| Schedule of Provision for income taxes |
The provision for income taxes consisted of the following: | | | Year Ended December 31, | | | | 2016 | | 2015 | | | | | | | Current | | $ | - | | | $ | - | | | Deferred | | | 308,175 | | | | 60,439 | | | Total income tax expense | | $ | 308,175 | | | $ | 60,439 | |
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| Schedule of Reconciliation of income taxes calculated at the federal statutory rates to the provision for income taxes |
Following is a reconciliation of income taxes calculated at the federal statutory rates to the provision for income taxes: | | | Years Ended December 31, | | | | 2016 | | 2015 | | (Benefit) tax at statutory rate of 25% | | $ | (2,218,612 | ) | | $ | (3,832,536 | ) | | Effect of tax holiday | | | 837,089 | | | | 1,478,831 | | | Effect of change in tax rate from 15% to 25% | | | (8,094,456 | ) | | | — | | | Other, primarily the difference in U.S. tax rates | | | 7,903 | | | | 4,136 | | | Change in valuation allowance | | | 9,776,251 | | | | 2,410,008 | | | Income tax expense | | $ | 308,175 | | | $ | 60,439 | |
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| Schedule of Temporary differences which give rise to the deferred income tax assets and liability |
The temporary differences which give rise to the deferred income tax assets and liability are as follows: | | | December 31, | | | | 2016 | | 2015 | | Deferred income tax assets: | | | | | | | | | | Allowance for doubtful trade receivables | | $ | 3,916,124 | | | $ | 4,402,921 | | | Allowance for doubtful other receivables | | | 17,959 | | | | 11,160 | | | Inventory obsolescence reserve | | | 1,535,660 | | | | 1,262,564 | | | Expenses not deductible in current year | | | 1,008,350 | | | | 647,236 | | | Advances for intangible assets impairment | | | 793,624 | | | | — | | | PRC net operating loss carry forward | | | 12,660,410 | | | | 5,114,478 | | | U.S. net operating loss carry forward | | | 1,520,675 | | | | 1,360,213 | | | Total deferred income tax assets | | | 21,452,802 | | | | 12,798,572 | | | Valuation allowance | | | (21,452,802 | ) | | | (12,798,572 | ) | | Net deferred income tax asset | | $ | — | | | $ | — | | | Deferred income tax liability: | | | | | | | | | | Intangible assets | | $ | 572,349 | | | $ | 296,890 | |
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