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Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Note 11 — Income taxes

The source of pre-tax income and the components of income tax expense are as follows:

​

​	​	​	​	​	​	​
​	​	For the Years Ended
​	​	December 31,
​		2023			2022
​	​	USD		​	USD
Income components	​	​	​	​	​	​
United States	​	$	(681,951)	​	$	991,240
Outside United States	​		2,069,739	​		3,549,310
Total pre-tax income	​	$	1,387,788	​	$	4,540,550
Provision for income taxes	​			​
Current	​			​
Federal	​	$	27,451	​	$	54,504
State	​		13,555	​		9,923
Foreign	​		670,512	​		594,267
​	​		711,518	​		658,694
Deferred	​			​
Federal	​		24,622	​		146,843
State	​		92,271	​		52,034
Foreign	​		(20,187)	​		3,059
​	​		96,706	​		201,936
Total provision for income taxes	​	$	808,224	​	$	860,630

​

Reconciliations between taxes at the U.S. federal income tax rate and taxes at the Company’s effective income tax rate on earnings before income taxes are as follows:

​

​	​	​	​	​	​	​
​	​	For the Years Ended
​	​	December 31,
​	​	2023		​	2022
Federal statutory rate	​	21.0	%	​	21.0	%
(Decrease) increase in tax rate resulting from:	​			​		​
State and local income taxes, net of federal benefit	​	(0.5)		​	1.0	​
Foreign operations	​	15.1		​	(3.3)	​
Permanent items	​	3.1		​	0.1	​
Deferred adjustments	​	16.8		​	—	​
Others	​	2.7		​	0.1	​
Effective tax rate	​	58.2	%	​	18.9	%

​

The following is a summary of the components of the net deferred tax assets and liabilities recognized in the consolidated balance sheets:

​

​	​	​	​	​	​	​
​		As of			As of
​	​	December 31, 2023		​	December 31, 2022
​	​	USD		​	USD
​	​	​		​	​
Deferred tax assets		​			​
Allowance for credit losses	​	$	58,476	​	$	109,713
Other reserve	​		61,371	​		144,333
Accrued expenses	​		143,823	​		126,992
Lease liability	​		1,769,328	​		2,144,348
Charitable contributions	​		8,181	​		8,565
Business interest limitation	​		242,862	​		385,069
Net operating loss – federal	​		310,099	​		414,905
Net operating loss – state	​		27,337	​		75,863
Other	​		66,063	​		46,005
Total deferred tax assets	​		2,687,540	​		3,455,793
Less: valuation allowance	​		—	​		—
Net deferred tax assets	​		2,687,540	​		3,455,793
Deferred tax liabilities	​			​
Fixed assets	​		1,728,364	​		2,190,254
Intangibles	​		(209,657)	​		—
Total deferred tax liabilities	​		1,518,707	​		2,190,254
Deferred tax assets, net of deferred tax liabilities	​	$	1,168,833	​	$	1,265,539

​

The deferred tax assets related to the Company’s net operating losses of $1,836,077 (Federal $1,476,655 and States $359,422) and $3,174,799 (Federal $1,975,734 and States $1,199,065) as of December 31, 2023 and 2022, respectively. The Federal Net Operating losses have no expiration date. The States Net Operating losses have either 20 years or no expiration date. The Company had no material unrecognized tax benefits at December 31, 2023, 2022. The Company has not taken any tax positions for which it is reasonably possible that unrecognized tax benefits will significantly increase within the next 12 months.

​

Inflation Reduction Act of 2022

On August 16, 2022, the Inflation Reduction Act of 2022 (the “IR Act”) was signed into federal law. The IR Act provides for, among other things, a new U.S. federal 1% excise tax on certain repurchases of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of publicly traded foreign corporations occurring on or after January 1, 2023. The excise tax is imposed on the repurchasing corporation itself, not its shareholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase. However, for purposes of calculating the excise tax, repurchasing corporations are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the same taxable year. In addition, certain exceptions apply to the excise tax. The U.S. Department of the Treasury (the “Treasury”) has been given authority to provide regulations and other guidance to carry out and prevent the abuse or avoidance of the excise tax. There was no material impact of the IR Act on the Company’s consolidated financial statements.

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- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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