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RESTATEMENT OF PREVIOUSLY ISSUED COMBINED AND CONSOLIDATED FINANCIAL STATEMENTS
 12 Months Ended
Dec. 31, 2024
Accounting Changes and Error Corrections [Abstract]  
RESTATEMENT OF PREVIOUSLY ISSUED COMBINED AND CONSOLIDATED FINANCIAL STATEMENTS

NOTE 13 － RESTATEMENT OF PREVIOUSLY ISSUED COMBINED AND CONSOLIDATED FINANCIAL STATEMENTS

 

Change in accounting policy

 

Pursuant to the completion of NASDAQ listing as explained in Note 1 to the audited combined and consolidated financial statements, the Company decided to change the presentation currency of its financial statements from Singapore Dollars to United States Dollars.

 

The Board of Directors believe that United States Dollars financial reporting provides more relevant presentation of the Company’s financial position, financial performance and cash flows.

 

A change in presentation currency represents a change in accounting policy in terms of ASC Topic 250, Accounting Changes and Error Corrections (“ASC 250”), requiring the restatement of comparative information. In accordance with ASC 830, the methodology followed in restating historical financial information from SGD to US$.

 

The average and closing rates used in translating the historical financial information from SGD to US$1 for the various periods were as follows:

 

The closing rate used as at December 31, 2024 was $1.3662 and as at December 31, 2023 was $1.3193.

 

The average rate used for the year ended December 31, 2024 was $1.3363, for the year ended December 31, 2023 was $1.3428 and for the year ended December 31, 2022 was $1.3787.

 

The change in presentation currency is a voluntary change which is accounted for retrospectively. For the comparative reporting purposes, historical financial information has been translated to United States dollars which is disclosed in the tables below:

 

 

The following table summarizes the impact of the corrections on the combined balance sheet at December 31, 2023, and the combined statements of operations for the years ended December 31, 2022 and 2023:

 

       Foreign Currency Translation [Member]     
Balance sheet:  As of   Foreign   As of 

 

Change in presentation currency

  December 31,
2023		   Currency
Translation		   December 31,
2023		 
   Reported SGD       Reported US$ 
ASSETS               
Current assets:               
Cash and cash equivalents   1,802,469    (436,238)   1,366,231 
Accounts receivables, net   149,602    (36,207)   113,395 
Inventories, net   889,907    (215,378)   674,529 
Amounts due from related parties   505,716    (122,395)   383,321 
Amount due from former shareholder   730,300    (176,749)   553,551 
Deposit, prepayments and other receivables   909,738    (220,176)   689,562 
Total current assets   4,987,732    (1,207,143)   3,780,589 
                
Non-current assets:               
Plant and equipment, net   297,587    (72,022)   225,565 
Right-of-use assets, net   4,100,541    (989,504)   3,111,037 
Total non-current assets   4,398,128    (1,061,526)   3,336,602 
                
TOTAL ASSETS   9,385,860    (2,268,669)   7,117,191 
                
LIABILITIES AND SHAREHOLDERS’ EQUITY               
Current liabilities:               
Accounts payable   1,310,787    (317,240)   993,547 
Customer deposits   1,117,364    (270,427)   846,937 
Accrued liabilities and other payables   285,756    (69,160)   216,596 
Lease liabilities   1,632,192    (395,027)   1,237,165 
Total current liabilities   4,346,099    (1,051,854)   3,294,245 
                
Long-term liabilities:               
Other payables   125,083    (30,273)   94,810 
Lease liabilities   2,809,102    (679,865)   2,129,237 
Total long-term liabilities   2,934,185    (710,138)   2,224,047 
                
TOTAL LIABILITIES   7,280,284    (1,761,992)   5,518,292 
                
Commitments and contingencies   -    -    - 
                
Shareholders’ equity               
Ordinary share   1,747    (422)   1,325 
Additional paid-in capital   38,798,253    (10,101,353)   28,696,900 
Accumulated other comprehensive loss   (4,666,758)   1,265,109    (3,401,649)
Accumulated losses   (32,027,666)   8,329,989    (23,697,677)
Total shareholders’ equity   2,105,576    (506,677)   1,598,899 
                
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   9,385,860    (2,268,669)   7,117,191 

 

   Year ended   Foreign   Year ended 
Statement of operations  December 31,   Currency   December 31, 
Change in presentation currency  2022   Translation   2022 
   Reported SGD       Reported US$ 
             
Revenues, net   8,235,089    (2,262,006)   5,973,083 
Cost of goods sold   (3,116,993)   856,172    (2,260,821)
                
Gross profit   5,118,096    (1,405,834)   3,712,262 
                
Operating expenses:               
Sales and distribution expenses   (2,747,981)   754,813    (1,993,168)
General and administrative expenses   (1,345,886)   369,686    (976,200)
Total operating expenses   (4,093,867)   1,124,499    (2,969,368)
                
Income from operations   1,024,229    (281,335)   742,894 
                
Other income:               
Government subsidies   78,702    (21,618)   57,084 
Sundry income   20,334    (5,585)   14,749 
Total other income, net   99,036    (27,203)   71,833 
                
Income before income taxes   1,123,265    (308,538)   814,727 
                
Income tax expense   -    -    - 
                
NET INCOME   1,123,265    (308,538)   814,727 

 

 

   Year ended   Foreign   Year ended 
Statement of operations  December 31,   Currency   December 31, 
Change in presentation currency  2023   Translation   2023 
   Reported SGD       Reported US$ 
                
Revenues, net   6,811,111    (1,738,791)   5,072,320 
Cost of goods sold   (1,928,492)   492,320    (1,436,172)
                
Gross profit   4,882,619    (1,246,471)   3,636,148 
                
Operating expenses:               
Sales and distribution expenses   (3,078,543)   785,914    (2,292,629)
General and administrative expenses   (1,521,472)   388,412    (1,133,060)
Total operating expenses   (4,600,015)   1,174,326    (3,425,689)
                
Income from operations   282,604    (72,145)   210,459 
                
Other income:               
Interest income   8,234    (2,102)   6,132 
Government subsidies   11,500    (2,936)   8,564 
Sundry income   16,575    (4,231)   12,344 
Total other income, net   36,309    (9,269)   27,040 
                
Income before income taxes   318,913    (81,414)   237,499 
                
Income tax expense   -    -    - 
                
NET INCOME   318,913    (81,414)   237,499 

 

Reclassification of certain accounting captions

 

Subsequent to the issuance of the Company’s combined financial statements for the years ended December 31, 2022 and 2023, certain errors were identified in relation to the treatment and presentation of material components under “other income” caption. Based on the predominance principle in ASC 250, the Company has corrected and restated its statements of operations for the years ended December 31, 2022 and 2023, accordingly.

 

The following table summarizes the impact of the corrections on the combined statements of operations for the years ended December 31, 2022 and 2023:

 

   SGD   SGD   SGD 
   Year ended December 31, 2022 
   As Previously   Restatement     
   Reported   Adjustments   As Restated 
   SGD   SGD   SGD 
Operating expenses:               
Sales and distribution expenses   (2,747,981)   -    (2,747,981)
General and administrative expenses   (1,355,809)   9,923    (1,345,886)
Total operating expenses   (4,103,790)   9,923    (4,093,867)
               
Income from operations   1,014,306    9,923    1,024,229 
                
Other income:               
Government subsidies   -    78,702    78,702 
Sundry income   108,959    (88,625)   20,334 
Total other income, net   108,959    (9,923)   99,036 
                
Income before income taxes   1,123,265    -    1,123,265 

 

   SGD   SGD   SGD 
   Year ended December 31, 2023 
   As Previously   Restatement     
   Reported   Adjustments   As Restated 
   SGD   SGD   SGD 
Operating expenses:               
Sales and distribution expenses   (3,079,243)   700    (3,078,543)
General and administrative expenses   (1,598,960)   77,488    (1,521,472)
Total operating expenses   (4,678,203)   78,188    (4,600,015)
                
Income from operations   204,416    78,188    282,604 
                
Other income:               
Interest income   -    8,234    8,234 
Government subsidies   -    11,500    11,500 
Sundry income   114,497    (97,922)   16,575 
Total other income, net   114,497    (78,188)   36,309 
                
Income before income taxes   318,913    -    318,913