INCOME TAXES (Tables)
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12 Months Ended |
Dec. 31, 2022 |
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| INCOME TAXES |
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| Schedule of Components of Tax Benefit (Expense) |
| | | | | | | | | | | | Years ended December 31, | | | 2020 | | 2021 | | 2022 | Income (loss) before income tax | | | | | | | | | | PRC | | $ | 2,104,024 | | $ | 1,589,476 | | $ | 4,107,651 | Other jurisdictions | | | 214,999 | | | 5,799,396 | | | (6,738,601) | | | | | | | | | | | Total | | | 2,319,023 | | | 7,388,872 | | | (2,630,950) | | | | | | | | | | | Current tax expense | | | | | | | | | | PRC | | | (5,118) | | | (348,494) | | | (733,102) | Other jurisdictions | | | (441,495) | | | (66,754) | | | (466,887) | | | | | | | | | | | Subtotal | | | (446,613) | | | (415,248) | | | (1,199,989) | Deferred tax benefit (expense) | | | | | | | | | | PRC | | | — | | | — | | | (717,217) | Other jurisdictions | | | 283,577 | | | (359,164) | | | — | | | | | | | | | | | Subtotal | | | 283,577 | | | (359,164) | | | (717,217) | | | | | | | | | | | Total income tax expense | | $ | (163,036) | | $ | (774,412) | | $ | (1,917,206) |
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| Schedule of Principal Components of Deferred Income Tax Assets and Liabilities |
| | | | | | | | | At December 31, | | | 2021 | | 2022 | Deferred tax assets: | | | | | | | Accrued expenses | | $ | 13,772 | | $ | 44,496 | Net operating losses | | | 7,214,260 | | | 11,671,895 | Unrealized internal profit | | | 776,260 | | | 717,217 | Allowances for credit losses | | | 1,209,220 | | | 1,209,220 | Impairment loss of assets | | | 126,337 | | | 126,337 | Other | | | 133,409 | | | 80,613 | Total gross deferred tax assets | | | 9,473,258 | | | 13,849,778 | Valuation allowance on deferred tax assets | | | (8,696,997) | | | (13,849,778) | Net deferred tax assets | | $ | 776,261 | | $ | — | Deferred tax Liabilities: | | | | | | | Asset acquisitions | | | — | | | (3,573,146) | Deferred tax liabilities | | $ | — | | $ | (3,573,146) |
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| Schedule of Reconciliation Between the Applicable Statutory Income Tax Rate and the Company's Effective Tax Rate |
| | | | | | | | | | Years ended December 31, | | | | 2020 | | 2021 | | 2022 | | PRC applicable income tax rate | | 25 | % | 25 | % | 25 | % | Change in deferred tax valuation allowance | | (21) | % | (20) | % | (146) | % | Preferential tax rate(1) | | (42) | % | (16) | % | 30 | % | Tax effect of non-deductible expenses | | — | | — | | (15) | % | Effect of different tax rate of subsidiaries | | 39 | % | 17 | % | (27) | % | Non-taxable income | | — | | — | | 67 | % | Other | | 6 | % | 4 | % | (7) | % | Effective income tax rate | | 7 | % | 10 | % | (73) | % |
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| Schedule of Aggregate Amount and Per Share Effect of the Tax Holiday |
| | | | | | | | | | | | Years ended December 31, | | | 2020 | | 2021 | | 2022 | | | | | | | | | | | Preferential tax effect(1) | | $ | 975,859 | | $ | 1,160,939 | | $ | 797,235 |
| (1) | Certain solar power project entities are fully exempted from the PRC CIT for three years starting from the year in which such project generates revenue from the sale of electricity and is 50% exempted from PRC CIT for another three years. |
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