Schedule of Reconciliation Between the Group’s Actual Provision for Income Taxes |
A reconciliation between the Group’s actual
provision for income taxes and the provision at the SG, mainland statutory rate is as follows:
| |
For the six months ended
June 30, | |
| |
2025 | | |
2024 | |
Loss before income taxes | |
$ | (11,271,548 | ) | |
$ | (1,927,027 | ) |
Income tax expenses computed at statutory EIT rate | |
| (1,916,163 | ) | |
| (327,595 | ) |
Reconciling items: | |
| | | |
| | |
Non-deductible expenses | |
| 1,169,195 | | |
| 15,722 | |
Change in valuation allowance | |
| 746,968 | | |
| 311,873 | |
Income tax expenses | |
$ | - | | |
$ | - | |
Effective tax rates | |
| 0.0 | % | |
| 0.0 | % |
|
Schedule of Components of the Deferred Tax Assets |
As of June 30, 2025 and December 31,
2024, the significant components of the deferred tax assets are summarized below:
| |
As of June 30, | | |
As of December 31, | |
| |
2025 | | |
2024 | |
Deferred tax assets: | |
| | |
| |
Net operating loss carried forward | |
$ | 3,180,983 | | |
$ | 2,145,813 | |
Operating lease liabilities | |
| 148,232 | | |
| 168,605 | |
Deferred revenue | |
| 71,990 | | |
| 50,590 | |
Bad debt provision | |
| 16,581 | | |
| 14,188 | |
Property and equipment, net | |
| 2,851 | | |
| 2,074 | |
Other accruals | |
| - | | |
| 107,980 | |
Deferred tax assets, gross | |
| 3,420,637 | | |
| 2,489,250 | |
Valuation allowance | |
| (3,244,738 | ) | |
| (2,297,022 | ) |
Deferred tax assets, net of valuation allowance | |
| 175,899 | | |
| 192,228 | |
| |
| | | |
| | |
Deferred tax liabilities: | |
| | | |
| | |
Operating lease right-of-use assets | |
| (148,232 | ) | |
| (168,605 | ) |
Contract cost assets | |
| (27,072 | ) | |
| (23,586 | ) |
Property and equipment, net | |
| (595 | ) | |
| (37 | ) |
Deferred tax liabilities | |
| (175,899 | ) | |
| (192,228 | ) |
| |
| | | |
| | |
Net deferred tax assets | |
$ | - | | |
$ | - | |
|
Schedule of Roll Forward of Valuation Allowances of Deferred Tax Asset |
The roll forward of valuation allowances of deferred
tax assets were as follows:
| |
As of
June 30, | | |
As of
December 31, | |
| |
2025 | | |
2024 | |
Balance as of beginning of period / year | |
$ | 2,297,022 | | |
$ | 929,574 | |
Additions of valuation allowance | |
| 746,968 | | |
| 1,430,665 | |
Foreign currency translation adjustments | |
| 200,748 | | |
| (63,217 | ) |
Balance as of end of period / year | |
$ | 3,244,738 | | |
$ | 2,297,022 | |
|