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Income tax

12 Months Ended

Dec. 31, 2025

Notes and other explanatory information [abstract]

26. Income tax

a) Components of income tax expense (credit):

	Year ended December 31, 2025		Year ended December 31, 2024			Year ended December 31, 2023
Current income tax:
Current income tax on (loss) profit for the year	$	2,966	$	13,208		$	3
Tax on unappropriated retained earnings		-		-			1,377
Prior year income tax under provision		595		519			19,588
Total current income tax		3,561		13,727			20,968
Deferred income tax:
Effect of temporary differences		1,905		(8,215	)		(404,016	)
Income tax expense (credit)	$	5,466	$	5,512		$	(383,048	)

Tax expenses were computed based on the rates applicable in the respective countries where the Group entities operate.

b) Reconciliation between income tax expense and accounting profit:

	Year ended December 31, 2025			Year ended December 31, 2024			Year ended December 31, 2023
Tax calculated based on profit before tax and statutory tax rate	$	16,650		$	11,467		$	28,055
Effects from adjustments based on tax regulation		(13,684	)		(7,182	)		-
Change in assessment of realization of deferred tax assets		1,905			-			(432,068	)
Prior year income tax under provision		595			519			19,588
Tax on unappropriated retained earnings		-			-			1,377
others		-			708			-
Income tax expense (credit)	$	5,466		$	5,512		$	(383,048	)

c) Amounts of deferred tax assets or liabilities as a result of temporary differences and tax losses are as follows:

	As of
	January 1,2025			(Reversal) recognized in profit or loss			Effect of foreign exchange rate changes			December 31, 2025
Deferred tax assets
Allowance for expected credit loss	$	-		$	(36	)	$	72		$	36
Loss on inventories		2,637			(594	)		114			2,157
Unused vacation bonus		4,791			1,669			218			6,678
Unused tax losses		426,372			12,930			(23,073	)		416,229
	$	433,800		$	13,969		$	(22,669	)	$	425,100

Deferred tax liabilities
Unrealized exchange gain	$	(10,982	)	$	7,293		$	(498	)	$	(4,187	)

	As of
	January 1, 2024			Recognized in profit or loss			Effect of foreign exchange rate changes			December 31, 2024
Deferred tax assets
Allowance for expected credit loss	$	3,085		$	(2,939	)	$	(146	)	$	-
Loss on inventories		467			2,202			(32	)		2,637
Unused vacation bonus		3,741			1,244			(194	)		4,791
Unused tax losses		432,068			(711	)		(4,985	)		426,372
	$	439,361		$	(204	)	$	(5,357	)	$	433,800

Deferred tax liabilities
Unrealized exchange gain	$	(20,405	)	$	8,419		$	1,004		$	(10,982	)

The Group has assessed the recoverability of deferred tax assets, including unused tax losses, based on projected future taxable profits. Management believes that sufficient taxable profits will be available in the foreseeable future to utilize these tax losses, and therefore no valuation allowance has been recognized.

d) Tax losses incurrence and expiration date, deferred tax assets filed and unused amounts, are as follows:

2025
Year incurred		Amount filed		Unused amount	Expiry year
2019	$	330,450		273,117	no limit
2021		21,908		21,908	no limit
2023		24,547		24,547	no limit
2023		110,855		98,407	2033
	$	487,760	$	417,979

2024
Year incurred	Amount filed		Unused amount		Expiry year
2019	$	329,916	$	273,938	no limit
2021		21,873		21,873	no limit
2023		24,507		24,507	no limit
2023		106,054		106,054	2033(Unapproved)
	$	482,350	$	426,372

e) The Company’s foreign subsidiaries file income tax returns in the countries where their operations are located. Recent income tax returns were submitted in Taiwan (2024), Hong Kong (2024), and China (2024).

f) The Group principally operates business in Taiwan, Hong Kong and China. The tax rate for above countries was 20%, 8.25% and 25%, respectively.