Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information Line Items | |
Entity Registrant Name | Sentage Holdings Inc. |
Trading Symbol | SNTG |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Entity Central Index Key | 0001810467 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Dec. 31, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Entity Ex Transition Period | false |
ICFR Auditor Attestation Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-40580 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 501, Platinum Tower 233 Taicang Road |
Entity Address, Address Line Two | HuangPu |
Entity Address, City or Town | Shanghai City |
Entity Address, Postal Zip Code | 200001 |
Entity Address, Country | CN |
Contact Personnel Email Address | qllu@sentageholdings.com |
Title of 12(b) Security | Class A Ordinary shares, par value US$0.005 per share |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | U.S. GAAP |
Auditor Firm ID | 6907 |
Auditor Name | Enrome LLP |
Auditor Location | Singapore |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | 501, Platinum Tower 233 Taicang Road |
Entity Address, Address Line Two | HuangPu |
Entity Address, City or Town | Shanghai City |
Entity Address, Postal Zip Code | 200001 |
Entity Address, Country | CN |
Contact Personnel Name | Qiaoling Lu |
City Area Code | +86 |
Local Phone Number | 21 5386 0209 |
Contact Personnel Email Address | qllu@sentageholdings.com |
Class A Ordinary Shares | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 2,805,325 |
Class B Ordinary Shares | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | |
Current assets | |||
Cash and cash equivalents | $ 2,262,881 | $ 3,805,135 | |
Restricted cash | 26,127 | 23,089 | |
Loan receivable | 5,500,000 | ||
Accounts receivable, net | 284,628 | 433,510 | |
Prepaid expenses and other current assets | 9,118,909 | 4,579,646 | |
Total current assets | 11,692,545 | 14,341,380 | |
Non-current assets | |||
Right-of-use assets, net | 72,939 | 162,270 | |
Plant and equipment, net | 64,472 | 53,023 | |
Intangible assets, net | 66,859 | 89,475 | |
Long-term investments | 1,000,000 | ||
Deferred tax assets | 12,324 | 12,686 | |
Total non-current assets | 1,216,594 | 317,454 | |
Total assets | 12,909,139 | 14,658,834 | |
Current liabilities | |||
Accounts payable | 5,985 | 8,647 | |
Lease liabilities | 72,230 | 87,129 | |
Accrued expenses and other current liabilities | 256,795 | 309,001 | |
Total current liabilities | 335,010 | 404,777 | |
Non-current liabilities | |||
Lease liabilities | 74,384 | ||
Due to a related party, non-current | 344,235 | 4,709 | |
Total non-current liabilities | 344,235 | 79,093 | |
Total liabilities | 679,245 | 483,870 | |
Shareholders’ equity | |||
Additional paid in capital | 55,327,858 | 55,327,858 | |
Statutory reserves | 166,038 | 166,038 | |
Accumulated deficit | (43,363,848) | (41,460,571) | |
Accumulated other comprehensive income | 85,819 | 127,612 | |
Total shareholders’ equity | 12,229,894 | 14,174,964 | |
Total liabilities and shareholders’ equity | 12,909,139 | 14,658,834 | |
Class A Ordinary Shares | |||
Shareholders’ equity | |||
Ordinary shares | [1] | 14,027 | 14,027 |
Class B Ordinary Shares | |||
Shareholders’ equity | |||
Ordinary shares | [1] | ||
[1] Retrospectively restated for one-for-five reverse split with effective date of August 10, 2022. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 | |
Class A Ordinary Shares | |||
Ordinary shares, par value (in Dollars per share) | [1] | $ 0.005 | $ 0.005 |
Ordinary shares, shares authorized | [1] | 180,000,000 | 180,000,000 |
Ordinary shares, shares issued | [1] | 2,805,325 | 2,805,325 |
Ordinary shares, shares outstanding | [1] | 2,805,325 | 2,805,325 |
Class B Ordinary Shares | |||
Ordinary shares, par value (in Dollars per share) | [1] | $ 0.005 | $ 0.005 |
Ordinary shares, shares authorized | [1] | 20,000,000 | 20,000,000 |
Ordinary shares, shares issued | [1] | ||
Ordinary shares, shares outstanding | [1] | ||
[1] Retrospectively restated for one-for-five reverse split with effective date of August 10, 2022. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income and Other Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
OPERATING REVENUE | |||
Operating revenue | $ 146,554 | $ 161,372 | $ 2,262,449 |
COST OF REVENUE AND RELATED TAX | |||
Total cost of revenue and related tax | 12,597 | 17,833 | 34,556 |
GROSS PROFIT | 133,957 | 143,539 | 2,227,893 |
OPERATING EXPENSE | |||
Selling, general and administrative expenses | 1,897,512 | 2,714,546 | 3,006,859 |
Total operating expenses | 1,897,512 | 2,714,546 | 3,006,859 |
LOSS FROM OPERATIONS | (1,763,555) | (2,571,007) | (778,966) |
OTHER INCOME (EXPENSES) | (139,722) | 9,100 | (56,931) |
LOSS BEFORE INCOME TAX PROVISION | (1,903,277) | (2,561,907) | (835,897) |
INCOME TAX EXPENSE | 257,344 | ||
NET LOSS | (1,903,277) | (2,561,907) | (1,093,241) |
OTHER COMPREHENSIVE INCOME(LOSS) | |||
Foreign currency translation adjustment | (41,793) | (86,083) | 152,700 |
COMPREHENSIVE LOSS | $ (1,945,070) | $ (2,647,990) | $ (940,541) |
Loss per common share- basic (in Dollars per share) | $ (0.8) | $ (1.08) | $ (0.46) |
Weighted average shares- basic (in Shares) | 2,376,764 | 2,376,764 | 2,374,795 |
Consumer loan repayment and collection management service fees | |||
OPERATING REVENUE | |||
Operating revenue | $ 156,062 | ||
Loan recommendation service fees | |||
OPERATING REVENUE | |||
Operating revenue | 1,177,822 | ||
Prepaid payment network service fee | |||
OPERATING REVENUE | |||
Operating revenue | 146,554 | 161,372 | 928,565 |
Cost of revenue | |||
COST OF REVENUE AND RELATED TAX | |||
Total cost of revenue and related tax | 12,597 | 17,833 | 34,092 |
Business and sales related tax | |||
COST OF REVENUE AND RELATED TAX | |||
Total cost of revenue and related tax | $ 464 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income and Other Comprehensive Income (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Earnings(loss) per common share- diluted | $ (0.80) | $ (1.08) | $ (0.46) |
Weighted average shares- diluted | 2,376,764 | 2,376,764 | 2,374,795 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders’ Equity - USD ($) | Ordinary shares | Additional paid-in capital | Statutory Reserves | Accumulated deficit | Accumulated other comprehensive income(loss) | Total | |
Balances at Dec. 31, 2020 | $ 10,000 | $ 38,419,832 | $ (37,639,385) | $ 60,995 | $ 851,442 | ||
Balances (in Shares) at Dec. 31, 2020 | [1] | 2,000,000 | |||||
Net loss for the year | (1,093,241) | (1,093,241) | |||||
Addition of share capital | $ 4,000 | 16,908,053 | 16,912,053 | ||||
Addition of share capital (in Shares) | [1] | 800,000 | |||||
Statutory reserve | 166,038 | (166,038) | |||||
Foreign currency translation adjustment | 152,700 | 152,700 | |||||
Balances at Dec. 31, 2021 | $ 14,000 | 55,327,885 | 166,038 | (38,898,664) | 213,695 | 16,822,954 | |
Balances (in Shares) at Dec. 31, 2021 | [1] | 2,800,000 | |||||
Net loss for the year | (2,561,907) | (2,561,907) | |||||
Issuance of common stock for compensation | $ 27 | (27) | |||||
Issuance of common stock for compensation (in Shares) | [1] | 5,325 | |||||
Foreign currency translation adjustment | (86,083) | (86,083) | |||||
Balances at Dec. 31, 2022 | $ 14,027 | 55,327,858 | 166,038 | (41,460,571) | 127,612 | 14,174,964 | |
Balances (in Shares) at Dec. 31, 2022 | [1] | 2,805,325 | |||||
Net loss for the year | (1,903,277) | (1,903,277) | |||||
Foreign currency translation adjustment | (41,793) | (41,793) | |||||
Balances at Dec. 31, 2023 | $ 14,027 | $ 55,327,858 | $ 166,038 | $ (43,363,848) | $ 85,819 | $ 12,229,894 | |
Balances (in Shares) at Dec. 31, 2023 | [1] | 2,805,325 | |||||
[1] Retrospectively restated for one-for-five reverse split with effective date of August 10, 2022 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Net loss | $ (1,903,277) | $ (2,561,907) | $ (1,093,241) |
Adjustments to reconcile net income to cash and restricted cash provided by (used in) operating activities: | |||
Depreciation and amortization | 105,642 | 57,428 | 62,971 |
Deferred income tax expense | 74,243 | ||
Impairment loss recognised in respect of receivables | 134,808 | 4,548 | 54,896 |
Accounts receivable | 14,074 | (34,350) | 763,240 |
Prepaid expenses and other current assets | (39,263) | (4,064,584) | (132,021) |
Interest accrued for lease liabilities | 5,508 | 1,342 | |
Contract liabilities | (154,106) | ||
Payment of lease liabilities | (89,568) | (16,851) | |
Accrued expenses and other current liabilities | (54,868) | (65,086) | 41,354 |
Net cash used in operating activities | (1,826,944) | (6,679,460) | (382,664) |
Cash flows from investing activities | |||
Acquisition of plant and equipment | (23,433) | (19,977) | |
Acquisition of Intangible assets | (34,346) | ||
Investment in loans receivable | (5,500,000) | ||
Net cash used in investing activities | (23,433) | (34,346) | (5,519,977) |
Cash flows from financing activities | |||
Deferred initial public offering costs | 765,885 | ||
Proceeds from IPO | 16,912,053 | ||
Proceeds from (Repayment to) related party loans | 339,526 | (156,311) | (1,276,641) |
Net cash provided by (used in) financing activities | 339,526 | (156,311) | 16,401,297 |
Reconciliation of cash and restricted cash, beginning of year | |||
Cash | 3,805,135 | 10,753,118 | 117,434 |
Restricted cash | 23,089 | 30,269 | 22,948 |
Cash and restricted cash, beginning of year | 3,828,224 | 10,783,387 | 140,382 |
Reconciliation of cash and restricted cash, end of year | |||
Cash | 2,262,881 | 3,805,135 | 10,753,118 |
Restricted cash | 26,127 | 23,089 | 30,269 |
Cash and restricted cash, end of year | 2,289,008 | 3,828,224 | 10,783,387 |
Effect of exchange rate changes on cash and restricted cash | (28,365) | (85,046) | 144,349 |
Net increase (decrease) in cash and restricted cash | (1,539,216) | (6,955,163) | 10,643,005 |
Cash and restricted cash, beginning of year | 3,828,224 | 10,783,387 | 140,382 |
Cash and restricted cash, end of year | 2,289,008 | 3,828,224 | 10,783,387 |
Supplemental disclosures of non-cash activities: | |||
Lease liabilities arising from obtaining right-of-use assets | $ 177,022 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Principal Activities [Abstract] | |
Organization and Principal Activities | 1. Organization and Principal Activities (a) Principal activities Sentage Holdings Inc. (“Sentage Holdings” or the “Company”) was incorporated on September 16, 2019 under the law of Cayman Islands as an exempted company with limited liability. As of December 31, 2023, the Company, through its subsidiaries and consolidated variable interest entities (“VIEs”) (collectively referred to as the “Group”) was primarily engaged in providing customers a comprehensive range of financial services including repayment and collection management services, loan recommendation services, and prepaid payment network services. All of the Group’s operations and customers are located in the People’s Republic of China(“PRC”). Sentage Holdings owns 100% of the equity interests of Sentage Hongkong Limited (“Sentage HK”), a limited liability company formed under the laws of Hong Kong on September 25, 2019. On December 17, 2019, Shanghai Santeng Technology Co., Ltd. (“Sentage WFOE”) was incorporated pursuant to PRC laws as a wholly foreign owned enterprise of Sentage HK. Sentage Holdings, Sentage HK, and Sentage WFOE are currently not engaging in any active business operations and merely acting as holding companies. As of December 31, 2023, the consolidated financial statements of the Company include the following entities: Entity Date of Place of Percentage of Principal activities Sentage Holdings Inc. (“Sentage Holdings”) September 16, 2019 Cayman Islands Parent, 100% Investment holding Sentage Hongkong Limited (“Sentage HK”) September 25, 2019 Hong Kong Investment holding Shanghai Santeng Technology Co., Ltd. (“Sentage WFOE”) December 17, 2019 Shanghai, PRC WFOE, Consultancy and information technology support Daxin Wealth Investment Management (Shanghai) Co., Ltd. (“Daxin Wealth”) August 13, 2014 Shanghai, PRC Consumer loan repayment and collection management services; and loan recommendation services to assist borrowers to obtain loans from various financial institutions services Daxin Zhuohui Financial Information Services (Shanghai) Co., Ltd. (“Daxin Zhuohui”) January 9, 2015 Shanghai, PRC Consumer loan repayment and collection management services; and loan recommendation services to assist borrowers to obtain loans from various financial institutions services Qingdao Buytop Payment Services Co., Ltd. (“Qingdao Buytop”) August 4, 2009 Qingdao,Shandong,PRC VIE Prepaid payment network services Zhenyi Information Technology (Shanghai) Co., Ltd. (“Zhenyi”) August 29, 2017 Shanghai, PRC VIE Provide technology and system development and support (b) History of the Group and reorganization Organization and General Prior to the reorganization described below, the Sentage Operating Companies Shareholders were the controlling shareholders of the following entities: (1) Daxin Wealth Investment Management (Shanghai) Co., Ltd. (“Daxin Wealth”), formed in Shanghai City, China on August 13, 2014; (2) Daxin Zhuohui Financial Information Services (Shanghai) Co., Ltd. (“Daxin Zhuohui”), formed in Shanghai City, China on January 9, 2015; (3) Qingdao Buytop Payment Services Co., Ltd. (“Qingdao Buytop”), formed in Qingdao City, Shandong Province, China on August 4, 2009; and (4) Zhenyi Information Technology (Shanghai) Co., Ltd. (“Zhenyi”), formed in Shanghai City, China on August 29, 2017. Daxin Wealth, Daxin Zhuohui, Qingdao Buytop and Zhenyi were all formed as limited companies pursuant to PRC laws. Daxin Wealth and Daxin Zhuohui are primarily engaged in providing consumer loan repayment and collection management services. Daxin Zhuohui also provides loan recommendation services. Qingdao Buytop is primarily engaged in providing customers with prepaid payment network services. Zhenyi is primarily engaged in providing technology and system development and support. Daxin Wealth, Daxin Zhuohui, Qingdao Buytop and Zhenyi are collectively referred to as the “Sentage Operating Companies” below. Reverse recapitalization A reorganization of legal structure (“Reorganization”) was completed on March 9, 2020. The Reorganization involved the formation of Sentage Holdings, Sentage HK and Sentage WFOE, and entering into certain contractual arrangements Sentage WFOE, the shareholders of the Sentage Operating Companies. Consequently, the Company became the ultimate holding company of Sentage HK, Sentage WFOE, Daxin Wealth, Daxin Zhuohui, and Qingdao Buytop. On March 9, 2020, Sentage WFOE entered into a series of contractual arrangements with the shareholders of the Sentage Operating Companies. These agreements include Exclusive Purchase Agreements, an Exclusive Business Cooperation Agreement, Equity Pledge Agreements, Powers of Attorney, Loan Agreements intended to guarantee the exercise of the Exclusive Purchase Agreements and Spouse Consents (collectively the “VIE Agreements”). Sentage WFOE, Zhenyi, and Zhenyi’s shareholders entered into the VIE Agreements on April 1, 2021. Pursuant to the VIE Agreements, Sentage WFOE has the exclusive right to provide to the Sentage Operating Companies consulting services related to business operations including technical and management consulting services. As a result of our direct ownership in Sentage WFOE and the VIE Agreements, we are regarded as the primary beneficiary of the VIEs, and we treat the VIEs as our consolidated entities under U.S. GAAP, for accounting purposes. We have consolidated the financial results of the VIEs in our consolidated financial statements in accordance with U.S. GAAP. The VIE Agreements have not been tested in a court of law in China as of the date of this annual report. The Company, together with its wholly owned subsidiaries and its VIEs, is effectively controlled by the same shareholders before and after the Reorganization and therefore the Reorganization is considered as a recapitalization of entities under common control. The consolidation of the Company, its subsidiaries, and its VIEs has been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements. (c) VIE contractual arrangements The Company’s main operating entities are Daxin Wealth, Daxin Zhuohui, Qingdao Buytop and Zhenyi (or the “Sentage Operating Companies” as referred above), in which we do not have equity interests but whose financial results have been consolidated by Sentage Holdings for accounting purposes in accordance with U.S. GAAP due to Sentage Holdings having effective control over, and being the primary beneficiary of, these companies via the VIE Agreements, which have not been tested in a court of law in China as of the date of this annual report. Risks associated with the VIE structure The Company believes that the contractual arrangements with its VIEs and the shareholders of its VIEs are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’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 Company’s PRC subsidiary and VIEs; ● discontinue or restrict the operations of any related-party transactions between the Company’s PRC subsidiary and VIEs; ● limit the Company’s business expansion in China by way of entering into contractual arrangements; ● impose fines or other requirements with which the Company’s PRC subsidiary and VIEs may not be able to comply; ● require the Company or the Company’s PRC subsidiary and VIEs to restructure the relevant ownership structure or operations; or ● restrict or prohibit the Company’s use of the proceeds from public offering to finance the Company’s business and operations in China. The Company’s ability to conduct its financial service businesses may be negatively affected if the PRC government were to carry out of any of the aforementioned actions. As a result, the Company 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 and their shareholders and it may lose the ability to receive economic benefits from the VIEs. The Company, however, does not believe such actions would result in the liquidation or dissolution of the Company, its PRC subsidiary and its VIEs. The Company, Sentage HK and Sentage WFOE are essentially holding companies and do not have active operations as of December 31, 2023 and 2022. As a result, total assets and liabilities presented on the Consolidated Balance Sheets and revenue, expenses, and net income presented on the Consolidated Statement of Comprehensive Income as well as the cash flows from operating, investing and financing activities presented on the Consolidated Statement of Cash Flows are substantially the financial position, operation and cash flow of the Company’s VIEs. The Company has not provided any financial support to the VIEs for the years ended December 31, 2023 and 2022. The table sets forth the assets and liabilities of the VIEs included in the Company’s consolidated balance sheets: As of December 31, 2022 2023 USD USD ASSETS Current assets Cash and cash equivalents 20,020 63,002 Restricted cash 23,089 26,127 Accounts receivable, net 433,510 284,628 Prepaid expenses and other current assets 966,260 1,007,922 Total current assets 1,442,879 1,381,679 Non-current assets Plant and equipment, net 53,023 64,472 Intangible assets, net 89,475 66,859 Deferred tax assets 12,686 12,324 Total non-current assets 155,184 143,655 Total assets 1,598,063 1,525,334 Current liabilities Accounts payable 8,647 5,985 Accrued expenses and other current liabilities 1,431,818 1,848,687 Total current liabilities 1,440,465 1,854,672 Non-current liability Due to a related party, non-current 464,709 764,094 Total non-current liability 464,709 764,094 Total liabilities 1,905,174 2,618,766 The table sets forth the results of operations of the VIE included in the Company’s consolidated statements of comprehensive income/(loss): Years ended December 31, 2021 2022 2023 USD USD USD Total revenues 2,262,449 161,372 146,554 Net Income (loss) 692,774 (960,506 ) (797,223 ) The table sets forth the cash flows of the VIE included in the Company’s consolidated statements of cash flows: Years ended December 31, 2021 2022 2023 USD USD USD Net cash (used in) provided by operating activities 1,433,255 (371,005 ) (254,262 ) Net cash used in investing activities (19,977 ) (34,346 ) (23,433 ) Net cash provided by (used in) financing activities (959,420 ) (156,311 ) 299,385 As the VIEs are incorporated as limited liability companies under the PRC Company Law, the creditors of the VIEs do not have recourse to the general credit of the Company. There is currently no contractual arrangement that would require the Company to provide additional financial support to the VIEs. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of significant accounting policies | 2. Summary of significant accounting policies (a) Basis of presentation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below. (b) Principles of consolidation The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries and its VIEs. All transactions and balances among the Company, its subsidiaries and its VIEs have been eliminated upon consolidation. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting powers; has the power 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; or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A consolidated VIE is an entity in which the Company, or its subsidiary, through contractual agreements, bears the risks of, and enjoys the rewards normally associated with ownership of the entity. In determining whether the Company or its subsidiaries are the primary beneficiary, the Company considered whether it has the power to direct activities that are significant to the VIE’s economic performance, and also the Group’s obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. As a result of the Company’s direct ownership in Sentage WFOE and the VIE Agreements, the Company is regarded as the primary beneficiary of the VIEs, and we treat the VIEs as the Company’s consolidated entities under U.S. GAAP, for accounting purposes. The Company has consolidated the financial results of the VIEs in its consolidated financial statements in accordance with U.S. GAAP. The VIE agreements have not been tested in a court of law in China as of the date of this annual report. (c) Use of estimates The preparation of the Company’s 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, disclosure of contingent assets and liabilities at the balance sheet date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include, but are not limited to, estimate of standalone selling prices of each unit of accounting in multiple elements arrangements, estimate of breakage, the fair value of identifiable assets acquired, liabilities assumed and non-controlling interests in business combinations, the useful lives of long-lived assets including intangible assets, the fair value of the reporting unit for the goodwill impairment test, the allowance for doubtful accounts receivable and other receivables, the realization of deferred tax assets, the fair value of share-based compensation awards, lease liabilities, right-of-use assets and the recoverability of long-lived assets. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. (d) Functional currency The Group use United States dollar (“US$”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated outside of the PRC is US, while the functional currency of the PRC entities in the Group is RMB as determined based on the criteria of Accounting Standards Codification (“ASC”) 830, Foreign Currency Matters. (e) Convenience translation The functional and reporting currency of the Company is the United States Dollar (“US$”). The Company’s operating subsidiary in China uses Renminbi (“RMB”) as the functional currency. The financial statements of the Company and its subsidiaries, other than subsidiaries with functional currency of US$, are translated into US$ using the exchange rate as of the balance sheet date for assets and liabilities and average exchange rate for the year for income and expense items. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss) included in consolidated statements of changes in shareholders’ equity. Translation gains and losses are recognized in the consolidated statements of operations and comprehensive income (loss) as other comprehensive income or loss. For the Company, except for the shareholders’ equity, the balance sheet accounts on December 31, 2023 and 2022 were translated at RMB 7.0999 and RMB 6.8972 to $1.00, respectively. The shareholders’ equity accounts were translated at their historical rate. The average translation rates applied to statements of operations for the years ended December 31, 2023 and 2022 were RMB 7.0809 and RMB 6.7290 to $1.00, respectively. Cash flows were also translated at average translation rates for the periods. Therefore, amounts reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. (f) Cash and cash equivalents Cash and cash equivalents includes currency on hand and deposits held by banks that can be added or withdrawn without limitation. The Company maintains all of its bank accounts in the PRC. The Company’s cash balances in these bank accounts in the PRC are not insured by the Federal Deposit Insurance Corporation or other programs. (g) Restricted cash In connection with the Company’s newly launched prepaid payment network service business, the Company is required to make an initial one-year security deposit with designated PRC banks in order to be eligible to issue prepaid gift and debit cards to customers. Security deposit is based on 1% of the estimated proceeds to be collected from the prepaid card issuance and is subject to adjustment as be determined by the PRC banks based on actual sales volume of the prepaid cards. As of December 31, 2022 and 2023, the Company has not issued any prepaid cards to customers. The Company records such security deposit as restricted cash. (h) Accounts receivable net Accounts receivable net are service fees generated through providing prepaid payment network services to customers. The Company reduces accounts receivable by recording an allowance for doubtful accounts to account for the estimated impact of collection issues resulting from a client’s inability or unwillingness to pay valid obligations to the Company. The Company determines the adequacy of allowance for doubtful accounts based on individual account analysis, historical collection trend, and best estimate of specific losses on individual exposures. The Company establishes a provision for doubtful receivable when there is objective evidence that the Company may not be able to collect amounts due. Actual amounts received may differ from management’s estimate of credit worthiness and the economic environment. Delinquent account balances are written-off against the allowance for doubtful accounts after the management has determined that the likelihood of collection is not probable. As of December 31, 2023 and 2022, Allowance for doubtful debts was US$133,805 and US$59,444 respectively. (i) Plant and equipment, net Plant and equipment are stated at cost less accumulated depreciation and any recorded impairment. Gains or losses arising from the disposal of an item of plant and equipment are determined as the difference between the net disposal proceeds and the carrying amount of the item and are recognized in profit or loss on the date of disposal. The estimated useful lives are presented below. Office equipment and furniture 3-5 years Transportation vehicles 3-5 years Depreciation on plant and equipment is calculated on the straight-line method over the estimated useful lives of the assets. 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 is recognized in the Consolidated Statements of Comprehensive Operations and Other Comprehensive Income (Loss) . (j) Intangible assets Purchased intangible assets are initially measured at cost. Following initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. Intangible assets with finite lives are amortized over the useful life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at each financial year end. Intangible assets, excluding development costs, created within the business are not capitalised and expenditure is charged against profits in the period in which the expenditure is incurred. The Company’s intangible assets with definite useful lives primarily are purchased software. The Company typically amortizes intangible assets with definite useful lives on a straight-line basis over estimated useful lives of ten years. (k) Impairment of long-lived assets Long-lived assets with finite lives, Plant and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the estimated cash flows from the use of the asset and its eventual disposition are below the asset’s carrying value, then the asset is deemed to be impaired and written down to its fair value. There were no impairments of these assets as of December 31, 2023 and 2022. (l) Fair value of financial instruments The Group applies ASC 820, Fair Value measurements and Disclosures, for fair value measurements financial assets and financial liabilities and for fair value measurements of non-financial items that are recognized or disclosed at fair value in the consolidated financial statements on a recurring and non-recurring basis. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. ASC 820 also establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be 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 measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: ● Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group has the ability to access at the measurement date. ● Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. ● Level 3 inputs are unobservable inputs for the asset or liability. The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety. In situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects management’s own judgments about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by management based on the best information available in the circumstances. Unless otherwise disclosed, the fair value of the Group’s financial instruments, including cash, restricted cash, accounts receivable, prepaid expenses and other current assets, accounts payable, deferred revenue and accrued expenses and other current liabilities approximate the fair value of the respective assets and liabilities as of December 31, 2023 and 2022 based upon the short-term nature of the assets and liabilities. The balance of due to related parties also approximate the fair value because it was paid by cash from related parties to the Group as working capital. The functional currency for Sentage and Sentage HK is the United States dollar (“US$”). However, Sentage, and Sentage HK currently only serve as the holding companies and did not have active operations as of the date of this annual report. The Company operates its business through its VIEs in the PRC as of December 31, 2023. The functional currency of the Company’s VIEs is the Chinese Yuan (“RMB”). The Company’s consolidated financial statements have been translated into US$. Assets and liabilities accounts are translated using the exchange rate at each reporting period end date. Equity accounts are translated at historical rates. Income and expense accounts are translated at the average rate of exchange during the reporting period. The resulting translation adjustments are reported under other comprehensive income. Gains and losses resulting from the translations of foreign currency transactions and balances are reflected in the results of operations. The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US$ 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: As of December 31, 2022 2023 Year-end spot rate US$1=RMB 6.8972 US$1=RMB 7.0999 Average rate US$1=RMB 6.7290 US$1=RMB 7.0809 (m) Revenue recognition On January 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with customers”, using the modified retrospective approach. The Company adopted ASC 606, “Revenue from Contracts with Customers” for all periods presented. Consistent with the criteria of ASC 606, the Company follows five steps for its revenue recognition: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The primary sources of the Group’s revenues are as follows: (1) Revenue from consumer loan repayment and collection management services Loans facilitated through the Company were consumer loan products ranging from 30,000 RMB (approximately $4,342) to 80,000 RMB (approximately US$11,579). Loan term ranges from one year to four years. All the Company’s clients are individual customers who entered into service agreements with the Company. All these loans were facilitated through the Company’s offline loan recommendation services before November 2017. Since November 2017, the Company has not provided any intermediary services for any new customers in anticipation of changes in related governing regulations in China, and the Company has been focusing on providing services related to consumer loan repayment and collection management to its customers. These consumer loan repayment and collection management services are a part of the Company’s service obligation in its service agreements with its customers. Pursuant to the service agreements, customers authorized the Company to monitor and manage the repayment and collection process of outstanding loans for a fixed service fee, which was paid upfront by customers. The Company is required to monitor loans within the loan term to ensure timely repayment of loans when they become due. Pursuant to the Company’s agreements with customers, loan repayment and collection management services are parts of bundled services offered by the Company to customers for a fixed fee and are not capable of being distinct because the Company is required to concurrently monitor and manage the repayment and collection process of outstanding loans to be entitled to receive a fixed service fee. As a result, loan management services and collection management services are not separately identifiable in the context of the contract and accordingly are treated as a bundled single performance obligation. There is no variable consideration in the contract. Once a specific loan is repaid on time, the Company’s service obligation related to such loan is satisfied. When a loan becomes delinquent, the Company is then required to assist in collection efforts for an extended service period of 12 months starting on the day such loan becomes delinquent. No additional fee can be charged for collection management services provided to delinquent loans beyond the initial fixed fee agreed. If all or a part of the loan is still not repaid after all collection management efforts are exhausted within such required service period, the Company’s service obligation related to such loan is satisfied and the Company is not responsible for any loss from an uncollectible loan. The Company’s loan repayment and collection management services primarily include reconciling borrower repayment record and sending payment reminder and notice periodically, facilitating repayment upon maturity and collaborating with third-party collection agents and law firms in the event of delinquency etc. Loan repayment and collection management fees received from the customers upfront are deferred first, and then ratably recognized as revenue over the loan terms or an extended service period of 12 months starting on the day such loan becomes delinquent, as the Company performs designated services. (2) Revenue from services provided to borrower for loan recommendation The Company started to provide recommendation services where the Company recommends prospective borrowers to funding partners in June 2019. The Company’s performance obligations include making loan product recommendations to borrower applicants, processing paperwork related to borrowers’ applications based on their specific needs, evaluating credentials of borrower applicants, appraising borrowers’ properties to be collateralized through data analysis and on-site inspection, and recommending qualified borrowers to various funding partners for loan approval. The Company receive a service fee from a borrower if he or she is approved for a loan and such loan is then funded by one of our funding partners. The Company acquires borrowers through cooperating with third-party referral partners as well as through its own borrower development efforts. For borrowers acquired through cooperating with third-party referral partners, pursuant to the service agreement between the Company and the referral partners, referral partners first charge borrowers service fees for their referrals. The Company then charges the referral partners a commission ranging from 1.5% to 2% based on the loan proceeds disbursed to the borrowers. For borrowers developed directly by the Company, the Company charges the borrowers a service fee of 1.75% to 3% of the loan amount received by the borrowers. Such revenue is recognized at the point when the Company’s performance obligations are satisfied and the loan proceeds are disbursed to a specific borrower. For the years ended December 31, 2023, 2022 and 2021, the Company earned nil nil (3) Revenue from prepaid payment network services In 2012, one of the Company’s VIE subsidiaries, Qingdao Buytop, was granted a third-party payment service license by the relevant authority in China. The Company started to provide prepaid payment network services to merchant customers in August 2019. The Company is licensed to issue generic and branded prepaid gift and debit cards and provide related services to various merchants, such as supermarket and department stores. In connection with the prepaid payment network services, the Company expects to generate revenue from: (1) technology consulting and support services fees related to payment solution planning, design, and management; (2) prepaid card payment services fees related to the issuance and use of prepaid cards. Technology consulting and support services are short-term in nature, with service period ranging from one to three months, and related service fees are recognized as revenue at point when payment solution, design and management services are rendered, completed and accepted by customers. For merchant customers who need prepaid card payment services such as collecting and processing information necessary for prepaid card issuance and authorizing transaction requests after verifying transaction information, the Company charges service fee equal to 0.3% to 0.5% of each transaction amount and recognizes revenue at the point when the prepaid cards issued by merchant customers are used by their end user card holders. For the years ended December 31, 2023, 2022 and 2021, the Company earned $146,554, $161,372 and $928,565 revenue from providing technology consulting and support service revenue to customers, respectively. (n) Income taxes The Company accounts for income taxes under ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. An uncertain tax position is recognized only if it is “more likely than not” that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes have been incurred during the years ended December 31, 2023, 2022 and 2021. The Company does not believe that there was any uncertain tax provision on December 31, 2023, 2022 and 2021. The Company’s subsidiary and VIEs in China are subject to the income tax laws of the PRC. No significant income was generated outside the PRC for the fiscal years ended December 31, 2023, 2022 and 2021. As of December 31, 2023, all of the tax returns of the Company’s PRC subsidiary and VIEs remain available for statutory examination by PRC tax authorities. (o) Value added tax (“VAT”) The Company is a general taxpayer and is subject to applicable VAT tax rate of 6%. VAT is reported as a deduction to revenue when incurred. Entities that are VAT general taxpayers are allowed to offset qualified input VAT tax paid to suppliers against their output VAT liabilities. (p) Earnings per Share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding for the period. Diluted 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. As of December 31, 2023 and 2022, there were no dilutive shares. (q) Statutory reserve In accordance with the Company Laws of the PRC, the PRC Entities registered as PRC domestic companies must make appropriations from its after-tax profit as determined under the PRC GAAP to non-distributable reserve funds including a statutory surplus fund and a discretionary surplus fund. The appropriation to the statutory surplus fund must be at least 10% of the after-tax profits as determined in accordance with the legal requirements in the PRC. Appropriation is not required if the surplus fund has reached 50% of the registered capital of the respective company. Appropriation to the discretionary surplus fund is made at the discretion of the respective company. The use of the statutory reserves are restricted to the off-setting of losses or increasing capital of the respective company. All these reserves are not allowed to be transferred to their investors in terms of cash dividends, loans or advances, nor can they be distributed except under liquidation. (r) Comprehensive income Comprehensive income consists of two components, net income and other comprehensive income. The foreign currency translation gain or loss resulting from translation of the financial statements expressed in RMB to US$ is reported in other comprehensive income in the Consolidated Statements of Comprehensive Operations and Other Comprehensive Income (Loss) . (s) Statement of Cash Flows In accordance with ASC 230, “Statement of Cash Flows”, cash flows from the Company’s operations are formulated based upon the local currencies using the average exchange rate in the period. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. (t) Related parties and transactions The Company identifies related parties, and accounts for, discloses related party transactions in accordance with ASC 850, “Related Party Disclosures” and other relevant ASC standards. Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Companies are also considered to be related if they are subject to common control or common significant influence. Transactions between related parties commonly occurring in the normal course of business are considered to be related party transactions. Transactions between related parties are also considered to be related party transactions even though they may not be given accounting recognition. While ASC does not provide accounting or measurement guidance for such transactions, it nonetheless requires their disclosure. (u) Right-of-use assets, net In February 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), which is effective for annual reporting periods (including interim periods) beginning after December 15, 2018, and early adoption is permitted. The Company, through its subsidiary, leases its offices, which are classified as operating leases in accordance with Topic 842. Operating leases are required to record in the balance sheet as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. The Company has elected the package of practical expedients, which allows the Company 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 Company elected the short-term lease exemption as the lease terms are 12 months or less. At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange of a consideration. To assess whether a contract is or contains a lease, the Company assesses whether the contract involves the use of an identified asset, whether it has the right to obtain substantially all the economic benefits from the use of the asset and whether it has the right to control the use of the asset. The right-of-use assets and related lease liabilities are recognized at the lease commencement date. The Company recognizes operating lease expenses on a straight-line basis over the lease term and had no finance leases for any of the periods stated herein. The right-of-use of asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and less any lease incentive received. All right-of-use assets are reviewed for impairment annually. No impairment for right-of-use lease assets as of December 31, 2023 and 2022. (v) Accrued expenses and other current liabilities Accrued expenses and other current liabilities include employee compensation payable, taxes payable and other payables. employee compensation payable refers to the salary, social security, provident fund and bonus payable to the Company’s employees before the end of the current fiscal year. taxes payable refers to the composition of VAT and surtax payable under PRC tax before the end of the fiscal year. Other payables mainly deposit, service fees, etc. (w) Long-term investments Beginning on January 1, 2018, the Group’s equity investments without readily determinable fair values, which 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 (“NAV practical expedient”), and over which the Group does not have the ability to exercise significant influence through the investments in common stock or in substance common stock, are accounted for under the measurement alternative upon the adoption of ASU 2016-01 (the “Measurement Alternative”). Under the Measurement Alternative, the carrying value is measured at cost, less any i |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Cash and cash equivalents | 3. Cash and cash equivalents Cash and cash equivalents, consist of the following: As of December 31, 2022 2023 USD USD Cash at bank $ 3,805,103 $ 2,262,851 Cash on hand 32 30 Total $ 3,805,135 $ 2,262,881 The carrying amounts of the Group’s bank and cash balances are denominated in the following currencies: As of December 31, 2022 2023 USD USD RMB $ 139,688 $ 63,241 USD 3,665,447 2,199,640 Total $ 3,805,135 $ 2,262,881 Conversion of RMB into foreign currencies is subject to the PRC’s Foreign Exchange Control Regulations and Administration of Settlement, Sale and Payment of Foreign Exchange Regulations. |
Accounts receivable, net
Accounts receivable, net | 12 Months Ended |
Dec. 31, 2023 | |
Accounts receivable, net [Abstract] | |
Accounts receivable, net | 4. Accounts receivable, net Accounts receivable, net, consist of the following: As of December 31, 2022 2023 USD USD Accounts receivable associated with prepaid payment network services 492,954 478,880 Less: Allowance for doubtful debts (59,444 ) (194,252 ) Accounts receivable, net $ 433,510 $ 284,628 The Company’s accounts receivable are service fees generated through providing prepaid payment network services to customers. As of December 31, 2023 and 2022, the Company had accounts receivable net of $284,628 and $433,510, respectively. The allowance for doubtful accounts were $194,252 and $59,444 as of December 31, 2023 and 2022. Allowance for doubtful accounts movement: As of December 31, 2022 2023 Beginning balance $ 54,896 $ 59,444 Additions 4,548 134,808 Ending balance $ 59,444 $ 194,252 |
Loan Receivable
Loan Receivable | 12 Months Ended |
Dec. 31, 2023 | |
Loan Receivable [Abstract] | |
Loan receivable | 5. Loan receivable On July 8, 2021, the Company entered into an agreement with Fortune Access Development Corporation, a British Virgin Island corporation, to purchase a one-year note with principal of $5.5 million at 3% per annum. As of December 31, 2022, the outstanding loan receivable was $5,500,000 with unsecured. As of April 16, 2023, the Company collected back all the loan receivable. On April 16, 2023, the Company had received all loans receivable. As of December 31, 2023, the balance of loan receivable is nil |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid expenses and other current assets [Abstract] | |
Prepaid expenses and other current assets | 6. Prepaid expenses and other current assets The prepaid expenses and other current assets consist of the following: As of December 31, 2022 2023 USD USD Prepaid expenses and other current assets Advance to suppliers (i) $ 48,710 $ 26,630 Other receivable, net (ii) 4,523,688 9,085,238 Value-added Tax (“VAT”) recoverable (iii) 7,248 7,041 Total $ 4,579,646 $ 9,118,909 (i) Advance to suppliers represents balance paid to vendors for certain services that have not been completed. These advances are interest free, unsecured and short-term in nature and are reviewed periodically to determine whether their carrying value has become impaired. As of December 31, 2023 and 2022, there was no allowance recorded as the Company considers all of the advance to suppliers balance fully realizable. (ii) Other receivable primarily includes advances to employees for business development and security deposits paid for third-party payment platforms. This primarily represents a deposit paid by the Company to commission the acquisition of the e-commerce technology services business. As of December 31, 2023 and 2022, there was no allowance recorded as the Company considers all of the other receivable balance fully collectible. (iii) VAT tax recoverable represents the amount that is overpaid by the Company before the VAT tax invoices received. Such amount can be used to offset future VAT tax liability. |
Plant and Equipment, Net
Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2023 | |
Plant and Equipment, Net [Abstract] | |
Plant and equipment, net | 7. Plant and equipment, net Plant and equipment consists of the following: As of December 31, 2022 2023 USD USD Cost: Office equipment and furniture $ 363,991 $ 377,032 Transportation vehicles 57,373 55,735 Total cost $ 421,364 $ 432,767 Less: Accumulated depreciation (368,341 ) (368,295 ) Plant and equipment, net $ 53,023 $ 64,472 Depreciation expense was $11,984, $25,464 and $23,370 for the years ended December 31, 2023, 2022 and 2021, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets, Net [Abstract] | |
Intangible assets, net | 8. Intangible assets, net Intangible assets, net, consist of the following: As of December 31, 2022 2023 USD USD Software $ 457,640 $ 444,574 Total cost $ 457,640 $ 444,574 Less: Accumulated amortization (368,165 ) (377,715 ) Intangible assets, net $ 89,475 $ 66,859 Amortization expense was $ 9,550, $17,212 and $39,601 for the years ended December 31, 2023, 2022 and 2021, respectively. |
Long-Term Investments
Long-Term Investments | 12 Months Ended |
Dec. 31, 2023 | |
Long-Term Investments [Abstract] | |
Long-term investments | 9. Long-term investments On December 15, 2023, the Company signed an investment agreement to invest a total of US $10 million in AI technology enterprise Kangguozhen International Holdings Limited (” Kangguozhen “), accounting for 11.11% of Kangguozhen equity. As of December 31, 2023, $1.0 million of investment has been paid. The investment was accounted for under the cost method as the Group had no significant influence over the investee. As of December 31, 2023, impairment loss of short-term investments was nil |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2023 | |
Operating leases [Abstract] | |
Operating leases | 10. Operating leases The Group has leased office premises and buildings under non-cancellable operating lease agreements. These leases have different terms and renewal rights. The following table presents balances reported in the consolidated balance sheets related to the Company’s leases: As of December 31, 2022 2023 USD USD Right-of-use asset, net $ 162,270 $ 72,939 Lease liabilities, current 87,129 72,230 Lease liabilities, non-current 74,384 - Total operating lease liabilities $ 161,513 $ 72,230 The components of lease expenses were as follows: For the years ended 2022 2023 Lease cost Amortization of right-of-use assets $ 14,752 $ 84,108 Interest of operating lease liabilities 1,342 5,508 Total $ 16,094 $ 89,616 The following table reconciles the undiscounted cash flows of the Group leases as of December 31, 2023 to the present value of its operating lease payments: For the year ending December 31 USD 2024 73,667 Total undiscounted operating lease payments 73,667 Less: imputed interest (1,437 ) Present value of operating lease liabilities 72,230 |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax [Abstract] | |
Income tax | 11. Income tax (a) Cayman Islands Under the current tax laws of the Cayman Islands, the Company is not subject to tax on its income or capital gains. In addition, no Cayman Islands withholding tax will be imposed upon the payment of dividends by the Company to its shareholders. (b) Hong Kong Profits Tax Sentage HK is incorporated in Hong Kong and is subject to profit taxes in Hong Kong at a rate of 16.5%. However, Sentage HK did not generate any assessable profits arising in or derived from Hong Kong for the fiscal years ended December 31, 2023, 2022 and 2021, and accordingly no provision for Hong Kong profits tax has been made in these periods. (c) PRC Enterprise Income Tax (“EIT”) On March 16, 2007, the National People’s Congress of the PRC enacted the Enterprise Income Tax Law (“EIT Law”), under which domestic companies would be subject to Enterprise Income Tax (“EIT”) at a uniform rate of 25%. The EIT Law became effective on January 1, 2008. Sentage WFOE, Daxin Wealth, Daxin Zhuohui, Qingdao Buytop and Zhenyi are incorporated in the PRC, and are subject to the PRC Enterprise Income Tax Laws (“EIT Laws”) and are taxed at the statutory income tax rate of 25%. Under the EIT Law and its implementation rules, an enterprise established outside China with a “place of effective management” within China is considered a China resident enterprise for Chinese enterprise income tax purposes. A China resident enterprise is generally subject to certain Chinese tax reporting obligations and a uniform 25% enterprise income tax rate on its worldwide income. The implementation rules to the New EIT Law provide that non-resident legal entities are considered PRC residents if substantial and overall management and control over the manufacturing and business operations, personnel, accounting, properties, etc., occur within the PRC. Despite the present uncertainties resulting from the limited PRC tax guidance on the issue, the Company does not believe that the legal entities organized outside the PRC should be treated as residents for 2008 EIT law purposes. If the PRC tax authorities subsequently determine that the Company and its subsidiaries registered outside the PRC are deemed resident enterprises, the Company and its subsidiaries registered outside the PRC will be subject to the PRC income tax at a rate of 25%. If the Company were to be non-resident for PRC tax purposes, dividends paid to it from profits earned by the PRC operating entities after January 1, 2008 would be subject to a withholding tax. The EIT law and its relevant regulations impose a withholding tax at 10%, unless reduced by a tax treaty or agreement, for dividends distributed by a PRC-resident enterprise to its non-PRC-resident corporate investor for earnings generated beginning on January 1, 2008. Earnings generated prior to January 1, 2008 are exempt from such withholding tax. The Company has not recognized any deferred tax liability for the undistributed earnings of the PRC-resident enterprise as of December 31, 2023, 2022 and 2021, as the Company plans to permanently reinvest the earnings generated before December 31, 2023 in the PRC. Income tax returns of PRC Entities are filed on an individual entity basis. The PRC Entities have calculated their income tax provision using the separate return method in these consolidated financial statements. Income taxes provision Income tax expense consists of the following: Year ended December 31, 2021 2022 2023 USD USD USD Current income tax expense $ 257,344 $ - $ - Total $ 257,344 $ - $ - The following table reconciles the PRC statutory rates to the Company’s effective tax rate for the years ended December 31, 2023, 2022 and 2021: Year ended December 31, 2021 2022 2023 USD USD USD China Income tax statutory rate 25.0 % (25.0 )% (25.0 )% Nondeductible expenses-permanent difference 0.1 % 0.1 % 0.1 % Change in valuation allowance 6.5 % 24.9 % 24.9 % Effective tax rate 31.6 % - % - Deferred taxes The Company’s deferred tax assets are comprised of the following: As of December 31, 2022 2023 USD USD Deferred tax assets Deferred tax assets derived from net operating loss (“NOL”) carry forwards and deferred revenue $ 650,601 $ 12,324 Total gross deferred tax assets 650,601 12,324 Valuation allowance on deferred tax assets (637,915 ) - Deferred tax assets, net of valuation allowance $ 12,686 $ 12,324 The Company follows ASC 740, “Income Taxes”, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company’s deferred tax assets primarily derived from the net operating loss (“NOL”) and deferred revenue that can be carried forward to offset future taxable income. As the Company ended its offline loan recommendation business in the end of 2017, management concluded that the chance for the Company’s VIEs, Daxin Wealth and Daxin Zhuohui, to utilize their net operating loss carry forwards Uncertain tax positions The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of December 31, 2023 and 2022, the Company did not have any significant unrecognized uncertain tax positions. The Company did not incur any interest or penalties tax for the years ended December 31, 2023, 2022 and 2021. The Company does not anticipate any significant increases or decreases in unrecognized tax benefits in the next twelve months from December 31, 2023. As of December 31, 2023, all the tax returns of the Company’s PRC subsidiary and VIEs remain available for statutory examination by PRC tax authorities. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Accrued expenses and other current liabilities | 12. Accrued expenses and other current liabilities Accrued expenses and other payables consist of the following: As of December 31, 2022 2023 USD USD Accrued expenses and other current liabilities Deposits received from customers $ 20,592 $ 23,410 Accrued expenses 36,883 11,227 VAT and other taxes payable 200,342 192,428 Payroll payable 51,184 29,730 Total $ 309,001 $ 256,795 |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related party transactions [Abstract] | |
Related party transactions | 13. Related party transactions Due to related party Due to a related party consists of the following: As of December 31, Name Related party relationship 2022 2023 USD USD Qiaoling Lu CEO and controlling shareholder of the Company $ 4,709 $ 344,235 Total due to a related party $ 4,709 $ 344,235 As of December 31, 2023 and 2022, the balance due to a related party in the amount of $ 344,235 and $ 4,709, respectively, was loan advance from the Company’s controlling shareholder and was used as working capital during the Company’s normal course of business. |
Concentrations
Concentrations | 12 Months Ended |
Dec. 31, 2023 | |
Concentrations [Abstract] | |
Concentrations | 14. Concentrations A majority of the Company’s revenue and expense transactions are denominated in RMB and a significant portion of the Company and its subsidiaries’ assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“PBOC”). Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or other China foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance. As of December 31, 2023 and 2022, $2,262,851 and $3,805,103 of the Company’s cash was on deposit at financial institutions in the PRC where there currently is no rule or regulation requiring such financial institutions to maintain insurance to cover bank deposits in the event of bank failure. For the years ended December 31, 2023, 2022 and 2021, the Company’s substantial assets were located in the PRC and the Company’s substantial revenues were derived from its subsidiaries and VIEs located in the PRC. For the year ended December 31, 2023, one customer accounted for more than 63.6% of the Company’s total revenue. For the year ended December 31, 2022, one customer accounted for more than 52.2% of the Company’s total revenue. For the year ended December 31, 2021, no single customer accounted for more than 10% of the Company’s total revenue. As of December 31, 2023, one customer accounted for 57.4% of the total accounts receivable balance. As of December 31, 2022, one customer accounted for 63.2%of the total accounts receivable balance. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Shareholders' Equity [Abstract] | |
Shareholders' equity | 15. Shareholders’ equity Ordinary shares Sentage Holdings was incorporated as an exempted company with limited liability under the laws of the Cayman Islands on September 16, 2019. The original authorized number of Ordinary Shares was 50,000 shares with par value of $1.00 per share and 10,000 shares were issued and outstanding. On September 2, 2020, the Company amended its Memorandum of Association to subdivide the authorized shares from 50,000 shares at par value of $1.00 per share to 50,000,000 shares of Ordinary Shares with par value of $0.001 per share, and subdivide the already issued 10,000 shares to 10,000,000 shares at par value of $0.001 per share As a result of this forward split, there is a total of 10,000,000 Ordinary Shares issued and outstanding. The issuance of these 10,000,000 shares is considered as a part of the Reorganization of the Company, which was retroactively applied as if the transaction occurred at the beginning of the period presented (see Note 1). On August 10, 2022, the Company’s authorized ordinary shares was consolidated at the ratio of five-for-one and the Company’s authorized capital stock became $50,000 divided into 10,000,000 ordinary shares of $0.005 per share. On December 7, 2023, the Company held its 2023 annual general meeting of shareholders, at which the Company’s shareholders adopted the following: i. the authorized share capital of the Company be increased from US$50,000 divided into 10,000,000 ordinary shares of par value US$0.005 each to US$1,000,000 divided into 200,000,000 ordinary shares of par value US$0.005 each (the “Share Capital Increase”); ii. subject to and immediately following the Share Capital Increase being effected, the Company re-designate and re-classify its authorized share capital as follows (the “Share Capital Reorganization”) a. each ordinary share in issue immediately following the Share Capital Increase be re-designated and re-classified into one Class A ordinary share of par value US$0.005 each (“Class A ordinary shares”); b. 20,000,000 of the remaining authorized but unissued ordinary shares be re-designated and re-classified into one Class B ordinary share of par value US$0.005 each (“Class B ordinary shares”); c. each of the remaining authorized but unissued ordinary shares be re-designated and re-classified into one Class A ordinary share of par value US$0.005 each; iii. subject to and immediately following the Share Capital Increase and/or Share Capital Reorganization being effected, the Company adopt a second amended and restated memorandum and articles of association in substitution for, and to the exclusion of, the Company’s existing memorandum and articles of association, to reflect the Share Capital Increase and/or the Share Capital Reorganization (if and to the extent each is effected) and, subject to the Share Capital Reorganization being effected, the terms of the Class A ordinary shares and Class B ordinary shares. From the legal perspective, the Reverse Split applied to the issued shares of the Company on the date of the Reverse Split and does not have any retroactive effect on the Company’s shares prior that date. However, for accounting purposes only, references to our ordinary shares in this annual report are stated as having been retroactively adjusted and restated to give effect to the Reverse Split, as if the Reverse Split had occurred by the relevant earlier date. Restricted net assets Relevant PRC laws and regulations restrict the Company’s PRC subsidiary and VIEs from transferring a portion of their net assets, equivalent to their statutory reserves and their share capital, to the Company in the form of loans, advances or cash dividends. Only PRC entities’ accumulated profits may be distributed as dividends to the Company without the consent of a third party. The payment of dividends by entities organized in China is subject to limitations, procedures and formalities. Regulations in the PRC currently permit payment of dividends only out of accumulated profits as determined in accordance with accounting standards and regulations in China. The results of operations reflected in the consolidated financial statements prepared in accordance with U.S GAAP differ from those in the statutory financial statements of the WFOE and VIEs. Remittance of dividends by a wholly foreign-owned company out of China is subject to examination by the banks designated by State Administration of Foreign Exchange. In light of the foregoing restrictions, Sentage WFOE and the VIEs are restricted in their ability to transfer their net assets to the Company. Foreign exchange and other regulations in the PRC may further restrict Sentage WFOE and VIEs from transferring funds to the Company in the form of dividends, loans and advances. As of December 31, 2023 and 2022, restricted net assets of Sentage WFOE and VIEs amounted to $409,435 and $846,905, respectively. |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitment and Contingencies [Abstract] | |
Commitment and Contingencies | 16. Commitment and Contingencies (a) Contingencies From time to time, the Company is a party to various legal actions arising in the ordinary course of business. The Company accrues costs associated with these matters when they become probable and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. The Company’s management does not expect any liability from the disposition of such claims and litigation individually or in the aggregate to have a material adverse impact on the Company’s consolidated financial position, results of operations and cash flows. (b) Lease commitments The Company’s VIEs Daxin Wealth, Daxin Zhuohui, and Qingdao Buytop, entered into operating lease agreements with landlords to lease office space in Shanghai and Qingdao. The following table sets forth our contractual obligations as of December 31, 2023 : Year ended December 31, Total 2024 USD USD Operating lease commitments for Lease expense under lease agreements $ 73,667 73,667 Operating lease commitments for property management expenses under lease agreements 9,130 9,130 |
Segment reporting
Segment reporting | 12 Months Ended |
Dec. 31, 2023 | |
Segment reporting [Abstract] | |
Segment reporting | 17. Segment reporting An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, and is identified on the basis of the internal financial reports that are provided to and regularly reviewed by the Company’s chief operating decision maker in order to allocate resources and assess performance of the segment. In accordance with ASC 280, Segment Reporting, operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”), or decision making group, in deciding how to allocate resources and in assessing performance. The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. Management, including the chief operating decision maker, reviews operation results by the revenue of different services. Based on management’s assessment, the Company has determined that it has three operating segments as defined by ASC 280, including Consumer Loan Repayment and Collection Management Services, Loan Recommendation Services and Prepaid Payment Network Services. The following tables present summary information by segment for the years ended December 31, 2023, 2022 and 2021, respectively: Year ended December 31, 2021 Consumer loan repayment and collection management services Loan recommendation services Prepaid payment network services Others Total Revenue 156,062 928,565 1,177,822 - 2,262,449 Cost of revenue and related tax - - 34,556 - 34,556 Operating expenses 508,772 20,717 201,483 2,275,887 3,006,859 Income (loss) from operations (352,710 ) 907,848 941,783 (2,275,887 ) (778,966 ) Income tax expense 14,785 109,732 132,827 - 257,344 Net income (loss) (367,692 ) 798,054 754,814 (2,278,417 ) (1,093,241 ) Depreciation and amortization 1,347 9,997 51,627 - 62,971 Capital expenditure - - 6,722 - 6,722 Total assets (3,715,787 ) 4,011,568 1,629,846 $ 15,441,081 17,366,708 Year ended December 31, 2022 Consumer loan repayment and collection management services Loan recommendation services Prepaid payment network services Others Total Revenue - - 161,372 - 161,372 Cost of revenue and related tax - - 17,833 - 17,833 Operating expenses - 244,629 279,717 2,190,200 2,714,546 Loss from operations - (244,629 ) (136,178 ) (2,190,200 ) (2,571,007 ) Net loss 112 (244,799 ) (144,833 ) (2,172,387 ) (2,561,907 ) Depreciation and amortization - - 42,676 14,752 57,428 Capital expenditure - - 34,346 - 34,346 Total assets 8,328 51,321 1,536,973 13,062,212 14,658,834 Year ended December 31, 2023 Consumer loan repayment and collection management services Loan recommendation services Prepaid payment network services Others Total Revenue - - 146,554 - 146,554 Cost of revenue and related tax - - 12,597 - 12,597 Operating expenses 35,950 7,050 263,315 1,591,197 1,897,512 Loss from operations (35,950 ) (7,050 ) (129,358 ) (1,591,197 ) (1,763,555 ) Net loss (36,020 ) (7,084 ) (265,830 ) (1,594,343 ) (1,903,277 ) Depreciation and amortization - - 21,534 84,108 105,642 Capital expenditure - - 23,433 - 23,433 Total assets 36,079 1,054 1,483,926 11,388,080 12,909,139 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent events | 18. Subsequent events No subsequent event which had a material impact on the Company was identified through the date of issuance of the financial statements. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of presentation | (a) Basis of presentation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below. |
Principles of consolidation | (b) Principles of consolidation The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries and its VIEs. All transactions and balances among the Company, its subsidiaries and its VIEs have been eliminated upon consolidation. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting powers; has the power 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; or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A consolidated VIE is an entity in which the Company, or its subsidiary, through contractual agreements, bears the risks of, and enjoys the rewards normally associated with ownership of the entity. In determining whether the Company or its subsidiaries are the primary beneficiary, the Company considered whether it has the power to direct activities that are significant to the VIE’s economic performance, and also the Group’s obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. As a result of the Company’s direct ownership in Sentage WFOE and the VIE Agreements, the Company is regarded as the primary beneficiary of the VIEs, and we treat the VIEs as the Company’s consolidated entities under U.S. GAAP, for accounting purposes. The Company has consolidated the financial results of the VIEs in its consolidated financial statements in accordance with U.S. GAAP. The VIE agreements have not been tested in a court of law in China as of the date of this annual report. |
Use of estimates | (c) Use of estimates The preparation of the Company’s 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, disclosure of contingent assets and liabilities at the balance sheet date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include, but are not limited to, estimate of standalone selling prices of each unit of accounting in multiple elements arrangements, estimate of breakage, the fair value of identifiable assets acquired, liabilities assumed and non-controlling interests in business combinations, the useful lives of long-lived assets including intangible assets, the fair value of the reporting unit for the goodwill impairment test, the allowance for doubtful accounts receivable and other receivables, the realization of deferred tax assets, the fair value of share-based compensation awards, lease liabilities, right-of-use assets and the recoverability of long-lived assets. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. |
Functional currency | (d) Functional currency The Group use United States dollar (“US$”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated outside of the PRC is US, while the functional currency of the PRC entities in the Group is RMB as determined based on the criteria of Accounting Standards Codification (“ASC”) 830, Foreign Currency Matters. |
Convenience translation | (e) Convenience translation The functional and reporting currency of the Company is the United States Dollar (“US$”). The Company’s operating subsidiary in China uses Renminbi (“RMB”) as the functional currency. The financial statements of the Company and its subsidiaries, other than subsidiaries with functional currency of US$, are translated into US$ using the exchange rate as of the balance sheet date for assets and liabilities and average exchange rate for the year for income and expense items. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss) included in consolidated statements of changes in shareholders’ equity. Translation gains and losses are recognized in the consolidated statements of operations and comprehensive income (loss) as other comprehensive income or loss. For the Company, except for the shareholders’ equity, the balance sheet accounts on December 31, 2023 and 2022 were translated at RMB 7.0999 and RMB 6.8972 to $1.00, respectively. The shareholders’ equity accounts were translated at their historical rate. The average translation rates applied to statements of operations for the years ended December 31, 2023 and 2022 were RMB 7.0809 and RMB 6.7290 to $1.00, respectively. Cash flows were also translated at average translation rates for the periods. Therefore, amounts reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. |
Cash and cash equivaletns | (f) Cash and cash equivalents Cash and cash equivalents includes currency on hand and deposits held by banks that can be added or withdrawn without limitation. The Company maintains all of its bank accounts in the PRC. The Company’s cash balances in these bank accounts in the PRC are not insured by the Federal Deposit Insurance Corporation or other programs. |
Restricted cash | (g) Restricted cash In connection with the Company’s newly launched prepaid payment network service business, the Company is required to make an initial one-year security deposit with designated PRC banks in order to be eligible to issue prepaid gift and debit cards to customers. Security deposit is based on 1% of the estimated proceeds to be collected from the prepaid card issuance and is subject to adjustment as be determined by the PRC banks based on actual sales volume of the prepaid cards. As of December 31, 2022 and 2023, the Company has not issued any prepaid cards to customers. The Company records such security deposit as restricted cash. |
Accounts receivable net | (h) Accounts receivable net Accounts receivable net are service fees generated through providing prepaid payment network services to customers. The Company reduces accounts receivable by recording an allowance for doubtful accounts to account for the estimated impact of collection issues resulting from a client’s inability or unwillingness to pay valid obligations to the Company. The Company determines the adequacy of allowance for doubtful accounts based on individual account analysis, historical collection trend, and best estimate of specific losses on individual exposures. The Company establishes a provision for doubtful receivable when there is objective evidence that the Company may not be able to collect amounts due. Actual amounts received may differ from management’s estimate of credit worthiness and the economic environment. Delinquent account balances are written-off against the allowance for doubtful accounts after the management has determined that the likelihood of collection is not probable. As of December 31, 2023 and 2022, Allowance for doubtful debts was US$133,805 and US$59,444 respectively. |
Plant and equipment, net | (i) Plant and equipment, net Plant and equipment are stated at cost less accumulated depreciation and any recorded impairment. Gains or losses arising from the disposal of an item of plant and equipment are determined as the difference between the net disposal proceeds and the carrying amount of the item and are recognized in profit or loss on the date of disposal. The estimated useful lives are presented below. Office equipment and furniture 3-5 years Transportation vehicles 3-5 years Depreciation on plant and equipment is calculated on the straight-line method over the estimated useful lives of the assets. 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 is recognized in the Consolidated Statements of Comprehensive Operations and Other Comprehensive Income (Loss) . |
Intangible assets | (j) Intangible assets Purchased intangible assets are initially measured at cost. Following initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. Intangible assets with finite lives are amortized over the useful life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at each financial year end. Intangible assets, excluding development costs, created within the business are not capitalised and expenditure is charged against profits in the period in which the expenditure is incurred. The Company’s intangible assets with definite useful lives primarily are purchased software. The Company typically amortizes intangible assets with definite useful lives on a straight-line basis over estimated useful lives of ten years. |
Impairment of long-lived assets | (k) Impairment of long-lived assets Long-lived assets with finite lives, Plant and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the estimated cash flows from the use of the asset and its eventual disposition are below the asset’s carrying value, then the asset is deemed to be impaired and written down to its fair value. There were no impairments of these assets as of December 31, 2023 and 2022. |
Fair value of financial instruments | (l) Fair value of financial instruments The Group applies ASC 820, Fair Value measurements and Disclosures, for fair value measurements financial assets and financial liabilities and for fair value measurements of non-financial items that are recognized or disclosed at fair value in the consolidated financial statements on a recurring and non-recurring basis. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. ASC 820 also establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be 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 measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: ● Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group has the ability to access at the measurement date. ● Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. ● Level 3 inputs are unobservable inputs for the asset or liability. The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety. In situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects management’s own judgments about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by management based on the best information available in the circumstances. Unless otherwise disclosed, the fair value of the Group’s financial instruments, including cash, restricted cash, accounts receivable, prepaid expenses and other current assets, accounts payable, deferred revenue and accrued expenses and other current liabilities approximate the fair value of the respective assets and liabilities as of December 31, 2023 and 2022 based upon the short-term nature of the assets and liabilities. The balance of due to related parties also approximate the fair value because it was paid by cash from related parties to the Group as working capital. The functional currency for Sentage and Sentage HK is the United States dollar (“US$”). However, Sentage, and Sentage HK currently only serve as the holding companies and did not have active operations as of the date of this annual report. The Company operates its business through its VIEs in the PRC as of December 31, 2023. The functional currency of the Company’s VIEs is the Chinese Yuan (“RMB”). The Company’s consolidated financial statements have been translated into US$. Assets and liabilities accounts are translated using the exchange rate at each reporting period end date. Equity accounts are translated at historical rates. Income and expense accounts are translated at the average rate of exchange during the reporting period. The resulting translation adjustments are reported under other comprehensive income. Gains and losses resulting from the translations of foreign currency transactions and balances are reflected in the results of operations. The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US$ 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: As of December 31, 2022 2023 Year-end spot rate US$1=RMB 6.8972 US$1=RMB 7.0999 Average rate US$1=RMB 6.7290 US$1=RMB 7.0809 |
Revenue recognition | (m) Revenue recognition On January 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with customers”, using the modified retrospective approach. The Company adopted ASC 606, “Revenue from Contracts with Customers” for all periods presented. Consistent with the criteria of ASC 606, the Company follows five steps for its revenue recognition: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The primary sources of the Group’s revenues are as follows: (1) Revenue from consumer loan repayment and collection management services Loans facilitated through the Company were consumer loan products ranging from 30,000 RMB (approximately $4,342) to 80,000 RMB (approximately US$11,579). Loan term ranges from one year to four years. All the Company’s clients are individual customers who entered into service agreements with the Company. All these loans were facilitated through the Company’s offline loan recommendation services before November 2017. Since November 2017, the Company has not provided any intermediary services for any new customers in anticipation of changes in related governing regulations in China, and the Company has been focusing on providing services related to consumer loan repayment and collection management to its customers. These consumer loan repayment and collection management services are a part of the Company’s service obligation in its service agreements with its customers. Pursuant to the service agreements, customers authorized the Company to monitor and manage the repayment and collection process of outstanding loans for a fixed service fee, which was paid upfront by customers. The Company is required to monitor loans within the loan term to ensure timely repayment of loans when they become due. Pursuant to the Company’s agreements with customers, loan repayment and collection management services are parts of bundled services offered by the Company to customers for a fixed fee and are not capable of being distinct because the Company is required to concurrently monitor and manage the repayment and collection process of outstanding loans to be entitled to receive a fixed service fee. As a result, loan management services and collection management services are not separately identifiable in the context of the contract and accordingly are treated as a bundled single performance obligation. There is no variable consideration in the contract. Once a specific loan is repaid on time, the Company’s service obligation related to such loan is satisfied. When a loan becomes delinquent, the Company is then required to assist in collection efforts for an extended service period of 12 months starting on the day such loan becomes delinquent. No additional fee can be charged for collection management services provided to delinquent loans beyond the initial fixed fee agreed. If all or a part of the loan is still not repaid after all collection management efforts are exhausted within such required service period, the Company’s service obligation related to such loan is satisfied and the Company is not responsible for any loss from an uncollectible loan. The Company’s loan repayment and collection management services primarily include reconciling borrower repayment record and sending payment reminder and notice periodically, facilitating repayment upon maturity and collaborating with third-party collection agents and law firms in the event of delinquency etc. Loan repayment and collection management fees received from the customers upfront are deferred first, and then ratably recognized as revenue over the loan terms or an extended service period of 12 months starting on the day such loan becomes delinquent, as the Company performs designated services. (2) Revenue from services provided to borrower for loan recommendation The Company started to provide recommendation services where the Company recommends prospective borrowers to funding partners in June 2019. The Company’s performance obligations include making loan product recommendations to borrower applicants, processing paperwork related to borrowers’ applications based on their specific needs, evaluating credentials of borrower applicants, appraising borrowers’ properties to be collateralized through data analysis and on-site inspection, and recommending qualified borrowers to various funding partners for loan approval. The Company receive a service fee from a borrower if he or she is approved for a loan and such loan is then funded by one of our funding partners. The Company acquires borrowers through cooperating with third-party referral partners as well as through its own borrower development efforts. For borrowers acquired through cooperating with third-party referral partners, pursuant to the service agreement between the Company and the referral partners, referral partners first charge borrowers service fees for their referrals. The Company then charges the referral partners a commission ranging from 1.5% to 2% based on the loan proceeds disbursed to the borrowers. For borrowers developed directly by the Company, the Company charges the borrowers a service fee of 1.75% to 3% of the loan amount received by the borrowers. Such revenue is recognized at the point when the Company’s performance obligations are satisfied and the loan proceeds are disbursed to a specific borrower. For the years ended December 31, 2023, 2022 and 2021, the Company earned nil nil (3) Revenue from prepaid payment network services In 2012, one of the Company’s VIE subsidiaries, Qingdao Buytop, was granted a third-party payment service license by the relevant authority in China. The Company started to provide prepaid payment network services to merchant customers in August 2019. The Company is licensed to issue generic and branded prepaid gift and debit cards and provide related services to various merchants, such as supermarket and department stores. In connection with the prepaid payment network services, the Company expects to generate revenue from: (1) technology consulting and support services fees related to payment solution planning, design, and management; (2) prepaid card payment services fees related to the issuance and use of prepaid cards. Technology consulting and support services are short-term in nature, with service period ranging from one to three months, and related service fees are recognized as revenue at point when payment solution, design and management services are rendered, completed and accepted by customers. For merchant customers who need prepaid card payment services such as collecting and processing information necessary for prepaid card issuance and authorizing transaction requests after verifying transaction information, the Company charges service fee equal to 0.3% to 0.5% of each transaction amount and recognizes revenue at the point when the prepaid cards issued by merchant customers are used by their end user card holders. For the years ended December 31, 2023, 2022 and 2021, the Company earned $146,554, $161,372 and $928,565 revenue from providing technology consulting and support service revenue to customers, respectively. |
Income taxes | (n) Income taxes The Company accounts for income taxes under ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. An uncertain tax position is recognized only if it is “more likely than not” that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes have been incurred during the years ended December 31, 2023, 2022 and 2021. The Company does not believe that there was any uncertain tax provision on December 31, 2023, 2022 and 2021. The Company’s subsidiary and VIEs in China are subject to the income tax laws of the PRC. No significant income was generated outside the PRC for the fiscal years ended December 31, 2023, 2022 and 2021. As of December 31, 2023, all of the tax returns of the Company’s PRC subsidiary and VIEs remain available for statutory examination by PRC tax authorities. |
Value added tax (“VAT”) | (o) Value added tax (“VAT”) The Company is a general taxpayer and is subject to applicable VAT tax rate of 6%. VAT is reported as a deduction to revenue when incurred. Entities that are VAT general taxpayers are allowed to offset qualified input VAT tax paid to suppliers against their output VAT liabilities. |
Earnings per Share | (p) Earnings per Share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding for the period. Diluted 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. As of December 31, 2023 and 2022, there were no dilutive shares. |
Statutory reserve | (q) Statutory reserve In accordance with the Company Laws of the PRC, the PRC Entities registered as PRC domestic companies must make appropriations from its after-tax profit as determined under the PRC GAAP to non-distributable reserve funds including a statutory surplus fund and a discretionary surplus fund. The appropriation to the statutory surplus fund must be at least 10% of the after-tax profits as determined in accordance with the legal requirements in the PRC. Appropriation is not required if the surplus fund has reached 50% of the registered capital of the respective company. Appropriation to the discretionary surplus fund is made at the discretion of the respective company. The use of the statutory reserves are restricted to the off-setting of losses or increasing capital of the respective company. All these reserves are not allowed to be transferred to their investors in terms of cash dividends, loans or advances, nor can they be distributed except under liquidation. |
Comprehensive income | (r) Comprehensive income Comprehensive income consists of two components, net income and other comprehensive income. The foreign currency translation gain or loss resulting from translation of the financial statements expressed in RMB to US$ is reported in other comprehensive income in the Consolidated Statements of Comprehensive Operations and Other Comprehensive Income (Loss) . |
Statement of Cash Flows | (s) Statement of Cash Flows In accordance with ASC 230, “Statement of Cash Flows”, cash flows from the Company’s operations are formulated based upon the local currencies using the average exchange rate in the period. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. |
Related parties and transactions | (t) Related parties and transactions The Company identifies related parties, and accounts for, discloses related party transactions in accordance with ASC 850, “Related Party Disclosures” and other relevant ASC standards. Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Companies are also considered to be related if they are subject to common control or common significant influence. Transactions between related parties commonly occurring in the normal course of business are considered to be related party transactions. Transactions between related parties are also considered to be related party transactions even though they may not be given accounting recognition. While ASC does not provide accounting or measurement guidance for such transactions, it nonetheless requires their disclosure. |
Right-of-use assets, net | (u) Right-of-use assets, net In February 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), which is effective for annual reporting periods (including interim periods) beginning after December 15, 2018, and early adoption is permitted. The Company, through its subsidiary, leases its offices, which are classified as operating leases in accordance with Topic 842. Operating leases are required to record in the balance sheet as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. The Company has elected the package of practical expedients, which allows the Company 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 Company elected the short-term lease exemption as the lease terms are 12 months or less. At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange of a consideration. To assess whether a contract is or contains a lease, the Company assesses whether the contract involves the use of an identified asset, whether it has the right to obtain substantially all the economic benefits from the use of the asset and whether it has the right to control the use of the asset. The right-of-use assets and related lease liabilities are recognized at the lease commencement date. The Company recognizes operating lease expenses on a straight-line basis over the lease term and had no finance leases for any of the periods stated herein. The right-of-use of asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and less any lease incentive received. All right-of-use assets are reviewed for impairment annually. No impairment for right-of-use lease assets as of December 31, 2023 and 2022. |
Accrued expenses and other current liabilities | (v) Accrued expenses and other current liabilities Accrued expenses and other current liabilities include employee compensation payable, taxes payable and other payables. employee compensation payable refers to the salary, social security, provident fund and bonus payable to the Company’s employees before the end of the current fiscal year. taxes payable refers to the composition of VAT and surtax payable under PRC tax before the end of the fiscal year. Other payables mainly deposit, service fees, etc. |
Long-term investments | (w) Long-term investments Beginning on January 1, 2018, the Group’s equity investments without readily determinable fair values, which 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 (“NAV practical expedient”), and over which the Group does not have the ability to exercise significant influence through the investments in common stock or in substance common stock, are accounted for under the measurement alternative upon the adoption of ASU 2016-01 (the “Measurement Alternative”). Under the Measurement Alternative, the carrying value is measured 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. All gains and losses on these investments, realized and unrealized, are recognized in the consolidated statements of operations and comprehensive income/(loss). The Group makes assessment of whether an investment is impaired based on performance and financial position of the investee as well as other evidence of market value at each reporting date. Such assessment includes, but is not limited to, reviewing the investee’s cash position, recent financing, as well as the financial and business performance. The Group recognizes an impairment loss equal to the difference between the carrying value and fair value in the consolidated statements of operations and comprehensive income/(loss) if any. The investment was accounted for under the cost method as the Group had no significant influence over the investee. An impairment charge is recorded when the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than-temporary. As of December 31, 2023, impairment loss of short-term investments was nil |
Prepaid expenses and other current assets | (x) Prepaid expenses and other current assets Prepaid expenses and other current assets consist primarily of Advance to suppliers, Other receivable and VAT tax recoverable. (i) Advance to suppliers represents balance paid to vendors for certain services that have not been completed. These advances are interest free, unsecured and short-term in nature and are reviewed periodically to determine whether their carrying value has become impaired. As of December 31, 2023 and 2022, there was no allowance recorded as the Company considers all of the advance to suppliers balance fully realizable. (ii) Other receivable primarily includes advances to employees for business development and security deposits paid for third-party payment platforms. This primarily represents a deposit paid by the Company to commission the acquisition of the e-commerce technology services business. As of December 31, 2023 and 2022, there was no allowance recorded as the Company considers all of the other receivable balance fully collectible. (iii) VAT tax recoverable represents the amount that is overpaid by the Company before the VAT tax invoices received. Such amount can be used to offset future VAT tax liability. |
Recent accounting pronouncements | ( V Recent accounting pronouncements In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08), which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The new amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The amendments should be applied prospectively to business combinations occurring on or after the effective date of the amendments, with early adoption permitted. The Company adopted this update in the March 1, 2023 and the adoption did not have a material impact to the Company’s consolidated financial statements. In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”, which clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. This guidance also requires certain disclosures for equity securities subject to contractual sale restrictions. The new guidance is required to be applied prospectively with any adjustments from the adoption of the amendments recognized in earnings and disclosed on the date of adoption. This guidance is effective for the Company for the year ending March 31, 2025 and interim reporting periods during the year ending March 31, 2025. Early adoption is permitted. The Company does not expect that the adoption of this guidance will have a material impact on the financial position, results of operations and cash flows. In July 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in ASU 2023-07 improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in ASU 2023-07 improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The adoption of this guidance did not have a material impact on its financial position, results of operations and cash flows. Other accounting standards that have been issued by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Group does not discuss recent standards that are not anticipated to have an impact on or are unrelated to its consolidated financial condition, results of operations, cash flows or disclosures. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Principal Activities [Abstract] | |
Schedule of Consolidated Financial Statements of the Company | As of December 31, 2023, the consolidated financial statements of the Company include the following entities: Entity Date of Place of Percentage of Principal activities Sentage Holdings Inc. (“Sentage Holdings”) September 16, 2019 Cayman Islands Parent, 100% Investment holding Sentage Hongkong Limited (“Sentage HK”) September 25, 2019 Hong Kong Investment holding Shanghai Santeng Technology Co., Ltd. (“Sentage WFOE”) December 17, 2019 Shanghai, PRC WFOE, Consultancy and information technology support Daxin Wealth Investment Management (Shanghai) Co., Ltd. (“Daxin Wealth”) August 13, 2014 Shanghai, PRC Consumer loan repayment and collection management services; and loan recommendation services to assist borrowers to obtain loans from various financial institutions services Daxin Zhuohui Financial Information Services (Shanghai) Co., Ltd. (“Daxin Zhuohui”) January 9, 2015 Shanghai, PRC Consumer loan repayment and collection management services; and loan recommendation services to assist borrowers to obtain loans from various financial institutions services Qingdao Buytop Payment Services Co., Ltd. (“Qingdao Buytop”) August 4, 2009 Qingdao,Shandong,PRC VIE Prepaid payment network services Zhenyi Information Technology (Shanghai) Co., Ltd. (“Zhenyi”) August 29, 2017 Shanghai, PRC VIE Provide technology and system development and support |
Schedule of Consolidated Balance Sheets | The table sets forth the assets and liabilities of the VIEs included in the Company’s consolidated balance sheets: As of December 31, 2022 2023 USD USD ASSETS Current assets Cash and cash equivalents 20,020 63,002 Restricted cash 23,089 26,127 Accounts receivable, net 433,510 284,628 Prepaid expenses and other current assets 966,260 1,007,922 Total current assets 1,442,879 1,381,679 Non-current assets Plant and equipment, net 53,023 64,472 Intangible assets, net 89,475 66,859 Deferred tax assets 12,686 12,324 Total non-current assets 155,184 143,655 Total assets 1,598,063 1,525,334 Current liabilities Accounts payable 8,647 5,985 Accrued expenses and other current liabilities 1,431,818 1,848,687 Total current liabilities 1,440,465 1,854,672 Non-current liability Due to a related party, non-current 464,709 764,094 Total non-current liability 464,709 764,094 Total liabilities 1,905,174 2,618,766 Years ended December 31, 2021 2022 2023 USD USD USD Total revenues 2,262,449 161,372 146,554 Net Income (loss) 692,774 (960,506 ) (797,223 ) Years ended December 31, 2021 2022 2023 USD USD USD Net cash (used in) provided by operating activities 1,433,255 (371,005 ) (254,262 ) Net cash used in investing activities (19,977 ) (34,346 ) (23,433 ) Net cash provided by (used in) financing activities (959,420 ) (156,311 ) 299,385 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives | The estimated useful lives are presented below. Office equipment and furniture 3-5 years Transportation vehicles 3-5 years |
Schedule of the Currency Exchange Rates | The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: As of December 31, 2022 2023 Year-end spot rate US$1=RMB 6.8972 US$1=RMB 7.0999 Average rate US$1=RMB 6.7290 US$1=RMB 7.0809 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | Cash and cash equivalents, consist of the following: As of December 31, 2022 2023 USD USD Cash at bank $ 3,805,103 $ 2,262,851 Cash on hand 32 30 Total $ 3,805,135 $ 2,262,881 |
Schedule of Carrying Amounts of the Company’s Bank and Cash Balances | The carrying amounts of the Group’s bank and cash balances are denominated in the following currencies: As of December 31, 2022 2023 USD USD RMB $ 139,688 $ 63,241 USD 3,665,447 2,199,640 Total $ 3,805,135 $ 2,262,881 |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounts receivable, net [Abstract] | |
Schedule of Accounts Receivable, Net | Accounts receivable, net, consist of the following: As of December 31, 2022 2023 USD USD Accounts receivable associated with prepaid payment network services 492,954 478,880 Less: Allowance for doubtful debts (59,444 ) (194,252 ) Accounts receivable, net $ 433,510 $ 284,628 |
Schedule of Allowance for Doubtful Accounts | Allowance for doubtful accounts movement: As of December 31, 2022 2023 Beginning balance $ 54,896 $ 59,444 Additions 4,548 134,808 Ending balance $ 59,444 $ 194,252 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid expenses and other current assets [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | The prepaid expenses and other current assets consist of the following: As of December 31, 2022 2023 USD USD Prepaid expenses and other current assets Advance to suppliers (i) $ 48,710 $ 26,630 Other receivable, net (ii) 4,523,688 9,085,238 Value-added Tax (“VAT”) recoverable (iii) 7,248 7,041 Total $ 4,579,646 $ 9,118,909 (i) Advance to suppliers represents balance paid to vendors for certain services that have not been completed. These advances are interest free, unsecured and short-term in nature and are reviewed periodically to determine whether their carrying value has become impaired. As of December 31, 2023 and 2022, there was no allowance recorded as the Company considers all of the advance to suppliers balance fully realizable. (ii) Other receivable primarily includes advances to employees for business development and security deposits paid for third-party payment platforms. This primarily represents a deposit paid by the Company to commission the acquisition of the e-commerce technology services business. As of December 31, 2023 and 2022, there was no allowance recorded as the Company considers all of the other receivable balance fully collectible. (iii) VAT tax recoverable represents the amount that is overpaid by the Company before the VAT tax invoices received. Such amount can be used to offset future VAT tax liability. |
Plant and Equipment, Net (Table
Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Plant and Equipment, Net [Abstract] | |
Schedule of Plant and Equipment | Plant and equipment consists of the following: As of December 31, 2022 2023 USD USD Cost: Office equipment and furniture $ 363,991 $ 377,032 Transportation vehicles 57,373 55,735 Total cost $ 421,364 $ 432,767 Less: Accumulated depreciation (368,341 ) (368,295 ) Plant and equipment, net $ 53,023 $ 64,472 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets, Net [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net, consist of the following: As of December 31, 2022 2023 USD USD Software $ 457,640 $ 444,574 Total cost $ 457,640 $ 444,574 Less: Accumulated amortization (368,165 ) (377,715 ) Intangible assets, net $ 89,475 $ 66,859 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Operating leases [Abstract] | |
Schedule of Consolidated Balance Sheets | The following table presents balances reported in the consolidated balance sheets related to the Company’s leases: As of December 31, 2022 2023 USD USD Right-of-use asset, net $ 162,270 $ 72,939 Lease liabilities, current 87,129 72,230 Lease liabilities, non-current 74,384 - Total operating lease liabilities $ 161,513 $ 72,230 |
Schedule of Components of Lease Expenses | The components of lease expenses were as follows: For the years ended 2022 2023 Lease cost Amortization of right-of-use assets $ 14,752 $ 84,108 Interest of operating lease liabilities 1,342 5,508 Total $ 16,094 $ 89,616 |
Schedule of Undiscounted Cash Flows | The following table reconciles the undiscounted cash flows of the Group leases as of December 31, 2023 to the present value of its operating lease payments: For the year ending December 31 USD 2024 73,667 Total undiscounted operating lease payments 73,667 Less: imputed interest (1,437 ) Present value of operating lease liabilities 72,230 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax [Abstract] | |
Schedule of Income Tax Expense | Income tax expense consists of the following: Year ended December 31, 2021 2022 2023 USD USD USD Current income tax expense $ 257,344 $ - $ - Total $ 257,344 $ - $ - |
Schedule of Statutory Rates to the Company’s Effective Tax Rate | The following table reconciles the PRC statutory rates to the Company’s effective tax rate for the years ended December 31, 2023, 2022 and 2021: Year ended December 31, 2021 2022 2023 USD USD USD China Income tax statutory rate 25.0 % (25.0 )% (25.0 )% Nondeductible expenses-permanent difference 0.1 % 0.1 % 0.1 % Change in valuation allowance 6.5 % 24.9 % 24.9 % Effective tax rate 31.6 % - % - |
Schedule of Deferred Tax Assets | The Company’s deferred tax assets are comprised of the following: As of December 31, 2022 2023 USD USD Deferred tax assets Deferred tax assets derived from net operating loss (“NOL”) carry forwards and deferred revenue $ 650,601 $ 12,324 Total gross deferred tax assets 650,601 12,324 Valuation allowance on deferred tax assets (637,915 ) - Deferred tax assets, net of valuation allowance $ 12,686 $ 12,324 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Schedule of Accrued Expenses and Other Payables | Accrued expenses and other payables consist of the following: As of December 31, 2022 2023 USD USD Accrued expenses and other current liabilities Deposits received from customers $ 20,592 $ 23,410 Accrued expenses 36,883 11,227 VAT and other taxes payable 200,342 192,428 Payroll payable 51,184 29,730 Total $ 309,001 $ 256,795 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related party transactions [Abstract] | |
Schedule of Due to a Related Party | Due to a related party consists of the following: As of December 31, Name Related party relationship 2022 2023 USD USD Qiaoling Lu CEO and controlling shareholder of the Company $ 4,709 $ 344,235 Total due to a related party $ 4,709 $ 344,235 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitment and Contingencies [Abstract] | |
Schedule of Contractual Obligations | The following table sets forth our contractual obligations as of December 31, 2023 : Year ended December 31, Total 2024 USD USD Operating lease commitments for Lease expense under lease agreements $ 73,667 73,667 Operating lease commitments for property management expenses under lease agreements 9,130 9,130 |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment reporting [Abstract] | |
Schedule of Segment | The following tables present summary information by segment for the years ended December 31, 2023, 2022 and 2021, respectively: Year ended December 31, 2021 Consumer loan repayment and collection management services Loan recommendation services Prepaid payment network services Others Total Revenue 156,062 928,565 1,177,822 - 2,262,449 Cost of revenue and related tax - - 34,556 - 34,556 Operating expenses 508,772 20,717 201,483 2,275,887 3,006,859 Income (loss) from operations (352,710 ) 907,848 941,783 (2,275,887 ) (778,966 ) Income tax expense 14,785 109,732 132,827 - 257,344 Net income (loss) (367,692 ) 798,054 754,814 (2,278,417 ) (1,093,241 ) Depreciation and amortization 1,347 9,997 51,627 - 62,971 Capital expenditure - - 6,722 - 6,722 Total assets (3,715,787 ) 4,011,568 1,629,846 $ 15,441,081 17,366,708 Year ended December 31, 2022 Consumer loan repayment and collection management services Loan recommendation services Prepaid payment network services Others Total Revenue - - 161,372 - 161,372 Cost of revenue and related tax - - 17,833 - 17,833 Operating expenses - 244,629 279,717 2,190,200 2,714,546 Loss from operations - (244,629 ) (136,178 ) (2,190,200 ) (2,571,007 ) Net loss 112 (244,799 ) (144,833 ) (2,172,387 ) (2,561,907 ) Depreciation and amortization - - 42,676 14,752 57,428 Capital expenditure - - 34,346 - 34,346 Total assets 8,328 51,321 1,536,973 13,062,212 14,658,834 Year ended December 31, 2023 Consumer loan repayment and collection management services Loan recommendation services Prepaid payment network services Others Total Revenue - - 146,554 - 146,554 Cost of revenue and related tax - - 12,597 - 12,597 Operating expenses 35,950 7,050 263,315 1,591,197 1,897,512 Loss from operations (35,950 ) (7,050 ) (129,358 ) (1,591,197 ) (1,763,555 ) Net loss (36,020 ) (7,084 ) (265,830 ) (1,594,343 ) (1,903,277 ) Depreciation and amortization - - 21,534 84,108 105,642 Capital expenditure - - 23,433 - 23,433 Total assets 36,079 1,054 1,483,926 11,388,080 12,909,139 |
Organization and Principal Ac_3
Organization and Principal Activities (Details) | Sep. 25, 2019 |
Sentage Hongkong Limited [Member] | |
Organization and Principal Activities (Details) [Line Items] | |
Equity interests percentage | 100% |
Organization and Principal Ac_4
Organization and Principal Activities (Details) - Schedule of Consolidated Financial Statements of the Company | 12 Months Ended |
Dec. 31, 2023 | |
Sentage Holdings Inc. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporatio | September 16, 2019 |
Place of incorporation | Cayman Islands |
Percentage of direct or indirect economic ownership | Parent, 100% |
Principal activities | Investment holding |
Sentage Hongkong Limited [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporatio | September 25, 2019 |
Place of incorporation | Hong Kong |
Percentage of direct or indirect economic ownership | 100% |
Principal activities | Investment holding |
Shanghai Santeng Technology Co., Ltd. (“Sentage WFOE”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporatio | December 17, 2019 |
Place of incorporation | Shanghai, PRC |
Percentage of direct or indirect economic ownership | 100% |
Principal activities | WFOE, Consultancy and information technology support |
Daxin Wealth Investment Management (Shanghai) Co., Ltd. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporatio | August 13, 2014 |
Place of incorporation | Shanghai, PRC |
Percentage of direct or indirect economic ownership | VIE |
Principal activities | Consumer loan repayment and collection management services; and loan recommendation services to assist borrowers to obtain loans from various financial institutions services |
Daxin Zhuohui Financial Information Services (Shanghai) Co., Ltd. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporatio | January 9, 2015 |
Place of incorporation | Shanghai, PRC |
Percentage of direct or indirect economic ownership | VIE |
Principal activities | Consumer loan repayment and collection management services; and loan recommendation services to assist borrowers to obtain loans from various financial institutions services |
Qingdao Buytop Payment Services Co., Ltd. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporatio | August 4, 2009 |
Place of incorporation | Qingdao,Shandong,PRC |
Percentage of direct or indirect economic ownership | VIE |
Principal activities | Prepaid payment network services |
Zhenyi Information Technology (Shanghai) Co., Ltd. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporatio | August 29, 2017 |
Place of incorporation | Shanghai, PRC |
Percentage of direct or indirect economic ownership | VIE |
Principal activities | Provide technology and system development and support |
Organization and Principal Ac_5
Organization and Principal Activities (Details) - Schedule of Consolidated Balance Sheets - Variable Interest Entity, Primary Beneficiary [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current assets | |||
Cash and cash equivalents | $ 63,002 | $ 20,020 | |
Restricted cash | 26,127 | 23,089 | |
Accounts receivable, net | 284,628 | 433,510 | |
Prepaid expenses and other current assets | 1,007,922 | 966,260 | |
Total current assets | 1,381,679 | 1,442,879 | |
Non-current assets | |||
Plant and equipment, net | 64,472 | 53,023 | |
Intangible assets, net | 66,859 | 89,475 | |
Deferred tax assets | 12,324 | 12,686 | |
Total non-current assets | 143,655 | 155,184 | |
Total assets | 1,525,334 | 1,598,063 | |
Current liabilities | |||
Accounts payable | 5,985 | 8,647 | |
Accrued expenses and other current liabilities | 1,848,687 | 1,431,818 | |
Total current liabilities | 1,854,672 | 1,440,465 | |
Non-current liability | |||
Due to a related party, non-current | 764,094 | 464,709 | |
Total non-current liabilities | 764,094 | 464,709 | |
Total liabilities | 2,618,766 | 1,905,174 | |
Total revenues | 146,554 | 161,372 | $ 2,262,449 |
Net Income | (797,223) | (960,506) | 692,774 |
Net cash (used in) provided by operating activities | (254,262) | (371,005) | 1,433,255 |
Net cash used in investing activities | (23,433) | (34,346) | (19,977) |
Net cash provided by (used in) financing activities | $ 299,385 | $ (156,311) | $ (959,420) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |||||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2023 CNY (¥) | |
Summary of Significant Accounting Policies [Line Items] | ||||||
Balance sheet accounts | ¥ 7.0999 | $ 1 | ¥ 6.8972 | |||
Average translation amount | ¥ 7.0809 | 1 | ¥ 6.729 | |||
Security deposit, percentage | 1% | 1% | ||||
Allowance for doubtful debt | $ 133,805 | 59,444 | ||||
Estimated useful lives, term | 10 years | 10 years | ||||
Revenue | $ 146,554 | 161,372 | $ 2,262,449 | |||
Tax benefit percentage | 50% | 50% | ||||
Value added tax rate | 6% | 6% | ||||
Tax profit | 10% | 10% | ||||
Surplus fund | 50% | 50% | ||||
Impairment loss of short-term investments | ||||||
Loan recommendation service fees [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Revenue | 1,177,822 | |||||
Minimum [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Consumer loan | $ 4,342 | ¥ 30,000 | ||||
Loan term ranges | 1 year | 1 year | ||||
Commission percentage | 1.50% | 1.50% | ||||
Recognizes revenue, percentage | 1.75% | 1.75% | ||||
Maximum [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Consumer loan | $ 11,579 | ¥ 80,000 | ||||
Loan term ranges | 4 years | 4 years | ||||
Commission percentage | 2% | 2% | ||||
Recognizes revenue, percentage | 3% | 3% | ||||
VIE subsidiaries [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Revenue | $ 146,554 | $ 161,372 | $ 928,565 | |||
VIE subsidiaries [Member] | Minimum [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Recognizes revenue, percentage | 0.30% | 0.30% | ||||
VIE subsidiaries [Member] | Maximum [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Recognizes revenue, percentage | 0.50% | 0.50% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives | Dec. 31, 2023 |
Office equipment and furniture [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives [Line Items] | |
Estimated useful | 3 years |
Office equipment and furniture [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives [Line Items] | |
Estimated useful | 5 years |
Transportation vehicles [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives [Line Items] | |
Estimated useful | 3 years |
Transportation vehicles [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives [Line Items] | |
Estimated useful | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of the Currency Exchange Rates | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
USD [Member] | ||
Schedule of the Currency Exchange Rates [Abstract] | ||
Year-end spot rate | 1 | 1 |
Average rate | 1 | 1 |
RMB [Member] | ||
Schedule of the Currency Exchange Rates [Abstract] | ||
Year-end spot rate | 7.0999 | 6.8972 |
Average rate | 7.0809 | 6.729 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - Schedule of Cash and Cash Equivalents - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Cash and Cash Equivalents [Abstract] | ||
Cash at bank | $ 2,262,851 | $ 3,805,103 |
Cash on hand | 30 | 32 |
Total | $ 2,262,881 | $ 3,805,135 |
Cash and Cash Equivalents (De_2
Cash and Cash Equivalents (Details) - Schedule of Carrying Amounts of the Company’s Bank and Cash Balances - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Carrying Amounts of the Company’s Bank and Cash Balances [Line Items] | ||
Bank and Cash balances | $ 2,262,881 | $ 3,805,135 |
RMB [Member] | ||
Schedule of Carrying Amounts of the Company’s Bank and Cash Balances [Line Items] | ||
Bank and Cash balances | 63,241 | 139,688 |
USD [Member] | ||
Schedule of Carrying Amounts of the Company’s Bank and Cash Balances [Line Items] | ||
Bank and Cash balances | $ 2,199,640 | $ 3,665,447 |
Accounts receivable, net (Detai
Accounts receivable, net (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts receivable, net [Abstract] | ||
Accounts receivable | $ 284,628 | $ 433,510 |
Allowance for doubtful accounts | $ 194,252 | $ 59,444 |
Accounts receivable, net (Det_2
Accounts receivable, net (Details) - Schedule of Accounts Receivable, Net - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule Of Accounts Receivable Net Abstract | ||
Accounts receivable associated with prepaid payment network services | $ 478,880 | $ 492,954 |
Less: Allowance for doubtful debts | (194,252) | (59,444) |
Accounts receivable, net | $ 284,628 | $ 433,510 |
Accounts receivable, net (Det_3
Accounts receivable, net (Details) - Schedule of Allowance for Doubtful Accounts - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Allowance For Doubtful Accounts Abstract | |||
Beginning balance | $ 59,444 | $ 54,896 | |
Additions | 134,808 | 4,548 | $ 54,896 |
Ending balance | $ 194,252 | $ 59,444 | $ 54,896 |
Loan Receivable (Details)
Loan Receivable (Details) - USD ($) | 12 Months Ended | |||
Jul. 08, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Loan Receivable [Abstract] | ||||
Principal amount | $ 5,500,000 | $ 5,500,000 | ||
Principal rate percentage | 3% | |||
Outstanding loan receivable | $ 5,500,000 | |||
Balance of loan receivable |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - Schedule of Prepaid Expenses and Other Current Assets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | |
Prepaid expenses and other current assets | |||
Advance to suppliers | [1] | $ 26,630 | $ 48,710 |
Other receivable, net | [2] | 9,085,238 | 4,523,688 |
Value-added Tax (“VAT”) recoverable | [3] | 7,041 | 7,248 |
Total | $ 9,118,909 | $ 4,579,646 | |
[1] Advance to suppliers represents balance paid to vendors for certain services that have not been completed. These advances are interest free, unsecured and short-term in nature and are reviewed periodically to determine whether their carrying value has become impaired. As of December 31, 2023 and 2022, there was no allowance recorded as the Company considers all of the advance to suppliers balance fully realizable. Other receivable primarily includes advances to employees for business development and security deposits paid for third-party payment platforms. This primarily represents a deposit paid by the Company to commission the acquisition of the e-commerce technology services business. As of December 31, 2023 and 2022, there was no allowance recorded as the Company considers all of the other receivable balance fully collectible. VAT tax recoverable represents the amount that is overpaid by the Company before the VAT tax invoices received. Such amount can be used to offset future VAT tax liability. |
Plant and Equipment, Net (Detai
Plant and Equipment, Net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Plant and Equipment, Net [Abstract] | |||
Depreciation expense | $ 11,984 | $ 25,464 | $ 23,370 |
Plant and Equipment, Net (Det_2
Plant and Equipment, Net (Details) - Schedule of Plant and Equipment - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Cost: | ||
Total cost | $ 432,767 | $ 421,364 |
Less: Accumulated depreciation | (368,295) | (368,341) |
Plant and equipment, net | 64,472 | 53,023 |
Office equipment and furniture [Member] | ||
Cost: | ||
Total cost | 377,032 | 363,991 |
Transportation vehicles [Member] | ||
Cost: | ||
Total cost | $ 55,735 | $ 57,373 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible Assets, Net [Abstract] | |||
Amortization expense | $ 9,550 | $ 17,212 | $ 39,601 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of Intangible Assets, Net - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Intangible Assets Net [Abstract] | ||
Intangible assets, gross | $ 444,574 | $ 457,640 |
Less: Accumulated amortization | (377,715) | (368,165) |
Intangible assets, net | 66,859 | 89,475 |
Software [Member] | ||
Schedule of Intangible Assets Net [Abstract] | ||
Intangible assets, gross | $ 444,574 | $ 457,640 |
Long-Term Investments (Details)
Long-Term Investments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 15, 2023 | Dec. 31, 2022 | |
Long-Term Investments (Details) [Line Items] | |||
Investment amount | $ 1,000,000 | ||
Investment paid | 1,000,000 | ||
Impairment loss of short-term investments | |||
Kangguozhen International Holdings Limited [Member] | |||
Long-Term Investments (Details) [Line Items] | |||
Investment amount | $ 10,000,000 | ||
Investment percentage | 11.11% |
Operating Leases (Details) - Sc
Operating Leases (Details) - Schedule of Consolidated Balance Sheets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Consolidated Balance Sheets [Abstract] | ||
Right-of-use asset, net | $ 72,939 | $ 162,270 |
Lease liabilities, current | 72,230 | 87,129 |
Lease liabilities, non-current | 74,384 | |
Total operating lease liabilities | $ 72,230 | $ 161,513 |
Operating Leases (Details) - _2
Operating Leases (Details) - Schedule of Components of Lease Expenses - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lease cost | |||
Amortization of right-of-use assets | $ 84,108 | $ 14,752 | |
Interest of operating lease liabilities | 5,508 | 1,342 | |
Total | $ 89,616 | $ 16,094 |
Operating Leases (Details) - _3
Operating Leases (Details) - Schedule of Undiscounted Cash Flows - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Undiscounted Cash Flows [Abstract] | ||
2024 | $ 73,667 | |
Total undiscounted operating lease payments | 73,667 | |
Less: imputed interest | (1,437) | |
Present value of operating lease liabilities | $ 72,230 | $ 161,513 |
Income Tax (Details)
Income Tax (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Mar. 16, 2007 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2016 | |
Income tax [Line Items] | |||||
Enterprise income tax rate, percentage | 25% | ||||
Income tax rate, percentage | 25% | ||||
Valuation allowance (in Dollars) | $ 637,915 | $ 1,200,000 | |||
Deferred tax assets balance (in Dollars) | $ 12,324 | $ 12,686 | |||
Hong Kong [Member] | |||||
Income tax [Line Items] | |||||
Profit taxes | 16.50% | 16.50% | 16.50% | ||
PRC [Member] | |||||
Income tax [Line Items] | |||||
Statutory income tax rate | 25% | 25% | |||
Withholding tax, percentage | 10% |
Income Tax (Details) - Schedule
Income Tax (Details) - Schedule of Income Tax Expense - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Income Tax Expense [Abstract] | |||
Current income tax expense | $ 257,344 | ||
Total | $ 257,344 |
Income Tax (Details) - Schedu_2
Income Tax (Details) - Schedule of Statutory Rates to the Company’s Effective Tax Rate | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Statutory Rates to the Company's Effective Tax Rate [Abstract] | |||
China Income tax statutory rate | (25.00%) | (25.00%) | 25% |
Nondeductible expenses-permanent difference | 0.10% | 0.10% | 0.10% |
Change in valuation allowance | 24.90% | 24.90% | 6.50% |
Effective tax rate | 31.60% |
Income Tax (Details) - Schedu_3
Income Tax (Details) - Schedule of Deferred Tax Assets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2016 |
Schedule of Deferred Tax Assets [Abstract] | |||
Deferred tax assets derived from net operating loss (“NOL”) carry forwards and deferred revenue | $ 12,324 | $ 650,601 | |
Total gross deferred tax assets | 12,324 | 650,601 | |
Valuation allowance on deferred tax assets | (637,915) | $ (1,200,000) | |
Deferred tax assets, net of valuation allowance | $ 12,324 | $ 12,686 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - Schedule of Accrued Expenses and Other Payables - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Accrued expenses and other current liabilities | ||
Deposits received from customers | $ 23,410 | $ 20,592 |
Accrued expenses | 11,227 | 36,883 |
VAT and other taxes payable | 192,428 | 200,342 |
Payroll payable | 29,730 | 51,184 |
Total | $ 256,795 | $ 309,001 |
Related party transactions (Det
Related party transactions (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Related Party [Member] | ||
Related party transactions (Details) [Line Items] | ||
Due to a related party | $ 344,235 | $ 4,709 |
Related party transactions (D_2
Related party transactions (Details) - Schedule of Due to a Related Party - Related Party [Member] - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Related Party Transaction [Line Items] | ||
Due to a related party | $ 344,235 | $ 4,709 |
Qiaoling Lu [Member] | ||
Related Party Transaction [Line Items] | ||
Due to a related party | $ 344,235 | $ 4,709 |
Concentrations (Details)
Concentrations (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Concentrations [Line Items] | |||
Cash deposit (in Dollars) | $ 2,262,851 | $ 3,805,103 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One Customer [Member] | |||
Concentrations [Line Items] | |||
Total revenue, percentage | 63.60% | 52.20% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | No Customers [Member] | |||
Concentrations [Line Items] | |||
Total revenue, percentage | 10% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Customer [Member] | |||
Concentrations [Line Items] | |||
Total revenue, percentage | 57.40% | 63.20% |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) | Dec. 07, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Aug. 10, 2022 | Sep. 02, 2020 | Sep. 16, 2019 | |
Shareholders’ Equity [Line Items] | |||||||
Shares authorized | 50,000,000 | 50,000 | |||||
Par value (in Dollars per share) | $ 0.005 | $ 0.001 | $ 1 | ||||
Ordinary shares, shares issued | 10,000,000 | 10,000 | |||||
Shares outstanding | 10,000,000 | 10,000 | |||||
Share price (in Dollars per share) | $ 1 | ||||||
Subdivide Shares Issued | 10,000 | ||||||
Shares, Outstanding | 10,000,000 | ||||||
Authorized share capital (in Dollars) | $ 1,000,000 | ||||||
Ordinary shares | 200,000,000 | ||||||
VIEs [Member] | |||||||
Shareholders’ Equity [Line Items] | |||||||
Restricted net assets (in Dollars) | $ 409,435 | ||||||
Common Class A [Member] | |||||||
Shareholders’ Equity [Line Items] | |||||||
Shares authorized | [1] | 180,000,000 | 180,000,000 | ||||
Par value (in Dollars per share) | [1] | $ 0.005 | $ 0.005 | ||||
Ordinary shares, shares issued | [1] | 2,805,325 | 2,805,325 | ||||
Shares outstanding | [1] | 2,805,325 | 2,805,325 | ||||
Common Stock, Value, Issued (in Dollars) | [1] | $ 14,027 | $ 14,027 | ||||
Common Class B [Member] | |||||||
Shareholders’ Equity [Line Items] | |||||||
Shares authorized | [1] | 20,000,000 | 20,000,000 | ||||
Par value (in Dollars per share) | [1] | $ 0.005 | $ 0.005 | ||||
Ordinary shares, shares issued | [1] | ||||||
Shares outstanding | [1] | ||||||
Common Stock, Value, Issued (in Dollars) | [1] | ||||||
Sentage Holdings Inc. [Member] | |||||||
Shareholders’ Equity [Line Items] | |||||||
Par value (in Dollars per share) | $ 0.005 | $ 0.005 | $ 0.001 | ||||
Ordinary shares, shares issued | 10,000,000 | ||||||
Shares outstanding | 10,000,000 | ||||||
Subdivide Shares Authorized | 50,000 | ||||||
Common Stock, Value, Issued (in Dollars) | $ 50,000 | ||||||
Authorized share capital (in Dollars) | $ 50,000 | ||||||
Ordinary shares | 10,000,000 | ||||||
Sentage Holdings Inc. [Member] | Sentage WFOE [Member] | |||||||
Shareholders’ Equity [Line Items] | |||||||
Restricted net assets (in Dollars) | $ 846,905 | ||||||
Sentage Holdings Inc. [Member] | Common Class A [Member] | |||||||
Shareholders’ Equity [Line Items] | |||||||
Par value (in Dollars per share) | $ 0.005 | ||||||
Sentage Holdings Inc. [Member] | Common Class B [Member] | |||||||
Shareholders’ Equity [Line Items] | |||||||
Par value (in Dollars per share) | $ 0.005 | ||||||
[1] Retrospectively restated for one-for-five reverse split with effective date of August 10, 2022. |
Commitment and Contingencies (D
Commitment and Contingencies (Details) - Schedule of Contractual Obligations - Variable Interest Entity, Primary Beneficiary [Member] | Dec. 31, 2023 USD ($) |
Lease expense [Member] | |
Commitment and Contingencies (Details) - Schedule of Contractual Obligations [Line Items] | |
Total | $ 73,667 |
2024 | 73,667 |
Property management expense [Member] | |
Commitment and Contingencies (Details) - Schedule of Contractual Obligations [Line Items] | |
Total | 9,130 |
2024 | $ 9,130 |
Segment reporting (Details) - S
Segment reporting (Details) - Schedule of Segment - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 146,554 | $ 161,372 | $ 2,262,449 |
Cost of revenue and related tax | 12,597 | 17,833 | 34,556 |
Operating expenses | 1,897,512 | 2,714,546 | 3,006,859 |
Income (loss) from operations | (1,763,555) | (2,571,007) | (778,966) |
Income tax expense | 257,344 | ||
Net loss | (1,903,277) | (2,561,907) | (1,093,241) |
Depreciation and amortization | 105,642 | 57,428 | 62,971 |
Capital expenditure | 23,433 | 34,346 | 6,722 |
Total assets | 12,909,139 | 14,658,834 | 17,366,708 |
Consumer loan repayment and collection management services [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 156,062 | ||
Cost of revenue and related tax | |||
Operating expenses | 35,950 | 508,772 | |
Income (loss) from operations | (35,950) | (352,710) | |
Income tax expense | 14,785 | ||
Net loss | (36,020) | 112 | (367,692) |
Depreciation and amortization | 1,347 | ||
Capital expenditure | |||
Total assets | 36,079 | 8,328 | (3,715,787) |
Loan recommendation services [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 928,565 | ||
Cost of revenue and related tax | |||
Operating expenses | 7,050 | 244,629 | 20,717 |
Income (loss) from operations | (7,050) | (244,629) | 907,848 |
Income tax expense | 109,732 | ||
Net loss | (7,084) | (244,799) | 798,054 |
Depreciation and amortization | 9,997 | ||
Capital expenditure | |||
Total assets | 1,054 | 51,321 | 4,011,568 |
Prepaid payment network services [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 146,554 | 161,372 | 1,177,822 |
Cost of revenue and related tax | 12,597 | 17,833 | 34,556 |
Operating expenses | 263,315 | 279,717 | 201,483 |
Income (loss) from operations | (129,358) | (136,178) | 941,783 |
Income tax expense | 132,827 | ||
Net loss | (265,830) | (144,833) | 754,814 |
Depreciation and amortization | 21,534 | 42,676 | 51,627 |
Capital expenditure | 23,433 | 34,346 | 6,722 |
Total assets | 1,483,926 | 1,536,973 | 1,629,846 |
Others [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | |||
Cost of revenue and related tax | |||
Operating expenses | 1,591,197 | 2,190,200 | 2,275,887 |
Income (loss) from operations | (1,591,197) | (2,190,200) | (2,275,887) |
Income tax expense | |||
Net loss | (1,594,343) | (2,172,387) | (2,278,417) |
Depreciation and amortization | 84,108 | 14,752 | |
Capital expenditure | |||
Total assets | $ 11,388,080 | $ 13,062,212 | $ 15,441,081 |