v3.26.1
Taxation (Tables)
12 Months Ended
Dec. 31, 2025
Taxation [Abstract]  
Schedule of Current and Deferred Portion of Income Tax Expense

The following table sets forth current and deferred portion of income tax expense of the Group:

 

For the years ended December 31,

   

2025

 

2024

 

2023

Current income tax expense

 

$

 

$

 

$

Deferred income tax expense

 

 

 

 

 

 

Total income tax expense

 

$

 

$

 

$

Schedule of Loss Before Provision for Income Tax

Loss before provision for income tax were attributable to the following geographic locations:

 

For the years ended December 31,

   

2025

 

2024

 

2023

Mainland China

 

$

30,345

 

$

38,651

 

$

84,911

Dubai

 

 

10,915

 

 

33,370

 

 

77,134

United States

 

 

126,307

 

 

100,705

 

 

104,650

Total loss before income tax expenses

 

$

167,567

 

$

172,726

 

$

266,695

Schedule of Reconciliation Statutory Income Tax Rate

The following table sets forth reconciliation between the statutory income tax rate and the effective tax rates:

 

For the years ended December 31,

   

2025

 

2024

 

2023

Statutory income tax rate in PRC

 

25.0

%

 

25.0

%

 

25.0

%

Tax effect of non-deductible items

 

 

 

 

 

(0.1

)%

Tax effect of undeclared expenses(i)

 

 

 

(5.2

)%

 

(2.9

)%

Tax effect of fair value change of convertible notes

 

(0.4

)%

 

 

 

 

Tax effect of share-based compensation

 

(17.5

)%

 

 

 

 

Tax effect of income tax rate differences in jurisdictions other than the PRC

 

(2.6

)%

 

(2.7

)%

 

(4.4

)%

Tax effect of net operating loss not applicable to carryforwards

 

(0.3

)%

 

7.5

%

 

(6.1

)%

Change in valuation allowance

 

(4.2

)%

 

(24.6

)%

 

(11.5

)%

Effective tax rate

 

 

 

 

 

 

(i)      The undeclared expenses mainly represent accrued financial expenses associated with PIPE escrow accounts. These are related expenses for which the Group will not include in the tax return, thereby giving rise to a permanent difference.

Schedule of Deferred Tax Assets

As of December 31, 2025 and 2024, the significant components of the deferred tax assets were summarized below:

 

As of December 31,

   

2025

 

2024

Deferred tax assets:

 

 

 

 

 

 

 

 

Net operating loss carried forward

 

$

39,608

 

 

$

36,748

 

State net operating loss carried forwards for US entity

 

 

718

 

 

 

586

 

Accrued expenses

 

 

652

 

 

 

468

 

Impairment loss

 

 

12,167

 

 

 

13,376

 

Allowance for expected credit loss

 

 

30,512

 

 

 

24,273

 

Impairment on investments

 

 

3,980

 

 

 

3,980

 

Inventory write-down

 

 

4,277

 

 

 

4,249

 

Lawsuit provision

 

 

6,346

 

 

 

5,509

 

Property and equipment

 

 

799

 

 

 

788

 

Total deferred tax assets

 

 

99,059

 

 

 

89,977

 

Less: valuation allowance

 

 

(99,059

)

 

 

(89,977

)

Deferred tax assets, net of valuation allowance

 

$

 

 

$

 

   

 

 

 

 

 

 

 

Roll forward of valuation allowance

 

 

 

 

 

 

 

 

Balance at the beginning of the year

 

$

89,977

 

 

 

48,363

 

Allowance made during the year

 

 

6,978

 

 

 

42,532

 

Effect of exchange rate differences

 

 

2,104

 

 

 

(918

)

Balance at the end of the year

 

$

99,059

 

 

 

89,977

 

Schedule of Operating Loss Carry Forward As of December 31, 2025, the net operating loss carry forward from Mainland China will expire, if unused, as follows:
 

Net operating loss carry forward due by schedule

   

2026

 

2027

 

2028

 

2029

 

2030

 

Total

Net operating loss carry forward

 

2,639

 

24,336

 

39,416

 

76,836

 

6,006

 

149,233