| OTHER PAYABLE AND ACCRUED EXPENSES |
7. OTHER PAYABLE AND ACCRUED EXPENSES
Other payable and accrued
expenses consisted of the following:
| |
|
June 30,
2026 |
|
|
December 31,
2025 |
|
| Accrued professional expenses incurred for Business Combination
(a) |
|
$ |
1,168,697 |
|
|
$ |
1,176,358 |
|
| Accrued excise tax on repurchases of common stocks (b) |
|
|
502,251 |
|
|
|
502,251 |
|
| Accrued legal expenses (Note 14) |
|
|
250,000 |
|
|
|
— |
|
| Others |
|
|
200,325 |
|
|
|
282,546 |
|
| |
|
$ |
2,121,273 |
|
|
$ |
1,961,155 |
|
|
(a) |
As of June 30, 2026 and December 31, 2025, the balance of accrued professional expenses incurred for
business combination consisted of expenses payable to a financial advisor, the legal counsel and transfer agent. |
|
(b) |
On August 16, 2022, the Inflation Reduction Act of 2022 (the “IRA”) was signed
into federal law. The IRA provides for, among other things, a new U.S. federal 1%
excise tax on certain repurchases (including redemptions) of stock by publicly traded domestic (i.e., U.S.) corporations and certain domestic
subsidiaries of publicly traded foreign corporations. In connection with share redemptions that occurred in June 2024, the Company initially
recorded an excise tax liability of $913,742
under the Inflation Reduction Act of 2022 (“IRA”). During the year ended December 31, 2025, the Company reassessed the estimated
excise tax obligation based on additional share issuances during the period, which reduced the Company’s net excise tax obligation
under the IRA. Accordingly, the Company reduced the excise tax liability from $913,742
to $502,251.
No additional adjustments were recorded during the three and six months ended June 30,
2026. |
|