Historically, our primary operations involved the design, manufacture and distribution of a line of proprietary high and low temperature dyeing and finishing machinery to the textile industry, which was terminated in December, 2019.

In December 2019, we acquired the ECrent global businesses.

Going forward, we will continue targeting the technology and global sharing economy markets, by developing online platforms and rental business partnerships that will drive the global development of sharing through economical rental business models.

Critical Accounting Policies and Estimates

Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using straight-line method over the estimated useful lives of the assets. The estimated useful lives of the assets are as follows:

Our functional currency is the U.S. dollar, and the functional currency of our operating subsidiaries is the RMB and Hong Kong Dollar.

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.

Three months ended June 30, 2022 and 2021

The following table sets forth the results of our operations for the three months ended June 30, 2022 and 2021:

No cost incurred during the three months ended June 30, 2022 and June 30, 2021, respectively.

Gross profit and gross margin.

Income tax expense was $0 for the three months ended June 30, 2022 and 2021.

The following table sets forth the results of our operations for the six months ended June 30, 2022 and 2021:

During the six months ended June 30, 2022, we recognized revenues from our sharing economy business of $181,471 compared to $130,285 for the six months ended June 30, 2021, an increase of $51,186, or 39%.

No cost incurred during the six months ended June 30, 2022 and 2021.

Gross profit and gross margin.

Income tax expense was $0 for the six months ended June 30, 2022 and 2021.

Six Months Ended June 30, 2022 Compared to Six Months Ended June 30, 2021

As of June 30, 2022 and December 31, 2021, we had cash and cash equivalents of approximately $506,565 and $66,273, respectively.

The following table sets forth a summary of changes in our working capital from December 31, 2021 to June 30, 2022:

Working Capital. Total working capital deficit as of June 30, 2022 amounted to approximately $8.6 million, as compared to approximately $8.1 million as of December 31, 2021. The decrease in working capital deficit was due to the settlement of debt upon stock conversion.

Contractual Obligations and Off-Balance Sheet Arrangements

(1) Convertible note is currently in default with the outstanding balance of

$1,553,847 in principal and $868,607 accrued interest on June 30, 2022. At

the date of filing, both parties have not reached into the mutual agreement.

The effect of inflation on our revenue and operating results was not significant.

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