Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 202

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 5
Chunk 202
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 commissions. Selling and marketing expenses decreased by $45,632, or 43.3% to $59,841 for 2023 from $105,473 for 2022. The decrease was due mainly to reduction in freight and transportation fees.
 
General and Administrative Expenses
 
General and administrative expenses consist primarily of personnel costs for our accounting and administrative support personnel and executives as well as legal and professional fees, depreciation and amortization of non-production property and equipment. General and administrative expenses increased by $232,117, or 5.5%, to $4,440,314 for 2023 from $4,208,197 for 2022. This increase was due mainly to additional amortization on leasehold improvement and stock options granted to officers and employees of the company under the Company’s 2022 Omnibus Equity Plan (the “Equity Plan”).
Finance Costs
 
Finance costs decreased by $120,653, or 81.7%, to $26,935 for 2023 from $147,588 for 2022. The decrease was mainly due reduced interest payment for a short-term loan to a third party during 2023. During the years ended December 31, 2023 and 2022, interest expense for bank borrowings was $18,859 and $26,836, respectively.
Provision for Income Taxes
 
Provision for income tax was $56,237 in 2023, an increase of $56,237 from $nil for 2022.
 
Our PRC entity in 2023 and 2022 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%.
 
Net loss 
 
Net loss increased $1,845,615 to $3,501,518 for 2023 from $1,655,903 for 2022.
 
5B. Liquidity and Capital Resources
 
Liquidity and Capital Resources
 
We are a holding company incorporated in the Cayman Islands. We conduct our operations primarily through our subsidiaries in Hong Kong and China. As a result, our ability to pay dividends depends upon dividends paid by our subsidiaries. If our subsidiaries incur debt on their behalf in the future, the instruments governing their debt may restrict their ability to pay dividends to us. In addition, Xingfa is permitted to pay dividends in accordance with PRC accounting standards and regulations.