v3.26.1
VARIABLE INTEREST ENTITY (“VIE”)
3 Months Ended
Mar. 31, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
VARIABLE INTEREST ENTITY (“VIE”)

Note 2     VARIABLE INTEREST ENTITY (“VIE”)

 

The Company consolidates Xinca, a VIE for which the Company is determined to be the primary beneficiary in accordance with ASC 810, Consolidation, as disclosed in Note 2 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on April 15, 2026.

 

The Company does not have any equity ownership interest in its consolidated VIE. The Company’s involvement with this VIE is through contractual arrangements that provide the Company with (i) the power to direct the activities that most significantly impact the VIE’ economic performance and (ii) the right to receive substantially all of the economic benefits of the VIE, while also obligating the Company to absorb losses that could potentially be significant.

 

The assets of the consolidated VIE may only be used to settle the obligations of the respective VIE and are not available to satisfy the obligations of the Company, except as otherwise permitted under the relevant contractual arrangements. The creditors of the consolidated VIE do not have recourse to the general credit of the Company.

 

The following tables present the carrying amounts of the assets and liabilities of the Company’s consolidated VIE included in the unaudited condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025.

      
   March 31,
2026
  December 31,
2025
    (Unaudited)    (Audited) 
    $     $  
Cash and bank balance   168,897    112,551 
Prepaid expense and other receivables   7,234    39,430 
Property and equipment, net   36,138    47,216 
Accrued expense and other liabilities   (1,812)   (78,875)
Long-term secured other borrowing   (24,102)   (31,296)
Net assets value   186,349    89,020