v3.25.2
Income tax (Tables)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Schedule of income before income tax

The Company’s loss before income tax consists of:

 

   2024   2023 
   Years ended December 31, 
   2024   2023 
   US$   US$ 
         
Malaysia   1,126,832    2,042,746 
Indonesia   (723,350)   (786,490)
Hong Kong   (38,651,082)   (15,141,598)
Others   (859)   (8,963)
Loss before income tax   (38,248,459)   (13,894,305)
  
Schedule of components of income tax expense

Income tax expense consists of:

 

   2024   2023 
   Years ended December 31, 
   2024   2023 
   US$   US$ 
         
Income tax expense   534,661    797,147 
Deferred income tax benefit   43,642   (273,666)
Total income tax expense   578,303    523,481 
  
Schedule of effective income tax rate reconciliation

A reconciliation of the income tax expense to the amount computed by applying the current statutory tax rate to the income before income tax in the consolidated statements of operations and comprehensive loss is as follows:

 

   2024   2023 
   Years ended December 31, 
   2024   2023 
   US$   US$ 
         
Income before income tax   (28,748,459)   (13,894,305)
Tax calculated at Hong Kong profits tax rate   (4,743,494)   (2,292,560)
Effect of different tax rates applicable to different jurisdictions   6,683,940    1,637,665 
Income not subject to tax   (8,328,873)   (48,307)
Non-deductible expenses   5,705,763    132,796 
Change in valuation allowance   1,041,756    846,827 
Underprovision of current tax in the previous financial year   31,902    125,217 
Tax effect on deductible temporary differences   7,946    7,918 
Others   179,363    113,925 
Income tax   578,303    523,481 
  
Schedule of deferred tax assets and liabilities

The Company’s deferred tax assets and liabilities as of December 31, 2024 and 2023 are attributable to the following:

 

   2024   2023 
   December 31, 
   2024   2023 
   US$   US$ 
Deferred tax assets          
Tax losses carried forward   8,193,135    8,266,115 
Equipment   (82,885)   (65,050)
Accrued expenses   419,001    296,576 
Others   82,657    54,560 
Total deferred tax assets   8,611,908    8,552,201 
Valuation allowance   (8,269,086)   (7,887,313)
Total deferred tax assets   342,822    664,888 
           
Deferred tax liabilities          
Fixed assets        

-

 
Intangible assets   (876,875)   (1,184,987)
Others   (37)   (61,773)
Total deferred tax liabilities   (876,912)   (1,246,760)
           
Net deferred tax liabilities   (534,090)   (581,872)
  
Schedule of purchase price of acquisition

The allocation of the purchase price as of the date of acquisition is summarized as follows:

 

   US$ 
Net assets acquired (i)   (1,510,899)
Goodwill (Note 9) (ii)   7,771,855 
Non-controlling interests (iii)   (3,931,441)
Total   2,329,515 
      
Total purchase price is comprised of:     
Cash consideration   200,000 
Fair value of previously held equity interests   2,129,515 
Total   2,329,515 

 

(i)Net assets acquired primarily included accounts receivables and other receivables of approximately US$0.6 million, property and equipment of approximately US$0.2 million, operating lease right-of-use assets relating to land use rights of approximately US$0.1 million and other assets of approximately US$1.6 million and liabilities of approximately US$4.1 million as of the date of acquisition.

 

 

CURRENC GROUP INC. AND SUBSIDIARIES

 

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

19Acquisition of Dynamic Indonesia Holdings Limited (Continued)

 

(ii)Goodwill arose on the acquisition from the expected synergies from combining our existing airtime operations with those of Dynamic Indonesia Holdings Limited.

 

(iii)An independent valuation firm was hired by Noble Tack International Limited to value it shares in Dynamic Indonesia at approximately the date of the acquisition. The firm used market approach Price-to-Sales multiple-based methodology to determine the value.
  
Schedule of acquisition of consolidated statements of operations

The following amounts of the acquiree since the acquisition date are included in the December 2024 consolidated statement of operations.

 

   2024   2023 
   US$   US$ 
Revenue   14,584,434    14,211,091 
Loss after tax   (432,795)   (836,874)
  
Seamless Group Inc [Member]    
Schedule of income before income tax  

The Company’s loss before income tax consists of:

Schedule of income before income tax

 

           
   Years ended December 31, 
   2023   2022 
   US$   US$ 
         
Malaysia   2,042,746    1,606,867 
Indonesia   (786,490)   1,609,362 
Hong Kong   (15,141,598)   (18,818,064)
Others   (8,963)   (10,096)
Loss before income tax   (13,894,305)   (15,611,931)
Schedule of components of income tax expense  

Income tax expense consists of:

Schedule of components of income tax expense

 

           
   Years ended December 31, 
   2023   2022 
   US$   US$ 
         
Income tax expense   797,147    507,740 
Deferred income tax benefit   (273,666)   (393,958)
Income tax expense benefit   523,481    113,782 
Schedule of effective income tax rate reconciliation  

A reconciliation of the income tax expense to the amount computed by applying the current statutory tax rate to the income before income tax in the consolidated statements of operations and comprehensive loss is as follows:

Schedule of effective income tax rate reconciliation

 

           
   Years ended December 31, 
   2023   2022 
   US$   US$ 
         
Income before income tax   (13,894,305)   (15,611,931)
Tax calculated at Hong Kong profits tax rate   (2,292,560)   (2,576,217)
Effect of different tax rates applicable to different jurisdictions   1,637,665    2,244,573 
Income not subject to tax   (48,307)   (567,161)
Non-deductible expenses   132,796    658,533 
Change in valuation allowance   846,827    245,220 
Underprovision of current tax in the previous financial year   125,217    48,182 
Tax effect on deductible temporary differences   7,918    46,624 
Others   113,925    14,028 
Income tax   523,481    113,782 
Schedule of deferred tax assets and liabilities  

The Company’s deferred tax assets and liabilities as of December 31, 2023 and 2022 are attributable to the following:

Schedule of deferred tax assets and liabilities

 

           
   December 31, 
   2023   2022 
   US$   US$ 
Deferred tax assets          
Tax losses carried forward   8,266,115    7,526,178 
Equipment   (65,050)   (90,113)
Accrued expenses   296,576    354,988 
Others   54,560    39,290 
Deferred tax gross   8,552,201    7,830,343 
Valuation allowance   (7,887,313)   (7,061,726)
Total deferred tax assets   664,888    768,617 
           
Deferred tax liabilities          
Fixed assets   -    - 
Intangible assets   (1,184,987)   (1,554,721)
Others   (61,773)   (61,622)
Total deferred tax liabilities   (1,246,760)   (1,616,343)
           
Net deferred tax liabilities   (581,872)   (847,727)