Annual report pursuant to Section 13 and 15(d)

Variable Interest Entities (Tables)

v3.22.1
Variable Interest Entities (Tables)
12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Variable Interest Entities

The following table presents the carrying values of the assets and liabilities of entities that are VIEs and consolidated by the Company at December 31, 2021 and 2020:

Schedule of Variable Interest Entities 

    2021     2020  
             
Assets                
Current assets:                
Cash and cash equivalents   $ 1,856,017     $ 10,481  
Accounts receivable, net     -       94,195  
Inventory     -       240,158  
Prepaid expenses and other current assets     2,388,893       -  
Due from related party     15,997,803       -  
Total current assets     20,242,713       344,834  
Property and equipment, net     147,519       -  
Loans held-for investment     3,100,000       -  
Loans held-for-investment – related parties     11,500,000       -  
Intangible assets, net     28,150,048       -  
Goodwill     116,188,021       -  
Cost method investment     1,000,000       -  
Total assets   $ 180,328,301     $ 344,834  
                 
Liabilities                
Current liabilities:                
Accounts payable   $ 686,674     $ 217,558  
Accrued expenses and other current liabilities     1,672,492       113,576  
Line of credit     -       1,133,652  
Notes payable, current     2,650,000       150,000  
Due to related party     315,666       315,666  
Total liabilities     5,324,832       1,930,452  

 

The following table presents the operations of entities that are VIEs and consolidated by the Company for the years ending December 31, 2021 and 2020:

 

    2021     2020  
Revenues, net   $ 307,339     $ 1,571,017  
Cost of revenues     93,685       2,092,167  
Gross profit     213,654       (521,150 )
                 
Operating expenses:                
Selling, general and administrative     14,494,091       413,217  
Operating income     (14,280,437 )     (934,367 )
                 
Other (expense) income:                
Other income, net     364,046       (174,396 )
Total other (expense) income     (13,916,391 )     (174,396 )
Loss before income taxes     (13,916,391 )     (47,578 )
Income tax expense     -       -  
Net (loss) income   $ (13,916,391 )   $ (1,108,763 )