Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Sep. 15, 2022 | |
Document Information Line Items | ||
Entity Registrant Name | JRSIS HEALTH CARE CORPORATION. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 58,366,569 | |
Amendment Flag | false | |
Entity Central Index Key | 0001597892 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-56013 | |
Entity Incorporation, State or Country Code | FL | |
Entity Tax Identification Number | 46-4562047 | |
Entity Address, Address Line One | 3/F Building A | |
Entity Address, Address Line Two | De Run YuanNo. 19 Chang Yi Road | |
Entity Address, Address Line Three | Chang Yi Road, Chang Ming ShuiWu Gui Shan | |
Entity Address, City or Town | Zhong Shan City | |
Entity Address, Postal Zip Code | 528458 | |
Entity Interactive Data Current | Yes | |
City Area Code | +86-760- | |
Entity Address, Country | CN | |
Local Phone Number | 88963658 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 37,659 | $ 29,847 |
Other receivables | 3,219 | |
Amount due from related parties | 13,649 | |
Deferred expenses | 900,036 | |
Current assets of discontinued operations | 13,836,084 | |
Total current assets | 954,563 | 13,865,931 |
Property and equipment, net | 44,518 | |
Right-of-use assets | 26,970 | |
Non-current assets of discontinued operations | 61,826,821 | |
Total assets | 1,026,051 | 75,692,752 |
Current Liabilities: | ||
Accounts payable | 8,000 | 66,000 |
Amount due to related parties | 1,456,919 | |
Other payable | 13 | |
Payroll payable | 1,583 | |
Lease obligations - current portion | 16,790 | |
Current liabilities of discontinued operations | 16,076,570 | |
Total current liabilities | 26,373 | 17,599,502 |
Warrant liabilities | 7 | |
Lease obligations | 10,180 | |
Non-current liabilities of discontinued operations | 24,991,063 | |
Total liabilities | 36,553 | 42,590,572 |
Shareholders’ equity | ||
Common stock; $0.001 par value, 100,000,000 shares authorized; 58,366,569 and 18,628,569 issued and outstanding at June 30, 2022 and December 31, 2021, respectively | 58,366 | 18,628 |
Additional Paid-in capital | 24,452,501 | 23,381,121 |
Accumulated deficits | (23,527,725) | (1,877,296) |
Other comprehensive income | 6,356 | 545,449 |
Total shareholders’ equity | 989,498 | 22,067,902 |
Non-controlling interest | 11,034,278 | |
Total shareholders’ equity | 989,498 | 33,102,180 |
Total liabilities and shareholders’ equity | $ 1,026,051 | $ 75,692,752 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 58,366,569 | 18,628,569 |
Common stock, shares outstanding | 58,366,569 | 18,628,569 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Net Sales | ||||
Operating costs and expenses: | ||||
Salaries and benefits | 4,421 | 4,421 | ||
Stock-based compensation | 81,822 | 81,822 | ||
Office supplies | 25,430 | 4,096 | 39,756 | 5,192 |
Rentals and leases | 6,112 | 6,112 | ||
Professional fee | 8,000 | 11,237 | 16,000 | 20,145 |
Warrant expense | (13,818) | (7) | 6,713 | |
Depreciation | 1,505 | 1,505 | ||
Total operating costs and expenses | 127,290 | 1,515 | 149,609 | 32,050 |
Loss from operations before other income and income taxes | (127,290) | (1,515) | (149,609) | (32,050) |
Other income | ||||
Income(loss) from operations before income taxes | (127,290) | (1,515) | (149,609) | (32,050) |
Income tax | ||||
Income(loss) from continued operations | (127,290) | (1,515) | (149,609) | (32,050) |
Net income (loss) from discontinued operations | (36,054,805) | 1,024,602 | (33,393,670) | 1,551,059 |
Net income (loss) | (36,182,095) | 1,023,087 | (33,543,279) | 1,519,009 |
Comprehensive income: | ||||
Foreign currency translation adjustment from continued operations | 6,356 | 2,688 | 17,557 | 44,872 |
Foreign currency translation adjustment from discontinued operations | 104,913 | 469,167 | 301,922 | 353,234 |
Comprehensive income (loss) | $ (36,070,826) | $ 1,494,942 | $ (33,223,800) | $ 1,917,115 |
Net income(loss) from continuing operations per share of common stock | ||||
Basic earnings per share (in Dollars per share) | $ (0.0029) | $ (0.0001) | $ (0.0048) | $ (0.0018) |
Diluted earnings per share (in Dollars per share) | (0.0029) | (0.0001) | (0.0048) | (0.0017) |
Net income(loss) from discontinuing operations per share of common stock | ||||
Basic earnings per share (in Dollars per share) | (0.8218) | 0.056 | (1.0686) | 0.0849 |
Diluted earnings per share (in Dollars per share) | (0.8218) | 0.0554 | (1.0686) | 0.0839 |
Net income (loss) per share of common stock | ||||
Basic earnings per share (in Dollars per share) | (0.8247) | 0.0559 | (1.0734) | 0.0831 |
Diluted earnings per share (in Dollars per share) | $ (0.8247) | $ 0.0553 | $ (1.0734) | $ 0.0822 |
Weighted average number of shares outstanding (Basic) (in Shares) | 43,872,480 | 18,297,296 | 31,250,525 | 18,271,814 |
Weighted average number of shares outstanding (Diluted) (in Shares) | 43,872,480 | 18,507,296 | 31,250,525 | 18,481,814 |
Consolidated Statement of Share
Consolidated Statement of Sharesholders’ Equity - USD ($) | Total | Common stock | Retained Earnings | Other comprehensive income | Additional paid-in capital | Non- Controlling Interest |
Balance at Dec. 31, 2020 | $ 28,840,425 | $ 18,246 | $ (4,109,557) | $ (111,016) | $ 23,240,075 | $ 9,802,677 |
Balance (in Shares) at Dec. 31, 2020 | 18,246,331 | |||||
Net income | 495,922 | 327,684 | 168,238 | |||
Foreign currency translation adjustment | (73,749) | (51,159) | (22,590) | |||
Balance at Mar. 31, 2021 | 29,262,598 | $ 18,246 | (3,781,873) | (162,175) | 23,240,075 | 9,948,325 |
Balance (in Shares) at Mar. 31, 2021 | 18,246,331 | |||||
Net income | 1,023,087 | 666,350 | 356,737 | |||
Shares issued | 141,428 | $ 382 | 141,046 | |||
Shares issued (in Shares) | 382,238 | |||||
Foreign currency translation adjustment | 471,855 | 331,105 | 140,750 | |||
Balance at Jun. 30, 2021 | 30,898,968 | $ 18,628 | (3,115,523) | 168,930 | 23,381,121 | 10,445,812 |
Balance (in Shares) at Jun. 30, 2021 | 18,628,569 | |||||
Balance at Dec. 31, 2021 | 33,102,180 | $ 18,628 | (1,877,296) | 545,449 | 23,381,121 | 11,034,278 |
Balance (in Shares) at Dec. 31, 2021 | 18,628,569 | |||||
Net income | 2,638,816 | 1,847,171 | 791,645 | |||
Foreign currency translation adjustment | 208,210 | 149,107 | 59,103 | |||
Balance at Mar. 31, 2022 | 35,949,206 | $ 18,628 | (30,125) | 694,556 | 23,381,121 | 11,885,026 |
Balance (in Shares) at Mar. 31, 2022 | 18,628,569 | |||||
Balance at Dec. 31, 2021 | 33,102,180 | $ 18,628 | (1,877,296) | 545,449 | 23,381,121 | 11,034,278 |
Balance (in Shares) at Dec. 31, 2021 | 18,628,569 | |||||
Balance at Jun. 30, 2022 | 989,498 | $ 58,366 | (23,527,725) | 6,356 | 24,452,501 | |
Balance (in Shares) at Jun. 30, 2022 | 58,366,569 | |||||
Balance at Mar. 31, 2022 | 35,949,206 | $ 18,628 | (30,125) | 694,556 | 23,381,121 | 11,885,026 |
Balance (in Shares) at Mar. 31, 2022 | 18,628,569 | |||||
Discontinued Operations adjustment | 12,579,582 | (694,556) | (11,885,026) | |||
Loss from discontinuing operations | (34,984,724) | (35,949,892) | 965,168 | |||
Shares issued for officer compensation | 1,056,510 | $ 39,130 | 1,017,380 | |||
Shares issued for officer compensation (in Shares) | 39,130,000 | |||||
Shares issued for private placement | 60,000 | $ 6,000 | 54,000 | |||
Shares issued for private placement (in Shares) | 6,000,000 | |||||
Shares repurchase and cancelled | (970,560) | $ (5,392) | (965,168) | |||
Shares repurchase and cancelled (in Shares) | (5,392,000) | |||||
Net income | (127,290) | (127,290) | ||||
Foreign currency translation adjustment | 6,356 | 6,356 | ||||
Balance at Jun. 30, 2022 | $ 989,498 | $ 58,366 | $ (23,527,725) | $ 6,356 | $ 24,452,501 | |
Balance (in Shares) at Jun. 30, 2022 | 58,366,569 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash Flows From Operating Activities | ||
Net income(loss) | $ (33,543,279) | $ 1,519,009 |
Less: Net income(loss) from discontinued operations | (33,393,670) | 1,551,059 |
Net loss from continued operations | (149,609) | (32,050) |
Adjustments to reconcile net income(loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 1,505 | |
Warrant expense | (7) | 6,713 |
Share-base payment | 81,822 | |
Changes in operating assets and liabilities: | ||
Deferred expenses | (900,036) | |
Prepayments and other current assets | (3,219) | |
Accounts payable | (58,000) | (62,000) |
Amount due to related parties | 87,171 | |
Deposits received | 1,583 | |
Net cash used in continued operations | (1,025,961) | (166) |
Net cash provided by discontinued operations | 3,157,978 | 3,619,454 |
Net cash provided by operating activities | 2,132,017 | 3,619,288 |
Cash Flows From Investing Activities | ||
Purchases of property and equipment | (44,518) | |
Net cash used in investing activities related to continued operations | (44,518) | |
Net cash (used in) investing activities related to discontinued operations | (2,783,041) | (2,096,489) |
Net cash (used in) investing activities | (2,827,559) | (2,096,489) |
Cash Flows From Financing Activities | ||
Non-cash issuance of common stock | 969,296 | |
Proceeds from issuance of common stock | 60,000 | |
Derivative financial instruments | 7 | |
Net cash provided by financing activities related to continued operations | 1,029,303 | |
Net cash (used in) financing activities related to discontinued operations | (867,508) | (2,004,971) |
Net cash provided by (used in) financing activities | 161,795 | (2,004,971) |
Effect of exchange rate fluctuation on cash and cash equivalents | (284,565) | (49,884) |
Net (decrease) in cash and cash equivalents | (818,312) | (532,056) |
Cash and cash equivalents, beginning of period | 855,971 | 844,827 |
Cash and cash equivalents, ending of period | 37,659 | 312,771 |
Analysis of cash and cash equivalents | ||
Included in cash and cash equivalents per consolidated balance sheets | 37,659 | 30,885 |
Included in cash and cash equivalents of discontinued operations | 281,886 | |
Cash and cash equivalents, end of year | 37,659 | 312,771 |
Continuing operations: | ||
Cash paid for income taxes | ||
Cash paid for interest | ||
Discontinued operations: | ||
Cash paid for income taxes | (13,086) | (5,016) |
Cash paid for interest | (406,544) | (732,170) |
Supplemental disclosure of non-cash activities | ||
Shares issued for officer compensation | (1,056,510) | |
Shares repurchase | $ 970,560 |
Description of Business and Org
Description of Business and Organization | 6 Months Ended |
Jun. 30, 2022 | |
Description of Business and Organization [Abstract] | |
DESCRIPTION OF BUSINESS AND ORGANIZATION | NOTE 1. DESCRIPTION OF BUSINESS AND ORGANIZATION JRSIS Health Care Corporation (the “Company” or “JRSS”) was incorporated on November 20, 2013 under the laws of the State of Florida. In December 2013 JRSS acquired 100% of the equity in JRSIS Health Care Limited (“JHCL”), which is a Limited Liability Company registered in British Virgin Island (“BVI”) on February 25, 2013. JHCL owns 100% of the equity in Runteng Medical Group Co., Ltd (“Runteng”), a limited liability company registered in Hong Kong on September 17, 2012. Until March 31, 2022 Runten g owned 70% of the equity in Harbin Jiarun Hospital Co., Ltd (“Jiarun”), a for-profit hospital incorporated in Harbin City of Heilongjiang, China in February 2006. The remaining 30% of the equity in Jiarun is owned by Junsheng Zhang, who is the Chairman of the Board of JRSIS Health Care Corporation. Jiarun is a private hospital serving patients on a municipal and county level and providing both Western and Chinese medical practices to the residents of Harbin. Jiarun also owns 100% of the equity in: ● Harbin Jiarun Hospital Co., Ltd Nanjing Road Branch (“NRB Hospital”), a hospital branch of Jiarun, incorporated in Harbin City of Heilongjiang, China in October 2017. NRB hospital is a private hospital serving patients on a municipal and county level and providing both Western and Chinese medical practices to the residents of Harbin. ● Harbin Jiarun Hospital Co., Ltd 2 nd nd nd ● Harbin Jiarun Hospital Co., Ltd Harbin New District Branch (“3 rd rd On April 12, 2022, Runteng has setup and owned 100% of the equity in Laidian Technology (Zhongshan) Co., Ltd (“Laidian”), a wholly foreign-owned enterprise (“WFOE”) subsidiary to engage in the business of providing charging services to electric vehicles incorporated in Zhongshan City of Guangdong, China. Spin-Off of Harbin Jiarun Hospital Co., Ltd. On April 28, 2022 JRSIS Health Care Corporation completed the spin-off of its subsidiary Harbin Jiarun Hospital Co., Ltd. as JRSIS’s subsidiary Runteng Medical Group Co., Ltd. transferred its 70% equity interest in Jiarun to Zhang Junsheng (the “Spin-Off”). In exchange for the 70% interest in Jiarun, Zhang Junsheng transferred to Runteng 5,392,000 shares of JRSIS common stock. After the Spin-Off, JRSIS does not beneficially own any equity interest in Jiarun and will no longer consolidate Jiarun financial results with the financial results of JRSIS as on April 1, 2022. According to spin-off agreement on April 28, 2022, the effective date of spin-off was April 1, 2022, Commencing on the second quarter of fiscal year 2022, Jiarun’s historical financial results for periods prior to April 1, 2022 will be reclassified and reflected in JRSIS’s consolidated financial statements as a discontinued operation for comparative purposes. |
Summaries of Significant Accoun
Summaries of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Summaries of Significant Accounting Policies [Abstract] | |
SUMMARIES OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARIES OF SIGNIFICANT ACCOUNTING POLICIES A. Basis of presentation The consolidated financial statements have been prepared in accordance with the United States generally accepted accounting principles (“U.S. GAAP”). B. Principles of consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All inter-company transactions and balances have been eliminated in consolidation. C. Use of estimates The preparation of audited 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 date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ from those estimates. Significant items subject to such estimates and assumptions include valuation allowances for receivables and recoverability of carrying amount and the estimated useful lives of long-lived assets. These estimates are often based on complex judgments and assumptions that management believes to be reasonable but are inherently uncertain and unpredictable. Actual results could differ from these estimates. D. Functional currency and foreign currency translation JRSS and JHCL’s functional currency is the United States dollar (“US$”). Runteng’s functional currency is the Hong Kong dollar (“HK$”). The functional currency of Laidian and Jiarun is the Renminbi (“RMB”). The Company’s reporting currency is US$. Assets and liabilities of Runteng, Laidian and Jiarun are translated at the current exchange rate at the balance sheet dates, revenues and expenses are translated at the average exchange rates during the reporting periods, and equity accounts are translated at historical rates. Translation adjustments are reported in other comprehensive income. The exchange rates used for foreign currency translation are as follows: For six months ended June 30, 2022 2021 (USD to RMB/ ( USD to RMB/ Assets and liabilities period end exchange rate 6.6977 / 7.8467 6.4579 / 7.7652 Revenue and expenses period average 6.4787 / 7.8257 6.4717 / 7.7614 E. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk are cash, accounts receivable and other receivables arising from its normal business activities. The Company places its cash in what it believes to be credit-worthy financial institutions. The majority of sales are either cash receipt in advance or cash receipt upon delivery. For six months ended June 30, 2022 and 2021, no customer accounted for more than 10% of net revenue. As of June 30, 2022 and December 31, 2021, no customer accounted for more than 5% of net accounts receivable, respectively. For those credit sales, the Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited. F. Cash and cash equivalents Cash and cash equivalents include all cash, deposits in banks and other liquid investments with initial maturities of three months or less. G. Property and equipment Property and equipment are stated at cost. Expenditures for maintenance and repairs are charged to operations when incurred, while additions and betterments are capitalized. Depreciation is recorded on a straight-line basis reflective of the useful lives of the assets. When assets are retired or disposed, the asset’s original cost and related accumulated depreciation are eliminated from accounts and any gain or loss is reflected in income. The estimated useful lives for property and equipment categories are as follows: Transportation instrument 5 years Office equipment 5 years H. Leases In February 2016, the FASB issued ASU 2016-02 Leases (Topic 842), which increases transparency and comparability among organizations by recognizing right-of-use (“ROU”) lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The ASU maintains a distinction between finance leases and operating leases, which is substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous lease guidance. Retaining this distinction allows the recognition, measurement and presentation of expenses and cash flows arising from a lease to remain similar to the previous accounting treatment. A lessee is permitted to make an accounting policy election by class of underlying asset to exclude from balance sheet recognition any lease assets and lease liabilities with a term of 12 months or less, and instead to recognize lease expense on a straight-line basis over the lease term. For both financing and operating leases, the ROU asset and lease liability is initially measured at the present value of the lease payments in the consolidated balance sheet. In July 2018, the FASB issued ASU 2018-11 which provides entities with the option to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, if necessary. As discussed in Note 8, we adopted ASU 2016-02–Leases (Topic 842) effective January 1, 2019 utilizing the transition option provided by ASU 2018-11. I. Fair Value Measurement The Company applies the provisions of ASC Subtopic 820-10, Fair Value Measurements, for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements. ASC 820 also establishes a framework for measuring fair value and expands disclosures about fair value measurements. Fair value is defined as the price that would be received when selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair value for the assets and liabilities required or permitted to be recorded, the Company 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 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: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs that is observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis: Carrying Value at June 30, Fair Value Measurement at June 30, 2022 2022 Level 1 Level 2 Level 3 Warrant liability $ - $ - $ - $ - A summary of changes in Warrant liability for six months ended June 30, 2022 was as follows: Balance at January 1, 2022 $ 7 Change in fair value of warrant liability (7 ) Balance at June 30, 2022 - The fair value of the outstanding warrants was calculated using the Binomial Option Pricing Model, as of the date of filling this report, there was no outstanding warrants. Cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities are reflected in the accompanying consolidated financial statements at amounts that approximate fair value because of the short-term nature of these instruments. The fair value of the Company’s capital lease obligations also approximates carrying value as they bear interest at current market rates. J. Segment and geographic information The Company is operating in one segment in accordance with the accounting guidance FASB ASC topic 280, “Segment Reporting”. The Company’s revenues are from customers in People’s Republic of China (“PRC”). All assets of the company are located in PRC. K. Revenue recognition The Company recognizes revenue when the contract and performance obligations are identified with a customer, the transaction price are determined and allocated to the performance obligations in the contract for which the amount of revenue can be reliably measured. The Company will recognize revenue when the entity satisfies a performance obligation, it is probable that economic benefits will flow to the entity, and specific criteria have been met for each of the Company’s activities. L. Share Issued for Officer’s Compensation The Company accounts for stock-based compensation in accordance with ASC 718-10 “Compensation-Stock Compensation” which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors including employee stock options, restricted stock units, and stock appreciation rights are based on estimated fair values. Stock-based compensation expense recognized during the period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period. The Company accounts for non-employee stock-based awards at fair value in accordance with the measurement and recognition criteria of ASC 505-50 “Equity-Based Payments to Non-Employees. Share-based payment awards granted to a customer shall be measured and classified according to the terms of award. A share-based payment transaction shall be measured based on the fair value. On May 5, 2022, the Company issued 39,130,000 shares of its common stock as officer compensation to Zhong Zhuowei upon the initiation of operations of Laidian. These shares had a negotiated value of $1,056,510, of which $74,652 was obligation for Laidian’s paid in capital, remains $981,858 was the expense of the company for 3 years since April of 2022. During the six months ended June 30, 2022 the company record $81,822 compensation expenses. M. Income taxes The Company has adopted FASB ASC Topic 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. In July 2006, the FASB issued FIN 48(ASC 740-10), Accounting for Uncertainty in Income Taxes-An Interpretation of FASB Statement No. 109 (ASC 740), which requires income tax positions to meet a more-likely-than-not recognition threshold to be recognized in the financial statements. Under FIN 48 (ASC 740-10), tax positions that previously failed to meet the more-likely-than-not threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The application of tax laws and regulations is subject to legal and factual interpretation, judgment and uncertainty. Tax laws and regulations themselves are subject to change as a result of changes in fiscal policy, changes in legislation, the evolution of regulations and court rulings. Therefore, the actual liability may be materially different from our estimates, which could result in the need to record additional tax liabilities or potentially reverse previously recorded tax liabilities or deferred tax asset valuation allowance. As a result of the implementation of FIN 48 (ASC 740-10), the Company made a comprehensive review of its portfolio of tax positions in accordance with recognition standards established by FIN 48 (ASC 740-10). The Company recognized no material adjustments to liabilities or shareholder’s equity as a result of the implementation. The adoption of FIN 48 did not have a material impact on the Company’s unaudited consolidated financial statements. Enterprise income tax is determined under the Provisional Regulations of PRC Concerning Income Tax on Enterprises promulgated by the PRC, income tax is payable by enterprises at a rate of 25% of their taxable income. N. Earnings per share Basic earnings per common share is computed by using net income divided by the weighted average number of shares of common stock outstanding for the periods presented. Diluted earnings per share is computed by dividing net income by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding for the periods presented. The dilutive earnings per share will not be computed if the effect would be anti-dilutive. O. Reclassification The comparative figures before April 1, 2022 have been reclassified to conform to current year presentation to reflect the disposal of a component of business derived from the recognition of a spin-off transaction on April 28, 2022. P. Recently adopted accounting pronouncements The FASB has issued Accounting Standards Update (ASU) No. 2019-01, Leases (Topic 842): Codification Improvements. The new ASU aligns the guidance for fair value of the underlying asset by lessors that are not manufacturers or dealers in Topic 842 with that of existing guidance. As a result, the fair value of the underlying asset at lease commencement is its cost, reflecting any volume or trade discounts that may apply. However, if there has been a significant lapse of time between when the underlying asset is acquired and when the lease commences, the definition of fair value (in Topic 820, Fair Value Measurement) should be applied. The ASU also requires lessors within the scope of Topic 942, Financial Services—Depository and Lending, to present all “principal payments received under leases” within investing activities. Finally, the ASU exempts both lessees and lessors from having to provide certain interim disclosures in the fiscal year in which a company adopts the new leases standard. We do not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | NOTE 3. DISCONTINUED OPERATIONS At the beginning of 2022, the board of directors of the Company committed to a plan to dispose of Jiarun. On April 28, 2022 the subsidiary of JRSS, Runteng Medical Group Co., Ltd., entered into an Agreement Regarding a Transfer of Harbin Jiarun Hospital Co., Ltd.’s Equity with Zhang Junsheng, who was the Chairman of JRSS until April 28, 2022. Pursuant to the Transfer Agreement, Runteng transferred to Mr. Zhang equity in Harbin Jiarun Hospital Co., Ltd. representing 70% of the total equity in Jiarun Hospital and Mr. Zhang transferred to Runteng 5,392,000 shares of the Registrant’s common stock. After the Spin-Off, JRSIS does not beneficially own any equity in Jiarun and will no longer consolidate Jiarun financial results with financial results of JRSS. Commencing on the second quarter of fiscal year 2022, Jiarun hospital’s historical financial results for periods prior to April 1, 2022 will be reclassified and reflected in JRSS’s consolidated financial statements as a discontinued operation. Since this transaction required certain authoritative approval before effective, the publication of these transactions were delay so as to obtain all parties consent and advance authoritative approval. The following table presents the components of discontinued operations in relation to Jiarun hospital reported in the consolidated statements of operations: Three Months Ended Six Months Ended 2022 2021 2022 2021 Net Sales - 11,740,600 15,619,411 19,066,834 Operating costs and expenses - 10,306,450 12,023,149 16,895,867 Earnings from operations before other income and income taxes - 1,434,150 3,596,262 2,170,967 Other income(loss) (36,054,805 ) (32,825 ) (36,061,556 ) (36,601 ) Loss from operations before income taxes (36,054,805 ) 1,401,325 (32,465,294 ) 2,134,366 Income tax - 376,723 928,376 583,307 Net income from discontinued operations (36,054,805 ) 1,024,602 (33,393,670 ) 1,551,059 The following table presents the major classes of assets and liabilities of discontinued operations of Jiarun hospital reported in the consolidated balance sheets: June 30, December 31, 2022 2021 Cash and cash equivalents $ - $ 826,124 Accounts receivable, net - 7,544,033 Inventories - 1,771,158 Other receivables - 83,685 Prepayments - 2,812,156 Amount due from related parties - 337,597 Deferred expenses - 461,331 Current assets of discontinued operations - 13,836,084 Construction in progress - 3,240,774 Property and equipment, net - 33,162,817 Long term deferred expenses - 2,117,763 Deposits for capital leases - 967,950 Right-of-use assets - 22,337,517 Non-current assets of discontinued operations - 61,826,821 Accounts payable $ - $ 12,366,017 Notes payable - 629,050 Deposits received - 3,894 Amount due to related parties - (1,455,677 ) Other payable - 68,425 Deferred tax payable - 308,491 Tax payable - 420,796 Payroll payable - 1,058,618 Lease obligations - current portion - 2,676,956 Current liabilities of discontinued operations - 16,076,570 Lease obligations - 20,380,899 Deferred tax payable - 3,993,209 Other capital lease payable - 616,955 Non-current liabilities of discontinued operations - 24,991,063 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 4. PROPERTY AND EQUIPMENT At June 30, 2022 and December 31, 2021, property and equipment, at cost, consist of: June 30, December 31, 2022 2021 (Unaudited) Transportation equipment $ 45,180 $ - Office equipment and others 794 - Total fixed assets at cost 45,974 - Accumulated depreciation (1,456 ) - Total fixed assets, net $ 44,518 $ - The Company recorded depreciation expense of $1,505 and $ nil |
Right-of-Use Assets and Lease L
Right-of-Use Assets and Lease Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Right-of-Use Assets and Lease Liabilities [Abstract] | |
RIGHT-OF-USE ASSETS AND LEASE LIABILITIES | NOTE 5. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES On January 1, 2019, the Company adopted Accounting Standards Codification (“ASC”) Topic 842, “Leases” (“new lease standard”). The new lease standard was adopted using the optional transition method approach that allows for the cumulative effect adjustment to be recorded without restating prior periods. The Company has elected the practical expedient package related to the identification, classification and accounting for initial direct costs whereby prior conclusions do not have to be reassessed for leases that commenced before the effective date. As the Company will not reassess such conclusions, the Company has not adopted the practical expedient to use hindsight to determine the likelihood of whether a lease will be extended or terminated or whether a purchase option will be exercised. Operating lease In March 2022 Laidian leased office space under non-cancellable operating lease agreements. Under terms of the lease agreement, from April 2022, Laidian is committed to make lease payments of approximately $1,528 per month for 23 months. This office is used as office for Laidian. The Company’s adoption of the new lease standard included new processes and controls regarding asset financing transactions, financial reporting and a system-related implementation required for the new lease standard. The Company’s accounting for finance leases (formerly referred to as capital leases prior to the adoption of the new lease standard) remained substantially unchanged. The impact of the adoption of the new lease standard included the recognition of right-of-use (“ROU”) assets and lease liabilities. The adoption of the new lease standard resulted in additional net lease assets and net lease liabilities of $26,970 and $26,970, respectively, as of June 30, 2022. As of June 30, 2022, the Company has the following amounts recorded on the Company’s unaudited condensed consolidated balance sheet: June 30, (Unaudited) Assets Operating lease assets $ 26,970 Total $ 26,970 Liabilities Operating lease liabilities- Current 16,790 Operating lease liabilities- Long-term 10,180 Total $ 26,970 Future annual minimum lease payments, for non-cancellable operating leases are as follows: Year ending June 30 Amount $ 2022 8,292 2023 17,205 2024 1,473 Total 26,970 The company has recorded operating lease expense of $6,112 and $280,523 ($ nil nil At June 30, 2022 right-of-use assets, consist of: June 30, Lease assets $ 33,082 Accumulated amortization (6,112 ) Total right-of-use assets, net $ 26,970 |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 6. DERIVATIVE FINANCIAL INSTRUMENTS Derivative Financial Instruments The Company has adopted the provisions of ASC subtopic 825-10, Financial Instruments (“ASC 825-10”). ASC 825-10 defines fair value as the price that would be received from selling 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 Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. ASC 825-10 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. Warrant liability – In 2019 the Company issued a common stock purchase warrant (the “warrant”) to purchase 21,000 shares of the registrant’s common stock to Auctus Fund, LLC. The warrant contains certain reset provisions. The accounting treatment of derivative financial instruments requires that the Company record fair value of the derivative as of the inception date (issuance date) and to record changes in fair value as of each subsequent reporting date. As of the date of filling this report, there were no outstanding warrants. |
Income Tax Expense
Income Tax Expense | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Expense [Abstract] | |
INCOME TAX EXPENSE | NOTE 7. INCOME TAX EXPENSE The Company uses the asset-liability method of accounting for income taxes prescribed by ASC 740 Income Taxes. The Company and its subsidiaries each file their taxes individually. United States JRSS is subject to the United States of America tax at a tax rate of 21%. No provision for the US federal income taxes has been made as the Company had no US taxable income for the periods presented, and its earnings are planned to be reinvested indefinitely into the operations of the Company in the PRC. The following table shows the components of the allowance for US income tax recorded for six months ended June 30, 2022: Amounts Loss before income tax $ 792,193 Tax rate at 21% 166,361 Disallowed tax losses (166,361 ) Income tax expense $ - BVI JHCL was incorporated in the BVI and, under the current laws of the BVI, it is not subject to income tax. Hong Kong Runteng was incorporated in Hong Kong and is subject to Hong Kong profits tax. Runteng is subject to Hong Kong taxation on its activities conducted in Hong Kong and income arising in or derived from Hong Kong. The applicable statutory tax rate is 16.5%. The following table shows the components of the allowance for Hong Kong income tax recorded for six months ended June 30, 2022: Amounts Loss before income tax $ - Tax rate at 16.5% - Disallowed tax losses - Income tax expense $ - PRC Corporate Income Tax (CIT) is determined under the Provisional Regulations of PRC Concerning Income Tax on Enterprises promulgated by the PRC. Income tax is payable by enterprises at a rate of 25% of their taxable income. The following table shows the components of the allowance for PRC income tax recorded for six months ended June 30, 2022: Amounts Income tax expense $ - Income tax: 2022 deferred - Tax expense from continuing operation $ - Reconciliation: Amounts Income tax at statutory rate $ - Tax expense from continuing operation $ - |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 8. RELATED PARTY TRANSACTIONS The following is the list of the related parties with which the Group has had transactions: Amount due from related parties Amount due to related parties consisted of the following as of the periods indicated: Name of related parties June 30, December 31, Zhuowei Zhong 13,649 - $ 13,649 $ - Amounts due from Zhuowei Zhong, the Chairman of the Company, represented amounts paid by Mr. Zhong for the daily operation of the company, the balance was more than repay the amount owed, has been settled until the second quarter of 2022. Related parties’ transactions Payment for the Company’s operating expenses by related parties consisted of the following for the periods indicated: Related party transaction For six months ended June 30, 2022 2021 Stock-based compensation paid to: Zhong Zhuowei (#1) $ 81,822 $ - (#1) Zhong Zhuowei (“Zhong”) is major shareholder holding 80.7% and 0% of the Company’s issued and outstanding common stock as of June 30, 2022 and June 30, 2021, respectively. On May 5, 2022, the company issued 39,130,000 shares of its common stock to Zhong Zhuowei. Under “Agreement on the establishment of Laidian technology (Zhongshan) Co., Ltd.” to serve as a management and setup the Laidian. As Mr. Zhong had previously acquired 8,000,000 shares in private transactions, he owned 47,130,000 shares (80.7%) of the Company’s common stock as on May 5, 2022. |
Basic and Diluted Earnings Per
Basic and Diluted Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
BASIC AND DILUTED EARNINGS PER SHARE | NOTE 9. BASIC AND DILUTED EARNINGS PER SHARE Basic net income per share is computed using the weighted average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares comprise shares issuable upon the exercise of share-based awards, using the treasury stock method. The reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for income from continuing operations is shown as follows: Six Months Ended 2022 2021 (Unaudited) (Unaudited) Numerator: Net income(loss) available to common stockholders $ (33,543,279 ) $ 1,519,009 Net income(loss) from continued operations (149,609 ) (32,050 ) Net income(loss) from discontinued operations (33,393,670 ) 1,551,059 Denominator: Basic weighted-average number of shares outstanding 31,250,525 18,271,814 Diluted weighted-average number of shares outstanding 31,250,525 18,481,814 Net income(loss) per share: Net income(loss) per share of common stock Basic EPS (1.0734 ) 0.0831 Diluted EPS (1.0734 ) 0.0822 Net income(loss) from continuing operations per share of common stock Basic EPS (0.0048 ) (0.0018 ) Diluted EPS (0.0048 ) (0.0017 ) Net income(loss) from discontinuing operations per share of common stock Basic EPS $ (1.0686 ) $ 0.0849 Diluted EPS $ (1.0686 ) $ 0.0839 The dilutive earnings per share will not be computed if the effect would be anti-dilutive. |
Contingencies and Commitment
Contingencies and Commitment | 6 Months Ended |
Jun. 30, 2022 | |
Contingencies and Commitment [Abstract] | |
CONTINGENCIES AND COMMITMENT | NOTE 10. CONTINGENCIES AND COMMITMENT Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. There was no contingency of this type as of June 30, 2022 and December 31, 2021. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed. There was no contingency of this type as of June 30, 2022 and December 31, 2021. Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed. |
Common Stock
Common Stock | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
COMMON STOCK | NOTE 11. COMMON STOCK On March 17, 2022, the company entered into an Agreement on the Establishment of Laidian Technology (Zhongshan) Co., Ltd. (“Laidian”) with Zhong Zhuowei. The agreement contains a covenant by Zhong Zhuowei to fund the operations of Laidian which is 100% owned by Runteng Medical, in consideration of Mr. Zhong’s financial commitment and commitment to provide management services, the company agreed to issue 39,130,000 shares of its common stock to Zhong Zhuowei upon the initiation of operations of Laidian. On May 5, 2022, the company issued 39,130,000 shares of its common stock to Zhong Zhuowei. As Mr. Zhong had previously acquired 8,000,000 shares in private transactions, he owned 47,130,000 shares (80.7%) of the Company’s common stock as on May 5, 2022. On May 17, 2022, the Company issued a total of 6,000,000 share of common stock for US$60,000 at US$0.01 per share to six non-US shareholders. On April 28, 2022, Runteng entered into an agreement regarding a transfer of Harbin Jiarun Hospital Co., Ltd.’s Equity (the “Transfer Agreement”) with Zhang Junsheng. Pursuant to the Transfer Agreement, Runteng transferred to Mr. Zhang equity in Harbin Jiarun Hospital Co., Ltd. (“Jiarun Hospital”) representing 70% of the total equity in Jiarun Hospital and Mr. Zhang transferred to Runteng 5,392,000 shares of the Company’s common stock. On May 27, 2022, the company cancelled 5,392,000 shares of its common stock from Zhang Junsheng. Since this transaction required certain authoritative approval before effective, the publication of these transactions were delay so as to obtain all parties consent and advance authoritative approval. As of May 27, 2022, the issued share balance of the company was 58,366,569, the balance of the number of shares of Mr. Zhang and Mr. Zhong were nil (0%) and 4,7130,000(80.7%), respectively. There were 58,366,569 and 18,628,569 common shares issued and outstanding at June 30, 2022 and December 31, 2021 respectively. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 12. SUBSEQUENT EVENTS The COVID-19 pandemic has had a significant adverse impact and created many uncertainties related to our business, and we expect that it will continue to do so. The Company is experiencing challenges in sales and has suffered a significant decrease in revenues which has increased financial uncertainty. Our future business outlook and expectations are very uncertain due to the impact of the COVID-19 pandemic and are very difficult to quantify. It is difficult to assess or predict the impact of this unprecedented event on our business, financial results or financial condition. Except for the above matter, the Management of the Company determined that there were no material reportable subsequent events required to be disclosed or because of which adjustments are needed. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Summaries of Significant Accounting Policies [Abstract] | |
Basis of presentation | A. Basis of presentation The consolidated financial statements have been prepared in accordance with the United States generally accepted accounting principles (“U.S. GAAP”). |
Principles of consolidation | B. Principles of consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All inter-company transactions and balances have been eliminated in consolidation. |
Use of estimates | C. Use of estimates The preparation of audited 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 date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ from those estimates. Significant items subject to such estimates and assumptions include valuation allowances for receivables and recoverability of carrying amount and the estimated useful lives of long-lived assets. These estimates are often based on complex judgments and assumptions that management believes to be reasonable but are inherently uncertain and unpredictable. Actual results could differ from these estimates. |
Functional currency and foreign currency translation | D. Functional currency and foreign currency translation JRSS and JHCL’s functional currency is the United States dollar (“US$”). Runteng’s functional currency is the Hong Kong dollar (“HK$”). The functional currency of Laidian and Jiarun is the Renminbi (“RMB”). The Company’s reporting currency is US$. Assets and liabilities of Runteng, Laidian and Jiarun are translated at the current exchange rate at the balance sheet dates, revenues and expenses are translated at the average exchange rates during the reporting periods, and equity accounts are translated at historical rates. Translation adjustments are reported in other comprehensive income. The exchange rates used for foreign currency translation are as follows: For six months ended June 30, 2022 2021 (USD to RMB/ ( USD to RMB/ Assets and liabilities period end exchange rate 6.6977 / 7.8467 6.4579 / 7.7652 Revenue and expenses period average 6.4787 / 7.8257 6.4717 / 7.7614 |
Concentration of Credit Risk | E. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk are cash, accounts receivable and other receivables arising from its normal business activities. The Company places its cash in what it believes to be credit-worthy financial institutions. The majority of sales are either cash receipt in advance or cash receipt upon delivery. For six months ended June 30, 2022 and 2021, no customer accounted for more than 10% of net revenue. As of June 30, 2022 and December 31, 2021, no customer accounted for more than 5% of net accounts receivable, respectively. For those credit sales, the Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited. |
Cash and cash equivalents | F. Cash and cash equivalents Cash and cash equivalents include all cash, deposits in banks and other liquid investments with initial maturities of three months or less. |
Property and equipment | G. Property and equipment Property and equipment are stated at cost. Expenditures for maintenance and repairs are charged to operations when incurred, while additions and betterments are capitalized. Depreciation is recorded on a straight-line basis reflective of the useful lives of the assets. When assets are retired or disposed, the asset’s original cost and related accumulated depreciation are eliminated from accounts and any gain or loss is reflected in income. The estimated useful lives for property and equipment categories are as follows: Transportation instrument 5 years Office equipment 5 years |
Leases | H. Leases In February 2016, the FASB issued ASU 2016-02 Leases (Topic 842), which increases transparency and comparability among organizations by recognizing right-of-use (“ROU”) lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The ASU maintains a distinction between finance leases and operating leases, which is substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous lease guidance. Retaining this distinction allows the recognition, measurement and presentation of expenses and cash flows arising from a lease to remain similar to the previous accounting treatment. A lessee is permitted to make an accounting policy election by class of underlying asset to exclude from balance sheet recognition any lease assets and lease liabilities with a term of 12 months or less, and instead to recognize lease expense on a straight-line basis over the lease term. For both financing and operating leases, the ROU asset and lease liability is initially measured at the present value of the lease payments in the consolidated balance sheet. In July 2018, the FASB issued ASU 2018-11 which provides entities with the option to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, if necessary. As discussed in Note 8, we adopted ASU 2016-02–Leases (Topic 842) effective January 1, 2019 utilizing the transition option provided by ASU 2018-11. |
Fair Value Measurement | I. Fair Value Measurement The Company applies the provisions of ASC Subtopic 820-10, Fair Value Measurements, for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements. ASC 820 also establishes a framework for measuring fair value and expands disclosures about fair value measurements. Fair value is defined as the price that would be received when selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair value for the assets and liabilities required or permitted to be recorded, the Company 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 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: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs that is observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis: Carrying Value at June 30, Fair Value Measurement at June 30, 2022 2022 Level 1 Level 2 Level 3 Warrant liability $ - $ - $ - $ - A summary of changes in Warrant liability for six months ended June 30, 2022 was as follows: Balance at January 1, 2022 $ 7 Change in fair value of warrant liability (7 ) Balance at June 30, 2022 - The fair value of the outstanding warrants was calculated using the Binomial Option Pricing Model, as of the date of filling this report, there was no outstanding warrants. Cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities are reflected in the accompanying consolidated financial statements at amounts that approximate fair value because of the short-term nature of these instruments. The fair value of the Company’s capital lease obligations also approximates carrying value as they bear interest at current market rates. |
Segment and geographic information | J. Segment and geographic information The Company is operating in one segment in accordance with the accounting guidance FASB ASC topic 280, “Segment Reporting”. The Company’s revenues are from customers in People’s Republic of China (“PRC”). All assets of the company are located in PRC. |
Revenue recognition | K. Revenue recognition The Company recognizes revenue when the contract and performance obligations are identified with a customer, the transaction price are determined and allocated to the performance obligations in the contract for which the amount of revenue can be reliably measured. The Company will recognize revenue when the entity satisfies a performance obligation, it is probable that economic benefits will flow to the entity, and specific criteria have been met for each of the Company’s activities. |
Share Issued for Officer’s Compensation | L. Share Issued for Officer’s Compensation The Company accounts for stock-based compensation in accordance with ASC 718-10 “Compensation-Stock Compensation” which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors including employee stock options, restricted stock units, and stock appreciation rights are based on estimated fair values. Stock-based compensation expense recognized during the period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period. The Company accounts for non-employee stock-based awards at fair value in accordance with the measurement and recognition criteria of ASC 505-50 “Equity-Based Payments to Non-Employees. Share-based payment awards granted to a customer shall be measured and classified according to the terms of award. A share-based payment transaction shall be measured based on the fair value. On May 5, 2022, the Company issued 39,130,000 shares of its common stock as officer compensation to Zhong Zhuowei upon the initiation of operations of Laidian. These shares had a negotiated value of $1,056,510, of which $74,652 was obligation for Laidian’s paid in capital, remains $981,858 was the expense of the company for 3 years since April of 2022. During the six months ended June 30, 2022 the company record $81,822 compensation expenses. |
Income taxes | M. Income taxes The Company has adopted FASB ASC Topic 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. In July 2006, the FASB issued FIN 48(ASC 740-10), Accounting for Uncertainty in Income Taxes-An Interpretation of FASB Statement No. 109 (ASC 740), which requires income tax positions to meet a more-likely-than-not recognition threshold to be recognized in the financial statements. Under FIN 48 (ASC 740-10), tax positions that previously failed to meet the more-likely-than-not threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The application of tax laws and regulations is subject to legal and factual interpretation, judgment and uncertainty. Tax laws and regulations themselves are subject to change as a result of changes in fiscal policy, changes in legislation, the evolution of regulations and court rulings. Therefore, the actual liability may be materially different from our estimates, which could result in the need to record additional tax liabilities or potentially reverse previously recorded tax liabilities or deferred tax asset valuation allowance. As a result of the implementation of FIN 48 (ASC 740-10), the Company made a comprehensive review of its portfolio of tax positions in accordance with recognition standards established by FIN 48 (ASC 740-10). The Company recognized no material adjustments to liabilities or shareholder’s equity as a result of the implementation. The adoption of FIN 48 did not have a material impact on the Company’s unaudited consolidated financial statements. Enterprise income tax is determined under the Provisional Regulations of PRC Concerning Income Tax on Enterprises promulgated by the PRC, income tax is payable by enterprises at a rate of 25% of their taxable income. |
Earnings per share | N. Earnings per share Basic earnings per common share is computed by using net income divided by the weighted average number of shares of common stock outstanding for the periods presented. Diluted earnings per share is computed by dividing net income by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding for the periods presented. The dilutive earnings per share will not be computed if the effect would be anti-dilutive. |
Reclassification | O. Reclassification The comparative figures before April 1, 2022 have been reclassified to conform to current year presentation to reflect the disposal of a component of business derived from the recognition of a spin-off transaction on April 28, 2022. |
Recently adopted accounting pronouncements | P. Recently adopted accounting pronouncements The FASB has issued Accounting Standards Update (ASU) No. 2019-01, Leases (Topic 842): Codification Improvements. The new ASU aligns the guidance for fair value of the underlying asset by lessors that are not manufacturers or dealers in Topic 842 with that of existing guidance. As a result, the fair value of the underlying asset at lease commencement is its cost, reflecting any volume or trade discounts that may apply. However, if there has been a significant lapse of time between when the underlying asset is acquired and when the lease commences, the definition of fair value (in Topic 820, Fair Value Measurement) should be applied. The ASU also requires lessors within the scope of Topic 942, Financial Services—Depository and Lending, to present all “principal payments received under leases” within investing activities. Finally, the ASU exempts both lessees and lessors from having to provide certain interim disclosures in the fiscal year in which a company adopts the new leases standard. We do not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows. |
Summaries of Significant Acco_2
Summaries of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Summaries of Significant Accounting Policies [Abstract] | |
Schedule of foreign currency translation | For six months ended June 30, 2022 2021 (USD to RMB/ ( USD to RMB/ Assets and liabilities period end exchange rate 6.6977 / 7.8467 6.4579 / 7.7652 Revenue and expenses period average 6.4787 / 7.8257 6.4717 / 7.7614 |
Schedule of estimated useful lives for property and equipment categories | Transportation instrument 5 years Office equipment 5 years |
Schedule of fair value hierarchy our financial assets and liabilities | Carrying Value at June 30, Fair Value Measurement at June 30, 2022 2022 Level 1 Level 2 Level 3 Warrant liability $ - $ - $ - $ - |
Schedule of changes in warrant liability | Balance at January 1, 2022 $ 7 Change in fair value of warrant liability (7 ) Balance at June 30, 2022 - |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of discontinued operations in relation to Jiarun hospital reported in the consolidated statements of operations | Three Months Ended Six Months Ended 2022 2021 2022 2021 Net Sales - 11,740,600 15,619,411 19,066,834 Operating costs and expenses - 10,306,450 12,023,149 16,895,867 Earnings from operations before other income and income taxes - 1,434,150 3,596,262 2,170,967 Other income(loss) (36,054,805 ) (32,825 ) (36,061,556 ) (36,601 ) Loss from operations before income taxes (36,054,805 ) 1,401,325 (32,465,294 ) 2,134,366 Income tax - 376,723 928,376 583,307 Net income from discontinued operations (36,054,805 ) 1,024,602 (33,393,670 ) 1,551,059 |
Schedule of major classes of assets and liabilities of discontinued operations of Jiarun hospital reported in the consolidated balance sheets | June 30, December 31, 2022 2021 Cash and cash equivalents $ - $ 826,124 Accounts receivable, net - 7,544,033 Inventories - 1,771,158 Other receivables - 83,685 Prepayments - 2,812,156 Amount due from related parties - 337,597 Deferred expenses - 461,331 Current assets of discontinued operations - 13,836,084 Construction in progress - 3,240,774 Property and equipment, net - 33,162,817 Long term deferred expenses - 2,117,763 Deposits for capital leases - 967,950 Right-of-use assets - 22,337,517 Non-current assets of discontinued operations - 61,826,821 Accounts payable $ - $ 12,366,017 Notes payable - 629,050 Deposits received - 3,894 Amount due to related parties - (1,455,677 ) Other payable - 68,425 Deferred tax payable - 308,491 Tax payable - 420,796 Payroll payable - 1,058,618 Lease obligations - current portion - 2,676,956 Current liabilities of discontinued operations - 16,076,570 Lease obligations - 20,380,899 Deferred tax payable - 3,993,209 Other capital lease payable - 616,955 Non-current liabilities of discontinued operations - 24,991,063 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | June 30, December 31, 2022 2021 (Unaudited) Transportation equipment $ 45,180 $ - Office equipment and others 794 - Total fixed assets at cost 45,974 - Accumulated depreciation (1,456 ) - Total fixed assets, net $ 44,518 $ - |
Right-of-Use Assets and Lease_2
Right-of-Use Assets and Lease Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Right-of-Use Assets and Lease Liabilities [Abstract] | |
Schedule of unaudited condensed consolidated balance sheet | June 30, (Unaudited) Assets Operating lease assets $ 26,970 Total $ 26,970 Liabilities Operating lease liabilities- Current 16,790 Operating lease liabilities- Long-term 10,180 Total $ 26,970 |
Schedule of future annual minimum lease payments for non-cancellable operating leases | Year ending June 30 Amount $ 2022 8,292 2023 17,205 2024 1,473 Total 26,970 |
Schedule of right-of-use assets | June 30, Lease assets $ 33,082 Accumulated amortization (6,112 ) Total right-of-use assets, net $ 26,970 |
Income Tax Expense (Tables)
Income Tax Expense (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Expense [Abstract] | |
Schedule of components of the allowance for US income tax | Amounts Loss before income tax $ 792,193 Tax rate at 21% 166,361 Disallowed tax losses (166,361 ) Income tax expense $ - Amounts Loss before income tax $ - Tax rate at 16.5% - Disallowed tax losses - Income tax expense $ - Amounts Income tax expense $ - Income tax: 2022 deferred - Tax expense from continuing operation $ - |
Schedule of income tax reconciliation | Amounts Income tax at statutory rate $ - Tax expense from continuing operation $ - |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of amount due to related parties | Name of related parties June 30, December 31, Zhuowei Zhong 13,649 - $ 13,649 $ - |
Schedule of operating expenses by related parties | For six months ended June 30, 2022 2021 Stock-based compensation paid to: Zhong Zhuowei (#1) $ 81,822 $ - (#1) Zhong Zhuowei (“Zhong”) is major shareholder holding 80.7% and 0% of the Company’s issued and outstanding common stock as of June 30, 2022 and June 30, 2021, respectively. On May 5, 2022, the company issued 39,130,000 shares of its common stock to Zhong Zhuowei. Under “Agreement on the establishment of Laidian technology (Zhongshan) Co., Ltd.” to serve as a management and setup the Laidian. As Mr. Zhong had previously acquired 8,000,000 shares in private transactions, he owned 47,130,000 shares (80.7%) of the Company’s common stock as on May 5, 2022. |
Basic and Diluted Earnings Pe_2
Basic and Diluted Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of basic net income per share | Six Months Ended 2022 2021 (Unaudited) (Unaudited) Numerator: Net income(loss) available to common stockholders $ (33,543,279 ) $ 1,519,009 Net income(loss) from continued operations (149,609 ) (32,050 ) Net income(loss) from discontinued operations (33,393,670 ) 1,551,059 Denominator: Basic weighted-average number of shares outstanding 31,250,525 18,271,814 Diluted weighted-average number of shares outstanding 31,250,525 18,481,814 Net income(loss) per share: Net income(loss) per share of common stock Basic EPS (1.0734 ) 0.0831 Diluted EPS (1.0734 ) 0.0822 Net income(loss) from continuing operations per share of common stock Basic EPS (0.0048 ) (0.0018 ) Diluted EPS (0.0048 ) (0.0017 ) Net income(loss) from discontinuing operations per share of common stock Basic EPS $ (1.0686 ) $ 0.0849 Diluted EPS $ (1.0686 ) $ 0.0839 |
Description of Business and O_2
Description of Business and Organization (Details) - shares | 6 Months Ended | |||||
Apr. 28, 2022 | Jun. 30, 2022 | Apr. 12, 2022 | Mar. 31, 2022 | Dec. 31, 2013 | Sep. 17, 2012 | |
JRSIS Health Care Limited [Member] | ||||||
Description of Business and Organization (Details) [Line Items] | ||||||
Equity, ownership percentage | 100% | |||||
Runteng Medical Group Co., Ltd [Member] | ||||||
Description of Business and Organization (Details) [Line Items] | ||||||
Equity, ownership percentage | 100% | |||||
Harbin Jiarun Hospital Co., Ltd [Member] | ||||||
Description of Business and Organization (Details) [Line Items] | ||||||
Equity, ownership percentage | 70% | |||||
Total shareholders’ equity percentage | 100% | |||||
Laidian Technology (Zhongshan) Co., Ltd [Member] | ||||||
Description of Business and Organization (Details) [Line Items] | ||||||
Total shareholders’ equity percentage | 100% | |||||
Zhang Junsheng [Member] | ||||||
Description of Business and Organization (Details) [Line Items] | ||||||
Equity, ownership percentage | 70% | 0% | ||||
Zhong Zhuowei [Member] | ||||||
Description of Business and Organization (Details) [Line Items] | ||||||
Equity, ownership percentage | 70% | 80.70% | ||||
Common stock (in Shares) | 5,392,000 | 47,130,000 |
Summaries of Significant Acco_3
Summaries of Significant Accounting Policies (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
Apr. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | May 05, 2022 | |
Summaries of Significant Accounting Policies (Details) [Line Items] | |||||
Number of operating segment | 1 | ||||
Shares issued (in Shares) | 39,130,000 | ||||
Negotiated value (in Dollars) | $ 1,056,510 | ||||
Additional paid in capital (in Dollars) | $ 24,452,501 | $ 23,381,121 | |||
Deferred expense at beginning (in Dollars) | $ 981,858 | ||||
Expense term year | 3 years | ||||
Compensation expenses (in Dollars) | $ 81,822 | ||||
Income tax payable rate | 25% | ||||
Common Stock [Member] | |||||
Summaries of Significant Accounting Policies (Details) [Line Items] | |||||
Shares issued (in Shares) | 39,130,000 | ||||
Sales Revenue, Net [Member] | |||||
Summaries of Significant Accounting Policies (Details) [Line Items] | |||||
Concentration of credit risk | 10% | 10% | |||
Accounts Receivable [Member] | |||||
Summaries of Significant Accounting Policies (Details) [Line Items] | |||||
Concentration of credit risk | 5% | 5% | |||
Laidian’s [Member] | |||||
Summaries of Significant Accounting Policies (Details) [Line Items] | |||||
Additional paid in capital (in Dollars) | $ 74,652 |
Summaries of Significant Acco_4
Summaries of Significant Accounting Policies (Details) - Schedule of foreign currency translation | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Assets and liabilities [Member] | ||
Summaries of Significant Accounting Policies (Details) - Schedule of foreign currency translation [Line Items] | ||
Description of foreign currency translation | period end exchange rate | |
Revenue and expenses [Member] | ||
Summaries of Significant Accounting Policies (Details) - Schedule of foreign currency translation [Line Items] | ||
Description of foreign currency translation | period average | |
RMB [Member] | Assets and liabilities [Member] | Minimum [Member] | ||
Summaries of Significant Accounting Policies (Details) - Schedule of foreign currency translation [Line Items] | ||
Foreign currency translation | 6.6977 | 6.4579 |
RMB [Member] | Revenue and expenses [Member] | Minimum [Member] | ||
Summaries of Significant Accounting Policies (Details) - Schedule of foreign currency translation [Line Items] | ||
Foreign currency translation | 6.4787 | 6.4717 |
HKD [Member] | Assets and liabilities [Member] | Maximum [Member] | ||
Summaries of Significant Accounting Policies (Details) - Schedule of foreign currency translation [Line Items] | ||
Foreign currency translation | 7.8467 | 7.7652 |
HKD [Member] | Revenue and expenses [Member] | Maximum [Member] | ||
Summaries of Significant Accounting Policies (Details) - Schedule of foreign currency translation [Line Items] | ||
Foreign currency translation | 7.8257 | 7.7614 |
Summaries of Significant Acco_5
Summaries of Significant Accounting Policies (Details) - Schedule of estimated useful lives for property and equipment categories - Minimum [Member] | 6 Months Ended |
Jun. 30, 2022 | |
Transportation instrument [Member] | |
Summaries of Significant Accounting Policies (Details) - Schedule of estimated useful lives for property and equipment categories [Line Items] | |
Estimated useful lives for property and equipment | 5 years |
Office equipment [Member] | |
Summaries of Significant Accounting Policies (Details) - Schedule of estimated useful lives for property and equipment categories [Line Items] | |
Estimated useful lives for property and equipment | 5 years |
Summaries of Significant Acco_6
Summaries of Significant Accounting Policies (Details) - Schedule of fair value hierarchy our financial assets and liabilities - Warrant liability [Member] | Jun. 30, 2022 USD ($) |
Summaries of Significant Accounting Policies (Details) - Schedule of fair value hierarchy our financial assets and liabilities [Line Items] | |
Warrant liability | |
Level 1 [Member] | |
Summaries of Significant Accounting Policies (Details) - Schedule of fair value hierarchy our financial assets and liabilities [Line Items] | |
Warrant liability | |
Level 2 [Member] | |
Summaries of Significant Accounting Policies (Details) - Schedule of fair value hierarchy our financial assets and liabilities [Line Items] | |
Warrant liability | |
Level 3 [Member] | |
Summaries of Significant Accounting Policies (Details) - Schedule of fair value hierarchy our financial assets and liabilities [Line Items] | |
Warrant liability |
Summaries of Significant Acco_7
Summaries of Significant Accounting Policies (Details) - Schedule of changes in warrant liability | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Schedule Of Changes In Warrant Liability Abstract | |
Balance at January 1, 2022 | $ 7 |
Change in fair value of warrant liability | (7) |
Balance at June 30, 2022 |
Discontinued Operations (Detail
Discontinued Operations (Details) | 6 Months Ended |
Jun. 30, 2022 shares | |
Discontinued Operations and Disposal Groups [Abstract] | |
Total equity, percentage | 70% |
Registrant’s common stock | 5,392,000 |
Discontinued Operations (Deta_2
Discontinued Operations (Details) - Schedule of discontinued operations in relation to Jiarun hospital reported in the consolidated statements of operations - Discontinued Operations [Member] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Discontinued Operations (Details) - Schedule of discontinued operations in relation to Jiarun hospital reported in the consolidated statements of operations [Line Items] | ||||
Net Sales | $ 11,740,600 | $ 15,619,411 | $ 19,066,834 | |
Operating costs and expenses | 10,306,450 | 12,023,149 | 16,895,867 | |
Earnings from operations before other income and income taxes | 1,434,150 | 3,596,262 | 2,170,967 | |
Other income(loss) | (36,054,805) | (32,825) | (36,061,556) | (36,601) |
Loss from operations before income taxes | (36,054,805) | 1,401,325 | (32,465,294) | 2,134,366 |
Income tax | 376,723 | 928,376 | 583,307 | |
Net income from discontinued operations | $ (36,054,805) | $ 1,024,602 | $ (33,393,670) | $ 1,551,059 |
Discontinued Operations (Deta_3
Discontinued Operations (Details) - Schedule of major classes of assets and liabilities of discontinued operations of Jiarun hospital reported in the consolidated balance sheets - Discontinued Operations [Member] - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Discontinued Operations (Details) - Schedule of major classes of assets and liabilities of discontinued operations of Jiarun hospital reported in the consolidated balance sheets [Line Items] | ||
Cash and cash equivalents | $ 826,124 | |
Accounts receivable, net | 7,544,033 | |
Inventories | 1,771,158 | |
Other receivables | 83,685 | |
Prepayments | 2,812,156 | |
Amount due from related parties | 337,597 | |
Deferred expenses | 461,331 | |
Current assets of discontinued operations | 13,836,084 | |
Construction in progress | 3,240,774 | |
Property and equipment, net | 33,162,817 | |
Long term deferred expenses | 2,117,763 | |
Deposits for capital leases | 967,950 | |
Right-of-use assets | 22,337,517 | |
Non-current assets of discontinued operations | 61,826,821 | |
Accounts payable | 12,366,017 | |
Notes payable | 629,050 | |
Deposits received | 3,894 | |
Amount due to related parties | (1,455,677) | |
Other payable | 68,425 | |
Deferred tax payable | 308,491 | |
Tax payable | 420,796 | |
Payroll payable | 1,058,618 | |
Lease obligations - current portion | 2,676,956 | |
Current liabilities of discontinued operations | 16,076,570 | |
Lease obligations | 20,380,899 | |
Deferred tax payable | 3,993,209 | |
Other capital lease payable | 616,955 | |
Non-current liabilities of discontinued operations | $ 24,991,063 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expenses | $ 1,505 | $ 1,505 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of property and equipment - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total fixed assets at cost | $ 45,974 | |
Accumulated depreciation | (1,456) | |
Total fixed assets, net | 44,518 | |
Transportation equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets at cost | 45,180 | |
Office equipment and others [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets at cost | $ 794 |
Right-of-Use Assets and Lease_3
Right-of-Use Assets and Lease Liabilities (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Right-of-Use Assets and Lease Liabilities [Abstract] | |||||
Operating lease expense | $ 1,528 | ||||
Lease payment term | 23 months | ||||
Additional net lease assets | $ 26,970 | $ 26,970 | |||
Additional net lease liabilities | 26,970 | 26,970 | |||
Operating lease expense | 6,112 | $ 280,523 | 6,122 | $ 549,727 | |
Discontinued operations | $ 280,523 | $ 549,727 |
Right-of-Use Assets and Lease_4
Right-of-Use Assets and Lease Liabilities (Details) - Schedule of unaudited condensed consolidated balance sheet | Jun. 30, 2022 USD ($) |
Assets | |
Operating lease assets | $ 26,970 |
Total | 26,970 |
Liabilities | |
Operating lease liabilities- Current | 16,790 |
Operating lease liabilities- Long-term | 10,180 |
Total | $ 26,970 |
Right-of-Use Assets and Lease_5
Right-of-Use Assets and Lease Liabilities (Details) - Schedule of future annual minimum lease payments for non-cancellable operating leases | Jun. 30, 2022 USD ($) |
Schedule Of Future Annual Minimum Lease Payments For Non Cancellable Operating Leases Abstract | |
2022 | $ 8,292 |
2023 | 17,205 |
2024 | 1,473 |
Total | $ 26,970 |
Right-of-Use Assets and Lease_6
Right-of-Use Assets and Lease Liabilities (Details) - Schedule of right-of-use assets | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Schedule Of Right Of Use Assets Abstract | |
Lease assets | $ 33,082 |
Accumulated amortization | (6,112) |
Total right-of-use assets, net | $ 26,970 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Details) | 12 Months Ended |
Dec. 31, 2019 shares | |
Auctus Fund, LLC [Member] | |
Derivative Financial Instruments (Details) [Line Items] | |
Common stock, shares | 21,000 |
Income Tax Expense (Details)
Income Tax Expense (Details) | 6 Months Ended |
Jun. 30, 2022 | |
United States of America [Member] | |
Income Tax Expense (Details) [Line Items] | |
Percentage of tax rate | 21% |
Hong Kong [Member] | |
Income Tax Expense (Details) [Line Items] | |
Percentage of tax rate | 16.50% |
PRC [Member] | |
Income Tax Expense (Details) [Line Items] | |
Percentage of tax rate | 25% |
Income Tax Expense (Details) -
Income Tax Expense (Details) - Schedule of components of the allowance for US income tax | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
United States [Member] | |
Income Tax Expense (Details) - Schedule of components of the allowance for US income tax [Line Items] | |
Loss before income tax | $ 792,193 |
Tax rate | 166,361 |
Disallowed tax losses | (166,361) |
Income tax expense | |
Hong Kong [Member] | |
Income Tax Expense (Details) - Schedule of components of the allowance for US income tax [Line Items] | |
Loss before income tax | |
Tax rate | |
Disallowed tax losses | |
Income tax expense | |
PRC [Member] | |
Income Tax Expense (Details) - Schedule of components of the allowance for US income tax [Line Items] | |
Income tax expense | |
Income tax: 2022 deferred | |
Tax expense from continuing operation |
Income Tax Expense (Details) _2
Income Tax Expense (Details) - Schedule of income tax reconciliation | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Schedule Of Income Tax Reconciliation Abstract | |
Income tax at statutory rate | |
Tax expense from continuing operation |
Related Party Transactions (Det
Related Party Transactions (Details) - shares | 6 Months Ended | ||
Apr. 28, 2022 | Jun. 30, 2022 | May 05, 2022 | |
Related Party Transactions (Details) [Line Items] | |||
Shares issued | 39,130,000 | ||
Acquired shares | 8,000,000 | ||
Zhong Zhuowei [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Issued common stock percentage | 80.70% | ||
Common stock percentage | 70% | 80.70% | |
Owned shares of common stock | 5,392,000 | 47,130,000 | |
Zhang Junsheng [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Common stock percentage | 70% | 0% |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of amount due to related parties - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Related Party Transactions (Details) - Schedule of amount due to related parties [Line Items] | ||
Amount due to related parties | $ 13,649 | |
Zhong Zhuowei [Member] | ||
Related Party Transactions (Details) - Schedule of amount due to related parties [Line Items] | ||
Amount due to related parties | $ 13,649 |
Related Party Transactions (D_3
Related Party Transactions (Details) - Schedule of operating expenses by related parties - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 | |
Stock-based compensation paid to: | |||
Zhong Zhuowei | [1] | $ 81,822 | |
[1]Zhong Zhuowei (“Zhong”) is major shareholder holding 80.7% and 0% of the Company’s issued and outstanding common stock as of June 30, 2022 and June 30, 2021, respectively. On May 5, 2022, the company issued 39,130,000 shares of its common stock to Zhong Zhuowei. Under “Agreement on the establishment of Laidian technology (Zhongshan) Co., Ltd.” to serve as a management and setup the Laidian. As Mr. Zhong had previously acquired 8,000,000 shares in private transactions, he owned 47,130,000 shares (80.7%) of the Company’s common stock as on May 5, 2022. |
Basic and Diluted Earnings Pe_3
Basic and Diluted Earnings Per Share (Details) - Schedule of basic net income per share - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator: | ||||
Net income(loss) available to common stockholders (in Dollars) | $ (33,543,279) | $ 1,519,009 | ||
Net income(loss) from continued operations (in Dollars) | (149,609) | (32,050) | ||
Net income(loss) from discontinued operations (in Dollars) | $ (33,393,670) | $ 1,551,059 | ||
Denominator: | ||||
Basic weighted-average number of shares outstanding (in Shares) | 43,872,480 | 18,297,296 | 31,250,525 | 18,271,814 |
Diluted weighted-average number of shares outstanding (in Shares) | 43,872,480 | 18,507,296 | 31,250,525 | 18,481,814 |
Net income(loss) per share of common stock | ||||
Basic EPS | $ (0.8247) | $ 0.0559 | $ (1.0734) | $ 0.0831 |
Diluted EPS | (0.8247) | 0.0553 | (1.0734) | 0.0822 |
Net income(loss) from continuing operations per share of common stock | ||||
Basic EPS | (0.0029) | (0.0001) | (0.0048) | (0.0018) |
Diluted EPS | (0.0029) | (0.0001) | (0.0048) | (0.0017) |
Net income(loss) from discontinuing operations per share of common stock | ||||
Basic EPS | (0.8218) | 0.056 | (1.0686) | 0.0849 |
Diluted EPS | $ (0.8218) | $ 0.0554 | $ (1.0686) | $ 0.0839 |
Common Stock (Details)
Common Stock (Details) - USD ($) | 1 Months Ended | ||||
May 05, 2022 | Mar. 17, 2022 | Apr. 28, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Common Stock (Details) [Line Items] | |||||
Owned percentage | 100% | ||||
Shares issued | 39,130,000 | ||||
Acquired shares | 8,000,000 | ||||
Owned shares | 47,130,000 | ||||
Common stock percentage | 80.70% | ||||
Total shares issued | 6,000,000 | ||||
Common stock (in Dollars) | $ 60,000 | ||||
Price per share (in Dollars per share) | $ 0.01 | ||||
Transfer agreement description | On April 28, 2022, Runteng entered into an agreement regarding a transfer of Harbin Jiarun Hospital Co., Ltd.’s Equity (the “Transfer Agreement”) with Zhang Junsheng. Pursuant to the Transfer Agreement, Runteng transferred to Mr. Zhang equity in Harbin Jiarun Hospital Co., Ltd. (“Jiarun Hospital”) representing 70% of the total equity in Jiarun Hospital and Mr. Zhang transferred to Runteng 5,392,000 shares of the Company’s common stock. On May 27, 2022, the company cancelled 5,392,000 shares of its common stock from Zhang Junsheng. Since this transaction required certain authoritative approval before effective, the publication of these transactions were delay so as to obtain all parties consent and advance authoritative approval. As of May 27, 2022, the issued share balance of the company was 58,366,569, the balance of the number of shares of Mr. Zhang and Mr. Zhong were nil (0%) and 4,7130,000(80.7%), respectively. | ||||
Common stock, shares issued | 58,366,569 | 18,628,569 | |||
Common stock, shares outstanding | 58,366,569 | 18,628,569 | |||
Zhong Zhuowei [Member] | |||||
Common Stock (Details) [Line Items] | |||||
Shares issued | 39,130,000 |