Company: NTCL
Filing Date: 2025-10-20
Form Type: F-1
Source: 0001104659-25-100526
Chunk: 299

Company: NetClass Technology Inc
Filing Date: 2025-10-20
Form: F-1
Chunk 299
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 ​ |       ​ 
    2022 |
|:-----------------------------------------|:--|:--|--------:|:--|:--|---------:|:--|:--|--------:|
| Beginning balance                        | ​ | $ |  21,910 | ​ | $ |  133,333 | ​ | $ | 178,259 |
| Additions                                | ​ |   | 192,863 | ​ |   |      257 | ​ |   |      37 |
| Reversals                                | ​ |   |  -5,111 | ​ |   | -112,043 | ​ |   | -30,597 |
| Foreign currency translation adjustments | ​ |   |   5,864 | ​ |   |      363 | ​ |   | -14,366 |
| Ending balance                           | ​ | $ | 215,526 | ​ | $ |   21,910 | ​ | $ | 133,333 |

F-25

NOTE 8 — TAXES (Continued)

According to PRC tax regulations, the PRC net operating loss can generally carry forward for starting from the year subsequent to the year in which the loss was incurred, and that of high-tech enterprises is no more than . Carryback of losses is not permitted. As of September 30, 2024 and 2023, the Company had net operating losses of $ and $, respectively, which will be available to offset future taxable income. If not used, these carryforwards will expire from 2024 through 2033.

The realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Recovery of substantially all of the Company’s deferred tax assets is dependent upon the generation of future income, exclusive of reversing taxable temporary differences. The valuation allowance is considered on an individual entity basis. As of September 30, 2024 and 2023, valuation allowances on deferred tax assets are provided because the Company believes that it is more-likely-than-not that certain of the subsidiaries in the PRC will not be able to generate sufficient taxable income in the near future, to realize the deferred tax assets carried-forwards. For the remaining entities, with the spread of the COVID-19 in PRC appeared to be under control, and those remaining PRC operating entities have been gradually recovered from the 2022 Outbreak, based upon the level of historical taxable income and projections for future