SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
6 Months Ended | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2026 | ||||||||||||||||||||||
| Accounting Policies [Abstract] | ||||||||||||||||||||||
| Functional Currency | Functional Currency
The functional currency of FiEE (HK) Limited is the Hong Kong dollar (“HKD”). The functional currency of HGK is the Japanese Yen (JPY). The functional currency of FiEE Singapore Pte. Ltd. is the U.S. Dollar (USD). The functional currency of Yinlian Culture and Maltose Culture is the Chinese Renminbi (RMB). Foreign currency transactions are translated into their respective functional currencies using exchange rates at the transaction dates, while monetary assets and liabilities denominated in foreign currencies are remeasured at period-end rates. The functional currency of all other entities of the Company is U.S. Dollar (“USD”), the same as the reporting currency.
Assets and liabilities of the Company denominated in functional currency other than USD are translated into USD at period-end exchange rates. Equity accounts other than earnings generated in the current period are translated into USD at the appropriate historical rates. The results of operations and the statements of cash flows denominated in functional currency other than USD are translated into USD at the average exchange rates during the reporting period. Translation adjustments arising from these are reported as cumulative translation adjustments and are shown as a separate component of accumulated other comprehensive income (loss) in the consolidated statements of changes in stockholders’ equity (deficit).
|
|||||||||||||||||||||
| Property, Equipment and Software | Property, Equipment and Software
Property, equipment and software primarily consisted of equipment, vehicles, land, building and internal-use software customized by a vendor, which are stated at cost, and are depreciated or amortized on a straight-line basis over their estimated useful lives. Maintenance and repairs are charged to expense as incurred. Significant improvements that substantially enhance the useful life of an asset are capitalized and depreciated. When assets are retired or disposed of, the cost together with related accumulated depreciation is removed from the balance sheet and any resulting gain or loss is reflected in the Company’s statements of operations in the period realized. Costs incurred to develop internal-use software are capitalized only during the application development stage.
|
|||||||||||||||||||||
| Noncontrolling interests | Noncontrolling interests
The Company presents noncontrolling interests as a component of equity on its condensed consolidated balance sheets and reports the portion of its earnings or loss for noncontrolling interests as net earnings or loss attributable to noncontrolling interests in the condensed consolidated statements of operations.
Noncontrolling interests represent interests in the net assets of the Company’s consolidated subsidiary and VIE that are not attributable, directly or indirectly, to the Company. Noncontrolling interests are adjusted, as applicable, for their respective shares of net income or loss, other comprehensive income or loss, and distributions.
|
|||||||||||||||||||||
| Income Taxes | Income Taxes
Entities incorporated in Hong Kong are subject to Hong Kong Profits Tax at a rate of 8.25% on the first HKD 2 million of assessable profits and at 16.5% thereon. There are no withholding taxes on the payment of dividends by entities incorporated in Hong Kong to their stockholders.
Entities incorporated in Japan are subject to Japanese corporate income tax at an effective rate of approximately 37% (including national and local taxes).
Entities incorporated in Singapore are subject to Singapore corporate income tax at a flat rate of 17% on chargeable income. There are no withholding taxes upon payment of dividends by an entity incorporated in Singapore to its shareholders.
For the three and six months ended June 30, 2026, the Company recorded income tax expense of $526,897 and $663,726, respectively, primarily attributable to its Hong Kong, Singapore, and Japan subsidiaries’ taxable income. The Company recognized deferred tax assets of $26,371 as of June 30, 2026, which arose primarily from the allowance for credit losses on other receivables.
|
|||||||||||||||||||||
| Segment reporting | Segment reporting
The Company operates as a single operating segment. The Company’s chief operating decision maker (“CODM”), its Chief Executive Officer, reviews financial information on an aggregate basis for the purposes of allocating resources and evaluating financial performance. The measure of segment profit or loss reviewed by the CODM is operating income. The Company’s primary operations were historically in the U.S., and during the year ended December 31, 2025, primarily Hong Kong. Beginning in March 2026, following the incorporation of its subsidiary in Singapore, the Company has derived substantially all of its revenues from Hong Kong and Singapore. As of June 30, 2026, the Company’s long-lived assets are mainly located in U.S., Hong Kong and Japan.
For the three and six months ended June 30, 2026 and 2025, significant segment expenses that are regularly provided to the CODM and included in this measure consist of cost of revenues, selling, general, and administrative expenses. These expenses are consistent with the amounts presented in the consolidated statements of operations. There are no other segment items as there are no significant assets or operations not regularly reviewed by the CODM.
|
|||||||||||||||||||||
| Recently Issued Accounting Standards | Recently Issued Accounting Standards
There have been no other new accounting pronouncements that have significance, or potential significance, to the Company’s financial position, results of operations and cash flows.
|