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Income Tax
 12 Months Ended
Dec. 31, 2025
Income Tax [Abstract]  
Income tax
10.Income tax

 

The Company and its subsidiaries are subject to income taxes on an entity basis on income derived from the location in which each entity is domiciled.

 

The Company and its subsidiary, Everbright International, are domiciled in the Cayman Islands and the British Virgin Islands respectively. Both companies currently enjoy permanent income tax holidays; accordingly, both companies do not accrue for income taxes.

The Company’s operating subsidiary, Metaverse incorporated in Hong Kong is subject to an income tax rate of 8.25% for first HK$2,000,000 assessable profits and 16.5% for the assessable profits thereafter.

 

   Years ended December 31, 
Provision for income tax  2025   2024 
Current        
Hong Kong  $
—
   $151,155 
           
Deferred          
Hong Kong   (363,109)   (13,765)
Total  $(363,109)  $137,390 

 

Numerical reconciliation of income tax expenses to prima facie tax payable:

 

   Years ended December 31, 
   2025   %   2024   % 
(Loss) profit before income tax  $(2,609,287)        516,820      
                     
Tax effect at the Hong Kong profits tax rate of 16.5%  $(430,532)   16.5    85,275    16.5 
Tax effect of preferential tax rate   
—
    
—
    (21,100)   (4.1)
Tax effect of non-assessable income   (787)   0.0    (153)   0.0 
Tax effect of non-deductible expenses   68,210    (2.6)   73,560    14.2 
Tax effect of tax rebate   
—
    
—
    (192)   0.0 
                     
Total  $(363,109)   13.9    137,390    26.6 

 

There were no material unrecognized temporary differences and unsettled tax position.

 

The components of deferred tax assets (liabilities) their movements were as follows:

 

   PPE and leasehold improvement   Intangible
assets		   Allowance of expected credit loss   Tax loss   Total 
Balance as of January 1, 2024  $(942)  $(56,085)  $—   $
—
   $(57,027)
                          
Charged to statement of operations   (86)   13,851    —    
—
    13,765 
                          
Balance as of December 31, 2024  $(1,028)  $(42,234)  $—   $
—
   $(43,262)
                          
Charged to statement of operations   89,222    (138,351)   81,082    331,156    363,109 
Foreign exchange alignment   151    (448)   142    582    427 
                          
Balance as of December 31, 2025  $88,345    (181,033)  $81,224   $331,738    320,274