INCOME TAXES

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

13. INCOME TAXES

US Income Taxes

The components of income tax expense and the effective tax rates for the years ended December 31, 2024 and 2023 are as follows:

	Year Ended December 31,
	2024			2023
Current:
Federal	$	150,786		$	92,350
State		-			-
Total Current		150,786			92,350
Deferred:
Federal		(1,821,412	)		6,176,130
State		(342,691	)		(454,675	)
Total Deferred		(2,164,103	)		5,721,455
Valuation Allowance		2,164,103			(5,721,455	)
Total Income Tax Expense	$	150,786		$	92,350
Pre-tax Loss	$	(4,015,030	)	$	(61,186,383	)
Effective Income Tax Rate		-3.8	%		-0.2	%

A reconciliation of our income tax expense at federal statutory income tax rate of 21% to our income tax expense at the effective tax rate is as follows:

	Year Ended December 31,
	2024			2023
Federal Statutory Tax Rate		21.0	%		21.0	%
Capitalized Construction Costs		3.0	%		1.5	%
Deferred Finance Costs		-0.6	%		-4.0	%
Miscellaneous Permanent Items		-1.4	%		0.0	%
Non-Includible Foreign Entities Loss/(Income)		-27.4	%		-7.9	%
Valuation Allowance		1.6	%		-10.8	%
Effective Income Tax Rate		-3.8	%		-0.2	%

Deferred tax assets consist of the following at December 31, 2024 and 2023:

	2024			2023
Deferred Tax Assets:
Accrued Interest Expense	$	6,560,893		$	6,310,548
Accrued Expense		600,224			423,311
Accrued Other Income		1,596,154			145,017
Partnership Gain		13,175			13,175
Real Estate Impairment		114,432			729,312
Other Amortization		1,160,710			1,160,710
Unrealized Loss on Investment		10,351,184			9,856,139
Others		887,084			208,676
Net Operating Loss		1,096,627			2,846,999
Total Deferred Tax Assets:	$	22,380,483		$	21,693,887
Deferred Tax Liabilities:
Accrued Interest Income		(7,813,704	)		(7,148,090	)
Accumulated Depreciation and Amortization		(204,061	)		(204,192	)
Capitalized Costs		(2,185,216	)
Total Deferred Tax Assets:	$	(10,202,981	)	$	(7,352,282	)
Deferred Tax Assets / (Liabilities), Net		12,177,502			14,341,605
Less Valuation Allowance		(12,177,502	)		(14,341,605	)
Deferred Tax Asset c/f	$	-		$	-

As of December 31, 2024, the Company has Federal and State net operating loss carry-forwards of approximately $14.79 million and $5.12 million, respectively. The full utilization of the deferred tax assets in the future is dependent upon the Company’s ability to generate taxable income. Accordingly, a valuation allowance of an equal amount has been established. During the year ended December 31, 2024, the valuation allowance decreased by $2,164,103.

As of December 31, 2024, total tax payable is $115,335, including federal income tax payable of $147,558, and Maryland state income tax receivable of $32,223. As of December 31, 2023, total tax payable is $1,390, including federal income tax payable of $33,613, and Maryland state income tax receivable of $32,223.

We are subject to U.S. federal income tax as well as income tax of certain state jurisdictions. We have substantially concluded all U.S. federal income tax and state tax matters through 2020. However, our federal tax returns for the years 2021 through 2023 remain open to examination. State tax jurisdiction tax years remain open to examination as well, though we believe that any additional assessment would be immaterial to the Consolidated Financial Statements.

Income taxes – Other Countries

On December 31, 2024 and 2023, foreign subsidiaries have tax losses of approximately $1.4 million and $0.9 million, respectively, which are available for offset against future taxable profits, subject to the agreement of the tax authorities and compliance with the relevant provisions. The deferred tax assets arising from these tax losses have not been recognized because it is not probable that future taxable profits will be available to use these tax assets. The following charts show the details in different regions as of December 31, 2024 and 2023.

As of December 31, 2024:

	SG Companies			HK Companies			KR Companies			AU Companies			PRC Companies			TW Companies			MYS Companies			Total
Calculation:
Cumulative loss and other deferred tax assets before tax	$	(3,507,971	)	$	(2,227,364	)	$	(1,257,412	)	$	-		$	(446,024	)	$	(208,516	)	$	(3,947	)	$	7,651,234	)
Effective tax rates		17.00	%		16.50	%		25.00	%		30.00	%		25.00	%		25.00	%		17.00	%
Tax at the domestic tax rates applicable to profits in the countries where the Company operates	$	(596,355	)	$	(367,515	)	$	(314,353	)	$	-		$	(111,506	)	$	(52,129	)	$	(671	)	$	(1,442,529	)
Adjustments:
Deferred tax assets not recognized	$	596,355		$	367,515		$	314,353		$	-		$	111,506		$	52,129		$	671		$	1,442,529
Income tax expenses recognized in profit or loss	$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-

As of December 31, 2023:

	SG Companies			HK Companies			KR Companies			AU Companies			Total
Calculation:
Cumulative loss and other deferred tax assets before tax	$	(5,016,561	)	$	-		$	-		$	-		$	(5,016,561	)
Effective tax rates		17.00	%		16.50	%		25.00	%		30.00	%
Tax at the domestic tax rates applicable to profits in the countries where the Company operates	$	(852,815	)	$	-		$	-		$	-		$	(852,815	)
Adjustments:
Deferred tax assets not recognized	$	852,815		$	-		$	-		$	-		$	852,815
Income tax expenses recognized in profit or loss	$	-		$	-		$	-		$	-		$	-