Cover
Cover | 6 Months Ended |
Jun. 30, 2024 | |
Cover [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2024 |
Document Fiscal Period Focus | Q2 |
Document Fiscal Year Focus | 2024 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-35722 |
Entity Registrant Name | TAOPING INC. |
Entity Central Index Key | 0001552670 |
Entity Address, Address Line One | 21st Floor, Everbright Bank Building |
Entity Address, Address Line Two | Zhuzilin, Futian District |
Entity Address, City or Town | Shenzhen, Guangdong |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 518040 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 | |
CURRENT ASSETS | |||
Cash and cash equivalents | $ 480,300 | $ 1,300,855 | |
Advances to suppliers | 15,041,800 | 12,015,810 | |
Prepaid expenses | 148,782 | 349,558 | |
Inventories, net | 3,218,169 | 1,250,567 | |
Other current assets | 881,179 | 1,640,070 | |
TOTAL CURRENT ASSETS | 27,450,267 | 25,250,915 | |
Property, equipment and software, net | 6,130,763 | 6,677,484 | |
Long-term investments | 139,145 | 86,889 | |
Other assets, non-current, net | 359,519 | 811,026 | |
TOTAL ASSETS | 34,079,694 | 32,826,314 | |
CURRENT LIABILITIES | |||
Short-term bank loans | 7,950,679 | 8,547,509 | |
Accounts payable | 1,506,094 | 832,436 | |
Accrued payroll and benefits | 648,993 | 626,151 | |
Other payables and accrued expenses | 4,232,648 | 5,224,225 | |
Income tax payable | 53,894 | 55,262 | |
Convertible note payable | 350,930 | 449,215 | |
TOTAL CURRENT LIABILITIES | 18,241,825 | 20,063,017 | |
TOTAL LIABILITIES | 18,241,825 | 20,063,017 | |
EQUITY | |||
Ordinary shares, 2024 and 2023: par $0; authorized capital 100,000,000 shares; shares issued and outstanding, June 30, 2024: 6,626,051 shares; December 31, 2023: 2,891,822 shares*; | [1] | 168,279,087 | 165,115,938 |
Additional paid-in capital | 22,553,364 | 22,603,523 | |
Reserve | 10,209,086 | 10,209,086 | |
Accumulated deficit | (208,163,804) | (208,752,548) | |
Accumulated other comprehensive income | 22,960,136 | 23,587,298 | |
Total equity of the Company | 15,837,869 | 12,763,297 | |
Non-controlling interest | |||
Total Equity | 15,837,869 | 12,763,297 | |
TOTAL LIABILITIES AND EQUITY | 34,079,694 | 32,826,314 | |
Nonrelated Party [Member] | |||
CURRENT ASSETS | |||
Accounts receivable, net | 7,436,851 | 8,063,280 | |
CURRENT LIABILITIES | |||
Advances from customers | 1,881,098 | 1,199,732 | |
Related Party [Member] | |||
CURRENT ASSETS | |||
Accounts receivable, net | 243,186 | 630,775 | |
CURRENT LIABILITIES | |||
Advances from customers | 35,606 | 90,880 | |
Amounts due to related parties | $ 1,581,883 | $ 3,037,607 | |
[1]On August 1, 2023, the Company implemented a one-for-ten reverse stock split |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, no par value | $ 0 | $ 0 |
Ordinary shares, shares authorized | 100,000,000 | 100,000,000 |
Ordinary shares, shares issued | 6,626,051 | 2,891,822 |
Ordinary shares, shares outstanding | 6,626,051 | 2,891,822 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) ¥ in Millions | 6 Months Ended | ||
Jun. 30, 2024 USD ($) $ / shares | Jun. 30, 2023 USD ($) $ / shares | ||
TOTAL REVENUE | [1] | $ 18,078,547 | $ 14,078,009 |
TOTAL COST | 13,937,855 | 10,203,109 | |
GROSS PROFIT | 4,140,692 | 3,874,900 | |
Administrative expenses | 2,781,775 | 3,750,087 | |
Research and development expenses | 1,224,244 | 1,585,894 | |
Selling expenses | 259,029 | 215,152 | |
(LOSS) FROM OPERATIONS | (124,356) | (1,676,233) | |
Subsidy income | 43,641 | 142,324 | |
Income (loss) from long-term investments | 70,968 | (836) | |
Other income (loss), net | 954,447 | 40,767 | |
Interest expense and debt discounts, net of interest income | (350,609) | (261,812) | |
Income (loss) before income taxes | 594,091 | (1,755,790) | |
Income tax expense | (5,347) | (34,513) | |
Net income (loss) from continuing operations | 588,744 | (1,790,303) | |
Net income (loss) from discontinued operations | (18,727) | ||
NET INCOME (LOSS) | 588,744 | (1,809,030) | |
Less: Net income (loss) attributable to the non-controlling interest | |||
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY | [2] | $ 588,744 | $ (1,809,030) |
Income (loss) per share – Basic and Diluted* | |||
Basic | $ / shares | [3] | $ 0.13 | $ (1.09) |
Diluted | $ / shares | [3] | 0.13 | (1.09) |
DISCONTINUED OPERATIONS | |||
Basic | $ / shares | [3] | (0.01) | |
Diluted | $ / shares | [3] | (0.01) | |
NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO THE COMPANY* | |||
Basic | $ / shares | [2],[3] | 0.13 | (1.10) |
Diluted | $ / shares | [2],[3] | $ 0.13 | $ (1.10) |
Product [Member] | |||
TOTAL REVENUE | $ 11,242,840 | $ 8,074,534 | |
TOTAL COST | 10,276,804 | 7,386,299 | |
Products Related Parties [Member] | |||
TOTAL REVENUE | 133,832 | 71,420 | |
Software [Member] | |||
TOTAL REVENUE | 4,007,671 | 3,777,209 | |
TOTAL COST | 1,282,985 | 1,711,442 | |
Advertising [Member] | |||
TOTAL REVENUE | 2,568,614 | 1,316,932 | |
TOTAL COST | 2,376,672 | 1,090,137 | |
Product and Service, Other [Member] | |||
TOTAL REVENUE | 124,630 | 835,555 | |
TOTAL COST | 1,394 | 15,231 | |
Other Related Parties [Member] | |||
TOTAL REVENUE | $ 960 | $ 2,359 | |
[1]Revenues by operating segments exclude intercompany transactions.[2]On August 1, 2023, the Company implemented a one-for-ten reverse stock split one-for-ten reverse stock split |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Unaudited) (Parenthetical) | Aug. 01, 2023 |
Income Statement [Abstract] | |
Reverse stock split | one-for-ten reverse stock split |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||
Net income (loss) | $ 588,744 | $ (1,809,030) |
Other comprehensive loss: | ||
Foreign currency translation loss | (627,162) | (93,674) |
Comprehensive income (loss) | (38,418) | (1,902,704) |
Comprehensive loss attributable to the non- controlling interest | ||
Comprehensive income (loss) attributable to the Company | $ (38,418) | $ (1,902,704) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Reserve [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Total | ||
BALANCE at Dec. 31, 2022 | $ 161,404,797 | [1] | $ 22,447,083 | $ 10,209,086 | $ (208,054,607) | $ 23,610,333 | $ 9,616,692 | ||
Beginning balance, shares at Dec. 31, 2022 | [1] | 1,587,371 | |||||||
Net income (loss) | [1] | (1,809,030) | (1,809,030) | ||||||
Foreign currency translation gain | [1] | (93,674) | (93,674) | ||||||
Stock-based payment for consulting fee (Note 18) | $ 340,000 | [1] | 340,000 | ||||||
Stock-based payment for consulting fee, shares | [1] | 50,000 | |||||||
Issued common stock for Equity Incentive Plan (Note 18) | $ 1,360,000 | [1] | 1,360,000 | ||||||
Issued common stock for Equity Incentive Plan, shares | [1] | 200,000 | |||||||
Common stock issued for business acquisition | $ 49,218 | [1] | 49,218 | ||||||
Common stock issued for business acquisition, shares | [1] | 6,718 | |||||||
BALANCE at Jun. 30, 2023 | $ 163,154,015 | [1] | 22,447,083 | 10,209,086 | (209,863,637) | 23,516,659 | 9,463,206 | ||
Ending balance, shares at Jun. 30, 2023 | [1] | 1,844,089 | |||||||
BALANCE at Dec. 31, 2023 | $ 165,115,938 | [1] | 22,603,523 | 10,209,086 | (208,752,548) | 23,587,298 | 12,763,297 | ||
Beginning balance, shares at Dec. 31, 2023 | [1] | 2,891,822 | |||||||
Issuance of ordinary shares for financing (Note 18) | $ 2,887,990 | [1] | 2,887,990 | ||||||
Issuance of ordinary shares for financing, shares | [1] | 3,440,000 | |||||||
Conversion of convertible note (Note 15) | $ 275,159 | [1] | (50,159) | 225,000 | |||||
Conversion of convertible notes, shares | [1] | 294,229 | |||||||
Net income (loss) | [1] | 588,744 | 588,744 | ||||||
Foreign currency translation gain | [1] | (627,162) | (627,162) | ||||||
BALANCE at Jun. 30, 2024 | $ 168,279,087 | [1] | $ 22,553,364 | $ 10,209,086 | $ (208,163,804) | $ 22,960,136 | $ 15,837,869 | ||
Ending balance, shares at Jun. 30, 2024 | [1] | 6,626,051 | |||||||
[1]On August 1, 2023, the Company implemented a one-for-ten reverse stock split |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Unaudited) (Parenthetical) | Aug. 01, 2023 |
Statement of Stockholders' Equity [Abstract] | |
Reverse stock split | one-for-ten reverse stock split |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ 588,744 | $ (1,809,030) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Provision for credit losses on accounts receivable, other current assets, and advances to suppliers: | 1,697,478 | 973,909 |
Provision for obsolete inventories | 10,736 | 8,458 |
Depreciation | 1,129,724 | 1,510,586 |
Amortization of intangible assets and other asset | 66,382 | |
Amortization of convertible note discount | 96,979 | |
Stock-based payments for consulting services | 136,000 | 32,603 |
Stock-based compensation to employees | 1,360,000 | |
Loss on sale of property and equipment | 46,716 | |
Loss on dissolution of a subsidiary | 83,590 | |
(Income) loss on long-term investments | (70,968) | 23,597 |
Exchange difference | (405,086) | |
Changes in operating assets and liabilities: | ||
(Increase) decrease in accounts receivable | (523,008) | 2,167,863 |
Decrease in accounts receivable - related parties | 375,384 | 35,420 |
Increase in inventories | (1,850,538) | (5,662,408) |
Decrease in other non-current assets | 435,384 | 469,271 |
Decrease (increase) in other current assets and prepaid expenses | 642,965 | (52,530) |
(Increase) decrease in advances to suppliers | (3,870,028) | 75,810 |
Decrease in other payables and accrued expenses | (673,810) | (69,239) |
Increase in advances from customers | 717,987 | 141,601 |
Decrease in advances from customers - related parties | (53,510) | (1,869) |
Decrease in amounts due to related parties | (1,393,175) | |
Increase (decrease) in accounts payable | 291,561 | (200,632) |
Increase in payroll payable and benefits | 35,208 | 253,721 |
Decrease in lease liability | (3,022) | |
Increase in income tax payable | 28,904 | |
Net cash used in operating activities | (2,532,001) | (670,271) |
INVESTING ACTIVITIES | ||
Proceeds from sales of property and equipment | 237,635 | |
Purchases of property and equipment | (776,838) | (564,311) |
Consideration paid for acquisition | (21,394) | |
Net cash used in investing activities | (776,838) | (348,070) |
FINANCING ACTIVITIES | ||
Borrowings from related parties | 433,173 | |
Repayment of short-term bank loans | (388,690) | (86,779) |
Issued common stock | 2,887,990 | |
Net cash provided by financing activities | 2,499,300 | 346,394 |
Effect of exchange rate changes on cash and cash equivalents | (11,016) | 110,570 |
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (820,555) | (561,377) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING | 1,300,855 | 1,023,240 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING | 480,300 | 461,863 |
Cash paid during the year | ||
Income taxes | 10,876 | 34,513 |
Interest | 233,330 | |
Reconciliation to amounts on consolidated balance sheets | ||
Cash and cash equivalents from continuing operations | 480,300 | 460,147 |
Cash and cash equivalents from discontinued operations | 1,716 | |
Total cash, cash equivalents, and restricted cash | $ 480,300 | $ 461,863 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) | 1 Months Ended | |
May 31, 2023 | Apr. 30, 2023 | |
Consultant [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Issuance of shares | 50,000 | |
Issuance of shares, value | $ 340,000 | |
Consultant [Member] | Restricted Stock [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Issuance of shares | 50,000 | |
Directors Executive Officers and Employees [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Issuance of shares | 200,000 | |
Issuance of shares, value | $ 1,360,000 | |
Zhenjiang Taoping IoT Tech. Co., Ltd (ZJIOT) [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Issuance of shares, acquisition | 6,718 | |
Issuance of shares acquisition, value | $ 49,000 |
ORGANIZATION, PRINCIPAL ACTIVIT
ORGANIZATION, PRINCIPAL ACTIVITIES AND MANAGEMENT’S PLANS | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION, PRINCIPAL ACTIVITIES AND MANAGEMENT’S PLANS | 1. ORGANIZATION, PRINCIPAL ACTIVITIES AND MANAGEMENT’S PLANS Taoping Inc. (f/k/a China Information Technology, Inc.), together with its subsidiaries (the “Company”), is a provider of cloud-based technologies for Smart City IoT platforms, digital advertising delivery, and other internet-based information distribution systems in China. Its Internet ecosystem enables all participants of the new media community to efficiently promote branding, disseminate information, and exchange resources. In addition, the Company provides a broad portfolio of software and hardware with fully integrated solutions, including information technology infrastructure, Internet-enabled display technologies, and IoT platforms to customers in government, education, residential community management, media, transportation, and other private sectors. In May 2018, we changed our corporate name from “China Information Technology Inc.” to “Taoping Inc.”, to reflect our current business operations in the new media and IoT industries. In 2021, Information Security Tech International Co. Ltd. (“IST HK”), one of the Company’s Hong Kong subsidiaries then, changed its corporate name to Taoping Group (China) Ltd. to reflect the Company’s current corporate structure to be in line with the new business strategies. As listed in the table below, these services are provided through the Company’s operating subsidiaries, primarily in Hong Kong and mainland China. In June 2021, the Company consummated an acquisition of 100 24.6 51 In 2021, the Company launched blockchain related new business in cryptocurrency mining operations and newly established subsidiaries in Hong Kong to supplement its diminished Traditional Information Technology (TIT) business segment as a part of new business transformation. However, due to the decreased output and the highly volatile cryptocurrency market, the Company had ceased the operation of cryptocurrency mining business by December 2022, and continues to focus the efforts on its digital adverting, smart display and the newly added smart community and related businesses. As the cessation of the operation of cryptocurrency mining business represent a strategic shift in the Company’s strategy that will have a major effect on the Company’s operations and financial results, the operations of cryptocurrency mining business have been presented as “discontinued operations” in the Company’s consolidated financial statements. See Note 10. In September 2021, the Company and the Company’s wholly owned subsidiary, Information Security Technology (China) Co., Ltd. (“IST”) entered into an equity transfer agreement with Mr. Jianghuai Lin, the sole shareholder of iASPEC Technology Group Co., Ltd. (“iASPEC”). Upon closing of the equity transfer, the Company’s variable interest entity structure was dissolved and iASPEC became a wholly owned indirect subsidiary of the Company. In January 2022, the Company completed the acquisition of 100 As a result of the Company’s business transformation and its exit from the TIT business, the Company disposed of 100 nil 3.0 The Company disposed of 100 nil 100 nil 16,184 In May 2023, the Company established a subsidiary Taoping EP Holdings (Shenzhen) Co., Ltd. with a majority stake of 51 In September 2023, the Company acquired 80 nil 100 In November 2023, the Company established a subsidiary Taoping (Guangxi) EP Tech Co., Ltd. to expand its wastewater treatment business in Guangxi Province. In April 2024, the Company established a subsidiary Taoping Industrial (Yunnan) Co., Ltd. to explore business of cross-border trades and services in Yunnan Province. In June 2024, ZJIOT was dissolved as a result of the Company’s business realignment. TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS The following table lists our subsidiaries as of the respective date as indicated below. SCHEDULE OF SUBSIDIARIES AND VARIABLE INTEREST ENTITY Entities Subsidiaries June 30, 2024 % owned December 31, 2023 % owned December 31, 2022 % owned Location Taoping Inc. British Virgin Islands Taoping Holdings Limited (THL) Subsidiary 100 % 100 % 100 % British Virgin Islands Taoping Group (China) Ltd. (IST HK) Subsidiary 100 % 100 % 100 % Hong Kong, China Taoping Digital Assets (Asia) Limited (TDAL) Subsidiary - - 100 % Hong Kong, China Taoping Digital Assets (Hong Kong) Limited (TDL) Subsidiary - - 100 % Hong Kong, China Taoping Capital Limited (TCL) Subsidiary - - 100 % Hong Kong, China Kazakh Taoping Operation Management Co. Ltd. (KTO) Subsidiary - - 100 % Kazakhstan Kazakh Taoping Data Center Co. Ltd. (KTD) Subsidiary - - 100 % Kazakhstan Information Security Tech. (China) Co., Ltd. (IST) Subsidiary 100 % 100 % 100 % Shenzhen, China TopCloud Software (China) Co., Ltd. (TopCloud) Subsidiary 100 % 100 % 100 % Shenzhen, China Information Security IoT Tech. Co., Ltd. (ISIOT) Subsidiary 100 % 100 % 100 % Shenzhen, China Biznest Internet Tech. Co., Ltd. (Biznest) Subsidiary 100 % 100 % 100 % Shenzhen, China iASPEC Bocom IoT Tech. Co., Ltd. (Bocom) Subsidiary 100 % 100 % 100 % Shenzhen, China Taoping New Media Co., Ltd. (TNM) Subsidiary 100 % 100 % 100 % Shenzhen, China TopCloud Tech. (Chenzhou) Co., Ltd. (TCTCZ) Subsidiary - - 100 % Chenzhou, China Taoping Digital Tech. (Jiangsu) Co., Ltd. (TDTJS) Subsidiary 100 % 100 % 100 % Jiangsu, China Zhenjiang Taoping IoT Tech. Co., Ltd. (ZJIOT) Subsidiary - 100 % 100 % Zhenjiang, China Taoping EP Holdings (Shenzhen) Co., Ltd. (TEPH) Subsidiary 51 % 51 % - Shenzhen, China Fujian Taoping Investment Co., Ltd. (FJTI) Subsidiary 100 % 100 % - Fujian, China Taoping (Guangxi) EP Tech. Co., Ltd. (TPGXT) Subsidiary 100 % 100 % - Guangxi, China Taoping Industrial (Yunnan) Co., Ltd. (TIYN) Subsidiary 100 % - - Yunnan, China TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Dissolution of the Variable Interest Entity Structure iASPEC was a VIE of the Company. To comply with PRC laws and regulations that restrict foreign ownership of companies that provide public security information technology and Geographic Information Systems software operating services to certain government and other customers, the Company used to operate the restricted aspect of its business through iASPEC. In September 2021, we dissolved the variable interest entity structure by exercising the purchase option under certain Option Agreement among IST, iASPEC and its shareholders, to purchase all of the equity interests in iASPEC at an aggregate exercise price of $ 1,800,000 61,225 1,800,000 Upon the closing of the equity transfer, the Company’s variable interest entity structure was dissolved and iASPEC became a wholly owned indirect subsidiary of the Company. The amended and restated MSA was automatically terminated. Going Concern and Management’s Plans As a result of the recovery of the market conditions and customer demands, as well as the Company’s continued efforts in diversifying applications of its innovative Taoping smart cloud, the Company’s revenue achieved 28.4 0.6 1.8 2.5 0.7 9.2 5.2 The Company will continue to focus its efforts on the digital advertising and other cloud-based and AI-related products and applications. Furthermore, its two core competencies, the Taoping national sales network and the highly scalable and compatible cloud platform, and its strong software development capability, make it a valued partner by many other smart-community customers and solution providers. In addition to seeking strategic acquisition to expand its digital advertising business, the Company continues to explore business opportunities in the smart community and new energy sectors. Starting from April 2023, the Company has entered into a series of long-term strategic cooperation agreements with various customers to provide Taoping’s cloud-based intelligent product solutions, including smart large screen, and the newly-launch Al-powered smart display terminal, which are expected to generate revenue and operating cashflow for the Company for years going forward. If the Company’s execution of business strategies is not successful in addressing its current financial concerns, additional capital raise from issuing equity security or debt instrument or additional loan facility may occur to support required cash flows. The Company’s existing $ 8.0 million revolving bank loan, which was collateralized with the Company’s office property, provides important capital support for its operation. In addition, the Company has renewed bank facilities valued at approximately $ 1.8 million in July 2024, and is in the process of renewing the other bank facility line. In addition, on July 17, 2023, the Company entered into both a public standby equity purchase agreement and a private standby equity purchase agreement with an investor. Pursuant to the agreements, the Company has the right, but not the obligation, to sell to the investor up to $ 1,000,000 and $ 10,000,000 , respectively, of its ordinary shares, within 24 months and 36 months, respectively, from the date of the agreements. As of August 31, 2024, the Company had received a total of approximately $ 5.0 million in gross proceeds under these two equity line financings. In conclusion, the Company believes that it has the ability to raise needed capital to fund its operations and business growth, and is able to operate as a going concern. However, the Company can make no assurances that financing will be available for the amounts we need, or on terms commercially acceptable to us, if at all. If one or all of these events do not occur or subsequent capital raise was insufficient to bridge financial and liquidity shortfall, substantial doubt exists about the Company’s ability to continue as a going concern. The consolidated financial statements have been prepared assuming that the Company will continue as a going concern and, accordingly, do not include any adjustments that might result from the outcome of this uncertainty. TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Presentation and Principles of Consolidation The consolidated financial statements as of June 30, 2024 and for the six-month periods ended June 30, 2024 and 2023 are unaudited. The accompanying unaudited consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial reporting. In the opinion of management, all adjustments (consisting of normal recurring adjustments) have been made that are necessary to present fairly the financial position, the results of its operations and cash flows. Operating results as presented are not necessarily indicative of the results to be expected for a full year. These consolidated financial statements and related notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 20-F for the year ended December 31, 2023 filed on April 25, 2024 with the Securities and Exchange Commission. The consolidated financial statements include the accounts of the Company, and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Reverse Stock Split: A one-for-ten reverse stock split (b) Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. The Company’s significant estimates include assessment of credit losses and useful lives of property and equipment. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ from those estimates. TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (c) Economic, Pandemic, Political, and Currency Exchange Risks All the Company’s revenue-generating operations are conducted in Hong Kong and mainland China. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic, public health, and legal environments in the PRC, and by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks that are not typically pertaining to the companies in North America and Western Europe. These include risks associated with, among others, the political, economic, public health concerns with persistent outbreaks of COVID-19 infections in various regional localities, and legal environments, geopolitical influences, and foreign currency exchange, notably in recent events, where the government’s sudden interventions or modifications of the laws and regulations currently in effective could negatively impact the Company’s operations and financial results. The functional currency of the Company is primarily Chinese Renminbi Yuan (“RMB”), which is not freely convertible into foreign currencies. The Company cannot guarantee that the current exchange rate will remain steady. Therefore, there is a possibility that the Company could post the same amount of profit for two comparable periods and yet, because of fluctuating exchange rates, record higher or lower profit depending on exchange rate of RMB. RMB converted to U.S. dollars on the relevant dates. The exchange rate could fluctuate depending on changes in the political and economic environment without notice. (d) Cash and Cash Equivalents The Company considers all highly liquid investments purchased and cash deposits with financial institutions with original maturities of three months or less to be cash equivalents. The Company had no The Company maintains its bank accounts at credit worthy financial institutions and closely monitors the movements of its cash positions. As of June 30, 2024, and December 31, 2023, approximately $ 0.5 1.3 (e) Accounts Receivable, Accounts Receivable – related parties, and Concentration of Risk Accounts receivable are recognized and carried at carrying amount less an allowance for credit loss, if any. The Company maintains an allowance for credit losses resulting from the inability of its customers to make required payments based on contractual terms. The Company reviews the collectability of its receivables on a regular and ongoing basis according to historical trend, and estimates its provision for expected credit losses on receivables aging analysis. The Company estimates allowance for credit losses for the anticipation of future economic condition and credit risk indicators of customers. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. In the event the Company recovers amounts previously reserved for, the Company will reduce the specific allowance for credit losses. The balance of allowance for credit losses for the six-month ended June 30, 2024 has decreased approximately $ 18.7 TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Accounts receivable as of June 30, 2024 and December 31, 2023 are as follows: SCHEDULE OF ACCOUNTS RECEIVABLE June 30, 2024 December 31, 2023 (Unaudited) Accounts Receivable $ 14,234,246 $ 19,471,159 Allowance for credit losses (6,797,395 ) (11,407,879 ) Accounts Receivable, net $ 7,436,851 $ 8,063,280 Accounts Receivable - related parties $ 342,123 $ 14,814,842 Allowance for credit losses - related parties (98,937 ) (14,184,067 ) Accounts Receivable - related parties, net $ 243,186 $ 630,775 The normal credit term is ranging from 1 month to 3 months after the customers’ acceptance of data storage servers or software, and completion of advertising and other services, and ranging from 1 month to 6 months after the customers’ acceptance of ads display terminals. However, because of various factors related to the business cycle, the actual collection of outstanding accounts receivable may be beyond the normal credit terms. The allowance for credit losses at June 30, 2024 and December 31, 2023, totaled approximately $ 6.9 25.6 SCHEDULE OF ALLOWANCE FOR CREDIT LOSSES Balance at January 1, 2023 $ 25,484,295 Increase in allowance for credit losses 794,087 Foreign exchange difference (686,436 ) Balance at December 31, 2023 $ 25,591,946 Increase in allowance for credit losses 938,628 Decrease from dissolution of a subsidiary (1,119 ) Amounts written off as uncollectible (18,751,521 ) Foreign exchange difference (881,602 ) Balance at June 30, 2024 (Unaudited) $ 6,896,332 TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (f) Fair Value Accounting Financial Accounting Standards Board (FASB) Accounting Standards Codifications (ASC) 820-10 “Fair Value Measurements and Disclosures”, establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). As required by FASB ASC 820-10, assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy under FASB ASC 820-10 are described below: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). (g) Inventories, net Inventories are valued at the lower of cost (weighted average basis) and net realizable value. Net realizable value is the expected selling price in the ordinary course of business minus any costs of completion, disposal, and transportation to make the sale. The Company performs an analysis of slow-moving or obsolete inventory periodically and any necessary valuation reserves, which could potentially be significant, are included in the period in which the evaluations are completed. Any inventory impairment results in a new cost basis for accounting purposes. TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (h) Property, equipment and software, net Property, equipment and software are stated at cost less accumulated amortization and depreciation. Amortization and depreciation are provided over the assets’ estimated useful lives, using the straight-line method. Estimated useful lives of property, equipment and software are as follows: SCHEDULE OF PROPERTY , EQUIPMENT AND SOFTWARE ESTIMATED USEFUL LIVES Office buildings 20 50 Lease improvement Shorter of lease term or assets lives Electronics equipment, furniture and fixtures 3 5 Motor vehicles 5 Purchased software 5 Media display equipment 5 Cryptocurrency mining machine 3 Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss are included in the Company’s results of operations. TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (i) Business combination In accordance with ASC 805, the Company applies acquisition method to account for business combination. The acquisition method requires that the fair value of the underlying exchange transaction is used to establish a new accounting basis of the acquired entity upon the acquirer taking control over the acquiree. Furthermore, because of obtaining control the acquirer is responsible and accountable for all of the acquiree’s assets, liabilities and operations, the acquirer recognizes and measures the assets acquired and liabilities assumed at their full fair values as of the date control is obtained, which may result in goodwill, when purchase consideration exceeds the net of fair value of the assets acquired and liabilities assumed, or a bargain purchase gain, when the net of fair value of the assets acquired and liabilities assumed exceeds the purchase consideration, regardless of the percentage ownership in the acquiree or how the acquisition was achieved. (j) Disposal of subsidiary The Company deconsolidates a subsidiary upon the loss of control, the related subsidiary’s assets (including goodwill), liabilities, non-controlling interest and other components of equity are de-recognized. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss. Any consideration received is recognized at fair value. Any resultant gain or loss is recognized in the Statement of Operations. (k) Long-term investment The Company’s long-term investment consists of investments accounted for under the equity method and equity investments without readily determinable fair value. Pursuant to ASC 321, equity investments, except for those accounted for under the equity method, those that result in consolidation of the investee and certain other investments, are measured at fair value, and any changes in fair value are recognized in earnings. For equity securities without readily determinable fair value and do not qualify for the existing practical expedient in ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”) to estimate fair value using the net asset value per share (or its equivalent) of the investment, the Company elected to measure those investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. For equity investments that the Company elects to measure at cost, less any impairment, plus or minus changes resulting from observable price changes, the Company makes a qualitative assessment considering impairment indicators to evaluate whether investments are impaired at each reporting date. Impairment indicators considered include, but are not limited to, a significant deterioration in the earnings performance or business prospects of the investee, including factors that raise significant concerns about the investee’s ability to continue as a going concern, a significant adverse change in the regulatory, economic, or technologic environment of the investee and a significant adverse change in the general market condition of either the geographical area or the industry in which the investee operates. If a qualitative assessment indicates that the investment is impaired, the entity has to estimate the investment’s fair value in accordance with the principles of ASC 820. For equity investments without readily determinable fair value, the Company uses Level 3 inputs of fair value accounting in accordance with ASC 820-10 and recognizes impairment loss other than temporary in the statement of operations equal to the difference between its initial investment and its proportional share of the net book value of the investee’s net assets which approximates its fair value. For impairment on equity investments without readily determinable fair value, the Company uses Level 3 inputs of fair value accounting in accordance with ASC 820-10 and recognizes impairment loss in the statement of operations equal to the difference between its initial investment and its proportional share of the net book value of investee’s net assets which approximates its fair value if those are determined to be other than temporary. TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (l) Convertible promissory note The Company determines the appropriate accounting treatment of its convertible debts in accordance with the terms in relation to conversion features. After considering the impact of such features, the Company may account for such instrument as a liability in its entirety, or separate the instrument into debt and equity components following the guidance described under ASC 815 Derivatives and Hedging and ASC 470 Debt. The debt discount, if any, together with related issuance cost are subsequently amortized as interest expense over the period from the issuance date to the earliest conversion date or stated redemption date. The Company presented the issuance cost of debt in the balance sheet as a direct deduction from the related debt. (m) Operating leases - Right-of-use assets and lease liabilities The Company accounts for lease under ASC 842 “Leases”, and also elects practical expedient not to separate non-lease component from lease components in accordance with ASC 842-10-15-37 and instead to account for each separate lease component and the non-lease components associated with that lease component as a single lease component. The Company also elects the practical expedient not to recognize lease assets and lease liabilities for leases with a term of 12 months or less. The Company recognized a lease liability and corresponding right-of-use asset based on the present value of minimum lease payments discounted at the Company’s incremental borrowing rate. The Company records amortization and interest expense on a straight-line basis based on lease terms and reduces lease liabilities upon making lease payments. (n) Revenue Recognition In accordance with the ASC 606, the Company recognizes revenues net of applicable taxes, when goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to receive in exchange for those goods or services. The Company generates its revenues primarily from four sources: (1) product sales, (2) software sales, (3) advertising and (4) other sales. Revenue is recognized when obligations under the terms of a contract with our customers are satisfied, generally, upon delivery of the goods and services. Revenue - Products Product revenues are generated primarily from the sale of Cloud-Application-Terminal based digital ads display terminals with integrated software essential to the functionality of the hardware to our customers (inclusive of related parties) and high-end data storage servers. Although manufacturing of the products has been outsourced to the Company’s Original Equipment Manufacturer (OEM) suppliers, the Company has acted as the principal of the contract. The Company recognized the product sales at the point of delivery. Product sales are classified as “Revenue-Products” on the Company’s consolidated statements of operations. TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Revenue - Software The Company designs and develops software products. Software development usually includes developing software, integrating various isolated software systems into one, and testing the software. The design and build process, together with the integration of the various elements, are generally determined to be essential to the functionality of the delivered software. The Company recognized the software sales at the point of delivery. The Company usually completes the software support service in one-off and recognizes the revenue at the point of delivery of service because the Company does not have an enforceable right to payment for performance completed to date. Revenues from software development contracts are classified as “Revenue-Software” on the Company’s consolidated statements of operations. Revenue - Advertising The Company generates revenues primarily from providing advertising slots to customers to promote their businesses by broadcasting advertisements on identifiable digital ads display terminals and vehicular ads display terminals in different geographic regions and locations through a cloud-based new media sharing platform. The Company also contracts individuals to promote special events or for various occasions. The Company is only obligated to broadcast the advertisements to the contracted digital ads display terminals, and therefore allocates 100 The Company recognizes the revenues, net of applicable taxes, from advertisement broadcasting contracts with customers over the contracted advertising duration. TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Revenue - Other The Company also reports other revenue which comprises revenue generated from System upgrade and technical support services, platform service fee, and rental income. System upgrade and technical support revenue is recognized when performance obligations are satisfied upon completion of the services. Platform service fee is charged based on number of the display terminals used by the customers or a percentage of advertising revenue generated by the display terminals. Platform service revenue is recognized on a monthly basis over the contract period. The Company follows ASC 842 – Leases that requires lessor to identify the underlying assets and allocate rental income among considerations in lease and non-lease components. The Company owns a unit of office space renting out to a third party with lease term of two years starting from May 1, 2022 to April 30, 2024, and the lease term is extended by two years to April 30, 2026. 123,000 128,000 SCHEDULE OF ANNUAL MINIMUM RENTAL INCOME RECEIVED Annual minimum rental income to be received in the next 5 years: 2024 123,405 2025 246,811 2026 82,270 Total 452,486 Contract balances The Company records advances from customers when cash payments are received or due in advance of our performance. For the six months ended June 30, 2024 and 2023, the Company recognized revenue of approximately $ 682,000 463,000 Practical expedients and exemptions The Company generally expenses sales commissions if any incurred because the amortization period would have been one year or less. In many cases, the Company is approached by customers for customizing software products for their specific needs without incurring significant selling expenses. The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. (o) Cost of Sales - advertising The cost of sales for advertising revenue mainly comprises of direct costs of generating advertising revenue including lease expense for the wall space, to where the ads display terminal to be installed, installation costs of ads display terminals, depreciation of display termination, labor, and other related expenses. The Company had ceased the operation of cryptocurrency mining business by December 2022. TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (p) Discontinued Operations The Company follows “ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” for reporting discontinued operations. Under the revised standard, a discontinued operation must represent a strategic shift that has or will have a major effect on an entity’s operations and financial results. Examples could include a disposal of a major line of business, a major geographical area, a major equity method investment, or other major parts of an entity. The revised standard also allows an entity to have certain continuing cash flows or involvement with the component after the disposal. Additionally, the standard requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. (q) Segment reporting Segment information is consistent with how the Chief Operating Decision Maker, i.e., the Directors of the Company, review the businesses, make investing and resource allocation decisions and assess operating performance. Transfers and sales between reportable segments, if any, are recorded at cost. The Company reports financial and operating information in the following three segments: (1) Cloud-based Technology (CBT) segment — It includes the Company’s cloud-based products, high-end data storage servers and related services sold to private sectors including new media, healthcare, education and residential community management, and among other industries and applications. In this segment, the Company generates revenues from the sales of hardware and software total solutions with proprietary software and content as well as from designing and developing software products specifically customized for private sector customers’ needs for a fixed price. The Company includes the revenue and cost of revenue of high-end data storage servers in the CBT segment. Advertising services is included in the CBT segment, after the Company consummated the acquisition of TNM. Advertisements are delivered to the ads display terminals and vehicular ads display terminals through the Company’s cloud-based new media sharing platform. Incorporation of advertising services complements the Company’s out-of-home advertising business strategy. (2) Traditional Information Technology (TIT) segment — The TIT segment includes the Company’s project-based technology products and services sold to the public sector. The solutions the Company has sold primarily include Geographic Information Systems (GIS), Digital Public Security Technology (DPST), and Digital Hospital Information Systems (DHIS). In this segment, the Company generates revenues from sales of hardware and system integration services. As a result of the business transformation, the TIT segment is gradually being phased out in 2021. TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (r) Recent Accounting Pronouncements In March 2023, the FASB issued ASU 2023-01, “Leases (Topic 842): Common Control Arrangements” for common control lease arrangements and related leasehold improvements. This ASU was effective for fiscal years beginning after December 15, 2023 and did not have a material impact on the Company’s consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which requires public entities to disclose expanded information about their reportable segment(s)’ significant expenses and other segment items on an interim and annual basis. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The ASU is required to be applied retrospectively to all prior periods presented in the financial statements once adopted. The Company is evaluating the disclosure requirements related to the new standard. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires public entities to disclose specific tax rate reconciliation categories, as well as income taxes paid disaggregated by jurisdiction, amongst other disclosure enhancements. The ASU is effective for financial statements issued for annual periods beginning after December 15, 2024, with early adoption permitted. The ASU can be adopted on a prospective or retrospective basis. The Company is evaluating the disclosure requirements related to the new standard. The Company has considered all other recently issued accounting pronouncements and does not believe that the adoption of such pronouncements will have a material impact on the consolidated financial statements. TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS |
BUSINESS ACQUISITION
BUSINESS ACQUISITION | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
BUSINESS ACQUISITION | 3. BUSINESS ACQUISITION On January 13, 2022, the Company entered into a share purchase agreement to acquire 95.56 20,154 6,718 6,718 6,718 2.5 0.5 2.6 0.55 100 The total fair value of the contingent consideration presented as other current liability is in accordance with ASC 820-10 “Fair Value Measurements and Disclosures”. The approximately 20,154 The following table summarizes the purchase price allocation for ZJIOT, and the amounts of the assets acquired, and liabilities assumed which were based on their estimated fair values at the acquisition date: SCHEDULE OF BUSINESS ACQUISITION ASSETS ACQUIRED, AND LIABILITIES ASSUMED Cash $ 4,116 Accounts receivable, net 260,189 Advances to suppliers 4,252 Other receivables, net 2,532 Property, plant and equipment, net 215,689 Accounts payable (250,706 ) Advances from customers (8,046 ) Accrued payroll and benefits (10,633 ) Other payables and accrued expenses (8,923 ) Total net assets acquired 208,470 Goodwill 58,922 Total purchase price $ 267,392 The Company’s consolidated statement of operations for the year ended December 31, 2022 included revenue of $ 0.6 0.13 The Company’s consolidated statement of operations for the year ended December 31, 2023 included revenue of $ 0.07 0.18 The Company did not issue the third phase of restricted ordinary shares before May 31, 2024, due to unsatisfaction of certain performance targets of ZJIOT as set forth in the share purchase agreement. TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS |
DISPOSALS OF CONSOLIDATED ENTIT
DISPOSALS OF CONSOLIDATED ENTITIES | 6 Months Ended |
Jun. 30, 2024 | |
Disposals Of Consolidated Entities | |
DISPOSALS OF CONSOLIDATED ENTITIES | 4. DISPOSALS OF CONSOLIDATED ENTITIES TCTCZ was dissolved on September 20, 2023. The dissolution did not result in any gain or loss for the year ended December 31, 2023. The Company disposed of 100 100 16,184 ZJIOT was dissolved on June 25, 2024. The dissolution resulted in a recorded loss of $ 83,590 The dissolution of TCTCZ and ZJIOT were not qualified as discontinued operations as they do not individually or in the aggregate represent a strategic shift that has had a major impact on the Company’s operations or financial results. The disposals of TDL, TDAL, and TCL represented a strategic shift in the Company’s strategy and had a major effect on the Company’s operations and financial results. Operations of the three companies have been presented as “discontinued operations” in the Company’s consolidated financial statement (Note 9). TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS |
INCOME (LOSS) PER SHARE
INCOME (LOSS) PER SHARE | 6 Months Ended |
Jun. 30, 2024 | |
Income (loss) per share – Basic and Diluted* | |
INCOME (LOSS) PER SHARE | 5. INCOME (LOSS) PER SHARE Basic loss per share is computed by dividing loss available to common shareholders by the weighted-average number of ordinary shares outstanding during the period. Diluted loss per share reflects the potential dilution that could occur, if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares, or resulted in the issuance of ordinary shares that shared in the earnings of the entity. Components of basic and diluted earnings per share were as follows for the six months ended June 30, 2024 and 2023: SCHEDULE OF COMPONENTS OF BASIC AND DILUTED EARNINGS PER SHARE Six Months Ended June 30, 2024 * Six Months Ended June 30, 2023 * (Unaudited) (Unaudited) Numerator: Net income (loss) attributable to the Company $ 588,744 $ (1,809,030 ) Denominator: Weighted average outstanding ordinary shares-Basic * 4,479,520 1,638,052 -dilutive effect of convertible note 84,743 - Weighted average outstanding ordinary shares- Diluted * 4,564,263 1,638,052 Earnings (loss) per share attributable to the Company * Basic $ 0.13 $ (1.10 ) Diluted $ 0.13 $ (1.10 ) CONTINUING OPERATIONS Net income (loss) attributable to the Company $ 588,744 $ (1,790,303 ) Denominator: Weighted average outstanding ordinary shares-Basic * 4,479,520 1,638,052 -dilutive effect of convertible note 84,743 - Weighted average outstanding ordinary shares- Diluted * 4,564,263 1,638,052 Earnings (loss) per share attributable to the Company * Basic $ 0.13 $ (1.09 ) Diluted $ 0.13 $ (1.09 ) DISCONTINUED OPERATIONS Net income (loss) attributable to the Company $ - $ (18,727 ) Denominator: Weighted average outstanding ordinary shares-Basic * - 1,638,052 Weighted average outstanding ordinary shares- Diluted * - 1,638,052 Loss per share attributable to the Company* Basic $ - $ (0.01 ) Diluted $ - $ (0.01 ) * On August 1, 2023, the Company implemented a one-for-ten reverse stock split For the six-month period ended June 30, 2024 and 2023, there were 84,743 nil There were 27,850 5,737 36,000 There were - 0 0 36,000 TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 6. RELATED PARTY TRANSACTIONS (a) Revenue – related parties For the six months ended June 30, 2024 and 2023, approximately $ 134,000 71,000 5 (b) Other revenue – related parties Other revenue generated from related parties includes system maintenance service provided to Taoping affiliate customers, which was approximately $ 1,000 2,000 (c) Amounts due to related parties As of June 30, 2024 and December 31, 2023, the amounts due to related parties was approximately $ 1,582,000 3,038,000 0.2 0.9 2 1.4 10 2.1 15 100 12 5.85 April 15, 2025 |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 7. INVENTORIES As of June 30, 2024 and December 31, 2023, inventories consist of: SCHEDULE OF INVENTORIES June 30, 2024 December 31, 2023 (Unaudited) Raw materials $ 3,295 $ 3,379 Finished goods 3,313,922 1,336,771 Inventories, gross $ 3,317,217 $ 1,340,150 Allowance for slow-moving or obsolete inventories (99,048 ) (89,583 ) Inventories, net $ 3,218,169 $ 1,250,567 For the six months ended June 30, 2024 and 2023, impairments for obsolete inventories were approximately $ 10,700 8,400 TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS |
PROPERTY, EQUIPMENT AND SOFTWAR
PROPERTY, EQUIPMENT AND SOFTWARE | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, EQUIPMENT AND SOFTWARE | 8. PROPERTY, EQUIPMENT AND SOFTWARE As of June 30, 2024 and December 31, 2023, property, equipment and software consist of: SCHEDULE OF PROPERTY, EQUIPMENT AND SOFTWARE June 30, 2024 December 31, 2023 (Unaudited) Office buildings $ 3,847,210 $ 4,300,780 Electronic equipment, furniture and fixtures 4,079,302 3,281,359 Media display equipment 908,337 1,081,589 Purchased software 7,207,537 7,185,219 Total 16,042,386 15,848,947 Less: accumulated depreciation (9,911,623 ) (9,171,463 ) Property, equipment and software, net $ 6,130,763 $ 6,677,484 Depreciation expenses for the six months ended June 30, 2024 and 2023 were approximately $ 1.1 1.3 0 0.2 Management regularly evaluates property, equipment and software for impairment, if an event occurs or circumstances change that would potentially indicate that the carrying amount of the property, equipment and software exceeded its fair value. Management utilizes the discounted cash flow method to estimate the fair value of the property, equipment and software. Company’s office buildings, with net carrying value of approximately $ 2.4 TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | 9. DISCONTINUED OPERATIONS In December 2022, the Company ceased its cryptocurrency mining business and entering into a series of contracts with certain third parties to sell its cryptocurrency mining and related equipment, terminating the leases for both the office facility and the storage rooms for most mining machines, and laying off relevant employees. As a result, the operations of Cryptocurrency mining business are reflected within “discontinued operations” periods presented. The significant items included within discontinued operations are as follows: SCHEDULE OF CRYPOCURRENCY MINING WITHIN DISCONTINUED OPERATIONS Six Months Ended June 30, 2024 Six Months Ended June 30, 2023 (Unaudited) (Unaudited) Revenue - Cryptocurrency mining $ - $ - Cost - Cryptocurrency mining - 276,926 Administrative expenses - (279,995 ) Operating gain from discontinued operations - 3,069 Other (loss), net - (21,805 ) Interest income - 9 (Loss) from discontinued operations before income taxes - (18,727 ) Income tax expense - - Net (loss) from discontinued operations $ - $ (18,727 ) As of June 30, 2024 and December 31, 2023, no assets and liabilities of discontinued operations included within the Consolidated Balance Sheets. Six Months Ended June 30, 2024 Six Months Ended June 30, 2023 (Unaudited) (Unaudited) Net cash provided by operating activities $ - $ 109,202 Net cash provided by investing activities - 237,635 CRYPTOCURRENCIES As of June 30, 2024 and December 31, 2023, no cryptocurrencies held by the Company. |
BANK LOANS
BANK LOANS | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
BANK LOANS | 10. BANK LOANS (a) Short-term bank loans SCHEDULE OF SHORT-TERM BANK DEBT June 30, 2024 December 31, 2023 (Unaudited) Secured short-term loans $ 7,950,679 $ 8,547,509 Total short-term bank loans $ 7,950,679 $ 8,547,509 Detailed information of secured short-term loan balances as of June 30, 2024 and December 31, 2023 were as follows: SCHEDULE OF SECURED SHORT-TERM BANK DEBT June 30, 2024 December 31, 2023 (Unaudited) Guaranteed by IST and Mr. Lin and Collateralized by the real property of ISIOT and equity investment of IST HK $ 1,348,039 $ 1,777,205 Collateralized by office buildings of IST and guaranteed by Mr. Lin 4,814,425 4,936,680 Guaranteed by Mr. Lin and IST HK 1,100,440 1,128,384 Guaranteed by Mr. Lin 687,775 705,240 Total $ 7,950,679 $ 8,547,509 Short term loan $ 7,950,679 $ 8,547,509 As of June 30, 2024, the Company had short-term bank loans of approximately $ 8.0 mature on various dates from July 6, 2024 to September 27, 2024 3.45 4.80 4.43 4.76 0.2 0.2 TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 11. INCOME TAXES Pre-tax income (loss) from continuing operations and discontinued operations for the six months ended June 30, 2024 and 2023 were taxable in the following jurisdictions: SCHEDULE OF INCOME BEFORE INCOME TAXES Six Months Ended Six Months Ended June 30, 2024 June 30, 2023 (Unaudited) (Unaudited) PRC $ 1,298,457 $ 414,924 HK (1,122 ) (113,406 ) BVI (703,244 ) (2,076,035 ) Total income (loss) before income taxes $ 594,091 $ (1,774,517 ) United States The Company from time to time evaluates the tax effect of global intangible low-taxed income (“GILTI”), and determined that there was no impact of GILTI tax to the Company’s consolidated financial statements as of June 30, 2024. TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS BVI Under the current laws of the BVI, dividends and capital gains arising from the Company’s investments in the BVI and ordinary income, if any, are not subject to income taxes. Hong Kon Under the current laws of Hong Kong, IST HK, TDAL, TDL and TCL are subject to a profit tax rate of 16.5 PRC Income tax expense (benefit) from continuing operations consists of the following: SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) Six Months Ended Six Months Ended June 30, 2024 June 30, 2023 (Unaudited) (Unaudited) Current tax expense $ 5,347 $ 34,513 Income tax expense $ 5,347 $ 34,513 Current income tax expense (benefit) was recorded in 2024 and 2023 and was related to differences between the book and corporate income tax returns. SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION Six Months Ended Six Months Ended June 30, 2024 June 30, 2023 (Unaudited) (Unaudited) PRC statutory tax rate 25 % 25 % Expected income tax (benefit) $ 148,523 $ (443,629 ) Tax rate difference (129,413 ) (37,415 ) Permanent differences (340,313 ) (191,646 ) Tax effect of temporary differences not recognized - (116,103 ) Tax effect of tax losses unrecognized 326,550 823,306 Income tax expense $ 5,347 $ 34,513 TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS The Company’s tax loss carry forwards totaling RMB 143.8 20.0 IST is approved as being high-technology enterprises and subject to PRC enterprise income tax rate (“EIT”) at 15 12.5 The Company recognizes that virtually all tax positions in the PRC are not free of some degree of uncertainty due to tax law and policy changes by the State. However, the Company cannot reasonably quantify political risk factors and thus must depend on guidance issued by current State officials. Based on all known facts, circumstances, and current tax law, the Company has not recorded tax benefits as of June 30, 2024 and December 31, 2023, respectively. The Company believes that there are no tax positions for which it is reasonably possible, based on current Chinese tax laws and policies, that the unrecognized tax benefits will significantly increase or decrease over the next 12 months, individually or in the aggregate, and have a material effect on the Company’s results of operations, financial condition or cash flows. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. Any accrued interest or penalties associated with any unrecognized tax benefits were not significant for the six months ended June 30, 2024 and 2023. TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Since the Company intends to reinvest its earnings to further expand its businesses in the PRC, the PRC subsidiaries do not intend to declare dividends to their parent companies in the foreseeable future. The Company’s foreign subsidiaries are in a cumulative deficit position. Accordingly, the Company has not recorded any deferred taxes on the cumulative amount of any undistributed deficit. It is impractical to calculate the tax effect of the deficit at this time. |
OTHER CURRENT AND NON-CURRENT A
OTHER CURRENT AND NON-CURRENT ASSETS | 6 Months Ended |
Jun. 30, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER CURRENT AND NON-CURRENT ASSETS | 12. OTHER CURRENT AND NON-CURRENT ASSETS (a) As of June 30, 2024, and December 31, 2023, other current assets consist of: SCHEDULE OF OTHER CURRENT ASSETS June 30, 2024 December 31, 2023 (Unaudited) Advances to unrelated parties (i) $ 472,851 $ 1,209,202 Advances to a related party 233,538 239,469 Advances to employees 88,407 78,566 Other current assets 86,383 112,833 Total $ 881,179 $ 1,640,070 (i) The advances to unrelated parties for business development are non-interest bearing and are due on demand. As of June 30, 2024, the balance included the amount due from a third-party vendor of approximately $ 291,000 Based on the amendment of the contract, the Company agrees to make advances to the vendor specifically for its market development purposes, and the total commitment of funding was RMB 6 825,000 12 50 If the Company’s revenue facilitated by the vendor does not reach certain threshold during specified periods, the contract could be terminated by the Company, and all funding with applicable interest, less any commissions and subcontractor fees payable to the vendor, shall be repaid to the Company within one month after the termination of the contract. If the two parties terminate the cooperation on the condition that the vendor meet the target, all funding without interest, shall be repaid. The first period as specified is from January 1, 2021 to December 31, 2021 with a threshold revenue of RMB 15 2,294,400 15.2 2,386,360 7.5 1,111,000 20.8 2,947,000 10.9 1,510,000 (b) As of June 30, 2024 and December 31, 2023, Other assets, non-current consist of: SCHEDULE OF OTHER NON-CURRENT ASSETS June 30, 2024 December 31, 2023 (Unaudited) Other assets, non-current, net $ 359,519 $ 811,026 Total $ 359,519 $ 811,026 During 2019 and 2020, the Company advanced RMB 30 4.1 30 4.1 TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Based on the amendment of the contract, if the Company’s new media advertising revenue generated from IOV software does not reach certain threshold during specified period, the contract could be terminated by the Company, and all funding with applicable interest, and less the revenue generated from the IOV software shall be repaid to the Company within one half year after the termination of the contract. Before the full repayment of the funding, the Company owns 100 Starting in October 2020, IOV software revenue will be divided into eight periods. The first period as specified was from October 1, 2020 to April 30, 2021 with a threshold advertising revenue from IOV software of RMB 3 462,000 The revenue is to increase incrementally by 15% in every six months going forward until the contract expires four years after the commencing date of the operation. 3 462,000 3.3 510,000 3.4 531,000 14.1 2,285,000 3.9 562,000 18.3 2,581,000 7.8 1,082,000 The development of IOV software was completed by September 30, 2020. Since the Company has the right to use the IOV software under the contract term, software was capitalized as “other assets, non-current, net” and started to amortize from October 1, 2020 over the four 359,519 811,026 0.4 If full repayment is achieved within the contract term, the Company might be charged to continue using the software and related equipment, depending on both parties’ future agreement. TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS |
OPERATING LEASES
OPERATING LEASES | 6 Months Ended |
Jun. 30, 2024 | |
Operating Leases | |
OPERATING LEASES | 13. OPERATING LEASES The Company leased an office space, three server rooms, and a dormitory in Hong Kong for executing the Blockchain business strategy, and the Company also leased an office space in Zhenjiang commenced in October 2021. The office space and two of the server rooms in Hong Kong were terminated in September 2022, and November 2022, respectively. The remaining server room and dormitory in Hong Kong were terminated in April 2023. The fixed monthly lease payment for the Zhenjiang office space is $ 2,528 17,882 three years 5,656 40,000 three years 4,807 34,000 two years 5,656 40,000 2,404 17,000 The Company has also leased specific and identifiable wall spaces with a certain dimension in commercial and residential building lobbies, inside elevators, elevator waiting areas, and various places to install the new media advertising display terminals without substitution for purpose of broadcasting advertisements paid by the customers to promote their businesses or special events. The lease terms with negotiated payment terms range from one year three years The Company has elected to apply the short-term lease exception to all leases with a term of one year or less. The Company incurred rent expenses of approximately $ 6,000 TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 6 Months Ended |
Jun. 30, 2024 | |
Investments, All Other Investments [Abstract] | |
LONG-TERM INVESTMENTS | 14. LONG-TERM INVESTMENTS As of June 30, 2024, the carrying value of the Company’s equity investments were $ 139,145 (1) Equity method investments: As of June 30, 2024, the Company’s equity method investments had a carrying value of $nil which were as follows: SCHEDULE OF EQUITY METHOD INVESTMENTS Investees Abbreviation % of Ownership Carrying value Qingdao Taoping IoT Co., Ltd. QD Taoping, or QD 47 % $ - Yunnan Taoping IoT Co., Ltd. YN Taoping, or YN 40 % - Jiangsu Taoping IoT Technology Co., Ltd. JS Taoping, or JS 25 % - Jiangsu Taoping New Media Co., Ltd JS New Media, or JN 21 % - $ - The Company’s initial investments in the above equity method investments were approximately $ 1.9 no no 800 no (2) Equity investments without readily determinable fair value that is not accounted for under equity method accounting: In accordance with ASC 321, the Company elected to use the measurement alternative to measure such investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. As of June 30, 2024 and December 31, 2023, the carrying value for the equity investments without readily determinable fair value was $ 139,145 86,889 711,000 0.01 0.07 0.02 TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS |
CONVERTIBLE NOTE PAYABLE
CONVERTIBLE NOTE PAYABLE | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTE PAYABLE | 15. CONVERTIBLE NOTE PAYABLE On September 27, 2023, the Company issued a Convertible Promissory Note (“Note”) in a private placement in aggregate principal amount of $ 609,000 The Note matures in 12 months from the issue date of the Note (the “Maturity Date”), with an annual interest rate of 8% 44,000 15,000 550,000 8.0 2.0 For the holder of the Note, conversion price results in beneficial conversion feature (BCF) that is separated as an equity component and assigned a value of $ 156,440 The Note is recognized initially at fair value, net of debt discounts including original issue discount, Transaction Expense Amount, and allocation of proceeds to beneficial conversion feature, in the amount of $ 215,440 62,806 The Company recognized interest expense of approximately $ 119,000 22,000 97,000 350,930 |
OTHER PAYABLES AND ACCRUED EXPE
OTHER PAYABLES AND ACCRUED EXPENSES | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
OTHER PAYABLES AND ACCRUED EXPENSES | 16. OTHER PAYABLES AND ACCRUED EXPENSES As of June 30, 2024 and December 31, 2023, other payables and accrued expenses consist of: SCHEDULE OF OTHER PAYABLE AND ACCRUED EXPENSES June 30, 2024 December 31, 2023 (Unaudited) Advances from unrelated third parties (i) $ 889,346 $ 621,146 Other taxes payable (ii) 3,051,412 4,133,972 Accrued professional fees 60,000 230,000 Amount due to employees (iii) 194,638 158,396 Others 37,252 80,711 Other Payables and Accrued Expenses $ 4,232,648 $ 5,224,225 (i) The advances from unrelated parties are non-interest bearing and due on demand. (ii) The other taxes payable were the amounts due to the value added tax, business tax, city maintenance and construction tax, and individual income tax. (iii) The amounts due to employees were pertaining to employees’ out-of-pocket expenses for travel and meal allowance, etc. |
RESERVE AND DISTRIBUTION OF PRO
RESERVE AND DISTRIBUTION OF PROFIT | 6 Months Ended |
Jun. 30, 2024 | |
Reserve And Distribution Of Profit | |
RESERVE AND DISTRIBUTION OF PROFIT | 17. RESERVE AND DISTRIBUTION OF PROFIT In accordance with relevant PRC regulations and the Articles of Association of our PRC subsidiaries, our PRC subsidiaries are required to allocate at least 10 50 10.2 10.2 TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Under the applicable PRC regulations, the Company may pay dividends only out of the accumulated profits, if any, determined in accordance with the PRC accounting standards and regulations. The statutory reserve funds can only be used for specific purposes under the PRC laws and regulations. The general reserves are not distributable as cash dividends. Our after-tax profits or losses with respect to the payment of dividends out of accumulated profits and the annual appropriation of after-tax profits as calculated pursuant to the PRC accounting standards and regulations do not result in significant differences as compared to after-tax earnings as presented in our consolidated financial statements. However, there are certain differences between the PRC accounting standards and regulations and the U.S. generally accepted accounting principles, arising from different treatment of items such as amortization of intangible assets and change in fair value of contingent consideration arising from business combinations. |
EQUITY
EQUITY | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
EQUITY | 18. EQUITY (a) Ordinary shares The Company is authorized to issue 100,000,000 In February 2022, the Company issued the first phase of approximately 6,718 118,000 20,154 In March 2022 and July 2022, the Company issued 2,000 23,100 In April 2023, the Company issued the second phase of approximately 6,718 49,000 In May 2023, the Company issued 50,000 50,000 340,000 In May 2023, the Company issued 200,000 1,360,000 In July 2023, the Company issued 4,339 43,394 23,000 230,000 In August 2023, the Company issued 80,000 4.626 370,080 In October 2023, the Company issued a total of 300,000 1.97 1.84 570,200 In November 2023, the Company issued 200,000 1.37 274,000 In December 2023, the Company issued a total of 420,000 1.24 1.11 494,800 TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS In January 2024, the Company issued a total of 580,000 1.21 1.06 656,800 In February 2024, the Company issued a total of 310,000 1.09 1.08 336,300 In March 2024, the Company issued a total of 590,000 1.06 0.99 0.945 584,050 In March 2024, the holder of the Company’s convertible promissory note issued in September 2023 converted an amount of $ 50,000 0.8790 56,882 In April 2024, the holder of the Company’s convertible promissory note issued in September 2023 converted an amount of $ 75,000 0.8579 87,422 In May 2024, the Company issued a total of 1,380,000 0.77 0.663 0.65 951,240 In May 2024, the holder of the Company’s convertible promissory note issued September 2023 converted an amount of $ 100,000 0.6670 149,925 In June 2024, the Company issued 580,000 0.62 359,600 (b) Stock-based compensation The following table provides the details of the approximate total share-based payments expense during the six months ended June 30, 2024 and 2023: SCHEDULE OF SHARE BASED PAYMENTS EXPENSE Six Months Ended June 30, 2024 Six Months Ended June 30, 2023 (Unaudited) (Unaudited) Employees and directors share-based payments $ - $ 1,360,000 (a) Shares issued for services 136,000 (a) 32,603 (a) Total share based payments expenses $ 136,000 $ 1,392,603 TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (c) Stock options to employees and directors On May 9, 2016, the Board of Directors of the Company adopted the 2016 Equity Incentive Plan, or the 2016 Plan. Pursuant to the 2016 Plan and its amendment in May 2021, the Company may offer up to five hundred thousand ordinary shares as equity incentives to its directors, employees and consultants. Such number of shares is subject to adjustment in the event of certain reorganizations, mergers, business combinations, recapitalizations, stock splits, stock dividends, or other change in the corporate structure of the Company affecting the issuable shares under the 2016 Plan. The Company accounts for its stock option awards to employees and directors pursuant to the provisions of ASC 718, Compensation – Stock Compensation. The fair value of each option award is estimated on the date of grant using the Black-Scholes Merton valuation model. The Company recognizes the fair value of each option as compensation expense ratably using the straight-line attribution method over the service period, which is generally the vesting period. On July 24, 2020, the Company granted options to employees and directors to purchase an aggregate of 33,335 0.3 Stock option activity for the six months ended June 30, 2023 is summarized as follows: SUMMARY OF STOCK OPTION ACTIVITY Weighted Weighted Average Remaining Options Average Exercise Contractual Life Aggregated Intrinsic Outstanding* Price* (Years) Value Outstanding at January 1, 2023 28,250 $ 24.0 0.6 $ - Exercised - - Canceled (400 ) $ 24.0 Outstanding at June 30, 2023 (Unaudited) 27,850 $ 24.0 0.1 $ - Vested and expected to be vested as of June 30, 2023 (Unaudited) 27,850 $ 24.0 0.1 $ - Options exercisable as of June 30, 2023 (vested) (Unaudited) 27,850 $ 24.0 0.1 $ - TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS There were no no As of June 30, 2024, no * On August 1, 2023, the Company implemented a one-for-ten reverse stock split of the Company’s issued and outstanding ordinary shares. Except shares authorized, all share and per share information has been retroactively adjusted to give effect to the reverse stock split for all periods presented, unless otherwise indicated. (d) Stock options and warrants to non-employees Pursuant to the 2016 Plan and its amendment, for the six months ended June 30, 2024 and 2023, the Company issued nil nil nil nil no As of June 30, 2024, there was no stock options and warrants outstanding and exercisable. TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS |
CONSOLIDATED SEGMENT DATA
CONSOLIDATED SEGMENT DATA | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
CONSOLIDATED SEGMENT DATA | 19. CONSOLIDATED SEGMENT DATA Selected information by segment is presented in the following tables for the six months ended June 30, 2024 and 2023. SCHEDULE OF SEGMENT REPORTING Six Months Ended June 30, 2024 (Unaudited) Six Months Ended June 30, 2023 (Unaudited) Revenues (1) TIT Segment $ 60,795 $ 178,401 CBT Segment 18,017,752 13,899,608 $ 18,078,547 $ 14,078,009 (1) Revenues by operating segments exclude intercompany transactions. Six Months Six Months Income (loss) from operations TIT Segment $ (31,306 ) $ (21,900 ) CBT Segment 483,559 516,473 Corporate and others (2) (576,609 ) (2,170,806 ) (Loss) from operations (124,356 ) (1,676,233 ) Corporate other income, net 1,069,057 182,254 Corporate interest income 1,630 609 Corporate interest expense (352,240 ) (262,420 ) Income (loss) before income taxes 594,091 (1,755,790 ) Income tax expense (5,347 ) (34,513 ) Income from continuing operations 588,744 (1,790,303 ) Income from discontinued operations - (18,727 ) Net income (loss) 588,744 (1,809,030 ) Less: Loss attributable to the non-controlling interest - - Net income (loss) attributable to the Company $ 588,744 $ (1,809,030 ) (2) Includes non-cash compensation, professional fees and consultancy fees for the Company. Non-cash compensation by segment for the six months ended June 30, 2024 and 2023 are as follows: Six Months Six Months Non-cash compensation: Corporate and others $ 136,000 $ 1,392,603 Non-cash compensation $ 136,000 $ 1,392,603 Depreciation and amortization by segment for six months ended June 30, 2024 and 2023 are as follows: Six Months Six Months Depreciation and amortization: TIT Segment $ 9,942 $ 22,380 CBT Segment 1,119,782 1,259,306 Corporate and others - 7,586 $ 1,129,724 $ 1,289,272 TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Six Months Ended June 30, 2024 (Unaudited) Six Months Ended June 30, 2023 (Unaudited) Provisions for allowance for credit losses on accounts receivable, other receivable and advances to suppliers: TIT Segment $ 4,378 $ (12,331 ) CBT Segment 1,693,100 986,240 $ 1,697,478 $ 973,909 Six Months Ended June 30, 2024 (Unaudited) Six Months Ended June 30, 2023 (Unaudited) Inventory obsolescence provision: TIT Segment $ (1,055 ) $ 2,455 CBT Segment 11,791 6,003 $ 10,736 $ 8,458 Total assets by segment as of June 30, 2024 and December 31, 2023 are as follows: June 30, 2024 (Unaudited) December 31, 2023 Total assets TIT Segment $ 127,314 $ 131,137 CBT Segment 33,744,814 31,384,549 Corporate and others 207,566 1,310,628 $ 34,079,694 $ 32,826,314 TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 20. COMMITMENTS AND CONTINGENCIES The Company may from time to time be subject to legal proceedings, investigations, and claims incidental to conduct of our business. In September 2023, Guangdong Zexun Advertising Co., Ltd. filed a lawsuit against the Company which claimed a payment of RMB 231,866 32,200 32,200 |
CONCENTRATIONS
CONCENTRATIONS | 6 Months Ended |
Jun. 30, 2024 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | 21. CONCENTRATIONS For the six months ended June 30, 2024, one customer accounted for 14 10 29 31 The Company’s top five customers in aggregate accounted for 70 37 12 48 10 For the six months ended June 30, 2024 and 2023, approximately 82 69 50 12 23 18 TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 22. SUBSEQUENT EVENTS On June 24, 2024, the Company received a letter from The Nasdaq Stock Market LLC (“Nasdaq”), notifying the Company that it is currently not in compliance with the minimum bid price requirement set forth under Nasdaq Listing Rule 5550(a)(2), which requires listed securities to maintain a minimum bid price of US$ 1.00 1.00 On July 15, 2024, the Company issued 600,000 ordinary shares, to SHANJING CAPITAL GROUP CO., LTD (the “Investor”) at a price of approximately $ 0.60 per share, pursuant to a Standby Equity Purchase Agreement (the “Private SEPA”). The total proceeds the Company received from the above sales of the shares are $ 360,000 . These shares were issued as part of the commitment by Investor to purchase from time to time, at our option, up the Company’s $ 10,000,000 of our ordinary shares pursuant to the Private SEPA, as described in the Form 6-K dated July 19, 2023. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | (a) Basis of Presentation and Principles of Consolidation The consolidated financial statements as of June 30, 2024 and for the six-month periods ended June 30, 2024 and 2023 are unaudited. The accompanying unaudited consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial reporting. In the opinion of management, all adjustments (consisting of normal recurring adjustments) have been made that are necessary to present fairly the financial position, the results of its operations and cash flows. Operating results as presented are not necessarily indicative of the results to be expected for a full year. These consolidated financial statements and related notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 20-F for the year ended December 31, 2023 filed on April 25, 2024 with the Securities and Exchange Commission. The consolidated financial statements include the accounts of the Company, and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Reverse Stock Split: A one-for-ten reverse stock split |
Use of Estimates | (b) Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. The Company’s significant estimates include assessment of credit losses and useful lives of property and equipment. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ from those estimates. TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS |
Economic, Pandemic, Political, and Currency Exchange Risks | (c) Economic, Pandemic, Political, and Currency Exchange Risks All the Company’s revenue-generating operations are conducted in Hong Kong and mainland China. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic, public health, and legal environments in the PRC, and by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks that are not typically pertaining to the companies in North America and Western Europe. These include risks associated with, among others, the political, economic, public health concerns with persistent outbreaks of COVID-19 infections in various regional localities, and legal environments, geopolitical influences, and foreign currency exchange, notably in recent events, where the government’s sudden interventions or modifications of the laws and regulations currently in effective could negatively impact the Company’s operations and financial results. The functional currency of the Company is primarily Chinese Renminbi Yuan (“RMB”), which is not freely convertible into foreign currencies. The Company cannot guarantee that the current exchange rate will remain steady. Therefore, there is a possibility that the Company could post the same amount of profit for two comparable periods and yet, because of fluctuating exchange rates, record higher or lower profit depending on exchange rate of RMB. RMB converted to U.S. dollars on the relevant dates. The exchange rate could fluctuate depending on changes in the political and economic environment without notice. |
Cash and Cash Equivalents | (d) Cash and Cash Equivalents The Company considers all highly liquid investments purchased and cash deposits with financial institutions with original maturities of three months or less to be cash equivalents. The Company had no The Company maintains its bank accounts at credit worthy financial institutions and closely monitors the movements of its cash positions. As of June 30, 2024, and December 31, 2023, approximately $ 0.5 1.3 |
Accounts Receivable, Accounts Receivable – related parties, and Concentration of Risk | (e) Accounts Receivable, Accounts Receivable – related parties, and Concentration of Risk Accounts receivable are recognized and carried at carrying amount less an allowance for credit loss, if any. The Company maintains an allowance for credit losses resulting from the inability of its customers to make required payments based on contractual terms. The Company reviews the collectability of its receivables on a regular and ongoing basis according to historical trend, and estimates its provision for expected credit losses on receivables aging analysis. The Company estimates allowance for credit losses for the anticipation of future economic condition and credit risk indicators of customers. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. In the event the Company recovers amounts previously reserved for, the Company will reduce the specific allowance for credit losses. The balance of allowance for credit losses for the six-month ended June 30, 2024 has decreased approximately $ 18.7 TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Accounts receivable as of June 30, 2024 and December 31, 2023 are as follows: SCHEDULE OF ACCOUNTS RECEIVABLE June 30, 2024 December 31, 2023 (Unaudited) Accounts Receivable $ 14,234,246 $ 19,471,159 Allowance for credit losses (6,797,395 ) (11,407,879 ) Accounts Receivable, net $ 7,436,851 $ 8,063,280 Accounts Receivable - related parties $ 342,123 $ 14,814,842 Allowance for credit losses - related parties (98,937 ) (14,184,067 ) Accounts Receivable - related parties, net $ 243,186 $ 630,775 The normal credit term is ranging from 1 month to 3 months after the customers’ acceptance of data storage servers or software, and completion of advertising and other services, and ranging from 1 month to 6 months after the customers’ acceptance of ads display terminals. However, because of various factors related to the business cycle, the actual collection of outstanding accounts receivable may be beyond the normal credit terms. The allowance for credit losses at June 30, 2024 and December 31, 2023, totaled approximately $ 6.9 25.6 SCHEDULE OF ALLOWANCE FOR CREDIT LOSSES Balance at January 1, 2023 $ 25,484,295 Increase in allowance for credit losses 794,087 Foreign exchange difference (686,436 ) Balance at December 31, 2023 $ 25,591,946 Increase in allowance for credit losses 938,628 Decrease from dissolution of a subsidiary (1,119 ) Amounts written off as uncollectible (18,751,521 ) Foreign exchange difference (881,602 ) Balance at June 30, 2024 (Unaudited) $ 6,896,332 TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS |
Fair Value Accounting | (f) Fair Value Accounting Financial Accounting Standards Board (FASB) Accounting Standards Codifications (ASC) 820-10 “Fair Value Measurements and Disclosures”, establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). As required by FASB ASC 820-10, assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy under FASB ASC 820-10 are described below: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). |
Inventories, net | (g) Inventories, net Inventories are valued at the lower of cost (weighted average basis) and net realizable value. Net realizable value is the expected selling price in the ordinary course of business minus any costs of completion, disposal, and transportation to make the sale. The Company performs an analysis of slow-moving or obsolete inventory periodically and any necessary valuation reserves, which could potentially be significant, are included in the period in which the evaluations are completed. Any inventory impairment results in a new cost basis for accounting purposes. TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS |
Property, equipment and software, net | (h) Property, equipment and software, net Property, equipment and software are stated at cost less accumulated amortization and depreciation. Amortization and depreciation are provided over the assets’ estimated useful lives, using the straight-line method. Estimated useful lives of property, equipment and software are as follows: SCHEDULE OF PROPERTY , EQUIPMENT AND SOFTWARE ESTIMATED USEFUL LIVES Office buildings 20 50 Lease improvement Shorter of lease term or assets lives Electronics equipment, furniture and fixtures 3 5 Motor vehicles 5 Purchased software 5 Media display equipment 5 Cryptocurrency mining machine 3 Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss are included in the Company’s results of operations. TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS |
Business combination | (i) Business combination In accordance with ASC 805, the Company applies acquisition method to account for business combination. The acquisition method requires that the fair value of the underlying exchange transaction is used to establish a new accounting basis of the acquired entity upon the acquirer taking control over the acquiree. Furthermore, because of obtaining control the acquirer is responsible and accountable for all of the acquiree’s assets, liabilities and operations, the acquirer recognizes and measures the assets acquired and liabilities assumed at their full fair values as of the date control is obtained, which may result in goodwill, when purchase consideration exceeds the net of fair value of the assets acquired and liabilities assumed, or a bargain purchase gain, when the net of fair value of the assets acquired and liabilities assumed exceeds the purchase consideration, regardless of the percentage ownership in the acquiree or how the acquisition was achieved. |
Disposal of subsidiary | (j) Disposal of subsidiary The Company deconsolidates a subsidiary upon the loss of control, the related subsidiary’s assets (including goodwill), liabilities, non-controlling interest and other components of equity are de-recognized. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss. Any consideration received is recognized at fair value. Any resultant gain or loss is recognized in the Statement of Operations. |
Long-term investment | (k) Long-term investment The Company’s long-term investment consists of investments accounted for under the equity method and equity investments without readily determinable fair value. Pursuant to ASC 321, equity investments, except for those accounted for under the equity method, those that result in consolidation of the investee and certain other investments, are measured at fair value, and any changes in fair value are recognized in earnings. For equity securities without readily determinable fair value and do not qualify for the existing practical expedient in ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”) to estimate fair value using the net asset value per share (or its equivalent) of the investment, the Company elected to measure those investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. For equity investments that the Company elects to measure at cost, less any impairment, plus or minus changes resulting from observable price changes, the Company makes a qualitative assessment considering impairment indicators to evaluate whether investments are impaired at each reporting date. Impairment indicators considered include, but are not limited to, a significant deterioration in the earnings performance or business prospects of the investee, including factors that raise significant concerns about the investee’s ability to continue as a going concern, a significant adverse change in the regulatory, economic, or technologic environment of the investee and a significant adverse change in the general market condition of either the geographical area or the industry in which the investee operates. If a qualitative assessment indicates that the investment is impaired, the entity has to estimate the investment’s fair value in accordance with the principles of ASC 820. For equity investments without readily determinable fair value, the Company uses Level 3 inputs of fair value accounting in accordance with ASC 820-10 and recognizes impairment loss other than temporary in the statement of operations equal to the difference between its initial investment and its proportional share of the net book value of the investee’s net assets which approximates its fair value. For impairment on equity investments without readily determinable fair value, the Company uses Level 3 inputs of fair value accounting in accordance with ASC 820-10 and recognizes impairment loss in the statement of operations equal to the difference between its initial investment and its proportional share of the net book value of investee’s net assets which approximates its fair value if those are determined to be other than temporary. TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS |
Convertible promissory note | (l) Convertible promissory note The Company determines the appropriate accounting treatment of its convertible debts in accordance with the terms in relation to conversion features. After considering the impact of such features, the Company may account for such instrument as a liability in its entirety, or separate the instrument into debt and equity components following the guidance described under ASC 815 Derivatives and Hedging and ASC 470 Debt. The debt discount, if any, together with related issuance cost are subsequently amortized as interest expense over the period from the issuance date to the earliest conversion date or stated redemption date. The Company presented the issuance cost of debt in the balance sheet as a direct deduction from the related debt. |
Operating leases - Right-of-use assets and lease liabilities | (m) Operating leases - Right-of-use assets and lease liabilities The Company accounts for lease under ASC 842 “Leases”, and also elects practical expedient not to separate non-lease component from lease components in accordance with ASC 842-10-15-37 and instead to account for each separate lease component and the non-lease components associated with that lease component as a single lease component. The Company also elects the practical expedient not to recognize lease assets and lease liabilities for leases with a term of 12 months or less. The Company recognized a lease liability and corresponding right-of-use asset based on the present value of minimum lease payments discounted at the Company’s incremental borrowing rate. The Company records amortization and interest expense on a straight-line basis based on lease terms and reduces lease liabilities upon making lease payments. |
Revenue Recognition | (n) Revenue Recognition In accordance with the ASC 606, the Company recognizes revenues net of applicable taxes, when goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to receive in exchange for those goods or services. The Company generates its revenues primarily from four sources: (1) product sales, (2) software sales, (3) advertising and (4) other sales. Revenue is recognized when obligations under the terms of a contract with our customers are satisfied, generally, upon delivery of the goods and services. Revenue - Products Product revenues are generated primarily from the sale of Cloud-Application-Terminal based digital ads display terminals with integrated software essential to the functionality of the hardware to our customers (inclusive of related parties) and high-end data storage servers. Although manufacturing of the products has been outsourced to the Company’s Original Equipment Manufacturer (OEM) suppliers, the Company has acted as the principal of the contract. The Company recognized the product sales at the point of delivery. Product sales are classified as “Revenue-Products” on the Company’s consolidated statements of operations. TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Revenue - Software The Company designs and develops software products. Software development usually includes developing software, integrating various isolated software systems into one, and testing the software. The design and build process, together with the integration of the various elements, are generally determined to be essential to the functionality of the delivered software. The Company recognized the software sales at the point of delivery. The Company usually completes the software support service in one-off and recognizes the revenue at the point of delivery of service because the Company does not have an enforceable right to payment for performance completed to date. Revenues from software development contracts are classified as “Revenue-Software” on the Company’s consolidated statements of operations. Revenue - Advertising The Company generates revenues primarily from providing advertising slots to customers to promote their businesses by broadcasting advertisements on identifiable digital ads display terminals and vehicular ads display terminals in different geographic regions and locations through a cloud-based new media sharing platform. The Company also contracts individuals to promote special events or for various occasions. The Company is only obligated to broadcast the advertisements to the contracted digital ads display terminals, and therefore allocates 100 The Company recognizes the revenues, net of applicable taxes, from advertisement broadcasting contracts with customers over the contracted advertising duration. TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Revenue - Other The Company also reports other revenue which comprises revenue generated from System upgrade and technical support services, platform service fee, and rental income. System upgrade and technical support revenue is recognized when performance obligations are satisfied upon completion of the services. Platform service fee is charged based on number of the display terminals used by the customers or a percentage of advertising revenue generated by the display terminals. Platform service revenue is recognized on a monthly basis over the contract period. The Company follows ASC 842 – Leases that requires lessor to identify the underlying assets and allocate rental income among considerations in lease and non-lease components. The Company owns a unit of office space renting out to a third party with lease term of two years starting from May 1, 2022 to April 30, 2024, and the lease term is extended by two years to April 30, 2026. 123,000 128,000 SCHEDULE OF ANNUAL MINIMUM RENTAL INCOME RECEIVED Annual minimum rental income to be received in the next 5 years: 2024 123,405 2025 246,811 2026 82,270 Total 452,486 Contract balances The Company records advances from customers when cash payments are received or due in advance of our performance. For the six months ended June 30, 2024 and 2023, the Company recognized revenue of approximately $ 682,000 463,000 Practical expedients and exemptions The Company generally expenses sales commissions if any incurred because the amortization period would have been one year or less. In many cases, the Company is approached by customers for customizing software products for their specific needs without incurring significant selling expenses. The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. |
Cost of Sales - advertising | (o) Cost of Sales - advertising The cost of sales for advertising revenue mainly comprises of direct costs of generating advertising revenue including lease expense for the wall space, to where the ads display terminal to be installed, installation costs of ads display terminals, depreciation of display termination, labor, and other related expenses. The Company had ceased the operation of cryptocurrency mining business by December 2022. TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS |
Discontinued Operations | (p) Discontinued Operations The Company follows “ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” for reporting discontinued operations. Under the revised standard, a discontinued operation must represent a strategic shift that has or will have a major effect on an entity’s operations and financial results. Examples could include a disposal of a major line of business, a major geographical area, a major equity method investment, or other major parts of an entity. The revised standard also allows an entity to have certain continuing cash flows or involvement with the component after the disposal. Additionally, the standard requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. |
Segment reporting | (q) Segment reporting Segment information is consistent with how the Chief Operating Decision Maker, i.e., the Directors of the Company, review the businesses, make investing and resource allocation decisions and assess operating performance. Transfers and sales between reportable segments, if any, are recorded at cost. The Company reports financial and operating information in the following three segments: (1) Cloud-based Technology (CBT) segment — It includes the Company’s cloud-based products, high-end data storage servers and related services sold to private sectors including new media, healthcare, education and residential community management, and among other industries and applications. In this segment, the Company generates revenues from the sales of hardware and software total solutions with proprietary software and content as well as from designing and developing software products specifically customized for private sector customers’ needs for a fixed price. The Company includes the revenue and cost of revenue of high-end data storage servers in the CBT segment. Advertising services is included in the CBT segment, after the Company consummated the acquisition of TNM. Advertisements are delivered to the ads display terminals and vehicular ads display terminals through the Company’s cloud-based new media sharing platform. Incorporation of advertising services complements the Company’s out-of-home advertising business strategy. (2) Traditional Information Technology (TIT) segment — The TIT segment includes the Company’s project-based technology products and services sold to the public sector. The solutions the Company has sold primarily include Geographic Information Systems (GIS), Digital Public Security Technology (DPST), and Digital Hospital Information Systems (DHIS). In this segment, the Company generates revenues from sales of hardware and system integration services. As a result of the business transformation, the TIT segment is gradually being phased out in 2021. TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS |
Recent Accounting Pronouncements | (r) Recent Accounting Pronouncements In March 2023, the FASB issued ASU 2023-01, “Leases (Topic 842): Common Control Arrangements” for common control lease arrangements and related leasehold improvements. This ASU was effective for fiscal years beginning after December 15, 2023 and did not have a material impact on the Company’s consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which requires public entities to disclose expanded information about their reportable segment(s)’ significant expenses and other segment items on an interim and annual basis. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The ASU is required to be applied retrospectively to all prior periods presented in the financial statements once adopted. The Company is evaluating the disclosure requirements related to the new standard. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires public entities to disclose specific tax rate reconciliation categories, as well as income taxes paid disaggregated by jurisdiction, amongst other disclosure enhancements. The ASU is effective for financial statements issued for annual periods beginning after December 15, 2024, with early adoption permitted. The ASU can be adopted on a prospective or retrospective basis. The Company is evaluating the disclosure requirements related to the new standard. The Company has considered all other recently issued accounting pronouncements and does not believe that the adoption of such pronouncements will have a material impact on the consolidated financial statements. |
ORGANIZATION, PRINCIPAL ACTIV_2
ORGANIZATION, PRINCIPAL ACTIVITIES AND MANAGEMENT’S PLANS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SCHEDULE OF SUBSIDIARIES AND VARIABLE INTEREST ENTITY | The following table lists our subsidiaries as of the respective date as indicated below. SCHEDULE OF SUBSIDIARIES AND VARIABLE INTEREST ENTITY Entities Subsidiaries June 30, 2024 % owned December 31, 2023 % owned December 31, 2022 % owned Location Taoping Inc. British Virgin Islands Taoping Holdings Limited (THL) Subsidiary 100 % 100 % 100 % British Virgin Islands Taoping Group (China) Ltd. (IST HK) Subsidiary 100 % 100 % 100 % Hong Kong, China Taoping Digital Assets (Asia) Limited (TDAL) Subsidiary - - 100 % Hong Kong, China Taoping Digital Assets (Hong Kong) Limited (TDL) Subsidiary - - 100 % Hong Kong, China Taoping Capital Limited (TCL) Subsidiary - - 100 % Hong Kong, China Kazakh Taoping Operation Management Co. Ltd. (KTO) Subsidiary - - 100 % Kazakhstan Kazakh Taoping Data Center Co. Ltd. (KTD) Subsidiary - - 100 % Kazakhstan Information Security Tech. (China) Co., Ltd. (IST) Subsidiary 100 % 100 % 100 % Shenzhen, China TopCloud Software (China) Co., Ltd. (TopCloud) Subsidiary 100 % 100 % 100 % Shenzhen, China Information Security IoT Tech. Co., Ltd. (ISIOT) Subsidiary 100 % 100 % 100 % Shenzhen, China Biznest Internet Tech. Co., Ltd. (Biznest) Subsidiary 100 % 100 % 100 % Shenzhen, China iASPEC Bocom IoT Tech. Co., Ltd. (Bocom) Subsidiary 100 % 100 % 100 % Shenzhen, China Taoping New Media Co., Ltd. (TNM) Subsidiary 100 % 100 % 100 % Shenzhen, China TopCloud Tech. (Chenzhou) Co., Ltd. (TCTCZ) Subsidiary - - 100 % Chenzhou, China Taoping Digital Tech. (Jiangsu) Co., Ltd. (TDTJS) Subsidiary 100 % 100 % 100 % Jiangsu, China Zhenjiang Taoping IoT Tech. Co., Ltd. (ZJIOT) Subsidiary - 100 % 100 % Zhenjiang, China Taoping EP Holdings (Shenzhen) Co., Ltd. (TEPH) Subsidiary 51 % 51 % - Shenzhen, China Fujian Taoping Investment Co., Ltd. (FJTI) Subsidiary 100 % 100 % - Fujian, China Taoping (Guangxi) EP Tech. Co., Ltd. (TPGXT) Subsidiary 100 % 100 % - Guangxi, China Taoping Industrial (Yunnan) Co., Ltd. (TIYN) Subsidiary 100 % - - Yunnan, China |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLE | Accounts receivable as of June 30, 2024 and December 31, 2023 are as follows: SCHEDULE OF ACCOUNTS RECEIVABLE June 30, 2024 December 31, 2023 (Unaudited) Accounts Receivable $ 14,234,246 $ 19,471,159 Allowance for credit losses (6,797,395 ) (11,407,879 ) Accounts Receivable, net $ 7,436,851 $ 8,063,280 Accounts Receivable - related parties $ 342,123 $ 14,814,842 Allowance for credit losses - related parties (98,937 ) (14,184,067 ) Accounts Receivable - related parties, net $ 243,186 $ 630,775 |
SCHEDULE OF ALLOWANCE FOR CREDIT LOSSES | SCHEDULE OF ALLOWANCE FOR CREDIT LOSSES Balance at January 1, 2023 $ 25,484,295 Increase in allowance for credit losses 794,087 Foreign exchange difference (686,436 ) Balance at December 31, 2023 $ 25,591,946 Increase in allowance for credit losses 938,628 Decrease from dissolution of a subsidiary (1,119 ) Amounts written off as uncollectible (18,751,521 ) Foreign exchange difference (881,602 ) Balance at June 30, 2024 (Unaudited) $ 6,896,332 |
SCHEDULE OF PROPERTY , EQUIPMENT AND SOFTWARE ESTIMATED USEFUL LIVES | SCHEDULE OF PROPERTY , EQUIPMENT AND SOFTWARE ESTIMATED USEFUL LIVES Office buildings 20 50 Lease improvement Shorter of lease term or assets lives Electronics equipment, furniture and fixtures 3 5 Motor vehicles 5 Purchased software 5 Media display equipment 5 Cryptocurrency mining machine 3 |
SCHEDULE OF ANNUAL MINIMUM RENTAL INCOME RECEIVED | SCHEDULE OF ANNUAL MINIMUM RENTAL INCOME RECEIVED Annual minimum rental income to be received in the next 5 years: 2024 123,405 2025 246,811 2026 82,270 Total 452,486 |
BUSINESS ACQUISITION (Tables)
BUSINESS ACQUISITION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Zhenjiang Taoping IoT Tech. Co., Ltd (ZJIOT) [Member] | |
Business Acquisition [Line Items] | |
SCHEDULE OF BUSINESS ACQUISITION ASSETS ACQUIRED, AND LIABILITIES ASSUMED | The following table summarizes the purchase price allocation for ZJIOT, and the amounts of the assets acquired, and liabilities assumed which were based on their estimated fair values at the acquisition date: SCHEDULE OF BUSINESS ACQUISITION ASSETS ACQUIRED, AND LIABILITIES ASSUMED Cash $ 4,116 Accounts receivable, net 260,189 Advances to suppliers 4,252 Other receivables, net 2,532 Property, plant and equipment, net 215,689 Accounts payable (250,706 ) Advances from customers (8,046 ) Accrued payroll and benefits (10,633 ) Other payables and accrued expenses (8,923 ) Total net assets acquired 208,470 Goodwill 58,922 Total purchase price $ 267,392 |
INCOME (LOSS) PER SHARE (Tables
INCOME (LOSS) PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Income (loss) per share – Basic and Diluted* | |
SCHEDULE OF COMPONENTS OF BASIC AND DILUTED EARNINGS PER SHARE | Components of basic and diluted earnings per share were as follows for the six months ended June 30, 2024 and 2023: SCHEDULE OF COMPONENTS OF BASIC AND DILUTED EARNINGS PER SHARE Six Months Ended June 30, 2024 * Six Months Ended June 30, 2023 * (Unaudited) (Unaudited) Numerator: Net income (loss) attributable to the Company $ 588,744 $ (1,809,030 ) Denominator: Weighted average outstanding ordinary shares-Basic * 4,479,520 1,638,052 -dilutive effect of convertible note 84,743 - Weighted average outstanding ordinary shares- Diluted * 4,564,263 1,638,052 Earnings (loss) per share attributable to the Company * Basic $ 0.13 $ (1.10 ) Diluted $ 0.13 $ (1.10 ) CONTINUING OPERATIONS Net income (loss) attributable to the Company $ 588,744 $ (1,790,303 ) Denominator: Weighted average outstanding ordinary shares-Basic * 4,479,520 1,638,052 -dilutive effect of convertible note 84,743 - Weighted average outstanding ordinary shares- Diluted * 4,564,263 1,638,052 Earnings (loss) per share attributable to the Company * Basic $ 0.13 $ (1.09 ) Diluted $ 0.13 $ (1.09 ) DISCONTINUED OPERATIONS Net income (loss) attributable to the Company $ - $ (18,727 ) Denominator: Weighted average outstanding ordinary shares-Basic * - 1,638,052 Weighted average outstanding ordinary shares- Diluted * - 1,638,052 Loss per share attributable to the Company* Basic $ - $ (0.01 ) Diluted $ - $ (0.01 ) * On August 1, 2023, the Company implemented a one-for-ten reverse stock split |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORIES | As of June 30, 2024 and December 31, 2023, inventories consist of: SCHEDULE OF INVENTORIES June 30, 2024 December 31, 2023 (Unaudited) Raw materials $ 3,295 $ 3,379 Finished goods 3,313,922 1,336,771 Inventories, gross $ 3,317,217 $ 1,340,150 Allowance for slow-moving or obsolete inventories (99,048 ) (89,583 ) Inventories, net $ 3,218,169 $ 1,250,567 |
PROPERTY, EQUIPMENT AND SOFTW_2
PROPERTY, EQUIPMENT AND SOFTWARE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY, EQUIPMENT AND SOFTWARE | As of June 30, 2024 and December 31, 2023, property, equipment and software consist of: SCHEDULE OF PROPERTY, EQUIPMENT AND SOFTWARE June 30, 2024 December 31, 2023 (Unaudited) Office buildings $ 3,847,210 $ 4,300,780 Electronic equipment, furniture and fixtures 4,079,302 3,281,359 Media display equipment 908,337 1,081,589 Purchased software 7,207,537 7,185,219 Total 16,042,386 15,848,947 Less: accumulated depreciation (9,911,623 ) (9,171,463 ) Property, equipment and software, net $ 6,130,763 $ 6,677,484 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
SCHEDULE OF CRYPOCURRENCY MINING WITHIN DISCONTINUED OPERATIONS | The significant items included within discontinued operations are as follows: SCHEDULE OF CRYPOCURRENCY MINING WITHIN DISCONTINUED OPERATIONS Six Months Ended June 30, 2024 Six Months Ended June 30, 2023 (Unaudited) (Unaudited) Revenue - Cryptocurrency mining $ - $ - Cost - Cryptocurrency mining - 276,926 Administrative expenses - (279,995 ) Operating gain from discontinued operations - 3,069 Other (loss), net - (21,805 ) Interest income - 9 (Loss) from discontinued operations before income taxes - (18,727 ) Income tax expense - - Net (loss) from discontinued operations $ - $ (18,727 ) As of June 30, 2024 and December 31, 2023, no assets and liabilities of discontinued operations included within the Consolidated Balance Sheets. Six Months Ended June 30, 2024 Six Months Ended June 30, 2023 (Unaudited) (Unaudited) Net cash provided by operating activities $ - $ 109,202 Net cash provided by investing activities - 237,635 CRYPTOCURRENCIES As of June 30, 2024 and December 31, 2023, no cryptocurrencies held by the Company. |
BANK LOANS (Tables)
BANK LOANS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF SHORT-TERM BANK DEBT | SCHEDULE OF SHORT-TERM BANK DEBT June 30, 2024 December 31, 2023 (Unaudited) Secured short-term loans $ 7,950,679 $ 8,547,509 Total short-term bank loans $ 7,950,679 $ 8,547,509 |
SCHEDULE OF SECURED SHORT-TERM BANK DEBT | Detailed information of secured short-term loan balances as of June 30, 2024 and December 31, 2023 were as follows: SCHEDULE OF SECURED SHORT-TERM BANK DEBT June 30, 2024 December 31, 2023 (Unaudited) Guaranteed by IST and Mr. Lin and Collateralized by the real property of ISIOT and equity investment of IST HK $ 1,348,039 $ 1,777,205 Collateralized by office buildings of IST and guaranteed by Mr. Lin 4,814,425 4,936,680 Guaranteed by Mr. Lin and IST HK 1,100,440 1,128,384 Guaranteed by Mr. Lin 687,775 705,240 Total $ 7,950,679 $ 8,547,509 Short term loan $ 7,950,679 $ 8,547,509 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF INCOME BEFORE INCOME TAXES | Pre-tax income (loss) from continuing operations and discontinued operations for the six months ended June 30, 2024 and 2023 were taxable in the following jurisdictions: SCHEDULE OF INCOME BEFORE INCOME TAXES Six Months Ended Six Months Ended June 30, 2024 June 30, 2023 (Unaudited) (Unaudited) PRC $ 1,298,457 $ 414,924 HK (1,122 ) (113,406 ) BVI (703,244 ) (2,076,035 ) Total income (loss) before income taxes $ 594,091 $ (1,774,517 ) |
SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) | Income tax expense (benefit) from continuing operations consists of the following: SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) Six Months Ended Six Months Ended June 30, 2024 June 30, 2023 (Unaudited) (Unaudited) Current tax expense $ 5,347 $ 34,513 Income tax expense $ 5,347 $ 34,513 |
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION | Current income tax expense (benefit) was recorded in 2024 and 2023 and was related to differences between the book and corporate income tax returns. SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION Six Months Ended Six Months Ended June 30, 2024 June 30, 2023 (Unaudited) (Unaudited) PRC statutory tax rate 25 % 25 % Expected income tax (benefit) $ 148,523 $ (443,629 ) Tax rate difference (129,413 ) (37,415 ) Permanent differences (340,313 ) (191,646 ) Tax effect of temporary differences not recognized - (116,103 ) Tax effect of tax losses unrecognized 326,550 823,306 Income tax expense $ 5,347 $ 34,513 |
OTHER CURRENT AND NON-CURRENT_2
OTHER CURRENT AND NON-CURRENT ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
SCHEDULE OF OTHER CURRENT ASSETS | (a) As of June 30, 2024, and December 31, 2023, other current assets consist of: SCHEDULE OF OTHER CURRENT ASSETS June 30, 2024 December 31, 2023 (Unaudited) Advances to unrelated parties (i) $ 472,851 $ 1,209,202 Advances to a related party 233,538 239,469 Advances to employees 88,407 78,566 Other current assets 86,383 112,833 Total $ 881,179 $ 1,640,070 (i) The advances to unrelated parties for business development are non-interest bearing and are due on demand. |
SCHEDULE OF OTHER NON-CURRENT ASSETS | (b) As of June 30, 2024 and December 31, 2023, Other assets, non-current consist of: SCHEDULE OF OTHER NON-CURRENT ASSETS June 30, 2024 December 31, 2023 (Unaudited) Other assets, non-current, net $ 359,519 $ 811,026 Total $ 359,519 $ 811,026 |
LONG-TERM INVESTMENTS (Tables)
LONG-TERM INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments, All Other Investments [Abstract] | |
SCHEDULE OF EQUITY METHOD INVESTMENTS | As of June 30, 2024, the Company’s equity method investments had a carrying value of $nil which were as follows: SCHEDULE OF EQUITY METHOD INVESTMENTS Investees Abbreviation % of Ownership Carrying value Qingdao Taoping IoT Co., Ltd. QD Taoping, or QD 47 % $ - Yunnan Taoping IoT Co., Ltd. YN Taoping, or YN 40 % - Jiangsu Taoping IoT Technology Co., Ltd. JS Taoping, or JS 25 % - Jiangsu Taoping New Media Co., Ltd JS New Media, or JN 21 % - $ - |
OTHER PAYABLES AND ACCRUED EX_2
OTHER PAYABLES AND ACCRUED EXPENSES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
SCHEDULE OF OTHER PAYABLE AND ACCRUED EXPENSES | As of June 30, 2024 and December 31, 2023, other payables and accrued expenses consist of: SCHEDULE OF OTHER PAYABLE AND ACCRUED EXPENSES June 30, 2024 December 31, 2023 (Unaudited) Advances from unrelated third parties (i) $ 889,346 $ 621,146 Other taxes payable (ii) 3,051,412 4,133,972 Accrued professional fees 60,000 230,000 Amount due to employees (iii) 194,638 158,396 Others 37,252 80,711 Other Payables and Accrued Expenses $ 4,232,648 $ 5,224,225 (i) The advances from unrelated parties are non-interest bearing and due on demand. (ii) The other taxes payable were the amounts due to the value added tax, business tax, city maintenance and construction tax, and individual income tax. (iii) The amounts due to employees were pertaining to employees’ out-of-pocket expenses for travel and meal allowance, etc. |
EQUITY (Tables)
EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
SCHEDULE OF SHARE BASED PAYMENTS EXPENSE | The following table provides the details of the approximate total share-based payments expense during the six months ended June 30, 2024 and 2023: SCHEDULE OF SHARE BASED PAYMENTS EXPENSE Six Months Ended June 30, 2024 Six Months Ended June 30, 2023 (Unaudited) (Unaudited) Employees and directors share-based payments $ - $ 1,360,000 (a) Shares issued for services 136,000 (a) 32,603 (a) Total share based payments expenses $ 136,000 $ 1,392,603 |
SUMMARY OF STOCK OPTION ACTIVITY | Stock option activity for the six months ended June 30, 2023 is summarized as follows: SUMMARY OF STOCK OPTION ACTIVITY Weighted Weighted Average Remaining Options Average Exercise Contractual Life Aggregated Intrinsic Outstanding* Price* (Years) Value Outstanding at January 1, 2023 28,250 $ 24.0 0.6 $ - Exercised - - Canceled (400 ) $ 24.0 Outstanding at June 30, 2023 (Unaudited) 27,850 $ 24.0 0.1 $ - Vested and expected to be vested as of June 30, 2023 (Unaudited) 27,850 $ 24.0 0.1 $ - Options exercisable as of June 30, 2023 (vested) (Unaudited) 27,850 $ 24.0 0.1 $ - * On August 1, 2023, the Company implemented a one-for-ten reverse stock split of the Company’s issued and outstanding ordinary shares. Except shares authorized, all share and per share information has been retroactively adjusted to give effect to the reverse stock split for all periods presented, unless otherwise indicated. |
CONSOLIDATED SEGMENT DATA (Tabl
CONSOLIDATED SEGMENT DATA (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
SCHEDULE OF SEGMENT REPORTING | Selected information by segment is presented in the following tables for the six months ended June 30, 2024 and 2023. SCHEDULE OF SEGMENT REPORTING Six Months Ended June 30, 2024 (Unaudited) Six Months Ended June 30, 2023 (Unaudited) Revenues (1) TIT Segment $ 60,795 $ 178,401 CBT Segment 18,017,752 13,899,608 $ 18,078,547 $ 14,078,009 (1) Revenues by operating segments exclude intercompany transactions. Six Months Six Months Income (loss) from operations TIT Segment $ (31,306 ) $ (21,900 ) CBT Segment 483,559 516,473 Corporate and others (2) (576,609 ) (2,170,806 ) (Loss) from operations (124,356 ) (1,676,233 ) Corporate other income, net 1,069,057 182,254 Corporate interest income 1,630 609 Corporate interest expense (352,240 ) (262,420 ) Income (loss) before income taxes 594,091 (1,755,790 ) Income tax expense (5,347 ) (34,513 ) Income from continuing operations 588,744 (1,790,303 ) Income from discontinued operations - (18,727 ) Net income (loss) 588,744 (1,809,030 ) Less: Loss attributable to the non-controlling interest - - Net income (loss) attributable to the Company $ 588,744 $ (1,809,030 ) (2) Includes non-cash compensation, professional fees and consultancy fees for the Company. Non-cash compensation by segment for the six months ended June 30, 2024 and 2023 are as follows: Six Months Six Months Non-cash compensation: Corporate and others $ 136,000 $ 1,392,603 Non-cash compensation $ 136,000 $ 1,392,603 Depreciation and amortization by segment for six months ended June 30, 2024 and 2023 are as follows: Six Months Six Months Depreciation and amortization: TIT Segment $ 9,942 $ 22,380 CBT Segment 1,119,782 1,259,306 Corporate and others - 7,586 $ 1,129,724 $ 1,289,272 TAOPING INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Six Months Ended June 30, 2024 (Unaudited) Six Months Ended June 30, 2023 (Unaudited) Provisions for allowance for credit losses on accounts receivable, other receivable and advances to suppliers: TIT Segment $ 4,378 $ (12,331 ) CBT Segment 1,693,100 986,240 $ 1,697,478 $ 973,909 Six Months Ended June 30, 2024 (Unaudited) Six Months Ended June 30, 2023 (Unaudited) Inventory obsolescence provision: TIT Segment $ (1,055 ) $ 2,455 CBT Segment 11,791 6,003 $ 10,736 $ 8,458 Total assets by segment as of June 30, 2024 and December 31, 2023 are as follows: June 30, 2024 (Unaudited) December 31, 2023 Total assets TIT Segment $ 127,314 $ 131,137 CBT Segment 33,744,814 31,384,549 Corporate and others 207,566 1,310,628 $ 34,079,694 $ 32,826,314 |
SCHEDULE OF SUBSIDIARIES AND VA
SCHEDULE OF SUBSIDIARIES AND VARIABLE INTEREST ENTITY (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Taoping Holdings Limited (THL) [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Entities | Taoping Holdings Limited (THL) | ||
Location | British Virgin Islands | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100% | 100% | 100% |
Taoping Group (China) Ltd. (IST HK) [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Entities | Taoping Group (China) Ltd. (IST HK) | ||
Location | Hong Kong, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100% | 100% | 100% |
Taoping Digital Assets (Asia) Limited (TDAL) [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Entities | Taoping Digital Assets (Asia) Limited (TDAL) | ||
Location | Hong Kong, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100% | ||
Taoping Digital Assets (Hong Kong) Limited (TDL) [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Entities | Taoping Digital Assets (Hong Kong) Limited (TDL) | ||
Location | Hong Kong, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100% | ||
Taoping Capital Limited (TCL) [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Entities | Taoping Capital Limited (TCL) | ||
Location | Hong Kong, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100% | ||
Kazakh Taoping Operation Management Co. Ltd. (KTO) [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Entities | Kazakh Taoping Operation Management Co. Ltd. (KTO) | ||
Location | Kazakhstan | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100% | ||
Kazakh Taoping Data Center Co. Ltd. (KTD) [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Entities | Kazakh Taoping Data Center Co. Ltd. (KTD) | ||
Location | Kazakhstan | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100% | ||
Information Security Tech. (China) Co., Ltd. (IST) [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Entities | Information Security Tech. (China) Co., Ltd. (IST) | ||
Location | Shenzhen, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100% | 100% | 100% |
TopCloud Software (China) Co., Ltd. (TopCloud) [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Entities | TopCloud Software (China) Co., Ltd. (TopCloud) | ||
Location | Shenzhen, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100% | 100% | 100% |
Information Security IoT Tech. Co., Ltd. (ISIOT) [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Entities | Information Security IoT Tech. Co., Ltd. (ISIOT) | ||
Location | Shenzhen, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100% | 100% | 100% |
Biznest Internet Tech. Co., Ltd. (Biznest) [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Entities | Biznest Internet Tech. Co., Ltd. (Biznest) | ||
Location | Shenzhen, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100% | 100% | 100% |
iASPEC Bocom IoT Tech. Co., Ltd. (Bocom) [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Entities | iASPEC Bocom IoT Tech. Co., Ltd. (Bocom) | ||
Location | Shenzhen, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100% | 100% | 100% |
Taoping New Media Co., Ltd. (TNM) [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Entities | Taoping New Media Co., Ltd. (TNM) | ||
Location | Shenzhen, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100% | 100% | 100% |
TopCloud Tech. (Chenzhou) Co., Chenzhou, Ltd. (TCTCZ) [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Entities | TopCloud Tech. (Chenzhou) Co., Ltd. (TCTCZ) | ||
Location | Chenzhou, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100% | ||
Taoping Digital Tech. (Jiangsu) Jiangsu, Co., Ltd. (TDTJS) [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Entities | Taoping Digital Tech. (Jiangsu) Co., Ltd. (TDTJS) | ||
Location | Jiangsu, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100% | 100% | 100% |
Zhenjiang Taoping IoT Tech. Co., Ltd (ZJIOT) [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Entities | Zhenjiang Taoping IoT Tech. Co., Ltd. (ZJIOT) | ||
Location | Zhenjiang, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100% | 100% | |
Taoping EP Holdings Shenzhen Co Ltd TEPH [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Entities | Taoping EP Holdings (Shenzhen) Co., Ltd. (TEPH) | ||
Location | Shenzhen, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 51% | 51% | |
Fujian Taoping Investment Co Ltd FJTI [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Entities | Fujian Taoping Investment Co., Ltd. (FJTI) | ||
Location | Fujian, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100% | 100% | |
Taoping Guangxi EP Tech Co Ltd TPGXT [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Entities | Taoping (Guangxi) EP Tech. Co., Ltd. (TPGXT) | ||
Location | Guangxi, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100% | 100% | |
Taoping Industrial Yunnan Co Ltd TIYN [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Entities | Taoping Industrial (Yunnan) Co., Ltd. (TIYN) | ||
Location | Yunnan, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100% | ||
Parent Company [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Entities | Taoping Inc. | ||
Location | British Virgin Islands |
ORGANIZATION, PRINCIPAL ACTIV_3
ORGANIZATION, PRINCIPAL ACTIVITIES AND MANAGEMENT’S PLANS (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||||
Aug. 31, 2024 | Jul. 17, 2023 | Sep. 18, 2021 | Jul. 31, 2023 | Apr. 30, 2023 | Feb. 28, 2022 | Sep. 30, 2021 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Jul. 31, 2024 | Oct. 27, 2023 | Sep. 30, 2023 | Sep. 06, 2023 | May 31, 2023 | Jun. 07, 2022 | Jan. 31, 2022 | Jun. 30, 2021 | |
Product Information [Line Items] | |||||||||||||||||||
Aggregate exercise price | $ 1,800,000 | ||||||||||||||||||
Number of shares restricted | 20,154 | ||||||||||||||||||
Net income loss | $ 588,744 | $ (1,809,030) | |||||||||||||||||
Net income loss | (588,744) | 1,809,030 | |||||||||||||||||
Net cash used in operating activities | 2,532,001 | $ 670,271 | |||||||||||||||||
Working capital | 9,200,000 | $ 5,200,000 | |||||||||||||||||
Revolving Credit Facility [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 8,000,000 | ||||||||||||||||||
Revolving Credit Facility [Member] | Subsequent Event [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,800,000 | ||||||||||||||||||
Revenue from Rights Concentration Risk [Member] | Revenue from Contract with Customer Benchmark [Member] | Taoping New Media Co., Ltd [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Revenue percentage | 28.40% | ||||||||||||||||||
Parent [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Number of shares restricted | 61,225 | ||||||||||||||||||
Number of shares restricted, value | $ 1,800,000 | ||||||||||||||||||
iASPEC Technology Group Co., Ltd. (iASPEC) [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Disposal group including discontinued operation, consideration | |||||||||||||||||||
Total recorded loss | $ 3,000,000 | ||||||||||||||||||
Taoping Digital Assets (Hong Kong) Limited (TDL) [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Disposal group including discontinued operation, consideration | |||||||||||||||||||
Taoping Capital Limited (TCL) [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Disposal group including discontinued operation, consideration | |||||||||||||||||||
Fujian Taoping Investment Co [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Disposal group including discontinued operation, consideration | |||||||||||||||||||
iASPEC Technology Group Co., Ltd. (iASPEC) [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Equity method investment, ownership percentage | 100% | ||||||||||||||||||
Taoping Digital Assets (Hong Kong) Limited (TDL) [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Equity method investment, ownership percentage | 100% | ||||||||||||||||||
Total recorded loss | $ 16,184 | ||||||||||||||||||
Taoping Capital Limited (TCL) [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Equity method investment, ownership percentage | 100% | ||||||||||||||||||
Taoping EP Holdings Shenzhen Co Ltd TEPH [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Equity method investment, ownership percentage | 51% | ||||||||||||||||||
Fujian Taoping Investment Co [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Equity method investment, ownership percentage | 100% | ||||||||||||||||||
Mr. Jianghuai Lin [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Outstanding percent | 24.60% | ||||||||||||||||||
Investor [Member] | Public Stand by Equity Purchase Agreement [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Stock Issued During Period, Value, Other | $ 1,000,000 | $ 23,000 | |||||||||||||||||
Investor [Member] | Private Stand by Equity Purchase Agreement [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Stock Issued During Period, Value, Other | $ 10,000,000 | $ 230,000 | |||||||||||||||||
Investor [Member] | Subsequent Event [Member] | Private Stand by Equity Purchase Agreement [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Stock Issued During Period, Value, Other | $ 5,000,000 | ||||||||||||||||||
Taoping New Media Co., Ltd [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Acquired percentage | 100% | ||||||||||||||||||
Taoping New Media Co., Ltd [Member] | Mr. Jianghuai Lin [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Acquired percentage | 51% | ||||||||||||||||||
Zhenjiang Taoping IoT Tech. Co., Ltd (ZJIOT) [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Acquired percentage | 100% | ||||||||||||||||||
Number of shares restricted | 6,718 | 6,718 | |||||||||||||||||
Number of shares restricted, value | $ 49,000 | $ 118,000 | |||||||||||||||||
Fujian Taoping Investment Co [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Acquired percentage | 80% |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Nonrelated Party [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accounts Receivable - related parties | $ 14,234,246 | $ 19,471,159 |
Allowance for credit losses - related parties | (6,797,395) | (11,407,879) |
Accounts Receivable - related parties, net | 7,436,851 | 8,063,280 |
Related Party [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accounts Receivable - related parties | 342,123 | 14,814,842 |
Allowance for credit losses - related parties | (98,937) | (14,184,067) |
Accounts Receivable - related parties, net | $ 243,186 | $ 630,775 |
SCHEDULE OF ALLOWANCE FOR CREDI
SCHEDULE OF ALLOWANCE FOR CREDIT LOSSES (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Accounting Policies [Abstract] | ||
Allowance for credit losses, beginning | $ 25,591,946 | $ 25,484,295 |
Increase in allowance for credit losses | 938,628 | 794,087 |
Foreign exchange difference | (881,602) | (686,436) |
Decrease from dissolution of a subsidiary | (1,119) | |
Amounts written off as uncollectible | (18,751,521) | |
Allowance for credit losses, ending | $ 6,896,332 | $ 25,591,946 |
SCHEDULE OF PROPERTY , EQUIPMEN
SCHEDULE OF PROPERTY , EQUIPMENT AND SOFTWARE ESTIMATED USEFUL LIVES (Details) | Jun. 30, 2024 |
Office Building [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 20 years |
Office Building [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 50 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration] | Useful Life, Lease Term [Member] |
Electronics Equipment, Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 3 years |
Electronics Equipment, Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 5 years |
Motor Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 5 years |
Purchased Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of intangible assets | 5 years |
Media Display Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 5 years |
Cryptocurrency Mining Machine [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 3 years |
SCHEDULE OF ANNUAL MINIMUM RENT
SCHEDULE OF ANNUAL MINIMUM RENTAL INCOME RECEIVED (Details) | Jun. 30, 2024 USD ($) |
Accounting Policies [Abstract] | |
2024 | $ 123,405 |
2025 | 246,811 |
2026 | 82,270 |
Total | $ 452,486 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 6 Months Ended | ||||
Aug. 01, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | |||||
Reverse stock split | one-for-ten reverse stock split | ||||
Cash equivalents | $ 0 | $ 0 | |||
Cash | 480,300 | $ 460,147 | 1,300,855 | ||
Increase in allowance for credit losses | 18,700,000 | ||||
Allowance for credit losses | $ 6,896,332 | $ 25,591,946 | $ 25,484,295 | ||
Advertising cost, percentage | 100% | ||||
Lease term | The Company owns a unit of office space renting out to a third party with lease term of two years starting from May 1, 2022 to April 30, 2024, and the lease term is extended by two years to April 30, 2026. | ||||
Rental income | $ 123,000 | 128,000 | |||
Recognized revenue | $ 682,000 | $ 463,000 |
SCHEDULE OF BUSINESS ACQUISITIO
SCHEDULE OF BUSINESS ACQUISITION ASSETS ACQUIRED, AND LIABILITIES ASSUMED (Details) - Zhenjiang Taoping IoT Tech. Co., Ltd (ZJIOT) [Member] | Jan. 13, 2022 USD ($) |
Business Acquisition [Line Items] | |
Cash | $ 4,116 |
Accounts receivable, net | 260,189 |
Advances to suppliers | 4,252 |
Other receivables, net | 2,532 |
Property, plant and equipment, net | 215,689 |
Accounts payable | (250,706) |
Advances from customers | (8,046) |
Accrued payroll and benefits | (10,633) |
Other payables and accrued expenses | (8,923) |
Total net assets acquired | 208,470 |
Goodwill | 58,922 |
Total purchase price | $ 267,392 |
BUSINESS ACQUISITION (Details N
BUSINESS ACQUISITION (Details Narrative) ¥ in Millions | 6 Months Ended | 12 Months Ended | |||||||
Jan. 13, 2022 shares | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CNY (¥) | Jan. 31, 2022 | ||
Business Acquisition [Line Items] | |||||||||
Audited revenue | $ 2,294,400 | ¥ 15 | |||||||
Net loss | [1] | $ 588,744 | $ (1,809,030) | ||||||
Revenue | [2] | $ 18,078,547 | $ 14,078,009 | ||||||
Zhenjiang Taoping IoT Tech. Co., Ltd (ZJIOT) [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition, percentage of voting | 100% | ||||||||
Business acquisition, shares issued, shares | shares | 20,154 | ||||||||
Net loss | $ 180,000 | $ 130,000 | |||||||
Revenue | 70,000 | 600,000 | |||||||
Zhenjiang Taoping IoT Tech. Co., Ltd (ZJIOT) [Member] | Second Phase [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Audited revenue | 2,500,000 | ||||||||
Net loss | $ 500,000 | ||||||||
Zhenjiang Taoping IoT Tech. Co., Ltd (ZJIOT) [Member] | Third Phase [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Audited revenue | 2,600,000 | ||||||||
Net loss | $ 550,000 | ||||||||
Zhenjiang Taoping IoT Tech. Co., Ltd (ZJIOT) [Member] | Share Purchase Agreement [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition, percentage of voting | 95.56% | 100% | |||||||
Zhenjiang Taoping IoT Tech. Co., Ltd (ZJIOT) [Member] | Share Purchase Agreement [Member] | First Phase [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
us-gaap:SharesIssued | shares | 6,718 | ||||||||
Zhenjiang Taoping IoT Tech. Co., Ltd (ZJIOT) [Member] | Share Purchase Agreement [Member] | Second Phase [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
us-gaap:SharesIssued | shares | 6,718 | ||||||||
Zhenjiang Taoping IoT Tech. Co., Ltd (ZJIOT) [Member] | Share Purchase Agreement [Member] | Third Phase [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
us-gaap:SharesIssued | shares | 6,718 | ||||||||
[1]On August 1, 2023, the Company implemented a one-for-ten reverse stock split |
DISPOSALS OF CONSOLIDATED ENT_2
DISPOSALS OF CONSOLIDATED ENTITIES (Details Narrative) - USD ($) | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Oct. 27, 2023 | Sep. 06, 2023 | |
Loss on disposition of assets | $ 16,184 | |||
Loss on dissolution of a subsidiary | $ 83,590 | |||
Taoping Digital Assets Hong Kong Limited [Member] | ||||
Ownership percentage | 100% | |||
Taoping Digital Assets Asia Limited [Member] | ||||
Ownership percentage | 100% | |||
Taoping Capital Limited (TCL) [Member] | ||||
Ownership percentage | 100% |
SCHEDULE OF COMPONENTS OF BASIC
SCHEDULE OF COMPONENTS OF BASIC AND DILUTED EARNINGS PER SHARE (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | ||
Net income (loss) attributable to the Company | [1] | $ 588,744 | $ (1,809,030) |
Weighted average outstanding ordinary shares-Basic* | [1] | 4,479,520 | 1,638,052 |
Weighted average outstanding ordinary shares- Diluted* | [1] | 4,564,263 | 1,638,052 |
Basic | [1],[2] | $ 0.13 | $ (1.10) |
Diluted | [1],[2] | $ 0.13 | $ (1.10) |
Net income (loss) attributable to the Company | $ 588,744 | $ (1,790,303) | |
Basic | [2] | $ 0.13 | $ (1.09) |
Diluted | [2] | 0.13 | (1.09) |
Basic | [2] | (0.01) | |
Diluted | [2] | $ (0.01) | |
Continuing Operations [Member] | |||
Weighted average outstanding ordinary shares-Basic* | [1] | 4,479,520 | 1,638,052 |
-dilutive effect of convertible note | [1] | 84,743 | |
Weighted average outstanding ordinary shares- Diluted* | [1] | 4,564,263 | 1,638,052 |
Net income (loss) attributable to the Company | [1] | $ 588,744 | $ (1,790,303) |
Basic | [1] | $ 0.13 | $ (1.09) |
Diluted | [1] | $ 0.13 | $ (1.09) |
Discontinued Operations [Member] | |||
Net income (loss) attributable to the Company | [1] | $ (18,727) | |
Weighted average outstanding ordinary shares-Basic* | [1] | 1,638,052 | |
Weighted average outstanding ordinary shares- Diluted* | [1] | 1,638,052 | |
Basic | [1] | $ (0.01) | |
Diluted | [1] | $ (0.01) | |
[1]On August 1, 2023, the Company implemented a one-for-ten reverse stock split one-for-ten reverse stock split |
SCHEDULE OF COMPONENTS OF BAS_2
SCHEDULE OF COMPONENTS OF BASIC AND DILUTED EARNINGS PER SHARE (Details) (Parenthetical) | Aug. 01, 2023 |
Income (loss) per share – Basic and Diluted* | |
Reverse stock split | one-for-ten reverse stock split |
INCOME (LOSS) PER SHARE (Detail
INCOME (LOSS) PER SHARE (Details Narrative) - shares | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of anti-dilutive shares | 84,743 | |
Share-Based Payment Arrangement, Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of anti-dilutive shares | 0 | 27,850 |
Non Employees Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of anti-dilutive shares | 0 | 5,737 |
Non Employees Stock Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of anti-dilutive shares | 36,000 | 36,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) ¥ in Millions | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CNY (¥) | Jun. 30, 2024 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | |
Related Party Transaction [Line Items] | |||||||
Revenues from related parties | $ 2,294,400 | ¥ 15 | |||||
Related Company Owned By Mr Lin [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Due to related party | $ 1,400,000 | ¥ 10 | $ 2,100,000 | ¥ 15 | |||
Debt instrument term | 12 months | ||||||
Ownership percentage | 100% | 100% | |||||
Debt interest rate | 5.85% | ||||||
Debt, maturity date | Apr. 15, 2025 | ||||||
Taoping New Media Co., Ltd [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership percentage | 5% | 5% | |||||
Taoping Alliance Companies [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Revenues from related parties | $ 134,000 | $ 71,000 | |||||
Taoping Affiliate Customers [Member] | System Maintenance Service [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Other revenue related party | 1,000 | $ 2,000 | |||||
Taoping New Media Co., Ltd [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Due to related party | 1,582,000 | 3,038,000 | |||||
Related Company Owned By Mr Lin [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Due to related party | $ 200,000 | $ 900,000 | |||||
Debt instrument term | 2 years |
SCHEDULE OF INVENTORIES (Detail
SCHEDULE OF INVENTORIES (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 3,295 | $ 3,379 |
Finished goods | 3,313,922 | 1,336,771 |
Inventories, gross | 3,317,217 | 1,340,150 |
Allowance for slow-moving or obsolete inventories | (99,048) | (89,583) |
Inventories, net | $ 3,218,169 | $ 1,250,567 |
INVENTORIES (Details Narrative)
INVENTORIES (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
General and Administrative Expense [Member] | ||
Impairment of inventory | $ 10,700 | $ 8,400 |
SCHEDULE OF PROPERTY, EQUIPMENT
SCHEDULE OF PROPERTY, EQUIPMENT AND SOFTWARE (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 16,042,386 | $ 15,848,947 |
Less: accumulated depreciation | (9,911,623) | (9,171,463) |
Property, equipment and software, net | 6,130,763 | 6,677,484 |
Office Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 3,847,210 | 4,300,780 |
Electronic Equipment, Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 4,079,302 | 3,281,359 |
Media Display Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 908,337 | 1,081,589 |
Purchased Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 7,207,537 | $ 7,185,219 |
PROPERTY, EQUIPMENT AND SOFTW_3
PROPERTY, EQUIPMENT AND SOFTWARE (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation expenses | $ 1,129,724 | $ 1,510,586 |
Office Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Asset collateral amount | 2,400,000 | |
Continuing Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation expenses | 1,100,000 | 1,300,000 |
Discontinued Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation expenses | $ 0 | $ 200,000 |
SCHEDULE OF CRYPOCURRENCY MININ
SCHEDULE OF CRYPOCURRENCY MINING WITHIN DISCONTINUED OPERATIONS (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | ||
Revenue - Cryptocurrency mining | [1] | $ 18,078,547 | $ 14,078,009 |
Cost - Cryptocurrency mining | 13,937,855 | 10,203,109 | |
(Loss) from discontinued operations before income taxes | (18,727) | ||
Income tax expense | (5,347) | (34,513) | |
NET INCOME (LOSS) | 588,744 | (1,809,030) | |
Discontinued Operations [Member] | |||
Administrative expenses | (279,995) | ||
Operating gain from discontinued operations | 3,069 | ||
Other (loss), net | (21,805) | ||
Interest income | 9 | ||
(Loss) from discontinued operations before income taxes | (18,727) | ||
Income tax expense | |||
NET INCOME (LOSS) | (18,727) | ||
Net cash provided by operating activities | 109,202 | ||
Net cash provided by investing activities | 237,635 | ||
Discontinued Operations [Member] | Cryptocurrency Mining [Member] | |||
Revenue - Cryptocurrency mining | |||
Cost - Cryptocurrency mining | $ 276,926 | ||
[1]Revenues by operating segments exclude intercompany transactions. |
SCHEDULE OF SHORT-TERM BANK DEB
SCHEDULE OF SHORT-TERM BANK DEBT (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Disclosure [Abstract] | ||
Secured short-term loans | $ 7,950,679 | $ 8,547,509 |
Total short-term bank loans | $ 7,950,679 | $ 8,547,509 |
SCHEDULE OF SECURED SHORT-TERM
SCHEDULE OF SECURED SHORT-TERM BANK DEBT (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Short-Term Debt [Line Items] | ||
Short term loan | $ 7,950,679 | $ 8,547,509 |
Bank Loan One [Member] | ||
Short-Term Debt [Line Items] | ||
Short term loan | 1,348,039 | 1,777,205 |
Bank Loan Two [Member] | ||
Short-Term Debt [Line Items] | ||
Short term loan | 4,814,425 | 4,936,680 |
Bank Loan Three [Member] | ||
Short-Term Debt [Line Items] | ||
Short term loan | 1,100,440 | 1,128,384 |
Bank Loan Four [Member] | ||
Short-Term Debt [Line Items] | ||
Short term loan | $ 687,775 | $ 705,240 |
BANK LOANS (Details Narrative)
BANK LOANS (Details Narrative) - USD ($) | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | |||
Short term bank loan | $ 7,950,679 | $ 8,547,509 | |
Debt weiighted average interest rate | 4.43% | 4.76% | |
Interest expense | $ 200,000 | $ 200,000 | |
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 3.45% | ||
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 4.80% | ||
Short-Term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Short term bank loan | $ 8,000,000 | ||
Date instrument maturity date description | mature on various dates from July 6, 2024 to September 27, 2024 |
SCHEDULE OF INCOME BEFORE INCOM
SCHEDULE OF INCOME BEFORE INCOME TAXES (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Effective Income Tax Rate Reconciliation [Line Items] | ||
Total income (loss) before income taxes | $ 594,091 | $ (1,774,517) |
CHINA | ||
Effective Income Tax Rate Reconciliation [Line Items] | ||
Total income (loss) before income taxes | 1,298,457 | 414,924 |
HONG KONG | ||
Effective Income Tax Rate Reconciliation [Line Items] | ||
Total income (loss) before income taxes | (1,122) | (113,406) |
VIRGIN ISLANDS, BRITISH | ||
Effective Income Tax Rate Reconciliation [Line Items] | ||
Total income (loss) before income taxes | $ (703,244) | $ (2,076,035) |
SCHEDULE OF COMPONENTS OF INCOM
SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||
Current tax expense | $ 5,347 | $ 34,513 |
Income tax expense | $ 5,347 | $ 34,513 |
SCHEDULE OF EFFECTIVE INCOME TA
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||
PRC statutory tax rate | 25% | 25% |
Expected income tax (benefit) | $ 148,523 | $ (443,629) |
Tax rate difference | (129,413) | (37,415) |
Permanent differences | (340,313) | (191,646) |
Tax effect of temporary differences not recognized | (116,103) | |
Tax effect of tax losses unrecognized | 326,550 | 823,306 |
Income tax expense | $ 5,347 | $ 34,513 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - 6 months ended Jun. 30, 2024 ¥ in Millions, $ in Millions | USD ($) | CNY (¥) |
Effective Income Tax Rate Reconciliation [Line Items] | ||
Tax loss carry forwards | $ 20 | ¥ 143.8 |
High Technology Enterprise [Member] | ||
Effective Income Tax Rate Reconciliation [Line Items] | ||
Iincome tax rate | 15% | |
Biznest [Member] | ||
Effective Income Tax Rate Reconciliation [Line Items] | ||
Iincome tax rate | 12.50% | |
HONG KONG | ||
Effective Income Tax Rate Reconciliation [Line Items] | ||
Tax profit rate | 16.50% |
SCHEDULE OF OTHER CURRENT ASSET
SCHEDULE OF OTHER CURRENT ASSETS (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Advances to unrelated parties | [1] | $ 472,851 | $ 1,209,202 |
Advances to a related party | 233,538 | 239,469 | |
Advances to employees | 88,407 | 78,566 | |
Other current assets | 86,383 | 112,833 | |
Total | $ 881,179 | $ 1,640,070 | |
[1]The advances to unrelated parties for business development are non-interest bearing and are due on demand. |
SCHEDULE OF OTHER CURRENT ASS_2
SCHEDULE OF OTHER CURRENT ASSETS (Details) (Parenthetical) ¥ in Millions | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2024 USD ($) | Jun. 30, 2024 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CNY (¥) | |
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Due from third-party vendor | $ 233,538 | $ 239,469 | ||||||
Revenues | $ 2,294,400 | ¥ 15 | ||||||
Vendor [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Due from third-party vendor | 291,000 | |||||||
Funding commitment | $ 825,000 | ¥ 6 | ||||||
Percentage of vendor commission fee | 12% | |||||||
Percentage of subcontractor fee | 50% | |||||||
Revenues | $ 1,510,000 | ¥ 10.9 | $ 2,947,000 | ¥ 20.8 | $ 1,111,000 | ¥ 7.5 | $ 2,386,360 | ¥ 15.2 |
SCHEDULE OF OTHER NON-CURRENT A
SCHEDULE OF OTHER NON-CURRENT ASSETS (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Other assets, non-current, net | $ 359,519 | $ 811,026 |
Total | $ 359,519 | $ 811,026 |
OTHER CURRENT AND NON-CURRENT_3
OTHER CURRENT AND NON-CURRENT ASSETS (Details Narrative) ¥ in Millions | 6 Months Ended | 7 Months Ended | |||||||||||||||||||||
Oct. 01, 2020 | Jun. 30, 2024 USD ($) | May 30, 2024 USD ($) | May 30, 2024 CNY (¥) | Nov. 30, 2023 USD ($) | Nov. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | May 30, 2023 USD ($) | May 30, 2023 CNY (¥) | Nov. 30, 2022 USD ($) | Nov. 30, 2022 CNY (¥) | May 30, 2022 USD ($) | May 30, 2022 CNY (¥) | Nov. 30, 2021 USD ($) | Nov. 30, 2021 CNY (¥) | Apr. 30, 2021 USD ($) | Apr. 30, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 USD ($) | Dec. 31, 2019 CNY (¥) | ||
Other commitment | $ 4,100,000 | ¥ 30 | $ 4,100,000 | ¥ 30 | |||||||||||||||||||
Revenue | [1] | $ 18,078,547 | $ 14,078,009 | ||||||||||||||||||||
Debt instrument covenant description | The revenue is to increase incrementally by 15% in every six months going forward until the contract expires four years after the commencing date of the operation. | The revenue is to increase incrementally by 15% in every six months going forward until the contract expires four years after the commencing date of the operation. | |||||||||||||||||||||
Contract terms | 4 years | ||||||||||||||||||||||
Other assets non current | 359,519 | $ 811,026 | |||||||||||||||||||||
Reduction of amount receivable | 400,000 | ||||||||||||||||||||||
Advertising [Member] | |||||||||||||||||||||||
Revenue | $ 2,568,614 | $ 1,316,932 | $ 462,000 | ¥ 3 | |||||||||||||||||||
Increase in revenue | $ 1,082,000 | ¥ 7.8 | $ 2,581,000 | ¥ 18.3 | $ 562,000 | ¥ 3.9 | $ 2,285,000 | ¥ 14.1 | $ 531,000 | ¥ 3.4 | $ 510,000 | ¥ 3.3 | $ 462,000 | ¥ 3 | |||||||||
IOV Software [Member] | |||||||||||||||||||||||
Equity investment ownership percentage | 100% | ||||||||||||||||||||||
Vendor [Member] | |||||||||||||||||||||||
Due to related parties | $ 4,100,000 | ¥ 30 | $ 4,100,000 | ¥ 30 | |||||||||||||||||||
[1]Revenues by operating segments exclude intercompany transactions. |
OPERATING LEASES (Details Narra
OPERATING LEASES (Details Narrative) | 6 Months Ended | ||
Jun. 30, 2024 USD ($) | Jun. 30, 2024 CNY (¥) | Jun. 30, 2024 HKD ($) | |
Property, Plant and Equipment [Line Items] | |||
Rent expense of short term lease | $ 6,000 | ||
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Operating lease term | 1 year | 1 year | 1 year |
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Operating lease term | 3 years | 3 years | 3 years |
Zhenjiang Office Space [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed monthly lease payment | $ 2,528 | ¥ 17,882 | |
Operating lease term | 3 years | 3 years | 3 years |
Server Rooms [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed monthly lease payment | $ 5,656 | $ 40,000 | |
Operating lease term | 3 years | 3 years | 3 years |
Operating lease initial direct costs | $ 5,656 | $ 40,000 | |
Dormitory Lease [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed monthly lease payment | $ 4,807 | $ 34,000 | |
Operating lease term | 2 years | 2 years | 2 years |
Operating lease initial direct costs | $ 2,404 | $ 17,000 |
SCHEDULE OF EQUITY METHOD INVES
SCHEDULE OF EQUITY METHOD INVESTMENTS (Details) - Equity Method Investments [Member] | Jun. 30, 2024 USD ($) |
Equity method investments, carrying value | |
Qingdao Taoping IoT Co., Ltd. [Member] | |
Equity method investment, ownership percentage | 47% |
Equity method investments, carrying value | |
Yunnan Taoping IoT Co., Ltd. [Member] | |
Equity method investment, ownership percentage | 40% |
Equity method investments, carrying value | |
Jiangsu Taoping IoT Technology Co., Ltd. [Member] | |
Equity method investment, ownership percentage | 25% |
Equity method investments, carrying value | |
Jiangsu Taoping New Media Co., Ltd [Member] | |
Equity method investment, ownership percentage | 21% |
Equity method investments, carrying value |
LONG-TERM INVESTMENTS (Details
LONG-TERM INVESTMENTS (Details Narrative) - USD ($) | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Impairment Effects on Earnings Per Share [Line Items] | |||
Equity investments | $ 139,145 | ||
Equity method investments, other than impairments | 1,900,000 | ||
Recognized loss from equity method investments | 70,968 | $ (836) | |
Impairment charges | 0 | ||
Carrying value of equity investments without readily determinable fair value | 139,145 | $ 86,889 | |
Initial investment equity investments without readily determinable fair value | 711,000 | ||
Impairment charges of equity method investments | 10,000 | 20,000 | |
Transactions for identical or similar investments | 70,000 | ||
Equity Method Investments [Member] | |||
Impairment Effects on Earnings Per Share [Line Items] | |||
Recognized loss from equity method investments | $ 0 | $ 800 |
CONVERTIBLE NOTE PAYABLE (Detai
CONVERTIBLE NOTE PAYABLE (Details Narrative) - USD ($) | 6 Months Ended | ||||||
Sep. 27, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | May 31, 2024 | Apr. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | |
Short-Term Debt [Line Items] | |||||||
Convertible promissory note | $ 7,950,679 | $ 8,547,509 | |||||
Interest expense | 200,000 | $ 200,000 | |||||
Convertible Promissory Note [Member] | |||||||
Short-Term Debt [Line Items] | |||||||
Convertible promissory note | $ 609,000 | ||||||
Convertible promissory note term of interest and maturity | The Note matures in 12 months from the issue date of the Note (the “Maturity Date”), with an annual interest rate of 8%. | ||||||
Annual interest rate | 8% | ||||||
Original issue discount | $ 44,000 | 62,806 | |||||
Transaction costs | 15,000 | ||||||
Net proceeds from short term debt | $ 550,000 | ||||||
Debt instrument conversion price | $ 8 | $ 0.6670 | $ 0.8579 | $ 0.8790 | |||
Floor price | $ 2 | ||||||
Beneficial conversion feature assigned value | $ 156,440 | ||||||
Proceeds to beneficial conversion feature | $ 215,440 | ||||||
Interest expense | 119,000 | ||||||
Contractual obligation | 22,000 | ||||||
Debt issuance costs | 97,000 | ||||||
Unamortized debt discounts premium | $ 350,930 |
SCHEDULE OF OTHER PAYABLE AND A
SCHEDULE OF OTHER PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |||
Advances from unrelated third parties | [1] | $ 889,346 | $ 621,146 |
Other taxes payable | [2] | 3,051,412 | 4,133,972 |
Accrued professional fees | 60,000 | 230,000 | |
Amount due to employees | [3] | 194,638 | 158,396 |
Others | 37,252 | 80,711 | |
Other Payables and Accrued Expenses | $ 4,232,648 | $ 5,224,225 | |
[1]The advances from unrelated parties are non-interest bearing and due on demand.[2]The other taxes payable were the amounts due to the value added tax, business tax, city maintenance and construction tax, and individual income tax.[3]The amounts due to employees were pertaining to employees’ out-of-pocket expenses for travel and meal allowance, etc. |
RESERVE AND DISTRIBUTION OF P_2
RESERVE AND DISTRIBUTION OF PROFIT (Details Narrative) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Reserve And Distribution Of Profit | ||
Annual tax profits percentage | 10% | |
Statutory reserve percentage | 50% | |
General reserve | $ 10.2 | $ 10.2 |
SCHEDULE OF SHARE BASED PAYMENT
SCHEDULE OF SHARE BASED PAYMENTS EXPENSE (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Equity [Abstract] | ||
Employees and directors share-based payments | $ 1,360,000 | |
Shares issued for services | 136,000 | 32,603 |
Total share based payments expenses | $ 136,000 | $ 1,392,603 |
SUMMARY OF STOCK OPTION ACTIVIT
SUMMARY OF STOCK OPTION ACTIVITY (Details) - Equity Option [Member] - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Option outstanding, opening balance | [1] | 28,250 | |
Weighted average exercise price, beginning balance | [1] | $ 24 | |
Weighted average remaining contractual life (year) | 1 month 6 days | 7 months 6 days | |
Aggregated intrinsic value, outstanding beginning | |||
Option outstanding, exercised | [1] | ||
Weighted average exercise price, exercised | [1] | ||
Option outstanding, canceled | [1] | (400) | |
Weighted average exercise price, canceled | [1] | $ 24 | |
Option outstanding, ending balance | [1] | 27,850 | 28,250 |
Weighted average exercise price, ending balance | [1] | $ 24 | $ 24 |
Aggregated intrinsic value, outstanding ending | |||
Option outstanding, vested and expected to be vested | [1] | 27,850 | |
Weighted average exercise price, vested and expected to be vested | [1] | $ 24 | |
Weighted average remaining contractual life (year), vested and expected to be vested | 1 month 6 days | ||
Aggregated intrinsic value, vested and expected to be vested | |||
Option outstanding, options exercisable | [1] | 27,850 | |
Weighted average exercise price, options exercisable | [1] | $ 24 | |
Weighted average remaining contractual life (year), options exercisable | 1 month 6 days | ||
Aggregated intrinsic value, options exercisable | |||
[1]On August 1, 2023, the Company implemented a one-for-ten reverse stock split of the Company’s issued and outstanding ordinary shares. Except shares authorized, all share and per share information has been retroactively adjusted to give effect to the reverse stock split for all periods presented, unless otherwise indicated. |
EQUITY (Details Narrative)
EQUITY (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||||||||||
Jul. 17, 2023 | Jul. 24, 2020 | Jun. 30, 2024 | May 31, 2024 | Apr. 30, 2024 | Mar. 31, 2024 | Feb. 29, 2024 | Jan. 31, 2024 | Dec. 31, 2023 | Nov. 30, 2023 | Oct. 31, 2023 | Aug. 31, 2023 | Jul. 31, 2023 | May 31, 2023 | Apr. 30, 2023 | Jul. 31, 2022 | Mar. 31, 2022 | Feb. 28, 2022 | Mar. 31, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Sep. 27, 2023 | |
Ordinary shares, authorized | 100,000,000 | 100,000,000 | 100,000,000 | |||||||||||||||||||
Number of restricted shares issued | 20,154 | |||||||||||||||||||||
Shares issued for services, value | $ 1,360,000 | |||||||||||||||||||||
Proceeds from issuance of common stock | $ 2,887,990 | |||||||||||||||||||||
Unrecognized compensation expense related to non-vested share options | $ 0 | 0 | ||||||||||||||||||||
Administrative expense | 2,781,775 | $ 3,750,087 | ||||||||||||||||||||
Options exercised | $ 0 | |||||||||||||||||||||
Convertible Promissory Note [Member] | ||||||||||||||||||||||
Partial principal and accrued interest amount | $ 100,000 | $ 75,000 | $ 50,000 | |||||||||||||||||||
Conversion price | $ 0.6670 | $ 0.8579 | $ 0.8790 | $ 0.8790 | $ 8 | |||||||||||||||||
Number of shares converted | 149,925 | 87,422 | 56,882 | |||||||||||||||||||
Investor [Member] | ||||||||||||||||||||||
Number of shares issued | 580,000 | 1,380,000 | 590,000 | 310,000 | 580,000 | 420,000 | 200,000 | 300,000 | 80,000 | |||||||||||||
Shares issued price per share | $ 0.77 | $ 1.06 | $ 1.09 | $ 1.21 | $ 1.24 | $ 1.37 | $ 1.97 | $ 4.626 | $ 1.06 | |||||||||||||
Proceeds from issuance of common stock | $ 359,600 | $ 951,240 | $ 336,300 | $ 656,800 | $ 494,800 | $ 274,000 | $ 570,200 | $ 370,080 | $ 584,050 | |||||||||||||
Shares issued price per share | $ 0.663 | 0.99 | $ 1.08 | $ 1.06 | $ 1.11 | $ 1.84 | $ 0.99 | |||||||||||||||
Shares issued price per share | $ 0.65 | $ 0.945 | $ 0.945 | |||||||||||||||||||
Investor [Member] | Maximum [Member] | ||||||||||||||||||||||
Shares issued price per share | $ 0.62 | $ 0.62 | ||||||||||||||||||||
Investor [Member] | Public Stand by Equity Purchase Agreement [Member] | ||||||||||||||||||||||
Number of ordinary shares issued as commitment fee | 4,339 | |||||||||||||||||||||
Number of ordinary share issed as commitment fee, value | $ 1,000,000 | $ 23,000 | ||||||||||||||||||||
Investor [Member] | Private Stand by Equity Purchase Agreement [Member] | ||||||||||||||||||||||
Number of ordinary shares issued as commitment fee | 43,394 | |||||||||||||||||||||
Number of ordinary share issed as commitment fee, value | $ 10,000,000 | $ 230,000 | ||||||||||||||||||||
Consultant [Member] | ||||||||||||||||||||||
Shares issued for services | 50,000 | 2,000 | 2,000 | |||||||||||||||||||
Shares issued for services, value | $ 340,000 | $ 23,100 | $ 23,100 | |||||||||||||||||||
Consultant [Member] | Restricted Stock [Member] | ||||||||||||||||||||||
Shares issued for services | 50,000 | |||||||||||||||||||||
Directors Executive Offcers Employee [Member] | ||||||||||||||||||||||
Shares issued for services | 200,000 | |||||||||||||||||||||
Shares issued for services, value | $ 1,360,000 | |||||||||||||||||||||
Employees And Directors [Member] | 2016 Equity Incentive Plan [Member] | ||||||||||||||||||||||
Stock option granted | 33,335 | |||||||||||||||||||||
Fair value of stock option grant | 300,000 | |||||||||||||||||||||
Employee [Member] | ||||||||||||||||||||||
Stock option granted | 0 | 0 | ||||||||||||||||||||
Stock options exercised | 0 | 0 | ||||||||||||||||||||
Consultants [Member] | 2016 Equity Incentive Plan [Member] | ||||||||||||||||||||||
Warrant issued to consultants | ||||||||||||||||||||||
Administrative expense | ||||||||||||||||||||||
Zhenjiang Taoping IoT Tech. Co., Ltd (ZJIOT) [Member] | ||||||||||||||||||||||
Number of restricted shares issued | 6,718 | 6,718 | ||||||||||||||||||||
Number of restricted shares issued, value | $ 49,000 | $ 118,000 |
SCHEDULE OF SEGMENT REPORTING (
SCHEDULE OF SEGMENT REPORTING (Details) - USD ($) | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | ||
Segment Reporting Information [Line Items] | ||||
TOTAL REVENUE | [1] | $ 18,078,547 | $ 14,078,009 | |
(Loss) from operations | (124,356) | (1,676,233) | ||
Corporate other income, net | 1,069,057 | 182,254 | ||
Corporate interest income | 1,630 | 609 | ||
Corporate interest expense | (352,240) | (262,420) | ||
Income (loss) before income taxes | 594,091 | (1,755,790) | ||
Income tax expense | (5,347) | (34,513) | ||
Income from continuing operations | 588,744 | (1,790,303) | ||
Income from discontinued operations | (18,727) | |||
Net income (loss) | 588,744 | (1,809,030) | ||
Less: Loss attributable to the non-controlling interest | ||||
Net income (loss) attributable to the Company | [2] | 588,744 | (1,809,030) | |
Non-cash compensation | 136,000 | 1,392,603 | ||
Depreciation and amortization | 1,129,724 | 1,289,272 | ||
Provisions for allowance for credit losses on accounts receivable, other receivable and advances to suppliers | 1,697,478 | 973,909 | ||
Inventory obsolescence provision | 10,736 | 8,458 | ||
Total assets | 34,079,694 | 32,826,314 | $ 32,826,314 | |
TIT Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
TOTAL REVENUE | [1] | 60,795 | 178,401 | |
(Loss) from operations | (31,306) | (21,900) | ||
Depreciation and amortization | 9,942 | 22,380 | ||
Provisions for allowance for credit losses on accounts receivable, other receivable and advances to suppliers | 4,378 | (12,331) | ||
Inventory obsolescence provision | (1,055) | 2,455 | ||
Total assets | 127,314 | 131,137 | ||
CBT Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
TOTAL REVENUE | [1] | 18,017,752 | 13,899,608 | |
(Loss) from operations | 483,559 | 516,473 | ||
Depreciation and amortization | 1,119,782 | 1,259,306 | ||
Provisions for allowance for credit losses on accounts receivable, other receivable and advances to suppliers | 1,693,100 | 986,240 | ||
Inventory obsolescence provision | 11,791 | 6,003 | ||
Total assets | 33,744,814 | 31,384,549 | ||
Corporate and Others [Member] | ||||
Segment Reporting Information [Line Items] | ||||
(Loss) from operations | [3] | (576,609) | (2,170,806) | |
Non-cash compensation | 136,000 | 1,392,603 | ||
Depreciation and amortization | 7,586 | |||
Total assets | $ 207,566 | $ 1,310,628 | ||
[1]Revenues by operating segments exclude intercompany transactions.[2]On August 1, 2023, the Company implemented a one-for-ten reverse stock split |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 1 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |||
Paymemnt of legal fees | $ 32,200 | ¥ 231,866 | |
Contingency liability | $ 32,200 |
CONCENTRATIONS (Details Narrati
CONCENTRATIONS (Details Narrative) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer [Member] | |||
Concentration Risk [Line Items] | |||
Concentration of risk percentage | 14% | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | No Customer [Member] | |||
Concentration Risk [Line Items] | |||
Concentration of risk percentage | 10% | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Top Five Customer [Member] | |||
Concentration Risk [Line Items] | |||
Concentration of risk percentage | 29% | 31% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Top Five Receivables [Member] | |||
Concentration Risk [Line Items] | |||
Concentration of risk percentage | 70% | 48% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member] | |||
Concentration Risk [Line Items] | |||
Concentration of risk percentage | 37% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | |||
Concentration Risk [Line Items] | |||
Concentration of risk percentage | 12% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Customer [Member] | |||
Concentration Risk [Line Items] | |||
Concentration of risk percentage | 10% | ||
Purchases [Member] | Suppliers Concentration Risk [Member] | Five Unrelated Suppliers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration of risk percentage | 82% | 69% | |
Purchases [Member] | Suppliers Concentration Risk [Member] | Supplier One [Member] | |||
Concentration Risk [Line Items] | |||
Concentration of risk percentage | 50% | 23% | |
Purchases [Member] | Suppliers Concentration Risk [Member] | Supplier Two [Member] | |||
Concentration Risk [Line Items] | |||
Concentration of risk percentage | 12% | 18% |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | Jul. 15, 2024 | Jun. 24, 2024 |
Subsequent Event [Line Items] | ||
Minimum bid price | $ 1 | |
Subsequent Event [Member] | Standby Equity Purchase Agreement [Member] | ||
Subsequent Event [Line Items] | ||
Stock Issued During Period, Shares, New Issues | 600,000 | |
Share Price | $ 0.60 | |
Sale of Stock, Consideration Received on Transaction | $ 360,000 | |
Stock Issued During Period, Value, New Issues | $ 10,000,000 |