Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

DEFERRED TAX ASSETS AND LIABILITIES

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DEFERRED TAX ASSETS AND LIABILITIES
 12 Months Ended
Dec. 31, 2023
Notes and other explanatory information [abstract]  
DEFERRED TAX ASSETS AND LIABILITIES

NOTE 15 — DEFERRED TAX ASSETS AND LIABILITIES

 

Deferred tax assets and (liabilities) as of December 31, 2023 and 2022 and the related activity for the years ended December 31, 2023 and 2022 are as follows:

 

    Carrying amount as of
December 31,
2022		     Recognized in
equity		     Recognized in
Provision for
Income Taxes		     Carrying amount as of
December 31,
2023		  
Non-current assets:                                
Intangible Assets   $ (3,901,425 )   $ -     $ 597,954     $ (3,303,471 )
Property and equipment     (87,695 )     795,115       (111,509 )     595,911  
Other     (2,240 )     —       9,173       6,933  
      (3,991,360 )     795,115       495,618       (2,700,627 )
                                 
Current assets:                                
Prepaid expenses     —       —       333,551       333,551  
Other (Section 24C allowance)     134,390       —       851,977       986,367  
      134,390       —       1,185,528       1,319,918  
                                 
Current liabilities:                                
Income in Advance     365,377       (33,663 )     76,492       408,206  
Tax Losses     100,464       (761,452 )     (646,832 )     (1,307,820 )
Net deferred tax assets and (liabilities)   $ (3,391,129 )   $ -     $ 1,110,806     $ (2,280,323 )

 

    Carrying amount as of
December 31,
2021		     Recognized in
Business
Combination		     Recognized in
Provision for
Income Taxes		     Carrying amount as of
December 31,
2022		  
Non-current assets:                                
Intangible Assets   $ -     $ (4,425,990 )   $ 524,565     $ (3,901,425 )
Property and equipment     (883,075 )     (341,825 )     1,137,205       (87,695 )
Other     -       —       (2,240 )     (2,240 )
      (883,075 )     (4,767,815 )     1,659,530       (3,991,360 )
                                 
Current assets:                                
Prepaid expenses     (17,195 )     —       17,195       —  
Other (Section 24C allowance)     50,019       799,647       (715,276 )     134,390  
      32,824       799,647       (698,081 )     134,390  
                                 
Current liabilities:                                
Income in Advance     127,129       —       238,248       365,377  
Tax Losses     —       15,995       84,469       100,464  
Net deferred tax assets and (liabilities)   $ (723,122 )   $ (3,952,173 )   $ 1,284,166     $ (3,391,129 )

 

 

Unused tax losses for which no deferred tax assets have been recognized as of December 31, 2023 and 2022 are as follows:

  

    2023     2022  
    As of December 31,  
    2023     2022  
             
Unused tax losses for which no deferred tax assets has been recognized   $ (43,402,517 )   $ (29,195,914 )
Potential tax benefit of such unused tax losses at applicable statutory tax rates   $ (7,722,631 )   $ (6,338,526 )

 

Management has evaluated and concluded that there were no material uncertain tax positions requiring recognition in the Group’s consolidated financial statements as of December 31, 2023 and 2022.

 

No tax audits were commenced or were in process during the years ended December 31, 2023 and 2022 and no tax related interest or penalties were incurred during those years.

 

The following jurisdictions and tax years are open to audit:

 

Jurisdiction   Open Tax Years
Indonesia   2019 - 2023
New Zealand   2020 - 2023
Singapore   2020 - 2023
South Africa   2020 - 2023
United Kingdom   2022
United States   2021 - 2023