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STOCKHOLDERS’ EQUITY
12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
STOCKHOLDERS’ EQUITY

15. STOCKHOLDERS’ EQUITY

 

Preferred stock

 

As of December 31, 2025 and 2024, there were 200,000,000 preferred stocks authorized but none were issued and outstanding.

 

Common stock

 

Pursuant to the resolution passed at the board meeting on January 7, 2025, the Company is authorized to increase the common stock from 50,000,000 shares to 500,000,000 shares.

 

Pursuant to the resolution passed at the board meeting on February 27, 2025, the Company is authorized to issue 46,000,000 shares of common stock at $0.0001 per share. On March 20, 2025, the Company issued 46,000,000 shares of common stock and received net cash proceeds of $23,000,000.

 

As of December 31, 2025 and 2024, there were 500,000,000 and 50,000,000 common stocks authorized, 1,000,626 and 79,781 shares issued and outstanding, respectively.

 

Share-based compensation

 

The Company has share-based compensation to the executive director. The share-based compensation expense is recorded in general and administrative expenses. The value of the share is $5,000 a month and the number of shares to issue is based on the average market price of the month. The Company will issue the share on half yearly basis.

 

As of December 31, 2025 and 2024, there were 759 and 103 shares issued respectively.

 

Warrants

 

On October 10, 2023, the Company entered into an underwriting agreement with Network 1 Financial Securities, Inc., as underwriter named thereof, in connection with its initial public offering (“IPO”) of 82,500 shares of common stock, par value $0.0001 per share (the “Shares”) at a price of $80.00 per share. The Company issued Representative’s Warrants to purchase up to 5,775 shares of common stock at $88.00 per share, dated October 13, 2023, to Network 1 Financial Securities, Inc. The warrants shall be exercisable at any time, and from time to time, in whole or in part, 180 days after October 13, 2023 (i.e. the date of issuance) and expiring on October 10, 2028.

 

The warrants are classified as equity instruments, the contracts are initially measured at fair value and no subsequent measurement is needed for equity instruments. The Company uses Black-Scholes Model to calculate the fair value of the warrant. As of October 13, 2023 (the “Grant Date”) the warrant was valued at $38,580 with the following assumptions.

 

   As of 
   October 13, 2023 
Risk-free interest rate   4.65%
Expected volatility   49%
Expected life (in years)   5 years  
Expected dividend yield   0.00%
Fair value of warrants  $38,580