XML 44 R21.htm IDEA: XBRL DOCUMENT
v3.25.4

Income Taxes | 12 Months Ended
--- | ---
Sep. 30, 2025
Income Taxes [Abstract] |
Income Taxes | Note 14 – Income Taxes Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholding tax will be imposed. USA GTI US Corp is incorporated in the United States and is subject to a federal tax rate of 21%. GTI US Corp is still dormant as of September 30, 2025. Malaysia The Company’s subsidiary Graphjet was incorporated in Malaysia and is subject to Malaysian Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Malaysian tax laws. The applicable tax rate is 24% in Malaysia. Graphjet Technology had sales of its products during the year, but no tax provision was recorded as current year statutory income was utilized against brought forward business losses. The Company’s tax provision was zero for the year ended 2024. As of September 30, 2025 and 2024, the Company’s deferred tax asset had a full valuation allowance recorded against it. The effective tax rate for the years ended September 30, 2025 and 2024 was 0%. The components of the Company’s income tax provision were as follows for the period indicated:
|  | For the Year Ended September 30, |  |  | For the Year Ended September 30, |
|  | 2025 |  |  | 2024 |
Current |  | $ | — |  |  | $ | — |
Deferred |  |  | — |  |  |  | — |
Total income tax provision |  | $ | — |  |  | $ | — |
The following table reconciles Malaysia statutory rates to the Company’s effective tax rate:
|  | For the Year Ended September 30, 2025 |  |  | For the Year Ended September 30, 2024 |
Malaysia income tax rate |  |  | 24.0 | % |  |  | 24.0 | %
Change in valuation allowance |  |  | (24.0 | )% |  |  | (24.0 | )%
Effective tax rate |  |  | — | % |  |  | — | %
The following table sets forth the significant components of the aggregate deferred tax assets and liabilities of the Company as of:
|  | September 30, 2025 |  |  | September 30, 2024 |
Deferred Tax Assets: |  |  |  |  |  |
Net operating loss carry-forwards |  |  | 4,406,475 |  |  | $ | 4,406,475 |
Capital allowances |  |  | 184,526 |  |  |  | 105,298 |
Amount disregarded due to substantial change in shareholding |  |  | (281,826 | ) |  |  | — |
Current year statutory income utilized against brought forward business losses |  |  | (1,066,424 | ) |  |  | — |
Less: |  |  |  |  |  |  |  |
Valuation allowance |  |  | (3,242,751 | ) |  |  | (4,511,773 | )
Deferred tax assets, net |  |  | — |  |  |  | — |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Capitalized R&D expenses |  |  | — |  |  |  | — |
Deferred tax (liabilities) assets, net |  | $ | — |  |  | $ | — |
Movement of valuation allowance:
|  | September 30, 2025 |  |  | September 30, 2024 |
Balance at beginning of the year |  | $ | 4,511,773 |  |  | $ | 281,826 |
Amount disregarded due to substantial change in shareholding |  |  | (281,826 | ) |  |  | — |
Current year statutory income utilized against brought forward business losses |  |  | (1,066,424 | ) |  |  | — |
Addition |  |  | 79,228 |  |  |  | 4,229,947 |
Balance at end of the year |  | $ | 3,242,751 |  |  | $ | 4,511,773 |
As of September 30, 2025 and 2024, the Company had net operating losses carry forward of approximately $13.3 million and approximately $18.3 million, respectively, from the Company’s Malaysian subsidiary, which can be carried forward to offset taxable income. The net operating losses from the Malaysia subsidiary can be carried forward 10 years. Valuation allowance is provided against deferred tax assets when the Company determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Company considered factors including future taxable income exclusive of reversing temporary differences and tax loss carry forwards. If events occur in the future that allow the Company to realize part or all of its deferred income tax, an adjustment to the valuation allowances will result in a decrease in tax expense when those events occur. During the year, the Company’s Malaysia subsidiary was disallowed from carrying forward unabsorbed tax losses and capital allowances approximately $0.3 million incurred prior to 2024. These amounts are disregarded due to a substantial change in shareholding in 2024, when total ownership shifted from individual shareholders to a corporate shareholder. Although the total issued shares remained unchanged, the change in shareholder composition triggered restrictions under Malaysian tax law. As a result, the brought-forward losses and allowances are not available to offset future taxable income. The Company has reflected this disallowance in its consolidated financial statements by derecognizing the related deferred tax assets. Due to the limited operating history of the Malaysian subsidiary, the Company is uncertain when these net operating losses can be utilized. As a result, the Company provided a 100% allowance on deferred tax assets on net operating losses of approximately $3.2 million and $4.5 million related to Malaysian subsidiary as of September 30, 2025 and 2024, respectively. Uncertain tax positions The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. As of September 30, 2025 and 2024, the Company did not have any significant unrecognized uncertain tax positions. The Company did not incur interest and penalties tax for the years ended September 30, 2025 and 2024.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477617/942-740-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478822/944-740-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 5: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration