| Schedule of Components of (Loss)/Gain Before Income Taxes |
The components of (loss)/gain before income taxes consist of
the following: (In USD)
| | |
Year ended March 31, | |
| (In USD) | |
2026 | | |
2025 | |
| Domestic | |
$ | (15,622,131 | ) | |
$ | (17,567,764 | ) |
| Foreign | |
| 1,001,018 | | |
| (8,054,539 | ) |
| Loss before income taxes | |
$ | (14,621,113 | ) | |
$ | (25,622,303 | ) |
|
| Schedule of Reconciliation of the Statutory Federal Income Tax Rate |
The following is a reconciliation
of the statutory federal income tax rate to our effective tax rate:
| | |
March 31, 2026 | |
| | |
Amount | | |
Percentage | |
| Accounting profit/(loss) before tax | |
| (14,621,113 | ) | |
| | |
| Tax using the Company’s domestic tax rate | |
| (3,070,434 | ) | |
| 21 | % |
| | |
| | | |
| | |
| Tax impact of : | |
| | | |
| | |
| U.S. state and local taxes | |
| 2,692,078 | | |
| -18.5 | % |
| Federal benefit for state taxes | |
| (2,692,078 | ) | |
| 18.5 | % |
| | |
| | | |
| | |
| Foreign tax effects | |
| | | |
| | |
| India | |
| (114,307 | ) | |
| 0.8 | % |
| Singapore | |
| (15,834 | ) | |
| 0.1 | % |
| Other foreign jurisdiction | |
| (3,751 | ) | |
| 0.0 | % |
| Valuation allowance | |
| 3,204,325 | | |
| -21.9 | % |
| Effective tax rate | |
| - | | |
| 0.0 | % |
| Current Tax expense | |
| - | | |
| 0 | % |
| Deferred Tax expense | |
| - | | |
| 0 | % |
| Income tax expense reported in the Statements of operations/Effective Tax Rate | |
| - | | |
| 0 | % |
The following table presents a reconciliation of the provision
for income taxes to the amount computed by applying the 21% U.S. federal statutory income tax rate to the income before taxes prior to
the adoption of ASU 2023-09 for the periods presented (in percentages):
| | |
March
31,
2025 | |
| Accounting profit/(loss)
before tax | |
| (25,622,303 | ) |
| Tax using the Company’s
domestic tax rate | |
| (5,380,684 | ) |
| | |
| | |
| Tax impact of : | |
| 21 | % |
| U.S. state and local taxes | |
| 0.3 | % |
| Federal benefit for state taxes | |
| -0.3 | % |
| Valuation allowance | |
| -22.2 | % |
| Difference in tax rates | |
| 1.20 | % |
| Effective tax rate | |
| 0.0 | % |
| Current Tax expense | |
| - | |
| Deferred Tax expense | |
| - | |
| Income tax expense reported
in the Statement of profit and loss/Effective Tax Rate | |
| - | |
|
| Schedule of Deferred Income Tax Assets and Liabilities |
The Company’s deferred income tax assets and liabilities as of March 31, 2026 and 2025 consisted of the following:
| | |
Year ended March 31, | |
| | |
2026 | | |
2025 | |
| Deferred tax assets: | |
| | |
| |
| Net operating loss carryforwards | |
| 19,524,872 | | |
| 39,199,954 | |
| Trade Receivable | |
| 3,042 | | |
| 3,358 | |
| Assets held for sale | |
| 106,045 | | |
| 110,941 | |
| Restricted stock units | |
| 5,595 | | |
| 11,950 | |
| Provision for expenses | |
| 57,666 | | |
| 1,062,347 | |
| Gratuity | |
| 86,772 | | |
| 76,127 | |
| Leave encashment | |
| 48,915 | | |
| 59,273 | |
| Bonus | |
| 23,041 | | |
| 52,526 | |
| Total deferred tax assets | |
| 19,855,949 | | |
| 40,576,476 | |
| Less: Valuation allowance | |
| (18,205,599 | ) | |
| (39,174,653 | ) |
| Deferred tax assets, net of valuation allowance | |
| 1,650,350 | | |
| 1,401,823 | |
| Deferred tax liabilities: | |
| | | |
| | |
| Right of use assets, net of Lease liability | |
| (486,356 | ) | |
| (444,747 | ) |
| Depreciation on property, plant and equipment and intangible assets | |
| (612,239 | ) | |
| (358,219 | ) |
| Borrowings | |
| (551,756 | ) | |
| (598,857 | ) |
| Others | |
| - | | |
| - | |
| Total deferred tax liabilities | |
| (1,650,350 | ) | |
| (1,401,823 | ) |
| Net deferred tax assets | |
| - | | |
| - | |
|