v3.26.3
Taxation
 6 Months Ended
Jun. 30, 2026
Taxation [Abstract]  
TAXATION
10. TAXATION

 

Cayman Islands

 

 The Company is incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to income or capital gains taxes. In addition, dividend payments are not subject to withholdings tax in the Cayman Islands.

 

Singapore

 

Trident Digital Tech Pte. Ltd. and Quality Zone Technologies Pte. Ltd. are located in Singapore and are subject to 17% statutory income tax rate with respect to the profit generated from Singapore.

 

DRC

 

Trident DRC is located in the “DRC” and is subject to a statutory corporate income tax rate of 30% on its taxable income.

 

Loss before income tax expense for the six months ended June 30, 2026 and 2025, is attributable to the following geographic locations:

 

    For the six months ended
June 30,		  
    2026     2025  
    USD     USD  
Singapore   $ (12,144,243 )   $ (4,415,133 )
Cayman     (384,095 )     (6,856,415 )
DRC     (284,229 )     -  
Total loss before income tax expense   $ (12,812,567 )   $ (11,271,548 )

 

The components of income tax expense/(benefit) are as follows:

 

    For the six months ended
June 30,		  
    2026     2025  
Current income tax expense            
Singapore   $ -     $ -  
Cayman     -       -  
DRC     -       -  
Total current income tax expense     -       -  
Deferred income tax benefit                
Singapore     -       -  
Cayman     -       -  
DRC     (85,269 )     -  
Total deferred income tax benefit     (85,269 )     -  
Total income tax expense/(benefit)                
Singapore     -       -  
Cayman     -       -  
DRC     (85,269 )     -  
Total income tax expense/(benefit)   $ (85,269 )   $ -  

 

The Group adopted Accounting Standards Update 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”) prospectively. The items accounting for the difference between income taxes computed at the Singapore statutory rate and our effective rate for the six months ended June 30, 2026 and 2025, pursuant to the requirements of ASU 2023-09, were as follows:

 

    For the six months ended June 30,  
    2026     2025  
    USD     %     USD     %  
Loss before income taxes   $ (12,812,567 )           $ (11,271,548 )        
Singapore statutory tax rate     17 %             17 %        
Income tax expenses computed at statutory EIT rate     (2,178,136 )     17.0 %     (1,916,163 )     17.0 %
Foreign tax effects:                                
Cayman:                                
Statutory tax rate difference     65,296       (0.5 )%     1,165,590       (10.3 )%
DRC:                                
Statutory tax rate difference     (36,950 )     0.3 %     -       0.0 %
Non-deductible expenses     1,258,857       (9.8 )%     3,605       0.0 %
Change in valuation allowance     805,664       (6.3 )%     746,968       (6.7 )%
Income tax expenses/(benefits)   $ (85,269 )     0.7 %   $ -       0.0 %

 

As of June 30, 2026 and December 31, 2025, the significant components of the deferred tax assets are summarized below:

 

    As of
June 30,		     As of
December 31,		  
    2026     2025  
Deferred tax assets:            
Net operating loss carried forward   $ 5,714,181     $ 4,869,609  
Lease liabilities     148,854       204,193  
Deferred revenue     80,129       67,821  
Bad debt provision     1,265       1,273  
Property and equipment     5,081       5,114  
Long-term investment     565,250       565,250  
Derivative liability     23,862       281,758  
Deferred tax assets, gross     6,538,622       5,995,018  
Valuation allowance     (5,990,197 )     (5,227,971 )
Deferred tax assets, net of valuation allowance     548,425       767,047  
                 
Deferred tax liabilities:                
Right-of-use assets     (148,854 )     (198,193 )
Contract cost assets     (33,816 )     (27,643 )
Property and equipment     (307 )     (309 )
Convertible notes payable     (191,246 )     (451,969 )
Deferred tax liabilities     (374,223 )     (678,114 )
                 
Net deferred tax assets   $ 174,202     $ 88,933  

 

The roll forward of valuation allowances of deferred tax assets were as follows:

 

    As of
June 30,		     As of
December 31,		  
    2026     2025  
Balance as of beginning of period / year   $ 5,227,971     $ 2,297,022  
Additions of valuation allowance     805,664       2,745,227  
Foreign currency translation adjustments     (43,438 )     185,722  
Balance as of end of period / year   $ 5,990,197     $ 5,227,971  

  

As of June 30, 2026, net operating loss carryforwards will expire, if unused, in the following amounts:

 

For the years ending December 31,   Amount  
2028(1)   $ 276,443  
2029(2)     304,229  
Indefinitely(3)     33,010,612  
Total   $ 33,591,284  

 

(1) Represents net operating loss carryforwards generated by the Group’s subsidiary in the DRC. In accordance with the applicable DRC tax regulations, net operating losses can be carried forward for up to three years to offset future taxable income and will expire in 2028 if not utilized.
   
(2) Represents net operating loss carryforwards generated by the Group’s subsidiary in the DRC. In accordance with the applicable DRC tax regulations, net operating losses can be carried forward for up to three years to offset future taxable income and will expire in 2029 if not utilized.

 

(3) Represents net operating loss carryforwards from the Group’s Singapore subsidiaries, which can be carried forward indefinitely to offset future taxable income, subject to statutory shareholding continuity requirements.

 

Uncertain tax positions

 

The Group evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of June 30, 2026 and December 31, 2025, the Group did not have any significant unrecognized uncertain tax positions. The Group did not incur interest and penalties tax for six months ended June 30, 2026 and 2025. As of June 30, 2026, the tax years ended December 31, 2019 to 2025 for the Group’s Singapore subsidiaries and the tax year ended December 31, 2025 for the Group’s Democratic Republic of the Congo (“DRC”) subsidiary, remain open for statutory examination by applicable tax authorities.