NOTE 12. NONCONTROLLING INTERESTS

Noncontrolling interest (“NCI”) represents the 49% minority interest in AD Advisory Services Pty Ltd. (“ADS”); ADS is the only subsidiary in which the Company holds less than a 100% interest. NCI is allocated its proportionate share of ADS net income (loss) and of ADS other comprehensive income (loss). Amounts attributable to NCI are presented on the same negative (income) convention as the consolidated statement of operations. Changes in the Company’s ownership interest that do not result in a loss of control are accounted for as equity transactions, with the carrying amount of NCI adjusted to reflect the change in ownership and any related cumulative translation adjustment reclassified accordingly; the effect of the AML buyout during the three months ended March 31, 2025, is presented on this basis.

Net income (loss) of ADS is attributed between the controlling interest (51%, recorded by FDCTech, Inc.) and the noncontrolling interest (49%) based on relative ownership percentages, with the noncontrolling interest’s share presented on the consolidated statement of operations as “Net income (loss) attributable to noncontrolling interest.” Foreign currency translation adjustments (a component of other comprehensive income) arising from translation of ADS’s Australian dollar functional currency financial statements to U.S. dollars are likewise allocated between the controlling and noncontrolling interests in accordance with ASC 220-10-45-5; only the controlling interest’s portion is included in accumulated other comprehensive income attributable to FDCTech, Inc. stockholders. As described in the Restatement of Previously Issued Financial Statements subsection above, the Company has corrected the prior allocation method, which had reflected total consolidated other comprehensive income in the FDC stockholders’ column without separately allocating the noncontrolling share.

The following table presents the activity in the noncontrolling interest balance for the three months ended March 31, 2025, including the comparative roll-forward to December 31, 2024:

 SCHEDULE OF NON CONTROLLING INTEREST

Changes in noncontrolling interest. NCI was $38,939 at the beginning of fiscal 2024. During the fiscal year ended December 31, 2024 (restated), the Company attributed net loss (income) of $(10,958) to NCI, together with foreign currency translation attributable to NCI of $(11,161), reducing NCI to $16,820 at December 31, 2024. During the three months ended March 31, 2025 (restated), the Company attributed net loss (income) of $21,310 to NCI and recognized foreign currency translation attributable to NCI of $(23,931) — which reflects $34,808 of other comprehensive income offset by the $(58,739) effect of the change in ownership and cumulative translation adjustment reclassification in connection with the AML buyout — resulting in an NCI balance of $14,199 at March 31, 2025.