{"url_path":"/sec/ineo/10-k/2026/item-18","section_key":"item-18","section_title":"Item 18 FINANCIAL STATEMENTS**","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1933951/0001493152-26-023663-index.html","accession_number":"0001493152-26-023663","cik":"0001933951","ticker":"INEO","issuer_name":"INNEOVA Holdings Ltd","edgar_url":"https://www.sec.gov/Archives/edgar/data/1933951/0001493152-26-023663-index.html","primary_entity_key":"0001933951","primary_entity_name":"INNEOVA Holdings Ltd"},"word_count":13100,"has_tables":true,"body_markdown":"**ITEM\n18. FINANCIAL STATEMENTS**\n\n \n\nThe\nfollowing Financial Statements are filed as part of this Annual Report:\n\n \n\n76\n\n \n\n \n\n**INDEX\nTO INNEOVA HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS**\n\n \n\n \n**PAGE**\n\n \n \n\n[Report of Independent Registered Public Accounting Firm (PCAOB ID: 6781 and 3487)](#sq_001)\nF-2\n\n \n \n\n[Consolidated Balance Sheets as of December 31, 2025 and 2024](#sq_002)\nF-4\n\n \n \n\n[Consolidated Statements of Operations and Comprehensive Income for the Financial Years Ended December 31, 2025, 2024 and 2023](#sq_003)\nF-5\n\n \n \n\n[Consolidated Statements of Changes in Shareholders’ Equity for the Financial Years Ended December 31, 2025, 2024 and 2023](#sq_004)\nF-6\n\n \n \n\n[Consolidated Statements of Cash Flows for the Financial Years Ended December 31, 2025, 2024 and 2023](#sq_005)\nF-7\n\n \n \n\n[Notes to Consolidated Financial Statements](#sq_006)\nF-8\n\n \n\nF-1\n\n \n\n \n\n**REPORT\nOF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**\n\n \n\nTo\nThe Shareholders and Board of Directors of INNEOVA Holdings Limited\n\n \n\n**Opinion\non the Financial Statements**\n\n \n\nWe\nhave audited the accompanying consolidated balance sheet of INNEOVA Holdings Limited and subsidiaries (collectively referred to as\nthe “Company”) as of December 31, 2025, the related consolidated statements of operations and comprehensive income,\nchanges in shareholders’ equity and cash flows for the financial year ended December 31, 2025 and the related notes (collectively referred to as the “financial statements”).\n\n \n\nIn\nour opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company\nas of December 31, 2025, and the results of its operations and its cash flows for the financial year ended December 31, 2025, in\nconformity with accounting principles generally accepted in the United States of America.\n\n \n\nWe\nalso have audited the adjustments to the 2024 and 2023 financial statements to retrospectively furnish comparative information\nrelated to the transactions under common control, as described in Note 1. In our opinion, such adjustments are appropriate and have\nbeen properly applied. We were not engaged to audit, review, or apply any procedures to the 2024 and 2023 financial statements of\nthe Company other than with respect to the adjustments and, accordingly, we do not express an opinion or any other form of assurance\non the 2024 and 2023 financial statements taken as a whole. The previously issued financial statements of the Company as of December\n31, 2024, were audited by other auditors whose report dated May 14, 2025, expressed an unqualified opinion on those\nstatements.\n\n \n\n**Basis\nfor Opinion**\n\n \n\nThese\nfinancial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s\nfinancial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board\n(United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal\nsecurities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\n \n\nWe\nconducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain\nreasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company\nis not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits,\nwe are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion\non the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.\n\n \n\nOur\naudits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error\nor fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding\nthe amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant\nestimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits\nprovide a reasonable basis for our opinion.\n\n \n\n*/s/\nYCM CPA INC.*\n\n \n\nWe\nhave served as the Company’s auditor since 2025.\n\nPCAOB\nID 6781\n\nIrvine,\nCalifornia\n\nMay\n15, 2026\n\n \n\nF-2\n\n \n\n \n\n**REPORT\nOF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**\n\n \n\nTo\nThe Shareholders and Board of Directors of\n\n \n\n**INNEOVA\nHOLDINGS LIMITED AND SUBSIDIARIES**\n\n \n\n*Opinion\non the Financial Statements*\n\n \n\nWe\nhave audited the accompanying consolidated balance sheets of INNEOVA Holdings Limited and Subsidiaries (collectively referred to as\nthe “Company”) as of December 31, 2024 and 2023, the related consolidated statements of operations and comprehensive\nincome, changes in shareholders’ equity and cash flows for each of the financial years in the three-year period ended December\n31, 2024 and the related notes to the financial statements and schedule (collectively referred to as the “financial\nstatements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the\nCompany as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the financial years in\nthe three-year period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of\nAmerica.\n\n \n\n*Basis\nfor Opinion*\n\n \n\nThese\nfinancial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s\nfinancial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board\n(United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal\nsecurities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\n \n\nWe\nconducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain\nreasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company\nis not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit,\nwe are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion\non the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.\n\n \n\nOur\naudit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or\nfraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding\nthe amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant\nestimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provide\na reasonable basis for our opinion.\n\n \n\n*/s/\nAudit Alliance LLP*\n\nSingapore\n\n \n\nWe\nhave served as the Company’s auditor since 2022 to 2024.\n\n \n\nSingapore,\nMay 15, 2025\n\nPCAOB\nID Number 3487\n\n \n\nF-3\n\n \n\n \n\n**INNEOVA\nHOLDINGS LIMITED AND SUBSIDIARIES**\n\n**CONSOLIDATED\nBALANCE SHEETS**\n\n**(Currency\nexpressed in United States Dollars (“US$”))**\n\n \n\n  \n2025  \n2024 \n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\n  \n$’000  \n$’000 \n\n  \n   \n  \n\nASSETS \n    \n   \n\nCurrent assets: \n    \n   \n\nCash  \n 1,059  \n 1,790 \n\nRestricted cash \n 315  \n 298 \n\nAccounts receivable - Third parties, net \n 7,935  \n 11,413 \n\nAccounts receivable - Related parties, net \n 2,630  \n 3,140 \n\nAccounts receivable \n 2,630  \n 3,140 \n\nInventories \n 18,553  \n 19,390 \n\nAmounts due from related parties \n 2,080  \n 1,426 \n\nDeposits, prepayments and other receivables \n 3,949  \n 3,819 \n\n  \n    \n   \n\nTotal current assets \n 36,521  \n 41,276 \n\n  \n    \n   \n\nNon-current assets: \n    \n   \n\nProperty and equipment, net \n 2,129  \n 2,404 \n\nRight-of-use assets, net \n 657  \n 672 \n\nDeferred tax assets \n \n837\n  \n \n128\n \n\nAmounts due from related parties \n 1,274  \n 1,295 \n\n  \n    \n   \n\nTotal non-current assets \n 4,897  \n 4,499 \n\n  \n    \n   \n\nTOTAL ASSETS \n 41,418  \n 45,775 \n\n  \n    \n   \n\nLIABILITIES AND SHAREHOLDERS’ EQUITY \n    \n   \n\nCurrent liabilities: \n    \n   \n\nAccounts payable and accrued liabilities \n 5,054  \n 4,924 \n\nAccounts payable - Related parties \n 244  \n 9 \n\nCustomer deposits \n 5,647  \n 5,445 \n\nAmounts due to related parties \n 5,467  \n 6,877 \n\nBank borrowings \n 17,686  \n 19,175 \n\nFinance lease liabilities, current \n \n70\n  \n \n88\n \n\nOperating lease liabilities, current \n 176  \n 334 \n\nIncome tax payable \n 100  \n 173 \n\n  \n    \n   \n\nTotal current liabilities \n 34,444  \n 37,025 \n\n  \n    \n   \n\nLong-term liabilities: \n    \n   \n\nBank borrowings \n 1,241  \n 3,103 \n\nFinance lease liabilities, non-current\n \n \n140\n  \n \n188\n \n\nOperating lease liabilities, non-current \n 508  \n 384 \n\nDeferred tax liabilities \n 112  \n 164 \n\n  \n    \n   \n\nTotal long-term liabilities \n 2,001  \n 3,839 \n\n  \n    \n   \n\nTOTAL LIABILITIES \n 36,445  \n 40,864 \n\n  \n    \n   \n\nShareholders’ equity \n    \n   \n\nPreferred Shares, 25,000,000 authorized with par value of $0.0005 each, none issued or outstanding as of December\n31, 2025 and 2024 \n -  \n - \n\nOrdinary shares, 200,000,000\nauthorized comprise of 150,000,000\nClass A and 25,000,000\nClass B shares, with par value of $0.0005\neach, 16,527,249\nand 10,250,000\nordinary shares issued and outstanding as of December 31, 2025 and 2024, respectively \n 8  \n 5 \n\nAdditional paid-in capital \n 1,006  \n 1,009 \n\nAccumulated other comprehensive loss \n (535) \n (994)\n\nRetained earnings \n 4,494  \n 4,891 \n\n  \n    \n   \n\nTotal shareholders’ equity \n 4,973  \n 4,911 \n\n  \n    \n   \n\nTOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY \n 41,418  \n 45,775 \n\n \n\nThe\naccompanying notes are an integral part of these consolidated financial statements.\n\n \n\nF-4\n\n \n\n \n\n**INNEOVA\nHOLDINGS LIMITED AND SUBSIDIARIES**\n\n**CONSOLIDATED\nSTATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME**\n\n**(Currency\nexpressed in United States Dollars (“US$”))**\n\n \n\n  \n2025  \n2024  \n2023 \n\n  \nFinancial Years Ended December 31, \n\n  \n2025  \n2024  \n2023 \n\n  \n$’000  \n$’000  \n$’000 \n\nRevenue, net \n 58,425  \n 62,741  \n 62,693 \n\n  \n    \n    \n   \n\nCost of revenue \n (47,204) \n (50,439) \n (50,697)\n\n  \n    \n    \n   \n\nGross profit \n 11,221  \n 12,302  \n 11,996 \n\n  \n    \n    \n   \n\nOperating expenses: \n    \n    \n   \n\nSelling and distribution \n (1,167) \n (1,687) \n (1,448)\n\nGeneral and administrative \n (10,105) \n (9,366) \n (7,693)\n\n  \n    \n    \n   \n\nTotal operating cost and expenses \n (11,272) \n (11,053) \n (9,141)\n\n  \n    \n    \n   \n\n(Loss) profit from operations \n (51) \n 1,249  \n 2,855 \n\n  \n    \n    \n   \n\nOther income (expenses): \n    \n    \n   \n\nInterest income \n 56  \n 81  \n 2 \n\nInterest expense \n (1,345) \n (1,449) \n (1,118)\n\nGovernment grant \n 45  \n 94  \n 79 \n\nLoss (gain) on disposal of property and equipment \n 12  \n (2) \n - \n\nForeign exchange gain, net \n 66  \n 294  \n 153 \n\nOther income \n 164  \n 234  \n 174 \n\n  \n    \n    \n   \n\nTotal other expenses, net \n (1,002) \n (748) \n (710)\n\n  \n    \n    \n   \n\n(Loss) income before income taxes \n (1,053) \n 501  \n 2,145 \n\n  \n    \n    \n   \n\nIncome tax (benefit) expense \n (656) \n 125  \n 285 \n\n  \n    \n    \n   \n\nNET (LOSS) INCOME \n (397) \n 376  \n 1,860 \n\n  \n    \n    \n   \n\nOther comprehensive income: \n    \n    \n   \n\nForeign currency translation adjustment \n 459  \n \n(192\n) \n 114 \n\n  \n    \n    \n   \n\nCOMPREHENSIVE INCOME \n 62  \n 184  \n 1,974 \n\n  \n    \n    \n   \n\nNet (loss) income per share \n    \n    \n   \n\nBasic and Diluted \n (0.03) \n 0.04  \n 0.20 \n\n  \n    \n    \n   \n\nWeighted average Ordinary Shares outstanding \n    \n    \n   \n\nBasic and Diluted (’000) \n 14,402  \n 9,545  \n 9,375 \n\n \n\nThe\naccompanying notes are an integral part of these consolidated financial statements.\n\n \n\nF-5\n\n \n\n \n\n**INNEOVA\nHOLDINGS LIMITED AND SUBSIDIARIES**\n\n**CONSOLIDATED\nSTATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY**\n\n**(Currency\nexpressed in United States Dollars (“US$”), except for number of shares)**\n\n \n\n  \n \n \n \n \n\n**No.\nof**\n\n**shares**\n  \nAmount  \nAdditional\npaid-in capital  \nAccumulated\nother comprehensive (loss) income  \nRetained\nearnings  \n\n**Total shareholders’ equity**\n\n****\n \n\n  \n \n\n**Preferred Shares**\n\n \n \nOrdinary\nShares  \n   \n   \n   \n  \n\n  \n \n**No. of shares**\n \n \n\n**No.\nof**\n\n**shares**\n  \nAmount  \nAdditional\npaid-in capital  \nAccumulated\nother comprehensive (loss) income  \nRetained\nearnings  \n\n**Total**\n\n**shareholders’\nequity**\n \n\n  \n \n**’000**\n \n \n$’000  \n$’000  \n$’000  \n$’000  \n$’000  \n$’000 \n\n  \n \n \n \n \n   \n   \n   \n   \n   \n  \n\nBalance\nas of December 31, 2022 \n \n-\n \n \n 9,375  \n 5  \n 1,341  \n (916) \n (2,655) \n 3,085 \n\n  \n \n \n \n \n    \n    \n    \n    \n    \n   \n\nForeign\ncurrency translation adjustment \n \n-\n \n \n -  \n -  \n -  \n 114  \n -  \n 114 \n\nNet\nincome for the financial year \n \n-\n \n \n -  \n -  \n -  \n -  \n 1,860  \n 1,860 \n\n  \n \n \n \n \n    \n    \n    \n    \n    \n   \n\nBalance\nas of December 31, 2023 \n \n-\n \n \n 9,375  \n 5  \n 1,341  \n (802) \n 4,515  \n 5,059 \n\n  \n \n \n \n \n    \n    \n    \n    \n    \n   \n\nForeign\ncurrency translation adjustment \n \n-\n \n \n -  \n -  \n -  \n (192) \n -  \n (192)\n\nIssuance\nof new shares \n \n-\n \n \n 875  \n 1  \n (332) \n -  \n -  \n (332)\n\nNet\nincome for the financial year \n \n-\n \n \n -  \n -   \n -   \n -  \n 376  \n 376 \n\n  \n \n \n \n \n    \n    \n    \n    \n    \n   \n\nBalance\nas of December 31, 2024 \n \n-\n \n \n 10,250  \n 5  \n 1,009  \n (994) \n 4,891  \n 4,911 \n\nBalance\n \n \n-\n \n \n 10,250  \n 5  \n 1,009  \n (994) \n 4,891  \n 4,911 \n\nForeign currency translation adjustment \n -  \n -  \n -  \n -  \n 459  \n -  \n 459 \n\nNet loss for the financial year \n -  \n -  \n -  \n -  \n -  \n (397) \n (397)\n\nIssuance of ordinary shares pursuant to common control acquisition \n -  \n 6,296  \n 3  \n (3) \n -  \n -  \n - \n\nShare\ncancellation \n \n-\n \n \n (18)  \n -  \n -  \n -  \n -  \n - \n\n  \n \n \n \n \n    \n    \n    \n    \n    \n   \n\nBalance\nas of December 31, 2025 \n \n-\n \n \n 16,528  \n 8  \n 1,006  \n (535) \n 4,494  \n 4,973 \n\nBalance\n \n \n-\n \n \n 16,528  \n 8  \n 1,006  \n (535) \n 4,494  \n 4,973 \n\n \n\nThe\naccompanying notes are an integral part of these consolidated financial statements.\n\n \n\nF-6\n\n \n\n \n\n**INNEOVA\nHOLDINGS LIMITED AND SUBSIDIARIES**\n\n**CONSOLIDATED\nSTATEMENTS OF CASH FLOWS**\n\n**(Currency\nexpressed in United States Dollars (“US$”))**\n\n \n\n  \n2025  \n2024  \n2023 \n\n  \nFinancial Years Ended December 31, \n\n  \n2025  \n2024  \n2023 \n\n  \n$’000  \n$’000  \n$’000 \n\n  \n   \n   \n  \n\nCash flows from operating activities: \n    \n    \n   \n\nNet (loss) income \n (397) \n 376  \n 1,860 \n\nAdjustments to reconcile net income to net cash provided by operating activities \n    \n    \n   \n\nDepreciation of property and equipment \n 414  \n 294  \n 240 \n\nDepreciation of right-of-use assets \n 403  \n 368  \n 357 \n\nProvision for impairment for estimated credit loss \n 800  \n 907  \n 251 \n\nProvision for impairment for inventories \n -  \n 11  \n 231 \n\nLoss (gain) on disposal of property and equipment \n 12  \n (2) \n - \n\n  \n    \n    \n   \n\nChange in operating assets and liabilities: \n    \n    \n   \n\nAccounts receivable \n 3,189  \n (447) \n 1,499 \n\nInventories \n 838  \n 708  \n (374)\n\nDeposits, prepayments, and other receivables \n (130) \n (638) \n 348 \n\nAccounts payable and accrued liabilities \n 367 \n 2  \n (279)\n\nRepayment of operating lease liabilities \n \n(422\n) \n \n(360\n) \n \n(319\n)\n\nCustomer deposits \n 201  \n 1,469  \n (63)\n\nIncome tax payable \n (834) \n (154) \n (12)\n\n  \n    \n    \n   \n\nNet cash provided by operating activities \n 4,441  \n 2,534  \n 3,739 \n\n  \n    \n    \n   \n\nCash flows from investing activity: \n    \n    \n   \n\nPurchase of property and equipment \n (10) \n (739) \n (309)\n\n  \n    \n    \n   \n\nNet cash used in investing activity \n (10) \n (739) \n (309)\n\n  \n    \n    \n   \n\nCash flows from financing activities: \n    \n    \n   \n\nRepayment of bank borrowings \n (48,731) \n (43,299) \n (47,508)\n\nProceeds from bank borrowings \n 45,379  \n 46,494  \n 46,311 \n\nProceeds from issuance of new shares, net of expenses \n - \n (332) \n - \n\nRepayment to related parties \n (2,043) \n (3,373) \n (2,463)\n\nRepayment of finance lease liabilities \n (66) \n (118) \n (156)\n\n  \n    \n    \n   \n\nNet cash used in financing activities \n (5,461) \n (628) \n (3,816)\n\n  \n    \n    \n   \n\nEffect on exchange rate change on cash and restricted cash \n 316  \n (196) \n 114 \n\n  \n    \n    \n   \n\nNet change in cash and restricted cash \n (714) \n 971  \n (272)\n\n  \n    \n    \n   \n\nCASH AND RESTRICTED CASH, BEGINNING OF FINANCIAL YEAR \n 2,088  \n 1,117  \n 1,389 \n\n  \n    \n    \n   \n\nCASH AND RESTRICTED CASH, END OF FINANCIAL YEAR \n 1,374  \n 2,088  \n 1,117 \n\n  \n    \n    \n   \n\nSUPPLEMENTAL CASH FLOW INFORMATION: \n    \n    \n   \n\nCash paid for income taxes \n 206  \n 280  \n 297 \n\nCash paid for interest \n 1,345  \n 1,448  \n 1,118 \n\n  \n    \n    \n   \n\n**SUPPLEMENTAL NON-CASH FLOW INFORMATION:** \n    \n    \n   \n\nIssuance of ordinary shares in connection with common-control acquisition \n 3  \n    \n   \n\n \n\nThe\naccompanying notes are an integral part of these consolidated financial statements.\n\n \n\nF-7\n\n \n\n \n\n**NOTE－1\nBUSINESS OVERVIEW AND BASIS OF PRESENTATION**\n\n \n\nINNEOVA\nHoldings Limited (formerly known SAG Holdings Limited) (the “Company” or “INNEOVA”) is incorporated in the Cayman\nIslands on February 14, 2022 under the Companies Act (as revised) as an exempted company with limited liability.\n\n \n\nOn August 25, 2025, the authorized share capital of\nthe Company shall be re-classified and re-designated from (i) US$100,000 divided into 200,000,000 shares of par value of US$0.0005\neach to (ii) US$100,000 divided into 150,000,000 Class A ordinary shares of par value of US$0.0005 each, 25,000,000 Class B ordinary shares\nof par value of US$0.0005 each, and 25,000,000 Preferred Shares of par value of US$0.0005 each.\n\n \n\nINNEOVA,\nthrough its subsidiaries is mainly engaged in the sale and distribution of the automotive and industrial spare parts with operations\nprimarily based out of Singapore, and global sales primarily generated from the Middle East and Malaysia. The Company has over 40 years\nof experience in supplying genuine and aftermarket spare parts to on-highway applications. Over the years, the Company has extended to\nsupply the products to off-highway applications in the marine, energy, mining, construction, agriculture, and oil and gas industries.\nThe business is comprised of On-Highway Business serving the automotive sector and Off-Highway Business primarily servicing the marine,\nenergy, mining, construction, agriculture, and oil and gas sectors.\n\n \n\nDescription\nof subsidiaries incorporated and controlled by the Company\n\n SCHEDULE OF SUBSIDIARIES INCORPORATED\n\n**Name**\n \n**Background**\n \n**Effective\nownership**\n\n \n \n \n \n \n\nINNEOVA\nGroup Limited (formerly known as SAG Investments Limited) (“INNEOVA Group”)\n \n\n●\nBritish Virgin Islands company\n\n●\nIncorporated on November 17, 2021\n\n●\nProvision of investment holding\n\n \n100%\nowned by INNEOVA\n\n \n \n \n \n \n\nINNEOVA\nIndustrial Pte. Ltd. (formerly known as Filtec Private Limited) (“INNEOVA Industrial”)\n \n\n●\nSingaporean company\n\n●\nIncorporated on September 1, 1999\n\n●\nManufacturing and repair of separation or mixing equipment and general wholesale trade\n\n \n100%\nowned by INNEOVA Group\n\n \n \n \n \n \n\nINNEOVA\nAutomotive Pte. Ltd. (formerly known as Spare-Parts Zone Pte. Ltd.) (“INNEOVA Automotive”)\n \n\n●\nSingaporean company\n\n●\nIncorporated on January 3, 1995\n\n●\nSupply a wide range of automotive spare parts and lubricants genuine and aftermarket spare parts for use in passenger and commercial\non-highway vehicles\n\n \n100%\nowned by INNEOVA Group\n\n \n \n \n \n \n\nAutozone\nAutomotive Pte Ltd (“Autozone (S)”)\n \n\n●\nSingaporean company\n\n●\nIncorporated on December 7, 2009\n\n●\nManufacturing and processing of automotive components or parts assembling re-engineering\n\n \n100%\nowned by INNEOVA Automotive\n\n \n \n \n \n \n\nINNEOVA\nEngineering Pte. Ltd. (formerly known as Power Trans Engineering Pte. Ltd.) (“INNEOVA Engineering”)\n \n\n●\nSingaporean company\n\n●\nIncorporated on April 13, 1996\n\n●\nManufacturing and repair of gears, gearing and driving elements\n\n \n100%\nowned by INNEOVA Group\n\n \n \n \n \n \n\nINNEOVA\nMalaysia Sdn. Bhd (formerly known as Autozone Sdn. Bhd.) (“INNEOVA Malaysia”)\n \n\n●\nMalaysian company\n\n●\nIncorporated on December 17, 2009\n\n●\nFranchising of automotive parts retail\n\n \n100%\nowned by INNEOVA Group\n\n \n\nF-8\n\n \n\n \n\nReorganization\n\n \n\nSince\n2022, the Company completed several transactions for the purposes of a group reorganization, as below:-\n\n \n\nOn\nFebruary 14, 2022, Soon Aik Global Pte Ltd (“Soon Aik”) and Celestial Horizon Holdings Limited (“Celestial”)\nentered into the Acquisition Agreement, pursuant to which Celestial acquired 49 shares of INNEOVA Group (representing approximately 4.9%\nshareholding interest in INNEOVA Group) from Soon Aik for consideration of $0.8 million. As a term of the acquisition, Soon Aik undertakes\nto transfer the entire issued share capital of INNEOVA Industrial and INNEOVA Automotive to the INNEOVA Group. Following such transfer,\nSoon Aik owned 949 shares and the Celestial owned 49 shares, respectively.\n\n \n\nOn\nFebruary 17, 2022, INNEOVA Automotive entered into an instrument of transfer and bought and sold note with Soon Aik pursuant to which\nINNEOVA Automotive transferred its entire legal and beneficial shareholding interest in Auto Saver Pte. Ltd to Soon Aik for nominal consideration.\n\n \n\nOn\nSeptember 29, 2022, Soon Aik and INNEOVA Group entered into a sale and purchase agreement pursuant to which Soon Aik transferred its\nentire shareholding interest in INNEOVA Automotive to INNEOVA Group. The consideration is settled by INNEOVA Group allotting and issuing\n1 share to Soon Aik, credited as fully paid.\n\n \n\nOn\nSeptember 29, 2022, Soon Aik and INNEOVA Group entered into a sale and purchase agreement pursuant to which Soon Aik transferred the\nentire issued share capital of INNEOVA Industrial to INNEOVA Group in consideration of the allotment and issue of 1 share in INNEOVA\nGroup to Soon Aik, credited as fully paid.\n\n \n\nOn\nSeptember 29, 2022, Celestial, Soon Aik and INNEOVA entered into a reorganization agreement, pursuant to which Soon Aik and Celestial\ntransferred their respective 951 and 49 shares (representing 95.1% and 4.9% shareholding interest in INNEOVA Group, respectively) to\nINNEOVA. The consideration is settled by INNEOVA issuing 8,915,624 and 459,375 Shares to Soon Aik and Celestial respectively, credited\nas fully paid.\n\n \n\nOn\nJanuary 5, 2024, for purposes of recapitalization in anticipation of the initial public offering, the Company amended its memorandum\nof association to effect a 1:2 forward stock split and to change the authorized share capital to $100,000 divided into 200,000,000 ordinary\nshares, of a par value of $0.0005 each. On January 5, 2024 and January 18, 2024, Soon Aik surrendered in aggregate 9,272,250 ordinary\nshares to the Company. Celestial surrendered in aggregate 477,750 ordinary shares to the Company. Unless otherwise indicated, all references\nto Ordinary Shares, share data, per share data, and related information have been retroactively adjusted, where applicable, in the Public\nOffering to reflect the 1:2 forward stock split of our Ordinary Shares on January 5, 2024 and the shares surrendered by our existing\nshareholders on January 5, 2024 and January 18, 2024 as if they had occurred at the beginning of the earlier period presented.\n\n \n\nPrior\nto a group reorganization, INNEOVA Group was the holding company of a group of companies comprised of INNEOVA Industrial, INNEOVA Automotive,\nAutozone (S) and INNEOVA Malaysia. INNEOVA Group held as to 95.1% by Soon Aik and 4.9% by Celestial, the latter of which is an independent\nthird party. Upon completion of the reorganization and forward stock split, Soon Aik owns 8,559,000 shares and Celestial owns 441,000\nshares of the Company respectively, and INNEOVA Group, INNEOVA Industrial, INNEOVA Automotive, Autozone (S) and INNEOVA Malaysia become\ndirectly/indirectly owned subsidiaries.\n\n \n\nCommon\ncontrol transactions\n\n \n\nOn\nMay 1, 2025, the Company announced the acquisition of 100%\nstake in INNEOVA Engineering Pte. Ltd. from its controlling\nshareholder, Soon Aik Global Pte Ltd (the “Seller”), the calculation of the amount of Consideration Shares was based on an\nimplied purchase price of SGD10,235,000\n(equivalent to approximately $7.6 million).\n\n \n\nAs the transaction was between entities under common\ncontrol, the acquisition was accounted for as a common control transaction. No goodwill or bargain purchase gain was recognized as a result\nof the transaction.\n\n \n\nOn April 11, 2025, INNEOVA Group Limited and Autozone\nAutomotive Pte. Ltd. entered an agreement relating to the sale and purchase of shares of INNEOVA Malaysia Sdn. Bhd. (“INNEOVA Malaysia”),\nthe control of the entities has remained under the control of INNEOVA Holdings Limited. The acquisition was accounted for as a common\ncontrol transaction. No goodwill or bargain purchase gain was recognized as a result of the transaction.\n\n \n\n**Liquidity\nand Capital Resources**\n\n \n\nOur\nliquidity and working capital requirements primarily related to our operating expenses. Historically, we have met our working capital\nand other liquidity requirements primarily through a combination of cash generated from our operations and loans from banking facilities.\nGoing forward, we expect to fund our working capital and other liquidity requirements from various sources, including cash generated\nfrom our operations, loans from banking facilities, the net proceeds from the Public Offering and other equity and debt financings as\nand when appropriate.\n\n \n\nOur\ncash requirements consist primarily of day-to-day operating expenses, capital expenditures and contractual obligations with respect to\nfacility leases and other operating leases. We lease all our office facilities. We expect to make future payments on existing leases\nfrom cash generated from operations. We have limited credit available from our major vendors and are required to prepay for the majority\nof our inventory purchases, which further constrains our cash liquidity.\n\n \n\nF-9\n\n \n\n \n\n**NOTE－2\nSUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**\n\n \n\nThese\naccompanying consolidated financial statements reflect the application of certain significant accounting policies as described in this\nnote and elsewhere in the accompanying consolidated financial statements and notes.\n\n \n\n●\nBasis of Presentation\n\n \n\nThe\naccompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the\nUnited States of America (“U.S. GAAP”).\n\n \n\n●\nUse of Estimates\n\n \n\nThe\npreparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that\naffect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated\nfinancial statements and the reported amounts of revenues and expenses for the financial years presented. Significant accounting estimates\nin the period include the allowance for current expected credit losses on accounts and other receivables, impairment loss on inventories,\nassumptions used in assessing right-of-use assets, impairment of long-lived assets, useful lives of property and equipment, and realization of deferred tax assets.\n\n \n\n●\nBasis of Consolidation\n\n \n\nThe\nconsolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company\nbalances and transactions within the Company have been eliminated upon consolidation.\n\n \n\n●\nForeign Currency Translation and Transaction\n\n \n\nThe\nreporting currency of the Company is United States Dollar (“US$”) and the accompanying consolidated financial statements\nhave been expressed in US$. In addition, the Company and subsidiaries are operating in Singapore and Malaysia, maintain their books\nand record in their local currency, Singapore Dollars (“SGD”) and Malaysian Ringgit (“MYR”), respectively,\nwhich is a functional currency as being the primary currency of the economic environment in which their operations are conducted. In\ngeneral, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated\ninto US$, in accordance with ASC Topic 830-30, *Translation of Financial Statement*, using the exchange rate on the balance\nsheet date. Revenues and expenses are translated at average rates prevailing for the financial years. The gains and losses resulting\nfrom translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other\ncomprehensive income within the statements of changes in shareholders’ equity.\n\n \n\nF-10\n\n \n\n \n\nTranslation\nof amounts from SGD into US$ has been made at the following exchange rates for the financial years ended December 31, 2025, 2024 and\n2023:\n\n SCHEDULE OF FOREIGN CURRENCY TRANSLATION\n\n  \n2025  \n2024  \n2023 \n\n  \nFinancial Years Ended December 31, \n\n  \n2025  \n2024  \n2023 \n\n  \n   \n   \n  \n\nYear-end SGD:US$ exchange rate \n 1.2842  \n 1.3581  \n 1.3434 \n\nAnnual average SGD:US$ exchange rate \n 1.3102  \n 1.3342  \n 1.3181 \n\n \n\nTranslation\nof amounts from MYR into US$ has been made at the following exchange rates for the financial years ended December 31, 2025, 2024 and\n2023:\n\n \n\n  \n2025  \n2024  \n2023 \n\n  \nFinancial Years Ended December 31, \n\n  \n2025  \n2024  \n2023 \n\n  \n   \n   \n  \n\nYear-end MYR:US$ exchange rate \n 4.0524  \n 4.4704  \n 4.5524 \n\nAnnual average MYR:US$ exchange rate \n 4.2957  \n 4.5849  \n 4.83713 \n\n \n\nForeign exchange\ngains and losses that arise from exchange rate fluctuations from transactions denominated in a currency other than the functional currency\nare translated, as the case may be, at the rate on the date of the transaction and included in the results of operations as incurred.\n\n \n\n●\nCash and Cash Equivalents\n\n \n\nCash\nand cash equivalents consist primarily of cash on hand and cash in readily available checking and saving accounts. Cash equivalents\nconsist of highly liquid investments that are readily convertible to cash and that mature within three (3) months or less from the\ndate of purchase. The carrying amounts approximate fair value due to the short maturities of these instruments. The Company\nmaintains most of its bank accounts in Singapore and Malaysia. There was no cash equivalents as of December 31, 2025 and 2024.\n\n \n\n●\nRestricted Cash\n\n \n\nRestricted cash represents fixed deposits held by foreign subsidiaries of the Group with DBS Bank, with maturities\nwithin 12 months. These fixed deposits have been pledged to DBS Bank as collateral security and guarantees under the Group’s trust receipt\nfacilities. Under the terms of the relevant facility agreements, DBS Bank is entitled to apply these fixed deposits against any outstanding\nobligations owed by the relevant subsidiaries in the event of a failure to repay amounts due. Accordingly, these deposits are not available\nfor the Group’s general use.\n\n \n\n●\nAccounts Receivable, net\n\n \n\nAccounts\nreceivable include trade accounts due from customers in the sale of products.\n\n \n\nAccounts\nreceivable are recorded at the invoiced amount. The Company seeks to maintain strict control over its outstanding receivables to minimize\ncredit risk. Overdue balances are reviewed regularly by senior management. Management reviews its receivables on a regular basis to determine\nif the bad debt allowance is adequate, and provides allowance when necessary. The allowance is based on management’s best estimates\nof specific losses on customer exposures, as well as the historical trends of collections. Account balances are charged off\nagainst the allowance after all reasonable means of collection have been exhausted and the likelihood of collection is not probable.\nThe Company’s management continues to evaluate the reasonableness of the valuation allowance policy and update it if necessary.\n\n \n\nThe\nCompany adopted ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments\n(“ASC 326”). ASC 326 requires the application of a credit loss model based prospectively on current expected credit losses\n(CECL), and replaces the previous model based retrospectively on past incurred losses. The Company adopted ASC 326 using the modified\nretrospective method for all financial assets measured at amortized cost. The Company carries accounts receivable at the face amounts\nless a reserve for estimated credit losses. As of December 31, 2025 and 2024, allowance for credit loss was approximately $2.6 million\nand approximately $1.7 million, respectively.\n\n \n\nThe\nCompany does not hold any collateral or other credit enhancements overs its accounts receivable balances.\n\n \n\n●\nInventories\n\n \n\nInventories\nare valued at the lower of cost or net realizable value. Cost is determined by the average cost method. The Company records adjustments\nto its inventory for estimated obsolescence or diminution in net realizable value equal to the difference between the cost of the inventory\nand the estimated net realizable value. At the point of loss recognition, a new cost basis for that inventory is established, and subsequent\nchanges in facts and circumstances do not result in the restoration or increase in that newly established cost basis.\n\n \n\nF-11\n\n \n\n \n\n●\nProperty and Equipment, net\n\n \n\nProperty\nand equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated\non the straight-line basis over the following expected useful lives from the date beginning when the assets are placed in service and\nafter taking into account their estimated residual values:\n\n SCHEDULE OF PLANT AND EQUIPMENT ESTIMATED USEFUL LIVES\n\n \n** **\n**Expected\nuseful life**\n\nLeasehold\nfactory premise\n \n42 years\n\nLeasehold\nimprovement\n \n3-5\nyears\n\nTools\nand equipment\n \n3-8\nyears\n\nFurniture,\nfixtures and fittings\n \n5-8\nyears\n\nOffice\nequipment\n \n5-7\nyears\n\nComputer\nequipment\n \n3\nyears\n\nMotor\nvehicles\n \n5-10\nyears\n\nMachinery\nand equipment\n \n7\nyears\n\n \n\nLeasehold\nfactory premise and improvements are depreciated over the shorter of their estimated useful life or the remaining lease\nterm.\n\n \n\nExpenditures\nfor maintenance and repairs are expensed as incurred, while costs that extend the useful life of an asset are capitalized. Property and\nequipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.\nWhen property and equipment are retired or disposed of, the cost and related accumulated depreciation are removed from the accounts and\nany resulting gain or loss is recognized in the consolidated statements of operations.\n\n \n\n●\nImpairment of Long-Lived Assets\n\n \n\nIn\naccordance with the provisions of ASC Topic 360, *Impairment or Disposal of Long-Lived Assets*, all long-lived assets such as property\nand equipment owned and held by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the\ncarrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the\ncarrying amount of an asset to its estimated future undiscounted cash flows expected to be generated by the asset. If such assets are\nconsidered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed\nthe fair value of the assets.\n\n \n\n●\nRevenue Recognition\n\n \n\nThe\nCompany recognizes its sales of goods and services from contracts with customers, which are accounted for in accordance with\nAccounting Standards Update (“ASU”) No. 2014-09, *Revenue from Contracts with Customers (Topic 606)* (“ASC\n606”).\n\n \n\nASC\n606 establishes a five-step model for recognizing revenue from contracts with customers. The Company recognizes revenue to depict the\ntransfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled\nin exchange for those goods or services.\n\n \n\nStep\n1: Identify the contract(s) with a customer.\n\nStep\n2: Identify the performance obligations in the contract.\n\nStep\n3: Determine the transaction price – The transaction price is the amount of consideration in a contract to which an entity expects\nto be entitled in exchange for transferring promised goods or services to a customer.\n\nStep\n4: Allocate the transaction price to the performance obligations in the contract – Any entity allocates the transaction price to\neach performance obligation on the basis of the relative standalone selling prices of each distinct good or service promised in the contract.\n\nStep\n5: Recognize revenue when (or as) the entity satisfies a performance obligation – An entity recognizes revenue when (or as) it\nsatisfies a performance obligation by transferring a promised good or service to a customer (which is when the customer obtains control\nof that good or service). The amount of revenue recognized is the amount allocated to the satisfied performance obligation. A performance\nobligation may be satisfied at a point in time (typically for promises to transfer goods to a customer) or over time (typically for promises\nto transfer service to a customer).\n\n \n\nF-12\n\n \n\n \n\nThe\nmajority of the Company’s income is derived from contracts with customers in the sale of products and services, and as such, the revenue\nrecognized depicts the transfer of promised goods or services to its customers in an amount that reflects the consideration to which\nthe entity expects to be entitled in exchange for those goods or services. The Company considers the terms of the contract and all\nrelevant facts and circumstances when applying this guidance. The Company’s revenue recognition policies are in compliance\nwith ASC 606, as follows:\n\n \n\nProduct\nsales consist of a single performance obligation that the Company satisfies at a point in time. The Company recognizes product\nrevenue when the following events have occurred: (a) the Company has transferred physical possession of the products, depending upon\nthe method of distribution and shipping terms set forth in the customer contract, (b) the Company has a present right to payment,\n(c) the customer has legal title to the products, and (d) the customer bears the risks and rewards of ownership of the products.\nBased on the Company’s historical practices and shipping terms specified in the sales agreements and invoices, these criteria\nare generally met when the control of the product transfers to the customer,\nat which point the customer obtains legal title and assumes the risks and rewards of ownership, and the customer is able to direct\nthe use of, and obtain substantially all of the benefits from the products.\n\n \n\nThe\nCompany records its revenues on product sales, net of good & service taxes (“GST”) upon the services are rendered and\nthe title and risk of loss of products are fully transferred to the customers. The Company is subject to GST which is levied on the majority\nof the products at the rate of 9% on the invoiced value of sales in Singapore.\n\n \n\nThe Company records estimated sales returns, rebates, and other allowances as reductions to revenue at the time revenue\nis recognized. Estimates are based on historical experience, contractual terms, and current expectations. Actual results may differ from\nthese estimates. For the financial years ended December 31, 2025, 2024 and\n2023, the sales returns allowance was $Nil, $Nil and $6,441, respectively.\n\n \n\n●\nContract Balances\n\n \n\nDeferred\nrevenue consists of customer payment in advance of revenue being recognized. The Company invoices its customers at the beginning of\nthe contractual period. Amounts anticipated to be recognized within one (1) year of the balance sheet date are recorded on the\nconsolidated balance sheets as deferred revenue, current.\n\n \n\nThe\nbalance of deferred revenue will fluctuate based on timing of invoices and recognition of revenue. The amount of revenue recognized\nfor the financial years ended December 31, 2025 and 2024 that was included in deferred revenue at the beginning of each period was\napproximately $5.7\nmillion and $5.4\nmillion, respectively.\n\n \n\n●\nSales and Marketing\n\n \n\nSales\nand marketing expenses include payroll, employee benefits and other headcount-related expenses associated with sales and marketing personnel,\nand the costs of advertising, promotions, seminars, and other programs. Advertising costs are expensed as incurred. Advertising expense\nwas $20,520, $5,880 and $6,315 for the financial years ended December 31, 2025, 2024 and 2023,\nrespectively.\n\n \n\n●\nGovernment Grant\n\n \n\nA\ngovernment grant or subsidy is not recognized until there is reasonable assurance that: (a) the enterprise will comply with the conditions\nattached to the grant; and (b) the grant will be received. When the Company receives government grant or subsidies but the conditions\nattached to the grants have not been fulfilled, such government subsidies are deferred and recorded under other payables and accrued\nexpenses, and other long-term liability. The classification of short-term or long-term liabilities is dependent on the management’s\nexpectation of when the conditions attached to the grant can be fulfilled.\n\n \n\nF-13\n\n \n\n \n\n●\nComprehensive Income (Loss)\n\n \n\nASC\nTopic 220, *Comprehensive Income*, establishes standards for reporting and display of comprehensive income, its components and accumulated\nbalances. Comprehensive income as defined includes all changes in equity during a period from non-owner sources. Accumulated other comprehensive\nincome, as presented in the accompanying statement of shareholder’s equity, consists of changes in unrealized gains and losses\non foreign currency translation. This comprehensive income is not included in the computation of income tax expense or benefit.\n\n \n\n●\nIncome Taxes\n\n \n\nThe Company accounts for income taxes in accordance\nwith ASC Topic 740, *Income Taxes* (“ASC 740”). ASC 740 prescribes a comprehensive model for the recognition, measurement,\npresentation, and disclosure of income taxes and uncertain tax positions in the financial statements.\n\n \n\nDeferred tax assets and liabilities are recognized\nfor the expected future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing\nassets and liabilities and their respective tax bases, as well as for operating loss and tax credit carryforwards. Deferred tax assets\nand liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected\nto reverse.\n\n \n\nThe Company recognizes the financial statement effect\nof a tax position when it is more likely than not that the position will be sustained upon examination by the relevant tax authorities\nbased on the technical merits of the position. Tax positions recognized in the financial statements are measured as the largest amount\nof tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the taxing authority.\n\n \n\nFor\nthe financial years ended December 31, 2025, 2024 and 2023, the Company did not have any interest and penalties associated with tax positions.\nAs of December 31, 2025 and 2024, the Company did not have any significant unrecognized uncertain tax positions.\n\n \n\nThe\nCompany is subject to tax in local and foreign jurisdiction. As a result of its business activities, the Company files tax returns that\nare subject to examination by the relevant tax authorities.\n\n \n\n●\nLeases\n\n \n\nEffective\nfrom January 1, 2019, the Company adopted the guidance of ASC 842, *Leases*, which requires an entity to recognize a\nright-of-use asset and a lease liability for virtually all leases. On February 25, 2016, the Financial Accounting Standards Board\n(the “FASB”) issued Accounting Standards Update No. 2016-02, Leases (Topic 842), to increase transparency and\ncomparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key\ninformation about leasing transactions. ASC 842 requires that lessees recognize right-of-use assets and lease liabilities calculated\nbased on the present value of lease payments for all lease agreements with terms that are greater than 12 months. It requires for\nleases longer than one (1) year, a lessee to recognize in the statement of financial condition a right-of-use asset, representing\nthe right to use the underlying asset for the lease term, and a lease liability, representing the liability to make lease payments.\nASC 842 distinguishes leases as either a finance lease or an operating lease that affects how the leases are measured and presented\nin the statement of operations and statement of cash flows. ASC 842 supersedes nearly all existing lease accounting guidance under\nGAAP issued by the FASB including ASC Topic 840, Leases.\n\n \n\n●\nRetirement Plan Costs\n\n \n\nContributions\nto retirement plans (which are defined contribution plans) are charged to general and administrative expenses in the accompanying statements\nof operation as the related employee service are provided. The Company is required to make contribution to their employees under a government-mandated\nmulti-employer defined contribution pension scheme for its eligible full-times employees in Singapore and Malaysia. The Company is required\nto contribute a specified percentage of the participants’ relevant income based on their ages and wages level. For the financial\nyears ended December 31, 2025, 2024 and 2023, approximately $0.4 million, $0.4 million and $0.4 million contributions\nwere made respectively.\n\n \n\nF-14\n\n \n\n \n\n●\nSegment Reporting\n\n \n\nFASB\nASC 280, *Segment Reporting*, establishes standards for reporting information about operating segments on a basis consistent\nwith the Company’s internal organizational structure as well as information about geographical areas, business segments and\nmajor customers in financial statements for details on the Company’s business segments. For the financial years ended December\n31, 2025, 2024 and 2023, the Company has three\n(3) reporting business segments.\n\n \n\nINNEOVA’s Chief Executive Officer is the Chief\nOperating Decision Maker (“CODM”) of the Company. The CODM uses Adjusted EBITDA for each segment as the measure of segment\nprofit or loss to allocate resources to each segment and to compare the operating performance of the Company’s properties with those\nof its competitors as a way to assess performance. Adjusted EBITDA is net income (loss) before interest, taxes, depreciation, amortization,\nand other non-operating income and expenses.\n\n \n\n●\nRelated Parties\n\n \n\nThe\nCompany follows the ASC 850-10, *Related Party* for the identification of related parties and disclosure of related party transactions.\n\n \n\nPursuant\nto section 850-10-20 the related parties include: (a) affiliates of the Company; (b) entities for which investments in their equity securities\nwould be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825-10-15, to be accounted\nfor by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and Income-sharing trusts\nthat are managed by or under the trusteeship of management; (d) principal owners of the Company; (e) management of the Company; (f) other\nparties with which the Company may deal if one party controls or can significantly influence the management or operating policies of\nthe other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g)\nother parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership\ninterest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting\nparties might be prevented from fully pursuing its own separate interests.\n\n \n\nThe\nfinancial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense\nallowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the\npreparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: (a)\nthe nature of the relationship(s) involved; (b) a description of the transactions, including transactions to which no amounts or nominal\namounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary\nto an understanding of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of\nthe periods for which income statements are presented and the effects of any change in the method of establishing the terms from that\nused in the preceding period; and (d) amount due from or to related parties as of the date of each balance sheet presented and, if not\notherwise apparent, the terms and manner of settlement.\n\n \n\n●\nCommitments and Contingencies\n\n \n\nThe\nCompany follows the ASC 450-20, *Commitments to report accounting for contingencies*. Certain conditions may exist as of the date\nthe financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future\nevents occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise\nof judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims\nthat may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well\nas the perceived merits of the amount of relief sought or expected to be sought therein.\n\n \n\nIf\nthe assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability\ncan be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates\nthat a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then\nthe nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.\n\n \n\nLoss\ncontingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed.\nManagement does not believe, based upon information available at this time that these matters will have a material adverse effect on\nthe Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not\nmaterially and adversely affect the Company’s business, financial position, and results of operations or cash flows.\n\n \n\nF-15\n\n \n\n \n\n●\nCredit Risk\n\n \n\nFinancial instruments that potentially subject\nthe Company to credit risk consist of cash and cash equivalents, restricted cash, accounts receivable. Cash and cash equivalents are\nmaintained with high credit quality institutions, the composition and maturities of which are regularly monitored by management.\nFrom April 1, 2024 onwards, the Singapore Deposit Protection Board pays compensation up to a limit of S$100,000\n(approximately $77,869)\nif the bank with which an individual or a company hold its eligible deposit fails. For deposits held in Malaysia, the Perbadanan\nInsurans Deposit Malaysia (“PIDM”) provides deposit insurance protection up to MYR 250,000\n(approximately $61,692)\nper depositor per member institution.\n\n \n\nFor\naccounts receivable, the Company determines, on a continuing basis, the allowance for current expected credit losses are based on the\nestimated realizable value. The Company identifies credit risk on a customer-by-customer basis. The information is monitored regularly\nby management. Concentration of credit risk arises when a group of customers having similar characteristics such that their ability to\nmeet their obligations is expected to be affected similarly by changes in economic conditions.\n\n \n\n●\nFair Value Measurement\n\n \n\nThe\nCompany follows the guidance of the ASC Topic 820-10, *Fair Value Measurements and Disclosure* (“ASC 820-10”), with\nrespect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy\nthat prioritizes the inputs used in measuring fair value as follows:\n\n \n\n \n●\n*Level\n1* : Inputs are based upon unadjusted quoted prices for identical instruments traded in active markets;\n\n \n●\n*Level\n2*: Inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments\nin markets that are not active, and model-based valuation techniques (e.g. Black-Scholes Option-Pricing model) for which all significant\ninputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets\nor liabilities. Where applicable, these models project future cash flows and discount the future amounts to a present value using\nmarket-based observable inputs; and\n\n \n●\n*Level\n3* : Inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants\nwould use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option\npricing models and discounted cash flow models.\n\n \n\nF-16\n\n \n\n \n\nThe\ncarrying value of the Company’s financial instruments: cash and cash equivalents, restricted cash, accounts receivable,\namount due to related parties, accounts payable, income tax payable, amount due to related parties, other payables\nand accrued liabilities approximate at their fair values because of the short-term nature of these financial instruments.\n\n \n\nManagement\nbelieves, based on the current market prices or interest rates for similar debt instruments, the fair value of bank borrowings approximately\nthe carrying amount.\n\n \n\n●\nRecently Issued Accounting Pronouncements\n\n \n\nThe\nCompany is an “emerging growth company” (the “EGC”) as defined in the Jumpstart Our Business Startups Act of\n2012 (the “JOBS Act”). Under the JOBS Act, the EGC can delay adopting new or revised accounting standards issued subsequent\nto the enactment of the JOBS Act until such time as those standards apply to private companies.\n\n \n\nIn\nNovember 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU\n2023-07”). The amendments in the ASU are intended to improve reportable segment disclosure requirements, primarily through enhanced\ndisclosures about significant segment expenses that are regularly provided to the chief operating decision maker and included within\neach reported measure of segment profit or loss. In addition, the amendments enhance interim disclosure requirements, clarify circumstances\nin which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities\nwith a single reportable segment, and contain other disclosure requirements. The purpose of the amendments is to enable “investors\nto better understand an entity’s overall performance” and assess “potential future cash flows.” The amendments\nin ASU 2023-07 are effective for all public entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal\nyears beginning after December 15, 2024. The adoption did not have material impact on the Company’s consolidated financial statement\npresentations and disclosures.\n\n \n\nIn\nDecember 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (Topic 740). The ASU requires specific disaggregated\ninformation about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid.\nThe ASU is effective on a prospective basis for annual periods beginning after December 15, 2024. Early adoption is also permitted for\nannual financial statements that have not yet been issued or made available for issuance. The adoption did not have material impact on the Company’s\nconsolidated financial statement presentations and disclosures.\n\n \n\nIn\nNovember 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures\n(Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), and in January 2025, the FASB issued ASU\nNo. 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying\nthe Effective Date (“ASU 2025-01”). ASU 2024-03 requires additional disclosure of the nature of expenses included in the\nincome statement as well as disclosures about specific types of expenses included in the expense captions presented in the income statement.\nASU 2024-03, as clarified by ASU 2025-01, is effective for annual periods beginning after December 15, 2026, and interim reporting periods\nbeginning after December 15, 2027, with early adoption permitted. This guidance will be applied either prospectively or retrospectively.\nThe Company is currently evaluating the impact that the adoption of these standards will have on the Company’s consolidated financial\nstatements and disclosures.\n\n \n\nIn\nJuly 2025, the FASB issued ASU 2025-05, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for\nAccounts Receivable and Contract Assets”. ASU 2025-05 provides a practical expedient related to the estimation of expected credit\nlosses for current accounts receivable and current contract assets. ASU 2025-05 is effective for annual reporting periods beginning after\nDecember 15, 2025 and interim reporting periods within those annual reporting periods and should be applied prospectively. Early adoption\nis permitted, and the Company is currently assessing the impact of adoption.\n\n \n\nIn\nSeptember 2025, the FASB issued ASU 2025-06, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40):\nTargeted Improvements to the Accounting for Internal-Use Software”, which provides guidance to clarify and modernize the accounting\nfor costs related to internal-use software. ASU2025-06 is effective for annual reporting periods beginning after December 15, 2027, including\ninterim reporting periods within those annual reporting periods. Early adoption is permitted, and the Company is currently assessing\nthe impact of adoption.\n\n \n\nOther\naccounting standards that have been issued by the FASB that do not require adoption until a future date are not expected to have a material\nimpact on the consolidated financial statements upon adoption. The Company does not discuss recent standards that are not anticipated\nto have an impact on or are unrelated to its consolidated financial condition, results of operations, cash flows or disclosures.\n\n \n\nF-17\n\n \n\n \n\n**NOTE\n– 3 BUSINESS SEGMENT AND DISAGGREGATION OF REVENUE**\n\n \n\nThe\nCompany has disaggregated its revenue from contracts with customers into categories based on the nature of the revenue in the following\ntable:\n\n \n\nThe\nfollowing tables present the Company’s revenue disaggregated by business segment and geography, based on management’s assessment\nof available data:\n\n SCHEDULE OF DISAGGREGATION OF REVENUE BY BUSINESS SEGMENT\n\n  \n2025  \n2024  \n2023 \n\n  \nFinancial Years Ended December 31, \n\n  \n2025  \n2024  \n2023 \n\n  \n$’000  \n$’000  \n$’000 \n\n  \n   \n   \n  \n\nRevenue  \n    \n    \n   \n\nOn-Highway Business \n 24,511  \n 25,837  \n 26,900 \n\nOff-Highway Business \n 29,330  \n 31,315  \n 32,621 \n\nEngineering Services \n 4,584  \n 5,589  \n 3,172 \n\n  \n    \n    \n   \n\nRevenue from external customers \n 58,425  \n 62,741  \n 62,693 \n\n  \n    \n    \n   \n\nCost of revenue \n    \n    \n   \n\nOn-Highway Business \n 18,867  \n 20,247  \n 21,349 \n\nOff-Highway Business \n 24,446  \n 26,436  \n 26,731 \n\nEngineering Services \n 3,891  \n 3,756  \n 2,617 \n\n  \n    \n    \n   \n\nCost of revenue \n 47,204  \n 50,439  \n 50,697 \n\n  \n    \n    \n   \n\nGross profit \n    \n    \n   \n\nOn-Highway Business \n 5,644  \n 5,589  \n 5,551 \n\nOff-Highway Business \n 4,884  \n 4,879  \n 5,890 \n\nEngineering Services \n 693  \n 1,834  \n 555 \n\n  \n    \n    \n   \n\nGross profit \n 11,221  \n 12,302  \n 11,996 \n\n  \n    \n    \n   \n\nOperating expenses \n    \n    \n   \n\nOn-Highway Business \n 4,972  \n 5,188  \n 4,433 \n\nOff-Highway Business \n 4,677  \n 4,953  \n 3,948 \n\nEngineering Services \n 1,623  \n 912  \n 760 \n\n  \n    \n    \n   \n\nOperating expenses \n 11,272  \n 11,053  \n 9,141 \n\n  \n    \n    \n   \n\nSegment results \n    \n    \n   \n\nOn-Highway Business \n 672  \n 774  \n 1,118 \n\nOff-Highway Business \n 207  \n (447) \n 1,942 \n\nEngineering Services \n (930) \n 922  \n (205)\n\n  \n    \n    \n   \n\nSegment results \n (51) \n 1,249  \n 2,855 \n\n  \n    \n    \n   \n\nSegment assets \n    \n    \n   \n\nOn-Highway Business \n 14,942  \n 14,847  \n 15,254 \n\nOff-Highway Business \n 19,470  \n 25,380  \n 23,778 \n\nEngineering Services \n 7,006  \n 5,548  \n 5,129 \n\n  \n    \n    \n   \n\n**Segment assets** \n 41,418  \n 45,775  \n 44,161 \n\n \n\nIn\naccordance with ASC 280, Segment Reporting (“ASC 280”), we have three (3) reporting business segments. Sales are based\non the countries in which the customer is located.\n\n \n\nF-18\n\n \n\n \n\n**NOTE－4\nACCOUNTS RECEIVABLE, NET**\n\n \n\nAccounts\nreceivable, net consisted of the following:\n\n SCHEDULE OF ACCOUNTS RECEIVABLE, NET\n\n  \n2025  \n2024 \n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\n  \n$’000  \n$’000 \n\n  \n   \n  \n\nAccounts receivable: \n    \n   \n\nAccounts receivable – Third parties \n 10,513  \n 13,078 \n\nAccounts receivable – Related parties \n 2,630  \n 3,140 \n\nAccounts receivable \n 2,630  \n 3,140 \n\nLess: allowance for current expected credit losses \n (2,578) \n (1,665)\n\n  \n    \n   \n\nAccounts receivable, net \n 10,565  \n 14,553 \n\n \n\n  \n2025  \n2024 \n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\n  \n$’000  \n$’000 \n\n  \n   \n  \n\nCurrent \n 3,633  \n 3,891 \n\nBetween 1 and 30 days \n 2,512  \n \n2,294\n \n\nBetween 31 and 60 days \n 1,300  \n 1,451 \n\nBetween 61 and 90 days \n 481  \n 542 \n\nBetween 91 and 120 days \n 246  \n 468 \n\nBetween 121 and 365 days \n 983  \n 1,438 \n\nOver 365 days \n 3,987  \n 6,134 \n\n  \n    \n   \n\nAccounts receivable \n 13,142  \n 16,218 \n\n \n\nThe\nfollowing table presents the activities in the allowance for current expected credit losses as of December 31, 2025 and 2024.\n\n SCHEDULE OF ALLOWANCE FOR CURRENT EXPECTED CREDIT LOSSES\n\n  \n2025  \n2024 \n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\n  \n$’000  \n$’000 \n\n  \n   \n  \n\nBeginning balance \n 1,665  \n 774 \n\nAdditions \n 800  \n 907 \n\nForeign exchange translation adjustment \n 113  \n (16)\n\n  \n    \n   \n\nEnding balance \n 2,578  \n 1,665 \n\n \n\nFor\nthe financial years ended December 31, 2025, 2024 and 2023, the Company made provision for estimated credit losses of approximately $0.8\nmillion, $0.9 million and $0.3 million for the financial years ended December 31, 2025, 2024 and 2023, respectively.\n\n \n\nThe\nCompany generally conducts its business with creditworthy third parties. The Company determines, on a continuing basis, the probable\nlosses and an allowance for current expected credit losses, based on several factors including internal risk ratings, customer credit\nquality, payment history, historical bad debt/write-off experience and forecasted economic and market conditions. Accounts receivable\nare written off after exhaustive collection efforts occur and the receivable is deemed uncollectible.\n\n  \n\n**NOTE－5\nINVENTORIES**\n\n \n\nThe\nCompany’s inventories were as follows:-\n\n SCHEDULE OF INVENTORIES\n\n  \n2025  \n2024 \n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\n  \n$’000  \n$’000 \n\n  \n   \n  \n\nParts and components \n 18,923  \n 19,740 \n\nLess: reserve for obsolete inventories \n (370) \n (350)\n\n  \n    \n   \n\nTotal\nInventories \n 18,553  \n 19,390 \n\n \n\n  \n2025  \n2024 \n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\n  \n$’000  \n$’000 \n\n  \n   \n  \n\nBeginning balance, \n 350  \n 349 \n\nAdditions \n 20  \n 11 \n\nForeign exchange translation adjustment \n -  \n (10)\n\n  \n    \n   \n\nBalance at December 31, \n 370 \n 350 \n\n \n\nFor\nthe financial years ended December 31, 2025, 2024 and 2023, the Company recorded provision for impairment on obsolete inventories of $Nil, approximately $0.01 million and $0.2 million, respectively.\n\n \n\nF-19\n\n \n\n \n\n**NOTE－6\nPROPERTY AND EQUIPMENT, NET**\n\n \n\nProperty\nand equipment, net consisted of the following:\n\n SCHEDULE\nOF PROPERTY AND EQUIPMENT, NET\n\n  \n2025  \n2024 \n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\n  \n$’000  \n$’000 \n\n  \n   \n  \n\nAt cost \n    \n   \n\nLeasehold factory premise \n 1,533  \n 1,450 \n\nLeasehold improvement \n 186  \n 172 \n\nTools and equipment \n 52  \n 44 \n\nFurniture, fixtures and fittings \n 267  \n 299 \n\nOffice equipment \n 37  \n 34 \n\nComputer equipment \n 76  \n 70 \n\nMotor vehicles \n 1,012  \n 1,010 \n\nAir-conditioner \n 65  \n 16 \n\nMachinery & equipment \n 1,294  \n 1,224 \n\nProperty\nand equipment, gross \n 4,522  \n 4,319 \n\nLess: accumulated depreciation \n (2,393) \n (1,915)\n\n  \n    \n   \n\nProperty and equipment, net \n 2,129  \n 2,404 \n\n \n\nDepreciation\nexpense for the financial years ended December 31, 2025, 2024 and 2023 were approximately $0.4\nmillion, $0.3\nmillion and $0.2\nmillion, respectively.\n\n \n\nF-20\n\n \n\n \n\n**NOTE－7\nBANK BORROWINGS**\n\n \n\nBank\nborrowings consisted of the following:\n\n SCHEDULE OF BANK BORROWINGS\n\n  \n  \n   \n2025  \n2024 \n\nBank indebtedness \nTerms of repayments \n\n**Annual**\n\n**interest**\n\n**rate**\n  \n\n**As of**\n\n**December 31,**\n \n\n  \n  \n   \n2025  \n2024 \n\n  \n  \n   \n$’000  \n$’000 \n\n  \n  \n   \n   \n  \n\nTerm loans \n2 to 10 years \n 2.00-3.75 % \n 3,173  \n 4,465 \n\nBank borrowings, long term \n2 to 10 years \n 2.00-3.75 % \n 3,173  \n 4,465 \n\nOverdraft \nWithin 12 months \n 4.0739% \n 114  \n 12 \n\nTrust receipts \nWithin 12 months \n 1.65-7.25% \n 14,938  \n 17,137 \n\nRevolving loan \nWithin 12 months \n 2.50% \n 702  \n 664 \n\n  \n  \n    \n    \n   \n\nTotal \n  \n    \n 18,927  \n 22,278 \n\n \n\nAs\nof December 31, 2025 and 2024, bank borrowings were obtained from several financial institutions in Singapore, which bear annual interest\nat a fixed rate from approximately 1.65% to 7.25% and are repayable in 1 months to 10 years.\n\n \n\nInterest\nrelated to the bank borrowings was approximately $1.3 million, $1.4 million and $1.1 million and for the\nfinancial years ended December 31, 2025, 2024 and 2023, respectively.\n\n \n\nThe\nCompany’s bank borrowings are guaranteed under personal guarantees from the ultimate shareholders CE Neo, Jimmy Neo, Edward\nNeo and CK Neo and a corporate guarantee from Soon Aik Global Pte Ltd.\n\n \n\nThe\nCompany’s subsidiaries had not met certain bank’ financial covenants as set out in the loan agreement, including requirements for the corporate guarantor to maintain a minimum\ntangible net worth ranging from S$3.5 million to S$11 million for different loans, and a consolidated gearing ratio of not more than 2.0\ntimes (excluding property loan) and 3.0 times (including property loan). The loan became due on demand. The outstanding loan\nbalances under their banking facilities has been classified as current liabilities in the accompanying consolidated balance sheet. The\nBoard of Directors is of the opinion that the banks will continue to support the Company’s subsidiaries notwithstanding that the\nbreach of bank loan covenants clauses which are technical in nature, as there are no bank loan repayment defaults by the Company’s\nsubsidiaries for the respective outstanding loan balances of the banks till the date of this report. The banks had not requested early\nrepayment of the bank loan as at the date of these financial statements were approved by the Board of Directors.\n\n \n\n**NOTE－8\nRIGHT-OF-USE ASSETS, NET**\n\n \n\nThe\nCompany adopted ASU 2016-02, Leases (ASC 842), Leases, on January 1, 2019, the beginning of the fiscal 2019, using the modified\nretrospective approach. The Company determines whether an arrangement is a lease at inception. This determination generally depends\non whether the arrangement conveys the right to control the use of an identified fixed asset explicitly or implicitly for a period\nof time in exchange for consideration. Control of an underlying asset is conveyed if we obtain the rights to direct the use of and\nto obtain substantially all of the economic benefit from the use of the underlying asset. Some of our leases include both lease and\nnon-lease components which are accounted for as a single lease component as the Company has elected the practical expedient. Some of\nthe operating lease agreements include variable lease costs, primarily taxes, insurance, common area maintenance or increases in\nrental costs related to inflation. Substantially all of our equipment leases and some of our real estate leases have terms of less\nthan one (1) year and, as such, are accounted for as short-term leases as we have elected the practical expedient.\n\n \n\nOperating\nleases are included in the right-of-use lease assets, other current liabilities and long-term lease liabilities on the Consolidated Balance\nSheets. Right-of-use assets and lease liabilities are recognized at each lease’s commencement date based on the present values\nof its lease payments over its respective lease term. When a borrowing rate is not explicitly available for a lease, the incremental\nborrowing rate is used based on information available at the lease’s commencement date to determine the present value of its lease\npayments. Operating lease payments are recognized on a straight-line basis over the lease term.\n\n \n\nThe\nCompany adopts 5.0% as weighted average incremental borrowing rate to determine the present value of the lease payments. The weighted\naverage remaining life of the lease was three (3) years.\n\n \n\nThe\nfinance lease arrangements held by the Company are summarized as follows:\n\n SCHEDULE\nOF FINANCE LEASE RIGHT-OF-USE ASSETS, NET\n\n  \n2025  \n2024 \n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\n  \n$’000  \n$’000 \n\n  \n   \n  \n\nAt cost \n    \n   \n\nMotor vehicles \n 979  \n 979 \n\n  \n    \n   \n\nRight-of-use assets, gross  \n 979  \n 979 \n\nLess: accumulated depreciation \n (701) \n (626)\n\n  \n    \n   \n\nMotor vehicles, net \n 277  \n 353 \n\n \n\nAmortization\nexpenses of assets under finance lease arrangements for the financial years ended December 31, 2025 and 2024 amounted to approximately\n$0.075 million and $0.041 million, respectively.\n\n \n\nRight-of-use\nassets, net for the amount recognized in the consolidated balance sheet in the table below:\n\n SCHEDULE OF RIGHT-OF-USE ASSETS, NET\n\n  \n2025  \n2024 \n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\n  \n$’000  \n$’000 \n\n  \n   \n  \n\nRight-of-use assets, net \n    \n   \n\nAt cost \n 1,659  \n 1,477 \n\n  \n    \n   \n\nRight-of-use assets, gross  \n 1,659  \n 1,477 \n\nLess: Accumulated amortization \n (1,002) \n (805)\n\n  \n    \n   \n\nRight-of-use assets,\nnet  \n 657  \n 672 \n\n \n\nOperating\nlease expenses for the financial years ended December 31, 2025, 2024 and 2023 amounted to approximately $0.4\nmillion, $0.4\nmillion and $0.4\nmillion, respectively.\n\n \n\nF-21\n\n \n\n \n\nLease\nliabilities for the amount recognized in the consolidated balance sheet in the table below:\n\n \n\nFinance\nlease liabilities\n\n SCHEDULE OF LEASE LIABILITIES\n\n  \n2025  \n2024 \n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\n  \n$’000  \n$’000 \n\n  \n   \n  \n\nWithin 1 year \n 80  \n 103 \n\nMore than 1 year \n 153  \n 209 \n\nTotal future lease payment \n 233  \n 312 \n\nLess: Imputed interest \n (23) \n (36)\n\n  \n    \n   \n\nPresent value of finance lease liabilities \n 210  \n 276 \n\n  \n    \n   \n\nRepresenting \n    \n   \n\nCurrent liabilities \n 70  \n 88 \n\nNon-current liabilities \n 140  \n 188 \n\n  \n    \n   \n\nFinance lease liabilities  \n 210  \n 276 \n\n \n\nOperating\nlease liabilities\n\n \n\n  \n2025  \n2024 \n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\n  \n$’000  \n$’000 \n\n  \n   \n  \n\nPresent value of operating lease liabilities \n 684  \n 718 \n\n  \n    \n   \n\nRepresenting \n    \n   \n\nCurrent liabilities \n 176  \n 334 \n\nNon-current liabilities \n 508  \n 384 \n\n  \n    \n   \n\nOperating lease liabilities  \n 684  \n 718 \n\n \n\nComponents\nof Lease Expense\n\n \n\nWe\nrecognize lease expense on a straight-line basis over the term of the operating leases, as reported within “general and administrative”\nexpense on the accompanying consolidated statement of operations.\n\n \n\nFuture\nlease payments, excluding short-term leases, as of December 31, 2025 and 2024, are detailed as follows:\n\n SCHEDULE OF FUTURE LEASE PAYMENTS, EXCLUDING SHORT-TERM LEASES\n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\n  \n$’000  \n$’000 \n\n  \n   \n  \n\nWithin 1 year \n    \n   \n\n- finance lease liabilities \n 70  \n 88 \n\n- operating lease liabilities \n 176  \n 334 \n\n  \n    \n   \n\n  \n 246  \n 422 \n\n  \n    \n   \n\nMore than 1 year \n    \n   \n\n- finance lease liabilities \n 140  \n 188 \n\n- operating lease liabilities \n 508  \n 384 \n\n  \n    \n   \n\n  \n 648  \n 572 \n\n  \n    \n   \n\n  \n 894  \n 994 \n\n \n\nFuture Contractual Lease Payments as of December\n31, 2025\n\n \n\nThe below table summarizes our (i) minimum lease payments\nover the next five financial years, (ii) lease arrangement implied interest, and (iii) present value of future lease payments for the\nfinancial years ending December 31:\n\n SCHEDULE OF FUTURE CONTRACTUAL LEASE PAYMENTS\n\n  \nFinance lease liabilities  \nOperating lease liabilities \n\n  \n$’000  \n$’000 \n\n  \n   \n  \n\nFinancial years ending December 31, \n    \n   \n\n2026 \n 80  \n 177 \n\n2027 \n 60  \n 109 \n\n2028 \n 39  \n 38 \n\n2029 \n 35  \n 9 \n\n2030 \n 19  \n 10 \n\nOver 2030 \n -  \n 341 \n\nTotal future lease payment \n 233  \n 684 \n\nLess: Imputed interest \n (23) \n - \n\n  \n    \n   \n\nPresent value of finance lease liabilities \n 210  \n 684 \n\n \n\nThe\nCompany excludes short-term leases (those with lease terms of less than one (1) year at inception) from the measurement of lease\nliabilities or right-of-use assets. The following tables summarize the lease expense for the financial years. The operating lease expenses are approximately $0.49 million, $0.44 million and $0.56 million for the financial years\nended December 31, 2025, 2024 and 2023.\n\n \n\nF-22\n\n \n\n \n\n**NOTE—9\nSHAREHOLDERS’ EQUITY**\n\n \n\n*Ordinary\nand preferred shares*\n\n \n\nThe\nCompany was established under the laws of Cayman Islands on February 14, 2022, with authorized share of 100,000,000 ordinary\nshares of par value US$0.001 each.\nOn January 5, 2024, the Company amended its memorandum of association to effect a 1:2\nforward stock split and to change the\nauthorized share capital to $100,000 divided\ninto 200,000,000 shares,\nof a par value of $0.0005 each.\nOn October 22, 2024, the Company completed its initial public offering of 875,000 Ordinary\nShares at a public offering price of US$8.00 per\nshare (the “Public Offering”). Total gross proceeds to the Company from the Public Offering were $7 million.\nTotal offering cost was approximately $7.3 million.\n\n \n\nOn August 25, 2025, the authorized share capital\nof the Company shall be re-classified and re-designated from (i) US$100,000\ndivided into 200,000,000\nordinary and preferred shares of par value of US$0.0005\neach to (ii) US$100,000 divided into 150,000,000\nClass A ordinary shares of par value of US$0.0005\neach, 25,000,000\nClass B ordinary shares of par value of US$0.0005\neach, and 25,000,000\npreferred shares of par value of US$0.0005\neach.\n\n \n\nThe\nCompany is authorized to issue Class A ordinary shares, Class B ordinary shares and Preferred shares.\n\n \n\nClass A Ordinary Shares holder shall have one (1)\nvote for every fully paid Ordinary Share. Class B Ordinary Shares holder shall have one hundred (100) vote for every fully paid Ordinary\nShare. Each share of Class B ordinary share is convertible at any time, at the option of the holder, into one share of Class A ordinary\non a one-for-one basis. Class A ordinary share is not convertible into Class B ordinary share.\n\n \n\nCommon Control Transactions\n\n \n\nOn April 11, 2025, INNEOVA Group Limited and Autozone\nAutomotive Pte. Ltd. entered an agreement relating to the sale and purchase of shares of INNEOVA Malaysia Sdn. Bhd. (“INNEOVA Malaysia”),\nthe control of the entities has remained under the control of INNEOVA Holdings Limited. Accordingly, the combination has been treated\nas a under common control transaction and has been accounted for a carryover basis,\nwith no change in the basis of accounting for assets and liabilities of INNEOVA Malaysia. The consideration for the purchase of Shares\nconsideration shall be the aggregate sum of MYR650,000 (equivalent to SGD388,790.76) for the entire 100% equity stake in the issued and\npaid up capital of INNEOVA Malaysia. No goodwill or other adjustments were recorded as a result of the Reorganization.\n\n \n\nOn May 1, 2025, the Company announced the\nacquisition of 100%\nstake in INNEOVA Engineering Pte. Ltd. from its controlling shareholder, Soon Aik Global Pte Ltd (the “Seller”), which\nwas approved at during an extra-ordinary general meeting (EGM) held on March 31, 2025. The financial and other terms and conditions\nof the INNEOVA Engineering Pte. Ltd. agreement were reviewed by the Special Committee and the Board of Directors and the\nconsideration for the acquisition was based upon the valuation of INNEOVA Engineering Pte. Ltd.’s ordinary shares in\naccordance with the Valuation Report. On the terms and conditions set forth in the INNEOVA Agreement, upon consummation of the\nacquisition (the “Closing”), the Seller will receive 6,295,624\nordinary shares of the Company (the “Consideration Shares”) in return for all of the outstanding shares of INNEOVA\nEngineering Pte. Ltd. The calculation of the amount of Consideration Shares was based on an implied purchase price of SGD10,235,000 (equivalent to approximately $7.6 million),\nthe stock price for ordinary shares of the Company as of market close on February 28, 2025, $1.21,\nand a SGD to USD exchange rate of 0.74428\ncalculated as of February 28, 2025. The share issuance was treated as a non-cash financing activity in the consolidated statements of cash flows.\n\n \n\nF-23\n\n \n\n \n\nPrior to acquisition, INNEOVA Holdings was the holding\ncompany of a group of companies comprised of INNEOVA Group, INNEOVA Industrial, INNEOVA Automotive, Autozone (S) and INNEOVA Malaysia.\nUpon the completion of the acquisition of INNEOVA Engineering by INNEOVA Group, then INNEOVA Industrial, INNEOVA Automotive, INNEOVA Engineering,\nAutozone (S) and INNEOVA Malaysia become directly/indirectly owned subsidiaries of INNEOVA Holdings Limited.\n\n \n\nFor the financial years presented in these consolidated\nfinancial statements, the control of the entities has remained under the control of Soon Aik. Accordingly, the combination has been treated\nas a corporate restructuring (“Reorganization”) of entities under common control and thus the current capital structure has\nbeen retroactively presented in prior financial years as if such structure existed at that time and in accordance with ASC 805-50-45-5,\nthe entities under common control are presented on a combined basis for all periods to which such entities were under common control.\nThe consolidation of INNEOVA and its subsidiaries has been accounted for at historical cost and prepared on the basis as if the aforementioned\ntransactions had become effective as of the beginning of the first financial year presented in the accompanying consolidated financial\nstatements.\n\n \n\nThe consolidation of the INNEOVA Holdings Limited\nand its subsidiaries has been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become\neffective as of the beginning of the first period presented in the accompanying consolidated financial statements. Results of operations\nfor the periods presented comprise those of the previously separate entities consolidated from the beginning of the period to the end\nof the period, eliminating the effects of intra-entity transactions.\n\n \n\nThe combination has been treated as a corporate restructuring\n(“Reorganization”) of entities under common control and thus the current capital structure has been retroactively presented\nin prior periods as if such structure existed at that time and in accordance with ASC 805-50-45-5, the entities under common control are\npresented on a combined basis for all financial years to which such entities were under common control. Since all of the subsidiaries\nwere under common control for the entirety of the financial years ended December 31, 2025, 2024 and 2023, the results of these subsidiaries\nare included in the financial statements for both periods. After the Restructuring (“Reorganization”), the Company has 16,527,249\nordinary shares issued and outstanding.\n\n \n\nThe consolidation of the INNEOVA Holdings Limited\nand its subsidiaries has been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become\neffective as of the beginning of the first financial year presented in the accompanying consolidated financial statements. Results of\noperations for the financial years presented comprise those of the previously separate entities consolidated from the beginning of the\nfinancial year to the end of the financial year, eliminating the effects of intra-entity transactions.\n\n \n\n**NOTE－10\nINCOME TAXES**\n\n \n\nThe\nprovision for income taxes consisted of the following:\n\n SCHEDULE OF PROVISION FOR INCOME TAXES\n\n  \n2025  \n2024  \n2023 \n\n  \nFinancial Years Ended December 31, \n\n  \n2025  \n2024  \n2023 \n\n  \n$’000  \n$’000  \n$’000 \n\n  \n   \n   \n  \n\nIncome tax expense \n92  \n125  \n285 \n\nDeferred tax expense \n (748) \n -  \n - \n\n  \n    \n    \n   \n\nIncome tax (benefit) expense \n (656) \n 125  \n 285 \n\n \n\nF-24\n\n \n\n \n\nThe\neffective tax rate in the financial years presented is the result of the mix of income earned in various tax jurisdictions that\napply a broad range of income tax rate. The Company’s subsidiaries mainly operate in Cayman Islands, British Virgin Islands,\nSingapore and Malaysia that are subject to taxes in the jurisdictions in which they operate, as follows:\n\n SCHEDULE OF EFFECTIVE INCOME TAX RATE\n\n  \n2025  \n2024  \n2023 \n\n  \nFinancial Years Ended December 31, \n\n  \n2025  \n2024  \n2023 \n\n  \n$’000  \n$’000  \n$’000 \n\n  \n   \n   \n  \n\n(Loss) Income before income taxes \n (1,053) \n 501  \n 2,145 \n\nStatutory income tax rate \n 17% \n 17% \n 17%\n\nIncome tax expense at statutory rate \n (179) \n 85  \n 365 \n\nEffect of different tax rates in foreign jurisdictions \n 195 \n (7) \n (4)\n\nExpenses not deductible for tax purposes \n 206  \n 14  \n 15 \n\nIncome tax (over-provision or under provision) \n -  \n (10) \n (28)\n\nDeferred tax provision \n (748) \n \n-\n  \n \n-\n \n\nTax exemption and rebate \n (102) \n (45) \n (49)\n\nOther \n (28) \n 88  \n (14)\n\n  \n    \n    \n   \n\nIncome tax (benefit) expense \n (656) \n 125  \n 285 \n\n \n\n*Cayman\nIslands*\n\n \n\nINNEOVA\nHoldings is considered to be an exempted Cayman Islands Company and is presently not subject to income taxes or income tax filing requirements\nin the Cayman Islands.\n\n \n\n*British\nVirgin Islands*\n\n \n\nINNEOVA\nGroup is considered to be an exempted British Virgin Islands Company and is presently not subject to income taxes or income tax filing\nrequirements in the British Virgin Islands.\n\n \n\n*Singapore*\n\n \n\nINNEOVA\nIndustrial, INNEOVA Automotive, INNEOVA Engineering and Autozone (S) are operating in Singapore and are subject to the Singapore tax\nlaw at the corporate tax rate at 17% on the assessable income arising in Singapore for its tax year.\n\n \n\n*Malaysia*\n\n \n\nINNEOVA\nMalaysia is operating in Malaysia and is subject to the Malaysia tax law at the corporate tax rate at 24% on the assessable income arising\nin Malaysia for its tax year.\n\n \n\nF-25\n\n \n\n \n\nThe\nfollowing table sets forth the significant components of the deferred tax assets and liabilities of the Company as of December 31, 2025\nand 2024:\n\n SCHEDULE OF DEFERRED INCOME TAX LIABILITY\n\n  \n2025  \n2024 \n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\n  \n$’000  \n$’000 \n\n  \n   \n  \n\nDeferred tax assets: \n    \n   \n\nLoss carried forward \n 12  \n - \n\nProvision for impairment of account receivables \n 436  \n - \n\nProvision for impairment for inventory \n 63  \n - \n\nLease liabilities \n 152  \n 128 \n\nAccrued expenses \n 18  \n - \n\nProperty and equipment \n 156  \n - \n\n  \n    \n   \n\nTotal deferred tax assets \n 837  \n 128 \n\n  \n    \n   \n\nDeferred tax liabilities: \n    \n   \n\nRight-of-use assets \n (112) \n (164)\n\n  \n    \n   \n\nTotal deferred tax liabilities \n (112) \n (164)\n\n  \n    \n   \n\nDeferred tax assets (liabilities), net \n 725  \n (36)\n\n \n\nUncertain\ntax positions\n\n \n\nThe\nCompany evaluates the uncertain tax position (including the potential application of interest and penalties) based on the technical merits,\nand measure the unrecognized benefits associated with the tax positions. As of December 31, 2025 and 2024, the Company did not have any\nsignificant unrecognized uncertain tax positions. The Company did not incur any interest and penalties related to potential underpaid\nincome tax expenses for the financial years ended December 31, 2025, 2024 and 2023, and also did not anticipate any significant increases\nor decreases in unrecognized tax benefits in the next 12 months from December 31, 2025.\n\n \n\n**NOTE－11\nRELATED PARTIES BALANCES AND TRANSACTIONS**\n\n \n\nAs of March 31, 2025 and 2024, the balance of due to related parties\nwas comprised of advance from the Company’s related parties and was used for working capital during the Company’s normal course\nof business. Such advance was non-interest bearing and due on demand.\n\n \n\nThe\namount due from/to related parties, consisted of the following:\n\nSCHEDULE OF DUE FROM/TO RELATED PARTIES, NET \n\n  \n2025  \n2024 \n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\n  \n$’000  \n$’000 \n\n  \n   \n  \n\nAmount due from related parties: \n    \n   \n\nNon-current amount: \n    \n   \n\n- Soon Aik Global Pte Ltd(3) \n 1,274  \n 1,295 \n\nAmount due from related parties:\nNon-current \n 1,274  \n 1,295 \n\n  \n    \n   \n\nCurrent amount: \n    \n   \n\n- EU Group Pte Ltd(1) \n 194  \n 29 \n\n- Fleetzone Autoparts (M) Sdn Bhd(3) \n 212  \n - \n\n- Oceania Power & Solutions Pty Ltd(2) \n -  \n 2 \n\n- Kiwami Corporation(2) \n 1  \n - \n\n- Branded Filters Pty Ltd(2) \n -  \n - \n\n- Soon Aik Global Pte Ltd(3) \n 1,673  \n 1,395 \n\nAmount\ndue from related parties: Current \n 1,673  \n 1,395 \n\n  \n    \n   \n\nAmount due from related parties \n 3,354  \n 2,721 \n\n  \n    \n   \n\nAmount due to related parties: \n    \n   \n\n- EU Group Pte Ltd(1) \n (455) \n (125)\n\n- PT Heavy Machindo Diesel(2) \n -  \n (1)\n\n- N-United Pte Ltd(2) \n (1,400) \n (1,226)\n\n- Soon Aik Global Pte Ltd(3) \n (3,246) \n (4,418)\n\n- Jurong Barrels & Drums Industries Pte Ltd(1) \n (1) \n - \n\n- Auto Saver Pte Ltd(3) \n (110) \n (133)\n\n- Fleetzone Autoparts (M) Sdn Bhd(3) \n (208) \n (235)\n\n- Director(4) \n (47) \n (739)\n\n  \n    \n   \n\nAmount due to related parties \n (5,467) \n (6,877)\n\n \n\nThe\nrelated parties are controlled by the common directors of the Company as follows:\n\n \n\n(1)\nJimmy\nNeo owns a 50.0% equity stake in EU Holdings Pte Ltd, which in turn is the parent entity of EU Group Pte Ltd and Jurong Barrels &\nDrums Industries Pte Ltd.\n\n(2)\nCE\nNeo is the sole owner of Soon Aik Holdings Pte Ltd (“SA Holdings”) and N-United Pte Ltd (“N-United”). SA\nHoldings is the parent entity of Spare-Parts Zone (Australia) Pty Ltd. Branded Filters Pty Ltd, and an associated entity with Oceania\nPower & Solutions Pty Ltd. in Australia. N-United is the parent entity of PT Heavy Machindo Diesel in Indonesia and Kiwami Corporation\nin Japan\n\n(3)\nSoon\nAik, the parent entity of the Company and is also the parent entity of Auto Saver Pte Ltd and Fleetzone Autoparts (M) Sdn Bhd.\n\n(4)\nJimmy\nNeo is the executive director and chief executive office of the Company, and owns a 25.0% equity stake in the controlling shareholder,\nSoon Aik Global Pte. Ltd.\n\n \n\nF-26\n\n \n\n \n\nIn\nthe ordinary course of business, for the financial years ended December 31, 2025, 2024 and 2023, the Company was involved in certain\ntransactions, either at cost or current market prices and on the normal commercial terms with related parties. The following table provides\nthe transactions with these parties for the financial years as presented (for the portion of such period that they were considered related):\n\n SCHEDULE OF TRANSACTIONS WITH RELATED PARTIES\n\n  \n2025  \n2024  \n2023 \n\n  \nFinancial Years Ended December 31, \n\n  \n2025  \n2024  \n2023 \n\nNature of transactions \n$’000  \n$’000  \n$’000 \n\n  \n   \n   \n  \n\nSale of products \n    \n    \n   \n\n- Spare-Parts Zone (Australia) Pty Ltd(2) \n 764  \n 554  \n 289 \n\n- Branded Filters Pty Ltd(2)  \n 474  \n 658  \n 633 \n\n- Jurong Barrels & Drums Industries Pte Ltd(1) \n 7  \n -  \n - \n\n- Auto Saver Pte Ltd(3)  \n 236  \n 231  \n 243 \n\n- PT Heavy Machindo Diesel(2)  \n 702  \n 644  \n 882 \n\n- Oceania Power & Solutions Pty Ltd(2) \n 75  \n 69  \n 179 \n\n- Soon Aik Global Pte Ltd(3)  \n 1  \n -  \n - \n\nSale of products \n 1  \n -  \n - \n\n \n    \n    \n   \n\nSundry income \n    \n    \n   \n\n- Spare-Parts Zone (Australia) Pty Ltd(2) \n -  \n -  \n - \n\n- Branded Filters Pty Ltd(2) \n 17  \n -  \n - \n\n- Auto Saver Pte Ltd(3)  \n -  \n -  \n 4 \n\n- Oceania Power & Solutions Pty Ltd(2) \n 6  \n 25  \n 25 \n\n- PT Heavy Machindo Diesel(2)  \n 5  \n -  \n - \n\n- Soon Aik Global Pte Ltd(3) \n -  \n -  \n - \n\nSundry income \n -  \n -  \n - \n\n \n    \n    \n   \n\nPurchases \n    \n    \n   \n\n- Branded Filters Pty Ltd(2)  \n 176  \n 99  \n 490 \n\n- PT Heavy Machindo Diesel(2)  \n 1,399  \n 1,334  \n 1,293 \n\n- Oceania Power & Solutions Pty Ltd(2) \n 257  \n 62  \n 176 \n\n- Jurong Barrels & Drums Industries Pte Ltd(1) \n -  \n -  \n 1 \n\n- Auto Saver Pte Ltd(3)  \n 1  \n -  \n - \n\n- Kiwami Corporation(2)  \n 23  \n -  \n - \n\nPurchases \n 23  \n -  \n - \n\n \n    \n    \n   \n\nExpenses \n    \n    \n   \n\n- EU Group Pte Ltd(1)  \n 559  \n 549  \n 545 \n\n- Branded Filters Pty Ltd(2)  \n -  \n -  \n 8 \n\n- Oceania Power & Solutions Pty Ltd(2) \n -  \n -  \n 2 \n\n- Jurong Barrels & Drums Industries Pte Ltd(1) \n 1  \n -  \n - \n\n- Soon Aik Global Pte Ltd(3)  \n 181  \n 150  \n 172 \n\n- Auto Saver Pte Ltd(3)  \n 243  \n 310  \n 332 \n\n- Fleetzone Autoparts (M) Sdn Bhd(3) \n 28  \n 28  \n 22 \n\n- PT Heavy Machindo Diesel(2) \n -  \n -  \n - \n\n- Kiwami Corporation(2) \n -  \n -  \n - \n\n- N-United Pte Ltd(2) \n 43  \n 12  \n - \n\n \n\nThe\nrelated parties are controlled by the common directors of the Company as follows:\n\n \n\n(1)\nJimmy\nNeo owns a 50.0% equity stake in EU Holdings Pte Ltd, which in turn is the parent entity of EU Group Pte Ltd and Jurong Barrels &\nDrums Industries Pte Ltd.\n\n(2)\nCE\nNeo is the sole owner of Soon Aik Holdings Pte Ltd (“SA Holdings”) and N-United Pte Ltd (“N-United”). SA\nHoldings is the parent entity of Spare-Parts Zone (Australia) Pty Ltd. Branded Filters Pty Ltd, and an associated entity with Oceania\nPower & Solutions Pty Ltd. in Australia. N-United is the parent entity of PT Heavy Machindo Diesel in Indonesia and Kiwami Corporation\nin Japan\n\n(3)\nSoon\nAik, the parent entity of the Company and is also the parent entity of Auto Saver Pte Ltd and Fleetzone Autoparts (M) Sdn Bhd.\n\n \n\nApart\nfrom the transactions and balances detailed elsewhere in these accompanying consolidated financial statements, the Company has no other\nsignificant or material related party transactions for the financial years presented.\n\n \n\nF-27\n\n \n\n \n\n**NOTE－12\nCONCENTRATIONS OF RISK**\n\n \n\nThe\nCompany is exposed to the following concentrations of risk:\n\n \n\n(a)\nMajor\ncustomers\n\n \n\nFor\nthe financial years ended December 31, 2025, 2024 and 2023, there was no customer who accounted for 10.0% or more of the Company’s revenues.\n\n \n\n(b)\nMajor\nvendors\n\n \n\nFor\nthe financial years ended December 31, 2025, 2024 and 2023, the vendor who accounted for 10.0% or more of the Company’s purchases\nand its outstanding payable balances as at year end date, is presented as follows:\n\nSCHEDULE OF CONCENTRATIONS OF RISK \n\n  \n2025  \n2024  \n2023 \n\n  \nPercentage of purchases  \nAccounts payable  \nPercentage of purchases  \nAccounts payable  \nPercentage of purchases  \nAccounts payable \n\n  \n%  \n$’000  \n%  \n$’000  \n%  \n$’000 \n\n  \n   \n   \n   \n   \n   \n  \n\nVendor A \n 19.6  \n -  \n 23.9  \n 545  \n 15.8  \n 1,086 \n\n \n\n**NOTE－13\nSUBSEQUENT EVENTS**\n\n \n\nIn\naccordance with ASC Topic 855, *Subsequent Events,* which establishes general standards of accounting for and disclosure of events\nthat occur after the balance sheet date but before condensed consolidated financial statements are issued, the Company has evaluated\nall events or transactions that occurred after December 31, 2025, up through the date the Company issued the audited consolidated financial\nstatements. For the financial year, the Company did not have any material subsequent events other than disclosed above.\n\n \n\nF-28"}