| Equity | Note 16 – Equity Statutory Reserves and Restricted Net Assets In accordance with the PRC Regulations on Enterprises
with Foreign Investment, an enterprise established in the PRC with foreign investment is required to make appropriations to certain statutory
reserves, namely a general reserve fund, an enterprise expansion fund, a staff welfare fund and a bonus fund, all of which are appropriated
from net profit as reported in its PRC statutory accounts. A foreign invested enterprise is required to allocate at least 10% of
its annual after-tax profits to a general reserve fund until such fund has reached 50% of its respective registered capital. Appropriations
to the enterprise expansion fund and staff welfare and bonus funds are at the discretion of the board of directors for the foreign invested
enterprises. For other subsidiaries incorporated in the PRC, the general reserve fund was appropriated based on 10% of net profits
as reported in each subsidiary’s PRC statutory accounts. General reserve and statutory surplus funds are restricted to set-off
against losses, expansion of production and operation and increasing registered capital of the respective company. Staff welfare and
bonus fund and statutory public welfare funds are restricted to capital expenditures for the collective welfare of employees. The reserves
are not allowed to be transferred to the Company in terms of cash dividends, loans or advances, nor are they allowed for distribution
except under liquidation. As of June 30, 2024 and December 31, 2023, there are no balance of the PRC statutory reserve funds. In addition, under PRC laws and regulations,
the Company’s PRC subsidiaries are restricted in their ability to transfer their net assets to the Company in the form of dividend
payments, loans or advances. Amounts of net assets restricted include paid up capital and statutory reserve funds of the Company’s
PRC totaling $363,449 and $1,083,267 as of June 30, 2024 and December 31, 2023, respectively. Furthermore, cash transfers from the Company’s
PRC subsidiaries to the Company’s subsidiaries outside of the PRC are subject to the PRC government control of currency conversion.
Shortages in the availability of foreign currency may restrict the ability of the Company’s PRC subsidiaries to remit sufficient
foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligations. Common Stock On May 1, 2023, the Company entered into a placement
agency agreement (the “May 2023 Placement Agency Agreement”), with Univest Securities, LLC (the “Placement Agent”
or “Univest”), pursuant to which, the Placement Agent agrees to use its reasonable best efforts to sell the Company’s
common stock in a registered direct offering (the “May 2023 RD Offering”), and a concurrent private placement (the “May
2023 PIPE Offering”, together with the RD Offering, collectively the “May 2023 Offering”). The Placement Agent has
no obligation to buy any of the securities from the Company or to arrange for the purchase or sale of any specific number or dollar amount
of securities. On May 4, 2023, the Company sold an aggregate
of 310,168 shares of common stock of the Company, par value $0.0001 per share, and pre-funded warrants to purchase up
to an aggregate of 844,351 shares of common stock are sold to certain purchasers (the “May 2023 Offering Purchasers”),
pursuant to a securities purchase agreement, dated May 1, 2023, as amended on May 16, 2023 (the “May 2023 Securities Purchase Agreement”).
The purchase price of each share of common stock is $8.35. The purchase price of each pre-funded warrant is $8.349, which equals the
price per share of common stock being sold to the public in this offering, minus $0.001. The pre-funded warrants to purchase up to an
aggregate of 844,351 shares of common stock were exercised in full in May 2023. In connection with the May 2023 Offering, the
Company paid Univest a total cash fee equal to 7.0% of the aggregate gross proceeds received in the offering. The net proceeds from
the May 2023 Offering, after deducting Placement Agent discounts and commissions and estimated offering expenses payable by the Company,
are approximately $8.5 million (assuming the warrants are not exercised). The Company used the net proceeds from the Offering
for working capital and general corporate purposes. On June 22, 2023, the Company entered into a
software purchase agreement with Northeast Management LLC, a seller unaffiliated with the Company. Pursuant to the agreement, the Company
agreed to purchase, and the seller agreed to sell all of seller’s right, title, and interest in and to the certain software. The
purchase price of the software shall be $750,000, payable in the form of issuance of 187,500 shares of common stock of the
Company, valued at $4.00 per share. The Company plans to use the software to develop video games. On June 26, 2023, the Company
issued the shares to the seller’s designees and the transaction was completed. On November 1, 2023, the Company entered into
a placement agency agreement (the “November 2023 Placement Agency Agreement”), with Univest, pursuant to which, Univest agrees
to use its reasonable best efforts to sell the Company’s common stock in a registered direct offering and a concurrent private
placement (the “November 2023 Offering”). Univest has no obligation to buy any of the securities from the Company or to arrange
for the purchase or sale of any specific number or dollar amount of securities. Pursuant to the November 2023 Offering, (i)
an aggregate of 1,436,253 shares of common stock of the Company, par value $0.0001 per share, (ii) pre-funded warrants
to purchase up to an aggregate of 1,876,103 shares of common stock (the “November 2023 Pre-Funded Warrants”, and
the common stock underlying such warrants, the “November 2023 Pre-Funded Warrant Shares”), and (iii) registered warrants
to purchase up to an aggregate of 3,312,356 shares of common stock (the “November 2023 Registered Warrants”, and
the common stock underlying such warrants, the “November 2023 Registered Warrant Shares”) are sold to certain purchasers
(the “November 2023 Offering Purchasers”), pursuant to a securities purchase agreement, dated October (the “October
2023 Securities Purchase Agreement”). The purchase price of each common stock is $3.019. The purchase price of each November
2023 Pre-funded Warrant is $3.018, which equals the price per common stock being sold in the November 2023 Offering, minus $0.001. The
November 2023 Pre-funded Warrants will be exercisable immediately after issuance and will expire five (5) years from the date of issuance.
The November 2023 Registered Warrants will be exercisable immediately and will expire five (5) years from the date of issuance. The total proceeds from the November 2023 Offering
was approximately $10.0 million. Offering costs of approximately $1.0 million, consisting of approximately $0.7 million
underwriting commissions and $0.3 million other professional fees, were charged into additional paid-in capital. The Company intends
to use the net proceeds from the Offering for working capital and general corporate purposes. In November and December 2023, holders of 963,600 of
the November 2023 Pre-Funded Warrants exercised their option to purchase 963,600 shares of the Company’s common stock.
On February 15, 2024, March 19, 2024 and March 21, 2024, holders of 567,691 of the November 2023 Pre-Funded Warrants exercised
their option to purchase 567,691 shares of the Company’s common stock, leaving 344,812 of November 2023 Pre-Funded
Warrants are still outstanding as of June 30, 2024. On March 26, 2024, holders of 865,376 November 2023 Registered Warrants
exercised their options to purchase 709,877 shares of the Company’s common stock, leaving 2,446,980 shares of November
2023 Registered Warrants are still outstanding as of June 30, 2024. On January 11, 2024, the Company issued the 400,000 shares
of its common stock to Beijing Hehe for exchange of 13.3333% of the total equity interest of SH Xianzhui (as described in Note 1). In March 2024, the Company entered into a placement
agency agreement (the “March 2024 Placement Agency Agreement”), with Univest, pursuant to which, Univest agrees to use its
reasonable best efforts to sell the Company’s common stock in a registered direct offering and a concurrent private placement (the
“March 2024 Offering”). Univest has no obligation to buy any of the securities from the Company or to arrange for the purchase
or sale of any specific number or dollar amount of securities. Pursuant to the March 2024 Offering, an aggregate
of 810,277 shares of common stock of the Company, par value $0.0001 per share, were sold to certain purchasers (the “March
2024 Offering Purchasers”), pursuant to a securities purchase agreement, dated March 22, 2024 (the “March 2024 Securities
Purchase Agreement”) at a price of $1.144 per common stock, for aggregated proceeds of approximately $0.9 million. The
Company paid Univest a cash fee equal to 4.0% of the aggregate gross proceeds raised in the March 2024 Offering. The Company also
issued warrants to Univest to purchase up to 40,514 shares of common stock of the Company at an exercise price of $1.373 per
share, (the “March 2024 Placement Agent Warrants”). The March 2024 Placement Agent Warrants and the common stock underlying
the March 2024 Placement Agent Warrants were not registered under the Securities Act, pursuant to the registration statement of March
2024 Offering. The March 2024 Placement Agent Warrants were issued pursuant to an exemption from the registration requirements of the
Securities Act provided in Section 4(a)(2) of the Securities Act and/or Regulation D promulgated thereunder. The May 2023 Offering, the November 2023 Offering
and the March 2024 Offering were being made pursuant to a shelf registration statement (No. 333-254366) on Form S-3, which was declared
effective by the U.S. Securities and Exchange Commission (the “SEC”) on March 26, 2021, and related prospectus supplement. On May 31, 2024, the Company entered into a software
purchase agreement with Shanxi Gangdong Cultural Media Co., Ltd., a seller unaffiliated with the Company (the “Seller”).
Pursuant to the agreement, the Company agreed to purchase and the Seller agreed to sell all of Seller’s right, title, and interest
in and to the certain software. The purchase price of the software shall be $1,248,000, payable in the form of issuance of 1,560,000
shares of common stock of the Company, valued at $0.80 per share. The Company plans to use the software to develop its AI business. On
June 4, 2024, the Company issued 1,560,000 shares of common stock of the Company to the Seller’s designees and the transaction
was completed. As of June 30, 2024 and December 31, 2023, the
total outstanding shares of the Company’s common stock were 9,501,261 and 5,453,416, respectively. Warrants and Options On July 29, 2015, the Company sold 10,000,000 units
at a purchase price of $5.00 per unit (“Public Units”) in its initial public offering (the “IPO”). Each
Public Unit consists of one share of the Company’s common stock, $0.0001 par value, and one warrant (the
“Public Warrants”). Each Public Warrants entitled the holder to purchase one-half of one share of common stock at an exercise
price of $2.88 per half share ($5.75 per whole share). Warrants may be exercised only for a whole number of shares of common
stock. No fractional shares will be issued upon exercise of the warrants. The Public Warrants became exercisable on 30 days
after the consummation of its initial Business Combination with China Sunlong on February 6, 2018. The Public Warrants expired on February
5, 2023. The sponsor of the Company purchased, simultaneously
with the closing of the IPO on July 29, 2015, 500,000 units (“Private Units”) at $5.00 per unit in a private
placement for an aggregate price of $2,500,000. Each Private Unit consists of one share of the Company’s common stock,
$0.0001 par value, and one warrant (the “Private Warrants”). Each Private Unit purchased is substantially
identical to the units sold in the IPO. Therefore, the 500,000 Private Warrants included in the Private Units became exercisable
on February 6, 2018 and expired on February 5, 2023. The Company sold to the underwriter (and/or its
designees), for $100, as additional compensation, an option (“the Option”) to purchase up to a total of 800,000 units exercisable
at $5.00 per unit (or an aggregate exercise price of $4,000,000) upon the closing of the IPO. The Option became exercisable until closing
the initial Business Combination on February 6, 2018 and expired on February 5, 2023. After the 1-for-30 reverse stock split effective
on November 9, 2022, all options, warrants and other convertible securities of the Company outstanding immediately prior to the reverse
stock split were adjusted by dividing the number of shares of common stock into which the options, warrants and other convertible securities
are exercisable or convertible by thirty (30) and multiplying the exercise or conversion price thereof by thirty (30), all in accordance
with the terms of the plans, agreements or arrangements governing such options, warrants and other convertible securities and subject
to rounding to the nearest whole share. On February 18, 2021, the Company entered into
a securities purchase agreement (the “February 2021 Securities Purchase Agreement”) with certain purchasers, pursuant to
which, on February 22, 2021, the Company sold (i) 138,889 shares of common stock, (ii) registered warrants (the “February
2021 Registered Warrants”) to purchase an aggregate of up to 54,646 shares of common stock and (iii) unregistered warrants
(the “February 2021 Unregistered Warrants”) to purchase up to 84,244 shares (the “Warrant Shares”)
of common stock in a registered direct offering (the “February 2021 Registered Direct Offering”) and a concurrent private
placement (the “February 2021 Private Placement,” and together with the February 2021 Registered Direct Offering, the “February
2021 Offering”). The terms of the February 2021 Offering were previously reported in a Form 8-K filed with the SEC on February
18, 2021 and the closing of the Offering was reported in a Form 8-K filed with the Commission on February 22, 2021. The February 2021 Registered Warrants have a
term of five years and are exercisable immediately at an exercise price of $201.60 per share, subject to adjustments thereunder,
including a reduction in the exercise price, in the event of a subsequent offering at a price less than the then current exercise price,
to the same price as the price in such offering (a “Price Protection Adjustment”). The February 2021 Unregistered Warrants have
a term of five and one-half years and are first exercisable on the date that is the earlier of (i) six months after the date of issuance
or (ii) the date on which the Company obtains stockholder approval approving the sale of the securities sold under the February 2021
Securities Purchase Agreement, to purchase an aggregate of up to 84,244 shares of common stock. The February 2021 Unregistered
Warrants have an exercise price of $201.60 per share, subject to adjustments thereunder, including (x) a Price Protection Adjustment
and (y) in the event the exercise price is more than $183.00, a reduction of the exercise price to $183.00, upon obtaining such stockholder
approval. The Company paid the Placement Agent a cash fee
of $2,310,000, including $2,000,000 in commission which was equal to eight percent (8.0%) of the aggregate gross proceeds raised
in February 2021 Offering, $250,000 in non-accountable expense which was equal to one percent (1%) of the aggregate gross proceeds
raised in the February 2021 Offering, and $60,000 in accountable expenses. Additionally, the Company issued to the Placement Agent
warrants to purchase up to 6,945 shares of common stock (the “February 2021 Placement Agent Warrants”), with a
term of five years first exercisable six months after the date of issuance and at an exercise price of $180.00 per share. Pursuant to the February 2021 Securities Purchase
Agreement, the Company is required to hold a meeting of our shareholders not later than April 29, 2021 to seek such approval as may be
required from our shareholders (the “Stockholder Approval”), in accordance with applicable law, the applicable rules and
regulations of the Nasdaq Stock Market, our certificate of incorporation and bylaws and the Nevada Revised Statutes with respect to the
issuance of the securities in the Offering, including the Warrants sold in the Private Placement, so that the issuance by us of shares
of common stock in excess of the 231,802 shares (19.99% of the shares of common stock outstanding as of February 17, 2021,
the date prior to entering into the February 2021 Securities Purchase Agreement) in the aggregate (the “Issuable Maximum”),
will be in compliance with Nasdaq Listing Rules 5635(a) and 5635(d) as described herein, and investors in the Offering will be able to
exercise the Warrants prior to six months after the closing of the Offering. On April 29, 2021, the Company held a special
meeting of shareholders and approved the issuance of shares of common stock in excess of the 231,802 shares. The exercise price
of the Unregistered Warrants was reduced to $183.00. On May 1, 2023, pursuant to the May 2023 Placement
Agency Agreement as described above, Pre-Funded warrants to purchase up to an aggregate of 844,351 shares of common stock are
sold to May 2023 Offering Purchasers. The purchase price of each Pre-funded Warrant is $8.349. In connection with the Pre-Funded Warrant
Shares, “Pre-funded” refers to the fact that the purchase price of the warrants in the offering includes almost the entire
exercise price that will be paid under the Pre-funded Warrants, except for a nominal remaining exercise price of $0.001. The purpose
of the Pre-funded Warrants is to enable Purchasers that may have restrictions on their ability to beneficially own more than 4.99%
(or, upon election of the holder, 9.99%) of the Company’s outstanding common stock following the consummation of the offering
the opportunity to make an investment in the Company without triggering their ownership restrictions, by receiving Pre-funded Warrants
in lieu of the Company’s common stock which would result in such ownership of more than 4.99% (or 9.99%), and receive
the ability to exercise their option to purchase the shares underlying the Pre-funded Warrants at such nominal price at a later date.
In the RD Offering, each Pre-funded Warrant is exercisable for one share of our common stock, with an exercise price equal to $0.001 per
share, at any time that the Pre-funded Warrant is outstanding. The Pre-funded Warrants will be exercisable immediately after issuance
and will expire five (5) years from the date of issuance. The holder of a Pre-funded Warrant will not be deemed a holder of our underlying
common stock until the Pre-funded Warrant is exercised. In connection with the May 2023 Offering, unregistered
warrants to purchase up to 1,154,519 shares of common stock (the “May 2023 Unregistered Warrants”) are also sold
to the May 2023 Offering Purchasers. The May 2023 Unregistered Warrants are exercisable immediately after issuance and will expire five
(5) years from the date of issuance. The Exercise Price of the May 2023 Unregistered Warrants is $8.35 per share, subject to adjustment
as provided in the form of May 2023 Unregistered Warrants. In concurrent with the November 2023 Offering,
on November 1, 2023, the Company entered into certain warrant exchange agreements (the “Warrant Exchange Agreements” with
May 2023 Offering Purchasers. Pursuant to the Warrant Exchange Agreements, the holders of May 2023 Unregistered Warrants shall surrender
the May 2023 Unregistered Warrants, and the Company shall cancel the May 2023 Unregistered Warrants and shall issue to these holders
pre-funded warrants to purchase up to 577,260 shares of the Company’s Common Stock (the “Exchange Warrants”).
The Exchange Warrants were issued to holders on November 3, 2023 and the warrant exchange closed on the same day. As of June 30, 2024
and December 31, 2023, 577,260 of the Exchange Warrants are still outstanding. The Placement Agent of the May 2023 Offering
also received warrants to purchase up to 115,452 shares of common stock at an exercise price of $10.02 per share (the
“May 2023 Placement Agent Warrants”), which represents 120% of the May 2023 Offering price of each share of common stock.
The Placement Agent’s warrants will have substantially the same terms as the May 2023 Unregistered Warrants. In connection with the November 2023 Offering, 1,876,103 shares
of the November 2023 Pre-Funded Warrants and 3,312,356 shares of the November 2023 Registered Warrants were sold to November
2023 Offering Purchasers. Each November 2023 Pre-funded Warrant is exercisable for one share of the Company’s common stock, with
an exercise price equal to $0.001 per share, at any time that the November 2023 Pre-funded Warrant is outstanding. The November
2023 Pre-funded Warrants will be exercisable immediately after issuance and will expire five (5) years from the date of issuance. The
holder of a November 2023 Pre-funded Warrant will not be deemed a holder of the Company’s underlying common stock until the November
2023 Pre-funded Warrant is exercised. The November 2023 Registered Warrants will be exercisable immediately and will expire five (5)
years from the date of issuance. The exercise price of the November 2023 Registered Warrants is $3.019, subject to adjustment as provided
in the form of November 2023 Registered Warrants. As of June 30, 2024, 1,531,291 of the November 2023 Pre-Funded Warrants and
865,376 shares of November 2023 Registered Warrants were exercised, leaving 344,812 of November 2023 Pre-Funded Warrants and
2,446,980 shares of November 2023 Registered Warrants are still outstanding. The Placement Agent of the November 2023 Offering
also received warrants purchase up to 331,236 shares of common stock (equal to 5.0% of the aggregate number of common
stocks, and shares of common stock underlying the November 2023 Pre-Funded Warrants, and the number of shares of common stock underlying
the November 2023 Registered Warrants) at an exercise price of $3.623 per share (the “November 2023 Placement Agent Warrants”),
which represents 120% of November 2023 Offering price, for an aggregate purchase price of one hundred U.S. dollars (US$100),
which warrant shall be exercisable at any time during the period commencing six (6) months after commencement of sales in the November
2023 Offering through the fifth (5th) anniversary of issuance. The Placement Agent’s Warrants are not covered by the shelf registration
statement (No. 333-254366) on Form S-3, which was declared effective by the SEC on March 26, 2021, and related prospectus supplement. In connection with the March 2024 Offering, the
Company issued 40,514 shares of March 2024 Placement Agent Warrants to Univest, at an exercise price of $1.373 per share. The
March 2024 Placement Agent Warrants and the common stock underlying the March 2024 Placement Agent Warrants were not registered under
the Securities Act, pursuant to the registration statement of March 2024 Offering. The March 2024 Placement Agent Warrants were issued
pursuant to an exemption from the registration requirements of the Securities Act provided in Section 4(a)(2) of the Securities Act and/or
Regulation D promulgated thereunder. The summary of warrant activities for six months ended June 30, 2024
are as follows: Warrants Exercisable Into Number of Weighted Average Exercise Average Remaining Contractual Outstanding Shares Price Life December 31, 2023 9,623,806 5,394,642 $ 19.45 4.54 Granted 40,514 40,514 1.37 4.74 Exercised 1,433,067 1,433,067 0.0001 - June 30, 2024 (unaudited) 8,231,253 4,002,089 $ 23.11 3.98 The summary of warrant activities for six months ended June 30, 2023
are as follows: Warrants Exercisable Into Number of Weighted Average Exercise Average Remaining Contractual Outstanding Shares Price Life December 31, 2022 4,539,674 151,323 $ 172.5 0.36 Granted/Acquired 2,114,322 2,114,322 7.40 4.02 Expired 164,675 5,488 172.5 0.1 Exercised 844,351 844,351 0.001 - June 30, 2023 (unaudited) 5,644,970 1,415,806 $ 25.58 4.40 |
