Cover
Cover | 3 Months Ended |
Mar. 31, 2023 | |
Cover [Abstract] | |
Document Type | S-1/A |
Amendment Flag | true |
Amendment Description | Amendment No.5 |
Entity Registrant Name | AIXIN LIFE INTERNATIONAL, INC. |
Entity Central Index Key | 0000835662 |
Entity Primary SIC Number | 5149 |
Entity Tax Identification Number | 84-1085935 |
Entity Incorporation, State or Country Code | CO |
Entity Address, Address Line One | Hongxing International Business Building 2, 14th FL |
Entity Address, Address Line Two | No. 69 Qingyun South Ave. |
Entity Address, Address Line Three | Jinjiang District |
Entity Address, City or Town | Chengdu City |
City Area Code | (86) |
Local Phone Number | 313-6732526 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Current assets | |||
Cash and equivalents | $ 496,918 | $ 510,128 | $ 8,556,642 |
Restricted cash | 85,516 | 109,772 | 44,211 |
Accounts receivable, including related party, net | 431,927 | 562,581 | 45,923 |
Other receivables and prepaid expenses | 73,653 | 42,631 | 143,281 |
Advances to suppliers | 153,542 | 168,523 | 162,969 |
Inventory, net | $ 683,035 | $ 499,252 | 233,454 |
Other Receivable, after Allowance for Credit Loss, Related and Nonrelated Party Status [Extensible Enumeration] | Related Party [Member] | Related Party [Member] | |
Due from related parties | $ 101,979 | $ 83,102 | $ 19,055 |
Other Receivable, after Allowance for Credit Loss, Current, Related and Nonrelated Party Status [Extensible Enumeration] | Due from related parties | Due from related parties | |
Total current assets | 2,026,570 | $ 1,975,989 | $ 9,205,535 |
Property and equipment, net | 1,878,012 | 1,971,793 | 290,148 |
Intangible asset, net | 1,092 | 1,269 | 1,940 |
Goodwill, net | |||
Deferred tax asset | 15,168 | 15,556 | 18,795 |
Security deposit | 87,367 | 86,992 | 94,153 |
Operating lease right-of-use assets | 811,021 | 999,285 | 2,049,775 |
Total assets | 4,819,230 | 5,050,884 | 11,660,346 |
Current liabilities | |||
Accounts payable | 440,237 | 398,469 | 406,163 |
Accounts payable-related party | 165,958 | ||
Unearned revenue | 332,084 | 139,502 | 171,408 |
Taxes payable | 44,583 | 104,100 | 232,637 |
Accrued liabilities and other payables | 2,232,267 | 2,356,490 | 752,400 |
Government grant | 954,467 | 950,371 | |
Loan from third parties | 87,367 | 86,992 | 94,153 |
Operating lease liabilities | $ 748,331 | $ 883,583 | $ 848,230 |
Other Liability, Current, Related and Nonrelated Party Status [Extensible Enumeration] | Related Party [Member] | Related Party [Member] | Related Party [Member] |
Due to related parties | $ 558,648 | $ 236,882 | $ 1,947,154 |
Total current liabilities | 5,397,984 | 5,322,347 | 4,452,145 |
Operating lease liabilities - non-current | 179,631 | 194,725 | 1,138,710 |
Total liabilities | 5,577,615 | 5,517,072 | 5,590,855 |
Stockholders’ deficit | |||
Undesignated preferred stock, $0.001 par value, 20,000,000 shares authorized, none issued and outstanding | |||
Common stock, par value $0.00001 per share, 500,000,000 shares authorized; 24,999,842 shares issued and outstanding as of March 31, 2023 and December 31, 2022 | 250 | 250 | 250 |
Additional paid in capital | 14,551,468 | 14,458,583 | 14,087,043 |
Statutory reserve | 151,988 | 151,988 | 151,988 |
Accumulated deficit | (15,659,482) | (15,249,858) | (8,880,613) |
Accumulated other comprehensive income | 197,391 | 172,849 | 710,823 |
Total stockholders’ deficit | (758,385) | (466,188) | 6,069,491 |
Total liabilities and stockholders’ deficit | $ 4,819,230 | $ 5,050,884 | $ 11,660,346 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | |||
Undesignated preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 |
Undesignated preferred stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 |
Undesignated preferred stock, shares outstanding | 0 | 0 | 0 |
Undesignated preferred stock, shares issued | 0 | 0 | 0 |
Common stock, par value | $ 0.00001 | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 |
Common stock, shares issued | 24,999,842 | 24,999,842 | 24,999,842 |
Common stock, shares outstanding | 24,999,842 | 24,999,842 | 24,999,842 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Sales revenue: | ||||
Total revenue, net | $ 754,713 | $ 418,678 | $ 2,708,560 | $ 3,066,233 |
Operating costs and expenses | ||||
Cost of goods sold | 175,488 | 124,524 | 1,103,160 | 535,485 |
Hotel operating costs | 477,794 | 511,619 | 1,739,948 | 744,594 |
Selling | 191,273 | 189,586 | 787,637 | 470,798 |
General and administrative | 413,059 | 244,796 | 1,395,008 | 1,033,830 |
(Reversal of) provision for bad debts | (119,274) | (63,076) | ||
(Reversal of) provision for bad debts | (43,816) | 27,422 | ||
Stock-based compensation | 92,885 | 92,885 | 371,540 | 371,540 |
Total operating costs and expenses | 1,306,683 | 1,190,832 | 5,278,019 | 3,093,171 |
Loss from operations | (551,970) | (772,154) | (2,569,459) | (26,938) |
Non-operating income (expenses) | ||||
Interest income | 289 | 1,328 | 4,876 | 4,113 |
Impairment loss | (3,823,770) | |||
Other income | 24,861 | 19,434 | 51,856 | 63,064 |
Other expenses | (2,507) | (197) | (31,651) | (33,154) |
Total non-operating income, net | 22,643 | 20,565 | (3,798,689) | 34,023 |
Loss before income tax | (529,327) | (751,589) | (6,368,148) | 7,085 |
Income tax expense | 457 | 492 | 1,097 | 274,321 |
Net loss | (529,784) | (752,081) | (6,369,245) | (267,236) |
Other comprehensive items | ||||
Foreign currency translation gain | 24,542 | 31,864 | (537,974) | 122,283 |
Comprehensive loss | $ (505,242) | $ (720,217) | $ (6,907,219) | $ (144,953) |
Loss per share - basic and diluted | $ (0.021) | $ (0.030) | $ (0.255) | $ (0.011) |
Weighted average shares outstanding | 24,999,842 | 24,999,842 | 24,999,842 | 24,999,842 |
Product [Member] | ||||
Sales revenue: | ||||
Total revenue, net | $ 422,296 | $ 174,992 | $ 1,851,676 | $ 742,624 |
Advertising [Member] | ||||
Sales revenue: | ||||
Total revenue, net | 1,944,811 | |||
Room Revenue [Member] | ||||
Sales revenue: | ||||
Total revenue, net | 177,259 | 30,993 | 262,605 | 114,086 |
Food And Beverage Revenues [Member] | ||||
Sales revenue: | ||||
Total revenue, net | 133,738 | 180,794 | 475,746 | 201,755 |
Other [Member] | ||||
Sales revenue: | ||||
Total revenue, net | $ 21,420 | $ 31,899 | $ 118,533 | $ 62,957 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Common Stock [Member] | ||||
Statement [Line Items] | ||||
Balance | $ 250 | $ 250 | $ 250 | $ 250 |
Balance, shares | 24,999,842 | 24,999,842 | 24,999,842 | 24,999,842 |
Stock-based compensation | ||||
Acquisition of subsidiaries | ||||
Debt forgiven by major shareholder | ||||
Net loss | ||||
Foreign currency translation | ||||
Disposal of subsidiary | ||||
Balance | $ 250 | $ 250 | $ 250 | $ 250 |
Balance, shares | 24,999,842 | 24,999,842 | 24,999,842 | 24,999,842 |
Additional Paid-in Capital [Member] | ||||
Statement [Line Items] | ||||
Balance | $ 14,458,583 | $ 14,087,043 | $ 14,087,043 | $ 11,116,015 |
Stock-based compensation | 92,885 | 92,885 | 371,540 | 371,540 |
Acquisition of subsidiaries | (4,313,025) | |||
Debt forgiven by major shareholder | 6,912,513 | |||
Net loss | ||||
Foreign currency translation | ||||
Disposal of subsidiary | ||||
Balance | 14,551,468 | 14,179,928 | 14,458,583 | 14,087,043 |
Statutory Reserves [Member] | ||||
Statement [Line Items] | ||||
Balance | 151,988 | 151,988 | 151,988 | 151,988 |
Stock-based compensation | ||||
Acquisition of subsidiaries | ||||
Debt forgiven by major shareholder | ||||
Net loss | ||||
Foreign currency translation | ||||
Disposal of subsidiary | ||||
Balance | 151,988 | 151,988 | 151,988 | 151,988 |
Retained Earnings [Member] | ||||
Statement [Line Items] | ||||
Balance | (15,249,858) | (8,880,613) | (8,880,613) | (4,964,711) |
Stock-based compensation | ||||
Acquisition of subsidiaries | (3,648,666) | |||
Debt forgiven by major shareholder | ||||
Net loss | (529,784) | (752,081) | (6,369,245) | (267,236) |
Foreign currency translation | ||||
Disposal of subsidiary | 120,160 | |||
Balance | (15,659,482) | (9,632,694) | (15,249,858) | (8,880,613) |
AOCI Attributable to Parent [Member] | ||||
Statement [Line Items] | ||||
Balance | 172,849 | 710,823 | 710,823 | 588,540 |
Stock-based compensation | ||||
Acquisition of subsidiaries | ||||
Debt forgiven by major shareholder | ||||
Net loss | ||||
Foreign currency translation | 24,542 | 31,864 | (537,974) | 122,283 |
Disposal of subsidiary | ||||
Balance | 197,391 | 742,687 | 172,849 | 710,823 |
Balance | (466,188) | 6,069,491 | 6,069,491 | 6,892,082 |
Stock-based compensation | 92,885 | 92,885 | 371,540 | 371,540 |
Acquisition of subsidiaries | (7,961,691) | |||
Debt forgiven by major shareholder | 6,912,513 | |||
Net loss | (529,784) | (752,081) | (6,369,245) | (267,236) |
Foreign currency translation | 24,542 | 31,864 | (537,974) | 122,283 |
Disposal of subsidiary | 120,160 | |||
Balance | $ (758,385) | $ 5,442,159 | $ (466,188) | $ 6,069,491 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net loss | $ (529,784) | $ (752,081) | $ (6,369,245) | $ (267,236) |
Adjustments required to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | 104,561 | 29,639 | 185,565 | 96,106 |
(Reversal of) provision for bad debts | (43,816) | 27,422 | 45,953 | |
Provision for inventory reserve | 18,502 | 54,899 | ||
Operating lease expense | 210,334 | 229,242 | 837,425 | 411,607 |
Stock-based compensation | 92,885 | 92,885 | 371,540 | 371,540 |
Deferred tax | 457 | 492 | 1,858 | (18,570) |
Impairment loss | 3,823,770 | |||
Changes in assets and liabilities: | ||||
Accounts receivable | 176,944 | (52,174) | (425,961) | (7,731) |
Accounts receivable - related parties | (42) | 13,618 | ||
Other receivables and prepaid expenses | (50,416) | (6,811) | 109,439 | 94,992 |
Advances to suppliers | 49,587 | 9,416 | 103,016 | 1,372 |
Inventory | (200,787) | (18,875) | 150,872 | 69,738 |
Accounts payable | 42,332 | 2,564 | (71,153) | (27,341) |
Accounts payable - related party | (167,209) | 140,608 | ||
Unearned revenue | 192,689 | 12,940 | (24,401) | (122,897) |
Taxes payable | (59,279) | 593 | (137,711) | (57,467) |
Payment of lease liabilities | (186,473) | (203,673) | (710,865) | (473,508) |
Accrued liabilities and other payables | (123,208) | 124,901 | 289,868 | (142,027) |
Net cash used in operating activities | (472,681) | (503,520) | (1,624,565) | (57,804) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Cash acquired from acquisition of subsidiaries | 446,381 | 87,448 | ||
Cash disposed at disposal of subsidiary | (3,435) | |||
Purchase of property and equipment | (1,746) | (156,723) | (1,341) | |
Payment for acquisition of subsidiaries | (3,812,027) | (4,517,620) | ||
Net cash used in investing activities | (5,181) | (3,522,369) | (4,431,513) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Net proceeds from related parties | 437,560 | 504,629 | (2,389,593) | 1,204,442 |
Net proceeds from related parties | ||||
Repayment of loan from third parties | (368,648) | |||
Capital contribution | 4,386,070 | |||
Net cash provided by financing activities | 437,560 | 504,629 | (2,389,593) | 5,221,864 |
EFFECT OF EXCHANGE RATE CHANGE ON CASH | 2,836 | 46,373 | (444,426) | 191,617 |
NET INCREASE (DECREASE) IN CASH & RESTRICTED CASH | (37,466) | 47,482 | (7,980,953) | 924,164 |
CASH & RESTRICTED CASH, BEGINNING OF PERIOD | 619,900 | 8,600,853 | 8,600,853 | 7,676,689 |
CASH & RESTRICTED CASH, END OF PERIOD | 582,434 | 8,648,335 | 619,900 | 8,600,853 |
Supplemental Cash flow data: | ||||
Income tax paid | 71,163 | 404,276 | ||
Interest paid | ||||
Non-cash investing and financing activities | ||||
Capital contribution from forgiveness of related party loan | $ 2,446,238 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
ORGANIZATION AND DESCRIPTION OF BUSINESS | 1. ORGANIZATION AND DESCRIPTION OF BUSINESS Aixin Life International, Inc. (the “Company” or “Aixin Life” or “we”) was incorporated under the laws of the State of Colorado on December 30, 1987. On February 2, 2017, Mr. Quanzhong Lin (Mr. Lin) purchased 65.0 300,000 On December 12, 2017, pursuant to a Share Exchange Agreement, in consideration for all of the outstanding shares of AiXin (BVI) International Group Co., Ltd. a British Virgin Islands corporation (“AiXin BVI”), the Company issued to Mr. Lin, the sole stockholder of AiXin BVI, shares of common stock then representing 71 As a result of the Share Exchange, AiXin BVI became the Company’s wholly-owned subsidiary, and the Company now owns all of the outstanding shares of HK AiXin International Group Co., Limited, a Hong Kong limited company (“AiXin HK”), which in turn owns all of the outstanding shares of Chengdu AiXinZhonghong Biological Technology Co., Ltd., a Chinese limited company (“AiXinZhonghong”), which markets and sells premium-quality nutritional products in China. AiXin BVI was incorporated on September 21, 2017 as a holding company and AiXin HK was established in Hong Kong on February 25, 2016 as an intermediate holding company. AiXinZhonghong was established in the People’s Republic of China (“PRC”) on March 4, 2013, and on May 27, 2017, the local government of the PRC issued a certificate of approval regarding the foreign ownership of AiXinZhonghong by AiXin HK. Neither AiXin BVI nor AiXin HK had operations prior to December 12, 2017. For accounting purposes, the acquisition of AiXin BVI was accounted for as a reverse acquisition and treated as a recapitalization of the Company effected by a share exchange, with AiXin BVI as the accounting acquirer. Since neither AiXin BVI nor AiXin HK had operations prior to December 12, 2017, the historical consolidated financial statements of AiXinZhonghong are now the historical consolidated financial statements of the Company. The assets and liabilities of AiXinZhonghong were brought forward at their book value and no goodwill was recognized. Effective February 1, 2018, the Company changed its name to AiXin Life International, Inc. (“Aixin Life”). The Company, through its indirectly owned AiXinZhonghong subsidiary, develops and distributes consumer products by offering a line of nutritional products. The Company sells the products through exhibition events, conferences, and person-to-person marketing. Beginning in 2019, the Company began to provide advertising services to clients who engaged the Company to help distribute their products. The Company’s business mainly focuses on a proactive approach to its customers such as hosting events for clients, which it believes is ideally suited to marketing its products because sales of nutrition products are strengthened by ongoing personal contact and support, coaching and education of its clients, as to the benefits of a healthy and active lifestyle. On May 25, 2021, AiXin HK entered into an Equity Transfer Agreement (the “Hotel Purchase Agreement”) with Chengdu Aixin Shangyan Hotel Management Co., Ltd (“Aixin Shangyan Hotel”), and its two shareholders Quanzhong Lin and Yirong Shen (“Transferor”). Pursuant to the Hotel Purchase Agreement, Aixin Life purchased 100 7,598,887 1.16 On June 2, 2021, AiXin HK entered into an Equity Transfer Agreement (the “Pharmacies Purchase Agreement”) with Chengdu Aixintang Pharmacy Co., Ltd. and certain affiliated entities, each of which operates a pharmacy (together, “Aixintang Pharmacies”) and its three shareholders, Quanzhong Lin, Ting Li and Xiao Ling Li (“Transferor”). Mr. Lin owned in excess of 95% of the outstanding equity the Aixintang Pharmacies. The remaining equity interest was owned by Ting Li and Xiao Ling Li 34,635,845 5.31 On July 19, 2022, HK Aixin entered into an Equity Transfer Agreement with Yunnan Shengshengyuan Technology Co., Ltd, (“Yunnan Shengshengyuan”) and Yun Chen (together, the “Sellers”), the shareholders of Yunnan Runcangsheng Technology Company Ltd. (“Runcangsheng”). Yunnan Shengshengyuan owns in excess of 95% of the outstanding equity of Runcangsheng. The remaining equity interest is owned by Yun Chen 4,418,095 31,557,820 116,802 On February 17, 2023, the Company effected a 1 for 2 reverse stock split 0.00001 24,999,842 | 1. ORGANIZATION AND DESCRIPTION OF BUSINESS Aixin Life International, Inc. (the “Company” or “Aixin Life” or “we”) was incorporated under the laws of the State of Colorado on December 30, 1987 under the name Mercari Communications Group, Ltd (“Mercari”). On February 2, 2017, Mr. Quanzhong Lin (Mr. Lin) purchased 3,690,176 65.0 300,000 On December 12, 2017, the Company issued 28,419,075 As a result of the Share Exchange, AiXin BVI became the Company’s wholly-owned subsidiary, and the Company now owns all of the outstanding shares of HK AiXin International Group Co., Limited, a Hong Kong limited company (“AiXin HK”), which in turn owns all of the outstanding shares of Chengdu AiXinZhonghong Biological Technology Co., Ltd., a Chinese limited company (“AiXinZhonghong”), which markets and sells premium-quality nutritional products in China. AiXin BVI was incorporated on September 21, 2017 as a holding company and AiXin HK was established in Hong Kong on February 25, 2016 as an intermediate holding company. AiXinZhonghong was established in the People’s Republic of China (“PRC”) on March 4, 2013, and on May 27, 2017, the local government of the PRC issued a certificate of approval regarding the foreign ownership of AiXinZhonghong by AiXin HK. Neither AiXin BVI nor AiXin HK had operations prior to December 12, 2017. For accounting purposes, the acquisition of AiXin BVI was accounted for as a reverse acquisition and treated as a recapitalization of the Company effected by a share exchange, with AiXin BVI as the accounting acquirer. Since neither AiXin BVI nor AiXin HK had operations prior to December 12, 2017, the historical consolidated financial statements of AiXinZhonghong are now the historical consolidated financial statements of the Company. The assets and liabilities of AiXinZhonghong were brought forward at their book value and no goodwill was recognized. Effective February 1, 2018, the Company changed its name to AiXin Life International, Inc. (“Aixin Life”). The Company, through its indirectly owned AiXinZhonghong subsidiary, develops and distributes consumer products by offering a line of nutritional products. The Company sells the products through exhibition events, conferences, and person-to-person marketing. Beginning in 2019, the Company began to provide advertising services to clients who engaged the Company to help distribute their products. The Company’s business mainly focuses on a proactive approach to its customers such as hosting events for clients, which it believes is ideally suited to marketing its products because sales of nutrition products are strengthened by ongoing personal contact and support, coaching and education of its clients, as to the benefits of a healthy and active lifestyle. On May 25, 2021, AiXin HK entered into an Equity Transfer Agreement (the “Hotel Purchase Agreement”) with Chengdu Aixin Shangyan Hotel Management Co., Ltd (“Aixin Shangyan Hotel”), and its two shareholders Quanzhong Lin and Yirong Shen (“Transferor”). Pursuant to the Hotel Purchase Agreement, Aixin Life purchased 100 7,598,887 1.16 On June 2, 2021, AiXin HK entered into an Equity Transfer Agreement (the “Pharmacies Purchase Agreement”) with Chengdu Aixintang Pharmacy Co., Ltd. and certain affiliated entities, each of which operates a pharmacy (together, “Aixintang Pharmacies”) and its three shareholders, Quanzhong Lin, Ting Li and Xiao Ling Li (“Transferor”). Mr. Lin owned in excess of 95% of the outstanding equity the Aixintang Pharmacies. The remaining equity interest was owned by Ting Li and Xiao Ling Li. Pursuant to the Pharmacies Purchase Agreement, AiXin HK purchased all of the outstanding equity of Aixintang Pharmacies for an aggregate purchase price of RMB 34,635,845 5.31 On July 19, 2022, HK Aixin entered into an Equity Transfer Agreement with Yunnan Shengshengyuan Technology Co., Ltd, (“Yunnan Shengshengyuan”) and Yun Chen (together, the “Sellers”), the shareholders of Yunnan Runcangsheng Technology Company Ltd. (“Runcangsheng”). Yunnan Shengshengyuan owns in excess of 95% of the outstanding equity of Runcangsheng. The remaining equity interest is owned by Yun Chen. 4,418,095 31,557,820 116,802 On February 17, 2023 , the Company effected a 0.00001 per share. The Company has approximately 24,999,842 shares of outstanding common stock after the effect of reverse stock split. All share and earnings per share information has been retroactively adjusted to reflect the reverse stock split. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements are prepared in conformity with U.S. Generally Accepted Accounting Principles (“US GAAP”). The functional currency of AiXinZhonghong, Aixin Shangyan Hotel, Aixintang Pharmacies, and Runcangsheng is the Chinese Renminbi (“RMB”). The accompanying consolidated financial statements are translated from RMB and presented in U.S. dollars (“USD”). The consolidated financial statements include the accounts of the Company and its current wholly owned subsidiaries, AiXin HK, AiXinZhonghong, Aixin Shangyan Hotel, Aixintang Pharmacies, and Runcangsheng. Intercompany transactions and accounts were eliminated in consolidation. These unaudited interim financial statements should be read in conjunction with the annual consolidated financial statements and the accompanying notes contained in our Annual Report on Form 10-K for the year ended December 31, 2022. Unaudited Interim Financial Information These unaudited interim financial statements have been prepared in accordance with GAAP for interim financial reporting and the rules and regulations of the Securities and Exchange Commission that permit reduced disclosure for interim periods. Therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. In the opinion of management, all adjustments of a normal recurring nature necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented have been made. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the year ending December 31, 2023. Going Concern The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Company’s ability to operate profitably, to generate cash flows from operations, and to pursue financing arrangements to support its working capital requirements. The Company has suffered losses from operations of $ 551,970 and $ 772,154 for the three months ended March 31, 2023 and 2022, and 472,681 503,520 15,659,482 510,128 496,918 Management believes that it has developed a liquidity plan, as summarized below, that, if executed successfully, should provide sufficient liquidity to meet the Company’s obligations as they become due for a reasonable period of time, and allow the development of its core business. The plan includes: ● Gaining positive cash-inflow from operating activities through continuous cost reductions and the sales of higher margin products. ● Raising additional cash through loans from related parties and potential equity offerings. While the Company’s management believes that the measures described in the above liquidity plan will be adequate to satisfy its liquidity requirements for the twelve months after the date that these financial statements are issued, there is no assurance that the liquidity plan will be successfully implemented. Failure to successfully implement the liquidity plan may have a material adverse effect on its business, results of operations and financial position, and may adversely affect its ability to continue as a going concern. These consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded assets or the amounts and classification of liabilities or any other adjustments that might be necessary should the Company be unable to continue as a going concern. Covid – 19; The Invasion of Ukraine On March 11, 2020, the World Health Organization announced that infections caused by the corona virus disease of 2019 (“COVID-19”) had become pandemic. In furtherance of its zero-tolerance policy, the Government of China has adopted various regulations and orders, including mandatory quarantines, limits on the number of people that may gather in one location, closing non-essential businesses and travel bans to limit the spread of the disease. Many of these measures have been relaxed from time to time in various localities. However, beginning in the second half of 2021 to the end of 2022, the rate of COVID-19 cases has fluctuated in China and has increased in many provinces and cities including in Sichuan Province, where the Company is located. As a result of such increases there have been periodic short-term lockdowns and restrictions on travel in Sichuan Province. All of the Company’s operations, in particular its direct sales business and hotel, have been adversely impacted by the travel and work restrictions imposed on a temporary basis in China and Chengdu to limit the spread of COVID-19. China recently moved away from its reliance upon a “zero-tolerance” policy, it has been reported that the number of COVID-19 cases in China has surged after the government abandoned its zero-tolerance policy. It is likely that this sudden increase in COVID cases will cause many individuals to voluntarily restrict their travel which could adversely impact many industries in China. Moreover, the perception that Covid-19 and other infectious diseases are on the rise, may make some potential customers reluctant to attend large gatherings or meet with members of the Company’s sales team which could limit the Company’s sales growth. In response to COVID-19, the Company has implemented procedures to promote employee and customer safety. These measures will not significantly increase its operating costs. However, the Company cannot predict with certainty what measures may be taken by its suppliers and customers and the impact these measures may have on its future financial position, results of operations or cash flows. The invasion of Ukraine by the Russian Federation had an immediate impact on the global economy resulting in higher prices for oil and other commodities. The United States, United Kingdom, European Union and other countries responded to Russia’s invasion of Ukraine by imposing various economic sanctions and bans. Russia has responded with its own retaliatory measures. These measures have disrupted financial and economic markets. The global impact of these measures is continually evolving and cannot be predicted with certainty and there is no assurance that Russia’s invasion of Ukraine and responses thereto will not further disrupt the global economy and financial markets. While the invasion of Ukraine and responses thereto have not interrupted the Company’s operations, these or future developments resulting from the invasion of Ukraine could make it difficult to access debt and equity capital on attractive terms, if at all, and impact the Company’s ability to fund business activities, including proposed acquisitions. Use of Estimates In preparing consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates required by management, include the recoverability of long-lived assets, allowance for doubtful accounts, and the reserve for obsolete and slow-moving inventories. Actual results could differ from those estimates. Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation and had no effect on previously reported consolidated net income (loss) or accumulated deficit. Cash and Cash Equivalents For financial statement purposes, the Company considers all highly liquid investments with an original maturity of three months or less to be cash and cash equivalents. Restricted Cash The restricted cash was cash maintained in temporarily frozen bank accounts held by Aixintang Pharmacy and its branches by the court for a judgement against Aixintang Pharmacy which Aixintang Pharmacy is in the process of appealing (see Note 16 – litigation). Accounts Receivable The Company’s policy is to maintain an allowance for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. As of March 31, 2023 and December 31, 2022, the bad debt allowance was $ 230,076 272,550 The following table summarizes the activity related to the Company’s Accounts Receivable allowance for doubtful accounts for the three months ended March 31, 2023 and 2022: SCHEDULE OF ACCOUNTS RECEIVABLE ALLOWANCE FOR DOUBTFUL ACCOUNTS 2023 2022 For the Three Months ended March 31, 2023 2022 Beginning balance $ 272,550 $ 213,787 Provisions for bad debt - 27,422 Recoveries/Write offs (43,816 ) - Effect of translation 1,342 1,181 Ending balance $ 230,076 $ 242,390 Inventories Inventories mainly consists of health supplements, drugs, pharmaceutical and nutritional products, food and beverage, hotel supplies and consumables. Inventories are valued at the lower of average cost or market, cost being determined on a moving weighted average method at the end of the month. Management compares the cost of inventories with the net realizable value and an allowance is made for writing down inventories to market value, if lower. The Company recorded provision for inventory reserve of $ 18,502 0 Property and Equipment Property and equipment are stated at cost, less accumulated depreciation, and impairment losses, if any. Major repairs and betterments that significantly extend original useful lives or improve productivity are capitalized and depreciated over the period benefited. Maintenance and repairs are expensed as incurred. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line method for substantially all assets with 5 SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED LIVES Office furniture 5 Electronic equipment 2 3 Machinery 3 Leasehold improvements 3 Vehicles 5 Impairment of Long-Lived Assets Long-lived assets, which include property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, but at least annually. Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by it. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds its fair value. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Based on its review, the Company believes that, as of March 31, 2023 and December 31, 2022, there were no significant impairments of its long-lived assets. Goodwill The Company evaluates goodwill for impairment annually or more frequently when an event occurs or circumstances change that indicate the carrying value may not be recoverable. In testing goodwill for impairment, the Company may elect to utilize a qualitative assessment to evaluate whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment indicates that goodwill impairment is more likely than not, the Company performs a two-step impairment test. The Company tests goodwill for impairment under the two-step impairment test by first comparing the book value of net assets to the fair value of the reporting units. If the fair value is determined to be less than the book value or qualitative factors indicate that it is more likely than not that goodwill is impaired, a second step is performed to compute the amount of impairment as the difference between the estimated fair value of goodwill and the carrying value. The Company estimates the fair value of the reporting units using discounted cash flows. Forecasts of future cash flows are based on our best estimate of future net sales and operating expenses, based primarily on expected category expansion, pricing, market segment share, and general economic conditions. The Company completed the required testing of goodwill for impairment as of December 31, 2022, and determined that goodwill was impaired because of the current financial condition of the Company and the Company’s inability to generate future operating income without substantial sales volume increases, which are highly uncertain. Furthermore, the uncertainty of the future cash flows indicates that the recoverability of goodwill is not reasonably assured. The goodwill write-down was reflected as an impairment loss, $ 3,823,770 Income Taxes Income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company follows Accounting Standards Codification (“ASC”) Topic 740, which prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740 also provides guidance on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Under ASC Topic 740, when tax returns are filed, it is likely that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the consolidated financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in selling, general and administrative expenses in the statement of income. At March 31, 2023 and December 31, 2022, the Company did not take any uncertain positions that would necessitate recording a tax related liability. Revenue Recognition Revenue from sale of goods under Topic 606 ● executed contract(s) with customers that the Company believes is legally enforceable; ● identification of performance obligation in the respective contract; ● determination of the transaction price for each performance obligation in the respective contract; ● allocation of the transaction price to each performance obligation; and ● recognition of revenue only when the Company satisfies each performance obligation. The Company’s revenue recognition policies for its various operating segments are as follows: Products The Company’s revenue from sales of products is recognized when goods are delivered to the customer and no other obligation exists. The Company does not provide unconditional return or other concessions to the customer. The Company’s sales policy allows for the return of unopened products for cash after deducting certain service and transaction fees. As an alternative to the product return option, the customers have the option of asking for an exchange for products with the same value. Sales revenue of AiXin Zhonghong represents the invoiced value of goods, net of value-added taxes (“VAT”). All of the Company’s products sold in China are subject to the PRC VAT of 13 Hotel Hotel revenues are primarily derived from the rental of rooms, food and beverage sales and other ancillary goods and services, including but not limited to souvenir, parking and conference reservation. Each of these products and services represents a distinct performance obligation and, in exchange for these services, the Company receives fixed amounts based on published rates or negotiated contracts. Payment is due in full at the time when the services are rendered or the goods are provided. Room rental revenue is recognized on a daily basis when rooms are occupied. Food and beverage revenue and other goods and services revenue are recognized when they have been delivered or rendered to the guests as the respective performance obligations are satisfied. All of the hotel’s goods sold in China are subject to the PRC VAT of 6 Pharmacies The Company’s retail drugstores (Aixintang Pharmacies) recognize revenue at the time the customer takes possession of the merchandise. For pharmacy sales, each prescription claim is its own arrangement with the customer and is a performance obligation. Aixintang Pharmacies generally receives payments from customers as it satisfies its performance obligations. The Company records a receivable when it has an unconditional right to receive payment and only the passage of time is required before payment is due. Sales revenue represents the invoiced value of goods, net of VAT. All of Aixintang Pharmacies’ products sold in China are eligible for the PRC VAT of 0 Manufacture and Sale The Company’s new subsidiary Runcangsheng recognizes revenue at the time products are shipped as this satisfies its performance obligation. The Company records a receivable for its sales when it has an unconditional right to receive payment and only the passage of time is required before payment is due. Sales revenue represents the invoiced value of goods, net of value-added taxes (“VAT”). All of the Company’s products sold in China are subject to the PRC VAT of 13 Unearned Revenue The Company’s unearned revenue primarily consists of advances received from customers for the purchase of products prior to the delivery of goods, and for the rental of hotel rooms prior to the delivery of service. The delivery of products and room rental services is (normally within one year) based upon contract terms and customer demand. Concentration of Credit Risk The operations of the Company are in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by the political, economic, and legal environments in the PRC, and by the general state of the PRC economy. The Company has cash on hand and demand deposits in accounts maintained with state-owned banks within the PRC. Cash in state-owned banks is covered by insurance up to RMB 500,000 72,500 During the three months ended March 31, 2023 and 2022, the Company had no customer that accounted for over 10 During the three months ended March 31, 2023, the Company had two suppliers that accounted for 17 15 During the three months ended March 31, 2022, the Company had no supplier that accounted for over 10 Leases The Company determines if an arrangement is a lease at inception under FASB ASC Topic 842, Right of Use Assets (“ROU”) and lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As most of its leases do not provide an implicit rate, it uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The ROU assets include adjustments for prepayments and accrued lease payments. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise such options. ROU assets are reviewed for impairment when indicators of impairment are present. ROU assets from operating and finance leases are subject to the impairment guidance in ASC 360, Property, Plant, and Equipment, as ROU assets are long-lived nonfinancial assets. ROU assets are tested for impairment individually or as part of an asset group if the cash flows related to the ROU asset are not independent from the cash flows of other assets and liabilities. An asset group is the unit of accounting for long-lived assets to be held and used, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. The Company recognized no impairment of ROU assets as of March 31, 2023 and December 31, 2022. Operating leases are included in operating lease ROU and operating lease liabilities (current and non-current), on the consolidated balance sheets. Statement of Cash Flows In accordance with ASC Topic 230, “Statement of Cash Flows,” Fair Value of Financial Instruments The carrying amounts of certain of the Company’s financial instruments, including cash and equivalents, accrued liabilities and accounts payable, approximate their fair value due to their short maturities. FASB ASC Topic 825, “Financial Instruments,” requires disclosure of the fair value of financial instruments held by the Company. The carrying amounts reported in the consolidated balance sheets for current liabilities each qualify as financial instruments and are a reasonable estimate of their fair value because of the short period of time between the origination of such instruments and their expected realization and the current market rate of interest. Fair Value Measurements and Disclosures ASC Topic 820, “Fair Value Measurements and Disclosures,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The three levels are defined as follow: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. As of March 31, 2023 and December 31, 2022, the Company did not identify any assets and liabilities that are required to be presented on the balance sheet at fair value. Foreign Currency Translation and Comprehensive Income (Loss) The functional currency of the Company is RMB. For financial reporting purposes, RMB is translated into USD as the reporting currency. Assets and liabilities are translated at the exchange rate in effect at the balance sheet dates. Revenues and expenses are translated at the average rate of exchange prevailing during the reporting period. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of stockholders’ equity as “Accumulated other comprehensive income”. Gains and losses resulting from foreign currency transactions are included in income. There was no significant fluctuation in the exchange rate for the conversion of RMB to USD after the balance sheet date. The Company uses FASB ASC Topic 220, “Comprehensive Income”. Comprehensive loss is comprised of net loss and all changes to the statements of stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. Comprehensive income (loss) for the three months ended March 31, 2023 and 2022 consisted of net income (loss) and foreign currency translation adjustments. Earnings per Share Basic income (loss) per share is computed on the basis of the weighted average number of common shares outstanding during the period. Dilution is computed by applying the treasury stock method for options and warrants. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. As of March 31, 2023 and December 31, 2022, the Company did not have any potentially dilutive instruments. Stock-Based Compensation The Company periodically grants stock options, warrants and awards to employees and non-employees in non-capital raising transactions as compensation for services rendered. The Company accounts for stock option, stock warrant and stock award grants to employees based on the authoritative guidance provided by the FASB where the value of the award is measured on the date of grant and recognized over the vesting period. The Company accounts for stock option, stock warrant and stock award grants to non-employees in accordance with the authoritative guidance of the FASB where the value of the stock compensation is determined based upon the measurement date at either a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete. Stock-based compensation charges generally are amortized over the vesting period on a straight-line basis. In certain circumstances where there are no future performance requirements by the employees and non-employees, option, warrant and award grants are immediately vested and the total stock-based compensation charge is recorded in the period of the measurement date. Segment Reporting ASC Topic 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s chief operating decision maker organizes segments within the Company for making operating decisions assessing performance and allocating resources. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. The Company manages its business as four operating segments, products, pharmacies, hotel, and manufacture and sales, all of which are located in the PRC. All of its revenues are derived in the PRC. All long-lived assets are located in PRC. The following table shows the Company’s operations by business segment for the three months ended March 31, 2023 and 2022. SCHEDULE OF SEGMENTS INFORMATION 2023 2022 For the Three Months Ended March 31, 2023 2022 Net revenue Products $ 163,260 $ 16,098 Pharmacies 223,516 158,894 Hotel 332,417 243,686 Manufacture and sale 35,520 - Total revenues, net $ 754,713 $ 418,678 Operating costs and expenses Products Cost of goods sold $ 34,734 $ 4,683 Operating expenses 367,789 298,042 Pharmacies Cost of goods sold 138,633 119,841 Operating expenses 188,996 169,309 Hotel Hotel operating costs 477,794 511,619 Operating expenses (8,885 ) 87,338 Manufacture and sale Cost of goods sold 2,121 - Operating expenses 105,501 - Total operating costs and expenses $ 1,306,683 $ 1,190,832 Loss from operations Products $ (239,263 ) $ (286,627 ) Pharmacies (104,113 ) (130,256 ) Hotel (136,492 ) (355,271 ) Manufacture and sale (72,102 ) - Loss from operations $ (551,970 ) $ (772,154 ) Segment assets As of As of Products $ 436,842 $ 410,754 Pharmacies 672,533 758,675 Hotel 821,202 970,385 Manufacture and sale 2,888,653 2,911,070 Total assets $ 4,819,230 $ 5,050,884 As the acquisition of Runcangsheng was consummated as of September 30, 2022 (see Note 17), the revenues and operating results of the manufacture and sale segment were included in the financial statements of the Company beginning on October 1, 2022. New Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its FV, not to exceed the carrying amount of goodwill. The guidance should be adopted on a prospective basis. As a smaller reporting company, the standard will be effective for the Company for interim and annual reporting periods beginning after December 15, 2022, with early adoption permitted. The Company is currently evaluating the impact of adopting this standard on the Company’s consolidated financial statements presentation or disclosures. In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. This ASU (1) simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock; (2) revises the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification; and (3) revises the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. For SEC filers, excluding smaller reporting companies, ASU 2020-06 is effective for fiscal years beginning after December 15, 2021 including interim periods within those fiscal years. Early adoption is permitted, but no earlier tha | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements are prepared in conformity with U.S. Generally Accepted Accounting Principles (“US GAAP”). The functional currency of AiXinZhonghong, Aixin Shangyan Hotel, Aixintang Pharmacies and Runcangsheng is the Chinese Renminbi (“RMB”). The accompanying consolidated financial statements are translated from RMB and presented in U.S. dollars (“USD”). The consolidated financial statements include the accounts of the Company and its current wholly owned subsidiaries, AiXin HK, AiXinZhonghong, Aixin Shangyan Hotel, Aixintang Pharmacies and Runcangsheng. Intercompany transactions and accounts were eliminated in consolidation. Going Concern The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Company’s ability to operate profitably, to generate cash flows from operations, and to pursue financing arrangements to support its working capital requirements. The Company has suffered losses from operations of $ 2,569,459 1,624,565 15,249,858 8,556,642 510,128 Management believes that it has developed a liquidity plan, as summarized below, that, if executed successfully, should provide sufficient liquidity to meet the Company’s obligations as they become due for a reasonable period of time, and allow the development of its core business. The plan includes: ● Gaining positive cash-inflow from operating activities through continuous cost reductions and the sales of higher margin products. ● Raising additional cash through loans from related parties and potential equity offerings While the Company’s management believes that the measures described in the above liquidity plan will be adequate to satisfy its liquidity requirements for the twelve months after the date that the financial statements are issued, there is no assurance that the liquidity plan will be successfully implemented. Failure to successfully implement the liquidity plan may have a material adverse effect on its business, results of operations and financial position, and may adversely affect its ability to continue as a going concern. These consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded assets or the amounts and classification of liabilities or any other adjustments that might be necessary should the Company be unable to continue as a going concern. Covid – 19; The Invasion of Ukraine On March 11, 2020, the World Health Organization announced that infections caused by the corona virus disease of 2019 (“COVID-19”) had become pandemic. In furtherance of its zero tolerance policy, the Government of China has adopted various regulations and orders, including mandatory quarantines, limits on the number of people that may gather in one location, closing non-essential businesses and travel bans to limit the spread of the disease. Many of these measures have been relaxed from time to time in various localities. However, beginning in the second half of 2021 to the end of 2022, the rate of COVID-19 cases has fluctuated in China and has increased in many provinces and cities including in Sichuan Province, where the Company is located. As a result of such increases there have been periodic short-term lockdowns and restrictions on travel in Sichuan Province. All of the Company’s operations, in particular its direct sales business and hotel, have been adversely impacted by the travel and work restrictions imposed on a temporary basis in China and Chengdu to limit the spread of COVID-19. Since January 2023, China has dropped all COVID restrictions. In response to COVID-19, the Company has implemented procedures to promote employee and customer safety. These measures will not significantly increase its operating costs. However, the Company cannot predict with certainty what measures may be taken by its suppliers and customers and the impact these measures may have on its future financial position, results of operations or cash flows. The invasion of Ukraine by the Russian Federation had an immediate impact on the global economy resulting in higher prices for oil and other commodities. The United States, United Kingdom, European Union and other countries responded to Russia’s invasion of Ukraine by imposing various economic sanctions and bans. Russia has responded with its own retaliatory measures. These measures have disrupted financial and economic markets. The global impact of these measures is continually evolving and cannot be predicted with certainty and there is no assurance that Russia’s invasion of Ukraine and responses thereto will not further disrupt the global economy and financial markets. While the invasion of Ukraine and responses thereto have not interrupted the Company’s operations, these or future developments resulting from the invasion of Ukraine could make it difficult to access debt and equity capital on attractive terms, if at all, and impact the Company’s ability to fund business activities, including proposed acquisitions. Use of Estimates In preparing consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates, required by management, include the recoverability of long-lived assets, allowance for doubtful accounts, and the reserve for obsolete and slow-moving inventories. Actual results could differ from those estimates. Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation and had no effect on previously reported consolidated net income (loss) or accumulated deficit. Cash and Cash Equivalents For financial statement purposes, the Company considers all highly liquid investments with an original maturity of three months or less to be cash and cash equivalents. Restricted Cash The restricted cash reflects the temporary freeze of bank accounts of Aixintang Pharmacy Co., Ltd. (“Aixintang Pharmacy”) and its branches by the court during the appeal of a judgement against Aixintang Pharmacy (see Note 16 – litigation). Accounts Receivable The Company’s policy is to maintain an allowance for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. As of December 31, 2022 and 2021, the bad debt allowance was $ 272,550 213,787 The following table summarizes the activity related to the Company’s Accounts Receivable allowance for doubtful accounts for the years ended December 31, 2022 and 2021: SCHEDULE OF ACCOUNTS RECEIVABLE ALLOWANCE FOR DOUBTFUL ACCOUNTS Years Ended December 31, 2022 2021 Beginning balance $ 213,787 $ 148,520 Additions * 196,164 124,242 Additions 196,164 124,242 Provisions for bad debt 45,953 - Recoveries/Write offs (165,227 ) (63,076 ) Effect of translation (18,127 ) 4,101 Ending balance $ 272,550 $ 213,787 * Due to the acquisition of subsidiaries during the years ended December 31, 2022 and 2021 Inventories Inventories mainly consists of health supplements, drugs, pharmaceutical and nutritional products, food and beverage, hotel supplies and consumables. Inventories are valued at the lower of average cost or market, cost being determined on a moving weighted average method at the end of the month. Management compares the cost of inventories with the net realizable value and an allowance is made for writing down inventories to market value, if lower. Management periodically evaluates the composition of its inventories to identify slow-moving and obsolete inventories to determine if a valuation allowance is required. The balance of reserve for inventory valuation as of December 31, 2022 and 2021 was $ 73,821 0 Property and Equipment Property and equipment are stated at cost, less accumulated depreciation, and impairment losses, if any. Major repairs and betterments that significantly extend original useful lives or improve productivity are capitalized and depreciated over the period benefited. Maintenance and repairs are expensed as incurred. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line method for substantially all assets with 5 SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED LIVES Office furniture 5 Electronic equipment 2 3 Machinery 3 Leasehold improvements 3 Vehicles 5 Impairment of Long-Lived Assets Long-lived assets, which include property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, but at least annually. Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by it. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds its fair value. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Based on its review, the Company believes that, as of December 31, 2022 and 2021, there were no significant impairments of its long-lived assets. Goodwill The Company evaluates goodwill for impairment annually or more frequently when an event occurs or circumstances change that indicate the carrying value may not be recoverable. In testing goodwill for impairment, the Company may elect to utilize a qualitative assessment to evaluate whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment indicates that goodwill impairment is more likely than not, the Company performs a two-step impairment test. The Company tests goodwill for impairment under the two-step impairment test by first comparing the book value of net assets to the fair value of the reporting units. If the fair value is determined to be less than the book value or qualitative factors indicate that it is more likely than not that goodwill is impaired, a second step is performed to compute the amount of impairment as the difference between the estimated fair value of goodwill and the carrying value. The Company estimates the fair value of the reporting units using discounted cash flows. Forecasts of future cash flows are based on our best estimate of future net sales and operating expenses, based primarily on expected category expansion, pricing, market segment share, and general economic conditions. The Company completed the required testing of goodwill for impairment as of December 31, 2022, and determined that goodwill was impaired because of the current financial condition of the Company and the Company’s inability to generate future operating income without substantial sales volume increases, which are highly uncertain. Furthermore, the Company anticipates future cash flows indicate that the recoverability of goodwill is not reasonably assured. The goodwill write-down was reflected as an impairment loss, $ 3,823,770 Income Taxes Income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company follows Accounting Standards Codification (“ASC”) Topic 740, which prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740 also provides guidance on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Under ASC Topic 740, when tax returns are filed, it is likely that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the consolidated financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in selling, general and administrative expenses in the statement of income. At December 31, 2022 and 2021, the Company did not take any uncertain positions that would necessitate recording a tax related liability. Revenue Recognition ASU No. 2014-09 Revenue from Contracts with Customers Topic 606. Topic 605, Revenue Recognition Revenue from sale of goods under Topic 606 ● executed contract(s) with customers that the Company believes is legally enforceable; ● identification of performance obligation in the respective contract; ● determination of the transaction price for each performance obligation in the respective contract; ● allocation of the transaction price to each performance obligation; and ● recognition of revenue only when the Company satisfies each performance obligation. The Company’s revenue recognition policies for its various operating segments are as follows: Advertising and Products Advertising Revenue Commencing in the third quarter of 2019, AiXin Zhonghong began to provide advertising services to its clients. Advertising contracts are signed to establish the price and advertising services to be provided. Pursuant to the advertising contracts, the Company provides advertising and marketing services to its clients through exhibition events, conferences, and person-to-person marketing. The Company performs a credit assessment of the customer to assess the collectability of the contract price prior to entering into contracts. Most of the advertisement contracts designated that the Company perform such advertising services for its clients through exhibition events, conferences, and person-to-person marketing during the contracted period, regardless of the number of such events. As such, the Company determined that the performance obligation is satisfied over time during the contracted period and revenue is recognized accordingly. Such advertising revenue amounted to $ 0 1,944,811 All of the advertising revenue is subject to the PRC VAT of 6 Product Revenue The Company’s revenue from sale of products is recognized when goods are delivered to the customer and no other obligation exists. The Company does not provide unconditional return or other concessions to the customer. The Company’s sales policy allows for the return of unopened products for cash after deducting certain service and transaction fees. As an alternative to the product return option, the customers have options of asking for an exchange for products with the same value. Sales revenue of AiXin Zhonghong represents the invoiced value of goods, net of value-added taxes (“VAT”). All of the Company’s products sold in China are subject to the PRC VAT of 13 Hotel Hotel revenues are primarily derived from the rental of rooms, food and beverage sales and other ancillary goods and services, including but not limited to souvenir, parking and conference reservation. Each of these products and services represents a distinct performance obligation and, in exchange for these services, the Company receives fixed amounts based on published rates or negotiated contracts. Payment is due in full at the time when the services are rendered or the goods are provided. Room rental revenue is recognized on a daily basis when rooms are occupied. Food and beverage revenue and other goods and services revenue are recognized when they have been delivered or rendered to the guests as the respective performance obligations are satisfied. All of the hotel’s goods sold in China are subject to the PRC VAT of 6 Pharmacies The Company’s retail drugstores (Aixintang Pharmacies) recognize revenue at the time the customer takes possession of the merchandise. For pharmacy sales, each prescription claim is its own arrangement with the customer and is a performance obligation. Aixintang Pharmacies generally receives payments from customers as it satisfies its performance obligation. The Company records a receivable when it has an unconditional right to receive payment and only the passage of time is required before payment is due. Sales revenue represents the invoiced value of goods, net of VAT. All of Aixintang Pharmacies’ products sold in China are eligible for the PRC VAT of 0 Manufacture and Sale The Company’s new subsidiary Runcangsheng recognizes revenue at the time products are shipped as this satisfies its performance obligation. The Company records a receivable for the sales when it has an unconditional right to receive payment and only the passage of time is required before payment is due. Sales revenue represents the invoiced value of goods, net of value-added taxes (“VAT”). All of the Company’s products sold in China are subject to the PRC VAT of 13 Unearned Revenue The Company’s unearned revenue primarily consists of advances received from customers for the rental of hotel rooms prior to the delivery of service. The room rental services are delivered (normally within one year) based upon contract terms and customer demand. Concentration of Credit Risk The operations of the Company are in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by the political, economic, and legal environments in the PRC, and by the general state of the PRC economy. The Company has cash on hand and demand deposits in accounts maintained with state-owned banks within the PRC. Cash in state-owned banks is covered by insurance up to RMB 500,000 72,500 During the year ended December 31, 2022, the Company had no customer that accounted for over 10% of its total revenue. During the year ended December 31, 2021, the Company had two major customers that accounted for over 10% of its total revenue. SCHEDULE OF CONCENTRATION OF RISK BY RISK FACTORS Customer Net sales for the year ended % of total revenue A(1) $ 1,286,792 42 % B 658,018 21 % During the year ended December 31, 2022, the Company had three major suppliers that accounted for over 10% of its total purchases. Supplier Net purchases for the % of total purchase C $ 189,150 14 % D (2) 149,806 11 % During the year ended December 31, 2021, the Company had one major supplier accounted for over 10% of its total purchase. Supplier Net purchases for the % of total purchase E $ 233,187 40 % (1) Represented advertising revenues from this customer during the year ended December 31, 2021. The Company also purchased inventory from this customer in year ended December 31, 2021. (2) The Company purchased inventory from this supplier, Runcansheng, in the year ended December 31, 2022. The Company acquired all of the outstanding equity of Runcangsheng on September 30, 2022 (see Note 17). Leases The Company determines if an arrangement is a lease at inception under FASB ASC Topic 842, Right of Use Assets (“ROU”) and lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As most of its leases do not provide an implicit rate, it uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The ROU assets include adjustments for prepayments and accrued lease payments. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise such options. ROU assets are reviewed for impairment when indicators of impairment are present. ROU assets from operating and finance leases are subject to the impairment guidance in ASC 360, Property, Plant, and Equipment, as ROU assets are long-lived nonfinancial assets. ROU assets are tested for impairment individually or as part of an asset group if the cash flows related to the ROU asset are not independent from the cash flows of other assets and liabilities. An asset group is the unit of accounting for long-lived assets to be held and used, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. The Company recognized no impairment of ROU assets as of December 31, 2022 and 2021. Operating leases are included in operating lease ROU and operating lease liabilities (current and non-current), on the consolidated balance sheets. Statement of Cash Flows In accordance with ASC Topic 230, “Statement of Cash Flows,” Fair Value of Financial Instruments The carrying amounts of certain of the Company’s financial instruments, including cash and equivalents, accrued liabilities and accounts payable, approximate their fair value due to their short maturities. FASB ASC Topic 825, “Financial Instruments,” requires disclosure of the fair value of financial instruments held by the Company. The carrying amounts reported in the consolidated balance sheets for current liabilities each qualify as financial instruments and are a reasonable estimate of their fair value because of the short period of time between the origination of such instruments and their expected realization and the current market rate of interest. Fair Value Measurements and Disclosures ASC Topic 820, “Fair Value Measurements and Disclosures,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The three levels are defined as follow: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. As of December 31, 2022 and 2021, the Company did not identify any assets and liabilities that are required to be presented on the balance sheet at fair value. Foreign Currency Translation and Comprehensive Income (Loss) The functional currency of the Company is RMB. For financial reporting purposes, RMB is translated into USD as the reporting currency. Assets and liabilities are translated at the exchange rate in effect at the balance sheet dates. Revenues and expenses are translated at the average rate of exchange prevailing during the reporting period. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of stockholders’ equity as “Accumulated other comprehensive income”. Gains and losses resulting from foreign currency transactions are included in income. There was no significant fluctuation in the exchange rate for the conversion of RMB to USD after the balance sheet date. The Company uses FASB ASC Topic 220, “Comprehensive Income”. Comprehensive loss is comprised of net loss and all changes to the statements of stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. Comprehensive income (loss) for the year ended December 31, 2022 and 2021 consisted of net income (loss) and foreign currency translation adjustments. Earnings per Share Basic income (loss) per share is computed on the basis of the weighted average number of common shares outstanding during the period. Dilution is computed by applying the treasury stock method for options and warrants. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. As of December 31, 2022 and 2021, the Company did not have any potentially dilutive instruments. Stock-Based Compensation The Company periodically grants stock options, warrants and stock awards to employees and non-employees in non-capital raising transactions as compensation for services rendered. The Company accounts for stock option, stock warrant and stock award grants to employees based on the authoritative guidance provided by the FASB where the value of the award is measured on the date of grant and recognized over the vesting period. The Company accounts for stock option, stock warrant and stock award grants to non-employees in accordance with the authoritative guidance of the FASB where the value of the stock compensation is determined based upon the measurement date at either a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete. Stock-based compensation charges generally are amortized over the vesting period on a straight-line basis. In certain circumstances where there are no future performance requirements by the employees and non-employees, option, warrant and award grants are immediately vested and the total stock-based compensation charge is recorded in the period of the measurement date. Segment Reporting ASC Topic 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s chief operating decision maker organizes segments within the Company for making operating decisions assessing performance and allocating resources. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. The Company manages its business as four operating segments, advertising and products, pharmacies, hotels, and manufacture and sale, all of which are located in the PRC. All of its revenues are derived in the PRC. All long-lived assets are located in PRC. The following table shows the Company’s operations by business segment for the year ended December 31, 2022 and 2021. Revenues and expenses for the Pharmacies, Hotel and Manufacture and sale segments commenced as of the respective dates of the completion of their acquisitions: SCHEDULE OF INFORMATION SEGMENTS For the Years Ended December 31, 2022 2021 Net revenue Advertising and products $ 823,930 $ 2,406,988 Pharmacies 789,347 280,447 Hotel 856,884 378,798 Manufacture and sale 238,399 - Total revenues, net $ 2,708,560 $ 3,066,233 Operating costs and expenses Advertising and products Cost of goods sold $ 171,345 $ 316,750 Operating expenses 1,526,246 1,344,543 Pharmacies Cost of goods sold 578,092 218,735 Operating expenses 622,835 252,513 Hotel Hotel operating costs 1,739,948 744,594 Operating expenses 310,902 216,036 Manufacture and sale Cost of goods sold 353,723 - Operating expense (25,072 ) - Total operating costs and expenses $ 5,278,019 $ 3,093,171 (Loss) income from operations Advertising and products $ (873,661 ) $ 745,695 Pharmacies (411,580 ) (190,801 ) Hotel (1,193,966 ) (581,832 ) Manufacture and Sale (90,252 ) - (Loss) income from operations $ (2,569,459 ) $ (26,938 ) Segment assets As of As of Advertising and products $ 410,754 $ 8,914,211 Pharmacies 758,675 931,706 Hotel 970,385 1,814,429 Manufacture and sale 2,911,070 - Total assets $ 5,050,884 $ 11,660,346 As the acquisition of Runcangsheng has been consummated as of December 31, 2022 (see Note 17), the revenues and operating results of the manufacture and sale segment will be included in the financial statements of the Company beginning on October 1, 2022. New Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance should be adopted on a prospective basis. As a smaller reporting company, the standard will be effective for the Company for interim and annual reporting periods beginning after December 15, 2022, with early adoption permitted. The Company is currently evaluating the impact of adopting this standard on the Company’s consolidated financial statements presentation or disclosures. In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. This ASU (1) simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock; (2) revises the scope exception fr |
OTHER RECEIVABLES AND PREPAID E
OTHER RECEIVABLES AND PREPAID EXPENSES | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Other Receivables And Prepaid Expenses | ||
OTHER RECEIVABLES AND PREPAID EXPENSES | 3. OTHER RECEIVABLES AND PREPAID EXPENSES Other receivables and prepaid expenses consisted of the following at March 31, 2023 and December 31, 2022: SCHEDULE OF OTHER RECEIVABLES AND PREPAID EXPENSES March 31, 2023 December 31, 2022 Deposits $ 13,001 $ 15,546 Prepaid expenses 38,796 9,490 Employees’ social insurance 10,268 10,124 Others 11,588 7,471 Total $ 73,653 $ 42,631 | 3. OTHER RECEIVABLES AND PREPAID EXPENSES Other receivables and prepaid expenses consisted of the following at December 31, 2022 and 2021: SCHEDULE OF OTHER RECEIVABLES AND PREPAID EXPENSES December 31, 2022 December 31, 2021 Deposits $ 15,546 $ 68,433 Prepaid expenses 9,490 50,221 Employees’ social insurance 10,124 13,839 Others 7,471 10,788 Total $ 42,631 $ 143,281 |
ADVANCES TO SUPPLIERS
ADVANCES TO SUPPLIERS | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Advances To Suppliers | ||
ADVANCES TO SUPPLIERS | 4. ADVANCES TO SUPPLIERS The Company had advances to suppliers of $ 153,542 168,523 | 4. ADVANCES TO SUPPLIERS The Company had advances to suppliers of $ 168,523 162,969 |
INVENTORIES
INVENTORIES | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | ||
INVENTORIES | 5. INVENTORIES Inventories consisted of the following at March 31, 2023 and December 31, 2022: SCHEDULE OF INVENTORIES March 31, 2023 December 31, 2022 Raw material $ 127,896 $ 62,462 Work in process 2,895 15,315 Finished goods-health supplements 100,772 521 Drugs, pharmaceutical and nutritional products 469,757 412,129 Food and beverage, hotel supplies and consumables 74,294 82,646 Total $ 775,614 $ 573,073 Less: reserve for inventory 92,579 73,821 Total inventories, net $ 683,035 $ 499,252 | 5. INVENTORIES Inventories consisted of the following at December 31, 2022 and 2021: SCHEDULE OF INVENTORIES December 31, 2022 December 31, 2021 Raw material $ 62,462 $ - Work in process 15,315 - Finished goods-health supplements 521 6,201 Drugs, pharmaceutical and nutritional products 412,129 122,966 Food and beverage, hotel supplies and consumables 82,646 104,287 Total $ 573,073 $ 233,454 Less: reserve for inventory 73,821 - Total inventories, net $ 499,252 $ 233,454 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||
PROPERTY AND EQUIPMENT, NET | 6. PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following at March 31, 2023 and December 31, 2022: SCHEDULE OF PROPERTY AND EQUIPMENT March 31, 2023 December 31, 2022 Vehicles $ 428,676 $ 426,836 Office furniture 82,905 82,549 Electronic equipment 21,550 20,607 Machinery 1,247,377 1,241,778 Leasehold improvements 1,143,996 1,139,087 Other 18,203 17,485 Total 2,942,707 2,928,342 Less: Accumulated depreciation (1,064,695 ) (956,549 ) Property and equipment, net $ 1,878,012 $ 1,971,793 Depreciation expense for the three months ended March 31, 2023 and 2022 was $ 104,400 28,978 | 6. PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following at December 31, 2022 and 2021: SCHEDULE OF PROPERTY AND EQUIPMENT December 31, 2022 December 31, 2021 Vehicles $ 426,836 $ 295,502 Office furniture 82,549 64,263 Electronic equipment 20,607 22,304 Machinery 1,241,778 106,080 Leasehold improvements 1,139,087 256,548 Other 17,485 6,374 Total 2,928,342 751,071 Less: Accumulated depreciation (956,549 ) (460,923 ) Property and equipment, net $ 1,971,793 $ 290,148 Depreciation expense for the years ended December 31, 2022 and 2021 was $ 183,542 95,026 |
INTANGIBLE ASSET, NET
INTANGIBLE ASSET, NET | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
INTANGIBLE ASSET, NET | 7. INTANGIBLE ASSET, NET Intangible asset consisted of the following at March 31, 2023 and December 31, 2022: SCHEDULE OF INTANGIBLE ASSET March 31, 2023 December 31, 2022 Software $ 8,601 $ 8,564 Less: Accumulated amortization (7,509 ) (7,295 ) Intangible asset, net $ 1,092 $ 1,269 Amortization expense for the three months ended March 31, 2023 and 2022 was $ 161 661 | 7. INTANGIBLE ASSET, NET Intangible asset consisted of the following at December 31, 2022 and 2021: SCHEDULE OF INTANGIBLE ASSET December 31, 2022 December 31, 2021 Software $ 8,564 $ 7,896 Less: Accumulated amortization (7,295 ) (5,956 ) Intangible asset, net $ 1,269 $ 1,940 Amortization expense for the years ended December 31, 2022 and 2021 was $ 2,023 1,080 |
TAXES PAYABLE
TAXES PAYABLE | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Taxes Payable | ||
TAXES PAYABLE | 8. TAXES PAYABLE Taxes payable consisted of the following at March 31, 2023 and December 31, 2022: SCHEDULE OF TAX PAYABLE March 31, 2023 December 31, 2022 Value-added $ 2,102 $ 56,806 Income 31,052 30,919 City construction 472 3,746 Education 380 2,184 Other 10,577 10,445 Taxes payable $ 44,583 $ 104,100 | 8. TAXES PAYABLE Taxes payable consisted of the following at December 31, 2022 and 2021: SCHEDULE OF TAX PAYABLE December 31, 2022 December 31, 2021 Value-added $ 56,806 $ 97,917 Income 30,919 109,396 City construction 3,746 7,018 Education 2,184 5,064 Other 10,445 13,242 Taxes payable $ 104,100 $ 232,637 |
ACCRUED LIABILITIES AND OTHER P
ACCRUED LIABILITIES AND OTHER PAYABLES | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Payables and Accruals [Abstract] | ||
ACCRUED LIABILITIES AND OTHER PAYABLES | 9. ACCRUED LIABILITIES AND OTHER PAYABLES Accrued liabilities and other payables consisted of the following at March 31, 2023 and December 31, 2022: SCHEDULE OF ACCRUED LIABILITIES AND OTHER PAYABLES March 31, 2023 December 31, 2022 Accrued employees’ social insurance $ 266,690 $ 270,349 Accrued payroll and commission 309,903 307,331 Accrued rent expense 30,107 32,746 Construction payable 1,363,366 1,384,674 Payable for equipment purchase 26,833 32,278 Accrued professional fees 160,648 233,894 Deposit 11,357 11,308 Other payables 63,363 83,910 Total $ 2,232,267 $ 2,356,490 | 9. ACCRUED LIABILITIES AND OTHER PAYABLES Accrued liabilities and other payables consisted of the following at December 31, 2022 and 2021: SCHEDULE OF ACCRUED LIABILITIES AND OTHER PAYABLES December 31, 2022 December 31, 2021 Accrued employees’ social insurance $ 270,349 $ 327,735 Accrued payroll and commission 307,331 179,183 Accrued rent expense 32,746 29,000 Construction payable 1,384,674 111,807 Payable for equipment purchase 32,278 - Accrued professional fees 233,894 50,840 Deposit 11,308 12,239 Other payables 83,910 41,596 Total $ 2,356,490 $ 752,400 |
LOAN FROM THIRD PARTIES
LOAN FROM THIRD PARTIES | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Debt Disclosure [Abstract] | ||
LOAN FROM THIRD PARTIES | 10. LOAN FROM THIRD PARTIES As of March 31, 2023 and December 31, 2022, the Company had advances from unrelated third parties of Aixin Shangyan Hotel in an aggregate amount $ 87,367 86,992 | 10. LOAN FROM THIRD PARTIES As of December 31, 2022 and 2021, the Company had advances from former shareholders and unrelated third parties in an aggregate amount of $ 86,992 94,153 |
LEASE
LEASE | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Lease | ||
LEASE | 11. LEASE The Company leases its office on a monthly basis. The Company also has operating leases for other sales locations under various operating lease arrangements. The leases have remaining lease terms of approximately 0.16 3.19 Aixin Shangyan Hotel leases its hotel premises under an operating lease arrangement. The lease has a remaining lease term of approximately 0.75 Aixintang Pharmacies lease retail pharmacy stores under operating lease arrangements, with remaining lease terms of 0.37 3.42 Runcangsheng leases its office under an operating lease arrangement. The lease has a remaining lease term of approximately 2.92 Balance sheet information related to the Company’s leases is presented below: SCHEDULE OF OPERATING LEASE LIABILITIES March 31, 2023 December 31, 2022 Operating Leases Operating lease right-of-use assets $ 811,021 $ 999,285 Operating lease liabilities – current $ 748,331 $ 883,583 Operating lease liability – non-current 179,631 194,725 Total operating lease liabilities $ 927,962 $ 1,078,308 The following provides details of the Company’s lease expenses: SCHEDULE OF OPERATING LEASE EXPENSES 2023 2022 Three Months Ended March 31, 2023 2022 Operating lease expenses $ 210,334 $ 229,242 Other information related to leases is presented below: SCHEDULE OF OTHER INFORMATION RELATED LEASES Three Months Ended March 31, 2023 2022 Cash Paid For Amounts Included In Measurement of Liabilities: Operating cash flows from operating leases $ 186,473 203,673 Weighted Average Remaining Lease Term: Operating leases 1.36 2.11 Weighted Average Discount Rate: Operating leases 4.75 % 4.75 % Maturities of lease liabilities were as follows: SCHEDULE OF MATURITIES OF LEASE LIABILITIES For the year ending December 31: 2023 (excluding the three months ended March 31, 2023) $ 729,243 2024 136,646 2025 62,162 2026 23,986 Total lease payments 952,037 Less: imputed interest (24,075 ) Total lease liabilities 927,962 Less: current portion (748,331 ) Lease liabilities – non-current portion $ 179,631 | 11. LEASE Concurrent with the completion of the sale of its rights to a portion of a building completed in 2019, the Company entered into an agreement to lease a portion of the building back from the buyer over a lease term of 2 207,049 1,389,731 4.75 March 31, 2021 The Company also has operating leases for other sales locations under various operating lease arrangements. The leases have remaining lease terms of approximately 0.41 3.44 Aixin Shangyan Hotel leases its hotel premises under an operating lease arrangement. The lease has a remaining lease term of approximately 1.00 Aixintang Pharmacies lease retail pharmacy stores under operating lease arrangements, with remaining lease terms of 0.37 3.67 Balance sheet information related to the Company’s leases is presented below: SCHEDULE OF OPERATING LEASE LIABILITIES December 31, 2022 December 31, 2021 Operating Leases Operating lease right-of-use assets $ 999,285 $ 2,049,775 Operating lease liabilities – current $ 883,583 $ 848,230 Operating lease liability – non-current 194,725 1,138,710 Total operating lease liabilities $ 1,078,308 $ 1,986,940 The following provides details of the Company’s lease expenses: SCHEDULE OF OPERATING LEASE EXPENSES 2022 2021 Years Ended December 31, 2022 2021 Operating lease expenses $ 837,425 $ 411,607 Other information related to leases is presented below: SCHEDULE OF OTHER INFORMATION RELATED LEASES Years Ended December 31, 2022 2021 Cash Paid For Amounts Included In Measurement of Liabilities: Operating cash flows from operating leases $ 710,865 $ 473,508 Weighted Average Remaining Lease Term: Operating leases 1.45 2.32 Weighted Average Discount Rate: Operating leases 4.75 % 4.75 % Maturities of lease liabilities were as follows: SCHEDULE OF MATURITIES OF LEASE LIABILITIES For the year ending December 31: 2023 $ 899,044 2024 127,361 2025 53,196 2026 22,433 Total lease payments 1,102,034 Less: imputed interest (23,726 ) Total lease liabilities 1,078,308 Less: current portion (883,583 ) Lease liabilities – non-current portion $ 194,725 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Related Party Transactions [Abstract] | ||
RELATED PARTY TRANSACTIONS | 12. RELATED PARTY TRANSACTIONS Due from related parties Due from related parties consisted of the following as of the periods indicated: SCHEDULE OF RELATED PARTY TRANSACTIONS March 31, 2023 December 31, 2022 Chengdu WenJiang Aixin Nanjiang Pharmacy Co., Ltd. $ 11,584 $ 9,708 Sichuan Aixin Investment Co., Ltd 9,478 145 Chengdu Fuxiang Tang Pharmacy Co., Ltd. 24,925 26,125 Chengdu Wenjiang district Heneng hupu Pharmacy Co., Ltd 30,451 34,622 Chengdu Cigu foshou Pharmacy 258 - Mianyang Aixin Cunshan Pharmacy 383 - Chengdu Lisheng Huiren Tang Pharmacy Co., Ltd. 24,900 12,502 Total $ 101,979 $ 83,102 Advance to related parties $ 101,979 $ 83,102 Due to related parties Due to related parties consisted of the following as of the periods indicated: March 31, 2023 December 31, 2022 Quanzhong Lin $ 316,840 $ 140,644 Yirong Shen 90,279 89,892 Yunnan Shengshengyuan 138,331 - Yun Chen 7,281 - Chengdu Lisheng Huiren Tang Pharmacy Co. Ltd. 695 - Chengdu Aixin International travel service Co, Ltd 5,222 6,346 Total $ 558,648 $ 236,882 Advance to related parties $ 558,648 $ 236,882 The due to and from related parties were for working capital purposes, payable on demand, and bear no interest. All the related party entities are controlled by Mr. Quanzhong Lin (the Chairman, President and major shareholder of Aixin Life). Yirong Shen was a major shareholder of Aixin Shangyan Hotel prior to the closing of Hotel Purchase Agreement, and she serves as the supervisor of Aixin Shangyan Hotel. Yunnan Shengshengyuan, former shareholder of Runcangsheng, is controlled by Huiliang Jiao, current Director of the Company. Yun Chen, former shareholder of Runcangsheng, remained as an officer and legal representative of Runcangsheng. Office lease from a Major Shareholder In May 2014, the Company entered a lease with its major shareholder for an office. The lease term was for three years expiring in May 2017 with an option to renew. The monthly rent was RMB 5,000 789 May 28, 2023 5,000 789 | 12. RELATED PARTY TRANSACTIONS Account payables to related parties As of December 31, 2022 and 2021, the Company had accounts payable to related party in the amount of $ 165,958 0 Advance to related parties Advance to related parties consisted of the following as of the periods indicated: SCHEDULE OF RELATED PARTY TRANSACTIONS December 31, 2022 December 31, 2021 Chengdu WenJiang Aixin Nanjiang Pharmacy Co., Ltd. $ 9,708 $ 4,583 Sichuan Aixin Investment Co., Ltd. 145 4,237 Chengdu Fuxiang Tang Pharmacy Co., Ltd. 26,125 - Chengdu Wenjiang district Heneng hupu Pharmacy Co., Ltd 34,622 - Chengdu Lisheng Huiren Tang Pharmacy Co., Ltd. 12,502 10,235 Total $ 83,102 $ 19,055 Advance from related parties Advance from related parties consisted of the following as of the periods indicated: December 31, 2022 December 31, 2021 Quanzhong Lin $ 140,644 $ 1,822,705 Yirong Shen 89,892 97,292 Branch manager - 1,667 Chengdu Aixin E-Commerce Company Ltd. - 15,378 Chengdu Aixin International travel service Co, Ltd 6,346 2,388 Aixin Life Beauty - 7,724 Total $ 236,882 $ 1,947,154 All the related party entities are controlled by Mr. Quanzhong Lin (the Chairman, President and major shareholder of Aixin Life). These advances to and from related parties were for working capital purpose, payable on demand, and bear no interest. Yirong Shen was a major shareholder of Aixin Shangyan Hotel prior to the closing of Hotel Purchase Agreement, and she serves as the supervisor of Aixin Shangyan Hotel. Office lease from a Major Shareholder In May 2014, the Company entered a lease with its major shareholder for an office. The lease term was for three years expiring in May 2017 with an option to renew. The monthly rent was RMB 5,000 725 May 28, 2023 5,000 725 3,625 |
INCOME TAXES
INCOME TAXES | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
INCOME TAXES | 13. INCOME TAXES The Company was incorporated in the United States of America (“USA”) and has operations in one tax jurisdiction, i.e. the PRC. The Company generated substantially all of its sales from its operations in the PRC for the three months ended March 31, 2023 and 2022, and recorded income tax provision for the periods. China has a tax rate of 25 Uncertain Tax Positions Interest associated with unrecognized tax benefits are classified as income tax, and penalties are classified in selling, general and administrative expenses in the statements of operations. For the three months ended March 31, 2023 and 2022, the Company had no | 13. INCOME TAXES The Company was incorporated in the United States of America (“USA”) and has operations in one tax jurisdiction, i.e. the PRC. The Company generated substantially all of its sales from its operations in the PRC for the years ended December 31, 2022 and 2021, and recorded income tax provision for the periods. China has a tax rate of 25 The components of the provision for income taxes for the years ended December 31, 2022 and 2021 consisted of the following: SCHEDULE OF COMPONENTS OF THE PROVISION FOR INCOME TAXES 2022 2021 For the Year Ended December 31, 2022 2021 Current: China $ (761 ) $ 292,891 Total current (761 ) 292,891 Deferred: China 1,858 (18,570 ) Total deferred 1,858 (18,570 ) Total income tax expense $ 1,097 $ 274,321 Deferred tax assets as of December 31, 2022 and 2021 consisted of the following: SCHEDULE OF DEFERRED TAX ASSETS December 31, 2022 December 31, 2021 Deferred tax assets: Accumulated amortization $ 15,556 $ 18,795 The following table reconciles the statutory rates to the Company’s effective tax rate for years ended December 31, 2022 and 2021: SCHEDULE OF EFFECTIVE INCOME TAX RATE 2022 2021 Statutory U.S. federal income tax rate ( 21.0 )% 21.0 % Foreign tax rate differential (3.8 )% 216.5 % Change in valuation allowances 25.0 % 3,634.4 % Other (0.2 )% - % Effective combined tax rate 0.0 % 3,871.9 % As of December 31, 2022, the Company had approximately $ 4,139,357 Uncertain Tax Positions Interest associated with unrecognized tax benefits are classified as income tax, and penalties are classified in selling, general and administrative expenses in the statements of operations. For the years ended December 31, 2022 and 2021, the Company had no |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Equity [Abstract] | ||
STOCKHOLDERS’ EQUITY | 14. STOCKHOLDERS’ EQUITY On August 17, 2020, by unanimous written consent in lieu of a meeting, the Board adopted resolutions authorizing a one (1)-for-four (4) reverse stock 20,000,000 0.001 500,000,000 .00001 Pursuant to resolutions adopted by the Board of Directors and the holders of a majority of the outstanding shares of common stock of AiXin Life International, Inc. on January 6, 2023, the Company filed an amendment to its Articles of Incorporation with respect to a proposed 1 for 2 “reverse” split of its common stock (the “Amendment”). Completion of the proposed reverse stock split was to be effected on a date determined by the Board of Directors only upon receipt of notice from the Financial Industry Regulatory Authority (“FINRA”) that it would process the proposed reverse stock split. The Company received notice from FINRA and its common stock began trading on a post-split basis on February 17, 2023. As a result of the reverse split, every two shares of the Company’s issued and outstanding common stock were automatically combined and converted into one issued and outstanding share of common stock. The Company has approximately 24,999,842 All share and earnings per share information has been retroactively adjusted to reflect the reverse stock split. As of March 31, 2023, and December 31, 2022, the Company had 24,999,842 Stock Awards Issued for Services On October 22, 2019, the Company granted and issued 18,750 337,500 18 On October 24, 2019, the Company granted and issued 275,000 1,520,200 5.528 The stock awards will vest over five ( 5 the grantee will forfeit 80% of Shares Granted if no longer employed by or contracted with the Company on the date that is one year from the grant date, forfeit 60% of Shares Granted if no longer employed by or contracted with the Company on the date that is two years from the grant date, forfeit 40% of Shares Granted if no longer employed by or contracted with the Company on the date that is three years from the grant date, and forfeit 20% of Shares Granted if no longer employed by or contracted with the Company on the date that is four years from the grant date. Effective on the 5 th For the three months ended March 31, 2023 and 2022, stock-based compensation expenses were $ 92,885 92,885 579,782 2 | 14. STOCKHOLDERS’ EQUITY On August 17, 2020, by unanimous written consent in lieu of a meeting, the Board adopted resolutions authorizing a one (1)-for-four (4) reverse stock 20,000,000 0.001 500,000,000 .00001 Pursuant to resolutions adopted by the Board of Directors and the holders of a majority of the outstanding shares of common stock of AiXin Life International, Inc. on January 6, 2023, the Company filed an amendment to its Articles of Incorporation with respect to a proposed 1 for 2 “reverse” split of our common stock (the “Amendment”). Completion of the proposed reverse stock split was to be effected on a date determined by our Board of Directors only upon receipt of notice from the Financial Industry Regulatory Authority (“FINRA”) that it would process the proposed reverse stock split. The Company received notice from FINRA and its common stock began trading on a post-split basis on February 17, 2023. As a result of the reverse split, every two shares of the Company’s issued and outstanding common stock will be automatically combined and converted into one issued and outstanding share of common stock. The Company has approximately 24,999,842 All share and earnings per share information has been retroactively adjusted to reflect the reverse stock split. As of December 31, 2022 and 2021, the Company had 24,999,842 Stock Awards Issued for Services On October 22, 2019, the Company granted and issued 18,750 337,500 18 On October 24, 2019, the Company granted and issued 275,000 1,520,200 5.528 The stock awards will vest over five ( 5 the grantee will forfeit 80% of Shares Granted if no longer employed by or contracted with the Company on the date that is one year from the grant date, forfeit 60% of Shares Granted if no longer employed by or contracted with the Company on the date that is two years from the grant date, forfeit 40% of Shares Granted if no longer employed by or contracted with the Company on the date that is three years from the grant date, and forfeit 20% of Shares Granted if no longer employed by or contracted with the Company on the date that is four years from the grant date. Effective on the 5th year from the grant date, none of the shares will be subject to forfeiture For the years ended December 31, 2022 and 2021, stock-based compensation expenses were $ 371,540 672,667 2 Forgiveness of shareholder’s loan As of December 31, 2021, the Company’s major shareholder Mr. Lin forgave his loan to the Company for $ 6,912,513 Acquisition of Subsidiaries As of December 31, 2021, the Company completed the acquisitions of Aixin Shangyan Hotel and Aixintang Pharmacies (see Note 1). The acquisitions were accounted for as acquisitions of entities under common control. In connection with the acquisitions, the Company made payments to Mr. Lin in the aggregate amount of $ 4.50 29 4,313,025 |
STATUTORY RESERVES
STATUTORY RESERVES | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Statutory Reserves | ||
STATUTORY RESERVES | 15. STATUTORY RESERVES Pursuant to the PRC corporate law, the Company is now only required to maintain one statutory reserve by appropriating from its after-tax profit before declaration or payment of dividends. The statutory reserve represents restricted retained earnings. Surplus reserve fund The Company is required to transfer 10 50 0 0 The surplus reserve fund is non-distributable other than during liquidation and can be used to fund previous years’ losses, if any, and may be utilized for business expansion or converted into share capital by issuing new shares to existing shareholders in proportion to their shareholding or by increasing the par value of the shares currently held by them, provided that the remaining reserve balance after such issue is not less than 25 Common welfare fund Common welfare fund is a voluntary fund to which the Company can elect to transfer 5 10 This fund can only be utilized on capital items for the collective benefit of the Company’s employees, such as construction of dormitories, cafeteria facilities, and other staff welfare facilities. This fund is non-distributable other than upon liquidation. | 15. STATUTORY RESERVES Pursuant to the PRC corporate law, the Company is now only required to maintain one statutory reserve by appropriating from its after-tax profit before declaration or payment of dividends. The statutory reserve represents restricted retained earnings. Surplus reserve fund The Company is required to transfer 10 50 0 0 The surplus reserve fund is non-distributable other than during liquidation and can be used to fund previous years’ losses, if any, and may be utilized for business expansion or converted into share capital by issuing new shares to existing shareholders in proportion to their shareholding or by increasing the par value of the shares currently held by them, provided that the remaining reserve balance after such issue is not less than 25 Common welfare fund Common welfare fund is a voluntary fund to which the Company can elect to transfer 5 10 This fund can only be utilized on capital items for the collective benefit of the Company’s employees, such as construction of dormitories, cafeteria facilities, and other staff welfare facilities. This fund is non-distributable other than upon liquidation. |
OPERATING CONTINGENCIES
OPERATING CONTINGENCIES | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | ||
OPERATING CONTINGENCIES | 16. OPERATING CONTINGENCIES The Company’s operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environments and foreign currency exchange. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. The Company’s sales, purchases and expenses are denominated in RMB and all of the Company’s assets and liabilities are also denominated in RMB. The RMB is not freely convertible into foreign currencies under the current law. In China, foreign exchange transactions are required by law to be transacted only by authorized financial institutions. Remittances in currencies other than RMB may require certain supporting documentation to affect the remittance. Litigation The Company is, from time to time, involved in litigation incidental to the conduct of its business regarding merchandise sold, employment matters, and litigation regarding intellectual property rights. In December 2020, Jian Yiao (the “Plaintiff”) filed a complaint against Chengdu Aixintang Pharmacy Co., Ltd. (“Aixintang Pharmacy”, or the “Defendant”) in Zhangjiagang People’s Court in Jiangsu Province. The complaint alleges that Jian Yiao is entitled to $ 392,305 2,500,000 392,305 2,500,000 In February 2021, the judge in the Jiangsu Suzhou Intermediate People’s Court denied the Defendant’s motion and upheld the judgment from the first trial. In March 2021, Aixintang Pharmacy filed another motion to the Jiangsu High People’s Court on the basis that the Purchase Agreement was forged. In February 2022, Aixintang Pharmacy filed an appeal in Jiangsu High People’s Court against the judgment reached by Jiangsu Suzhou Intermediate People’s Court in February 2021. To date, this legal proceeding remains pending. In November 2021, the Company and Mr. Quanzhong Lin agreed that Mr. Lin shall assume any losses arising from this legal proceeding. As such, the Company did not accrue contingent losses from this legal proceeding as of March 31, 2023. The Company believes that current pending litigation will not have a material adverse effect on its consolidated financial position, results of operations or cash flows. | 16. OPERATING CONTINGENCIES The Company’s operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environments and foreign currency exchange. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. The Company’s sales, purchases and expenses are denominated in RMB and all of the Company’s assets and liabilities are also denominated in RMB. The RMB is not freely convertible into foreign currencies under the current law. In China, foreign exchange transactions are required by law to be transacted only by authorized financial institutions. Remittances in currencies other than RMB may require certain supporting documentation to affect the remittance. Litigation The Company is, from time to time, involved in litigation incidental to the conduct of its business regarding merchandise sold, employment matters, and litigation regarding intellectual property rights. In December 2020, Jian Yiao (the “Plaintiff”) filed a complaint against Chengdu Aixintang Pharmacy Co., Ltd. (“Aixintang Pharmacy”, or the “Defendant”) in Zhangjiagang People’s Court in Jiangsu Province. The complaint alleges that Jian Yiao is entitled to $ 392,305 2,500,000 392,305 2,500,000 In February 2021, the judge in the Jiangsu Suzhou Intermediate People’s Court denied the Defendant’s motion and upheld the judgment from the first trial. In March 2021, Aixintang Pharmacy filed another motion to the Jiangsu High People’s Court on the basis that the Purchase Agreement was forged. In February 2022, Aixintang Pharmacy filed an appeal in Jiangsu High People’s Court against the judgment reached by Jiangsu Suzhou Intermediate People’s Court in February 2021. To date, this legal proceeding remains pending. In November 2021, the Company and Mr. Quanzhong Lin agreed that Mr. Lin shall assume any losses arising from this legal proceeding. As such, the Company did not accrue contingent losses from this legal proceeding as of December 31, 2022 and 2021. The Company believes that current pending litigation will not have a material adverse effect on its consolidated financial position, results of operations or cash flows. |
ACQUISITION OF SUBSIDIARIES
ACQUISITION OF SUBSIDIARIES | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | ||
ACQUISITION OF SUBSIDIARIES | 17. ACQUISITION OF SUBSIDIARIES Runcangsheng On July 19, 2022, the Company entered into an Equity Transfer Agreement with Yunnan Shengshengyuan Technology Co., Ltd (“Shengshengyuan”) and Yun Chen (collectively “the Sellers”), who own 95% 5 Under the terms of the Transfer Agreement, the Company purchased all of the outstanding equity interest of Yunnan Runcangsheng for an aggregate purchase price of RMB 31,557,820 4,418,095 116,802 In addition to transferring their respective equity interest in Runcangsheng, both Sellers agreed to forgive any loans due to them from Runcangsheng. The acquisition was completed on September 30, 2022. The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition. Goodwill as a result of the acquisition of Runcangsheng is calculated as follows: SCHEDULE OF FAIR VALUES OF THE ASSETS ACQUIRED AND LIABILITIES ASSUMED Total purchase considerations $ 4,301,293 Estimated fair value of assets acquired: Cash $ 446,381 Accounts receivable 144,813 Accounts receivable-related party 133,011 Advance to suppliers 3,455 Other receivables and prepaid expense 127,909 Inventory 469,594 Property and equipment 1,677,272 Intangible assets 1,406 Operating lease right-of-use assets 1,990 Total assets acquired 3,005,831 Estimated fair value of liabilities assumed: Accounts payable (89,801 ) Accounts payable-related party (160,911 ) Advance from customers (4,790 ) Government grant (921,473 ) Taxes payable (21,156 ) Operating lease liability (15,182 ) Accrued liabilities and other payables (1,314,995 ) Total liabilities assumed (2,528,308 ) Total net assets acquired 477,523 Goodwill as a result of the acquisition $ 3,823,770 During the year ended December 31, 2022, the Company recorded a goodwill impairment equal to the goodwill resulting from the acquisition of Runcangsheng. The following condensed unaudited pro forma consolidated results of operations for the Company, Runcangsheng, Aixin Shangyan Hotel and Aixintang Pharmacies for the three months ended March 31, 2022 present the results of operations of the Company, Runcangsheng, Aixin Shangyan Hotel, and Aixintang Pharmacies as if the acquisition of Runcangsheng occurred on January 1, 2022, respectively. The pro forma results are not necessarily indicative of the actual results that would have occurred had the acquisition been completed as of the beginning of the periods presented, nor are they necessarily indicative of future consolidated results. SCHEDULE OF BUSINESS ACQUISITION PRO FORMA For the Three Months Ended March 31, 2022 Revenue $ 501,839 Operating costs and expenses 1,284,944 Loss from operations (783,105 ) Other income 20,601 Income tax expense 492 Net loss $ (762,996 ) | 17. ACQUISITIONS OF SUBSIDIARIES ACQUISITION OF SUBSIDIARIES Aixin Shangyan Hotel and Aixintang Pharmaciess In July and September, 2021, the Company completed the required governmental procedures and obtained the documents necessary to consider the acquisitions of Aixin Shangyan Hotel and Aixintang Pharmacies completed. Pursuant to the Hotel Purchase Agreement, AiXin HK purchased all of the outstanding equity of Aixin Shangyan Hotel from Mr. Lin and the other shareholder for a purchase price of RMB 7,598,887 1.16 Pursuant to the Pharmacies Purchase Agreement, AiXin HK purchased 100 34,635,845 5.31 The acquisitions will be accounted for as acquisitions of entities under common control under ASC 805-50-15-6, and the assets and liabilities acquired will be measured and recorded at the carrying amount under ASC 805-50-30-5. Runcangsheng On July 19, 2022, the Company entered into an Equity Transfer Agreement with Yunnan Shengshengyuan Technology Co., Ltd (“Shengshengyuan”) and Yun Chen (collectively “the Sellers”), who own 95% 5 Under the terms of the Transfer Agreement, the Company agreed to purchase all of the outstanding equity interest of Yunnan Runcangsheng for an aggregate purchase price of RMB 31,557,820 4,418,095 116,802 The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition. Goodwill as a result of the acquisition of Runcangsheng is calculated as follows: SCHEDULE OF FAIR VALUES OF THE ASSETS ACQUIRED AND LIABILITIES ASSUMED Total purchase considerations $ 4,301,293 Estimated fair value of assets acquired: Cash $ 446,381 Accounts receivable 144,813 Accounts receivable-related party 133,011 Advance to suppliers 3,455 Other receivables and prepaid expense 127,909 Inventory 469,594 Property and equipment 1,677,272 Intangible assets 1,406 Operating lease right-of-use assets 1,990 Total assets acquired 3,005,831 Estimated fair value of liabilities assumed: Accounts payable (89,801 ) Accounts payable-related party (160,911 ) Advance from customers (4,790 ) Government grant (921,473 ) Taxes payable (21,156 ) Operating lease liability (15,182 ) Accrued liabilities and other payables (1,314,995 ) Total liabilities assumed (2,528,308 ) Total net assets acquired 477,523 Goodwill as a result of the acquisition $ 3,823,770 During the year ended December 31, 2022, the Company has recorded goodwill impairment in full amount. The following condensed unaudited pro forma consolidated results of operations for the Company, Runcangsheng, Aixin Shangyan Hotel and Aixintang Pharmacies for the years ended December 31, 2022 and 2021 present the results of operations of the Company, Runcangsheng, Aixin Shangyan Hotel, and Aixintang Pharmacies as if the acquisitions occurred on January 1, 2022 and 2021, respectively. The pro forma results are not necessarily indicative of the actual results that would have occurred had the acquisitions been completed as of the beginning of the periods presented, nor are they necessarily indicative of future consolidated results. SCHEDULE OF BUSINESS ACQUISITION PRO FORMA For the Year Ended December 31, 2022 Revenue $ 3,168,061 Operating costs and expenses 5,605,508 Loss from operations (2,437,447 ) Other income 34,839 Income tax expense 1,097 Net loss $ (2,403,705 ) For the Year Ended December 31, 2021 Revenue $ 5,025,140 Operating costs and expenses 6,052,664 Loss from operations (1,027,524 ) Other income 100,086 Income tax expense 284,903 Net loss $ (1,212,341 ) |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Subsequent Events [Abstract] | ||
SUBSEQUENT EVENT | 18. SUBSEQUENT EVENT The Company follows the guidance in FASB ASC 855-10 for the disclosure of subsequent events. The Company evaluated subsequent events through the date the financial statements were issued and determined the Company has no material subsequent events. | 18. SUBSEQUENT EVENT The Company follows the guidance in FASB ASC 855-10 for the disclosure of subsequent events. The Company evaluated subsequent events through the date the financial statements were issued and determined the Company has no material subsequent events need to be disclosed. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements are prepared in conformity with U.S. Generally Accepted Accounting Principles (“US GAAP”). The functional currency of AiXinZhonghong, Aixin Shangyan Hotel, Aixintang Pharmacies, and Runcangsheng is the Chinese Renminbi (“RMB”). The accompanying consolidated financial statements are translated from RMB and presented in U.S. dollars (“USD”). The consolidated financial statements include the accounts of the Company and its current wholly owned subsidiaries, AiXin HK, AiXinZhonghong, Aixin Shangyan Hotel, Aixintang Pharmacies, and Runcangsheng. Intercompany transactions and accounts were eliminated in consolidation. These unaudited interim financial statements should be read in conjunction with the annual consolidated financial statements and the accompanying notes contained in our Annual Report on Form 10-K for the year ended December 31, 2022. | Basis of Presentation The accompanying consolidated financial statements are prepared in conformity with U.S. Generally Accepted Accounting Principles (“US GAAP”). The functional currency of AiXinZhonghong, Aixin Shangyan Hotel, Aixintang Pharmacies and Runcangsheng is the Chinese Renminbi (“RMB”). The accompanying consolidated financial statements are translated from RMB and presented in U.S. dollars (“USD”). The consolidated financial statements include the accounts of the Company and its current wholly owned subsidiaries, AiXin HK, AiXinZhonghong, Aixin Shangyan Hotel, Aixintang Pharmacies and Runcangsheng. Intercompany transactions and accounts were eliminated in consolidation. |
Going Concern | Going Concern The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Company’s ability to operate profitably, to generate cash flows from operations, and to pursue financing arrangements to support its working capital requirements. The Company has suffered losses from operations of $ 551,970 and $ 772,154 for the three months ended March 31, 2023 and 2022, and 472,681 503,520 15,659,482 510,128 496,918 Management believes that it has developed a liquidity plan, as summarized below, that, if executed successfully, should provide sufficient liquidity to meet the Company’s obligations as they become due for a reasonable period of time, and allow the development of its core business. The plan includes: ● Gaining positive cash-inflow from operating activities through continuous cost reductions and the sales of higher margin products. ● Raising additional cash through loans from related parties and potential equity offerings. While the Company’s management believes that the measures described in the above liquidity plan will be adequate to satisfy its liquidity requirements for the twelve months after the date that these financial statements are issued, there is no assurance that the liquidity plan will be successfully implemented. Failure to successfully implement the liquidity plan may have a material adverse effect on its business, results of operations and financial position, and may adversely affect its ability to continue as a going concern. These consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded assets or the amounts and classification of liabilities or any other adjustments that might be necessary should the Company be unable to continue as a going concern. | Going Concern The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Company’s ability to operate profitably, to generate cash flows from operations, and to pursue financing arrangements to support its working capital requirements. The Company has suffered losses from operations of $ 2,569,459 1,624,565 15,249,858 8,556,642 510,128 Management believes that it has developed a liquidity plan, as summarized below, that, if executed successfully, should provide sufficient liquidity to meet the Company’s obligations as they become due for a reasonable period of time, and allow the development of its core business. The plan includes: ● Gaining positive cash-inflow from operating activities through continuous cost reductions and the sales of higher margin products. ● Raising additional cash through loans from related parties and potential equity offerings While the Company’s management believes that the measures described in the above liquidity plan will be adequate to satisfy its liquidity requirements for the twelve months after the date that the financial statements are issued, there is no assurance that the liquidity plan will be successfully implemented. Failure to successfully implement the liquidity plan may have a material adverse effect on its business, results of operations and financial position, and may adversely affect its ability to continue as a going concern. These consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded assets or the amounts and classification of liabilities or any other adjustments that might be necessary should the Company be unable to continue as a going concern. |
The Invasion of Ukraine | Covid – 19; The Invasion of Ukraine On March 11, 2020, the World Health Organization announced that infections caused by the corona virus disease of 2019 (“COVID-19”) had become pandemic. In furtherance of its zero-tolerance policy, the Government of China has adopted various regulations and orders, including mandatory quarantines, limits on the number of people that may gather in one location, closing non-essential businesses and travel bans to limit the spread of the disease. Many of these measures have been relaxed from time to time in various localities. However, beginning in the second half of 2021 to the end of 2022, the rate of COVID-19 cases has fluctuated in China and has increased in many provinces and cities including in Sichuan Province, where the Company is located. As a result of such increases there have been periodic short-term lockdowns and restrictions on travel in Sichuan Province. All of the Company’s operations, in particular its direct sales business and hotel, have been adversely impacted by the travel and work restrictions imposed on a temporary basis in China and Chengdu to limit the spread of COVID-19. China recently moved away from its reliance upon a “zero-tolerance” policy, it has been reported that the number of COVID-19 cases in China has surged after the government abandoned its zero-tolerance policy. It is likely that this sudden increase in COVID cases will cause many individuals to voluntarily restrict their travel which could adversely impact many industries in China. Moreover, the perception that Covid-19 and other infectious diseases are on the rise, may make some potential customers reluctant to attend large gatherings or meet with members of the Company’s sales team which could limit the Company’s sales growth. In response to COVID-19, the Company has implemented procedures to promote employee and customer safety. These measures will not significantly increase its operating costs. However, the Company cannot predict with certainty what measures may be taken by its suppliers and customers and the impact these measures may have on its future financial position, results of operations or cash flows. The invasion of Ukraine by the Russian Federation had an immediate impact on the global economy resulting in higher prices for oil and other commodities. The United States, United Kingdom, European Union and other countries responded to Russia’s invasion of Ukraine by imposing various economic sanctions and bans. Russia has responded with its own retaliatory measures. These measures have disrupted financial and economic markets. The global impact of these measures is continually evolving and cannot be predicted with certainty and there is no assurance that Russia’s invasion of Ukraine and responses thereto will not further disrupt the global economy and financial markets. While the invasion of Ukraine and responses thereto have not interrupted the Company’s operations, these or future developments resulting from the invasion of Ukraine could make it difficult to access debt and equity capital on attractive terms, if at all, and impact the Company’s ability to fund business activities, including proposed acquisitions. | Covid – 19; The Invasion of Ukraine On March 11, 2020, the World Health Organization announced that infections caused by the corona virus disease of 2019 (“COVID-19”) had become pandemic. In furtherance of its zero tolerance policy, the Government of China has adopted various regulations and orders, including mandatory quarantines, limits on the number of people that may gather in one location, closing non-essential businesses and travel bans to limit the spread of the disease. Many of these measures have been relaxed from time to time in various localities. However, beginning in the second half of 2021 to the end of 2022, the rate of COVID-19 cases has fluctuated in China and has increased in many provinces and cities including in Sichuan Province, where the Company is located. As a result of such increases there have been periodic short-term lockdowns and restrictions on travel in Sichuan Province. All of the Company’s operations, in particular its direct sales business and hotel, have been adversely impacted by the travel and work restrictions imposed on a temporary basis in China and Chengdu to limit the spread of COVID-19. Since January 2023, China has dropped all COVID restrictions. In response to COVID-19, the Company has implemented procedures to promote employee and customer safety. These measures will not significantly increase its operating costs. However, the Company cannot predict with certainty what measures may be taken by its suppliers and customers and the impact these measures may have on its future financial position, results of operations or cash flows. The invasion of Ukraine by the Russian Federation had an immediate impact on the global economy resulting in higher prices for oil and other commodities. The United States, United Kingdom, European Union and other countries responded to Russia’s invasion of Ukraine by imposing various economic sanctions and bans. Russia has responded with its own retaliatory measures. These measures have disrupted financial and economic markets. The global impact of these measures is continually evolving and cannot be predicted with certainty and there is no assurance that Russia’s invasion of Ukraine and responses thereto will not further disrupt the global economy and financial markets. While the invasion of Ukraine and responses thereto have not interrupted the Company’s operations, these or future developments resulting from the invasion of Ukraine could make it difficult to access debt and equity capital on attractive terms, if at all, and impact the Company’s ability to fund business activities, including proposed acquisitions. |
Use of Estimates | Use of Estimates In preparing consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates required by management, include the recoverability of long-lived assets, allowance for doubtful accounts, and the reserve for obsolete and slow-moving inventories. Actual results could differ from those estimates. | Use of Estimates In preparing consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates, required by management, include the recoverability of long-lived assets, allowance for doubtful accounts, and the reserve for obsolete and slow-moving inventories. Actual results could differ from those estimates. |
Reclassification | Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation and had no effect on previously reported consolidated net income (loss) or accumulated deficit. | Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation and had no effect on previously reported consolidated net income (loss) or accumulated deficit. |
Cash and Cash Equivalents | Cash and Cash Equivalents For financial statement purposes, the Company considers all highly liquid investments with an original maturity of three months or less to be cash and cash equivalents. | Cash and Cash Equivalents For financial statement purposes, the Company considers all highly liquid investments with an original maturity of three months or less to be cash and cash equivalents. |
Restricted Cash | Restricted Cash The restricted cash was cash maintained in temporarily frozen bank accounts held by Aixintang Pharmacy and its branches by the court for a judgement against Aixintang Pharmacy which Aixintang Pharmacy is in the process of appealing (see Note 16 – litigation). | Restricted Cash The restricted cash reflects the temporary freeze of bank accounts of Aixintang Pharmacy Co., Ltd. (“Aixintang Pharmacy”) and its branches by the court during the appeal of a judgement against Aixintang Pharmacy (see Note 16 – litigation). |
Accounts Receivable | Accounts Receivable The Company’s policy is to maintain an allowance for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. As of March 31, 2023 and December 31, 2022, the bad debt allowance was $ 230,076 272,550 The following table summarizes the activity related to the Company’s Accounts Receivable allowance for doubtful accounts for the three months ended March 31, 2023 and 2022: SCHEDULE OF ACCOUNTS RECEIVABLE ALLOWANCE FOR DOUBTFUL ACCOUNTS 2023 2022 For the Three Months ended March 31, 2023 2022 Beginning balance $ 272,550 $ 213,787 Provisions for bad debt - 27,422 Recoveries/Write offs (43,816 ) - Effect of translation 1,342 1,181 Ending balance $ 230,076 $ 242,390 | Accounts Receivable The Company’s policy is to maintain an allowance for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. As of December 31, 2022 and 2021, the bad debt allowance was $ 272,550 213,787 The following table summarizes the activity related to the Company’s Accounts Receivable allowance for doubtful accounts for the years ended December 31, 2022 and 2021: SCHEDULE OF ACCOUNTS RECEIVABLE ALLOWANCE FOR DOUBTFUL ACCOUNTS Years Ended December 31, 2022 2021 Beginning balance $ 213,787 $ 148,520 Additions * 196,164 124,242 Additions 196,164 124,242 Provisions for bad debt 45,953 - Recoveries/Write offs (165,227 ) (63,076 ) Effect of translation (18,127 ) 4,101 Ending balance $ 272,550 $ 213,787 * Due to the acquisition of subsidiaries during the years ended December 31, 2022 and 2021 |
Inventories | Inventories Inventories mainly consists of health supplements, drugs, pharmaceutical and nutritional products, food and beverage, hotel supplies and consumables. Inventories are valued at the lower of average cost or market, cost being determined on a moving weighted average method at the end of the month. Management compares the cost of inventories with the net realizable value and an allowance is made for writing down inventories to market value, if lower. The Company recorded provision for inventory reserve of $ 18,502 0 | Inventories Inventories mainly consists of health supplements, drugs, pharmaceutical and nutritional products, food and beverage, hotel supplies and consumables. Inventories are valued at the lower of average cost or market, cost being determined on a moving weighted average method at the end of the month. Management compares the cost of inventories with the net realizable value and an allowance is made for writing down inventories to market value, if lower. Management periodically evaluates the composition of its inventories to identify slow-moving and obsolete inventories to determine if a valuation allowance is required. The balance of reserve for inventory valuation as of December 31, 2022 and 2021 was $ 73,821 0 |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, less accumulated depreciation, and impairment losses, if any. Major repairs and betterments that significantly extend original useful lives or improve productivity are capitalized and depreciated over the period benefited. Maintenance and repairs are expensed as incurred. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line method for substantially all assets with 5 SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED LIVES Office furniture 5 Electronic equipment 2 3 Machinery 3 Leasehold improvements 3 Vehicles 5 | Property and Equipment Property and equipment are stated at cost, less accumulated depreciation, and impairment losses, if any. Major repairs and betterments that significantly extend original useful lives or improve productivity are capitalized and depreciated over the period benefited. Maintenance and repairs are expensed as incurred. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line method for substantially all assets with 5 SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED LIVES Office furniture 5 Electronic equipment 2 3 Machinery 3 Leasehold improvements 3 Vehicles 5 |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, which include property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, but at least annually. Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by it. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds its fair value. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Based on its review, the Company believes that, as of March 31, 2023 and December 31, 2022, there were no significant impairments of its long-lived assets. | Impairment of Long-Lived Assets Long-lived assets, which include property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, but at least annually. Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by it. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds its fair value. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Based on its review, the Company believes that, as of December 31, 2022 and 2021, there were no significant impairments of its long-lived assets. |
Goodwill | Goodwill The Company evaluates goodwill for impairment annually or more frequently when an event occurs or circumstances change that indicate the carrying value may not be recoverable. In testing goodwill for impairment, the Company may elect to utilize a qualitative assessment to evaluate whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment indicates that goodwill impairment is more likely than not, the Company performs a two-step impairment test. The Company tests goodwill for impairment under the two-step impairment test by first comparing the book value of net assets to the fair value of the reporting units. If the fair value is determined to be less than the book value or qualitative factors indicate that it is more likely than not that goodwill is impaired, a second step is performed to compute the amount of impairment as the difference between the estimated fair value of goodwill and the carrying value. The Company estimates the fair value of the reporting units using discounted cash flows. Forecasts of future cash flows are based on our best estimate of future net sales and operating expenses, based primarily on expected category expansion, pricing, market segment share, and general economic conditions. The Company completed the required testing of goodwill for impairment as of December 31, 2022, and determined that goodwill was impaired because of the current financial condition of the Company and the Company’s inability to generate future operating income without substantial sales volume increases, which are highly uncertain. Furthermore, the uncertainty of the future cash flows indicates that the recoverability of goodwill is not reasonably assured. The goodwill write-down was reflected as an impairment loss, $ 3,823,770 | Goodwill The Company evaluates goodwill for impairment annually or more frequently when an event occurs or circumstances change that indicate the carrying value may not be recoverable. In testing goodwill for impairment, the Company may elect to utilize a qualitative assessment to evaluate whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment indicates that goodwill impairment is more likely than not, the Company performs a two-step impairment test. The Company tests goodwill for impairment under the two-step impairment test by first comparing the book value of net assets to the fair value of the reporting units. If the fair value is determined to be less than the book value or qualitative factors indicate that it is more likely than not that goodwill is impaired, a second step is performed to compute the amount of impairment as the difference between the estimated fair value of goodwill and the carrying value. The Company estimates the fair value of the reporting units using discounted cash flows. Forecasts of future cash flows are based on our best estimate of future net sales and operating expenses, based primarily on expected category expansion, pricing, market segment share, and general economic conditions. The Company completed the required testing of goodwill for impairment as of December 31, 2022, and determined that goodwill was impaired because of the current financial condition of the Company and the Company’s inability to generate future operating income without substantial sales volume increases, which are highly uncertain. Furthermore, the Company anticipates future cash flows indicate that the recoverability of goodwill is not reasonably assured. The goodwill write-down was reflected as an impairment loss, $ 3,823,770 |
Income Taxes | Income Taxes Income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company follows Accounting Standards Codification (“ASC”) Topic 740, which prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740 also provides guidance on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Under ASC Topic 740, when tax returns are filed, it is likely that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the consolidated financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in selling, general and administrative expenses in the statement of income. At March 31, 2023 and December 31, 2022, the Company did not take any uncertain positions that would necessitate recording a tax related liability. | Income Taxes Income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company follows Accounting Standards Codification (“ASC”) Topic 740, which prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740 also provides guidance on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Under ASC Topic 740, when tax returns are filed, it is likely that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the consolidated financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in selling, general and administrative expenses in the statement of income. At December 31, 2022 and 2021, the Company did not take any uncertain positions that would necessitate recording a tax related liability. |
Revenue Recognition | Revenue Recognition Revenue from sale of goods under Topic 606 ● executed contract(s) with customers that the Company believes is legally enforceable; ● identification of performance obligation in the respective contract; ● determination of the transaction price for each performance obligation in the respective contract; ● allocation of the transaction price to each performance obligation; and ● recognition of revenue only when the Company satisfies each performance obligation. The Company’s revenue recognition policies for its various operating segments are as follows: Products The Company’s revenue from sales of products is recognized when goods are delivered to the customer and no other obligation exists. The Company does not provide unconditional return or other concessions to the customer. The Company’s sales policy allows for the return of unopened products for cash after deducting certain service and transaction fees. As an alternative to the product return option, the customers have the option of asking for an exchange for products with the same value. Sales revenue of AiXin Zhonghong represents the invoiced value of goods, net of value-added taxes (“VAT”). All of the Company’s products sold in China are subject to the PRC VAT of 13 Hotel Hotel revenues are primarily derived from the rental of rooms, food and beverage sales and other ancillary goods and services, including but not limited to souvenir, parking and conference reservation. Each of these products and services represents a distinct performance obligation and, in exchange for these services, the Company receives fixed amounts based on published rates or negotiated contracts. Payment is due in full at the time when the services are rendered or the goods are provided. Room rental revenue is recognized on a daily basis when rooms are occupied. Food and beverage revenue and other goods and services revenue are recognized when they have been delivered or rendered to the guests as the respective performance obligations are satisfied. All of the hotel’s goods sold in China are subject to the PRC VAT of 6 Pharmacies The Company’s retail drugstores (Aixintang Pharmacies) recognize revenue at the time the customer takes possession of the merchandise. For pharmacy sales, each prescription claim is its own arrangement with the customer and is a performance obligation. Aixintang Pharmacies generally receives payments from customers as it satisfies its performance obligations. The Company records a receivable when it has an unconditional right to receive payment and only the passage of time is required before payment is due. Sales revenue represents the invoiced value of goods, net of VAT. All of Aixintang Pharmacies’ products sold in China are eligible for the PRC VAT of 0 Manufacture and Sale The Company’s new subsidiary Runcangsheng recognizes revenue at the time products are shipped as this satisfies its performance obligation. The Company records a receivable for its sales when it has an unconditional right to receive payment and only the passage of time is required before payment is due. Sales revenue represents the invoiced value of goods, net of value-added taxes (“VAT”). All of the Company’s products sold in China are subject to the PRC VAT of 13 | Revenue Recognition ASU No. 2014-09 Revenue from Contracts with Customers Topic 606. Topic 605, Revenue Recognition Revenue from sale of goods under Topic 606 ● executed contract(s) with customers that the Company believes is legally enforceable; ● identification of performance obligation in the respective contract; ● determination of the transaction price for each performance obligation in the respective contract; ● allocation of the transaction price to each performance obligation; and ● recognition of revenue only when the Company satisfies each performance obligation. The Company’s revenue recognition policies for its various operating segments are as follows: Advertising and Products Advertising Revenue Commencing in the third quarter of 2019, AiXin Zhonghong began to provide advertising services to its clients. Advertising contracts are signed to establish the price and advertising services to be provided. Pursuant to the advertising contracts, the Company provides advertising and marketing services to its clients through exhibition events, conferences, and person-to-person marketing. The Company performs a credit assessment of the customer to assess the collectability of the contract price prior to entering into contracts. Most of the advertisement contracts designated that the Company perform such advertising services for its clients through exhibition events, conferences, and person-to-person marketing during the contracted period, regardless of the number of such events. As such, the Company determined that the performance obligation is satisfied over time during the contracted period and revenue is recognized accordingly. Such advertising revenue amounted to $ 0 1,944,811 All of the advertising revenue is subject to the PRC VAT of 6 Product Revenue The Company’s revenue from sale of products is recognized when goods are delivered to the customer and no other obligation exists. The Company does not provide unconditional return or other concessions to the customer. The Company’s sales policy allows for the return of unopened products for cash after deducting certain service and transaction fees. As an alternative to the product return option, the customers have options of asking for an exchange for products with the same value. Sales revenue of AiXin Zhonghong represents the invoiced value of goods, net of value-added taxes (“VAT”). All of the Company’s products sold in China are subject to the PRC VAT of 13 Hotel Hotel revenues are primarily derived from the rental of rooms, food and beverage sales and other ancillary goods and services, including but not limited to souvenir, parking and conference reservation. Each of these products and services represents a distinct performance obligation and, in exchange for these services, the Company receives fixed amounts based on published rates or negotiated contracts. Payment is due in full at the time when the services are rendered or the goods are provided. Room rental revenue is recognized on a daily basis when rooms are occupied. Food and beverage revenue and other goods and services revenue are recognized when they have been delivered or rendered to the guests as the respective performance obligations are satisfied. All of the hotel’s goods sold in China are subject to the PRC VAT of 6 Pharmacies The Company’s retail drugstores (Aixintang Pharmacies) recognize revenue at the time the customer takes possession of the merchandise. For pharmacy sales, each prescription claim is its own arrangement with the customer and is a performance obligation. Aixintang Pharmacies generally receives payments from customers as it satisfies its performance obligation. The Company records a receivable when it has an unconditional right to receive payment and only the passage of time is required before payment is due. Sales revenue represents the invoiced value of goods, net of VAT. All of Aixintang Pharmacies’ products sold in China are eligible for the PRC VAT of 0 Manufacture and Sale The Company’s new subsidiary Runcangsheng recognizes revenue at the time products are shipped as this satisfies its performance obligation. The Company records a receivable for the sales when it has an unconditional right to receive payment and only the passage of time is required before payment is due. Sales revenue represents the invoiced value of goods, net of value-added taxes (“VAT”). All of the Company’s products sold in China are subject to the PRC VAT of 13 |
Unearned Revenue | Unearned Revenue The Company’s unearned revenue primarily consists of advances received from customers for the purchase of products prior to the delivery of goods, and for the rental of hotel rooms prior to the delivery of service. The delivery of products and room rental services is (normally within one year) based upon contract terms and customer demand. | Unearned Revenue The Company’s unearned revenue primarily consists of advances received from customers for the rental of hotel rooms prior to the delivery of service. The room rental services are delivered (normally within one year) based upon contract terms and customer demand. |
Concentration of Credit Risk | Concentration of Credit Risk The operations of the Company are in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by the political, economic, and legal environments in the PRC, and by the general state of the PRC economy. The Company has cash on hand and demand deposits in accounts maintained with state-owned banks within the PRC. Cash in state-owned banks is covered by insurance up to RMB 500,000 72,500 During the three months ended March 31, 2023 and 2022, the Company had no customer that accounted for over 10 During the three months ended March 31, 2023, the Company had two suppliers that accounted for 17 15 During the three months ended March 31, 2022, the Company had no supplier that accounted for over 10 | Concentration of Credit Risk The operations of the Company are in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by the political, economic, and legal environments in the PRC, and by the general state of the PRC economy. The Company has cash on hand and demand deposits in accounts maintained with state-owned banks within the PRC. Cash in state-owned banks is covered by insurance up to RMB 500,000 72,500 During the year ended December 31, 2022, the Company had no customer that accounted for over 10% of its total revenue. During the year ended December 31, 2021, the Company had two major customers that accounted for over 10% of its total revenue. SCHEDULE OF CONCENTRATION OF RISK BY RISK FACTORS Customer Net sales for the year ended % of total revenue A(1) $ 1,286,792 42 % B 658,018 21 % During the year ended December 31, 2022, the Company had three major suppliers that accounted for over 10% of its total purchases. Supplier Net purchases for the % of total purchase C $ 189,150 14 % D (2) 149,806 11 % During the year ended December 31, 2021, the Company had one major supplier accounted for over 10% of its total purchase. Supplier Net purchases for the % of total purchase E $ 233,187 40 % (1) Represented advertising revenues from this customer during the year ended December 31, 2021. The Company also purchased inventory from this customer in year ended December 31, 2021. (2) The Company purchased inventory from this supplier, Runcansheng, in the year ended December 31, 2022. The Company acquired all of the outstanding equity of Runcangsheng on September 30, 2022 (see Note 17). |
Leases | Leases The Company determines if an arrangement is a lease at inception under FASB ASC Topic 842, Right of Use Assets (“ROU”) and lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As most of its leases do not provide an implicit rate, it uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The ROU assets include adjustments for prepayments and accrued lease payments. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise such options. ROU assets are reviewed for impairment when indicators of impairment are present. ROU assets from operating and finance leases are subject to the impairment guidance in ASC 360, Property, Plant, and Equipment, as ROU assets are long-lived nonfinancial assets. ROU assets are tested for impairment individually or as part of an asset group if the cash flows related to the ROU asset are not independent from the cash flows of other assets and liabilities. An asset group is the unit of accounting for long-lived assets to be held and used, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. The Company recognized no impairment of ROU assets as of March 31, 2023 and December 31, 2022. Operating leases are included in operating lease ROU and operating lease liabilities (current and non-current), on the consolidated balance sheets. | Leases The Company determines if an arrangement is a lease at inception under FASB ASC Topic 842, Right of Use Assets (“ROU”) and lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As most of its leases do not provide an implicit rate, it uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The ROU assets include adjustments for prepayments and accrued lease payments. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise such options. ROU assets are reviewed for impairment when indicators of impairment are present. ROU assets from operating and finance leases are subject to the impairment guidance in ASC 360, Property, Plant, and Equipment, as ROU assets are long-lived nonfinancial assets. ROU assets are tested for impairment individually or as part of an asset group if the cash flows related to the ROU asset are not independent from the cash flows of other assets and liabilities. An asset group is the unit of accounting for long-lived assets to be held and used, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. The Company recognized no impairment of ROU assets as of December 31, 2022 and 2021. Operating leases are included in operating lease ROU and operating lease liabilities (current and non-current), on the consolidated balance sheets. |
Statement of Cash Flows | Statement of Cash Flows In accordance with ASC Topic 230, “Statement of Cash Flows,” | Statement of Cash Flows In accordance with ASC Topic 230, “Statement of Cash Flows,” |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of certain of the Company’s financial instruments, including cash and equivalents, accrued liabilities and accounts payable, approximate their fair value due to their short maturities. FASB ASC Topic 825, “Financial Instruments,” requires disclosure of the fair value of financial instruments held by the Company. The carrying amounts reported in the consolidated balance sheets for current liabilities each qualify as financial instruments and are a reasonable estimate of their fair value because of the short period of time between the origination of such instruments and their expected realization and the current market rate of interest. | Fair Value of Financial Instruments The carrying amounts of certain of the Company’s financial instruments, including cash and equivalents, accrued liabilities and accounts payable, approximate their fair value due to their short maturities. FASB ASC Topic 825, “Financial Instruments,” requires disclosure of the fair value of financial instruments held by the Company. The carrying amounts reported in the consolidated balance sheets for current liabilities each qualify as financial instruments and are a reasonable estimate of their fair value because of the short period of time between the origination of such instruments and their expected realization and the current market rate of interest. |
Fair Value Measurements and Disclosures | Fair Value Measurements and Disclosures ASC Topic 820, “Fair Value Measurements and Disclosures,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The three levels are defined as follow: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. As of March 31, 2023 and December 31, 2022, the Company did not identify any assets and liabilities that are required to be presented on the balance sheet at fair value. | Fair Value Measurements and Disclosures ASC Topic 820, “Fair Value Measurements and Disclosures,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The three levels are defined as follow: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. As of December 31, 2022 and 2021, the Company did not identify any assets and liabilities that are required to be presented on the balance sheet at fair value. |
Foreign Currency Translation and Comprehensive Income (Loss) | Foreign Currency Translation and Comprehensive Income (Loss) The functional currency of the Company is RMB. For financial reporting purposes, RMB is translated into USD as the reporting currency. Assets and liabilities are translated at the exchange rate in effect at the balance sheet dates. Revenues and expenses are translated at the average rate of exchange prevailing during the reporting period. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of stockholders’ equity as “Accumulated other comprehensive income”. Gains and losses resulting from foreign currency transactions are included in income. There was no significant fluctuation in the exchange rate for the conversion of RMB to USD after the balance sheet date. The Company uses FASB ASC Topic 220, “Comprehensive Income”. Comprehensive loss is comprised of net loss and all changes to the statements of stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. Comprehensive income (loss) for the three months ended March 31, 2023 and 2022 consisted of net income (loss) and foreign currency translation adjustments. | Foreign Currency Translation and Comprehensive Income (Loss) The functional currency of the Company is RMB. For financial reporting purposes, RMB is translated into USD as the reporting currency. Assets and liabilities are translated at the exchange rate in effect at the balance sheet dates. Revenues and expenses are translated at the average rate of exchange prevailing during the reporting period. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of stockholders’ equity as “Accumulated other comprehensive income”. Gains and losses resulting from foreign currency transactions are included in income. There was no significant fluctuation in the exchange rate for the conversion of RMB to USD after the balance sheet date. The Company uses FASB ASC Topic 220, “Comprehensive Income”. Comprehensive loss is comprised of net loss and all changes to the statements of stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. Comprehensive income (loss) for the year ended December 31, 2022 and 2021 consisted of net income (loss) and foreign currency translation adjustments. |
Earnings per Share | Earnings per Share Basic income (loss) per share is computed on the basis of the weighted average number of common shares outstanding during the period. Dilution is computed by applying the treasury stock method for options and warrants. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. As of March 31, 2023 and December 31, 2022, the Company did not have any potentially dilutive instruments. | Earnings per Share Basic income (loss) per share is computed on the basis of the weighted average number of common shares outstanding during the period. Dilution is computed by applying the treasury stock method for options and warrants. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. As of December 31, 2022 and 2021, the Company did not have any potentially dilutive instruments. |
Stock-Based Compensation | Stock-Based Compensation The Company periodically grants stock options, warrants and awards to employees and non-employees in non-capital raising transactions as compensation for services rendered. The Company accounts for stock option, stock warrant and stock award grants to employees based on the authoritative guidance provided by the FASB where the value of the award is measured on the date of grant and recognized over the vesting period. The Company accounts for stock option, stock warrant and stock award grants to non-employees in accordance with the authoritative guidance of the FASB where the value of the stock compensation is determined based upon the measurement date at either a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete. Stock-based compensation charges generally are amortized over the vesting period on a straight-line basis. In certain circumstances where there are no future performance requirements by the employees and non-employees, option, warrant and award grants are immediately vested and the total stock-based compensation charge is recorded in the period of the measurement date. | Stock-Based Compensation The Company periodically grants stock options, warrants and stock awards to employees and non-employees in non-capital raising transactions as compensation for services rendered. The Company accounts for stock option, stock warrant and stock award grants to employees based on the authoritative guidance provided by the FASB where the value of the award is measured on the date of grant and recognized over the vesting period. The Company accounts for stock option, stock warrant and stock award grants to non-employees in accordance with the authoritative guidance of the FASB where the value of the stock compensation is determined based upon the measurement date at either a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete. Stock-based compensation charges generally are amortized over the vesting period on a straight-line basis. In certain circumstances where there are no future performance requirements by the employees and non-employees, option, warrant and award grants are immediately vested and the total stock-based compensation charge is recorded in the period of the measurement date. |
Segment Reporting | Segment Reporting ASC Topic 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s chief operating decision maker organizes segments within the Company for making operating decisions assessing performance and allocating resources. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. The Company manages its business as four operating segments, products, pharmacies, hotel, and manufacture and sales, all of which are located in the PRC. All of its revenues are derived in the PRC. All long-lived assets are located in PRC. The following table shows the Company’s operations by business segment for the three months ended March 31, 2023 and 2022. SCHEDULE OF SEGMENTS INFORMATION 2023 2022 For the Three Months Ended March 31, 2023 2022 Net revenue Products $ 163,260 $ 16,098 Pharmacies 223,516 158,894 Hotel 332,417 243,686 Manufacture and sale 35,520 - Total revenues, net $ 754,713 $ 418,678 Operating costs and expenses Products Cost of goods sold $ 34,734 $ 4,683 Operating expenses 367,789 298,042 Pharmacies Cost of goods sold 138,633 119,841 Operating expenses 188,996 169,309 Hotel Hotel operating costs 477,794 511,619 Operating expenses (8,885 ) 87,338 Manufacture and sale Cost of goods sold 2,121 - Operating expenses 105,501 - Total operating costs and expenses $ 1,306,683 $ 1,190,832 Loss from operations Products $ (239,263 ) $ (286,627 ) Pharmacies (104,113 ) (130,256 ) Hotel (136,492 ) (355,271 ) Manufacture and sale (72,102 ) - Loss from operations $ (551,970 ) $ (772,154 ) Segment assets As of As of Products $ 436,842 $ 410,754 Pharmacies 672,533 758,675 Hotel 821,202 970,385 Manufacture and sale 2,888,653 2,911,070 Total assets $ 4,819,230 $ 5,050,884 As the acquisition of Runcangsheng was consummated as of September 30, 2022 (see Note 17), the revenues and operating results of the manufacture and sale segment were included in the financial statements of the Company beginning on October 1, 2022. | Segment Reporting ASC Topic 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s chief operating decision maker organizes segments within the Company for making operating decisions assessing performance and allocating resources. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. The Company manages its business as four operating segments, advertising and products, pharmacies, hotels, and manufacture and sale, all of which are located in the PRC. All of its revenues are derived in the PRC. All long-lived assets are located in PRC. The following table shows the Company’s operations by business segment for the year ended December 31, 2022 and 2021. Revenues and expenses for the Pharmacies, Hotel and Manufacture and sale segments commenced as of the respective dates of the completion of their acquisitions: SCHEDULE OF INFORMATION SEGMENTS For the Years Ended December 31, 2022 2021 Net revenue Advertising and products $ 823,930 $ 2,406,988 Pharmacies 789,347 280,447 Hotel 856,884 378,798 Manufacture and sale 238,399 - Total revenues, net $ 2,708,560 $ 3,066,233 Operating costs and expenses Advertising and products Cost of goods sold $ 171,345 $ 316,750 Operating expenses 1,526,246 1,344,543 Pharmacies Cost of goods sold 578,092 218,735 Operating expenses 622,835 252,513 Hotel Hotel operating costs 1,739,948 744,594 Operating expenses 310,902 216,036 Manufacture and sale Cost of goods sold 353,723 - Operating expense (25,072 ) - Total operating costs and expenses $ 5,278,019 $ 3,093,171 (Loss) income from operations Advertising and products $ (873,661 ) $ 745,695 Pharmacies (411,580 ) (190,801 ) Hotel (1,193,966 ) (581,832 ) Manufacture and Sale (90,252 ) - (Loss) income from operations $ (2,569,459 ) $ (26,938 ) Segment assets As of As of Advertising and products $ 410,754 $ 8,914,211 Pharmacies 758,675 931,706 Hotel 970,385 1,814,429 Manufacture and sale 2,911,070 - Total assets $ 5,050,884 $ 11,660,346 As the acquisition of Runcangsheng has been consummated as of December 31, 2022 (see Note 17), the revenues and operating results of the manufacture and sale segment will be included in the financial statements of the Company beginning on October 1, 2022. |
New Accounting Pronouncements | New Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its FV, not to exceed the carrying amount of goodwill. The guidance should be adopted on a prospective basis. As a smaller reporting company, the standard will be effective for the Company for interim and annual reporting periods beginning after December 15, 2022, with early adoption permitted. The Company is currently evaluating the impact of adopting this standard on the Company’s consolidated financial statements presentation or disclosures. In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. This ASU (1) simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock; (2) revises the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification; and (3) revises the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. For SEC filers, excluding smaller reporting companies, ASU 2020-06 is effective for fiscal years beginning after December 15, 2021 including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. For all other entities, ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Entities should adopt the guidance as of the beginning of the fiscal year of adoption and cannot adopt the guidance in an interim reporting period. The adoption of ASU 2020-06 is not expected to have any impact on the Company’s consolidated financial statements presentation or disclosures. The Company’s management does not believe that any other recently issued, but not yet effective, authoritative guidance, if currently adopted, would have a material impact on the Company’s financial statement presentation or disclosures. | New Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance should be adopted on a prospective basis. As a smaller reporting company, the standard will be effective for the Company for interim and annual reporting periods beginning after December 15, 2022, with early adoption permitted. The Company is currently evaluating the impact of adopting this standard on the Company’s consolidated financial statements presentation or disclosures. In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. This ASU (1) simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock; (2) revises the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification; and (3) revises the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. For SEC filers, excluding smaller reporting companies, ASU 2020-06 is effective for fiscal years beginning after December 15, 2021 including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. For all other entities, ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Entities should adopt the guidance as of the beginning of the fiscal year of adoption and cannot adopt the guidance in an interim reporting period. The adoption of ASU 2020-06 is not expected to have any impact on the Company’s consolidated financial statements presentation or disclosures. The Company’s management does not believe that any other recently issued, but not yet effective, authoritative guidance, if currently adopted, would have a material impact on the Company’s financial statement presentation or disclosures. |
Unaudited Interim Financial Information | Unaudited Interim Financial Information These unaudited interim financial statements have been prepared in accordance with GAAP for interim financial reporting and the rules and regulations of the Securities and Exchange Commission that permit reduced disclosure for interim periods. Therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. In the opinion of management, all adjustments of a normal recurring nature necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented have been made. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the year ending December 31, 2023. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
SCHEDULE OF ACCOUNTS RECEIVABLE ALLOWANCE FOR DOUBTFUL ACCOUNTS | The following table summarizes the activity related to the Company’s Accounts Receivable allowance for doubtful accounts for the three months ended March 31, 2023 and 2022: SCHEDULE OF ACCOUNTS RECEIVABLE ALLOWANCE FOR DOUBTFUL ACCOUNTS 2023 2022 For the Three Months ended March 31, 2023 2022 Beginning balance $ 272,550 $ 213,787 Provisions for bad debt - 27,422 Recoveries/Write offs (43,816 ) - Effect of translation 1,342 1,181 Ending balance $ 230,076 $ 242,390 | The following table summarizes the activity related to the Company’s Accounts Receivable allowance for doubtful accounts for the years ended December 31, 2022 and 2021: SCHEDULE OF ACCOUNTS RECEIVABLE ALLOWANCE FOR DOUBTFUL ACCOUNTS Years Ended December 31, 2022 2021 Beginning balance $ 213,787 $ 148,520 Additions * 196,164 124,242 Additions 196,164 124,242 Provisions for bad debt 45,953 - Recoveries/Write offs (165,227 ) (63,076 ) Effect of translation (18,127 ) 4,101 Ending balance $ 272,550 $ 213,787 * Due to the acquisition of subsidiaries during the years ended December 31, 2022 and 2021 |
SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED LIVES | SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED LIVES Office furniture 5 Electronic equipment 2 3 Machinery 3 Leasehold improvements 3 Vehicles 5 | SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED LIVES Office furniture 5 Electronic equipment 2 3 Machinery 3 Leasehold improvements 3 Vehicles 5 |
SCHEDULE OF CONCENTRATION OF RISK BY RISK FACTORS | During the year ended December 31, 2021, the Company had two major customers that accounted for over 10% of its total revenue. SCHEDULE OF CONCENTRATION OF RISK BY RISK FACTORS Customer Net sales for the year ended % of total revenue A(1) $ 1,286,792 42 % B 658,018 21 % During the year ended December 31, 2022, the Company had three major suppliers that accounted for over 10% of its total purchases. Supplier Net purchases for the % of total purchase C $ 189,150 14 % D (2) 149,806 11 % During the year ended December 31, 2021, the Company had one major supplier accounted for over 10% of its total purchase. Supplier Net purchases for the % of total purchase E $ 233,187 40 % (1) Represented advertising revenues from this customer during the year ended December 31, 2021. The Company also purchased inventory from this customer in year ended December 31, 2021. (2) The Company purchased inventory from this supplier, Runcansheng, in the year ended December 31, 2022. The Company acquired all of the outstanding equity of Runcangsheng on September 30, 2022 (see Note 17). | |
SCHEDULE OF SEGMENTS INFORMATION | The following table shows the Company’s operations by business segment for the three months ended March 31, 2023 and 2022. SCHEDULE OF SEGMENTS INFORMATION 2023 2022 For the Three Months Ended March 31, 2023 2022 Net revenue Products $ 163,260 $ 16,098 Pharmacies 223,516 158,894 Hotel 332,417 243,686 Manufacture and sale 35,520 - Total revenues, net $ 754,713 $ 418,678 Operating costs and expenses Products Cost of goods sold $ 34,734 $ 4,683 Operating expenses 367,789 298,042 Pharmacies Cost of goods sold 138,633 119,841 Operating expenses 188,996 169,309 Hotel Hotel operating costs 477,794 511,619 Operating expenses (8,885 ) 87,338 Manufacture and sale Cost of goods sold 2,121 - Operating expenses 105,501 - Total operating costs and expenses $ 1,306,683 $ 1,190,832 Loss from operations Products $ (239,263 ) $ (286,627 ) Pharmacies (104,113 ) (130,256 ) Hotel (136,492 ) (355,271 ) Manufacture and sale (72,102 ) - Loss from operations $ (551,970 ) $ (772,154 ) Segment assets As of As of Products $ 436,842 $ 410,754 Pharmacies 672,533 758,675 Hotel 821,202 970,385 Manufacture and sale 2,888,653 2,911,070 Total assets $ 4,819,230 $ 5,050,884 | The following table shows the Company’s operations by business segment for the year ended December 31, 2022 and 2021. Revenues and expenses for the Pharmacies, Hotel and Manufacture and sale segments commenced as of the respective dates of the completion of their acquisitions: SCHEDULE OF INFORMATION SEGMENTS For the Years Ended December 31, 2022 2021 Net revenue Advertising and products $ 823,930 $ 2,406,988 Pharmacies 789,347 280,447 Hotel 856,884 378,798 Manufacture and sale 238,399 - Total revenues, net $ 2,708,560 $ 3,066,233 Operating costs and expenses Advertising and products Cost of goods sold $ 171,345 $ 316,750 Operating expenses 1,526,246 1,344,543 Pharmacies Cost of goods sold 578,092 218,735 Operating expenses 622,835 252,513 Hotel Hotel operating costs 1,739,948 744,594 Operating expenses 310,902 216,036 Manufacture and sale Cost of goods sold 353,723 - Operating expense (25,072 ) - Total operating costs and expenses $ 5,278,019 $ 3,093,171 (Loss) income from operations Advertising and products $ (873,661 ) $ 745,695 Pharmacies (411,580 ) (190,801 ) Hotel (1,193,966 ) (581,832 ) Manufacture and Sale (90,252 ) - (Loss) income from operations $ (2,569,459 ) $ (26,938 ) Segment assets As of As of Advertising and products $ 410,754 $ 8,914,211 Pharmacies 758,675 931,706 Hotel 970,385 1,814,429 Manufacture and sale 2,911,070 - Total assets $ 5,050,884 $ 11,660,346 |
OTHER RECEIVABLES AND PREPAID_2
OTHER RECEIVABLES AND PREPAID EXPENSES (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Other Receivables And Prepaid Expenses | ||
SCHEDULE OF OTHER RECEIVABLES AND PREPAID EXPENSES | Other receivables and prepaid expenses consisted of the following at March 31, 2023 and December 31, 2022: SCHEDULE OF OTHER RECEIVABLES AND PREPAID EXPENSES March 31, 2023 December 31, 2022 Deposits $ 13,001 $ 15,546 Prepaid expenses 38,796 9,490 Employees’ social insurance 10,268 10,124 Others 11,588 7,471 Total $ 73,653 $ 42,631 | Other receivables and prepaid expenses consisted of the following at December 31, 2022 and 2021: SCHEDULE OF OTHER RECEIVABLES AND PREPAID EXPENSES December 31, 2022 December 31, 2021 Deposits $ 15,546 $ 68,433 Prepaid expenses 9,490 50,221 Employees’ social insurance 10,124 13,839 Others 7,471 10,788 Total $ 42,631 $ 143,281 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | ||
SCHEDULE OF INVENTORIES | Inventories consisted of the following at March 31, 2023 and December 31, 2022: SCHEDULE OF INVENTORIES March 31, 2023 December 31, 2022 Raw material $ 127,896 $ 62,462 Work in process 2,895 15,315 Finished goods-health supplements 100,772 521 Drugs, pharmaceutical and nutritional products 469,757 412,129 Food and beverage, hotel supplies and consumables 74,294 82,646 Total $ 775,614 $ 573,073 Less: reserve for inventory 92,579 73,821 Total inventories, net $ 683,035 $ 499,252 | Inventories consisted of the following at December 31, 2022 and 2021: SCHEDULE OF INVENTORIES December 31, 2022 December 31, 2021 Raw material $ 62,462 $ - Work in process 15,315 - Finished goods-health supplements 521 6,201 Drugs, pharmaceutical and nutritional products 412,129 122,966 Food and beverage, hotel supplies and consumables 82,646 104,287 Total $ 573,073 $ 233,454 Less: reserve for inventory 73,821 - Total inventories, net $ 499,252 $ 233,454 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||
SCHEDULE OF PROPERTY AND EQUIPMENT | Property and equipment consisted of the following at March 31, 2023 and December 31, 2022: SCHEDULE OF PROPERTY AND EQUIPMENT March 31, 2023 December 31, 2022 Vehicles $ 428,676 $ 426,836 Office furniture 82,905 82,549 Electronic equipment 21,550 20,607 Machinery 1,247,377 1,241,778 Leasehold improvements 1,143,996 1,139,087 Other 18,203 17,485 Total 2,942,707 2,928,342 Less: Accumulated depreciation (1,064,695 ) (956,549 ) Property and equipment, net $ 1,878,012 $ 1,971,793 | Property and equipment consisted of the following at December 31, 2022 and 2021: SCHEDULE OF PROPERTY AND EQUIPMENT December 31, 2022 December 31, 2021 Vehicles $ 426,836 $ 295,502 Office furniture 82,549 64,263 Electronic equipment 20,607 22,304 Machinery 1,241,778 106,080 Leasehold improvements 1,139,087 256,548 Other 17,485 6,374 Total 2,928,342 751,071 Less: Accumulated depreciation (956,549 ) (460,923 ) Property and equipment, net $ 1,971,793 $ 290,148 |
INTANGIBLE ASSET, NET (Tables)
INTANGIBLE ASSET, NET (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
SCHEDULE OF INTANGIBLE ASSET | Intangible asset consisted of the following at March 31, 2023 and December 31, 2022: SCHEDULE OF INTANGIBLE ASSET March 31, 2023 December 31, 2022 Software $ 8,601 $ 8,564 Less: Accumulated amortization (7,509 ) (7,295 ) Intangible asset, net $ 1,092 $ 1,269 | Intangible asset consisted of the following at December 31, 2022 and 2021: SCHEDULE OF INTANGIBLE ASSET December 31, 2022 December 31, 2021 Software $ 8,564 $ 7,896 Less: Accumulated amortization (7,295 ) (5,956 ) Intangible asset, net $ 1,269 $ 1,940 |
TAXES PAYABLE (Tables)
TAXES PAYABLE (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Taxes Payable | ||
SCHEDULE OF TAX PAYABLE | Taxes payable consisted of the following at March 31, 2023 and December 31, 2022: SCHEDULE OF TAX PAYABLE March 31, 2023 December 31, 2022 Value-added $ 2,102 $ 56,806 Income 31,052 30,919 City construction 472 3,746 Education 380 2,184 Other 10,577 10,445 Taxes payable $ 44,583 $ 104,100 | Taxes payable consisted of the following at December 31, 2022 and 2021: SCHEDULE OF TAX PAYABLE December 31, 2022 December 31, 2021 Value-added $ 56,806 $ 97,917 Income 30,919 109,396 City construction 3,746 7,018 Education 2,184 5,064 Other 10,445 13,242 Taxes payable $ 104,100 $ 232,637 |
ACCRUED LIABILITIES AND OTHER_2
ACCRUED LIABILITIES AND OTHER PAYABLES (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Payables and Accruals [Abstract] | ||
SCHEDULE OF ACCRUED LIABILITIES AND OTHER PAYABLES | Accrued liabilities and other payables consisted of the following at March 31, 2023 and December 31, 2022: SCHEDULE OF ACCRUED LIABILITIES AND OTHER PAYABLES March 31, 2023 December 31, 2022 Accrued employees’ social insurance $ 266,690 $ 270,349 Accrued payroll and commission 309,903 307,331 Accrued rent expense 30,107 32,746 Construction payable 1,363,366 1,384,674 Payable for equipment purchase 26,833 32,278 Accrued professional fees 160,648 233,894 Deposit 11,357 11,308 Other payables 63,363 83,910 Total $ 2,232,267 $ 2,356,490 | Accrued liabilities and other payables consisted of the following at December 31, 2022 and 2021: SCHEDULE OF ACCRUED LIABILITIES AND OTHER PAYABLES December 31, 2022 December 31, 2021 Accrued employees’ social insurance $ 270,349 $ 327,735 Accrued payroll and commission 307,331 179,183 Accrued rent expense 32,746 29,000 Construction payable 1,384,674 111,807 Payable for equipment purchase 32,278 - Accrued professional fees 233,894 50,840 Deposit 11,308 12,239 Other payables 83,910 41,596 Total $ 2,356,490 $ 752,400 |
LEASE (Tables)
LEASE (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Lease | ||
SCHEDULE OF OPERATING LEASE LIABILITIES | Balance sheet information related to the Company’s leases is presented below: SCHEDULE OF OPERATING LEASE LIABILITIES March 31, 2023 December 31, 2022 Operating Leases Operating lease right-of-use assets $ 811,021 $ 999,285 Operating lease liabilities – current $ 748,331 $ 883,583 Operating lease liability – non-current 179,631 194,725 Total operating lease liabilities $ 927,962 $ 1,078,308 | Balance sheet information related to the Company’s leases is presented below: SCHEDULE OF OPERATING LEASE LIABILITIES December 31, 2022 December 31, 2021 Operating Leases Operating lease right-of-use assets $ 999,285 $ 2,049,775 Operating lease liabilities – current $ 883,583 $ 848,230 Operating lease liability – non-current 194,725 1,138,710 Total operating lease liabilities $ 1,078,308 $ 1,986,940 |
SCHEDULE OF OPERATING LEASE EXPENSES | The following provides details of the Company’s lease expenses: SCHEDULE OF OPERATING LEASE EXPENSES 2023 2022 Three Months Ended March 31, 2023 2022 Operating lease expenses $ 210,334 $ 229,242 | The following provides details of the Company’s lease expenses: SCHEDULE OF OPERATING LEASE EXPENSES 2022 2021 Years Ended December 31, 2022 2021 Operating lease expenses $ 837,425 $ 411,607 |
SCHEDULE OF OTHER INFORMATION RELATED LEASES | Other information related to leases is presented below: SCHEDULE OF OTHER INFORMATION RELATED LEASES Three Months Ended March 31, 2023 2022 Cash Paid For Amounts Included In Measurement of Liabilities: Operating cash flows from operating leases $ 186,473 203,673 Weighted Average Remaining Lease Term: Operating leases 1.36 2.11 Weighted Average Discount Rate: Operating leases 4.75 % 4.75 % | Other information related to leases is presented below: SCHEDULE OF OTHER INFORMATION RELATED LEASES Years Ended December 31, 2022 2021 Cash Paid For Amounts Included In Measurement of Liabilities: Operating cash flows from operating leases $ 710,865 $ 473,508 Weighted Average Remaining Lease Term: Operating leases 1.45 2.32 Weighted Average Discount Rate: Operating leases 4.75 % 4.75 % |
SCHEDULE OF MATURITIES OF LEASE LIABILITIES | Maturities of lease liabilities were as follows: SCHEDULE OF MATURITIES OF LEASE LIABILITIES For the year ending December 31: 2023 (excluding the three months ended March 31, 2023) $ 729,243 2024 136,646 2025 62,162 2026 23,986 Total lease payments 952,037 Less: imputed interest (24,075 ) Total lease liabilities 927,962 Less: current portion (748,331 ) Lease liabilities – non-current portion $ 179,631 | Maturities of lease liabilities were as follows: SCHEDULE OF MATURITIES OF LEASE LIABILITIES For the year ending December 31: 2023 $ 899,044 2024 127,361 2025 53,196 2026 22,433 Total lease payments 1,102,034 Less: imputed interest (23,726 ) Total lease liabilities 1,078,308 Less: current portion (883,583 ) Lease liabilities – non-current portion $ 194,725 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Related Party Transactions [Abstract] | ||
SCHEDULE OF RELATED PARTY TRANSACTIONS | Due from related parties consisted of the following as of the periods indicated: SCHEDULE OF RELATED PARTY TRANSACTIONS March 31, 2023 December 31, 2022 Chengdu WenJiang Aixin Nanjiang Pharmacy Co., Ltd. $ 11,584 $ 9,708 Sichuan Aixin Investment Co., Ltd 9,478 145 Chengdu Fuxiang Tang Pharmacy Co., Ltd. 24,925 26,125 Chengdu Wenjiang district Heneng hupu Pharmacy Co., Ltd 30,451 34,622 Chengdu Cigu foshou Pharmacy 258 - Mianyang Aixin Cunshan Pharmacy 383 - Chengdu Lisheng Huiren Tang Pharmacy Co., Ltd. 24,900 12,502 Total $ 101,979 $ 83,102 Advance to related parties $ 101,979 $ 83,102 Due to related parties Due to related parties consisted of the following as of the periods indicated: March 31, 2023 December 31, 2022 Quanzhong Lin $ 316,840 $ 140,644 Yirong Shen 90,279 89,892 Yunnan Shengshengyuan 138,331 - Yun Chen 7,281 - Chengdu Lisheng Huiren Tang Pharmacy Co. Ltd. 695 - Chengdu Aixin International travel service Co, Ltd 5,222 6,346 Total $ 558,648 $ 236,882 Advance to related parties $ 558,648 $ 236,882 | Advance to related parties consisted of the following as of the periods indicated: SCHEDULE OF RELATED PARTY TRANSACTIONS December 31, 2022 December 31, 2021 Chengdu WenJiang Aixin Nanjiang Pharmacy Co., Ltd. $ 9,708 $ 4,583 Sichuan Aixin Investment Co., Ltd. 145 4,237 Chengdu Fuxiang Tang Pharmacy Co., Ltd. 26,125 - Chengdu Wenjiang district Heneng hupu Pharmacy Co., Ltd 34,622 - Chengdu Lisheng Huiren Tang Pharmacy Co., Ltd. 12,502 10,235 Total $ 83,102 $ 19,055 Advance from related parties Advance from related parties consisted of the following as of the periods indicated: December 31, 2022 December 31, 2021 Quanzhong Lin $ 140,644 $ 1,822,705 Yirong Shen 89,892 97,292 Branch manager - 1,667 Chengdu Aixin E-Commerce Company Ltd. - 15,378 Chengdu Aixin International travel service Co, Ltd 6,346 2,388 Aixin Life Beauty - 7,724 Total $ 236,882 $ 1,947,154 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF COMPONENTS OF THE PROVISION FOR INCOME TAXES | The components of the provision for income taxes for the years ended December 31, 2022 and 2021 consisted of the following: SCHEDULE OF COMPONENTS OF THE PROVISION FOR INCOME TAXES 2022 2021 For the Year Ended December 31, 2022 2021 Current: China $ (761 ) $ 292,891 Total current (761 ) 292,891 Deferred: China 1,858 (18,570 ) Total deferred 1,858 (18,570 ) Total income tax expense $ 1,097 $ 274,321 |
SCHEDULE OF DEFERRED TAX ASSETS | Deferred tax assets as of December 31, 2022 and 2021 consisted of the following: SCHEDULE OF DEFERRED TAX ASSETS December 31, 2022 December 31, 2021 Deferred tax assets: Accumulated amortization $ 15,556 $ 18,795 |
SCHEDULE OF EFFECTIVE INCOME TAX RATE | The following table reconciles the statutory rates to the Company’s effective tax rate for years ended December 31, 2022 and 2021: SCHEDULE OF EFFECTIVE INCOME TAX RATE 2022 2021 Statutory U.S. federal income tax rate ( 21.0 )% 21.0 % Foreign tax rate differential (3.8 )% 216.5 % Change in valuation allowances 25.0 % 3,634.4 % Other (0.2 )% - % Effective combined tax rate 0.0 % 3,871.9 % |
ACQUISITION OF SUBSIDIARIES (Ta
ACQUISITION OF SUBSIDIARIES (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | ||
SCHEDULE OF FAIR VALUES OF THE ASSETS ACQUIRED AND LIABILITIES ASSUMED | The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition. Goodwill as a result of the acquisition of Runcangsheng is calculated as follows: SCHEDULE OF FAIR VALUES OF THE ASSETS ACQUIRED AND LIABILITIES ASSUMED Total purchase considerations $ 4,301,293 Estimated fair value of assets acquired: Cash $ 446,381 Accounts receivable 144,813 Accounts receivable-related party 133,011 Advance to suppliers 3,455 Other receivables and prepaid expense 127,909 Inventory 469,594 Property and equipment 1,677,272 Intangible assets 1,406 Operating lease right-of-use assets 1,990 Total assets acquired 3,005,831 Estimated fair value of liabilities assumed: Accounts payable (89,801 ) Accounts payable-related party (160,911 ) Advance from customers (4,790 ) Government grant (921,473 ) Taxes payable (21,156 ) Operating lease liability (15,182 ) Accrued liabilities and other payables (1,314,995 ) Total liabilities assumed (2,528,308 ) Total net assets acquired 477,523 Goodwill as a result of the acquisition $ 3,823,770 | The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition. Goodwill as a result of the acquisition of Runcangsheng is calculated as follows: SCHEDULE OF FAIR VALUES OF THE ASSETS ACQUIRED AND LIABILITIES ASSUMED Total purchase considerations $ 4,301,293 Estimated fair value of assets acquired: Cash $ 446,381 Accounts receivable 144,813 Accounts receivable-related party 133,011 Advance to suppliers 3,455 Other receivables and prepaid expense 127,909 Inventory 469,594 Property and equipment 1,677,272 Intangible assets 1,406 Operating lease right-of-use assets 1,990 Total assets acquired 3,005,831 Estimated fair value of liabilities assumed: Accounts payable (89,801 ) Accounts payable-related party (160,911 ) Advance from customers (4,790 ) Government grant (921,473 ) Taxes payable (21,156 ) Operating lease liability (15,182 ) Accrued liabilities and other payables (1,314,995 ) Total liabilities assumed (2,528,308 ) Total net assets acquired 477,523 Goodwill as a result of the acquisition $ 3,823,770 |
SCHEDULE OF BUSINESS ACQUISITION PRO FORMA | SCHEDULE OF BUSINESS ACQUISITION PRO FORMA For the Three Months Ended March 31, 2022 Revenue $ 501,839 Operating costs and expenses 1,284,944 Loss from operations (783,105 ) Other income 20,601 Income tax expense 492 Net loss $ (762,996 ) | SCHEDULE OF BUSINESS ACQUISITION PRO FORMA For the Year Ended December 31, 2022 Revenue $ 3,168,061 Operating costs and expenses 5,605,508 Loss from operations (2,437,447 ) Other income 34,839 Income tax expense 1,097 Net loss $ (2,403,705 ) For the Year Ended December 31, 2021 Revenue $ 5,025,140 Operating costs and expenses 6,052,664 Loss from operations (1,027,524 ) Other income 100,086 Income tax expense 284,903 Net loss $ (1,212,341 ) |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative) | Feb. 17, 2023 $ / shares shares | Jul. 19, 2022 | Jul. 19, 2022 USD ($) | Jul. 19, 2022 CNY (¥) | Jun. 02, 2021 USD ($) | Jun. 02, 2021 CNY (¥) | May 25, 2021 USD ($) | May 25, 2021 CNY (¥) | Aug. 17, 2020 | Dec. 12, 2017 shares | Feb. 02, 2017 USD ($) shares | Mar. 31, 2023 $ / shares shares | Dec. 31, 2022 $ / shares shares | Dec. 31, 2021 $ / shares shares |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||||||||
Common stock, shares, outstanding | 24,999,842 | 24,999,842 | 24,999,842 | 24,999,842 | ||||||||||
Common stock, par value | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||||||||||
Reverse stock split | 1 for 2 reverse stock split | one (1)-for-four (4) reverse stock | ||||||||||||
Aixin Shangyan Hotel Management [Member] | ||||||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||||||||
Business combination consideration transferred | $ 1,160,000 | ¥ 7,598,887 | ||||||||||||
AiXintang Pharmacises [Member] | ||||||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||||||||
Business combination consideration transferred | $ 5,310,000 | ¥ 34,635,845 | ||||||||||||
Yunnan Shengshengyuan Technology Co Ltd [Member] | ||||||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||||||||
Business combination consideration transferred | $ 4,418,095 | ¥ 31,557,820 | ||||||||||||
Business combination, adjusted | $ | $ 116,802 | |||||||||||||
Yunnan Shengshengyuan Technology Co Ltd [Member] | Transfer Agreement [Member] | ||||||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||||||||
Business acquisition, description of acquired entity | On July 19, 2022, HK Aixin entered into an Equity Transfer Agreement with Yunnan Shengshengyuan Technology Co., Ltd, (“Yunnan Shengshengyuan”) and Yun Chen (together, the “Sellers”), the shareholders of Yunnan Runcangsheng Technology Company Ltd. (“Runcangsheng”). Yunnan Shengshengyuan owns in excess of 95% of the outstanding equity of Runcangsheng. The remaining equity interest is owned by Yun Chen. | On July 19, 2022, HK Aixin entered into an Equity Transfer Agreement with Yunnan Shengshengyuan Technology Co., Ltd, (“Yunnan Shengshengyuan”) and Yun Chen (together, the “Sellers”), the shareholders of Yunnan Runcangsheng Technology Company Ltd. (“Runcangsheng”). Yunnan Shengshengyuan owns in excess of 95% of the outstanding equity of Runcangsheng. The remaining equity interest is owned by Yun Chen | On July 19, 2022, HK Aixin entered into an Equity Transfer Agreement with Yunnan Shengshengyuan Technology Co., Ltd, (“Yunnan Shengshengyuan”) and Yun Chen (together, the “Sellers”), the shareholders of Yunnan Runcangsheng Technology Company Ltd. (“Runcangsheng”). Yunnan Shengshengyuan owns in excess of 95% of the outstanding equity of Runcangsheng. The remaining equity interest is owned by Yun Chen | |||||||||||
Chengdu Aixintang Pharmacy Co Ltd [Member] | Pharmacies Purchase Agreement [Member] | ||||||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||||||||
Business acquisition, description of acquired entity | On June 2, 2021, AiXin HK entered into an Equity Transfer Agreement (the “Pharmacies Purchase Agreement”) with Chengdu Aixintang Pharmacy Co., Ltd. and certain affiliated entities, each of which operates a pharmacy (together, “Aixintang Pharmacies”) and its three shareholders, Quanzhong Lin, Ting Li and Xiao Ling Li (“Transferor”). Mr. Lin owned in excess of 95% of the outstanding equity the Aixintang Pharmacies. The remaining equity interest was owned by Ting Li and Xiao Ling Li | On June 2, 2021, AiXin HK entered into an Equity Transfer Agreement (the “Pharmacies Purchase Agreement”) with Chengdu Aixintang Pharmacy Co., Ltd. and certain affiliated entities, each of which operates a pharmacy (together, “Aixintang Pharmacies”) and its three shareholders, Quanzhong Lin, Ting Li and Xiao Ling Li (“Transferor”). Mr. Lin owned in excess of 95% of the outstanding equity the Aixintang Pharmacies. The remaining equity interest was owned by Ting Li and Xiao Ling Li | ||||||||||||
China Concentric Capital Group [Member] | ||||||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||||||||
Equity method investment, ownership percentage | 71% | 65% | ||||||||||||
Purchase price of common stock | $ | $ 300,000 | |||||||||||||
Equity Transfer Agreement [Member] | Aixin Shangyan Hotel Management [Member] | ||||||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||||||||
Equity method investment, ownership percentage | 100% | 100% | ||||||||||||
Quanzhong Lin [Member] | ||||||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||||||||
Common stock, shares, outstanding | 3,690,176 | |||||||||||||
Stock issued during period, shares, new issues | 28,419,075 |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Impairment Effects on Earnings Per Share [Line Items] | |||||
Beginning balance | $ 272,550 | $ 213,787 | $ 213,787 | $ 148,520 | |
Additions | [1] | 196,164 | 124,242 | ||
Provisions for bad debt | (43,816) | 27,422 | 45,953 | ||
Recoveries/Write offs | (165,227) | (63,076) | |||
Effect of translation | (18,127) | 4,101 | |||
Ending balance | 230,076 | 272,550 | 213,787 | ||
Provisions for bad debt | (43,816) | 27,422 | |||
Accounts Receivable [Member] | |||||
Impairment Effects on Earnings Per Share [Line Items] | |||||
Beginning balance | 272,550 | 213,787 | 213,787 | ||
Recoveries/Write offs | (43,816) | ||||
Effect of translation | 1,342 | 1,181 | |||
Ending balance | 230,076 | 242,390 | $ 272,550 | $ 213,787 | |
Provisions for bad debt | $ 27,422 | ||||
[1]Due to the acquisition of subsidiaries during the years ended December 31, 2022 and 2021 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED LIVES (Details) | Mar. 31, 2023 | Dec. 31, 2022 |
Office Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment useful life | 5 years | 5 years |
Electronic Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment useful life | 2 years | 2 years |
Electronic Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment useful life | 3 years | 3 years |
Machinery [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment useful life | 3 years | 3 years |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment useful life | 3 years | 3 years |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment useful life | 5 years | 5 years |
SCHEDULE OF CONCENTRATION OF RI
SCHEDULE OF CONCENTRATION OF RISK BY RISK FACTORS (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Product Information [Line Items] | |||||
Total revenue | $ 754,713 | $ 418,678 | $ 2,708,560 | $ 3,066,233 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer A [Member] | |||||
Product Information [Line Items] | |||||
Total revenue | [1] | $ 1,286,792 | |||
Concentration Risk, Percentage | [1] | 42% | |||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer B [Member] | |||||
Product Information [Line Items] | |||||
Total revenue | $ 658,018 | ||||
Concentration Risk, Percentage | 21% | ||||
Cost of Sales [Member] | Supplier Concentration Risk [Member] | Supplier C [Member] | |||||
Product Information [Line Items] | |||||
Concentration Risk, Percentage | [2] | 14% | |||
Total purchases | [2] | $ 189,150 | |||
Cost of Sales [Member] | Supplier Concentration Risk [Member] | Supplier D [Member] | |||||
Product Information [Line Items] | |||||
Concentration Risk, Percentage | [2] | 11% | |||
Total purchases | [2] | $ 149,806 | |||
Cost of Sales [Member] | Supplier Concentration Risk [Member] | Supplier E [Member] | |||||
Product Information [Line Items] | |||||
Concentration Risk, Percentage | [2] | 40% | |||
Total purchases | [2] | $ 233,187 | |||
[1]Represented advertising revenues from this customer during the year ended December 31, 2021. The Company also purchased inventory from this customer in year ended December 31, 2021.[2]The Company purchased inventory from this supplier, Runcansheng, in the year ended December 31, 2022. The Company acquired all of the outstanding equity of Runcangsheng on September 30, 2022 (see Note 17). |
SCHEDULE OF INFORMATION SEGMENT
SCHEDULE OF INFORMATION SEGMENTS (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Product Information [Line Items] | ||||
Total revenues, net | $ 754,713 | $ 418,678 | $ 2,708,560 | $ 3,066,233 |
Operating expense | 1,306,683 | 1,190,832 | 5,278,019 | 3,093,171 |
Hotel operating costs | 477,794 | 511,619 | 1,739,948 | 744,594 |
Total operating costs and expenses | 1,306,683 | 1,190,832 | 5,278,019 | 3,093,171 |
(Loss) income from operations | (551,970) | (772,154) | (2,569,459) | (26,938) |
Manufacture and sale | 4,819,230 | 5,050,884 | 11,660,346 | |
Total assets | 4,819,230 | 5,050,884 | 11,660,346 | |
Advertising and Product [Member] | ||||
Product Information [Line Items] | ||||
Total revenues, net | 823,930 | 2,406,988 | ||
Cost of goods sold | 171,345 | 316,750 | ||
Operating expense | 1,526,246 | 1,344,543 | ||
(Loss) income from operations | (873,661) | 745,695 | ||
Manufacture and sale | 410,754 | 8,914,211 | ||
Total assets | 410,754 | 8,914,211 | ||
Pharmacies [Member] | ||||
Product Information [Line Items] | ||||
Total revenues, net | 223,516 | 158,894 | 789,347 | 280,447 |
Cost of goods sold | 138,633 | 119,841 | 578,092 | 218,735 |
Operating expense | 188,996 | 169,309 | 622,835 | 252,513 |
(Loss) income from operations | (104,113) | (130,256) | (411,580) | (190,801) |
Manufacture and sale | 672,533 | 758,675 | 931,706 | |
Total assets | 672,533 | 758,675 | 931,706 | |
Hotel [Member] | ||||
Product Information [Line Items] | ||||
Total revenues, net | 332,417 | 243,686 | 856,884 | 378,798 |
Operating expense | (8,885) | 87,338 | 310,902 | 216,036 |
Hotel operating costs | 477,794 | 511,619 | 1,739,948 | 744,594 |
(Loss) income from operations | (136,492) | (355,271) | (1,193,966) | (581,832) |
Manufacture and sale | 821,202 | 970,385 | 1,814,429 | |
Total assets | 821,202 | 970,385 | 1,814,429 | |
Manufactue And Sale [Member] | ||||
Product Information [Line Items] | ||||
Total revenues, net | 35,520 | 238,399 | ||
Manufacture and Sale [Member] | ||||
Product Information [Line Items] | ||||
Cost of goods sold | 2,121 | 353,723 | ||
Operating expense | 105,501 | (25,072) | ||
(Loss) income from operations | (72,102) | (90,252) | ||
Manufacture and sale | 2,888,653 | 2,911,070 | ||
Total assets | $ 2,888,653 | $ 2,911,070 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Mar. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2020 USD ($) | |
Product Information [Line Items] | |||||||
Net income loss | $ 551,970 | $ 772,154 | $ 2,569,459 | $ 26,938 | |||
Net cash provided by used in operating activities | 472,681 | 503,520 | 1,624,565 | 57,804 | |||
Accumulated deficit | 15,659,482 | 15,249,858 | 8,880,613 | ||||
Cash and cash equivalents | 496,918 | 510,128 | 8,556,642 | ||||
Accounts receivable, allowance for credit loss | 230,076 | 272,550 | 213,787 | $ 148,520 | |||
Inventory valuation reserves | $ 92,579 | $ 73,821 | 0 | ||||
Property, plant and equipment, salvage value, percentage | 5% | 5% | 5% | 5% | |||
Impairment loss | $ 3,823,770 | ||||||
Advertisement revenue | $ 0 | 1,944,811 | |||||
Vat of gross sales price percentage | 6% | ||||||
Cash FDIC insured amount | $ 72,500 | $ 72,500 | ¥ 500,000 | ¥ 500,000 | |||
Provision for inventory reserve | $ 18,502 | 54,899 | |||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | No Customer [Member] | |||||||
Product Information [Line Items] | |||||||
Concentration risk, percentage | 10% | 10% | |||||
Cost of Sales [Member] | Supplier Concentration Risk [Member] | Supplier One [Member] | |||||||
Product Information [Line Items] | |||||||
Concentration risk, percentage | 17% | ||||||
Cost of Sales [Member] | Supplier Concentration Risk [Member] | Supplier Two [Member] | |||||||
Product Information [Line Items] | |||||||
Concentration risk, percentage | 15% | ||||||
Cost of Sales [Member] | Supplier Concentration Risk [Member] | No Supplier [Member] | |||||||
Product Information [Line Items] | |||||||
Concentration risk, percentage | 10% | ||||||
Hotel [Member] | |||||||
Product Information [Line Items] | |||||||
Net income loss | $ 136,492 | $ 355,271 | $ 1,193,966 | 581,832 | |||
Vat of gross sales price percentage | 6% | 6% | |||||
Health Care [Member] | |||||||
Product Information [Line Items] | |||||||
Vat of gross sales price percentage | 0% | 0% | |||||
Manufacture and Sale [Member] | |||||||
Product Information [Line Items] | |||||||
Net income loss | $ 72,102 | $ 90,252 | |||||
Vat of gross sales price percentage | 13% | 13% | |||||
Prior to May 1, 2018 [Member] | |||||||
Product Information [Line Items] | |||||||
Vat of gross sales price percentage | 13% | 13% |
SCHEDULE OF OTHER RECEIVABLES A
SCHEDULE OF OTHER RECEIVABLES AND PREPAID EXPENSES (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Other Receivables And Prepaid Expenses | |||
Deposits | $ 13,001 | $ 15,546 | $ 68,433 |
Prepaid expenses | 38,796 | 9,490 | 50,221 |
Employees’ social insurance | 10,268 | 10,124 | 13,839 |
Others | 11,588 | 7,471 | 10,788 |
Total | $ 73,653 | $ 42,631 | $ 143,281 |
ADVANCES TO SUPPLIERS (Details
ADVANCES TO SUPPLIERS (Details Narrative) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Advances To Suppliers | |||
Prepaid supplies | $ 153,542 | $ 168,523 | $ 162,969 |
SCHEDULE OF INVENTORIES (Detail
SCHEDULE OF INVENTORIES (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | |||
Raw material | $ 127,896 | $ 62,462 | |
Work in process | 2,895 | 15,315 | |
Finished goods-health supplements | 100,772 | 521 | 6,201 |
Drugs, pharmaceutical and nutritional products | 469,757 | 412,129 | 122,966 |
Food and beverage, hotel supplies and consumables | 74,294 | 82,646 | 104,287 |
Total | 775,614 | 573,073 | 233,454 |
Less: reserve for inventory | 73,821 | ||
Total inventories, net | 683,035 | 499,252 | 233,454 |
Less: reserve for inventory | $ 92,579 | $ 73,821 | $ 0 |
SCHEDULE OF PROPERTY AND EQUI_2
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | |||
Total | $ 2,942,707 | $ 2,928,342 | $ 751,071 |
Less: Accumulated depreciation | (1,064,695) | (956,549) | (460,923) |
Property and equipment, net | 1,878,012 | 1,971,793 | 290,148 |
Vehicle [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 426,836 | 295,502 | |
Office Furniture [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 82,905 | 82,549 | 64,263 |
Electronic Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 21,550 | 20,607 | 22,304 |
Machinery [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 1,247,377 | 1,241,778 | 106,080 |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 1,143,996 | 1,139,087 | 256,548 |
Property, Plant and Equipment, Other Types [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 18,203 | 17,485 | $ 6,374 |
Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | $ 428,676 | $ 426,836 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 183,542 | $ 95,026 | ||
Depreciation expense | $ 104,400 | $ 28,978 |
SCHEDULE OF INTANGIBLE ASSET (D
SCHEDULE OF INTANGIBLE ASSET (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Software | $ 8,601 | $ 8,564 | $ 7,896 |
Less: Accumulated amortization | (7,509) | (7,295) | (5,956) |
Intangible asset, net | $ 1,092 | $ 1,269 | $ 1,940 |
INTANGIBLE ASSET, NET (Details
INTANGIBLE ASSET, NET (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 161 | $ 661 | $ 2,023 | $ 1,080 |
SCHEDULE OF TAX PAYABLE (Detail
SCHEDULE OF TAX PAYABLE (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Statement [Line Items] | |||
Taxes payable | $ 44,583 | $ 104,100 | $ 232,637 |
Value-added [Member] | |||
Statement [Line Items] | |||
Taxes payable | 2,102 | 56,806 | 97,917 |
Income [Member] | |||
Statement [Line Items] | |||
Taxes payable | 31,052 | 30,919 | 109,396 |
City Construction [Member] | |||
Statement [Line Items] | |||
Taxes payable | 472 | 3,746 | 7,018 |
Education [Member] | |||
Statement [Line Items] | |||
Taxes payable | 380 | 2,184 | 5,064 |
Other [Member] | |||
Statement [Line Items] | |||
Taxes payable | $ 10,577 | $ 10,445 | $ 13,242 |
SCHEDULE OF ACCRUED LIABILITIES
SCHEDULE OF ACCRUED LIABILITIES AND OTHER PAYABLES (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | |||
Accrued employees’ social insurance | $ 266,690 | $ 270,349 | $ 327,735 |
Accrued payroll and commission | 309,903 | 307,331 | 179,183 |
Accrued rent expense | 30,107 | 32,746 | 29,000 |
Construction payable | 1,363,366 | 1,384,674 | 111,807 |
Payable for equipment purchase | 26,833 | 32,278 | |
Accrued professional fees | 160,648 | 233,894 | 50,840 |
Deposit | 11,357 | 11,308 | 12,239 |
Other payables | 63,363 | 83,910 | 41,596 |
Total | $ 2,232,267 | $ 2,356,490 | $ 752,400 |
LOAN FROM THIRD PARTIES (Detail
LOAN FROM THIRD PARTIES (Details Narrative) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Related Party Transaction [Line Items] | |||
Loan from third parties | $ 87,367 | $ 86,992 | $ 94,153 |
Related Party [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | $ 86,992 | $ 94,153 |
SCHEDULE OF OPERATING LEASE LIA
SCHEDULE OF OPERATING LEASE LIABILITIES (Details) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Mar. 31, 2019 USD ($) | Mar. 31, 2019 CNY (¥) |
Lease | |||||
Operating lease right-of-use assets | $ 811,021 | $ 999,285 | $ 2,049,775 | $ 207,049 | ¥ 1,389,731 |
Operating lease liabilities – current | 748,331 | 883,583 | 848,230 | ||
Operating lease liability – non-current | 179,631 | 194,725 | 1,138,710 | ||
Total operating lease liabilities | $ 927,962 | $ 1,078,308 | $ 1,986,940 |
SCHEDULE OF OPERATING LEASE EXP
SCHEDULE OF OPERATING LEASE EXPENSES (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lease | ||||
Operating lease expenses | $ 210,334 | $ 229,242 | $ 837,425 | $ 411,607 |
SCHEDULE OF OTHER INFORMATION R
SCHEDULE OF OTHER INFORMATION RELATED LEASES (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2019 | |
Lease | |||||
Operating cash flows from operating leases | $ 186,473 | $ 203,673 | $ 710,865 | $ 473,508 | |
Weighted average operating lease term | 1 year 4 months 9 days | 2 years 1 month 9 days | 1 year 5 months 12 days | 2 years 3 months 25 days | |
Weighted average operating lease discount rate | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% |
SCHEDULE OF MATURITIES OF LEASE
SCHEDULE OF MATURITIES OF LEASE LIABILITIES (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Lease | |||
2024 | $ 136,646 | $ 899,044 | |
2025 | 62,162 | 127,361 | |
2026 | 23,986 | 53,196 | |
2026 | 22,433 | ||
Total lease payments | 952,037 | 1,102,034 | |
Less: imputed interest | (24,075) | (23,726) | |
Total lease liabilities | 927,962 | 1,078,308 | $ 1,986,940 |
Less: current portion | (748,331) | (883,583) | (848,230) |
Lease liabilities – non-current portion | 179,631 | $ 194,725 | $ 1,138,710 |
2023 (excluding the three months ended March 31, 2023) | $ 729,243 |
LEASE (Details Narrative)
LEASE (Details Narrative) | 1 Months Ended | 12 Months Ended | |||||
May 31, 2014 | Dec. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 | Dec. 31, 2021 USD ($) | Mar. 31, 2019 USD ($) | Mar. 31, 2019 CNY (¥) | |
Statement [Line Items] | |||||||
Lease term of contract | 2 years | ||||||
Operating lease right-of-use asset | $ 999,285 | $ 811,021 | $ 2,049,775 | $ 207,049 | ¥ 1,389,731 | ||
Operating lease discount percentage | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% | |
Lease expiration date | May 28, 2023 | Mar. 31, 2021 | |||||
Aixin Shangyan Hotel Management [Member] | |||||||
Statement [Line Items] | |||||||
Lease term | 1 year | 9 months | |||||
Runcansheng [Member] | |||||||
Statement [Line Items] | |||||||
Lease term | 2 years 11 months 1 day | ||||||
Minimum [Member] | |||||||
Statement [Line Items] | |||||||
Lease term | 4 months 28 days | 1 month 28 days | |||||
Minimum [Member] | AiXintang Pharmacises [Member] | |||||||
Statement [Line Items] | |||||||
Lease term | 4 months 13 days | 4 months 13 days | |||||
Maximum [Member] | |||||||
Statement [Line Items] | |||||||
Lease term | 3 years 5 months 8 days | 3 years 2 months 8 days | |||||
Maximum [Member] | AiXintang Pharmacises [Member] | |||||||
Statement [Line Items] | |||||||
Lease term | 3 years 8 months 1 day | 3 years 5 months 1 day |
SCHEDULE OF RELATED PARTY TRANS
SCHEDULE OF RELATED PARTY TRANSACTIONS (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Related Party Transaction [Line Items] | |||
Advance to related parties | $ 101,979 | $ 83,102 | $ 19,055 |
Other Receivable, after Allowance for Credit Loss, Current, Related and Nonrelated Party Status [Extensible Enumeration] | Advance to related parties | Advance to related parties | |
Chengdu Aixin International travel service Co, Ltd | 558,648 | $ 236,882 | $ 1,947,154 |
Advance to related parties | $ 558,648 | $ 236,882 | $ 1,947,154 |
Other Liability, Current, Related and Nonrelated Party Status [Extensible Enumeration] | Related Party [Member] | Related Party [Member] | Related Party [Member] |
Chengdu WenJiang Aixin Nanjiang Pharmacy Co., Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Advance to related parties | $ 11,584 | $ 9,708 | $ 4,583 |
Sichuan Aixin Investment Co., Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Advance to related parties | 9,478 | 145 | 4,237 |
Chengdu Fuxiang Tang Pharmacy Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Advance to related parties | 24,925 | 26,125 | |
Chengdu Wenjiang District Heneng Hupu Pharmacy Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Advance to related parties | 30,451 | 34,622 | |
Chengdu Lisheng Huiren Tang Pharmacy Co., Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Advance to related parties | 24,900 | 12,502 | 10,235 |
Quanzhong Lin [Member] | |||
Related Party Transaction [Line Items] | |||
Chengdu Aixin International travel service Co, Ltd | 316,840 | 140,644 | 1,822,705 |
Yirong Shen [Member] | |||
Related Party Transaction [Line Items] | |||
Chengdu Aixin International travel service Co, Ltd | 90,279 | 89,892 | 97,292 |
Branch Manager [Member] | |||
Related Party Transaction [Line Items] | |||
Chengdu Aixin International travel service Co, Ltd | 1,667 | ||
Chengdu Aixin E-Commerce Company Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Chengdu Aixin International travel service Co, Ltd | 15,378 | ||
Chengdu Aixin International travel service Co, Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Chengdu Aixin International travel service Co, Ltd | 5,222 | 6,346 | 2,388 |
Aixin Life Beauty [Member] | |||
Related Party Transaction [Line Items] | |||
Chengdu Aixin International travel service Co, Ltd | $ 7,724 | ||
Chengdu Cigu Foshou Pharmacy [Member] | |||
Related Party Transaction [Line Items] | |||
Advance to related parties | 258 | ||
Mianyang Aixin Cunshan Pharmacy [Member] | |||
Related Party Transaction [Line Items] | |||
Advance to related parties | 383 | ||
Yunnan Shengshengyuan [Member] | |||
Related Party Transaction [Line Items] | |||
Chengdu Aixin International travel service Co, Ltd | 138,331 | ||
Yun Chen [Member] | |||
Related Party Transaction [Line Items] | |||
Chengdu Aixin International travel service Co, Ltd | 7,281 | ||
Chengdu Lisheng Huiren Tang Pharmacy Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Chengdu Aixin International travel service Co, Ltd | $ 695 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) | 1 Months Ended | 12 Months Ended | ||||
May 31, 2014 USD ($) | May 31, 2014 CNY (¥) | Dec. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2021 USD ($) | May 31, 2014 CNY (¥) | |
Related Party Transaction [Line Items] | ||||||
Accounts payable-related party | $ 398,469 | $ 440,237 | $ 406,163 | |||
Rent prepayment | $ 725 | ¥ 5,000 | ||||
Lease expiration date | May 28, 2023 | May 28, 2023 | Mar. 31, 2021 | |||
Future annual minimum lease payment | $ 3,625 | |||||
Payment for rent | $ 789 | ¥ 5,000 | ||||
Renewed [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Rent prepayment | 725 | ¥ 5,000 | ||||
Payment for rent | $ 789 | ¥ 5,000 | ||||
Related Party [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Accounts payable-related party | $ 165,958 |
SCHEDULE OF COMPONENTS OF THE P
SCHEDULE OF COMPONENTS OF THE PROVISION FOR INCOME TAXES (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | ||||
China | $ (761) | $ 292,891 | ||
Total current | (761) | 292,891 | ||
Deferred: | ||||
China | 1,858 | (18,570) | ||
Total deferred | $ 457 | $ 492 | 1,858 | (18,570) |
Total income tax expense | $ 457 | $ 492 | $ 1,097 | $ 274,321 |
SCHEDULE OF DEFERRED TAX ASSETS
SCHEDULE OF DEFERRED TAX ASSETS (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Accumulated amortization | $ 15,556 | $ 18,795 |
SCHEDULE OF EFFECTIVE INCOME TA
SCHEDULE OF EFFECTIVE INCOME TAX RATE (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Statutory U.S. federal income tax rate | 21% | 21% |
Foreign tax rate differential | (3.80%) | 216.50% |
Change in valuation allowances | 25% | 3,634.40% |
Other | (0.20%) | |
Effective combined tax rate | 0% | 3,871.90% |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Loss Carryforwards [Line Items] | |||
Effective income tax rate | 0% | 3,871.90% | |
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 |
Foreign Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Effective income tax rate | 25% | 25% | |
Foreign Tax Authority [Member] | Aixin Shangyan Hotel and Aixintang Pharmacies [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carry-forward | $ 4,139,357 |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) $ / shares in Units, ¥ in Millions | 3 Months Ended | 12 Months Ended | |||||||
Feb. 17, 2023 $ / shares shares | Aug. 17, 2020 | Oct. 24, 2019 USD ($) $ / shares shares | Oct. 22, 2019 USD ($) $ / shares shares | Mar. 31, 2023 USD ($) $ / shares shares | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Stock split | 1 for 2 reverse stock split | one (1)-for-four (4) reverse stock | |||||||
Preferred Stock, Shares Authorized | 20,000,000 | 20,000,000 | 20,000,000 | ||||||
Preferred stock,par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 | ||||||
Common Stock, par value | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | $ 0.00001 | |||||
Reverse stock split | 24,999,842 | 24,999,842 | |||||||
Common stock shares issued | 24,999,842 | 24,999,842 | 24,999,842 | ||||||
Common stock shares outstanding | 24,999,842 | 24,999,842 | 24,999,842 | 24,999,842 | |||||
Stock based compensation | $ | $ 92,885 | $ 92,885 | $ 371,540 | $ 371,540 | |||||
Unrecognized compensation expenses | $ | $ 579,782 | $ 672,667 | |||||||
Employee services expected to be recognized | 2 years | 2 years | |||||||
Common Stock [Member] | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Common stock shares issued | 24,999,842 | 24,999,842 | |||||||
Common stock shares outstanding | 24,999,842 | 24,999,842 | |||||||
Aixin Shangyan Hotel and Aixintang Pharmacies [Member] | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Business combination consideration transferred | 4,500,000 | ¥ 29 | |||||||
Decrease in additional paid-in capital | $ | 4,313,025 | ||||||||
Quanzhong Lin [Member] | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Forgiveness of shareholder's loan | $ | $ 6,912,513 | ||||||||
Employees and Contractors [Member] | 2019 Equity Incentive Plan [Member] | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Issuance of shares | 275,000 | 18,750 | |||||||
Issuance of value | $ | $ 1,520,200 | $ 337,500 | |||||||
Price per share | $ / shares | $ 5.528 | $ 18 | |||||||
Vesting period | 5 years | 5 years | |||||||
Share based payment award description | the grantee will forfeit 80% of Shares Granted if no longer employed by or contracted with the Company on the date that is one year from the grant date, forfeit 60% of Shares Granted if no longer employed by or contracted with the Company on the date that is two years from the grant date, forfeit 40% of Shares Granted if no longer employed by or contracted with the Company on the date that is three years from the grant date, and forfeit 20% of Shares Granted if no longer employed by or contracted with the Company on the date that is four years from the grant date. Effective on the 5th year from the grant date, none of the shares will be subject to forfeiture | the grantee will forfeit 80% of Shares Granted if no longer employed by or contracted with the Company on the date that is one year from the grant date, forfeit 60% of Shares Granted if no longer employed by or contracted with the Company on the date that is two years from the grant date, forfeit 40% of Shares Granted if no longer employed by or contracted with the Company on the date that is three years from the grant date, and forfeit 20% of Shares Granted if no longer employed by or contracted with the Company on the date that is four years from the grant date. Effective on the 5th year from the grant date, none of the shares will be subject to forfeiture |
STATUTORY RESERVES (Details Nar
STATUTORY RESERVES (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement [Line Items] | ||||
Net income transfer, rate | 10% | 10% | ||
Capital reserve, rate | 50% | 50% | ||
Statutory reserve fund | $ 0 | $ 0 | $ 0 | $ 0 |
Minimum [Member] | ||||
Statement [Line Items] | ||||
Net income transfer, rate | 5% | 5% | ||
Capital reserve, rate | 25% | 25% | ||
Maximum [Member] | ||||
Statement [Line Items] | ||||
Net income transfer, rate | 10% | 10% |
OPERATING CONTINGENCIES (Detail
OPERATING CONTINGENCIES (Details Narrative) - 1 months ended Dec. 31, 2020 | USD ($) | CNY (¥) |
Guarantor Obligations [Line Items] | ||
Litigation settlement expense | $ 392,305 | ¥ 2,500,000 |
Indemnification Agreement [Member] | ||
Guarantor Obligations [Line Items] | ||
Purchase commitment amount | $ 392,305 | ¥ 2,500,000 |
SCHEDULE OF FAIR VALUES OF THE
SCHEDULE OF FAIR VALUES OF THE ASSETS ACQUIRED AND LIABILITIES ASSUMED (Details) - USD ($) | Jul. 19, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Estimated fair value of liabilities assumed: | ||||
Goodwill as a result of the acquisition | ||||
Goodwill as a result of the acquisition | ||||
Yunnan Runcangsheng [Member] | ||||
Business Acquisition [Line Items] | ||||
Total purchase considerations | $ 4,301,293 | |||
Estimated fair value of assets acquired: | ||||
Cash | 446,381 | |||
Accounts receivable | 144,813 | |||
Accounts receivable-related party | 133,011 | |||
Advance to suppliers | 3,455 | |||
Other receivables and prepaid expense | 127,909 | |||
Inventory | 469,594 | |||
Property and equipment | 1,677,272 | |||
Intangible assets | 1,406 | |||
Operating lease right-of-use assets | 1,990 | |||
Total assets acquired | 3,005,831 | |||
Estimated fair value of liabilities assumed: | ||||
Accounts payable | (89,801) | |||
Accounts payable-related party | (160,911) | |||
Advance from customers | (4,790) | |||
Government grant | (921,473) | |||
Taxes payable | (21,156) | |||
Operating lease liability | (15,182) | |||
Accrued liabilities and other payables | (1,314,995) | |||
Total liabilities assumed | (2,528,308) | |||
Total net assets acquired | 477,523 | |||
Goodwill as a result of the acquisition | 3,823,770 | |||
Total net assets acquired | 477,523 | |||
Goodwill as a result of the acquisition | $ 3,823,770 |
SCHEDULE OF BUSINESS ACQUISITIO
SCHEDULE OF BUSINESS ACQUISITION PRO FORMA (Details) - Runcangsheng Aixin Shangyan Hotel and Aixintang Pharmacies [Member] - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement [Line Items] | |||
Revenue | $ 501,839 | $ 3,168,061 | $ 5,025,140 |
Operating costs and expenses | 1,284,944 | 5,605,508 | 6,052,664 |
Loss from operations | (783,105) | (2,437,447) | (1,027,524) |
Other income | 20,601 | 34,839 | 100,086 |
Income tax expense | 492 | 1,097 | 284,903 |
Net loss | $ (762,996) | $ (2,403,705) | $ (1,212,341) |
ACQUISITION OF SUBSIDIARIES (De
ACQUISITION OF SUBSIDIARIES (Details Narrative) | 12 Months Ended | ||||||||||
Jul. 19, 2022 USD ($) | Jun. 02, 2021 USD ($) | Jun. 02, 2021 CNY (¥) | May 25, 2021 USD ($) | May 25, 2021 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 USD ($) | Dec. 31, 2020 CNY (¥) | |
Yunnan Shengshengyuan [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Equity interest percentage | 95% | ||||||||||
Yunnan Runcangsheng [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Equity interest percentage | 5% | ||||||||||
Aixin Shangyan Hotel Management [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Purchase price | $ 1,160,000 | ¥ 7,598,887 | |||||||||
Business combination consideration transferred | $ 1,160,000 | ¥ 7,598,887 | |||||||||
AiXintang Pharmacises [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Purchase price | $ 5,310,000 | ¥ 34,635,845 | |||||||||
Business acquisition, percentage of voting interests acquired | 100% | 100% | |||||||||
Business combination consideration transferred | $ 5,310,000 | ¥ 34,635,845 | |||||||||
Yunnan Runcangsheng [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business combination consideration transferred | $ 4,301,293 | ||||||||||
Yunnan Runcangsheng [Member] | Transfer Agreement [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business combination consideration transferred | $ 4,418,095 | ¥ 31,557,820 | |||||||||
Business combination, adjusted | $ 116,802 |
SCHEDULE OF SEGMENTS INFORMATIO
SCHEDULE OF SEGMENTS INFORMATION (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement [Line Items] | ||||
Total revenues, net | $ 754,713 | $ 418,678 | $ 2,708,560 | $ 3,066,233 |
Operating expenses | 1,306,683 | 1,190,832 | 5,278,019 | 3,093,171 |
Hotel operating costs | 477,794 | 511,619 | 1,739,948 | 744,594 |
Total operating costs and expenses | 1,306,683 | 1,190,832 | 5,278,019 | 3,093,171 |
Loss from operations | (551,970) | (772,154) | (2,569,459) | (26,938) |
Total assets | 4,819,230 | 5,050,884 | 11,660,346 | |
Product S [Member] | ||||
Statement [Line Items] | ||||
Total revenues, net | 163,260 | 16,098 | ||
Cost of goods sold | 34,734 | 4,683 | ||
Operating expenses | 367,789 | 298,042 | ||
Loss from operations | (239,263) | (286,627) | ||
Total assets | 436,842 | 410,754 | ||
Pharmacies [Member] | ||||
Statement [Line Items] | ||||
Total revenues, net | 223,516 | 158,894 | 789,347 | 280,447 |
Cost of goods sold | 138,633 | 119,841 | 578,092 | 218,735 |
Operating expenses | 188,996 | 169,309 | 622,835 | 252,513 |
Loss from operations | (104,113) | (130,256) | (411,580) | (190,801) |
Total assets | 672,533 | 758,675 | 931,706 | |
Hotel [Member] | ||||
Statement [Line Items] | ||||
Total revenues, net | 332,417 | 243,686 | 856,884 | 378,798 |
Operating expenses | (8,885) | 87,338 | 310,902 | 216,036 |
Hotel operating costs | 477,794 | 511,619 | 1,739,948 | 744,594 |
Loss from operations | (136,492) | (355,271) | (1,193,966) | (581,832) |
Total assets | 821,202 | 970,385 | 1,814,429 | |
Manufactue And Sale [Member] | ||||
Statement [Line Items] | ||||
Total revenues, net | 35,520 | 238,399 | ||
Manufacture and Sale [Member] | ||||
Statement [Line Items] | ||||
Cost of goods sold | 2,121 | 353,723 | ||
Operating expenses | 105,501 | (25,072) | ||
Loss from operations | (72,102) | (90,252) | ||
Total assets | $ 2,888,653 | $ 2,911,070 |