v3.26.1
INCOME TAXES (Tables)
6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
SCHEDULE OF COMPONENTS OF LOSS BEFORE INCOME TAXES FROM CONTINUING OPERATIONS

The components of loss before income taxes from continuing operations were as follows:

 

   2026   2025   2026   2025 
  

For the three months ended

June 30,

  

For the six months ended

June 30,

 
   2026   2025   2026   2025 
   US$   US$   US$   US$ 
Domestic loss before income taxes   (498,053)   (409,479)   (850,660)   (909,075)
Foreign loss before income taxes   (654,458)   (430,727)   (1,421,213)   (730,203)
Total loss before income taxes   (1,152,511)   (840,206)   (2,271,873)   (1,639,278)
SCHEDULE OF PROVISION FOR INCOME TAXES FROM CONTINUING OPERATIONS

The provision for income taxes from continuing operations was comprised of the following:

 

   2026   2025   2026   2025 
  

For the three months ended

June 30,

  

For the six months ended

June 30,

 
   2026   2025   2026   2025 
   US$   US$   US$   US$ 
Current:                    
Federal                
State                
Foreign                
Total current income taxes                
                     
Deferred:                    
Federal   (79,250)   (44,891)   (104,228)   (110,444)
State   (24,529)   (13,895)   (32,260)   (43,652)
Foreign                
Total deferred income taxes   (103,779)   (58,786)   (136,488)   (154,096)
                     
Total income tax (benefit)/provision   (103,779)   (58,786)   (136,488)   (154,096)
SCHEDULE OF COMPONENTS OF DEFERRED INCOME TAX ASSETS AND LIABILITIES

The significant components of deferred income tax assets and liabilities from continuing operations were as follows:

 

    2026   2025 
   

 

As of June 30, 2026

 

 

As of December 31, 2025

 
    US$   US$ 
Deferred tax assets:           
Net operating losses carry forwards    343,262    206,416 
Provision for doubtful accounts    83    441 
Unrealized loss on short-term investments, net of tax effect    32,413    26,180 
Impairment of intangible assets    238,821    238,821 
Gross deferred tax assets    614,579    471,858 
Less: valuation allowance    (365,259)    (359,026) 
Net deferred tax assets    249,320    112,832 
            
Deferred tax liabilities:           
Temporary difference of intangible asset    25,200    25,200 
Gross deferred tax liabilities    25,200    25,200 
Net deferred tax liabilities    25,200    25,200 
SCHEDULE OF RECONCILIATION OF EFFECTIVE INCOME TAX RATE FROM CONTINUING OPERATIONS

The reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate from continuing operations was as follows:

 

   2026   2025   2026   2025 
  

For the three months ended

June 30,

  

For the six months ended

June 30,

 
   2026   2025   2026   2025 
US federal statutory tax rate   21.0%   21.0%   21.0%   21.0%
Effect of foreign tax rate differential   -11.6%   -11.0%   -12.9%   -9.2%
State income taxes, net of federal benefit   1.9%   1.7%   1.5%   2.1%
Non-deductible expenses   -0.1%   0.0%   -0.1%   0.0%
Utilization of prior-year net operating loss carryforwards   0.0%   0.0%   0.1%   0.0%
Current year losses with no deferred tax benefit recognized   -3.2%   -4.7%   -3.3%   -5.0%
Deferred tax benefit related to prior-year losses   0.0%   0.0%   0.0%   0.6%
Tax effect of temporary differences subject to valuation allowance   0.9%   0.0%   -0.3%   0.0%
Effective income tax rate   8.9%   7.0%   6.0%   9.5%

 

The reconciliation of income tax expense (benefit) computed at the U.S. federal statutory income tax rate to the actual income tax provision (benefit) from continuing operations was as follows:

 

   2026   2025   2026   2025 
  

For the three months ended

June 30,

  

For the six months ended

June 30,

 
   2026   2025   2026   2025 
US federal statutory tax rate   (242,027)   (176,443)   (477,093)   (344,248)
Effect of foreign tax rate differential   133,613    92,022    293,773    151,409 
State income taxes, net of federal benefit   (21,996)   (13,895)   (33,734)   (34,157)
Non-deductible expenses   1,030        2,163     
Utilization of prior-year net operating loss carryforwards           (2,498)    
Current year losses with no deferred tax benefit recognized   36,319    39,530    74,668    82,486 
Deferred tax benefit related to prior-year losses               (9,586)
Tax effect of deferred tax assets not recognized due to valuation allowance   (10,718)       6,233     
Income tax provision (benefit)   (103,779)   (58,786)   (136,488)   (154,096)