v3.26.1
Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Taxes [Abstract]  
Schedule of Income (loss) Before Income Taxes The components of income (loss) before income taxes are as follows:
   Years ended December 31, 
   2025   2024   2023 
Non-PRC  $(160)  $(258)  $(421)
PRC   14,416    12,751    13,049 
Total  $14,256   $12,493   $12,628 
Schedule of Income Tax Provision The components of the income tax provision are as follows:
   Years ended December 31, 
   2025   2024   2023 
Current income tax expense  $1,706   $1,077   $796 
Deferred income tax expense   341    589    1,524 
Total income tax expense  $2,047   $1,666   $2,320 
Schedule of Statutory Rates to the Company’s Effective Tax Rate

The following table reconciles the China statutory rates to the Company’s effective tax rate for the years ended December 31, 2025, 2024 and 2023:

 

   Years ended December 31, 
   2025   2024   2023 
PRC statutory income tax rate   25.0%   25.0%   25.0%
Effect of preferential tax rates (a)   (13.1)%   (10.8)%   (6.2)%
Eligible additional deduction (b)   1.1%   (2.4)%   (3.5)%
Impact of different tax rates in other jurisdictions   0.3%   0.5%   0.8%
Non-taxable and exemptions   0.1%   0.0%   (0.3)%
Permanent differences (c)   1.0%   1.0%   2.6%
Effective income tax rate   14.4%   13.3%   18.4%

 

(a) Preferential tax rates for small and low profit enterprise and high and new technology enterprise.

 

(b) Eligible additional deduction mainly consisted of research and development super deduction and disabled staff super deduction.

 

(c) Permanent differences mainly consisted of non-deductible meal and entertainment fees in PRC tax returns.
Schedule of Financial Accounting Basis and Tax Basis of Assets and Liabilities The following table summarizes deferred tax assets and liabilities resulting from differences between financial accounting basis and tax basis of assets and liabilities:
   As of
December 31,
2025		   As of
December 31,
2024		 
Deferred tax assets:        
Net operating losses carryforward  $309   $280 
Allowance for credit losses   776    791 
Deferred income (a)   253    256 
Intangible assets (b)   203    193 
Operating lease liabilities   951    1,806 
Total deferred tax assets   2,492    3,326 
Less: valuation allowance   
-
    
-
 
Total deferred tax assets, net of valuation allowance   2,492    3,326 
Net off against deferred tax liabilities   (1,179)   (1,892)
Net deferred tax assets  $1,313   $1,434 
           
Deferred tax liabilities:          
Property and equipment (c)  $355   $41 
Operating lease right-of-use assets   1,071    1,904 
Deferred tax liabilities   1,426    1,945 
Net off against deferred tax assets   (1,179)   (1,892)
Net deferred tax liabilities  $247   $53 

 

(a) Deferred income represents the assets related government subsidies, which will amortize on a straight-line basis within the useful life of related assets. The tax basis is recognized when the Company received the subsidies.
   
(b) Intangible asset represents the amortization temporary difference of licensed software. Management uses 10 years useful life as the tax basis, which is different from the 5 years useful life in accounting basis.
   
(c) Property and equipment represent the amortized temporary difference between the tax basis and the accounting basis.
Schedule of Tax Payable

Tax payable consisted of the following:

 

   As of
December 31,
2025		   As of
December 31,
2024		 
Value-added tax payable  $2,627   $1,879 
Income tax payable   1,093    821 
Other taxes payable   430    317 
Total  $4,150   $3,017