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VARIABLE INTEREST ENTITY (“VIE”)
 6 Months Ended
Jun. 30, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
VARIABLE INTEREST ENTITY (“VIE”)

3. VARIABLE INTEREST ENTITY (“VIE”)

 

SEA is a trading company incorporated on March 4, 2004, under the laws of Malaysia. SEA provided majority of ASL’s purchases. The income generated was insufficient to finance its activities and 100% of its business is transacted with ASL. Therefore, it was considered to be a VIE and ASL is the primary beneficiary since it has both of the following characteristics:

 

  a. The power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and
  b. The obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.

 

Accordingly, the accounts of SEA is consolidated in the accompanying financial statements.

 

The carrying amount of the VIE’s assets and liabilities were as follows:

 

       
   As of 
  

June 30, 2026

  

December 31, 2025

 
         
Current assets:          
Cash  $256   $257 
Total current assets  $256   $257 
           
Current liabilities:          
Other payables and accrued liabilities  $2,213   $1,631 
Total current liabilities  $2,213   $1,631 
           
Net deficit  $(1,957)  $(1,374)

 

The summarized operating results of the VIE’s are as follows:

 

             
   For the three months ended
June 30,		  

For the six months ended

June 30,

 
   2026   2025   2026   2025 
                 
Operating revenues  $-   $-   $-   $- 
Gross profit  $-   $-   $-   $- 
Loss from operations  $(604)  $(42)  $(300)  $(328)
Net loss  $(604)  $(42)  $(300)  $(328)

 

 

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)