Company: IDVV
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001683168-25-006029
Chunk: 120

Company: ModuLink Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 2
Chunk 120
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 efficiency.

General and administrative expenses (“G&A
expenses”)

General and administrative
expenses were $560,465 for the six months ended June 30, 2025, compared to $15,594 for the same periods in 2024. These expenses primarily
include advertising and marketing expenses, business development, professional and consultancy fees, personnel related expenses, as well
as costs incurred in connection with general operations of the Company. The significant increase in general and administrative expenses
during the current period was primarily driven by the continued expansion of our subsidiaries, which resulted in higher operational and
staffing costs. Additionally, the Company incurred substantial professional fees related to the business combination process, including
legal, advisory, and due diligence expenses. These investments reflect the Company’s strategic efforts to support growth initiatives
and strengthen its operational infrastructure.

Income Tax Expense

We incurred income tax expense
of $8,822 and $1,809 during the six months ended June 30, 2025 and 2024, respectively. The Company’s subsidiaries operating in Hong
Kong are subject to the Hong Kong Profits Tax at the two-tiered profits tax rates from 8.25% to 16.5% on the estimated assessable profits
derived during the current period, after deducting a tax concession for the tax year.

Other expenses, net

This amount represents promissory
note interest payable to our noteholders, net of bank and loan interest income earned during the period. The increase was primarily attributable
to a higher level of outstanding promissory notes during the six months ended June 30, 2024.

Net loss

As a result of the above factors,
the Company incurred a net loss of $479,227 and $11,516 for the six months ended June 30, 2025 and 2024, respectively.

Liquidity and Capital Resources

The following summarizes the
key component of our cash flows for the six months ended June 30, 2025 and 2024.

    Six months ended  June 30 

    2025  
    2024 
  
    Net cash (used in) /provided by operating activities 
    $(1,040,689) 
    $12,769 
  
    Net cash used in investing activities 
    $(5,073) 
    $– 
  
    Net cash provided by financing activities 
    $1,065,539  
    $128,212 
  
    Net