Note 10 – Accrued Liabilities and Other Payables

Accrued liabilities and other payables consisted of the following as of March 31, 2026 and December 31, 2025:

 Schedule of Accrued Liabilities and Other Payables

As of March 31, 2026 and December 31, 2025, other accrued expenses mainly included legal and professional fees, utilities and unpaid operating expenses incurred in Malaysia. Other payables represented balance on credit card, other taxes payable, 401(k) payable and payable for marketing, shipping, director and showroom.

On September 12, 2023, Nova Malaysia entered into an agreement with a consulting firm to deliver consultancy service for AI Trends and Tools. Nova Malaysia agreed to pay 5,000,000 Malaysia Ringgit ($1,065,235) for the service. During 2024, Nova Malaysia paid 4,100,000 Malyaia Ringgit ($896,234) to the consultant and was recorded as consulting expense. The remaining balance was recorded as accrued expenses. On October 31, 2025, Nova Malaysia was forgiving the remaining amount of 900,000 Malaysia Ringgit ($221,893) by the consulting firm and recorded the remaining amount as other income.