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:
SCHEDULE
OF COMPONENTS OF LOSS BEFORE INCOME TAXES FROM CONTINUING OPERATIONS
| | |
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 | ) |
|
| SCHEDULE OF PROVISION FOR INCOME TAXES FROM CONTINUING OPERATIONS |
The
provision for income taxes from continuing operations was comprised of the following:
SCHEDULE
OF PROVISION FOR INCOME TAXES FROM CONTINUING OPERATIONS
| | |
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:
SCHEDULE
OF COMPONENTS OF DEFERRED INCOME TAX ASSETS AND LIABILITIES
| |
|
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:
SCHEDULE
OF RECONCILIATION OF EFFECTIVE INCOME TAX RATE FROM CONTINUING OPERATIONS
| | |
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 | ) |
|