| Accounting Policies, by Policy (Policies) | 12 Months Ended |
| Dec. 31, 2021 |
| Organization and Business Description [Abstract] | |
| Basis of presentation | Basis of presentation The accompanying consolidated financial statements
have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
| Basis of consolidation | Basis of consolidation The consolidated financial statements include
the financial statements of the Company, its subsidiaries, the VIEs and the subsidiaries of the VIEs for which the Company or its subsidiary
is the primary beneficiary. A subsidiary is an entity in which the Company,
directly or indirectly, controls more than one half of the voting power or has the power to govern the financial and operating policies,
to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors
under a statute or agreement among the shareholders or equity holders. A consolidated VIE is an entity in which the Company,
or its subsidiaries, through contractual arrangements, has the power to direct the activities that most significantly impact the entity’s
economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the entity, and therefore the Company
or its subsidiaries are the primary beneficiary of the entity. All transactions and balances among the Group,
its subsidiaries, the VIEs and subsidiaries of the VIEs have been eliminated upon consolidation. |
| VIE companies | VIE companies
1) Contractual Agreements with VIE The following is a summary of the VIE agreements: Management and Consulting Service Agreement. Under the Consulting Services Agreements, the
Group has the exclusive right to provide management and consulting and other services to the VIEs for a consulting service fee from the
VIEs and agree to authorize the VIEs to use the trademarks, technologies and related intellectual property rights held by the Group. The
VIEs agree to pay the Group or the designated agent of the Group for the management and consulting services in the amount equivalent to
all the VIEs net profits after tax. The agreement shall be effective as of the date of agreement and shall remain effective until the
date when the Group terminates such agreements and Fintech, Hengpu or Nami Shanghai cease to exist. Equity Interest Pledge Agreements Pursuant
to the Equity Interest Pledge Agreements, each Shareholder of the VIEs agreed to pledge his equity interest in the VIEs to the Group
to secure the performance of the VIEs’ obligations under the Exclusive Business Cooperation Agreements and any such agreements
to be entered into in the future. Each shareholder of the VIEs agrees not to transfer, sell, pledge, dispose of or otherwise create any
encumbrance on their equity interests in the VIEs without the prior written consent of the Group. The Pledges became effective on such
date when the pledge of the Equity Interest contemplated herein were registered with the relevant Administration for Industry and Commerce
(the “AIC”) and remain effective until all contract obligations have been fully performed and all secured indebtedness has
been fully paid. The Pledges were registered with the competent branch of the State Administration for Industry and Commerce. Voting Rights Proxy Agreement. Under the Voting Rights Proxy Agreement, each
shareholder of the VIEs irrevocably authorizes the Group to exercise rights and powers as the shareholders of the VIEs, including but
not limited to, convening and attending shareholders’ meetings, voting on all matters of the VIEs requiring shareholder approval
and appointing directors and senior management members. The Voting Rights Proxy Agreements will remain in force unless otherwise terminated
in writing by the Group or with the written consent of all parties. Exclusive Call Option Agreement. Under the Exclusive Call Option Agreement, the
VIEs and their shareholders have irrevocably granted the Group an exclusive option to purchase or authorize their designated persons to
purchase all or part of each shareholder’s equity interests in the VIEs. The purchase price shall be equal to the minimum price
required by the relevant PRC laws. Without prior written consent of the Group, the VIEs shall not among other things, amend their articles
of association, sell or otherwise dispose of their assets or beneficial interests, enter into transactions which may adversely affect
their assets, liabilities, business operations, equity interests and other legal interests, or merge with any other entities or make any
investments, or distribute dividends. The Group has the right to transfer the rights and obligations pursuant to the Exclusive Call Option
Agreement to any third party, which do not require any prior consent of the VIEs and their shareholders. The Exclusive Call Option Agreement
will remain effective until the Group terminates this agreement with 30 days advance notice.
2) Risks in relation to the VIE structure The Group believes that the contractual arrangements
with its VIEs and their respective shareholders are in compliance with PRC laws and regulations and are legally enforceable. However,
uncertainties in the PRC legal system could limit the Group’s ability to enforce the contractual arrangements. If the legal structure
and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could:
● revoke the business and operating licenses of the Group’s PRC subsidiaries and VIEs;
● discontinue or restrict the operations of any related-party transactions between the Group’s PRC subsidiaries and VIEs;
● limit the Group’s business expansion in China by way of entering into contractual arrangements;
● impose fines or other requirements with which the Group’s PRC subsidiaries and VIEs may not be able to comply;
● require the Group’s PRC subsidiaries and VIEs to restructure the relevant ownership structure or operations; or
● restrict or prohibit the Group’s use of the proceeds of a public offering to finance the Group’s business and operations in China. The Group’s ability to conduct its financial
services business may be negatively affected if the PRC government were to carry out of any of the aforementioned actions. As a result,
the Group may not be able to consolidate its VIEs in its consolidated financial statements as it may lose the ability to exert effective
control over the VIEs – Fintech, Hengpu, and Nami Shanghai and their respective shareholders and it may lose the ability to receive
the economic benefits from the VIEs. The Group, however, does not believe such actions would result in the liquidation or dissolution
of the Group, its PRC subsidiaries and VIEs. The interests of the shareholders of VIEs may
diverge from that of the Group and that may potentially increase the risk that they would seek to act contrary to the contractual terms,
for example by influencing the VIEs not to pay the service fees when required to do so. The Group cannot assure that when conflicts of
interest arise, shareholders of the VIEs will act in the best interests of the Group or that conflicts of interests will be resolved in
the Group’s favor. Currently, the Group does not have existing arrangements to address potential conflicts of interest the shareholders
of the VIEs may encounter in their capacity as beneficial owners and directors of the VIEs, on the one hand, and as beneficial owners
and directors of the Group, on the other hand. The Group believes the shareholders of the VIEs will not act contrary to any of the contractual
arrangements and the exclusive option agreements provide the Group with a mechanism to remove the current shareholders of the VIEs should
they act to the detriment of the Group. The Group relies on certain current shareholders of the VIEs to fulfill their fiduciary duties
and abide by laws of the PRC and act in the best interest of the Group. If the Group cannot resolve any conflicts of interest or disputes
between the Group and the shareholders of the VIEs, the Group would have to rely on legal proceedings, which could result in disruption
of its business, and there are substantial uncertainties as to the PRC legal system and the outcome of any such legal proceedings. The following table sets forth the assets, liabilities,
results of operations and changes in cash and cash equivalents of the VIEs and their subsidiaries taken as a whole, which were included
in the Group’s consolidated financial statements for continuing operations with intercompany balances and transactions eliminated
between the VIEs and their subsidiaries:
December 31, December 31,
Total current asset $ 159,234,732 $ 43,832,012
Total assets $ 160,885,760 $ 47,223,358
Total current liabilities $ 90,440,038 $ 11,146,286
Total liabilities $ 90,589,026 $ 11,826,417
For the year ended December 31, For the year ended
Revenue generated from service $ 92,067,474 $ 42,190,191
Revenue generated from sales 68,132,237 -
Total revenue $ 160,199,711 $ 42,190,191
Net income $ 33,612,404 $ 11,583,787
For the year ended December 31, For the year ended
Net cash provided by operating activities $ 525,753 $ 2,560,400
Net cash provided by (used in) investing activities $ 569,301 $ (13,321,524 )
Net cash (used in) provided by financing activities $ (919,642 ) $ 4,051,162 As of December 31, 2021, there were no consolidated
assets of the VIEs that are collateral for the VIEs’ obligations and can only be used to settle the VIEs’ obligations. There
were no creditors (or beneficial interest holders) of the VIEs that have recourse to the general credit of the Group in the normal course
of business. The Group neither provides nor intends to provide additional financial or other support not previously contractually required
to the VIEs and subsidiaries of the VIEs. Relevant PRC laws and regulations restrict the VIEs from transferring a portion of its net assets,
equivalent to the balance of its paid-in capital, capital reserve and statutory reserves, to the Group in the form of loans, advances
or cash dividends. Please refer to Note 17 for disclosure of restricted net assets. |
| Non-controlling interests | Non-controlling
interests Non-controlling interests are recognized to reflect
the portion of the equity that is not attributable, directly, or indirectly, to the Group. Non-controlling interests are presented as
a separate component of equity in the consolidated balance sheets and statements of operations and other comprehensive income (loss) are
attributed to controlling and non-controlling interests. As of December 31, 2021, non-controlling
interest primarily relates to the 20% equity interest in Taiding and 49% equity interest in |
| Uses of estimates | Uses of estimates The preparation of consolidated financial statements
in conformity with U.S. GAAP 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 each reporting period. Actual results could differ from those estimates. Significant accounting estimates reflected in the Group’s
consolidated financial statements include: the allowance for doubtful accounts, the valuation of inventory, realizability of deferred
tax assets, costs to complete contracts, estimated useful lives and fair values in connection with the impairment of property and equipment,
the valuation of intangible assets and goodwill, accruals for income tax uncertainties, and the determination of fair values related
to business acquisitions. |
| Business combinations | Business combinations The Group accounts for business combinations using
the purchase method of accounting in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards
Codification (“ASC”) topic 805, Business Combinations. The purchase method of accounting requires the consideration transferred
to be allocated to the assets, including separately identifiable assets and liabilities the Group acquired, based on their estimated fair
values. The consideration transferred in an acquisition is measured as the aggregate of the fair values at the date of exchange of the
assets given, liabilities incurred, and equity instruments issued as well as the contingent consideration and all contractual contingencies
as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities
and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of
the extent of any non-controlling interests. The excess of (i) the total acquisition cost, fair value of the non-controlling interests
and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable
net assets of the acquiree, is recorded as goodwill. If the cost of the acquisition is less than the fair value of the net assets of the
subsidiary acquired, the difference is recognized directly in earnings as a bargain purchase gain. The determination and allocation of fair values
to the identifiable assets acquired, liabilities assumed, and non-controlling interests is based on various assumptions and valuation
methodologies requiring considerable judgment from management. The most significant variables in these valuations are discount rates,
terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine
the cash inflows and outflows. The Group determines discount rates to be used based on the risk inherent in the related activity’s
current business model and industry comparisons. Terminal values are based on the expected life of assets, the forecasted life cycle and
forecasted cash flows over that period. The fair value of the identifiable assets acquired, and liabilities assumed at the acquisition
date is based on a valuation performed by an independent valuation firm engaged by the Group. |
| Discontinued operations | Discontinued operations A component of a reporting entity or a group of
components of a reporting entity that are disposed or meet the criteria to be classified as held for sale, such as the management, having
the authority to approve the action, commits to a plan to sell the disposal group, should be reported as discontinued operations if the
disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. Discontinued
operations are reported when a component of an entity comprising operations and cash flows that can be clearly distinguished, operationally
and for financial reporting purposes, from the rest of the entity is classified as held for disposal or has been disposed of, if the component
either (1) represents a strategic shift or (2) have a major impact on an entity’s financial results and operations. Included in
the consolidated statements of operations and comprehensive income (loss), the results from discontinued operations are reported separately
from the income and expense from continuing operations and prior periods are presented on a comparative basis. In order to present the
financial effects of the continuing operations and discontinued operations, revenues and expenses arising from intra-group transactions
are eliminated except for those revenues and expenses that are considered to continue after the disposal of the discontinued operations,
if any. |
| Revenue recognition | Revenue recognition The Group follows FASB ASC Topic 606 Revenue from Contracts with Customers
(“ASC 606”). Under ASC 606, revenue is recognized when control of promised goods or services is transferred to the Company’s
customers in an amount of consideration to which an entity expects to be entitled to in exchange for those goods or services. All of the
Company’s contracts with customers do not contain cancelable and refund-type provisions. Under the guidance of ASC 606, the Group is required to (a) identify
the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate
the transaction price to the performance obligations in the contract and (e) recognize revenue when (or as) the Group satisfies its performance
obligation. In determining the transaction price, the Group includes variable consideration only to the extent that it is probable that
a significant reversal in the amount of cumulative revenue recognized would not occur. Revenues are recorded, net of sales related taxes
and surcharges. Net Financial services SMEs financing solutions: The Group earns
one-time advisory fees from its services provided to small-and mid-size enterprises The Group enters into one-time advisory fee
agreements with underwriters, financial institutions and issuers, which specifies the key terms and conditions of the arrangement.
Such agreements generally do not include rights of return, credits or discounts, rebates, price protection or other similar
privileges. The Group earns a one-time advisory fee from its clients upon offerings on the PRC provincial or national asset
exchanges or other designated markets. Revenue is calculated at a fixed charge rate with the amount of the offering (prorated by the
period length). The Group believes such arrangement represents a performance obligation that is satisfied at a point in time,
therefore, the underwriting related advisory fees are recognized as revenue upon the closing of the offerings. Recurring service fees: Supply chain solutions: |
| Disaggregation of revenue from financial service | Disaggregation
of revenue from financial service The Group
derives revenue primarily from one-time commissions and recurring service fees paid by clients or financial product providers.
The following tables show the revenue from financial services disaggregated by nature for the year ended December 31, 2021, 2020 and
2019:
For the year ended
2021 2020 2019
One-time commission fees $ 90,853,014 $ 42,082,585 $ 2,525,524
Recurring service fees 1,214,460 107,606 -
Total $ 92,067,474 $ 42,190,191 $ 2,525,524 Net Product Sales Revenues In accordance with ASC 606,
the Group evaluates whether it is appropriate to record the gross amount of product sales and related costs or the net amount earned as
commissions. When the Group is a principal, that the Group obtains control of the specified goods or services before they are transferred
to the customers, the revenues should be recognized in the gross amount of consideration to which it expects to be entitled in exchange
for the specified goods or services transferred. When the Group is an agent and its obligation is to facilitate third parties in fulfilling
their performance obligation for specified goods or services, the revenues should be recognized in the net amount for the amount of commission
which the Group earns in exchange for arranging for the specified goods or services to be provided by other parties. Revenues are recorded
net of value-added taxes. For the year ended December 31, 2021, the Group commenced a supply
chain trading business, which involves acquiring products, primarily agriculture and chemical products, from suppliers at customers’
requests in most cases and selling them directly to customers. Sales contracts are entered into with each individual customer. The Group
recognizes the product sales revenues from the supply chain trading business on a gross basis as the Group is acting as a principal in
these transactions as the Group (i) is responsible for fulfilling the promise to provide the specified goods, (ii) is responsible for
inventory risks and (iii) has discretion in establishing price. Revenues are recorded net of value-added taxes, or VAT. Revenue from the
sales of goods is recognized when the products are delivered and title passes to customers. |
| Practical expedience | Practical expedience The Group has applied the practical expedient
for certain revenue streams to exclude the value of remaining performance obligations for (i) contracts with an original expected term
of one year or less or (ii) contracts for which the Group recognizes revenue in proportion to the amount the Group has the right to invoice
for services performed. |
| Cash and cash equivalent | Cash and cash equivalents Cash and cash equivalents consist of cash on hand,
money market fund investments, time deposits, as well as highly liquid investments, which have original maturities of three months or
less. |
| Restricted Cash | Restricted Cash The Group had restricted cash of $179,421 and
$62,947 at December 31, 2021 and December 31, 2020, respectively, which are primarily security deposits related to our
financing services. In November 2016, the FASB issued Accounting Standards Update No. 2016-18, Statement of Cash Flows
(Topic 230): Restricted Cash, which requires companies to include amounts generally described as restricted cash and restricted cash equivalents
in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts presented in the statement of cash flows. |
| Short-term investments | Short-term
investments The Group’s short-term investments include investments in wealth management products issued by commercial banks and financial institutions that have a stated maturity
within one year and normally pay a prospective fixed interest rate. The wealth management products are unsecured and primarily invested
in financial instruments with high credit ratings and good liquidity in the interbank and exchange markets, including but not limited
to debt securities issued by financial institutions, central bank bills, interbank and exchange-traded bonds, and asset backed securities.
The Group measures the short-term investments at fair value using the quoted subscription or redemption prices published or by discounting
the future cash flows at the expected yield rate with reference to the expected benchmark yield rates of the wealth management product. |
| Credit losses | Credit losses In 2016, the FASB issued ASC Topic 326, which
amends previously issued guidance regarding the impairment of financial instruments by creating an impairment model that is based on expected
losses. The guidance is applicable to accounts receivable and the Group adopted ASC Topic 326 on January 1, 2020. Accounts receivable
are recorded at the original amounts less an allowance for any potential uncollectible amounts. The Group makes estimates of expected
credit and collectability trends for the allowance for credit losses based upon assessment of various factors, including historical experience,
the age of the accounts receivable balances, credit-worthiness of the customers, current economic conditions, reasonable and supportable
forecasts of future economic conditions, and other factors that may affect its ability to collect from the customers. The Group also provides
specific provisions for allowance when facts and circumstances indicate that the receivable is unlikely to be collected. Expected credit
losses for accounts receivable are recorded as general and administrative expenses on the consolidated statements of comprehensive income.
The initial impact of applying ASC Topic 326 on the consolidated financial statements is immaterial to the Group’s retained earnings
as of January 1, 2020. |
| Fair value of financial instruments | Fair value of financial instruments The Group follows the provisions of FASB ASC Section
820, “Fair Value Measurements and Disclosures” (“ASC 820”). ASC 820 clarifies the definition of fair value, prescribes
methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 — Inputs are unadjusted quoted prices
in active markets for identical assets or liabilities available at the measurement date. Level 2 — Inputs are unadjusted quoted prices
for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are
not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3 — Inputs are unobservable inputs
which reflect the reporting entity’s own assumptions on what assumptions market participants would use in pricing the asset or liability
based on the best available information. The carrying amounts reported in the balance sheet for cash, accounts
receivable, receivables from supplier chain financing, bank acceptance notes receivable, prepayments and advances to suppliers, loans
to third parties, accounts payable, bank acceptance notes payable, advances from customers, payables to supply chain financing, taxes
payable, due to related party and accrued expenses and other current liabilities, approximate their fair value based on the short-term
maturity of these instruments. The Group believes that the carrying amount of the short-term loans approximate fair value based on the
terms of the borrowings and current market rates as the rates of the borrowings are reflective of the current market rate. Transfers into or out of the fair value hierarchy
classifications are made if the significant inputs used in the financial models measuring the fair value of the assets and liabilities
became unobservable or observable in the current marketplace. These transfers are considered to be effective as of the beginning of the
period in which they occur. The Group did not transfer any assets or liabilities in or out of Level 2 and Level 3 during the years ended
December 31, 2021 and 2020. Fair value measurements on a recurring basis As of December 31, 2021, the financial instruments measured at fair
value on a recurring basis are as follows:
Fair value Fair value measurement at reporting date
Description 2021 (Level 1) (Level 2) (Level 3)
Short-term investments:
Wealth management products and structure deposits $ 40,666,617 $ - $ 40,666,617 - As of December 31, 2020, the financial instruments measured at fair
value on a recurring basis are as follows:
Fair value Fair value measurement at reporting date
Description 2020 (Level 1) (Level 2) (Level 3)
Short-term investments:
Wealth management products $ 4,680,843 $ - $ 4,680,843 $ - |
| Accounts receivable | Accounts receivable Accounts receivable is stated at the historical
carrying amount net of an allowance for uncollectible accounts. An allowance for uncollectable accounts is established based on management’s
assessment of the recoverability of accounts and other receivables. Judgment is required in assessing the realizability of these receivables,
including the current credit worthiness of each customer and the related aging analysis. An allowance is provided for accounts when management
has determined that the likelihood of collection is doubtful. The Group writes off accounts and contract receivables against the allowance
when a balance is determined to be uncollectible. |
| Inventories | Inventories Inventories are stated at the lower of cost and
net realizable value. Cost of inventories is determined using the weighted average cost method. Adjustments to reduce the cost of inventories
to its net realizable value for slow-moving merchandise and damaged goods are recorded in cost of goods sold. The Group considers factors
such as historical and forecasted consumer demand when estimating the net realizable value. The Group takes ownership and risks of the
products purchased. |
| Investment in limited partnership and other investments | Investment in limited partnership and other
investments The Group’s has an investment in a limited
partnership that invests in debt securities, which has a stated maturity within five years and pays a prospective fixed rate of return.
The Group classifies the investment in this limited partnership as held-to-maturity because it has both the positive intent and ability
to hold it until maturity. This investment is recorded at amortized cost and is classified as long-term based on its contractual maturity. Investments are reclassified as short-term when their contractual maturity
date is less than one year. Investments that are bought and held principally for the purpose of selling them in the near term are classified
as trading securities and are reported at fair value with changes in fair value recognized in earnings. Investments that do not meet the
criteria of held-to-maturity or trading securities are classified as available-for-sale, and are reported at fair value with changes in
fair value reported in other comprehensive income. |
| Stock-based compensation | Stock-based compensation The Company recognizes share-based compensation
based on the fair value of equity awards on the date of the grant, with compensation expense recognized using a straight-line vesting
method over the requisite service periods of the awards, which is generally the vesting period. The expected life assumption is primarily
based on historical exercise patterns and employee post-vesting termination rates. The risk-free interest rate for the expected term of
an option is based on the U.S. Treasury yield curve in effect at the time of grant. The expected dividend yield is based on the Company’s
current and expected dividend policy. |
| Long term investments | Long term investments FASB ASU 2016-01 (“ASU 2016-01”),
Recognition and Measurement of Financial Assets and Financial Liabilities amends certain aspects of recognition, measurement, presentation,
and disclosure of financial instruments. The main provisions require equity investments (except those accounted for under the equity method
of accounting or those that result in consolidation of the investee) to be measured at fair value through earnings unless they qualify
for a measurement alternative. Equity investments without readily determinable fair values The Group elected to record equity investments without readily determinable fair values and not accounted for under the equity method
at cost, less impairment, adjusted for subsequent observable price changes on a nonrecurring basis, and report changes in the carrying
value of the equity investment in current earnings. Changes in the carrying value of the equity investments are required to be made whenever
there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. Reasonable efforts
are be made to identify price changes that are known or that can reasonably be known. Equity investments with readily determinable fair values Equity investments with readily determinable fair
values are measured and recorded at fair value using the market approach based on the quoted prices in active markets at the reporting
date. Equity investments accounted for using the equity method The Group accounts for its equity investments
over which it has significant influence (usually 20% to 49.9%) but does not own a majority equity interest or otherwise control, using
the equity method. The Group adjusts the carrying amount of the investment and recognizes investment income or loss for its share of the
earnings or loss of the investee after the date of investment. The Group assesses its equity investment for other-than-temporary impairment
by considering factors including, but not limited to, current economic and market conditions, operating performance of the entity, including
current earnings trends and undiscounted cash flows, and other entity-specific information. The fair value determination, particularly
for investments in a privately held entity, requires judgment to determine appropriate estimates and assumptions. Changes in these estimates
and assumptions could affect the calculation of the fair value of the investment and determination of whether any identified impairment
is other-than-temporary. The
investment held by the Group as of December 31, 2021 and 2020 represented the Group’s 23.08% equity interest in Wenzhou Jinda Holding
Co., Ltd (“Jinda”). The Group considers it has significant influence over Jinda due to the level of ownership and its participation
in their significant business operating and strategic decisions. Accordingly, the Group accounts for the investment using the equity method.
For the years ended December 31, 2021, 2020 and 2019, the Group did not receive any dividends from this investment. For the years ended
December 31, 2021, 2020 and 2019, the Group recognized its share of loss in Jinda of $41,379, $46,659, and nil |
| Property and equipment, net | Property and equipment, net Property and equipment are recorded at cost. Depreciation and amortization
is provided in amounts sufficient to recognize the cost of the related assets over their useful lives using the straight-line method,
as follows:
Useful life
Transportation equipment 4 years
Office equipment 3 - 5 years
Electronic equipment 3 - 5 years
Leasehold improvements Shorter of remaining lease term or life of assets The Group charges maintenance, repairs and minor renewals directly
to expense as incurred; major additions and betterments are capitalized. |
| Intangible assets, net | Intangible assets, net Intangible assets acquired are recorded at cost less accumulated amortization.
Amortization is provided in amounts sufficient to recognize the cost of the related assets over their useful lives using the straight-line
method, as follows:
Useful life
Software 3-5 years
Trademarks 3-5 years
Technology 5-10 years The estimated useful lives of amortizable intangible assets are reassessed
if circumstances occur that indicate the original estimated useful lives have changed. |
| Impairment of long-lived assets | Impairment of long-lived assets Long-lived assets are evaluated for impairment whenever events or changes
in circumstances (such as significant adverse changes to market conditions that will impact the future use of the assets) indicate that
the carrying amount may not be fully recoverable or that the remaining useful life is shorter than the Group had originally estimated.
When these events occur, the Group evaluates the impairment by comparing the carrying value of the assets to an estimate of future undiscounted
cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted
cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying
value of the assets over the fair value of the assets. No impairment charge was recognized for the years ended December 31, 2021, 2020
and 2019. |
| Goodwill | Goodwill Goodwill represents the excess of the consideration
over the fair value of the identifiable assets and liabilities acquired at the date of acquisition. In January 2017, the FASB issued
ASU 2017-04, “Intangibles—Goodwill and Other (Topic 350), simplifying the test for goodwill impairment”. The guidance
removes Step 2 of the goodwill impairment test, which required a hypothetical purchase price allocation. Goodwill impairment will now
be the amount by which a reporting unit’s carrying value exceeds its fair value. The ASU is applicable for the annual or any interim
goodwill impairment tests beginning after December 15, 2019. The adoption of this standard did not have a material impact on the
Group’s consolidated financial statements. The Group tests goodwill at least annually for impairment at the reporting unit level.
A reporting unit is the operating segment, or one level below that operating segment (the component level) if discrete financial information
is prepared and regularly reviewed by management. However, components are aggregated as a single reporting unit if they have similar economic
characteristics. The Group recognizes an impairment charge if the carrying amount of a reporting unit exceeds its fair value and the carrying
amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill. When a portion of a reporting unit is disposed,
goodwill is allocated to the gain or loss on disposition based on the relative fair values of the business or businesses disposed and
the portion of the reporting unit that will be retained. For the years ended December 31, 2021, 2020 and 2019, the Group did not recognize
any goodwill impairment charges. |
| Leases | Leases The Group adopted FASB ASU No. 2016-02, Leases
(Topic 842) (“ASU 2016-02”) on January 1, 2019 by using the modified retrospective method and did not restate the prior periods.
The Group has elected the package of practical expedients, which allows the Group not to reassess (1) whether any expired or existing
contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption
date and (3) initial direct costs for any expired or existing leases as of the adoption date. The Group also elected the practical expedient
not to separate lease and non-lease components of contracts, Lastly, the Group elected the short-term lease exemption for all contracts
with lease terms of 12 months or less. The Group determines if an arrangement is a lease or contains a lease
at lease inception. For operating leases, the Group recognizes a “right of use” asset (“ROU”) and a lease liability
based on the present value of the lease payments over the lease term on the consolidated balance sheets at commencement date. For finance
leases, assets are included in property and equipment on the consolidated balance sheets. As most of the Group’s leases do not provide
an implicit rate, the Group estimates its incremental borrowing rate based on the information available at the commencement date in determining
the present value of lease payments. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized
loan basis with similar terms and payments, and in the economic environment where the leased asset is located. The Group’s leases
often include options to extend and lease terms include such extended terms when the Group is reasonably certain to exercise those options.
Lease terms also include periods covered by options to terminate the leases when the Group is reasonably certain not to exercise those
options. Lease expense is recorded on a straight-line basis over the lease term. The Group recognized ROU assets and total lease liabilities (including
current and non-current) for operating leases as of January 1, 2019 upon adoption. |
| Research and development expenses | Research and development expenses Research and development expenses mainly consist
of salary and welfare benefits and bandwidth costs incurred for the development and enhancement to the Group’s websites and platform
applications. Research and development expenditures are expensed as incurred. Research and development expense were $1,599,728, $817,770,
and $155,216 for the years ended December 31, 2021, 2020 and 2019, respectively. |
| Income taxes | Income taxes The Group’s subsidiaries in China are subject
to the income tax laws of the PRC and Hong Kong. No taxable income was generated outside the PRC and Hong Kong for the years ended December
31, 2021, 2020 and 2019. The Group accounts for income tax under FASB ASC Section 740 which utilizes the asset and liability method, which
requires recognition of deferred tax assets and liabilities for the expected future tax consequences of the differences between financial
statement carrying amounts of assets and liabilities versus the tax basis of assets and liabilities. Deferred tax assets are also provided
for carryforward losses which can be used to offset future taxable income. Deferred income taxes will be recognized if significant temporary
differences between tax and financial statements occur. A valuation allowance is established against net deferred tax assets when it is
more likely than not that some portion or all of the net deferred tax asset will not be realized. The Group provided a valuation allowance
of $624,905 and $368,165 on the net deferred tax assets as of December 31, 2021 and 2020, respectively. The Group continually evaluates expiring statutes
of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. An uncertain tax position is recognized
as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax
examination being presumed to occur. The amount recognized is the largest amount of tax benefit that has a greater than 50% likelihood
of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded.
Penalties and interest related to underpayment of income taxes for uncertain tax positions are classified as income tax expense in the
period incurred. No penalties or interest relating to uncertain tax positions has been incurred during the years ended December 31, 2021,
2020 and 2019. As of December 31, 2021, the tax years ended December 31, 2019 through December 31, 2021 for the Group’s PRC subsidiaries
remain open for statutory examination by PRC tax authorities. Under the Provisional Regulations of the PRC Concerning
Income Tax on Enterprises promulgated by the PRC, income tax is payable by enterprises at a rate of 25% of their taxable income determined
under PRC accounting rules. The Group believes that it has provided the best estimates of its accrued tax liabilities because those accruals
are based on the prevailing tax rates stipulated under the laws. |
| Value added tax (“VAT”) | Value added tax (“VAT”) Revenue represents the invoiced value of goods and services, net of
VAT. VAT is based on the gross sales price and VAT rates range from 6% to 13%, depending on the type of goods or service provided. Entities
that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. The net
VAT balance between input VAT and output VAT is recorded in taxes payable. All of the VAT returns filed by the Group’s subsidiaries
in China, have been and remain subject to examination by the tax authorities for five years from the date of filing. |
| Foreign currency translation | Foreign currency translation Since the Group operates primarily in the PRC,
The Group’s functional currency is the Chinese Yuan (“RMB”). The Group’s financial statements have been translated
into the reporting currency of the United States Dollar. Assets and liabilities of The Group are translated at the exchange rate at each
reporting period end date. Equity is translated at the historical exchange rate when the transaction occurred. Income and expense accounts
are translated at the average rate of exchange during the reporting period. The resulting translation adjustments are reported under other
comprehensive income (loss). Gains and losses resulting from the translation of foreign currency transactions and balances are reflected
in the results of operations. The RMB is not freely convertible into foreign
currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB
amounts could have been, or could be, converted into USDs at the rates used in translation. The following table outlines the currency
exchange rates that were used in creating the consolidated financial statements in this report:
December 31, December 31, December 31,
Balance sheet items, except for equity accounts US$1=RMB 6.3726 US$1=RMB 6.5250 US$1=RMB 6.9618
Items in the statements of income and cash flows US$1=RMB 6.4508 US$1=RMB 6.9042 US$1=RMB 6.9081
Balance sheet items, except for equity accounts US$1=HKD 7.7996 US$1=HKD 7.7534 US$1=HKD 7.7894
Items in the statements of income and cash flows US$1=HKD 7.7727 US$1=HKD 7.7559 US$1=HKD 7.8351 |
| Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) consists of two components, net income
(loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under
U.S. GAAP are recorded as an element of shareholders’ equity but are excluded from net income (loss). Other comprehensive income
(loss) consists of foreign currency translation adjustments resulting from the Group not using the U.S. dollar as its functional currencies. |
| Credit risk and concentrations | Credit risk and concentrations Financial instruments that potentially subject
the Group to significant concentrations of credit risk consist primarily of cash and accounts receivable. As of December 31, 2021, and
2020, $91,627,041 and $22,198,257 of the Group’s cash and cash equivalents and restricted cash from continuing operations was on
deposit at financial institutions in the PRC and Hong Kong, which the management believes are of high credit quality. On May 1, 2015,
China’s new Deposit Insurance Regulation came into effect, pursuant to which banking financial institutions, such as commercial
banks, established in China are required to purchase deposit insurance for deposits in RMB and in foreign currency placed with them for
up RMB 500,000 (USD $72,000). Such Deposit Insurance Regulations would not be effective in providing complete protection for the Group’s
accounts, as its aggregate deposits are much higher than the coverage limit. However, the Group believes that the risk of failure of any
of these Chinese banks is remote. Bank failure is uncommon in China and the Group believes that those Chinese banks that hold the Group’s
cash and cash equivalents, restricted cash and short-term investments are financially sound based on public available information. In
Hong Kong, the DPS is established under the Deposit Protection Scheme Ordinance (DPS Ordinance). In case a member bank of DPS (a Scheme
member) fails, the DPS will pay compensation up to a maximum of HK$500,000 (approximately US$64,000) to each depositor of the failed Scheme
member. Balances in excess of the insured amount as of December 31, 2021 was approximately $89,804,000. Accounts receivable is typically unsecured and
derived from revenue earned from customers, and is thereby exposed to credit risk. The risk is mitigated by the Group’s assessment
of its customers’ creditworthiness and its ongoing monitoring of outstanding balances. |
| Earnings (loss) per share | Earnings (loss) per share The Group computes earnings (loss) per share (“EPS”)
in accordance with FASB ASC 260, “Earnings per Share” (“ASC 260”). Basic EPS is measured as net income (loss)
divided by the weighted average common shares outstanding (including pre-funded warrants) for the period. Diluted EPS is similar to basic
EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants)
as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have
an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted
EPS. For the years ended December 31, 2021, 2020, and 2019, no dilutive outstanding instruments were included in the computation of diluted
EPS. |
| Recent accounting pronouncements | Recent accounting pronouncements The Group considers the applicability and impact
of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. In December 2019, the FASB issued ASU 2019-12,
Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This guidance removes certain exceptions to the general principles
in Topic 740 and enhances and simplifies various aspects of the income tax accounting guidance, including requirements such as tax basis
step-up in goodwill obtained in a transaction that is not a business combination, ownership changes in investments, and interim-period
accounting for enacted changes in tax laws. This standard is effective for the Group for the annual reporting periods beginning January
1, 2022 and interim periods beginning January 1, 2023. Early adoption is permitted. The Group does not expect any material impact on the
Group’s consolidated financial statements. In January 2020, the FASB issued ASU 2020-01,
Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic
815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. This guidance addresses accounting for the transition
into and out of the equity method and provides clarification of the interaction of rules for equity securities, the equity method of accounting,
and forward contracts and purchase options on certain types of securities. This standard is effective for the Group beginning January
1, 2022 including interim periods within the fiscal year. Early adoption is permitted. The Group does not expect any material impact on
the Group’s consolidated financial statements. Except for the above-mentioned pronouncements,
there are no other recently issued accounting standards that should have a material impact on the Group’s consolidated financial
position, statements of operations and cash flows. |
