8.
Interest Income and Interest Expense
The
Group was offered certain banking facilities with commercial banks and financial institutions. The facilities were as follows:
| ● |
Receivable
purchase facilities: The Company may elect payment from the bank and financial institutions with a certain portion of the invoices
sold. Interest expenses will be charged on the portion in this respect. |
| |
|
| ● |
Receivable-backed
loan facility in the amount of $4 million and $3 million as of June 30, 2026, and December 31, 2025, respectively. With the backing
of accounts receivable of selected customers, the advance drawn under this arrangement was $Nil as of June 30, 2026 and December
31, 2025. |
The
interest rates under the factoring agreement range from 4.84% to 6.74% (2025: 5.53% to 7.39%) per annum.
The
following table provides additional information about the Company’s interest income, interest expense and other financing costs,
net for the six months ended June 30, 2026, and 2025:
Schedule of Interest Income and Interest Expense
| | |
2026 | | |
2025 | |
| | |
| (Unaudited) | | |
| (Unaudited) | |
| Interest
income | |
$ | 48,159 | | |
$ | 6,666 | |
| Interest
expense on lease liabilities | |
| (2,306 | ) | |
| (3,107 | ) |
| Interest
expense on factoring arrangement | |
| (777,940 | ) | |
| (285,064 | ) |
| Total | |
$ | (732,087 | ) | |
$ | (281,505 | ) |
|