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INCOME TAX
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAX

16.        INCOME TAX

 

United States of America

 

MVNC is registered in the State of Nevada and is subject to the tax laws of United States of America.

 

BVI

 

Under the current BVI law, UWMC is not subject to tax on income.

 

Hong Kong

 

The Company’s subsidiaries operating in Hong Kong is subject to the Hong Kong Profits Tax at the two-tiered profits tax rates from 8.25% to 16.5% on the estimated assessable profits arising in Hong Kong during the current period, after deducting a tax concession for the tax year.

 

The provision for income taxes consisted of the following:

        
   Years ended December 31, 
   2025   2024 
         
Current:          
- Local (US tax regime)  $4,586   $– 
- Foreign   –    – 
           
Deferred:          
- Local   –    – 
- Foreign   –    – 
           
Income tax benefit  $4,586   $– 

 

The reconciliation of income tax computed by applying the U.S. federal income tax rate of 21% to the actual income tax (expense) benefit at the Company’s effective rate is as follows:

                
   Years ended December 31, 
   2025   2024 
   Amount   Percent   Amount   Percent 
Computed “expected” tax expense   71,504    21.0%   (154,069)   21.0%
Effect of differential tax rate – subsidiaries (Note i)   (9,409)    (2.8)%   70,460    (9.6)%
Tax credits:                    
Income not subject to taxes   (27,712)   (8.1)%   (315)   0.0%
Expenses not subject to tax deduction   –    0.0%   28,496    (3.9)%
Changes in unrecognized tax benefits   (29,797)   (8.8)%   55,428    (7.5)%
Income tax benefit   4,586    1.3%   –    0.0%

 

Note :

(i)Represents the foreign income tax rate differential when compared to U.S. statutory income tax rate for the years ended December 31, 2025 and 2024

 

The following table sets forth the significant components of the deferred tax assets of the Company as of December 31, 2025 and 2024:

        
   As of 
   December 31, 2025   December 31, 2024 
         
Deferred tax assets:          
Net operating loss (“NOL”) – US tax regime  $897   $28,496 
NOL – British Virgin Islands regime   –    – 
NOL – Hong Kong tax regime   5,524    40,022 
    6,421    68,518 
Less: valuation allowance   (6,421)   (68,518)
Deferred tax assets, net  $–   $– 

 

As of December 31, 2025, the Company had US net operating loss (“NOL”) carryforwards of approximately $4,273, which are available to offset future taxable income. These NOL carryforwards expire in varying amounts beginning in 2026 through 2045. The Company has recorded a full valuation allowance against its deferred tax assets, as management has determined that it is more likely than not that the tax benefits associated with these deferred tax assets will not be realized.

 

As of December 31, 2025, the Company had cumulative net operating losses of $33,479 under Hong Kong tax regime, which can be carried forward to offset future taxable income at no expiry.

 

The following table summarizes the changes in the valuation allowance for deferred tax assets:

    
Balance, December 31, 2023  $41,630 
Addition during the year   26,888 
Balance, December 31, 2024  $68,518 
Addition during the year   (62,097) 
Balance, December 31, 2025  $6,421 

 

Valuation allowances

 

Deferred taxes as of December 31, 2025 were reduced by a valuation allowance relating to net operating losses. In assessing the likelihood of realizing deferred tax assets, management considers factors such as prior earnings history, expected future earnings and the reversal of existing taxable temporary differences. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Deferred taxes are determined utilizing the asset and liability method based on the estimated future tax effects of differences between the financial accounting and tax bases of assets and liabilities under the applicable tax laws. Valuation allowances are provided if, based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. In the determination of the appropriate valuation allowances, the Company has considered the most recent projections of future business results and taxable income by jurisdiction. Actual results may vary in comparison to current projections. After consideration of the evidence described above, management believes it is more likely than not that deferred tax assets will be realized.

 

As of December 31, 2025 and 2024, the Company had no unrecognized tax benefits. Interest and penalty charges, if any, related to income taxes would be classified as a component of the provision for income taxes in the consolidated statements of operations. The Company does not expect any significant change in its uncertain tax positions in the next twelve months.