NOTE 11. COMPREHENSIVE INCOME

Basis of comprehensive income (loss)

The Company’s other comprehensive income (loss) (“OCI”) consists of foreign currency translation adjustments arising from those subsidiaries that do not use the U.S. dollar as their functional currency — AD Advisory Services Pty Ltd. (ADS, Australian dollar), Alchemy Markets Ltd. (AML, euro), Alchemy Prime Limited (APL, pound sterling), and Alchemytech Ltd. (ATECH, euro). These adjustments are recorded, net of tax, in accumulated other comprehensive income (loss) (“AOCI”) within stockholders’ equity and noncontrolling interests, and are reclassified to the statement of operations only upon the disposal or liquidation of the related subsidiary. Because the undistributed earnings of the Company’s foreign subsidiaries are considered indefinitely reinvested, no deferred tax effect has been recorded on the OCI components presented (ASC 740-30-25-17). No amounts were reclassified out of AOCI to net income during the three months ended March 31, 2025, or March 31, 2024.

The following table shows the changes in AOCI by component for the three months ending March 31, 2025, and 2024:

 SCHEDULE OF CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME 

Changes in AOCI by component. AOCI, all of which relates to cumulative foreign currency translation, was a balance of $225,228 at December 31, 2023. During the three months ended March 31, 2024 (restated), the Company recognized total other comprehensive loss of $(242,516), comprising translation adjustments attributable to ADS of $6,810, AML of $(230,864), and APL of $(18,462), reducing the AOCI balance to $(17,288) at March 31, 2024. The AOCI balance was $(72,781) at December 31, 2024. During the three months ended March 31, 2025 (restated), the Company recognized total other comprehensive income of $193,407, comprising translation adjustments attributable to ADS of $5,281, AML of $222,617, APL of $(34,862), and ATECH of $371, increasing the AOCI balance to $120,626 at March 31, 2025.