Company: IVHI
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001683168-25-001303
Chunk: 306

Company: Invech Holdings, Inc.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7A
Chunk 306
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oted market prices available in active
markets for identical assets or liabilities as of the reporting date.

Level 2: Pricing inputs other than quoted prices
in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.

Level 3: Pricing inputs that are generally unobservable
inputs and not corroborated by market data.

The carrying amount of the Company’s financial
assets and liabilities, such as cash and accrued expenses, approximate their fair value because of the short maturity of those instruments.
The Company’s related party debt approximates the fair value of such instruments based upon management’s best estimate of
interest rates that would be available to the Company for similar financial arrangements at December 31, 2024 and 2023.

Income Taxes

The Company follows Section 740-10-30 of the FASB
Accounting Standards Codification, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences
of events that have been included in the consolidated financial statements or tax returns. Under this method, deferred tax assets and
liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates
in effect for the fiscal year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance
to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities
are measured using enacted tax rates expected to apply to taxable income in the fiscal years in which those temporary differences are
expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Statements
of Income in the period that includes the enactment date.

The Company follows section 740-10-25 of the FASB
Accounting Standards Codification (“Section 740-10-25”) with regards to uncertainty income taxes. Section 740-10-25 addresses
the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the consolidated financial
statements. Under Section 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely
than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position.
The tax benefits recognized in the consolidated financial statements from such a position should be measured based on the largest benefit
that has a greater than fifty percent (50%) likelihood of