Biddance AI Systems, Inc.

Biddance AI Systems, Inc. is an information technology consulting and solutions service provider delivering services to businesses in various industry sectors in China. As of the date of its annual report, the company operates two lines of business. The first is services to small and medium businesses (SMEs), consisting of Anti-Counterfeiting Tax Control System (ACTCS) tax devices, including Golden Tax Disk (GTD) and printers, ACTCS services, and IT services. The second is services to large businesses, consisting of hardware sales and software sales. The company expects to actively develop its system integration services and online service platform in the near future, and its vision is to become a one-stop consulting destination for holistic IT and other business consulting services in China. Value added tax (VAT) reporting is mandatory for all business companies in China. The ACTCS is one of the two major VAT control systems a business entity may choose to comply with VAT reporting requirements. Developed by the PRC government, ACTCS was intended to effectively eliminate counterfeit invoices, providing accurate and complete tax information for the regional and national audit system. The company provides customers with the necessary ACTCS for their VAT reporting, collection and processing. The VIE entity, HiTek, is authorized to carry out the sales of GTD. The company is authorized by the State Taxation Bureau, Xiamen Branch, as one of the first ACTCS service providers in the Xiamen metropolitan area. GTD is an ACTCS device necessary for normal operation of ACTCS software, and purchase of GTD is allowed only in conjunction with the use of the ACTCS software and its supporting services. Currently, there are three ACTCS services providers for Xiamen business companies, and the company is one of them. The company notes challenges in its services to SMEs, which are exempted from the ACTCS services.