Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 105

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 105
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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%.

  64  

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

                                                                                   For the years ended                                                                                   
                                                                                   December 31,                                                                                          
                                                                                   2023                                     2022                      Change                             
                                                                                   USD                                      USD                       USD                                
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Selected Consolidated Statements of Operations and Comprehensive Loss Data:                                                                                                            
  Revenues                                                                         $                         6,443,357      $         12,158,102      $           (5,714,745      (47.0  
  Cost of goods sold                                                                                        (5,464,591                (9,961,988                   4,497,397      (45.1  
  Cost of goods sold – idle capacity                                                                          (345,424                         —                           —          —  
  Gross profit                                                                                                 633,342                 2,196,114                  (1,562,772      (71.2  
  Selling and marketing                                                                                        (59,841                  (105,473                      45,632      (43.3  
  General and administrative                                                                                (4,440,314                (4,208,197                    (232,117        5.5  
  Finance costs                                                                                                (26,935                  (147,588