addition, management believes that the Company’s existing fixed assets can serve as collateral to support additional bank loans. While the current plans will allow the Company to fund its operations in the next twelve months, there can be no assurance that the Company will be able to achieve its future strategic alternatives raising substantial doubt about its ability to continue as a going concern. Pursuant to the requirements of Accounting Standards Codification (ASC) 205-40, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern Under ASC 205-40, the strategic alternatives being pursued by the Company cannot be considered probable at this time because none of the Company’s current plans have been finalized at the time of the issuance of these financial statements and the implementation of any such plan is not probable of being effectively implemented as none of the plans are entirely within the Company’s control. Accordingly, substantial doubt is deemed to exist about the Company’s ability to continue as a going concern within one year after the date these financial statements are issued. The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of the uncertainties described above. |
Reverse Stock Split | Reverse Stock Split |
Consolidation and Basis of Presentation | Consolidation and Basis of Presentation Helpson’s functional currency is the Chinese Renminbi. Helpson’s revenue and expenses are translated into United States dollars at the average exchange rate for the period. Assets and liabilities are translated at the exchange rate as of the end of the reporting period. Gains or losses from translating Helpson’s financial statements are included in accumulated other comprehensive income, which is a component of stockholders’ equity. Gains and losses arising from transactions denominated in a currency other than the functional currency of the entity that is party to the transaction are included in the results of operations. |
Accounting Estimates | Accounting Estimates |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Trade Accounts Receivable and Allowance for Doubtful Accounts | Trade Accounts Receivable and Allowance for Doubtful Accounts – Trade accounts receivable that have been fully allowed for and determined to be uncollectible are charged against the allowance in the period the determination is made. The Company charged off uncollectible trade accounts receivable balances in the amount of $0 and $0 against the allowance for the years ended December 31, 2023 and 2022, respectively. Customer balances outstanding for more than one year are allowed for at a greater rate than more current balances when calculating the allowance for doubtful accounts. |
Advances to Suppliers and Advances from Customers | Advances to Suppliers and Advances from Customers |
Inventory | Inventory – |
Leases | Leases – At lease commencement, the Company records a lease liability based on the present value of lease payments over the expected lease term including any options to extend the lease that the Company is reasonably certain to exercise. The Company calculates the present value of lease payments using an incremental borrowing rate as the Company’s leases do not provide an implicit interest rate. The Company’s incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. At the lease commencement date, the Company records a corresponding right-of-use lease asset based on the lease liability, adjusted for any lease incentives received and any initial direct costs paid to the lessor prior to the lease commencement date. The Company may enter into leases with an initial term of 12 months or less (“Short-Term Leases”). For any Short-Term Leases, the Company records the rent expense on a straight-line basis and does not record the leases on the balance sheet. After lease commencement, the Company measures its leases as follows: (i) the lease liability based on the present value of the remaining lease payments using the discount rate determined at lease commencement and (ii) the right-of-use lease asset based on the remeasured lease liability, adjusted for any unamortized lease incentives received, any unamortized initial direct costs and the cumulative difference between rent expense and amounts paid under the lease agreement. Any lease incentives received and any initial direct costs are amortized on a straight-line basis over the expected lease term. Rent expense is recorded on a straight-line basis over the expected lease term. |
Valuation of Long-Lived Assets | Valuation of Long-Lived Assets |
Property, Plant and Equipment | Property, Plant and Equipment |
Revenue Recognition | Revenue Recognition The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. The Company’s contracts are fixed price and reflect standalone pricing for each item. Due to the nature of the products sold, there are no returns. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon buyer’s designated carrier or the buyer picks up the goods at the Company’s warehouse. |
Cost of Revenues | Cost of Revenues |
Research and Development | Research and Development |
Credit Risk | Credit Risk The Company has its cash in bank deposits primarily at state owned banks located in the PRC. Historically, deposits in PRC banks have been secured due to the state policy of protecting depositors’ interests. The PRC promulgated a Bankruptcy Law in August 2006, effective June 1, 2007, which contains provisions for the implementation of measures for the bankruptcy of PRC banks. Company bank accounts in China are not subject to a certain insurance coverage and will follow the provisions set forth in the PRC Bankruptcy Law should any bank where the Company has accounts declare bankruptcy. |
Interest Rate Risk | Interest Rate Risk |
Basic and Diluted Loss per Common Share | Basic and Diluted Loss per Common Share As of December 31, 2023, the Company has potentially dilutive common shares related to the option to purchase 13,300 shares of common stock and the 6,267 shares issuable upon conversion of the Convertible Note Payable are excluded from the computation of diluted net loss per share for all periods presented because the effect is anti-dilutive due to net losses of the Company. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326) From time to time, the FASB or other standards setting bodies issue new accounting pronouncements. Updates to the FASB ASC are communicated through issuance of ASUs. Unless otherwise discussed, the Company believes that the recently issued guidance, whether adopted or to be adopted in the future, is not expected to have a material impact on its consolidated financial statements upon adoption. |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory [Abstract] | |
Schedule of Inventory | Inventory consisted of the following: December 31, December 31, 2023 2022 Raw materials 1,849,213 1,839,641 Work in process 413,597 557,146 Finished goods 1,469,707 551,000 Total Inventory $ 3,732,517 $ 2,947,787 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consisted of the following: December 31, December 31, 2023 2022 Permit of land use $ 397,684 $ 404,427 Building 9,234,836 9,391,433 Plant, machinery and equipment 27,170,123 27,780,585 Motor vehicle 303,697 438,138 Office equipment 388,740 308,847 Total 37,495,080 38,323,430 Less: accumulated depreciation (30,394,655 ) (28,350,365 ) Property, plant and equipment, net $ 7,100,425 $ 9,973,065 |
Schedule of Estimated Useful Lives of The Assets | Depreciation is computed on a straight-line basis over the estimated useful lives of the assets as follows: Asset Life - years Permit of land use 40 - 70 Building 20 - 49 Plant, machinery and equipment 5 - 10 Motor vehicle 5 - 10 Office equipment 3-5 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets [Abstract] | |
Schedule of Intangible Assets | Intangible assets consisted of the following: December 31, December 31, 2023 2022 NMPA approved medical formulas $ 4,766,353 $ 4,847,176 Technology from Bonier 1,726,497 1,707,452 Invention Patent 1,653,028 - Accumulated amortization (4,890,646 ) (4,747,142 ) Net carrying amount $ 3,255,232 $ 1,807,486 |
Schedule of Aggregate Annual Amortization Expense | The estimated aggregate annual amortization expense for each of the next five years and thereafter is as follows: Year Amount 2024 327,050 2025 321,235 2026 292,156 2027 292,156 2028 292,156 Thereafter 1,730,479 Total $ 3,255,232 |
Other Payables (Tables)
Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Payables [Abstract] | |
Schedule of Other Payables | Other Payables consisted of the following: December 31, December 31, 2023 2022 Compensation payable to officer 1,243,506 951,506 Compensation and interest to related parties $ 12,000 $ 372,578 Business taxes and other 1,027,186 1,065,979 Total Other Payables $ 2,282,692 $ 2,390,063 |
Lines of Credit and Construct_2
Lines of Credit and Construction Loan Facility (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Lines of Credit and Construction Loan Facility [Abstract] | |
Schedule of principal payments | Principal payments required for the remaining terms of the lines of credit as of December 31, 2023 are as follows: Year Lines of 2024 $ 2,442,571 $ 2,442,571 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Operating Lease Liabilities | Minimum lease payments for the Company’s operating lease liabilities were as follows for the twelve month periods ended December 31: 2024 $ 80,647 2025 $ 40,324 Total undiscounted cash flows 120,971 Less: Imputed interest (3,334 ) 117,637 Less: Operating lease liabilities, current portion (77,727 ) Operating lease liabilities, net of current portion $ 39,910 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
Schedule of Income Taxes Calculated at the Federal Statutory Rates | Following is a reconciliation of income taxes calculated at the federal statutory rates to the provision for income taxes: Years Ended December 31, 2023 2022 (Benefit) tax at statutory rate of 25% $ (769,704 ) $ (973,717 ) Prior year refund received - - Other, primarily the difference in U.S. tax rates 3,382 8,416 Change in valuation allowance 766,322 965,301 Income tax expense $ - $ - |
Schedule of Deferred Income Tax Assets and Liability | The temporary differences which give rise to the deferred income tax assets and liability are as follows: December 31, 2023 2022 Deferred income tax assets: Allowance for doubtful trade receivables $ 3,446,519 $ 4,184,882 Allowance for doubtful other receivables 6,754 6,787 Inventory obsolescence reserve 32,355 34,921 Stock compensation 3,201 3,201 Expenses not deductible in current year 1,069,198 1,087,328 Advances for intangible assets impairment 9,619,060 9,782,172 Lease liability, net 257 349 PRC net operating loss carry forward 5,275,411 5,036,114 U.S. net operating loss carry forward 2,078,262 1,849,800 Total deferred income tax assets 21,531,017 21,985,554 Valuation allowance (21,531,017 ) (21,985,554 ) Net deferred income tax asset $ - $ - Deferred income tax liability: Intangible assets $ 742,114 $ 754,698 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurements [Abstract] | |
Schedule of Assets and Liabilities Recorded at Fair Value | The Company uses fair value to measure the value of the banker’s acceptance notes it holds as of December 31, 2023 and 2022. The banker’s acceptance notes are recorded at cost which approximates fair value. The Company held the following assets and liabilities recorded at fair value: Fair Value Measurements at December 31, Reporting Date Using Description 2023 Level 1 Level 2 Level 3 Banker’s acceptance notes $ 65,915 $ - $ 65,915 $ - Total $ 65,915 $ - $ 65,915 $ - Fair Value Measurements at December 31, Reporting Date Using Description 2022 Level 1 Level 2 Level 3 Banker’s acceptance notes $ 13,784 $ - $ 13,784 $ - Total $ 13,784 $ - $ 13,784 $ - |
Organization and Significant _2
Organization and Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | May 25, 2005 | |
Organization and Significant Accounting Policies [Line Items] | |||
Cash and cash equivalents | $ 1,400,000 | ||
Accumulated deficit | (39,300,000) | ||
Bad debt expense | 15,757 | $ 93,851 | |
Uncollectible trade accounts receivable | 0 | 0 | |
Advances from customers | $ 90,507 | $ 520,295 | |
Purchase of common stock (in Shares) | 13,300 | ||
Shares issuable upon conversion of the convertible note payable (in Shares) | 6,267 | ||
Onny Investment Limited [Member] | |||
Organization and Significant Accounting Policies [Line Items] | |||
Ownership percentage | 100% | ||
Hainan Helpson Medical & Biotechnology Co., Ltd [Member] | |||
Organization and Significant Accounting Policies [Line Items] | |||
Ownership percentage | 100% | 100% | |
Chief Executive Officer [Member] | |||
Organization and Significant Accounting Policies [Line Items] | |||
Working capital | $ 1,133,809 |
Inventory (Details) - Schedule
Inventory (Details) - Schedule of Inventory - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Inventory [Line Items] | ||
Raw materials | $ 1,849,213 | $ 1,839,641 |
Work in process | 413,597 | 557,146 |
Finished goods | 1,469,707 | 551,000 |
Total Inventory | $ 3,732,517 | $ 2,947,787 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expanse | $ 2,529,858 | $ 2,663,975 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Details) - Schedule of Property, Plant and Equipment - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 37,495,080 | $ 38,323,430 |
Less: accumulated depreciation | (30,394,655) | (28,350,365) |
Property, plant and equipment, net | 7,100,425 | 9,973,065 |
Permit of land use [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 397,684 | 404,427 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 9,234,836 | 9,391,433 |
Plant, machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 27,170,123 | 27,780,585 |
Motor vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 303,697 | 438,138 |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 388,740 | $ 308,847 |
Property, Plant and Equipment_4
Property, Plant and Equipment (Details) - Schedule of Estimated Useful Lives of The Assets | Dec. 31, 2023 |
Permit of land use [Member] | Minimum [Member] | |
Property, Plant and Equipment (Details) - Schedule of Estimated Useful Lives of The Assets [Line Items] | |
Estimated useful lives | 40 years |
Permit of land use [Member] | Maximum [Member] | |
Property, Plant and Equipment (Details) - Schedule of Estimated Useful Lives of The Assets [Line Items] | |
Estimated useful lives | 70 years |
Building [Member] | Minimum [Member] | |
Property, Plant and Equipment (Details) - Schedule of Estimated Useful Lives of The Assets [Line Items] | |
Estimated useful lives | 20 years |
Building [Member] | Maximum [Member] | |
Property, Plant and Equipment (Details) - Schedule of Estimated Useful Lives of The Assets [Line Items] | |
Estimated useful lives | 49 years |
Plant, machinery and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment (Details) - Schedule of Estimated Useful Lives of The Assets [Line Items] | |
Estimated useful lives | 5 years |
Plant, machinery and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment (Details) - Schedule of Estimated Useful Lives of The Assets [Line Items] | |
Estimated useful lives | 10 years |
Motor vehicle [Member] | Minimum [Member] | |
Property, Plant and Equipment (Details) - Schedule of Estimated Useful Lives of The Assets [Line Items] | |
Estimated useful lives | 5 years |
Motor vehicle [Member] | Maximum [Member] | |
Property, Plant and Equipment (Details) - Schedule of Estimated Useful Lives of The Assets [Line Items] | |
Estimated useful lives | 10 years |
Office equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment (Details) - Schedule of Estimated Useful Lives of The Assets [Line Items] | |
Estimated useful lives | 3 years |
Office equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment (Details) - Schedule of Estimated Useful Lives of The Assets [Line Items] | |
Estimated useful lives | 5 years |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 12 Months Ended | |||
Dec. 15, 2023 | Nov. 28, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Intangible Assets (Details) [Line Items] | ||||
Amortization intangible by useful life, descriptions | Approved medical formulas are amortized from the date NMPA approval is obtained over their individually identifiable estimated useful life, which range from ten to thirteen years. | |||
Amortization expense relating to intangible assets | $ 223,796 | $ 36,558 | ||
Stock issued (in Shares) | 3,000,000 | 310,446 | ||
Common stock value | $ 1,650,000 | $ 1,707,452 | ||
Closing price of common stock (in Dollars per share) | $ 0.55 | $ 5.5 | ||
Intangible asset useful life,term | 9 years 8 months 12 days | |||
Percentage of net profit | 15% | |||
Helpson [Member] | ||||
Intangible Assets (Details) [Line Items] | ||||
Percentage of net profit | 15% | |||
China Pharma [Member] | ||||
Intangible Assets (Details) [Line Items] | ||||
Intangible asset useful life,term | 14 years 9 months 18 days |
Intangible Assets (Details) - S
Intangible Assets (Details) - Schedule of Intangible Assets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Intangible Assets (Details) - Schedule of Intangible Assets [Line Items] | ||
Accumulated amortization | $ (4,890,646) | $ (4,747,142) |
Net carrying amount | 3,255,232 | 1,807,486 |
NMPA approved medical formulas [Member] | ||
Intangible Assets (Details) - Schedule of Intangible Assets [Line Items] | ||
Gross carrying amount | 4,766,353 | 4,847,176 |
Technology from Bonier [Member] | ||
Intangible Assets (Details) - Schedule of Intangible Assets [Line Items] | ||
Gross carrying amount | 1,726,497 | 1,707,452 |
Invention Patent [Member] | ||
Intangible Assets (Details) - Schedule of Intangible Assets [Line Items] | ||
Gross carrying amount | $ 1,653,028 |
Intangible Assets (Details) -_2
Intangible Assets (Details) - Schedule of Aggregate Annual Amortization Expense - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Aggregate Annual Amortization Expense [Abstract] | ||
2024 | $ 327,050 | |
2025 | 321,235 | |
2026 | 292,156 | |
2027 | 292,156 | |
2028 | 292,156 | |
Thereafter | 1,730,479 | |
Total | $ 3,255,232 | $ 1,807,486 |
Other Payables (Details) - Sche
Other Payables (Details) - Schedule of Other Payables - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Other Payables [Line Items] | ||
Compensation payable to officer | $ 1,243,506 | $ 951,506 |
Compensation and interest to related parties | 12,000 | 372,578 |
Business taxes and other | 1,027,186 | 1,065,979 |
Total Other Payables | $ 2,282,692 | $ 2,390,063 |
Related Party Transactions (Det
Related Party Transactions (Details) | 1 Months Ended | 12 Months Ended | ||||||
Aug. 23, 2023 USD ($) | Jul. 08, 2019 USD ($) | Jul. 08, 2019 CNY (¥) | Sep. 28, 2023 USD ($) shares | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Related Party Transactions (Details) [Line Items] | ||||||||
Loan payment | $ 1,854,452 | |||||||
Aggregate amount | $ 1,854,452 | |||||||
Restricted common stock (in Shares) | shares | 2,751,412 | |||||||
Term of loan agreement | 1 year | |||||||
Board of Directors Chairman [Member] | ||||||||
Related Party Transactions (Details) [Line Items] | ||||||||
Borrowings from related parties | $ 1,354,567 | |||||||
Interest rate | 1% | |||||||
Other payables | $ 12,000 | 372,578 | ||||||
Chairperson Li [Member] | ||||||||
Related Party Transactions (Details) [Line Items] | ||||||||
Borrowings from related parties | $ 1,121,273 | $ 1,425,123 | ||||||
Interest expense | 6,773 | 13,546 | ||||||
Other payables | 1,243,506 | 951,506 | ||||||
Proceeds from loan agreement | $ 738,379 | ¥ 4,770,000 | ||||||
Chief Executive Officer [Member] | ||||||||
Related Party Transactions (Details) [Line Items] | ||||||||
Total advance received | 2,928 | 0 | ||||||
Interim Chief Financial Officer [Member] | ||||||||
Related Party Transactions (Details) [Line Items] | ||||||||
Total advance received | 0 | 223,013 | ||||||
Management [Member] | ||||||||
Related Party Transactions (Details) [Line Items] | ||||||||
Interest rate | 4.35% | 4.35% | ||||||
Chief Financial Officer [Member] | ||||||||
Related Party Transactions (Details) [Line Items] | ||||||||
Interest expense | $ 27,644 | $ 28,962 |
Lines of Credit and Construct_3
Lines of Credit and Construction Loan Facility (Details) | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||
Oct. 31, 2020 USD ($) | Oct. 31, 2020 CNY (¥) | Sep. 30, 2020 USD ($) | Sep. 30, 2020 CNY (¥) | Sep. 28, 2023 USD ($) | Jul. 31, 2020 USD ($) | Jul. 31, 2020 CNY (¥) | Apr. 30, 2020 USD ($) | Apr. 30, 2020 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Feb. 02, 2024 CNY (¥) | Dec. 20, 2023 CNY (¥) | Sep. 25, 2023 USD ($) | Sep. 25, 2023 CNY (¥) | Feb. 24, 2023 USD ($) | Feb. 24, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 30, 2022 USD ($) | Dec. 30, 2022 CNY (¥) | Dec. 21, 2022 USD ($) | Dec. 21, 2022 CNY (¥) | Sep. 30, 2022 | Sep. 06, 2022 | Jun. 22, 2022 | Jun. 21, 2022 | Sep. 30, 2021 USD ($) | Sep. 30, 2021 CNY (¥) | Sep. 18, 2021 USD ($) | Sep. 18, 2021 CNY (¥) | Jun. 25, 2021 | Sep. 30, 2020 CNY (¥) | |
Line of Credit Facility [Line Items] | ||||||||||||||||||||||||||||||||
interest rate, percentage | 4.25% | 3.90% | 3.35% | 3.35% | 4.50% | 4.50% | ||||||||||||||||||||||||||
Line of credit, amount | ¥ 3,800,000 | $ 560,000 | ¥ 3,800,000 | $ 1,000,000 | ¥ 7,300,000 | $ 1,540,000 | ¥ 10,000,000 | |||||||||||||||||||||||||
Total interest expense | $ 31,750 | $ 53,283 | ||||||||||||||||||||||||||||||
Repaid under this line of credit (in Yuan Renminbi) | 1,030,680 | 2,440,915 | ||||||||||||||||||||||||||||||
Advance amount | $ 100,000 | ¥ 856,660 | $ 400,000 | ¥ 3,000,000 | $ 700,000 | ¥ 5,000,000 | ||||||||||||||||||||||||||
Aggregate amount (in Yuan Renminbi) | $ 1,854,452 | |||||||||||||||||||||||||||||||
Repaid amount | 0.85 | ¥ 5,900,000 | ||||||||||||||||||||||||||||||
Loans Payable [Member] | ||||||||||||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||||||||||||
interest rate, percentage | 3.90% | 3.90% | 4.17% | 4.17% | 4.17% | |||||||||||||||||||||||||||
Subsequent Event [Member] | ||||||||||||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||||||||||||
Repaid under this line of credit (in Yuan Renminbi) | ¥ | ¥ 3,500,000 | |||||||||||||||||||||||||||||||
Bank of Communications [Member] | ||||||||||||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||||||||||||
Line of credit, amount | $ 510,000 | ¥ 3,500,000 | ||||||||||||||||||||||||||||||
China CITIC Bank [Member] | ||||||||||||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||||||||||||
interest rate, percentage | 4.50% | 4.50% | ||||||||||||||||||||||||||||||
Line of credit, amount | $ 500,000 | ¥ 3,200,000 | ||||||||||||||||||||||||||||||
Total interest expense | 19,579 | 20,548 | ||||||||||||||||||||||||||||||
Advance amount | $ 300,000 | ¥ 2,343,340 | ||||||||||||||||||||||||||||||
Percentage of loan bears interest | 4.50% | |||||||||||||||||||||||||||||||
CITIC Bank [Member] | ||||||||||||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||||||||||||
Line of credit, amount | $ 800,000 | ¥ 3,200,000 | ||||||||||||||||||||||||||||||
Bank of China [Member] | ||||||||||||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||||||||||||
interest rate, percentage | 3.45% | 3.85% | 3.85% | |||||||||||||||||||||||||||||
Line of credit, amount | $ 1,400,000 | |||||||||||||||||||||||||||||||
Total interest expense | $ 48,624 | 54,923 | ||||||||||||||||||||||||||||||
Loan and received proceeds | $ 1,400,000 | ¥ 10,000,000 | ||||||||||||||||||||||||||||||
Aggregate amount (in Yuan Renminbi) | ¥ | ¥ 10,000,000 | |||||||||||||||||||||||||||||||
Postal Savings Bank of China [Member] | ||||||||||||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||||||||||||
Total interest expense | $ 12,063 |
Lines of Credit and Construct_4
Lines of Credit and Construction Loan Facility (Details) - Schedule of Principal Payments - Lines of Credit [Member] | Dec. 31, 2023 USD ($) |
Line of Credit Facility [Line Items] | |
2026 | $ 2,442,571 |
Total | $ 2,442,571 |
Convertible Note Payable (Detai
Convertible Note Payable (Details) | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 18, 2023 shares | Dec. 13, 2023 USD ($) $ / shares | Dec. 01, 2023 shares | Nov. 30, 2023 USD ($) $ / shares shares | Nov. 29, 2023 USD ($) $ / shares | Nov. 07, 2023 shares | Nov. 06, 2023 USD ($) $ / shares | Oct. 17, 2023 USD ($) $ / shares shares | Oct. 13, 2023 shares | Oct. 12, 2023 USD ($) $ / shares | Oct. 09, 2023 shares | Oct. 06, 2023 USD ($) $ / shares | Sep. 13, 2023 shares | Sep. 12, 2023 USD ($) $ / shares | Sep. 06, 2023 shares | Sep. 01, 2023 USD ($) $ / shares | Aug. 22, 2023 shares | Aug. 21, 2023 USD ($) $ / shares | Aug. 11, 2023 shares | Aug. 09, 2023 USD ($) $ / shares | Jun. 27, 2023 shares | Jun. 23, 2023 USD ($) $ / shares | Jun. 13, 2023 shares | Jun. 06, 2023 USD ($) $ / shares | May 25, 2023 shares | May 24, 2023 USD ($) $ / shares | May 03, 2023 shares | May 01, 2023 USD ($) $ / shares | Apr. 13, 2023 USD ($) shares | Apr. 07, 2023 USD ($) $ / shares | Mar. 08, 2023 shares | Mar. 02, 2023 USD ($) $ / shares | Jan. 19, 2023 shares | Jan. 18, 2023 USD ($) $ / shares | Jan. 06, 2023 shares | Jan. 05, 2023 USD ($) $ / shares | Dec. 15, 2022 shares | Dec. 14, 2022 USD ($) $ / shares shares | Dec. 13, 2022 USD ($) $ / shares | Dec. 06, 2022 shares | Dec. 05, 2022 USD ($) $ / shares | Dec. 02, 2022 shares | Dec. 01, 2022 USD ($) $ / shares | Oct. 18, 2022 shares | Oct. 17, 2022 USD ($) $ / shares | Aug. 04, 2022 shares | Aug. 03, 2022 USD ($) $ / shares | Jun. 13, 2022 USD ($) $ / shares shares | Apr. 19, 2022 $ / shares | Mar. 31, 2022 shares | Mar. 30, 2022 USD ($) $ / shares | Mar. 21, 2022 USD ($) $ / shares | Nov. 19, 2021 $ / shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) | Mar. 23, 2022 shares | |
Convertible Note Payable [line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt extension fee (in Dollars) | $ 65,639 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note and accrued interest | 2% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt redemptions weighted average price | 82% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest accrues on note, description | Interest accrues on the outstanding balance of the Note at 5% per annum compounded daily. Upon the occurrence of an Event of Default as defined in the Note, interest accrues at the lesser of 22% per annum or the maximum rate permitted by applicable law. In addition, upon any Event of Default, the Investor may accelerate the outstanding balance payable under the Note, which will increase automatically upon such acceleration by 15% or 5%, depending on the nature of the Event of Default. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeem of outstanding note (in Dollars) | $ 500,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument redemption price percentage | 82% | 82% | 82% | 82% | 82% | 82% | 82% | 82% | 82% | 82% | 82% | 82% | 82% | 82% | 85% | 85% | 85% | 85% | 85% | 85% | 85% | 85% | 85% | 85% | 85% | 85% | 85% | 82% | ||||||||||||||||||||||||||||
Note redeemable into shares (in Shares) | shares | 2,159,964 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average price (in Dollars per share) | $ / shares | $ 15.565 | $ 0.436 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense (in Dollars) | $ 15,757 | $ 93,851 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt redemption amount (in Dollars) | $ 150,000 | $ 115,000 | $ 125,000 | $ 80,000 | $ 115,000 | $ 115,000 | $ 100,000 | $ 75,000 | $ 140,000 | $ 245,000 | $ 150,000 | $ 150,000 | $ 150,000 | $ 150,000 | $ 150,000 | $ 200,000 | $ 250,000 | $ 250,000 | $ 150,000 | $ 150,000 | $ 90,000 | $ 310,000 | $ 100,000 | $ 100,000 | $ 200,000 | $ 200,000 | $ 200,000 | $ 100,000 | ||||||||||||||||||||||||||||
Share issued (in Shares) | shares | 6,425 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Note Payable [line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock issued during period shares (in Shares) | shares | 370,828 | 312,500 | 339,674 | 212,444 | 224,172 | 224,172 | 183,150 | 129,534 | 210,211 | 228,652 | 139,991 | 105,448 | 112,952 | 120,628 | 113,465 | 142,450 | 86,957 | 65,531 | 39,319 | 36,181 | 19,781 | 74,789 | 24,126 | 17,857 | 22,792 | 20,202 | 12,874 | |||||||||||||||||||||||||||||
Minimum [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Note Payable [line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt redemptions weighted average price | 85% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Note Payable [line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt redemptions weighted average price | 82% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Notes Payable [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Note Payable [line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note converted into common stock | 70,000 | 176,229 | 6,267 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price (in Dollars per share) | $ / shares | $ 0.4045 | $ 0.368 | $ 0.368 | $ 0.3765 | $ 0.513 | $ 0.513 | $ 0.546 | $ 0.579 | $ 0.666 | $ 1.0715 | $ 1.0715 | $ 1.4225 | $ 1.328 | $ 1.2435 | $ 1.322 | $ 1.404 | $ 2.875 | $ 3.815 | $ 3.815 | $ 4.145 | $ 4.55 | $ 4.145 | $ 4.145 | $ 5.6 | $ 8.775 | $ 9.9 | $ 15.645 | $ 29.79085 | $ 150 | |||||||||||||||||||||||||||
Interest expense (in Dollars) | $ 206,744 | $ 250,314 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
China Pharma’s [Member] | Common Stock [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Note Payable [line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price (in Dollars per share) | $ / shares | $ 75 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
China Pharma’s [Member] | Convertible Notes Payable [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Note Payable [line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note converted into common stock | 35,000 |
Leases (Details)
Leases (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 77,265 | $ 78,092 |
Operating lease payments | 80,647 | 82,015 |
Operating lease right of use assets | 116,610 | 39,046 |
Operating use liabilities | $ 117,637 | $ 40,445 |
Operating lease weighted average lease term | 1 year 6 months | |
Operating lease weighted average discount rate | 4.75% |
Leases (Details) - Schedule of
Leases (Details) - Schedule of Operating Lease Liabilities - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Operating Lease Liabilities [Abstract] | ||
2024 | $ 80,647 | |
2025 | 40,324 | |
Total undiscounted cash flows | 120,971 | |
Less: Imputed interest | (3,334) | |
Total | 117,637 | |
Less: Operating lease liabilities, current portion | (77,727) | $ (40,445) |
Operating lease liabilities, net of current portion | $ 39,910 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2023 | Dec. 31, 2022 | |
Income Taxes [Line Items] | |||
Enterprise income tax rate | 25% | ||
Operating loss carryforwards | $ 21,100,000 | ||
Operating loss carryforwards available for future taxable income | $ 5,100,000 | ||
Operating loss carryforwards limitations, descriptions | through 2039, and $4.8 million are available for carryforward indefinitely subject to a limitation of 80% of taxable income for each tax year | ||
Maximum [Member] | |||
Income Taxes [Line Items] | |||
U.S. federal corporate income tax rate | 35% | ||
Valuation allowance on deferred tax assets | $ 21,531,017 | ||
Minimum [Member] | |||
Income Taxes [Line Items] | |||
U.S. federal corporate income tax rate | 21% | ||
Valuation allowance on deferred tax assets | $ 21,467,355 | ||
Tax Year 2023 [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards | 3,400,000 | ||
United States Federal [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards | $ 9,900,000 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of Income Taxes Calculated at the Federal Statutory Rates - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Income Taxes Calculated at the Federal Statutory Rates [Abstract] | ||
(Benefit) tax at statutory rate of 25% | $ (769,704) | $ (973,717) |
Prior year refund received | ||
Other, primarily the difference in U.S. tax rates | 3,382 | 8,416 |
Change in valuation allowance | 766,322 | 965,301 |
Income tax expense |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of Income Taxes Calculated at the Federal Statutory Rates (Parentheticals) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Income Taxes Calculated at the Federal Statutory Rates [Abstract] | ||
(Benefit) tax at statutory rate | 25% | 25% |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of Deferred Income Tax Assets and Liability - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred income tax assets: | ||
Allowance for doubtful trade receivables | $ 3,446,519 | $ 4,184,882 |
Allowance for doubtful other receivables | 6,754 | 6,787 |
Inventory obsolescence reserve | 32,355 | 34,921 |
Stock compensation | 3,201 | 3,201 |
Expenses not deductible in current year | 1,069,198 | 1,087,328 |
Advances for intangible assets impairment | 9,619,060 | 9,782,172 |
Lease liability, net | 257 | 349 |
PRC net operating loss carry forward | 5,275,411 | 5,036,114 |
U.S. net operating loss carry forward | 2,078,262 | 1,849,800 |
Total deferred income tax assets | 21,531,017 | 21,985,554 |
Valuation allowance | (21,531,017) | (21,985,554) |
Net deferred income tax asset | ||
Deferred income tax liability: | ||
Intangible assets | $ 742,114 | $ 754,698 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Schedule of Assets and Liabilities Recorded at Fair Value - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Assets and Liabilities Recorded at Fair Value [Line Items] | ||
Total | $ 65,915 | $ 13,784 |
Banker's Acceptance Notes [Member] | ||
Schedule of Assets and Liabilities Recorded at Fair Value [Line Items] | ||
Total | 65,915 | 13,784 |
Level 1 [Member] | ||
Schedule of Assets and Liabilities Recorded at Fair Value [Line Items] | ||
Total | ||
Level 1 [Member] | Banker's Acceptance Notes [Member] | ||
Schedule of Assets and Liabilities Recorded at Fair Value [Line Items] | ||
Total | ||
Level 2 [Member] | ||
Schedule of Assets and Liabilities Recorded at Fair Value [Line Items] | ||
Total | 65,915 | 13,784 |
Level 2 [Member] | Banker's Acceptance Notes [Member] | ||
Schedule of Assets and Liabilities Recorded at Fair Value [Line Items] | ||
Total | 65,915 | 13,784 |
Level 3 [Member] | ||
Schedule of Assets and Liabilities Recorded at Fair Value [Line Items] | ||
Total | ||
Level 3 [Member] | Banker's Acceptance Notes [Member] | ||
Schedule of Assets and Liabilities Recorded at Fair Value [Line Items] | ||
Total |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 12 Months Ended | ||||||||
Oct. 04, 2022 | Oct. 03, 2022 | Sep. 09, 2021 | Dec. 31, 2023 | Dec. 17, 2023 | Dec. 31, 2022 | Dec. 27, 2022 | Dec. 27, 2021 | Dec. 23, 2020 | |
Stockholders' Equity [Line Items] | |||||||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | |||||||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 | |||||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | |||||||
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 | |||||||
After tax income, percentage | 10% | ||||||||
Reserve account balances, percentage | 50% | ||||||||
General and statutory capital reserves amount (in Dollars) | $ 8,145,000 | $ 8,145,000 | |||||||
Common stock reserved shares | 100,000 | 100,000 | |||||||
Total option outstanding | 13,300 | ||||||||
Additional shares available for issuance | 482,000 | ||||||||
Compensation expense (in Dollars) | $ 42,000 | ||||||||
Closing market price (in Dollars per share) | $ 7.5 | $ 7 | $ 33.5 | ||||||
Additional shares of common stock | 18,000 | ||||||||
Purchase of common stock | 12,000 | 1,300 | |||||||
Exercise price of per share (in Dollars per share) | $ 28 | $ 73.7 | |||||||
Options granted (in Dollars) | $ 36,270 | $ 15,243 | |||||||
Percentage of volatility | 115.50% | 118.40% | |||||||
Percentage of risk free interest rate | 3.84% | 0.75% | |||||||
Expected life, term | 2 years 6 months | 1 year 6 months | |||||||
Issued an aggregate | 35,200 | ||||||||
Price of per share (in Dollars per share) | $ 33.5 | ||||||||
Unpaid cash (in Dollars) | $ 1,179,200 | $ 864,480 | |||||||
Effective March 6, 2024 [Member] | |||||||||
Stockholders' Equity [Line Items] | |||||||||
Reverse stock split, description | 1-for -5 | ||||||||
Effective March 6, 2023 [Member] | |||||||||
Stockholders' Equity [Line Items] | |||||||||
Reverse stock split, description | 1-for-10 | ||||||||
2010 Incentive Plan [Member] | |||||||||
Stockholders' Equity [Line Items] | |||||||||
Common stock issued | 580,000 | ||||||||
Stock and stock option granted and outstanding | 84,700 | ||||||||
Minimum [Member] | |||||||||
Stockholders' Equity [Line Items] | |||||||||
Common stock reserved shares | 280,000 | 180,000 | 80,000 | ||||||
Maximum [Member] | |||||||||
Stockholders' Equity [Line Items] | |||||||||
Common stock reserved shares | 580,000 | 280,000 | 180,000 | ||||||
Common Stock [Member] | |||||||||
Stockholders' Equity [Line Items] | |||||||||
Issuance of common stock | 6,000 | 40,000 |
Risks & Uncertainties (Details)
Risks & Uncertainties (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Sales Benchmark [Member] | Customer Concentration Risk [Member] | Customer [Member] | ||
Risks & Uncertainties (Details) [Line Items] | ||
Concentration risk percentage | 10% | 10% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||
Risks & Uncertainties (Details) [Line Items] | ||
Concentration risk percentage | 62.59% | 52.90% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | ||
Risks & Uncertainties (Details) [Line Items] | ||
Concentration risk percentage | 13.50% | 11.40% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Three [Member] | ||
Risks & Uncertainties (Details) [Line Items] | ||
Concentration risk percentage | 10.40% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Product One [Member] | ||
Risks & Uncertainties (Details) [Line Items] | ||
Concentration risk percentage | 29.20% | 25% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Product Two [Member] | ||
Risks & Uncertainties (Details) [Line Items] | ||
Concentration risk percentage | 27.30% | 22.80% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Product Three [Member] | ||
Risks & Uncertainties (Details) [Line Items] | ||
Concentration risk percentage | 12.50% | 13.90% |
Suppliers One [Member] | Cost of Goods and Service Benchmark [Member] | Supplier Concentration Risk [Member] | ||
Risks & Uncertainties (Details) [Line Items] | ||
Concentration risk percentage | 13.80% | 21.70% |
Suppliers Two [Member] | Cost of Goods and Service Benchmark [Member] | Supplier Concentration Risk [Member] | ||
Risks & Uncertainties (Details) [Line Items] | ||
Concentration risk percentage | 11.10% |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | 12 Months Ended | |||||||
Feb. 16, 2024 | Feb. 01, 2024 | Jan. 11, 2024 | Dec. 31, 2023 | Feb. 21, 2024 | Feb. 05, 2024 | Jan. 16, 2024 | Dec. 31, 2022 | |
Subsequent Events [Line Items] | ||||||||
Aggregate transfer price | $ 1.365 | |||||||
Issuance of shares of common stock | 6,267 | |||||||
Common stock per share based | $ 0.455 | |||||||
Redemption percentage | 10% | |||||||
Share issued | 10,625,788 | 1,498,180 | ||||||
Common Stock [Member] | ||||||||
Subsequent Events [Line Items] | ||||||||
Issuance of shares of common stock | 3,000,000 | |||||||
Subsequent Event [Member] | ||||||||
Subsequent Events [Line Items] | ||||||||
Redemption amount | $ 150,000 | $ 150,000 | $ 150,000 | |||||
Redemption of weighted average percentage | 82% | 82% | 82% | |||||
Subsequent Event [Member] | Common Stock [Member] | ||||||||
Subsequent Events [Line Items] | ||||||||
Share issued | 402,685 | 380,228 | ||||||
Convertible Notes Payable [Member] | Subsequent Event [Member] | ||||||||
Subsequent Events [Line Items] | ||||||||
Conversion price | $ 0.3675 | $ 0.3725 | $ 0.3945 | |||||
Investor [Member] | Subsequent Event [Member] | Common Stock [Member] | ||||||||
Subsequent Events [Line Items] | ||||||||
Share issued | 408,164 |