Company: QSJC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006089
Chunk: 10

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 10
---
 adjustment to tax payable
with respect to previous periods.

The Company accounts for income taxes using the
asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the
financial reporting and tax basis of assets and liabilities, net of operating loss carry forwards and credits, by applying enacted tax
rates that will be in effect for the period in which the differences are expected to reverse. The effect on deferred taxes of a change
in tax rates is recognized in the statements of operations in the period of change.

The Company accounts for uncertain tax positions
by reporting liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return.
Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position
will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest
and penalties if any, related to unrecognized tax benefits in income tax expenses.

(l) Comprehensive Income or Loss

Comprehensive income or loss includes net income
and foreign currency translation adjustments. Comprehensive income or loss is reported in the statements of comprehensive income or loss.

(m) Concentration of Credit Risk

Financial instruments that potentially expose
the Company to a significant concentration of credit risk consist primarily of cash and cash equivalents and other receivables. As of
June 30, 2025 and December 31, 2024, substantially all of the Company’s cash and cash equivalents were deposited with financial
institutions with high-credit ratings and quality. During the three and six months ended June 30, 2025, revenue amounting to $7,824 and
$54,008 was generated from third parties; and $11,273 and $109,822 was generated from a related party (Note 6), respectively. During the
three and six months ended June 30, 2024, all revenue was generated from third parties.

     10 

Details of customer who accounted for 10% or more
of the Company’s total revenue for the three and six months ended June 30, 2025 and 2024 are as follows:

    Schedule of revenue concentration 

    For the three months ended June 30, 

    2025  
    2024 

    Amount  
    % of total revenue  
    Amount  
    % of total revenue 
  
    Customer A 
    $–  
     –