Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 200

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 5
Chunk 200
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 increase in research in Thailand and Southern East Asia market, and (ii) increase in freight and transportation fees which in line with increase of units sold.
 
General and Administrative Expenses
 
General and administrative expenses consist primarily of personnel costs for our accounting and administrative support personnel and executives as well as legal and professional fees, depreciation and amortization of non-production property and equipment. General and administrative expenses decreased by $1,036,411, or 23.3%, to $3,403,903 for 2024 from $4,440,314 for 2023. This decrease was mainly due to reduction of $373,375 in professional fees and $667,016 in stock options to officers and employees of the Company granted in 2023 under the Company’s 2022 Omnibus Equity Plan.
Research and Development Expenses
 
R&D Expenses were $649,753 and nil year ended December 31, 2024 and 2023. This increase was mainly due to development on smart locks, the Internet of Things (IoT) applications, plus some spending for AI production.
 
The Company picked and launched certain smart lock designs for sample production and have shipped them to the United State with a plan to sell them on e-commerce websites during the first half of 2025. We will continue to upgrade the new designs for smart lock with IoT functions.
 
Finance Costs
 
Finance costs decreased by $1,011, or 4.1%, to $25,834 for 2024 from $26,935 for 2023. The decrease was mainly due decreased interest expense for bank borrowings during the 2024. During 2024 and 2023, interest expense for bank borrowings was $16,559 and $18,859, respectively.
Provision for Income Taxes
 
Provision for income tax was $83,214 in 2024, an increase of $26,977 from $56,237 for 2023.
 
Our PRC entity in 2024 and 2023 was subject to the statutory PRC enterprise income tax rate of 25.0%. Our subsidiaries in Hong Kong are subject to Hong Kong taxation on income derived from their activities conducted in Hong Kong at a rate of 16.5%.

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Net loss 
 
Net loss increased $188,769 to $3,690,287 for 2024 from $3,501,518 for 2023.
 
For the years ended December 31, 2023 and 2022