10-Q

UNITED

STATES

SECURITIES

AND EXCHANGE COMMISSION

Washington,

D.C. 20549

---

FORM

10-Q

(MarkOne)

☒

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Forthe Quarterly Period Ended June 30, 2023

Or

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For

the transition period from _____ to _____

Commission

File Number: 001-41037

SOCIETY PASS INCORPORATED

(Exact name of registrant as specified in its charter)

Nevada	83-1019155
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

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701 S. Carson Street, Suite 200 Carson City, Nevada 89701

(Addressof principal executive offices)

(+65)

6518-9385

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of each exchange on which registered
Common<br> Stock, par value $0.0001 per share	SOPA	The<br> Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company" and "emerging growth company”, in Rule 12b-2 of the Exchange Act.

Large<br> accelerated filer ☐	Accelerated<br> filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
	Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule12b-2 of the Exchange Act).

Yes ☐ No ☒

As

of August 8, 2023, there were 28,457,239 shares of the registrant's common stock, $0.0001 par value, outstanding.

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Table

of Contents

		Page
PART<br> I	FINANCIAL<br> INFORMATION	3
Item<br> 1.	Financial<br> Statements (Unaudited)	3
	Condensed<br> Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022	3
	Condensed<br> Consolidated Statements of Operations and Other Comprehensive Loss for the Three And Six Months ended June 30, 2023 and 2022	4
	Condensed<br> Consolidated Statements of Stockholders’ Equity for the Three and Six Months ended June 30, 2023 and 2022	5
	Condensed<br> Consolidated Statements of Cash Flows for the Six Months ended June 30, 2023 and 2022	7
	Notes<br> to Condensed Consolidated Financial Statements	8
Item<br> 2.	Management’s<br> Discussion and Analysis of Financial Condition and Results of Operations	50
Item<br> 3.	Quantitative<br> and Qualitative Disclosures About Market Risk	68
Item<br> 4.	Controls<br> and Procedures	68
PART<br> II	OTHER<br> INFORMATION	69
Item<br> 1.	Legal<br> Proceedings	69
Item<br> 1A.	Risk<br> Factors	69
Item<br> 2.	Unregistered<br> sales of Equity Securities and Use of Proceeds	69
Item<br> 3.	Defaults<br> Upon Senior Securities	69
Item<br> 4.	Mining<br> Safety Disclosure	69
Item<br> 5.	Other<br> Information	69
Item<br> 6.	Exhibits	70
SIGNATURES		71

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PART

I - FINANCIAL INFORMATION

Item1. Financial Statements

SOCIETY

PASS INCORPORATED

CONDENSED

CONSOLIDATED BALANCE SHEETS

AS

OF JUNE 30, 2023 AND DECEMBER 31, 2022

(Currencyexpressed in United States Dollars (“US$”))

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			December<br> 31, 2022 <br>(Audited)
ASSETS
Current<br> assets:
Cash<br> and cash equivalents	10,839,434		$	18,930,986
Restricted<br> cash	80,631			72,350
Accounts<br> receivable, net	1,244,260			951,325
Inventories	200,359			310,932
Contract<br> assets	303,001			20,310
Deposits,<br> prepayments and other receivables	1,762,319			2,711,042
Deferred<br> tax assets	164,836			—
Total<br> current assets	14,594,840			22,996,945
Non-current<br> assets:
Intangible<br> assets, net	6,778,942			7,458,089
Goodwill	176,922			—
Property,<br> plant and equipment, net	813,315			706,038
Right<br> of use assets, net	1,609,461			1,537,670
Total<br> non-current assets	9,378,640			9,701,797
TOTAL<br> ASSETS	23,973,480		$	32,698,742
LIABILITIES<br> AND SHAREHOLDERS’ DEFICIT
Current<br> liabilities:
Accounts<br> payables	1,732,961		$	1,296,571
Contract<br> liabilities	1,251,633			1,405,090
Accrued<br> liabilities and other payables	6,500,647			8,325,225
Due<br> to related parties	64,181			22,311
Deferred<br> tax liabilities	69,000			69,000
Operating<br> lease liabilities	555,591			467,938
Loan	24,378			28,164
Total<br> current liabilities	10,198,391			11,614,299
Non-current<br> liabilities
Operating<br> lease liabilities	1,065,261			1,073,126
TOTAL<br> LIABILITIES	11,263,652			12,687,425
COMMITMENTS<br> AND CONTINGENCIES
Convertible<br> preferred shares: 0.0001 par value, 5,000,000 shares authorized, 4,916,500 and 4,916,500 shares undesignated as of June 30, 2023<br> and December 31, 2022, respectively	—			—
Series<br> A shares: 10,000 shares designated; 0 and 0 Series A shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively	—			—
Series<br> B shares: 10,000 shares designated; 0 and 2,548 Series B shares issued and outstanding as of June 30, 2023 and December 31, 2022,<br> respectively	—			—
Series<br> B-1 shares: 15,000 shares designated; 0 and 0 Series B-1 shares issued and outstanding as of June 30, 2023 and December 31, 2022,<br> respectively	—			—
Series<br> C shares: 15,000 shares designated; 0 and 0 Series C shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively,<br> net of issuance cost	—			—
Series<br> C-1 shares: 30,000 shares designated; 0 and 0 Series C-1 shares issued and outstanding as of June 30, 2023 and December 31, 2022,<br> respectively, net of issuance cost	—			—
SHAREHOLDERS’<br> EQUITY
Series<br> X Super Voting Preferred Stock, 0.0001 par value, 3,500 shares designated; 3,500 and 3,500 Series X shares issued and outstanding<br> as of June 30, 2023 and December 31, 2022, respectively	—			—
Common<br> shares: 0.0001 par value, 95,000,000 shares authorized; 28,457,239and 27,082,849 shares issued and outstanding as of June 30, 2023<br> and December 31, 2022, respectively	2,845			2,708
Additional<br> paid-in capital	103,694,273			101,427,160
Less:<br> Common shares held in treasury, at cost; 611,605 and 0 shares at June 30, 2023 and December 31, 2022	(640,525	)		—
Accumulated<br> other comprehensive gain (loss)	(184,252	)		56,527
Accumulated<br> deficit	(89,748,748	)		(81,138,563	)
Total<br> equity attributable to Society Pass Incorporated	13,123,593			20,347,832
Non-controlling<br> interest	(413,765	)		(336,515	)
TOTAL<br> EQUITY	12,709,828			20,011,317
TOTAL<br> LIABILITIES AND EQUITY	23,973,480		$	32,698,742

All values are in US Dollars.

See

accompanying notes to unaudited condensed consolidated financial statements.

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SOCIETY

PASS INCORPORATED

CONDENSED

CONSOLIDATED STATEMENTS OF OPERATIONS AND

OTHER

COMPREHENSIVE LOSS

FOR

THE THREE AND SIX MONTHS ENDED June 30, 2023 AND 2022

(Currencyexpressed in United States Dollars (“US$”))

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	Three<br> months ended June 30,						Six<br> months ended June 30,
	2023			2022			2023			2022
Revenue,<br> net
Sales<br> – online ordering	$	112,169		$	482,410		$	369,771		$	916,551
Sales<br> – digital marketing		1,510,960			—			2,794,734			—
Sales<br> – online ticketing and reservation		556,042			—			1,042,749			—
Sales<br> – data		6,369			5,642			20,671			5,642
Software<br> sales		1,692			10,941			1,887			21,890
Hardware<br> sales		—			69			—			69
Total<br> revenue		2,187,232			499,062			4,229,812			944,152
Cost<br> of sales:
Cost<br> of online ordering		(124,489	)		(456,968	)		(359,735	)		(852,858	)
Cost<br> of digital marketing		(1,306,684	)		—			(2,270,845	)		—
Cost<br> of online ticketing and reservation		(95,067	)		—			(171,544	)		—
Cost<br> of data		(14,708	)		(975	)		(33,354	)		(975	)
Software<br> sales		(69,125	)		(41,212	)		(130,938	)		(105,205	)
Hardware<br> sales		—			(45	)		—			(45	)
Total<br> cost of revenue		(1,610,073	)		(499,200	)		(2,966,416	)		(959,083	)
Gross<br> income (loss)		577,159			(138	)		1,263,396			(14,931	)
Operating<br> expenses:
Sales<br> and marketing expenses		(98,714	)		(253,290	)		(229,378	)		(449,392	)
Software<br> development costs		(15,209	)		(17,320	)		(29,128	)		(36,868	)
Impairment<br> loss		—			—			—			(528,583	)
General<br> and administrative expenses		(3,879,049	)		(7,345,364	)		(9,870,935	)		(13,186,062	)
Total<br> operating expenses		(3,992,972	)		(7,615,974	)		(10,129,441	)		(14,200,905	)
Loss<br> from operations		(3,415,813	)		(7,616,112	)		(8,866,045	)		(14,215,836	)
Other<br> income (expense):
JV<br> income		3,696			—			6,844			—
Gain<br> on early lease termination		—			—			1,064			—
Interest<br> income		59,208			6,027			99,194			6,072
Interest<br> expense		(300	)		(384	)		(652	)		(4,429	)
Waiver<br> of loan payable		15,200			—			15,200			—
Written-off<br> of fixed assets		(2,583	)		—			(2,583	)		—
Other<br> income		32,416			24,672			49,203			38,293
Total<br> other income (expense)		107,637			30,315			168,270			39,936
Loss<br> before income taxes		(3,308,176	)		(7,585,797	)		(8,697,775	)		(14,175,900	)
Income<br> taxes		(1,054	)		(797	)		(1,668	)		(2,099	)
NET<br> LOSS		(3,309,230	)		(7,586,594	)		(8,699,443	)		(14,177,999	)
NET<br> LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST		6,028			(82,270	)		(89,258	)		(125,297	)
NET<br> LOSS ATTRIBUTABLE TO NON-SOCIETY PASS INCORPORATED	$	(3,315,258	)	$	(7,504,324	)	$	(8,610,185	)	$	(14,052,702	)
Other<br> comprehensive income (loss):
Net<br> loss		(3,309,230	)		(7,586,594	)		(8,699,443	)		(14,177,999	)
Foreign<br> currency translation adjustment		171,645			66,875			(228,771	)		21,699
COMPREHENSIVE<br> LOSS	$	(3,137,585	)	$	(7,519,719	)	$	(8,928,214	)	$	(14,156,300	)
Net<br> income (loss) attributable to non-controlling interest		6,028			(82,270	)		(89,258	)		(125,297	)
Foreign<br> currency translation adjustment attributable to non-controlling interest		30,207			6,371			12,008			3,356
Comprehensive<br> loss attributable to Society Pass Incorporated	$	(3,173,820	)	$	(7,443,820	)	$	(8,850,964	)	$	(14,034,359	)
Net<br> loss per share attributable to Society Pass Incorporated:
–<br> Basic	$	(0.12	)	$	(0.31	)	$	(0.30	)	$	(0.61	)
–<br> Diluted	$	(0.12	)	$	(0.31	)	$	(0.30	)	$	(0.61	)
Weighted<br> average common shares outstanding
–<br> Basic		28,171,523			24,347,607			27,630,193			23,126,643
–<br> Diluted		28,171,523			24,347,607			27,630,193			23,126,643

See

accompanying notes to unaudited condensed consolidated financial statements.

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SOCIETY

PASS INCORPORATED

CONDENSED

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ DEFICIT

FOR

THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Currencyexpressed in United States Dollars (“US$”))

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		Three<br> and Six months ended June 30, 2023
	Preferred Stock			Common Stock			Treasury Stock
	Number of Shares		Amount	Number of Shares		Amount	Number of Shares		Amount			Additional Paid in Capital		Accumulated other comprehensive income			Accumulated deficits			Non-controlling interest			Total Stockholders' Deficit
Balances<br> at January 1, 2023	3,500	$	—	27,082,849	$	2,708	—	$	—		$	101,427,160	$	56,527		$	(81,138,563	)	$	(336,515	)	$	20,011,317
Shares<br> issued for services	—		—	196,078		11	—		—			546,489		—			—			—			546,500
Shares<br> issued for accrued salaries	—		—	109,156		20	—		—			113,480		—			—			—			113,500
Shares<br> issued upon the exercise options				783,440		78	—		—			1,226,715		—			—			—			1,226,793
Shares<br> repurchase during the period	—		—	—		—	511,760		(541,988	)		—		—			—			—			(541,988	)
Foreign<br> currency translation adjustment	—		—	—		—	—		—			—		(382,217	)		—			(18,199	)		(541,988	)
Net<br> loss for the year	—		—	—		—	—		—			—		—			(5,294,927	)		(95,286	)		(5,390,213	)
Balances<br> at March 31, 2023	3,500	$	—	28,171,523	$	2,817	511,760	$	(541,988	)	$	103,313,844	$	(325,690	)	$	(86,433,490	)	$	(450,000	)	$	15,565,493
Shares<br> issued for services	—		—	—		—	—		—			149,625		—			—			—			149,625
Shares<br> issued for accrued salaries	—		—	285,718		28	—		—			230,804		—			—			—			230,832
Shares<br> repurchase during the period	—		—	—		—	99,845		(98,537	)		—		—			—			—			(98,537	)
Foreign<br> currency translation adjustment	—		—	—		—	—		—			—		141,438			—			30,207			171,645
Net<br> income (loss) for the year	—		—	—		—	—		—			—		—			(3,315,258	)		6,028			(3,309,230	)
Balances<br> at June 30, 2023	3,500	$	—	28,457,241	$	2,845	611,605	$	(640,525	)	$	103,694,273	$	(184,252	)	$	(89,748,748	)	$	(413,765	)	$	12,709,828

See

accompanying notes to unaudited condensed consolidated financial statements.

| 5 |

| --- | | | Three<br> and Six months ended June 30, 2022 | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | Preferred<br> Stock | | | Common<br> stock | | | | | | | | | | | | | | | | | | | | | Number<br> of shares | | Amount | Number of<br><br> shares | | Amount | | Additional<br> paid-in<br> capital | | | Accumulated<br> other comprehensive (loss) income | | | Accumulated<br><br> deficits | | | Non-controlling<br><br> interests | | | Total<br> equity | | | Balance as of January 1, 2022 | **** | 3,500 | $ | — | 19,732,406 | $ | 1,973 | $ | 79,833,290 | **** | $ | (54,340 | ) | $ | (47,352,456 | ) | $ | (102,784 | ) | $ | 32,325,683 | **** | | Shares<br> issued for services | | — | | — | 116,000 | | 11 | | 1,632,162 | | | — | | | — | | | — | | | 1,632,163 | | | Shares<br> issued for accrued salaries | | — | | — | 25,444 | | 3 | | 86,466 | | | — | | | — | | | — | | | 86,469 | | | Sale<br> of units in public offering (net of expense) | | — | | — | 3,484,845 | | 348 | | 10,402,543 | | | — | | | — | | | — | | | 10,402,891 | | | Shares<br> issued to acquire subsidiary | | — | | — | 226,629 | | 23 | | 799,977 | | | — | | | — | | | — | | | 800,000 | | | Share<br> issued upon the exercise of warrant | | — | | — | 160,000 | | 16 | | 356,984 | | | — | | | — | | | — | | | 357,000 | | | Share<br> issued for accrued services | | — | | — | 13,273 | | 1 | | 119,456 | | | — | | | — | | | — | | | 119,457 | | | Fair<br> value of stock  option granted for director’s bonus | | — | | — | — | | — | | 303,990 | | | — | | | — | | | — | | | 303,990 | | | Shares<br> issued to acquire non-controlling interest | | — | | — | 2,497 | | — | | 22,470 | | | | | | | | | | | | 22,470 | | | Foreign<br> currency translation adjustment | | — | | — | — | | — | | — | | | (42,161 | ) | | — | | | (3,015 | ) | | (45,176 | ) | | Net<br> loss for the period | | — | | — | — | | — | | — | | | — | | | (6,548,378 | ) | | (43,027 | ) | | (6,591,405 | ) | | Balance as of March 31, 2022 | **** | 3,500 | $ | — | 23,761,094 | $ | 2,375 | $ | 93,557,338 | **** | $ | (96,501 | ) | $ | (53,900,834 | ) | $ | (148,826 | ) | $ | 39,413,552 | **** | | Share<br> issued upon the exercise of warrant | | — | | — | 27,300 | | 3 | | 55,887 | | | — | | | — | | | — | | | 55,890 | | | Shares<br> issued for services | | — | | — | 370,000 | | 37 | | 1,694,702 | | | — | | | — | | | — | | | 1,694,739 | | | Shares<br> issued for accrued salaries | | — | | — | 29,353 | | 3 | | 61,747 | | | — | | | — | | | — | | | 61,750 | | | Shares<br> issued for director’s remuneration | | — | | — | 316,092 | | 32 | | 899,964 | | | — | | | — | | | — | | | 899,996 | | | Shares<br> issued to acquire subsidiary | | — | | — | 40,604 | | 4 | | 83,236 | | | — | | | — | | | — | | | 83,240 | | | Fair<br> value of stock option granted for director’s bonus | | — | | — | — | | — | | (303,990 | ) | | — | | | — | | | — | | | (303,990 | ) | | Reverse<br> shares issued to acquire non-controlling interest | | — | | — | — | | — | | (22,470 | ) | | — | | | — | | | — | | | (22,470 | ) | | Net<br> loss for the period | | — | | — | — | | — | | — | | | — | | | (7,504,324 | ) | | (82,270 | ) | | (7,586,594 | ) | | Foreign<br> currency translation adjustment | | — | | — | — | | — | | — | | | 60,504 | | | — | | | 6,371 | | | 66,875 | | | Balance as of June 30, 2022 | **** | 3,500 | $ | — | 24,544,443 | $ | 2,454 | $ | 96,026,414 | **** | $ | (35,997 | ) | $ | (61,405,158 | ) | $ | (224,725 | ) | $ | 34,362,988 | **** |

See

accompanying notes to unaudited condensed consolidated financial statements.

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SOCIETY

PASS INCORPORATED

CONDENSED

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR

THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Currencyexpressed in United States Dollars (“US$”))

---

	Six<br> Months ended June 30,
	2023			2022
Cash<br> flows from operating activities:
Net<br> loss	$	(8,699,443	)	$	(14,177,999	)
Adjustments<br> to reconcile net loss to net cash used in operating activities
Depreciation<br> and amortization		935,531			1,614,617
Gain<br> from early lease termination		(1,064	)		—
Written-off<br> of fixed assets		2,583			—
Waiver<br> of loan payable		(15,200	)		—
Impairment<br> loss		—			528,583
Financing<br> charges – first insurance funding		—			4,429
Stock<br> based compensation for services		2,267,250			4,208,568
Deferred<br> tax assets		(164,836	)		—
Change<br> in operating assets and liabilities:
Accounts<br> receivable		(269,800	)		8,699
Inventories		110,573			(111,060	)
Deposits,<br> prepayments and other receivables		1,005,716			2,470,800
Contract<br> assets		(282,691	)		—
Contract<br> liabilities		(203,281	)		(20,611	)
Accounts<br> payables		425,124			104,097
Accrued<br> liabilities and other payables		(2,047,472	)		436,712
Advances<br> to related parties		57,070			(502,014	)
Right<br> of use assets		279,986			139,420
Operating<br> lease liabilities		(286,297	)		(152,715	)
Net<br> cash used in operating activities		(6,886,251	)		(5,448,474	)
Cash<br> flows from investing activities:
Purchase<br> of property, plant, and equipment		(244,454	)		(58,901	)
Purchase<br> of subsidiary		—			(200,000	)
Cash<br> from purchase of subsidiary and business operation		26,933			31,028
Net<br> cash used in investing activities		(217,521	)		(227,873	)
Cash<br> flows from financing activities:
Repurchase<br> of common share		(640,525	)		—
Proceed<br> from the issuance of preferred stock and exercise of warrants into preferred stock		—			412,890
Proceeds<br> from public offering, net of offering expenses		—			10,402,891
Repayment<br> of loan		—			(464,368	)
Net<br> cash provided by (used in) financing activities		(640,525	)		10,351,413
Effect<br> on exchange rate change on cash and cash equivalents		(338,975	)		73,003
NET<br> CHANGE IN CASH AND CASH EQUIVALENTS		(8,083,271	)		4,748,069
CASH<br> AND CASH EQUIVALENT AT BEGINNING OF YEAR		19,003,336			23,264,777
CASH<br> AND CASH EQUIVALENT AT END OF YEAR	$	10,920,605		$	28,012,846
Supplemental<br> disclosure of cash flow information:
Cash<br> paid for interest	$	652		$	—
Cash<br> paid for income tax	$	—		$	—
NON-CASH<br> INVESTING AND FINANCING ACTIVITIES
Shares<br> issued to acquire subsidiary	$	—		$	883,240
Shares<br> issued for accrued services	$	—		$	119,457
Impact<br> of adoption of ASC 842 - lease obligation and ROU asset	$	—		$	243,186
Common<br> stock issued for accrued salaries	$	—		$	209,969

See

accompanying notes to unaudited condensed consolidated financial statements.

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SOCIETY

PASS INCORPORATED

NOTES

TO CONSOLIDATED FINANCIAL STATEMENTS

FOR

THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Currencyexpressed in United States Dollars (“US$”))

---

NOTE－1 DESCRIPTION

OF BUSINESS AND ORGANIZATION

Society Pass Incorporated (the "Company")was incorporated in the State of Nevada on June 22, 2018, under the name of Food Society Inc. On October 3, 2018, the Company changed its company name to Society Pass Incorporated. The Company, through its subsidiaries, mainly sells and distributes the hardware and software for a Point of Sales (POS)application in Vietnam. The Company also has online lifestyle platform to enable consumers to purchase high-end brands of all categories under its own brand name of "Leflair." The Company has made several acquisitions in calendar year 2022 and 2023, as follows:

•	In<br> February 2022, the Company completed the acquisition of 100% of the equity interest<br> of New Retail Experience Incorporated and Dream Space Trading Company Limited through its<br> subsidiary – Push Delivery Pte Limited, which two companies mainly provide an on-line<br> grocery and food delivery platform in the Philippines and Vietnam respectively.
•	In<br> May 2022, the Company completed another acquisition of 100% of the equity interests<br> of Gorilla Networks Pte Ltd, Gorilla Mobile Pte Ltd, Gorilla Connects Pte Ltd and Gorilla<br> Networks (VN)Co Ltd (collectively, "Gorilla Networks"), a food delivery service.
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•	On<br> July 7, 2022, the Company and its wholly owned subsidiary Thoughtful Media Group Incorporated<br> collectively acquired 100% of the equity interests of Thoughtful Media Group Incorporated<br> and AdActive Media, Inc. (collectively "Thoughtful Media"), whose business provides<br> services to advertisers that helps to make internet advertising more effective.
---	---
•	On<br> July 21, 2022, the Company acquired 100% of the equity interests of Mangan PH Food Delivery<br> Service Corp. ("Mangan), a Philippines restaurant and grocery delivery business.
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•	On<br> August 15, 2022, the Company and its 95%-owned subsidiary SOPA Technology Pte, Ltd.,<br> collectively acquired 75% of the outstanding capital stock of Nusatrip International Pte<br> Ltd. ("Nusatrip")and also purchased all of the outstanding capital stock of PT<br> Tunas Sukses Mandiri ("Tunas"), a company existing under the law of the Republic<br> of Indonesia, and both engaged in online ticketing and reservation services.
---	---
•	On<br> April 1, 2023, the Company’s 100% owned subsidiary Thoughtful Media Group Inc and Adactive<br> Media CA Inc acquired 100% of outstanding capital stock of PT Wahana Cerita Indonesia, an<br> Indonesia company operating digital marketing and event organizing.
---	---
•	On<br> April 1, 2023, the Company’s 99% owned subsidiary Nusatrip International Pte. Ltd.<br> acquired 100% of the outstanding capital stock of Mekong Leisure Travel Join Stock Company,<br> a Vietnam travel agency.
---	---

On February 10, 2021, the Company effected a 750 for 1 forward stock split of the issued and outstanding shares of the Company's common stock. The number of authorized shares and par value remain unchanged. All share and per share information in these financial statements and its footnotes have been retroactively adjusted for the years presented, unless otherwise indicated, to give effect to the forward stock split.

On September 21, 2021, the Company effected a 1 for 2.5 reverse stock split of the issued and outstanding shares of the Company's common stock. The number of authorized shares and par value remain unchanged. All share and per share information in these financial statements and its footnotes have been retroactively adjusted for the years presented, unless otherwise indicated, to give effect to the reverse stock split.

The forward stock split and reverse stock split transactions described above had no effect on the stated value of the preferred stock and the number of designated shares and outstanding shares of each series of preferred stock was unchanged in accordance with the respective certificate of designations. The number of authorized shares of preferred stock also remained unchanged.

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The

registration statement for the Company's Initial Public Offering became effective on November 8, 2021. On November 8, 2021, the Company entered into an underwriting agreement with Maxim Group LLC (the "Underwriter")related to the offering of 2,888,889 shares of the Company's common stock (the "Firm Shares"), at a public offering price of $9.00 per share. Under the terms of the Underwriting Agreement, the Company granted the Underwriters an option, exercisable for 45 days, to purchase an additional 236,111 shares of common stock (the "Option Shares")to cover over-allotments. The Company raised gross proceeds of $26,000,001 and $2,124,999 from its initial public offering and from the sale of the Option Shares, respectively.

On

February 8, 2022, the Company entered into an underwriting agreement (the "Underwriting Agreement")with the "Underwriter, related to the offering of 3,030,300 shares (the "Shares")of the Company's common stock and warrants to purchase up to 3,030,300 shares of common stock of the Company (the "Warrants"). Each Share was sold together with one Warrant to purchase one Share at a combined offering price of $3.30. In addition, the Company granted the Underwriter a 45-day over-allotment option to purchase up to an additional 454,545 Shares and/or Warrants, at the public offering price, less discounts and commissions. On February 10, 2022, the Underwriter gave notice to the Company of the full exercise of their over-allotment option and that delivery of the overallotment securities was made on February 11, 2022.

On

June 30, 2023, NextGen Retail Inc., a Nevada corporation (the “Buyer”), a wholly-owned subsidiary of the Company (the “Registrant”), entered into a Securities Purchase Agreement with Story-I Ltd., an Australian corporation (“Story-I Australia”), Story-I Pte Ltd., a Singapore corporation (“Story-I Singapore”), a wholly-owned subsidiary of Story-I Australia, and Michael Chan, to purchase 95% of the outstanding shares (the “Majority Shares”) of PT Inetindo Infocom (the “Company”), an Indonesian company and retail reseller of Apple computers and other electronics in Indonesia. The consideration for the Majority Shares to be paid to Story-I Australia and Story-I Singapore by the Buyer is AUS$2,787,173, approximately US$ 1.85 million based on current exchange rates.

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Description of subsidiaries incorporated by the Company

Schedule of Description of subsidiaries

Schedule of Description of subsidiaries
Name	Place and date of incorporation	Principal activities	Particulars<br> of registered/ paid up share capital
Society<br> Technology LLC	United<br> States, January 24, 2019	IP<br> Licensing	US1	100	%
SOPA<br> Cognitive Analytics Private Limited	India<br> <br><br> February 5, 2019	Computer<br> sciences consultancy and data analytics	1,238,470	100	%
SOPA<br> Technology Pte. Ltd.	Singapore,<br> <br><br> June 4, 2019	Investment<br> holding	SGD<br> 1,250,000	95	%
SOPA<br> Technology Company Limited	Vietnam<br> <br><br> October 1, 2019	Software<br> production	Registered:<br> VND 2,307,300,000;<br> Paid up: VND 1,034,029,911	100	%
Hottab<br> Pte Ltd. (HPL)	Singapore<br> <br><br> January 17, 2015	Software<br> development and marketing for the F&B industry	SGD<br> 620,287.75	100	%
Hottab<br> Vietnam Co. Ltd	Vietnam<br><br> April 17, 2015	Sale<br> of POS hardware and software	VND<br> 1,000,000,000	100	%
Thoughtful<br> Media Group Co. Ltd (FKA: Hottab Asset Company Limited)	Vietnam<br><br> July 25, 2019	Digital<br> marketing	VND<br> 5,000,000,000	100	%
Nextgen<br> Retail Incorporated (FKA: Leflair Incorporated)	United<br> States<br><br> December 7, 2021	Investment<br> holding	US1	100	%
SOPA<br> Capital Limited	United<br> Kingdom <br><br> December 07, 2021	Investment<br> holding	1	100	%
SOPA<br> (Phil) Incorporated	Philippines<br> <br><br> Jan 11, 2022	Investment<br> holding	PHP<br> 11,000,000	100	%
New<br> Retail Experience Incorporated	Philippines<br> <br><br> Jan 16, 2020	On-line<br> Grocery delivery platform	PHP<br> 3,750,000	100	%
Dream<br> Space Trading Co. Ltd	Vietnam<br> <br><br> May 23, 2018	On-line<br> Grocery and food delivery platform	VND<br> 500,000,000	100	%
Push<br> Delivery Pte Ltd	Singapore<br> <br><br> January 7, 2022	Investment<br> holding	US2,000	100	%
Gorilla<br> Networks Pte. Ltd.	Singapore<br> <br><br> September 3, 2019	Investment<br> holding	US2,620,000<br> and SGD 730,000	100	%
Gorilla<br> Connect Pte. Ltd.	Singapore<br> <br><br> May 18, 2022	Telecommunications<br> resellers	SGD<br> 100	100	%
Gorilla<br> Mobile Singapore Pte. Ltd.	Singapore<br><br> <br>August<br> 6, 2020	Telecommunications<br> resellers	SGD<br> 100	100	%
Gorilla<br> Networks (VN) LLC	Vietnam<br> <br><br> December 16, 2020	Telecommunications<br> resellers	VND<br> 233,000,000	100	%
Thoughtful<br> Media Group Incorporated	United<br> States<br><br> <br>June<br> 28,2022	Investment<br> holding	US10	100	%
Thoughtful<br> (Thailand) Co. Ltd	Thailand<br> <br><br> September 2, 2014	Digital<br> marketing	THB<br> 4,000,000	99.75	%
AdActive<br> Media CA Inc.	United<br> States <br><br> April 12, 2010	Digital<br> marketing	US252	100	%
PT<br> Tunas Sukses Mandiri	Indonesia<br> <br><br> February 8, 2010	Online<br> ticketing and reservation	IDR<br> 26,000,000	99	%
Nusatrip<br> Malaysia Sdn Bhd	Malaysia<br> <br><br> March 1, 2017	Online<br> ticketing and reservation	MYR<br> 52,000	99	%
Nusatrip<br> Singapore Pte Ltd	Singapore<br> <br><br> December 6, 2016	Online<br> ticketing and reservation	SGD<br> 212,206	99	%
Nusatrip<br> International Pte Ltd	Singapore<br> <br><br> January 9, 2015	Online<br> ticketing and reservation	SGD<br> 905,006.51	99	%
PT<br> Wahana Cerita Indonesia	Indonesia<br><br> <br>January<br> 14, 2022	Digital<br> marketing and event organizer	IDR<br> 51,000,000	100	%
Mekong<br> Leisure Travel Joint Stock Company	Vietnam<br><br> <br>October<br> 6, 2011	Online<br> ticketing, reservation and system	VND<br> 875,460,000	99	%
Sopa<br> Incorporated	United<br> States<br><br> <br>May<br> 22, 2023	Investment<br> holding	Preferred:<br> US1,000 Common:<br> US20,000	100	%
Nusatrip<br> Incorporated	United<br> States<br><br> <br>May<br> 22, 2023	Investment<br> holding	Preferred:<br> US1,000 Common: US20,000	100	%

All values are in US Dollars.

The Company and its subsidiaries are hereinafter referred to as (the “Company”).

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On

February 23, 2023, Society Pass Incorporated acquired additional issued capital in Nusatrip International Pte Ltd of 2,225,735 number of ordinary stock and increased its shareholding from 75% to 99%, and to the subsidiaries within the group.

On

May 22, 2023, Thoughtful Media Group Inc and Society Pass Inc acquired additional issued capital in Thoughtful (Thailand) Co Ltd of 397,000 and 2,000 number of ordinary stocks amounted to THB 1,985,000 and THB 10,000 respectively. Total shareholding interest remain unchanged.

NOTE－2 LIQUIDITY

AND CAPITAL RESOURCES

The accompanying unaudited condensed consolidated financial statements have been prepared using the going concern basis of accounting, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

As

of June 30, 2023, the Company had cash balances of $10,920,065, a working capital surplus of $4,396,449 and accumulated deficit $89,748,748. For the six months ended June 30, 2023, the Company had a net loss of $8,699,443 and net cash used in operating activities of $6,886,251. Net cash used in investing activities was $217,521. Net cash used in financing activities was $640,525, resulting principally from share repurchase.

While the Company believes that it will be able to continue to grow the Company's revenue base and control expenditures, there is no assurance that it will be able to achieve these goals. As a result, the Company continually monitors its capital structure and operating plans and evaluates various potential funding alternatives that may be needed to finance the Company's business development activities, general and administrative expenses and growth strategy.

GlobalEvents

The Russian-Ukraine war and the supply chain disruption have not affected any specific segment of our business.

NOTE－3 SUMMARY

OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited condensed consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying condensed consolidated financial statements and notes.

• Basis of presentation

The Company has prepared the accompanying unaudited condensed financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC")for interim financial reporting. These financial statements are unaudited and, in our opinion, include all adjustments consisting of normal recurring adjustments and accruals necessary for a fair presentation of our condensed balance sheets, statements of operations and other comprehensive loss, statements of stockholders' deficit and cash flows for the periods presented. Operating results for the periods presented are not necessarily indicative of the results that may be expected for any subsequent quarter or for the full year ending December 31, 2023 due to various factors. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States ("GAAP")have been omitted in accordance with the rules and regulations of the SEC. These condensed consolidated financial statements should be read in conjunction with the 2022 audited financial statements and accompanying notes filed with the SEC.

• Emerging Growth Company

We are an “emerging growth company” under the JOBS Act. For as long as we are an “emerging growth company,” we are not required to: (i)comply with any new or revised financial accounting standards that have different effective dates for public and private companies until those standards would otherwise apply to private companies, (ii)provide an auditor’s attestation report on management’s assessment of the effectiveness of internal control over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act, (iii)comply with any new requirements adopted by the Public Company Accounting Oversight Board (“PCAOB”)or a supplement to the auditor’s report in which the auditor would be required to provide additional information about the audit and the financial statements of the issuer or (iv)comply with any new audit rules adopted by the PCAOB after April 5, 2012, unless the SEC determines otherwise. However, we have elected to “opt out” of the extended transition period discussed in (i)and will therefore comply with new or revised accounting standards on the applicable dates on which the adoption of such standards are required for non-emerging growth companies. Section 107 of the JOBS Act provides that our decision to opt out of such extended transition period for compliance with new or revised accounting standards is irrevocable.

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• Use of estimates and assumptions

In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet and revenues and expenses during the years reported. Actual results may differ from these estimates. If actual results significantly differ from the Company's estimates, the Company's financial condition and results of operations could be materially impacted. Significant estimates in the period include the allowance for doubtful accounts on accounts receivable, the incremental borrowing rate used to calculate right of use assets and lease liabilities, valuation and useful lives of intangible assets, impairment of long-lived assets, valuation of common stock and stock warrants, stock option valuations, imputed interest on amounts due to related parties, inventory valuation, revenue recognition, the allocation of purchase consideration in business combinations, and deferred tax assets and the related valuation allowance.

• Basis of consolidation

The condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company balances and transactions have been eliminated upon consolidation.

• Business combination

The Company follows Accounting Standards Codification ("ASC")ASC Topic 805, Business Combinations ("ASC 805")and ASC Topic 810, Consolidation ("ASC 810"). ASC Topic 805 requires most identifiable assets, liabilities, non-controlling interests, and goodwill acquired in a business combination to be recorded at "fair value." The statement applies to all business combinations. Under ASC 805, all business combinations are accounted for by applying the acquisition method. Accounting for the resulting goodwill requires significant management estimates and judgment. Management performs periodic reviews of the carrying value of goodwill to determine whether events and circumstances indicate that an impairment in value may have occurred. A variety of factors could cause the carrying value of goodwill to become impaired. A write-down of the carrying value of goodwill could result in a non-cash charge, which could have an adverse effect on the Company's results of operations.

• Noncontrolling interest

The Company accounts for noncontrolling interests in accordance with ASC Topic 810, which requires the Company to present noncontrolling interests as a separate component of total shareholders' equity on the consolidated balance sheets and the consolidated net loss attributable to its noncontrolling interest be clearly identified and presented on the face of the consolidated statements of operations and comprehensive loss.

• Segment reporting

ASC Topic 280, Segment Reporting ("Topic 280")establishes standards for reporting information about operating segments on a basis consistent with the Company's internal organization structure as well as information about geographical areas, business segments and major customers in unaudited condensed consolidated financial statements. The Company currently operates in four reportable operating segments: (i)Online Grocery and Food and Groceries Deliveries, (ii)Digital marketing, (iii)Online ticketing and reservation, (iv)Telecommunications Reseller, (v)e-Commerce, and (vi)Merchant Point of Sale ("merchant POS").

• Cash and cash equivalents

Cash

and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. As of June 30, 2023 and December 31,2022, the cash and cash equivalents excluded restricted cash amounted to $10,839,434 and $18,930,986, respectively.

The

Company currently has bank deposits with financial institutions in the U.S. which exceed FDIC insurance limits. FDIC insurance provides protection for bank deposits up to $250,000, so there were uninsured balance of $3,846,897 and $10,431,681 as of June 30, 2023 and December 31, 2022, respectively. In addition, the Company has uninsured bank deposits of $6,273,262 and $$12,032,534 with a financial institution outside the U.S as of June 30, 2023 and December 31, 2022, respectively. All uninsured bank deposits are held at high quality credit institutions.

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• Restricted cash

Restricted

cash refers to cash that is held by the Company for specific reasons and is, therefore, not available for immediate ordinary business use. The restricted cash represented fixed deposit maintained in bank accounts that are pledged. As of June 30, 2023 and December 31, 2022, the restricted cash amounted to $80,631 and $72,350, respectively.

• Accounts receivable

Accounts receivables are recorded at the amounts that are invoiced to customers, do not bear interest, and are due within contractual payment terms, generally 30 to 90-days from completion of service or the delivery of a product. Credit is extended based on an evaluation of a customer's financial condition, the customer's creditworthiness and their payment history. Accounts receivable outstanding longer than the contractual payment terms are considered past due. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. Quarterly, the Company specifically evaluates individual customer's financial condition, credit history, and the current economic conditions to monitor the progress of the collection of accounts receivables. The Company records bad debt expense and records an allowance for doubtful accounts for any estimated losses resulting from the inability of its customers to make required payments. For receivables that are past due or not being paid according to payment terms, appropriate actions are taken to pursue all means of collection, including seeking legal resolution in a court of law. Account balances are charged off against the allowance for doubtful accounts after all means of collection have been exhausted and the potential for recovery is considered remote. Currently, the Company does not have any off-balance-sheet credit exposure related to its customers, and as of both June 30, 2023 and December 31, 2022, there was no need for allowance for doubtful accounts.

• Inventories

Inventories

are stated at the lower of cost or net realizable value, cost being determined on a first-in-first-out method. Costs include hardware equipment and peripheral costs which are purchased from the Company's suppliers as merchandized goods. The Company provides inventory allowances based on excess and obsolete inventories determined principally by customer demand. During the six months ended June 30, 2023 and 2022, the Company recorded an allowance for obsolete inventories of $0 and $0, respectively. The inventories were amounted to $200,359 and $310,932 at June 30, 2023 and December 31, 2022, respectively.

• Prepaid expenses

Prepaid expenses represent payments made in advance for products or services to be received in the future and are amortized to expense on a ratable basis over the future period to be benefitted by that expense. Since the Company has prepaid expenses categorized as both current and non-current assets, the benefits associated with the products or services are considered current assets if they are expected to be used during the next twelve months and are considered non-current assets if they are expected to be used over a period greater than one year.

• Property, plant and equipment

Plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values:

Schedule of Expected useful life
	Expected<br> useful lives
Computer<br> equipment	3<br> years
Office<br> equipment	5<br> years
Renovation	5<br> years

Expenditures for repairs and maintenance are expensed as incurred. When assets have been retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the results of operations.

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• Impairment of long-lived assets

In accordance with the provisions of ASC Topic 360, "Impairment or Disposal of Long-Lived Assets", all long-lived assets such as plant and equipment and intangible assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the carrying amount of an asset to its estimated future undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed the fair value of the assets. There has been no impairment charge for the periods presented.

• Revenue recognition

The Company adopted Accounting Standards Update ("ASU")2014-09, Revenue from Contracts with Customers (Topic 606)("ASU 2014-09"). Under ASU 2014-09, the Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements:

•	Identify<br> the contract with a customer;
•	Identify<br> the performance obligations in the contract;
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•	Determine<br> the transaction price;
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•	Allocate<br> the transaction price to performance obligations in the contract; and
---	---
•	Recognize<br> revenue as the performance obligation is satisfied.
---	---

The Company generates its revenues from a diversified a mix of e-commerce activities that correspond to our four business segments (business to consumer or "B2C"), grocery and food delivery (B2C), telecommunication reseller (B2C)and the services providing to merchants for their business growth (business to business or "B2B").

The Company's performance obligations include providing connectivity between merchants and consumers, generally through an online ordering platform. The platform allows merchants to create an account, display a menu and track their sale reports on the merchant facing application. The platform also allows the consumers to create an account and order from merchants on the consumer facing application. The platform allows a delivery company to accept an online delivery request and deliver or ship an order from a merchant to customer.

Lifestyle

The Company has developed an online lifestyle platform (the "Lifestyle Platform")under its own brand name of "Leflair" to enable consumers to purchase high-end brands in many categories. Using the Company's smart search engine, consumers search or review their favorite brands among hundreds of choices in various categories, including Apparel, Bags & Shoes, Accessories, Health & Beauty, Home & Lifestyle, International, Women, Men and Kids & Babies categories. The Lifestyle Platform also allows customers to order from hundreds of vendor choices with personalized promotions based on their individual purchase history and location. The platform has also partnered with a Vietnam-based delivery company, Amilo, to offer seamless delivery of product from merchant to consumer's home or office at the touch of a button. Consumers can place orders for delivery or can collect their purchases at the Company's logistics center.

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Groceryand Food Delivery

Other online platforms include online platforms in Vietnam, under the brand name of "Handycart", and Philippines, under the brand names of "Pushkart" and "Mangan", to enable the consumers to purchase meals from restaurants and food from local grocery and food merchants and deliver to them in their area.

Telecommunications

The Company operates a Singapore-based online telecommunication reseller platform under brand name of "Gorilla" to enable the consumers to subscribe local mobile data and overseas internet data in different subscription package. Established in Singapore in 2019, Gorilla utilizes blockchain and Web3 technology to operate a MVNO for its users in South East Asia (SEA). With network coverage to over 150 countries, Gorilla offers a full suite of mobile communication services such as local calls, international roaming, data, and SMS texting. More importantly, Gorilla enables its customers to convert unused mobile data into digital assets or Gorilla GO Tokens through its innovative proprietary blockchain-based SwitchBack feature. Gorilla GO Tokens in turn can be redeemed for eVouchers, to offset future bills, or be redeemed for other value-added services. Please visit https://gorilla.global/ for more information.

DigitalMarketing

The acquisition of a digital marketing platform, TMG, amplifies the reach and engagement of the Company's e-commerce ecosystem and retail partners. Originally founded in 2010, TMG today creates and distributes digital advertising campaigns across its multi-channel network in both SEA and the US. With its intimate knowledge of local markets, digital marketing technology tools and social commerce business focus, advertisers leverage TMG's wide influencer network throughout SEA to market and sell advertising inventory exclusively with specific placement and effect.

As a result, Thoughtful Media's content creator partners earn a larger share of advertising revenues from international consumer brands. Thoughtful Media's data-rich multi-channel network has uploaded over 675,000 videos with over 80 billion video views. The current network of 263 YouTube channels has onboarded over 85 million subscribers with an average monthly viewership of over 600 million views.

Travel

The Company purchased the Nusatrip Group, a leading Jakarta-based Online Travel Agency ("OTA")in Indonesia and across SEA. The NusaTrip acquisition extended SoPa's business reach into SEA regional travel industry and marked the Company's first foray into Indonesia. Established in 2013 as the first Indonesian OTA accredited by the International Air Transport Association, NusaTrip pioneered offering a comprehensive range of airlines and hotels to Indonesian corporate and retail customers. With its first mover advantage, NusaTrip has onboarded over 1.2 million registered users, over 500 airlines and over 200,000 hotels around the world as well as connected with over 80 million unique visitors.

The Company's e-Commerce business is primarily conducted using Leflair's Lifestyle Platform, as follows:

1)

When<br> a customer places an order on either the Leflair website or app, a sales orders report will<br> be generated in the system. The Company will either fulfill this order from its inventory<br> or purchase the item from the manufacturer or distributor. Once the Company has the item<br> in its distribution center, it will contract with a logistics partner delivered to the end<br> customer. The sale is recognized when the delivery is completed by the logistics partner<br> to the end customer. Sale of products are offered with a limited right of return ranging<br> from 3 to 30 days, from the date of purchase and not subject to any product warranty. The<br> Company is considered the principal in this e-commerce transaction and reports revenue on<br> a gross basis as the Company establishes the price of the product, has responsibility for<br> fulfillment of the order and retains the risk of collection.

During the three months ended June 30, 2023 and 2022, the Company generated revenue of $54,707 and $482,410 respectively, in the Lifestyle sector.

During the six months ended June 30, 2023 and 2022, the Company generated revenue of $280,924 and $892,715 respectively, in the Lifestyle sector.

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The Company's Merchant POS offers both software and hardware products and services to vendors, as follows:-

Software sales consist of:

1)	Subscription<br> fees consist of the fees that the Company charge merchants to obtain access to the Merchant<br> Marketing Program.
2)	The<br> Company provides optional add-on software services which includes Analytics and Chat box<br> capabilities at a fixed fee per month.
---	---
3)	The<br> Company collects commissions when they sell third party hardware and equipment (cashier stations,<br> waiter tablets and printers) to merchants.
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During

the three months ended June 30, 2023 and 2022, the Company generated revenue of $1,692 and $10,941, respectively, from software fees.

During

the six months ended June 30, 2023 and 2022, the Company generated revenue of $1,887 and $21,890 respectively, from software fees.

Hardware sales — the Company generally is involved with the sale of on-premise appliances and end-point devices. The single performance obligation is to transfer the hardware product (which is to be installed with its licensed software integral to the functionality of the hardware product). The entire transaction price is allocated to the hardware product and is generally recognized as revenue at the time of delivery because the customer obtains control of the product at that point in time. It is concluded that control generally transfers at that point in time because the customer has title to the hardware, physical possession, and a present obligation to pay for the hardware. Payments for hardware contracts are generally due 30 to 90 days after shipment of the hardware product.

The Company records revenues from the sales of third-party products on a "gross" basis pursuant to ASC Topic 606 when the Company controls the specified good before it is transferred to the end customer and have the risks and rewards as principal in the transaction, such as responsibility for fulfillment, retaining the risk for collection, and establishing the price of the products. If these indicators have not been met, or if indicators of net revenue reporting specified in ASC Topic 606 are present in the arrangement, revenue is recognized net of related direct costs since in these instances we act as an agent.

Software subscription fee — The Company's performance obligation includes providing customer access to our software, generally through a monthly subscription, where the Company typically satisfies its performance obligations prior to the submission of invoices to the customer for such services. The Company's software sale arrangements grant customers the right to access and use the software products which are to be installed with the relevant hardware for connectivity at the outset of an arrangement, and the customer is entitled to both technical support and software upgrades and enhancements during the term of the agreement. The term of the subscription period is generally 12 months, with automatic one-year renewal. The subscription license service is billed monthly, quarterly or annually. Sales are generally recorded in the month the service is provided. For clients who are billed on an annual basis, deferred revenue is recorded and amortized over the life of the contract. Payments are generally due 30 to 90 days after delivery of the software licenses.

The Company records its revenues, net of value added taxes ("VAT"), which is levied at the rate of 10% on the invoiced value of sales.

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Groceryand food delivery consists of online grocery under brand name "Pushkart" and food delivery service under brand name "Handycart" as follows:

Customers place order for groceries and take-out food through our online platforms of "Pushkart" and "Handcart" respectively. When the grocery or food merchant receives and order, our platform will assign a third-party delivery service to pick up and deliver the grocery and/or food order to the customer. Revenue is recognized when the grocery and/or food is delivered, at which time the customer pays for the grocery and /or food order with cash, at Net of merchant cost.

During

the three months ended June 30, 2023 and 2022, the Company generated revenue of $54,762 and $8,042, respectively, from this stream.

During

the six months ended June 30, 2023 and 2022, the Company generated revenue of $88,847 and $23,836, respectively, from this stream.

As a telecommunication reseller we provide local mobile data and overseas internet data plans under the brand name of "Gorilla," which company we acquired in May 2022. Our telecommunication revenues are recorded for ASC Topic 606 purposes as follows:

Local mobile plan - customers choose and subscribe to a monthly local mobile plan through our "Gorilla" online platform. The Company will proceed to register the sim card (effectively, the mobile telephone number activation card)and arrange delivery of that Sim card to the customer. Following Sim card activation, the system will capture the monthly data usage of each customer, calculated in accordance with the package data capacity and monthly subscription rate, which amounts are aggregated and recorded as revenue. Unused data will be converted to Rewards Points and carried forward to next month for potential subsequent data usage. As a result of the rewards points, the company also recognize revenue from Rewards Point redemption for subscription fees offset, voucher redemption, extra data purchases, that the customer chooses to use via our online platform.

Overseas internet data plan – a customer will place order for their desired overseas internet data plan through either the "Gorilla" online platform or third-party partner platforms. Subscription revenue is recognized when the Sim card is delivered and activated.

During

the three months ended June 30, 2023 and 2022, the Company generated revenue of $6,369 and $5,642, respectively, from telecommunications.

During

the six months ended June 30, 2023 and 2022, the Company generated revenue of $20,671 and $5,642, respectively, from telecommunications.

Digitalmarketing provides the services that affiliate with multiple YouTube channels to offer services that include audience development, content programming, creator collaborations, digital right managements, monetization, and/or sales as follows:

The Company is required to establish as Multi-Channel Network (MCN)for YouTube Creators and fulfilled the basic MCN guidelines on timely basis. The Company engages the creator in contract as a platform to nurture the creator in brainstorming creative content ideas, coaching on growing their audience size and connection with top brands.

During

the three months ended June 30, 2023 and 2022, the Company generated revenue of $1,510,960 and $0, respectively, from this stream.

During

the six months ended June 30, 2023 and 2022, the Company generated revenue of $2,794,734 and $0, respectively, from this stream.

Onlineticketing and reservationprovides information, prices, availability, booking services for domestic and international air travel and hotels as follows:

The Company's revenues are substantially reported on a net basis as the travel supplier is primarily responsible for providing the underlying travel services and the Company does not control the service provided by the travel supplier to the traveler. Revenue from air ticketing services, air ticket commission, hotel reservation and refund margin are substantially recognized at a point of time when the performance obligations that are satisfied.

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Onlinehotel booking system provides information, prices, availability, booking services for domestic hotels as follows:

The Company's revenues are substantially reported on a gross basis as the company is primarily responsible for providing the underlying online booking system to hotel owner. Revenue from system subscription fee and commission are substantially recognized at period of time throughout the performance obligations that are satisfied.

During

the three months ended June 30, 2023 and 2022, the Company generated revenue of $556,042 and $0, respectively, from this stream.

During

the six months ended June 30, 2023 and 2022, the Company generated revenue of $1,042,749 and $0, respectively, from this stream.

Contractassets

In accordance with ASC Topic 606, a contract asset arises when the Company transfers a good or performs a service in advance of receiving consideration from the customer as agreed upon. A contract asset becomes a receivable once the Company's right to receive consideration becomes unconditional.

There

were contract assets balance was $303,001 and $20,310 on June 30, 2023 and December 31, 2022, respectively.

Contractliabilities

In accordance with ASC Topic 606, a contract liability represents the Company's obligation to transfer goods or services to a customer when the customer prepays for a good or service or when the customer's consideration is due for goods and services that the Company will yet provide whichever happens earlier.

Contract

liabilities represent amounts collected from, or invoiced to, customers in excess of revenues recognized, primarily from the billing of annual subscription agreements. The value of contract liabilities will increase or decrease based on the timing of invoices and recognition of revenue. The Company's contract liability balance was $1,251,633 and $1,405,090 on June 30, 2023 and December 31, 2022, respectively.

• Software development costs

In accordance with the relevant FASB accounting guidance regarding the development of software to be sold, leased, or marketed, the Company expenses such costs as they are incurred until technological feasibility has been established, at and after which time these costs are capitalized until the product is available for general release to customers. Once the technological feasibility is established per ASC Topic 985, Software, the Company capitalizes costs associated with the acquisition or development of major software for internal and external use in the balance sheet. These capitalized software costs are ratably amortized over the period of the software's estimated useful life. Costs incurred to enhance the Company's software products, after general market release of the services using the products, is expensed in the period they are incurred. The Company only capitalizes subsequent additions, modifications or upgrades to internally developed software to the extent that such changes allow the software to perform a task it previously did not perform. The Company also expenses website costs as incurred.

Research

and development expenditures arising from the development of the Company's own software are charged to operations as incurred. For the six months ended June 30, 2023, and 2022, software development costs were $29,128 and $36,868, respectively. For the three months ended June 30, 2023 and 2022, the software development costs were $15,209 and $17,320, respectively. Based on the software development process, technological feasibility is established upon completion of a working model, which also requires certification and extensive testing. Costs incurred by the Company between completion of the working model and the point at which the product is ready for general release have, to date, been immaterial and have been expensed as incurred.

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• Cost of sales

Cost of sales under online ordering consist of the cost of merchandizes ordered by the consumers and the related shipping and handling costs, which are directly attributable to the sales of online ordering.

Cost of sales related to software sales consist of the cost of software and payroll costs, which are directly attributable to the sales of software. Cost of sales related to hardware sales consist of the cost of hardware and payroll costs, which are directly attributable to the sales of hardware.

Cost of sales related to grocery and food delivery consist of the cost of the outsourced delivery and the outsource payment gateway, which are directly attributable to the sales of grocery and food delivery.

Cost of sales related to our telecommunication data reseller segment consist of the cost of the primary telecommunication service, which are directly attributable to the sales of telecommunication data.

Cost of sales under digital marketing consist of the cost of primary digital marketing service, which are directly attributable to the sales of digital marketing.

• Shipping and handling costs

No shipping and handling costs are associated with the distribution of the products to the customers since those costs are borne by the Company's suppliers or distributors for our merchant POS business.

The shipping and handling costs for all segments other than our e-commerce segment are recorded net in sales. For shipping costs related to our e-commerce business, those shipping costs are recorded in cost of sales.

• Sales and marketing

Sales

and marketing expenses include payroll, employee benefits and other headcount-related expenses associated with sales and marketing personnel, and the costs of advertising, promotions, seminars, and other programs. Advertising costs are expensed as incurred. Advertising expense was $229,378 and $449,392 for the six months ended June 30, 2023 and 2022, respectively. Advertising expense was $98,714 and $253,290 for the three months ended June 30, 2023 and 2022, respectively.

• Product warranties

The Company's provision for estimated future warranty costs is based upon the historical relationship of warranty claims to sales. Based upon historical sales trends and warranties provided by the Company's suppliers, the Company has concluded that no warranty liability is required as of June 30, 2023 and December 31, 2022. To date, product allowance and returns have been minimal and, based on its experience, the Company believes that returns of its products will continue to be minimal, although it looks at this issue every quarter to continue to support its assertion.

• Income tax

The Company adopted the ASC 740 Income Tax provisions of paragraph 740-10-25-13, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the unaudited condensed consolidated financial statements. Under paragraph 740-10-25-13, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the unaudited condensed consolidated financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%)likelihood of being realized upon ultimate settlement. Paragraph 740-10-25-13 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The Company had no material adjustments to its liabilities for unrecognized income tax benefits according to the provisions of paragraph 740-10-25-13.

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The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary.

In addition to U.S. income taxes, the Company and its wholly-owned foreign subsidiary, is subject to income taxes in the jurisdictions in which it operates. Significant judgment is required in determining the provision for income tax, there may be transactions and calculations for which the ultimate tax determination is uncertain. The company recognizes liabilities for anticipated tax audit issues based on the Company's current understanding of the tax law. Where the final tax outcome of these matters is different from the carrying amounts, such differences will impact the current and deferred tax provisions in the period in which such determination is made.

• Foreign currencies translation and transactions

The reporting currency of the Company is the United States Dollar ("US$")and the accompanying consolidated unaudited condensed financial statements have been expressed in US$s. In addition, the Company's subsidiary is operating in the Republic of Vietnam, Singapore, India and Philippines and maintains its books and record in its local currency, Vietnam Dong ("VND"), Singapore Dollar ("SGD"), Indian Rupee ("INR"), Philippines Pesos ("PHP"), Malaysian Ringgit ("MYR), Thailand Baht ("THB")and Indonesian Rupiah ("IDR"), respectively, which are the functional currencies in which the subsidiary's operations are conducted. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$s, in accordance with ASC Topic 830, "Translation of Financial Statement" ("ASC 830")using the applicable exchange rates on the balance sheet date. Shareholders' equity is translated using historical rates. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from the translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income (loss)within the unaudited condensed statements of changes in shareholder's equity.

Schedule of Foreign currencies translation and transactions

Translation of amounts from SGD into US$ has been made at the following exchange rates for the six months ended June 30, 2023 and 2022:

Schedule of Foreign currencies translation and transactions
	June<br> 30, <br>2023		June<br> 30, 2022
Period-end<br> SGD$:US$ exchange rate	$	0.73826	$	0.71874
Period<br> average SGD$:US$ exchange rate	$	0.74826	$	0.73258

Translation of amounts from VND into US$ has been made at the following exchange rates for the six months ended June 30, 2023 and 2022:

	June<br> 30, <br>2023		June<br> 30, 2022
Period-end<br> VND$:US$ exchange rate	$	0.000042	$	0.000043
Period<br> average VND$:US$ exchange rate	$	0.000042	$	0.000044

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Translation of amounts from INR into US$ has been made at the following exchange rates for the six months ended June 30, 2023 and 2022:

	June<br> 30, <br>2023		June<br> 30, 2022
Period-end<br> INR$:US$ exchange rate	$	0.012185	$	0.012675
Period<br> average INR$:US$ exchange rate	$	0.012674	$	0.013126

Translation of amounts from PHP into US$ has been made at the following exchange rates for the six months ended June 30, 2023 and 2022:

	June<br> 30, <br>2023		June<br> 30, 2022
Period-end<br> PHP:US$ exchange rate	$	0.018077	$	0.018176
Period<br> average PHP:US$ exchange rate	$	0.018099	$	0.019173

Translation of amounts from THB into US$ has been made at the following exchange rates for the six months ended June 30, 2023 and 2022:

	June<br> 30, <br>2023		June<br> 30, 2022
Period-end<br> THB:US$ exchange rate	$	0.028206	$	N/A
Period<br> average THB:US$ exchange rate	$	0.029216	$	N/A

Translation of amounts from MYR into US$ has been made at the following exchange rates for the six months ended June 30, 2023 and 2022:

	June<br> 30, <br>2023		June<br> 30, 2022
Period-end<br> MYR:US$ exchange rate	$	0.213973	$	N/A
Period<br> average MYR:US$ exchange rate	$	0.224385	$	N/A

Translation of amounts from IDR into US$ has been made at the following exchange rates for the six months ended June 30, 2023 and 2022:

	June<br> 30, <br>2023		June<br> 30, 2022
Period-end<br> IDR:US$ exchange rate	$	0.000066	$	N/A
Period<br> average IDR:US$ exchange rate	$	0.000066	$	N/A

Translation gains and losses that arise from exchange rate fluctuations from transactions denominated in a currency other than the functional currency are translated, as the case may be, at the rate on the date of the transaction and included in the results of operations as incurred.

• Comprehensive income

ASC Topic 220, “Comprehensive Income”, establishes standards for reporting and display of comprehensive income, its components and accumulated balances. Comprehensive income as defined includes all changes in equity during a period from non-owner sources. Accumulated other comprehensive income, as presented in the accompanying consolidated statements of changes in shareholders’ equity, consists of changes in unrealized gains and losses on foreign currency translation. This comprehensive income is not included in the computation of income tax expense or benefit.

• Earning per share

Basic per share amounts are calculated using the weighted average shares outstanding during the year, excluding unvested restricted stock units. The Company uses the treasury stock method to determine the dilutive effect of stock options and other dilutive instruments. Under the treasury stock method, only "in the money" dilutive instruments impact the diluted calculations in computing diluted earnings per share. Diluted calculations reflect the weighted average incremental common shares that would be issued upon exercise of dilutive options assuming the proceeds would be used to repurchase shares at average market prices for the years.

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For the three and six months ended June 30, 2023 and 2022, diluted weighted-average common shares outstanding is equal to basic weighted-average common shares, due to the Company's net loss position. Hence, no common stock equivalents were included in the computation of diluted net loss per share since such inclusion would have been antidilutive.

Schedule of computation of diluted net loss per share:

Schedule of computation of diluted net loss per share
	Three<br> months ended June 30,
	2023			2022
Net<br> loss attributable to Society Pass Incorporated	$	(3,315,258	)	$	(7,504,324	)
Weighted<br> average common shares outstanding – Basic and diluted		28,171,523			24,347,607
Net<br> loss per share – Basic and diluted	$	(0.12	)	$	(0.31	)
	Six<br> months ended June 30,
---	---	---	---	---	---	---
	2023			2022
Net<br> loss attributable to Society Pass Incorporated	$	(8,610,185	)	$	(14,052,702	)
Weighted<br> average common shares outstanding – Basic and diluted		27,630,193			23,126,643
Net<br> loss per share – Basic and diluted	$	(0.30	)	$	(0.61	)

The following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted-average shares outstanding, because such securities had an antidilutive impact:

Schedule of Common stock issued:

Schedule of Common stock issued
	Six<br> months ended June 30,
	2023		2022
Options<br> to purchase common stock (a)		1,945,270		1,945,270
Warrants<br> granted to underwriter		3,803,229		3,793,929
Warrants<br> granted with Series C-1 Convertible Preferred Stock (b)		1,068,000		—
Total<br> of common stock equivalents		6,186,499		5,739,199
(a)	The<br> Board of Directors have approved a 10-year stock option at an exercise price of $6.49 per<br> share that will be exercisable at any time.
---	---
(b)	The<br> expiry date of warrants granted with Series C-1 was extended to June 30, 2022.
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• Leases

The Company adopted Topic 842, Leases (“ASC 842”)to determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”)assets and operating lease liabilities in the consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in the consolidated balance sheets.

ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company generally use the incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

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In accordance with the guidance in ASC 842, components of a lease should be split into three categories: lease components (e.g. land, building, etc.), non-lease components (e.g. common area maintenance, consumables, etc.), and non-components (e.g. property taxes, insurance, etc.). Subsequently, the fixed and in-substance fixed contract consideration (including any related to non-components)must be allocated based on the respective relative fair values to the lease components and non-lease components.

When a lease is terminated before the expiration of the lease term, irrespective of whether the lease is classified as a finance lease or an operating lease, the lessee would derecognize the ROU asset and corresponding lease liability. Any difference would be recognized as a gain or loss related to the termination of the lease. Similarly, if a lessee is required to make any payments or receives any consideration when terminating the lease, it would include such amounts in the determination of the gain or loss upon termination.

As

of June 30, 2023 and December 31, 2022, the Company recorded the right of use asset of $1,609,461 and $1,537,670 respectively.

• Retirement plan costs

Contributions to retirement plans (which are defined contribution plans)are charged to general and administrative expenses in the accompanying consolidated statements of operation as the related employee service is provided.

• Share-based compensation

The Company follows ASC Topic 718, Compensation—Stock Compensation ("ASC 718"), which requires the measurement and recognition of compensation expense for all share-based payment awards (employee and non-employee), at grant-date fair value of the equity instruments that an entity is obligated to issue. Restricted stock units are valued using the market price of the Company's common shares on the date of grant. The Company uses a Black-Scholes option pricing model to estimate the fair value of employee stock options at the date of grant. As of June 30, 2023, those shares issued and stock options granted for service compensation, vest 180 days after the grant date, and therefore these amounts are thus recognized as expense during the six months ended June 30, 2023 and 2022. Stock-based compensation is recorded in general and administrative expenses within the Consolidated Statements of Operations and Other Comprehensive Loss, with corresponding credits to common stock and accumulated paid-in capital.

• Warrants

In connection with certain financing, consulting and collaboration arrangements, the Company has issued warrants to purchase shares of its preferred and common stock. The outstanding warrants are standalone instruments that are not puttable or mandatorily redeemable by the holder and are classified as equity awards. The Company measures the fair value of the awards using a Black-Scholes Option Pricing Model as of the measurement date. The Company uses a Black-Scholes option pricing model to estimate the grant date fair value of the warrants. Warrants issued in conjunction with the issuance of common stock are initially recorded at fair value as a reduction in additional paid-in capital (the accounting treatment for common stock issuance costs). All other warrants are recorded at the grant date fair value as an expense over the requisite service period, or at the date of issuance if the warrants vest immediately.

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• Related parties

The Company follows ASC 850-10, Related Party Disclosures ("ASC 850")for the identification of related parties and the disclosure of related party transactions.

Pursuant to ASC 850, the related parties include a)affiliates of the Company; b)entities for which investments in their equity securities would be required, absent the election of the fair value option under ASC 825, Financial Instruments, to be accounted for by the equity method by the investing entity; c)trusts for the benefit of employees, such as pension and income-sharing trusts that are managed by or under the trusteeship of management; d)principal owners of the Company; e)management of the Company; f)other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g)other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

The unaudited condensed consolidated financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required by ASC 850. The disclosures shall include: a)the nature of the relationship(s)involved; b)a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c)the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used 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 otherwise apparent, the terms and manner of settlement.

• Commitments and contingencies

The Company follows the ASC 450, Commitments, to account for contingencies. Certain conditions may exist as of the date the unaudited condensed financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, which assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company's unaudited condensed consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available, that these matters will have a material adverse effect on the Company's financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company's business, financial position, and results of operations or cash flows if the current level of facts and circumstances changes in the future.

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• Fair value of financial instruments

The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and has adopted paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”)to measure the fair value of its financial instruments. Paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3)broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted)in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3)levels of fair value hierarchy defined by paragraph 820-10-35-37 of the FASB Accounting Standards Codification are described below:

Level<br> 1	Quoted<br> market prices available in active markets for identical assets or liabilities as of the reporting date.
Level<br> 2	Pricing<br> inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the<br> reporting date.
Level<br> 3	Pricing<br> inputs that are generally observable inputs and not corroborated by market data.

Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable.

The fair value hierarchy gives the highest priority to quoted prices (unadjusted)in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.

The carrying amounts of the Company’s financial assets and liabilities, such as cash and cash equivalents, accounts receivable, deposits, prepayments and other receivables, contract liabilities, accrued liabilities and other payables, amounts due to related parties and operating lease liabilities, approximate their fair values because of the short maturity of these instruments.

• Recent Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the Financial Accounting Standard Board ("FASB")or other standard setting bodies and adopted by the Company as of the specified effective date.

In June 2022, the FASB issued Accounting Standards Update No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurementof Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03). This ASU was issued to resolve differences in practice regarding how to record the issuance of common stock with sale restrictions that pertain to the receiving party. The FASB concluded in ASU 2022-03 that these types of restrictions were not attributes of the stock issued but related to the parties to whom the stock was issued. As a result, the ASU 2022-03 requires companies to record the issuance of this type of restricted stock at its face value (i.e., not discount the stock because the receiving party can't immediately sell the stock). From time-to-time, the Company may acquire another company in a transaction in which Company restricted stock is issued. The Company has reviewed ASU 2022-03 and does not expect that it will affect the Company.

All other recently issued, but not yet effective, 2023 Accounting Standards Updates are not expected to have an effect on the Company.

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NOTE－4 REVENUE

Revenue was generated from the following activities:

Schedule<br> of Revenue
	Six<br> months ended June 30,
	2023		2022
Sales<br> – online ordering	$	369,771	$	916,551
Sales<br> – digital marketing		2,794,734		—
Sales<br> – online ticketing and reservation		1,042,749		—
Sales<br> – data		20,671		5,642
Software<br> subscription sales		1,887		21,890
Hardware<br> sales		—		69
	$	4,229,812	$	944,152
	Three<br> months ended June 30,
---	---	---	---	---
	2023		2022
Sales<br> – online ordering	$	112,169	$	482,410
Sales<br> – digital marketing		1,510,960		—
Sales<br> – online ticketing and reservation		556,042		—
Sales<br> – data		6,369		5,642
Software<br> subscription sales		1,692		10,941
Hardware<br> sales		—		69
	$	2,187,232	$	499,062

Contract liabilities recognized was related to online ticketing and reservation, digital marketing, telecommunication reseller and software sales and the following is reconciliation for the periods presented:

Schedule of Contract liabilities:

Schedule<br> of Contract liabilities
	June<br> 30, 2023			December<br> 31, 2022
Contract<br> liabilities, brought forward	$	1,405,090		$	25,229
Add:<br> recognized as deferred revenue		1,251,633			1,405,090
Less:<br> recognized as revenue		(1,405,090	)		(25,229	)
Contract<br> liabilities, carried forward	$	1,251,633		$	1,405,090

NOTE－5

SEGMENT REPORTING

Currently, the Company has six reportable business segments:

(i)	e-Commerce<br> – operates an online lifestyle platform under the brand name of "Leflair"<br> covering a diversity of services and products, such as fashion and accessories, beauty and<br> personal care, and home and lifestyle, all managed by SOPA Technology Company Ltd,
(ii)	Merchant<br> point of sale ("POS")– is involved in the sale of hardware and software to<br> merchants and this segment is managed by Hottab group and SOPA entities except SOPA Technology<br> Company Ltd,
---	---
(iii)	Online<br> grocery and food deliveries – operate an online food delivery service under the "Handycart"<br> brand name and an online grocery delivery under the "Pushkart" brand name, managed<br> by Dream Space Trading Co Ltd and New Retail Experience Incorporated respectively, and
---	---
(iv)	Telecommunication<br> reseller – provide sales of local mobile phone plans and global internet data provider<br> plans, both services managed by the Gorilla Group.
---	---
(v)	Digital<br> marketing operates the digital marketing business with creator and digital marketing platform.
---	---
(vi)	Online<br> ticketing and reservation - operates the sale of domestic and overseas air ticket and global<br> hotel reservations.
---	---

| 26 |

| --- |

The Company's Chief Finance Officer (CFO)evaluates operating segments using the information provided in the following tables that presents revenues and gross profits by reportable segment, together with information on the segment tangible and intangible assets.

Schedule of Segment Reporting

Schedule<br> of Segment Reporting
	Six<br> Months ended June 30, 2023
	Online<br> F&B and Groceries Deliveries			Digital<br> Marketing			Online<br> Ticketing and reservation			e-Commerce			Telecommunication<br> Reseller			Merchant<br> POS			Total
Revenue<br> from external customers
Sales<br> – online ordering		88,847			—			—			280,924			—			—			369,771
Sales<br> – digital marketing		—			2,794,734			—			—			—			—			2,794,734
Sales<br> – online ticketing and reservation		—			—			1,042,749			—			—			—			1,042,749
Sales<br> – data		—			—			—			—			20,671			—			20,671
Software<br> sales		—			—			1,142			—			—			745			1,887
Total<br> revenue		88,847			2,794,734			1,043,891			280,924			20,671			745			4,229,812
Cost<br> of sales:
Cost<br> of online ordering		(99,360	)		—			—			(260,375	)		—			—			(359,735	)
Cost<br> of digital marketing		—			(2,270,845	)		—			—			—			—			(2,270,845	)
Cost<br> of online platform		—			—			(171,544	)		—			—			—			(171,544	)
Cost<br> of data		—			—			—			—			(33,354	)		—			(33,354	)
Software<br> cost		—			—			(8,633	)		(120,384	)		—			(1,921	)		(130,938	)
Total<br> cost of revenue		(99,360	)		(2,270,845	)		(180,177	)		(380,759	)		(33,354	)		(1,921	)		(2,966,416	)
Gross<br> income (loss)		(10,513	)		523,889			863,714			(99,835	)		(12,683	)		(1,176	)		1,263,396
Operating<br> Expenses
Sales<br> and marketing expenses		(1,782	)		(21,177	)		(148,558	)		(55,422	)		(52	)		(2,387	)		(229,378	)
Software<br> development costs		—			—			—			—			—			(29,128	)		(29,128	)
Depreciation		(9,227	)		(6,270	)		(56,691	)		(19,434	)		—			(43,909	)		(135,531	)
Amortization		—			—			—			—			—			(807,521	)		(807,521	)
General<br> and administrative expenses		(189,297	)		(631,917	)		(1,006,550	)		(429,829	)		(73,201	)		(6,597,089	)		(8,927,883	)
Total<br> operating expenses		(200,306	)		(659,364	)		(1,211,799	)		(504,685	)		(73,253	)		(7,480,034	)		(10,129,441	)
Loss<br> from operations		(210,819	)		(135,475	)		(348,085	)		(604,520	)		(85,936	)		(7,481,210	)		(8,866,045	)
Other<br> income (expense)
JV<br> income		6,844			—			—			—			—			—			6,844
Gain<br> on early lease termination		—			1,064			—			—			—			—			1,064
Interest<br> income		5			123			1,346			783			—			96,937			99,194
Interest<br> expense		(27	)		—			5			—			(630	)		—			(652	)
Waiver<br> of loan payable		26,221			—			—			—			—			(11,021	)		15,200
Written-off<br> of fixed assets		(2,583	)		—			—			—			—			—			(2,583	)
Other<br> income		3,274			65			1,396			1,072			12,441			30,955			49,203
Total<br> other income (expense)		33,734			1,252			2,747			1,855			11,811			116,871			168,270
Loss<br> before income taxes		(177,085	)		(134,223	)		(345,338	)		(602,665	)		(74,125	)		(7,364,339	)		(8,697,775	)

| 27 |

| --- | | | Three<br> Months ended June 30, 2023 | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Online<br> F&B and Groceries Deliveries | | | Digital<br> Marketing | | | Online<br> Ticketing and reservation | | | e-Commerce | | | Telecommunication<br> Reseller | | | Merchant<br> POS | | | Total | | | | Revenue<br> from external customers | | | | | | | | | | | | | | | | | | | | | | | Sales<br> – online ordering | | 54,762 | | | — | | | — | | | 57,407 | | | — | | | — | | | 112,169 | | | Sales<br> – digital marketing | | — | | | 1,510,960 | | | — | | | — | | | — | | | — | | | 1,510,960 | | | Sales<br> – online ticketing and reservation | | — | | | — | | | 556,042 | | | — | | | — | | | — | | | 556,042 | | | Sales<br> – data | | — | | | — | | | — | | | — | | | 6,369 | | | — | | | 6,369 | | | Software<br> sales | | — | | | — | | | 1,142 | | | — | | | — | | | 550 | | | 1,692 | | | Total<br> revenue | | 54,762 | | | 1,510,960 | | | 557,184 | | | 57,407 | | | 6,369 | | | 550 | | | 2,187,232 | | | Cost<br> of sales: | | | | | | | | | | | | | | | | | | | | | | | Cost<br> of online ordering | | (66,094 | ) | | — | | | — | | | (58,395 | ) | | — | | | — | | | (124,489 | ) | | Cost<br> of digital marketing | | — | | | (1,306,684 | ) | | — | | | — | | | — | | | — | | | (1,306,684 | ) | | Cost<br> of online platform | | — | | | — | | | (95,067 | ) | | — | | | — | | | — | | | (95,067 | ) | | Cost<br> of data | | — | | | — | | | — | | | — | | | (14,708 | ) | | — | | | (14,708 | ) | | Software<br> cost | | — | | | — | | | (8,633 | ) | | (59,836 | ) | | — | | | (656 | ) | | (69,125 | ) | | Total<br> cost of revenue | | (66,094 | ) | | (1,306,684 | ) | | (103,700 | ) | | (118,231 | ) | | (14,708 | ) | | (656 | ) | | (1,610,073 | ) | | Gross<br> income (loss) | | (11,332 | ) | | 204,276 | | | 453,484 | | | (60,824 | ) | | (8,339 | ) | | (106 | ) | | 577,159 | | | Operating<br> Expenses | | | | | | | | | | | | | | | | | | | | | | | Sales<br> and marketing expenses | | (73 | ) | | (13,183 | ) | | (72,630 | ) | | (10,441 | ) | | — | | | (2,387 | ) | | (98,714 | ) | | Software<br> development costs | | — | | | — | | | — | | | — | | | — | | | (15,209 | ) | | (15,209 | ) | | Depreciation | | (4,659 | ) | | (5,013 | ) | | (28,351 | ) | | (11,684 | ) | | — | | | (21,907 | ) | | (71,614 | ) | | Amortization | | — | | | — | | | — | | | — | | | — | | | (7,521 | ) | | (7,521 | ) | | General<br> and administrative expenses | | (86,018 | ) | | (398,436 | ) | | (473,694 | ) | | (199,497 | ) | | (29,381 | ) | | (2,612,888 | ) | | (3,799,914 | ) | | Total<br> operating expenses | | (90,750 | ) | | (416,632 | ) | | (574,675 | ) | | (221,622 | ) | | (29,381 | ) | | (2,659,912 | ) | | (3,992,972 | ) | | Loss<br> from operations | | (102,082 | ) | | (212,356 | ) | | (121,191 | ) | | (282,446 | ) | | (37,720 | ) | | (2,660,018 | ) | | (3,415,813 | ) | | Other<br> income (expense) | | | | | | | | | | | | | | | | | | | | | | | JV<br> income | | 3,696 | | | — | | | — | | | — | | | — | | | — | | | 3,696 | | | Gain<br> on early lease termination | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Interest<br> income | | 1 | | | 123 | | | 522 | | | 260 | | | — | | | 58,302 | | | 59,208 | | | Interest<br> expense | | — | | | — | | | 5 | | | — | | | (305 | ) | | — | | | (300 | ) | | Waiver<br> of loan payable | | 26,221 | | | — | | | — | | | — | | | — | | | (11,021 | ) | | 15,200 | | | Written-off<br> of fixed assets | | (2,583 | ) | | — | | | — | | | — | | | — | | | — | | | (2,583 | ) | | Other<br> income | | 3,235 | | | 34 | | | 462 | | | 636 | | | (30 | ) | | 28,079 | | | 32,416 | | | Total<br> other income (expense) | | 30,570 | | | 157 | | | 989 | | | 896 | | | (335 | ) | | 75,360 | | | 107,637 | | | Loss<br> before income taxes | | (71,512 | ) | | (212,199 | ) | | (120,202 | ) | | (281,550 | ) | | (38,055 | ) | | (2,584,658 | ) | | (3,308,176 | ) |

| 28 |

| --- | | | Six<br> Months ended June 30, 2022 | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Online<br> F&B and Groceries Deliveries | | | Digital<br> Marketing | | Online<br> Ticketing and reservation | | e-Commerce | | | Telecommunication<br> Reseller | | | Merchant<br> POS | | | Total | | | | Revenue<br> from external customers | | | | | | | | | | | | | | | | | | | | | Sales<br> – online ordering | | — | | | — | | — | | 892,715 | | | — | | | — | | | 892,715 | | | Sales<br> – digital marketing | | — | | | — | | — | | — | | | — | | | — | | | — | | | Sales<br> – online platform | | 23,836 | | | — | | — | | — | | | — | | | — | | | 23,836 | | | Sales<br> – data | | — | | | — | | — | | — | | | 5,642 | | | — | | | 5,642 | | | Software<br> sales | | — | | | — | | — | | — | | | — | | | 21,890 | | | 21,890 | | | Hardware<br> sales | | — | | | — | | — | | — | | | — | | | 69 | | | 69 | | | Total<br> revenue | | 23,836 | | | — | | — | | 892,715 | | | 5,642 | | | 21,959 | | | 944,152 | | | Cost<br> of sales: | | | | | | | | | | | | | | | | | | | | | Cost<br> of online ordering | | — | | | — | | — | | (825,960 | ) | | — | | | — | | | (825,960 | ) | | Cost<br> of online platform | | (26,898 | ) | | — | | — | | — | | | — | | | — | | | (26,898 | ) | | Cost<br> of data | | — | | | — | | — | | — | | | (975 | ) | | — | | | (975 | ) | | Software<br> sales | | — | | | — | | — | | (92,541 | ) | | | | | (12,664 | ) | | (105,205 | ) | | Hardware<br> sales | | — | | | — | | — | | — | | | — | | | (45 | ) | | (45 | ) | | Total<br> cost of revenue | | (26,898 | ) | | — | | — | | (918,501 | ) | | (975 | ) | | (12,709 | ) | | (959,083 | ) | | Gross<br> income (loss) | | (3,062 | ) | | — | | — | | (25,786 | ) | | 4,667 | | | 9,250 | | | (14,931 | ) | | Operating<br> Expenses | | | | | | | | | | | | | | | | | | | | | Sales<br> and marketing expenses | | (818 | ) | | — | | — | | (448,574 | ) | | — | | | | | | (449,392 | ) | | Software<br> development costs | | — | | | — | | — | | — | | | — | | | (36,868 | ) | | (36,868 | ) | | Impairment<br> loss | | — | | | — | | — | | — | | | — | | | (528,583 | ) | | (528,583 | ) | | Depreciation | | (77 | ) | | — | | — | | — | | | (1,270 | ) | | (13,270 | ) | | (14,617 | ) | | Amortization | | — | | | — | | — | | — | | | — | | | (1,600,000 | ) | | (1,600,000 | ) | | General<br> and administrative expenses | | (59,372 | ) | | — | | — | | (606,910 | ) | | (79,852 | ) | | (10,825,311 | ) | | (11,571,445 | ) | | Total<br> operating expenses | | (60,267 | ) | | — | | — | | (1,055,484 | ) | | (81,122 | ) | | (13,004,032 | ) | | (14,200,905 | ) | | Loss<br> from operations | | (63,329 | ) | | — | | — | | (1,081,270 | ) | | (76,455 | ) | | (12,994,782 | ) | | (14,215,836 | ) | | Other<br> income (expense) | | | | | | | | | | | | | | | | | | | | | Gain<br> from early lease termination | | — | | | — | | — | | — | | | — | | | — | | | — | | | Interest<br> income | | — | | | — | | — | | 186 | | | — | | | 5,886 | | | 6,072 | | | Interest<br> expense | | — | | | — | | — | | — | | | — | | | (4,429 | ) | | (4,429 | ) | | Loss<br> on settlement of litigation | | — | | | — | | — | | — | | | — | | | — | | | — | | | Warrant<br> modification expense | | — | | | — | | — | | — | | | — | | | — | | | — | | | Other<br> income | | — | | | — | | — | | 699 | | | 1,777 | | | 35,817 | | | 38,293 | | | Total<br> other income (expense) | | — | | | — | | — | | 885 | | | 1,777 | | | 37,274 | | | 39,936 | | | Loss<br> before income taxes | | (63,329 | ) | | — | | — | | (1,080,385 | ) | | (74,678 | ) | | (12,957,508 | ) | | (14,175,900 | ) |

| 29 |

| --- | | | Three<br> Months ended June 30, 2022 | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Online<br> F&B and Groceries Deliveries | | | Digital<br> Marketing | | Online<br> Ticketing and reservation | | e-Commerce | | | Telecommunication<br> Reseller | | | Merchant<br> POS | | | Total | | | | Revenue<br> from external customers | | | | | | | | | | | | | | | | | | | | | Sales<br> – online ordering | | — | | | — | | — | | 466,616 | | | — | | | — | | | 466,616 | | | Sales<br> – digital marketing | | — | | | — | | — | | — | | | — | | | — | | | — | | | Sales<br> – online platform | | 23,836 | | | — | | — | | (8,042 | ) | | — | | | — | | | 15,794 | | | Sales<br> – data | | — | | | — | | — | | — | | | 5,642 | | | — | | | 5,642 | | | Software<br> sales | | — | | | — | | — | | — | | | — | | | 10,941 | | | 10,941 | | | Hardware<br> sales | | — | | | — | | — | | — | | | — | | | 69 | | | 69 | | | Total<br> revenue | | 23,836 | | | — | | — | | 458,574 | | | 5,642 | | | 11,010 | | | 499,062 | | | Cost<br> of sales: | | | | | | | | | | | | | | | | | | | | | Cost<br> of online ordering | | — | | | — | | — | | (432,707 | ) | | — | | | — | | | (432,707 | ) | | Cost<br> of online platform | | (26,898 | ) | | — | | — | | 2,637 | | | — | | | — | | | (24,261 | ) | | Cost<br> of data | | — | | | — | | — | | — | | | (975 | ) | | — | | | (975 | ) | | Software<br> sales | | — | | | — | | — | | (34,836 | ) | | — | | | (6,376 | ) | | (41,212 | ) | | Hardware<br> sales | | — | | | — | | — | | — | | | — | | | (45 | ) | | (45 | ) | | Total<br> cost of revenue | | (26,898 | ) | | — | | — | | (464,906 | ) | | (975 | ) | | (6,421 | ) | | (499,200 | ) | | Gross<br> income (loss) | | (3,062 | ) | | — | | — | | (6,332 | ) | | 4,667 | | | 4,589 | | | (138 | ) | | Operating<br> Expenses | | | | | | | | | | | | | | | | | | | | | Sales<br> and marketing expenses | | (818 | ) | | — | | — | | (252,472 | ) | | — | | | — | | | (253,290 | ) | | Software<br> development costs | | — | | | — | | — | | — | | | — | | | (17,320 | ) | | (17,320 | ) | | Impairment<br> loss | | — | | | — | | — | | — | | | — | | | — | | | — | | | Depreciation | | (77 | ) | | — | | — | | 5 | | | (1,270 | ) | | (6,653 | ) | | (7,995 | ) | | Amortization | | — | | | — | | — | | — | | | — | | | (800,000 | ) | | (800,000 | ) | | General<br> and administrative expenses | | (59,372 | ) | | — | | — | | (435,855 | ) | | (79,852 | ) | | (5,962,290 | ) | | (6,537,369 | ) | | Total<br> operating expenses | | (60,267 | ) | | — | | — | | (688,322 | ) | | (81,122 | ) | | (6,786,263 | ) | | (7,615,974 | ) | | Loss<br> from operations | | (63,329 | ) | | — | | — | | (694,654 | ) | | (76,455 | ) | | (6,781,674 | ) | | (7,616,112 | ) | | Other<br> income (expense) | | | | | | | | | | | | | | | | | | | | | Gain<br> from early lease termination | | — | | | — | | — | | — | | | — | | | — | | | — | | | Interest<br> income | | — | | | — | | — | | 146 | | | — | | | 5,881 | | | 6,027 | | | Interest<br> expense | | — | | | — | | — | | — | | | — | | | (384 | ) | | (384 | ) | | Loss<br> on settlement of litigation | | — | | | — | | — | | — | | | — | | | — | | | — | | | Warrant<br> modification expense | | — | | | — | | — | | — | | | — | | | — | | | — | | | Other<br> income | | — | | | — | | — | | — | | | 1,777 | | | 22,895 | | | 24,672 | | | Total<br> other income (expense) | | — | | | — | | — | | 146 | | | 1,777 | | | 28,392 | | | 30,315 | | | Loss<br> before income taxes | | (63,329 | ) | | — | | — | | (694,508 | ) | | (74,678 | ) | | (6,753,282 | ) | | (7,585,797 | ) |

| 30 |

| --- | | | June<br> 30, 2023 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Online<br> F&B and Groceries Deliveries | | Digital<br> Marketing | | Online<br> Ticketing and reservation | | e-Commerce | | Telecommunication<br> Reseller | | Merchant<br> POS | | Total | | | Intangible<br> assets, net | | 381,205 | | — | | 79,709 | | — | | 938,723 | | 5,379,305 | | 6,778,942 | | Identifiable<br> assets | | 270,761 | | 1,943,926 | | 3,241,615 | | 1,040,975 | | 59,183 | | 10,638,077 | | 17,194,537 | | | December<br> 31, 2022 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Online<br> F&B and Groceries Deliveries | | Digital<br> Marketing | | Online<br> Ticketing and reservation | | e-Commerce | | Telecommunication<br> Reseller | | Merchant<br> POS | | Total | | | Intangible<br> assets, net | | 378,170 | | — | | 89,808 | | — | | 948,457 | | 6,041,654 | | 7,458,089 | | Identifiable<br> assets | | 345,017 | | 1,507,771 | | 3,190,380 | | 2,164,386 | | 81,924 | | 17,951,175 | | 25,240,653 |

The below sales are based on the countries in which the customer is located. Summarized financial information concerning our geographic segments is shown in the following tables:

Schedule of geographic segments

Schedule<br> of geographic segments
	Six<br> Months Ended June 30,
	2023		2022
Indonesia	$	532,977	$	20,696
Vietnam		623,376		896,661
Philippines		86,159		21,154
Singapore		451,354		5,641
United<br> States		2,027,071		—
Thailand		506,132		—
Malaysia		2,743		—
	$	4,229,812	$	944,152
	Three<br> Months Ended June 30,
---	---	---	---	---
	2023		2022
Indonesia	$	272,118	$	10,447
Vietnam		345,639		469,018
Philippines		54,488		13,956
Singapore		212,713		5,641
United<br> States		969,406		—
Thailand		331,717		—
Malaysia		1,151		—
	$	2,187,232	$	499,062

| 31 |

| --- |

NOTE－

6 BUSINESS COMBINATION

The Company has accounted for all of its business acquisitions in accordance with the requirements of ASC 805, Business Combinations (“ASC 805"). Assets acquired and liabilities assumed in business combinations were recorded on the Condensed as of Consolidated Balance Sheets as of the respective acquisition dates based upon their estimated fair values at such dates. The results of operations of businesses acquired by the Company have been included in the Consolidated Statements of Operations and Other Comprehensive Loss since their respective dates of acquisition. The excess of the purchase price over the fair values of the underlying assets acquired and liabilities assumed was allocated to goodwill. In certain circumstances, the allocation of the purchase price is based upon preliminary estimates and assumptions. Any revision to the fair values during the measurement period (no longer than one-year after the acquisition date) will be recorded by the Company as further adjustments to the purchase price allocations.

The Company allocates the purchase price consideration based upon the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date. Management of the Company is responsible for determining the fair value of assets acquired, liabilities assumed, and intangible assets identified as of the acquisition date and generally engages an independent valuation analyst to assist the Company in preparing its preliminary and final determinations of fair value.

Acquisition-related costs incurred for all acquisitions are expensed as incurred and recorded in general and administrative expense.

(i)Acquisition of PT Wahana Cerita Indonesia

On

April 1, 2023, the Company completed the acquisition of a 100% equity interest in PT Wahana Cerita Indonesia (“PT Wahana”) through its subsidiary Thoughtful Media Group Inc. for total consideration of $35,000, comprised of 24,752 shares of common stock, with a fair value of approximately $25,000 and cash consideration of $10,000. The Company accounted for the transaction as the acquisition of a business.

Schedule of transaction as the acquisition<br>of a business
Purchase<br> price allocation:
Fair<br> value of stock at closing	$	25,000
Cash<br> paid		10,000
Purchase<br> price	$	35,000

The transaction was accounted for using the acquisition method. Accordingly, goodwill has been measured as the excess of the total consideration over the amounts assigned to the identifiable assets acquired and liabilities assumed based on our preliminary estimated fair values.

The Company has allocated the purchase price consideration based upon the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date. Management of the Company is responsible for determining the fair value of assets acquired, liabilities assumed, and intangible assets identified as of the acquisition date and considered a number of factors including valuations from management estimation. Acquisition-related costs incurred for the acquisitions are not material and have been expensed as incurred in general and administrative expense.

The

Company is working with an independent valuation firm to finalize the fair value of these identifiable assets and liabilities assumed. Once determined, the Company will reallocate the purchase price of the acquisition based on the results of the independent evaluation if they are materially different from the allocations as recorded on April 1, 2023. The preliminary estimated fair value of assets acquired, and liabilities assumed in were as follows and the purchase price allocation resulted in $35,537 of goodwill.

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| --- | | Schedule of Acquisition of assets and liability | | | | | --- | --- | --- | --- | | Acquired<br> assets: | | | | | Cash<br> and cash equivalents | $ | 2,644 | | | Trade<br> receivables | | 9,166 | | | Prepayments | | 1,577 | | | Total<br> acquired assets | | 13,387 | | | Less:<br> Assumed liabilities | | | | | Accrued<br> liabilities and other payable | | 13,960 | | | Total<br> Assumed liabilities | | 13,960 | | | Fair<br> value of net liabilities assumed | | (573 | ) | | Goodwill<br> recorded | | 35,573 | | | Cash<br> consideration allocated | $ | 35,000 | |

Goodwill

is not expected to be deductible for tax purposes. The Company recognized a goodwill impairment of $35,573 during the six months ended June 30, 2023, because there were continuous operating losses and negative cash flows incurred subsequent to the acquisition date. In accordance with ASC 350, Goodwill – Intangibles and Other, the Company recognized the goodwill impairment loss by comparing the fair value of the PT Wahana reporting unit to the carrying amount of the acquisition.

The following unaudited pro forma information presents the combined results of operations as if the acquisitions had been completed on January 1, 2023 and 2022.

Schedule of pro forma information
	Six<br> months ended June 30,
	2023			2022
Revenue	$	4,229,812		$	944,152
Net<br> loss	$	(8,699,443	)	$	(14,177,999	)
Net<br> loss per share	$	(0.30	)	$	(0.57	)

(ii)Acquisition of Mekong Leisure Travel Join Stock Company

On

April 11, 2023, the Company completed the acquisition of a 100% equity interest in Mekong Leisure Travel Join Stock Company (“Mekong”) through its subsidiary Nusatrip International Pte. Ltd. for total consideration of $164,148, comprised of 76,531 shares of common stock, with a fair value of approximately $75,000 and cash consideration of $89,148. The Company accounted for the transaction as the acquisition of a business.

Schedule of transaction as the acquisition<br>of a business
Purchase<br> price allocation:
Fair<br> value of stock at closing	$	75,000
Cash<br> paid		89,148
Purchase<br> price	$	164,148

The transaction was accounted for using the acquisition method. Accordingly, goodwill has been measured as the excess of the total consideration over the amounts assigned to the identifiable assets acquired and liabilities assumed based on our preliminary estimated fair values.

The Company has allocated the purchase price consideration based upon the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date. Management of the Company is responsible for determining the fair value of assets acquired, liabilities assumed, and intangible assets identified as of the acquisition date and considered a number of factors including valuations from management estimation. Acquisition-related costs incurred for the acquisitions are not material and have been expensed as incurred in general and administrative expense.

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The

Company is working with an independent valuation firm to finalize the fair value of these identifiable assets and liabilities assumed. Once determined, the Company will reallocate the purchase price of the acquisition based on the results of the independent evaluation if they are materially different from the allocations as recorded on April 1, 2023. The preliminary estimated fair value of assets acquired, and liabilities assumed in were as follows and the purchase price allocation resulted in $141,348 of goodwill.

Schedule of Acquisition of assets and liability
Acquired<br> assets:
Cash<br> and cash equivalents	$	24,289
Trade<br> receivables		13,969
Prepayments		49,031
Cash		6,385
Total<br> acquired assets		93,674
Less:<br> Assumed liabilities
Trade<br> payables		11,266
Accrued<br> liabilities and other payable		9,784
Contract<br> liabilities		49,824
Total<br> Assumed liabilities		70,874
Fair<br> value of net assets		22,800
Goodwill<br> recorded		141,348
Cash<br> consideration allocated	$	164,148

Goodwill

is not expected to be deductible for tax purposes. The Company recognized a goodwill impairment of $3141,348 during the six months ended June 30, 2023, because there were continuous operating losses and negative cash flows incurred subsequent to the acquisition date. In accordance with ASC 350, Goodwill – Intangibles and Other, the Company recognized the goodwill impairment loss by comparing the fair value of the Mekong reporting unit to the carrying amount of the acquisition.

The following unaudited pro forma information presents the combined results of operations as if the acquisitions had been completed on January 1, 2023 and 2022.

Schedule of pro forma information
	Six<br> months ended June 30,
	2023			2022
Revenue	$	4,233,181		$	1,029,824
Net<br> loss	$	(8,720,489	)	$	(14,129,821	)
Net<br> loss per share	$	(0.30	)	$	(0.57	)

NOTE－7 DEPOSIT,

PREPAYMENTS AND OTHER RECEIVABLES

Schedule of prepayments and other receivables
		June 30, 2023<br><br> <br>(Unaudited)		December 31, 2022
Deposits	$	807,276	$	921,429
Prepayments		512,413		573,513
Prepayments<br> for consultancy fee (a)		—		858,665
Value<br> added tax		188,985		140,053
Interest<br> receivable		19,129		12,763
Other<br> receivables		234,516		204,619
Total	$	1,762,319	$	2,711,042
(a)	On<br> December 6, 2021, the Company entered into two consulting agreements with China-America Culture<br> Media Inc. and New Continental Technology Inc., acting as consultant to assist the Company<br> in completing certain Business Opportunities with potential partners until February 28, 2023.<br> The considerations of the services are $3,250,000 and $3,190,000. The Company's due to China-America<br> Culture Media Inc. balance was $0 and $433,332 as of June 30, 2023 and December 31, 2022,<br> respectively. The Company's due to New Continental Technology Inc., balance was $0 and $425,333<br> as of June 30, 2023 and December 31, 2022, respectively. For the six months ended June 30,<br> 2023 and 2022, the Company recognized the amortization of prepaid consulting expense of $858,665<br> and $2,576,000, respectively, using the straight-line method, over a term of 15 months. For<br> the three months ended June 30, 2023 and 2022, the Company recognized the amortization of<br> prepaid consulting expense of $0 and $1,288,000 respectively
---	---

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NOTE－8 INVENTORIES

Schedule of inventories
	June<br> 30, 2023		December<br> 31, 2022
Finished<br> goods	$	200,359	$	310,932
Less:
Reserve<br> for excess and obsolete inventory		—		—
Total<br> Inventories	$	200,359	$	310,932

All

finished goods inventories were related to e-commerce business and was held by the third party logistic. The cost of sales totaled $359,735 and $852,858 incurred during the six months ended June 30, 2023 and 2022, respectively. The inventories were amounted to $200,359 and $310,932 at June 30, 2023 and December 31, 2022, respectively.

NOTE－9 INTANGIBLE

ASSETS

As of June 30, 2023 and December 31, 2022, intangible assets consisted of the following:

Schedule of intangible assets
	Useful<br> life	June<br> 30, 2023			December<br> 31, 2022
At<br> cost:
Software<br> platform	2.5<br> years	$	8,000,000		$	8,000,000
Apps<br> development			938,723			948,457
Computer<br> software			750,300			586,888
Software<br> system			381,205			378,170
Intellectual<br> technology			276,000			276,000
Identifiable<br> intangible asset			4,965,654			4,965,654
Other<br> intangible assets	3<br> – 5 years		—			1,725
			15,311,882			15,156,894
Less:<br> accumulated amotization			(8,532,940	)		(7,698,805	)
		$	6,778,942		$	7,458,089

November 1 2018, the Company entered into a software development agreement with CVO Advisors Pte Ltd (CVO)2018 to design and build an App and Web-based platform for the total consideration of $8,000,000. CVO who is a third party vendor in the business of designing, developing, operating computer software applications including mobile and web application for social media, big data, point of sales, loyalty rewards, food delivery and technology platforms in Asia. The CVO developer performed and accepted technical work, of software development phase, which was materially completed by December 23, 2018. The Company obtained a third party license (Wallet Factory International Ltd)for their technology build up by CVO.

The delivered platform was further developed by the Company's in-house technology team (based in Noida that Sopa is currently using for the loyalty platform. The platform can be downloaded from Apple store or Googleplay store (i.e. SoPa App)and the Company's web version is on www.sopa.asia. The platform was completed developed on September 30, 2020 and has estimated life of 2.5 years. The platform started to be amortized from October 1, 2020.

Further,

the Company entered into a subscription agreement with CVO to issue 8,000 shares of preferred stock for the software development, equal to the aggregate of $8,000,000 or at the stated value of $1,000 per share.

Pursuant

to the subscription agreement entered into with CVO, the Company issued 8,000 shares of Series A convertible preferred stock for the purchase of software development at the stated value of $1,000 per share, totaling $8,000,000. CVO performed and accepted the technical work such as designing, developing, operating computer software applications including mobile and web application for social media, big data, point of sales, loyalty rewards, food delivery and technology platforms. The holder of this series A provided their consent to waive the warrant provision available with them and accordingly the preferred series A accounted in 2018.

Also, the owner of CVO entered into a call option agreement with the CEO of the Company to sale all the shares of CVO for the sum of $10 per share, as of date, these options were exercised by the CEO of the Company, but the equity holders of CVO Advisors Pte. Ltd. have not honored the exercise of the call. The parties are currently in litigation (refer Note 23). As a result of this option exercise, there were no accounting effect on the Company's financial statement during the year ended December 31, 2022.

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Amortization of intangible assets attributable to future periods is as follows:

Schedule of Amortization of intangible assets
Period<br> ending June 30, 2023:		Amount
2023	$	—

Amortization

of intangible assets was $0 and $800,000 for the three months ended June 30, 2023 and 2022, respectively.

Amortization

of intangible assets was $800,000 and $1,600,000 for the six months ended June 30, 2023 and 2022, respectively.

Apps

development costs for the development stage of mobile apps development with blockchain feature used by the subsidiaries under Telecommunications Reseller segment business amounted to $938,723 (2022: $948,457)and pertains to capitalization of the Information Technology consultancy and services incurred in the development process. No amortization was recognized as the project is still ongoing as of June 30, 2023.

Software system is the existing apps development cost and potential software value estimated base on acquisition exercise of Mangan business unit under New Retail Experience Incorporated, through the finalization of Purchase Price Allocation.

Intellectual technology is the identified technology value concluded from acquisition of Pushkart business unit under New Retail Experience Incorporated, through the finalization of Purchase Price Allocation.

Identifiable intangible asset is the potential intangible assets as stakeholder values estimated based on acquisition exercise of Nusatrip Group and TMG Group, through the finalization of Purchase Price Allocation.

NOTE－

10 PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following:

Schedule of Property plant and equipment
	June<br> 30, 2023			December<br> 31, 2022
At<br> cost:
Computer	$	531,838		$	600,629
Office<br> equipment		79,246			54,683
Furniture<br> and fixtures		11,589			10,702
Renovation		609,834			322,399
		1,232,507			988,413
Less:<br> accumulated depreciation		(419,192	)		(282,015	)
Less:<br> exchange difference		—			—
		813,135			706,398

Depreciation

expense for the three months ended June 30, 2023 and 2022 were $71,614 and $12,380, respectively.

Depreciation

expense for the six months ended June 30, 2023 and 2022 were $135,531 and $14,617, respectively.

NOTE－11 AMOUNTS

DUE TO RELATED PARTIES

Amounts due to related parties consisted of the following:

Schedule of Amount due to related parties
	June<br> 30, 2023		December<br> 31, 2022
Amounts<br> due to related parties (a)	$	64,181	$	22,311
(a)	The<br> amounts represented temporary advances to the Company including related parties (two officers), which were unsecured, interest-free<br> and had no fixed terms of repayments. On September 30, 2021, the Company received the notifications that the outstanding amounts<br> of $72,176 were forgiven by the related parties, the said amount was written off and accounted as capital transaction and therefore<br> credited the additional paid in capital account as of December 31, 2021. The Company's due to related parties balance was $64,181<br> and $22,311 as of June 30, 2023 and December 31, 2022, respectively.
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NOTE－12 ACCOUNTS

PAYABLE AND ACCRUED LIABILITIES

Accounts payable consisted of the following:

Schedule of Accounts payable
	June<br> 30, 2023		December<br> 31, 2022
Accounts<br> payable	$	1,732,961	$	1,296,571
Accrued<br> liabilities and other payables- Related Party (a)		—		43,360
Accrued<br> liabilities and other payables (b)		6,500,647		8,281,865
Other<br> Accounts payable		6,500,647		8,325,225
Total<br> Accounts payable	$	8,233,608	$	9,621,796

Accounts

payable includes significant third parties balance of $532,752 acquired from Gorilla business through business combination on May 31, 2022.

(a)	The amount represented due to one related party in respect<br>to unpaid salaries and amounted to $0 and $3,360 as of June 30, 2023 and December 31, 2022, respectively.
(b)	Accrued liabilities and other payables consisted of the following:
---	---
Schedule of Accrued liabilities
---	---	---	---	---
	June<br> 30, 2023		December<br> 31, 2022
Accrued<br> payroll	$	378,169	$	1,023,549
Accrued<br> VAT expenses		45,111		6,801
Accrued<br> taxes		1,061,303		1,653,284
Customer<br> deposit		566,338		1,155,695
Customer<br> refund		246,051		1,146,409
Other<br> payables (c)		1,107,741		994,213
Other<br> accrual (d)		3,095,934		2,301,914
Total<br> Accrued liabilities	$	6,500,647	$	8,281,865
(c)	Included<br> in these balances on June 30, 2023 and December 31, 2022 is a $0 and $75,000, respectively, accrual<br> related to an accrued contingency associated with a lawsuit filed against the Company. In<br> 2023, the Company settled this lawsuit for $15,000.
---	---
(d)	The<br> June 30, 2023 and December 31, 2022, balance includes refund provision, income tax provision<br> and other operation accruals.
---	---

NOTE－13 LEASES

We adopted ASU No. 2016-02, - Leases, on January 1, 2019, the beginning of our fiscal 2019, using the modified retrospective approach. We determine whether an arrangement is a lease at inception. This determination generally depends on whether the arrangement conveys the right to control the use of an identified fixed asset explicitly or implicitly for a period of time in exchange for consideration. Control of an underlying asset is conveyed if we obtain the rights to direct the use of and to obtain substantially all of the economic benefit from the use of the underlying asset. Some of our leases include both lease and non-lease components which are accounted for as a single lease component as we have elected the practical expedient. Some of our operating lease agreements include variable lease costs, primarily taxes, insurance, common area maintenance or increases in rental costs related to inflation. Substantially all of our equipment leases and some of our real estate leases have terms of less than one year and, as such, are accounted for as short-term leases as we have elected the practical expedient.

Operating leases are included in the right-of-use lease assets, other current liabilities and long-term lease liabilities on the Consolidated Balance Sheet. Right-of-use assets and lease liabilities are recognized at each lease's commencement date based on the present values of its lease payments over its respective lease term. When a borrowing rate is not explicitly available for a lease, our incremental borrowing rate is used based on information available at the lease's commencement date to determine the present value of its lease payments. Operating lease payments are recognized on a straight-line basis over the lease term. We had no financing leases as of June 30, 2022 and December 31, 2022.

The

Company used a weighted average incremental borrowing rate of 5.85% to determine the present value of the lease payments. The weighted average remaining life of the lease was 3.30 years.

During

the year ended December 31, 2022, the Company enter into new lease arrangements, and accounted as per ASC Topic 842, the ROU asset and lease obligation of $1,762,350.

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The Company excluded short-term leases (those with lease terms of less than one year at inception)from the measurement of lease liabilities or right-of-use assets. The following tables summarize the lease expense, as follows:

Schedule of Lease expenses
	Six<br> months ended June 30,
	2023		2022
Operating<br> lease expense (per ASC 842)	$	278,183	$	139,420
Short-term<br> lease expense (other than ASC 842)		50,908		4,653
Total<br> lease expense	$	329,091	$	144,073

As

of June 30, 2023, right-of-use assets were $1,609,461 and lease liabilities were $1,620,852.

As

of December 31, 2022, right-of-use assets were $1,537,670 and lease liabilities were $1,541,064.

Components of Lease Expense

We recognize lease expense on a straight-line basis over the term of our operating leases, as reported within “general and administrative” expense on the accompanying consolidated statement of operations.

Future Contractual Lease Payments as of June 30, 2023

The below table summarizes our (i)minimum lease payments over the next five years, (ii)lease arrangement implied interest, and (iii)present value of future lease payments for the next three years ending June 30:

Schedule of Future Contractual Lease Payments
Years<br> ending June 30,	Operating<br> lease amount
2024	$	630,729
2025		494,999
2026		322,300
2027		253,708
2028		72,784
Total		1,744,520
Less:<br> interest		(153,668	)
Present<br> value of lease liabilities	$	1,620,852
Less:<br> non-current portion		(1,065,261	)
Present<br> value of lease liabilities – current liability	$	555,591

NOTE－

14 LOAN

Schedule of loan
	June<br> 30, 2023		December<br> 31, 2022
Loan<br> – A (i)		24,378		28,164
	$	24,378	$	28,164
i)	On<br> August 17, 2021, the newly acquired subsidiary, Gorilla Networks Pte. Ltd., received a loan<br> from a bank of SGD 50,000, approximately $35,937 for a term of 60 months until August 31,<br> 2026. The effective interest rate is 4.75%. For the three months ended June 30, 2023 and<br> 2022, the Company recognized the interest expense of $307 and $0, respectively. For the six<br> months ended June 30, 2023 and 2022, the Company recognized the interest expense of $632<br> and $0, respectively.
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NOTE－15 SHAREHOLDERS’

DEFICIT

Authorizedstock

The

Company is authorized to issue two classes of stock. The total number of shares of stock which the Company is authorized to issue is 100,000,000 shares of capital stock, consisting of 95,000,000 shares of common stock, $0.0001 par value per share, and 5,000,000 shares of preferred stock, $0.0001 par value per share.

The holders of the Company’s common stock are entitled to the following rights:

VotingRights: Each share of the Company’s common stock entitles its holder to one vote per share on all matters to be voted or consented upon by the stockholders. Holders of the Company’s common stock are not entitled to cumulative voting rights with respect to the election of directors.

DividendRight: Subject to limitations under Nevada law and preferences that may apply to any shares of preferred stock that the Company may decide to issue in the future, holders of the Company’s common stock are entitled to receive ratably such dividends or other distributions, if any, as may be declared by the Board of the Company out of funds legally available therefor.

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LiquidationRight: In the event of the liquidation, dissolution or winding up of our business, the holders of the Company’s common stock are entitled to share ratably in the assets available for distribution after the payment of all of the debts and other liabilities of the Company, subject to the prior rights of the holders of the Company’s preferred stock.

OtherMatters: The holders of the Company’s common stock have no subscription, redemption or conversion privileges. The Company’s common stock does not entitle its holders to preemptive rights. All of the outstanding shares of the Company’s common stock are fully paid and non-assessable. The rights, preferences and privileges of the holders of the Company’s common stock are subject to the rights of the holders of shares of any series of preferred stock which the Company may issue in the future.

Commonstock outstanding

As

of June 30, 2023 and December 31, 2022, the Company had a total of 28,457,239 and 27,082,849 shares of its common stock issued and outstanding, respectively.

On February 10, 2021, the Company effected a 750 for 1 stock split of the issued and outstanding shares of the Company’s common stock. The number of authorized shares and par value remain unchanged. All share and per share information in this financial statements and footnotes have been retroactively adjusted for the periods presented, unless otherwise indicated, to give effect to the forward stock split.

On September 21, 2021, the Company effected a 1 for 2.5 stock split of the issued and outstanding shares of the Company’s common stock. The number of authorized shares and par value remain unchanged. All share and per share information in this financial statements and footnotes have been retroactively adjusted for the periods presented, unless otherwise indicated, to give effect to the reverse stock split.

The forward stock split and reverse stock split described above had no effect on the stated value of the preferred stock, and the number of designated shares and outstanding shares of each series of preferred stock was unchanged in accordance with the respective certificate of designations. The number of authorized shares of preferred stock remained unchanged.

On

November 8, 2021, the Company entered into an underwriting agreement with Maxim Group LLC, related to the offering of 2,888,889 shares of the Company's common stock (the "Firm Shares"), at a public offering price of $9.00 per share. Under the terms of the Underwriting Agreement, the Company granted the Underwriters an option, exercisable for 45 days, to purchase an additional 236,111 shares of common stock (the "Option Shares")to cover over-allotments. The Company's common stock was listed on the Nasdaq Capital Market on November 9, 2021 and began trading on such date. The closing (the IPO Closing.)of the offering and sale of the Firm Shares and the sale of 236,111 Option Shares occurred on November 12, 2021. Aggregate gross proceeds from the closing related to the Firm Shares and the Option Shares was $26,000,001 and $2,124,999, respectively. The Company incurred expenses of $2,677,846 in connection with the IPO.

Upon the closing of the IPO, all outstanding shares of preferred stock series A, B, B-1, C and C-1 were automatically converted into 888,889 shares, 764,400 shares, 48,000 shares, 465,600 shares and 4,195,200 shares of the Company's common stock for the value of $8,000,000, $3,412,503, $466,720, $8,353,373 and $5,536,832, respectively.

During

the six months ended June 30, 2023 and 2022, the Company issued 2,497 and 0 shares of its common stock in exchange for SOPA Technology Pte. Ltd.'s 0.08% non-controlling interest at $22,470 and valued it at par as there was no change in the control over the subsidiary.

On February 8, 2022, the Company entered into an underwriting agreement (the "Underwriting Agreement")with Maxim Group LLC (the "Underwriter"), related to the offering of 3,484,845 shares including over-allotment (the "Shares")of the Company's common stock. Each Share was sold together with one Warrant to purchase one Share at a combined offering price of $3.30.

During the three and six months ended June 30, 2023, no warrants were exercised.

During the three months ended June 30, 2022, a total of 91 warrants were exercised in exchange to 27,300 shares of its common stock for the value of $55,890. During the six months ended June 30, 2022, a total of 70,791 warrants were exercised in exchange to 187,300 shares of its common stock for the value of $412,890.

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During

the three months ended June 30, 2023 and 2022, the Company issued 0 and 370,000 shares of common stock to consultants in exchange for consulting services value at $0 and $1,060,500, respectively.

During

the six months ended June 30, 2023 and 2022, the Company issued 196,078 and 486,000 shares of common stock to consultants in exchange for consulting services value at $546,500 and $1,524,059, respectively.

During

the three months ended June 30, 2023 and 2022, the Company issued 285,718 and 29,353 shares of common stock to six of its employees as compensation valued at $230,832 and $61,750, respectively.

During

the six months ended June 30, 2023 and 2022, the Company issued 394,874 and 54,797 shares of common stock to six of its employees as compensation valued at $344,332 and $148,219, respectively.

During

the three and six months ended June 30, 2022, the Company issued 13,273 shares of common stock to Brugau Pte. Ltd. and Cory Bentley to make up for shortfalls in original issuances pursuant to the terms of the agreements with Brugau Pte Ltd and Cory Bentley, valued at $119,457.

In February 2022, the Company issued 226,629 shares of common stock in exchange for 100% non-controlling interest of its subsidiary New Retail Experience Incorporated, at $3.53 per share, total amounting to $800,000 and valued it at par as there was no change in the control over the subsidiary.

In May 2022, the Company issued partial first tranche 40,604 shares of its common stock for share exchange with the subsidiary’s 100% controlling interest at $2.05, total amounting to $1,000,000 less assumed liabilities of $661,215 and valued it at par as there was no change in the control over the subsidiary. As of June 30, 2022 the accrued consideration liability outstanding is approximately $255,000.

Warrants

In August 2019, the Company issued 21,000 warrants to purchase 21,000 shares of its common stock to one employee as compensation for his services to the Company, at a fair value of $17,500. Each warrant is convertible into one share of common stock at an exercise price of $0.0001 per share. The warrants will expire on the second (2nd)anniversary of the initial date of issuance. As at December 31, 2019, none of the warrants have been exercised. 21,000 shares were fully exercised during the year ended December 31, 2020.

In

December 2020, the Company issued a certain number of warrants pursuant to the Series C-1 Subscription Agreement. Each redeemable warrant allows the holder to purchase one C-1 preferred stock at a price of $420 per share. The warrants shall be exercisable on or before December 31, 2020, 2021 and 2022. During the three and six months ended June 30, 2023, no warrants was issued.

Below is a summary of the Company's issued and outstanding warrants as of June 30, 2023 and December 31, 2022:

Schedule of Director's stock awards
	Warrants			Weighted<br> average exercise price		Weighted<br><br> average<br> remaining<br> contractual life<br> (in years)
Outstanding<br> as of December 31, 2021		148,305		$	20.57		4.88
Issued<br> (a)		3,728,784		$	3.28		2.92
Exercised		(79,601	)	$	3.28		0.5
Expired		(3,560	)	$	420		—
Expired		—			—		—
Outstanding<br> as of December 31, 2022		3,793,928		$	3.565		3.05
Issued		—			—		—
Exercised		—		$	—		—
Expired		—			—		—
Outstanding<br> as of June 30, 2023		3,793,928		$	3.565		3.05

There is no intrinsic value for the warrants as of June 30, 2023 and December 31, 2022.

(a)	Common stock will be issued upon<br>warrants exercise of the 3,649,484 warrants having no intrinsic value as of December 31, 2022.

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On April 19, 2021, the Company extended the expiry date of the Warrant issued to the Series C-1 Preferred Stockholder by six months from June 30, 2021 to December 31, 2021. Further, on November 16, 2021, the Company extended the expiry date of the Warrant issued to the Series C-1 Preferred Stockholder by six months from December 31, 2021 to June 30, 2022. The Company considered this warrant as permanent equity per ASC Topic 815-40-35-2, the warrants would not be marked to market at each financial reporting date. However, where there is a subsequent change in assumptions related warrants (in the instant case, an extension of the expiration date of the warrants), the difference between the amount originally recorded and the newly calculated amount, based upon the changed assumptions, is determined and the difference between the before and after valuation is recorded as an expense, with the corresponding credit to additional paid-in capital. No additional warrants modification expense was recorded as of June 30, 2023 and December 31, 2022, respectively.

The Company determined the fair value using the Black-Scholes option pricing model with the following assumptions.

Schedule of Stock options assumptions

Schedule of Stock option assumptions
	Before<br> modification			After<br> Modification
Dividend<br> rate		0	%		0	%
Risk-free<br> rate		0.06	%		0.12	%
Weighted<br> average expected life (years)		9<br> months			18<br> months
Expected<br> volatility		25	%		25	%
Exercise<br> price	$	1.4		$	1.4

The Company considered 25% volatility as from inception through the date of the Company common stocks.

Director'sStock option

On December 8, 2021, the Board of Directors approved a grant to Dennis Nguyen of a 10-year stock option to purchase 1,945,270 shares of common stock at an exercise price of $6.49 per share that are vested and are exercisable at any time.

Schedule of Stock Option

Schedule<br>of Stock Option
	Share<br> option		Weighted<br> average exercise price		Weighted<br><br> average<br> remaining<br> contractual life<br> (in years)
Outstanding<br> as of December 31, 2020		—		—		—
Granted		1,945,270	$	6.49		10
Exercised		—		—		—
Expired		—		—		—
Outstanding<br> as of December 31, 2021		1,945,270	$	6.49		9.25
Granted		—		—		—
Exercised		—		—		—
Expired		—		—		—
Outstanding<br> as of December 31, 2022		1,945,270	$	6.49		9

The total fair value of options vested during the six months ended June 30, 2023 and 2022 was $0 and $0 respectively.

The Company determined the fair value using the Black-Scholes option pricing model with the following assumptions for the six months ended June 30, 2023 and 2022:

Schedule of Stock option assumptions
	December<br> 8, 2021
Dividend<br> rate		0	%
Risk-free<br> rate		1.52	%
Weighted<br> average expected life (years)		10<br> years
Expected<br> volatility		130	%
Share<br> price	$	6.<br><br> <br>49

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Director'sstock awards

Schedule of Director's stock awards
	Stock<br> awards			Weighted<br> average exercise price		Weighted<br><br> average<br> remaining<br> contractual life
Unvested<br> as of December 31, 2021		651,960		$	7.65		1.67<br> years
Issued		—			—		—
Vested		(325,980	)		7.65		—
Cancelled		—			—		—
Unvested<br> as of December 31, 2022		325,980		$	7.65		0.92<br> years
Issued		—			—		—
Vested		—			—		—
Cancelled		—			—		—
Unvested<br> as of June 30, 2023		325,980		$	7.65		0.92<br> years

Below are the unvested shares vesting schedule at future years:

Schedule of Future years
Year<br> ending December 31 2023	325,980
Total	325,980

The Company issued 814,950 shares of its common stock on September 1, 2021 ("start date")of which 651,960 shares shall be subject to vesting. The shares shall vest in accordance with the following vesting schedule: 162,990 vesting shares will vest every six-months for a two-year period from the start date, with the first vesting date being March 1, 2022. For the three months ended June 30, 2023 and 2022, the Company recognized the amortization of stock compensation expense of $149,625 and $634,240, respectively. For the six months ended June 30, 2023 and 2022, the Company recognized the amortization of stock compensation expense of $496,125 and $1,802,584, respectively. The remaining unamortized vesting expenses in 0.42 years which estimated with a cost of $346,500.

NOTE－16PREFERRED STOCKS AND WARRANTS

As of June 30, 2023 and December 31, 2022, the Company’s preferred stocks have been designated as follow:

Schedule of Preferred stocks
	No.<br> of shares		Stated<br> Value
Series<br> A Convertible Preferred Stock		10,000	$	1,000
Series<br> B Convertible Preferred Stock		10,000	$	1,336
Series<br> B-1 Convertible Preferred Stock		15,000	$	2,917
Series<br> C Convertible Preferred Stock		15,000	$	5,763
Series<br> C-1 Convertible Preferred Stock		30,000	$	420
Series<br> X Super Voting Preferred Stock		3,500	$	0.0001

All of the Series A, B, B-1, C, and C-1 Preferred Shares were issued at a value of respective stated value per share. These all Series of Preferred Shares contain a conversion option, are convert into a fixed number of common shares or redeemable with the cash repayment at the liquidation, so as a result of this liquidation preference, under U.S GAAP, the Company has classified the all these Series of Preferred Shares within mezzanine equity in the consolidated balance sheet.

Series X Super Voting Preferred Stock was issued a par value per share. This Series of Preferred Shares does not contain a conversion option, so as a result of this liquidation preference, under U.S GAAP, the Company has classified the this Series of Preferred Shares within permanent equity in the consolidated balance sheet.

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VotingRights: (1)The affirmative vote of at least a majority of the holders of each series of preferred stock shall be necessary to:

(a)	increase<br> or decrease the par value of the shares of the Series A Preferred Stock, alter or change<br> the powers, preferences or rights of the shares of Series A Preferred Stock or create, alter<br> or change the powers, preferences or rights of any other capital stock of the Company if<br> after such alteration or change such capital stock would be senior to or pari passu with<br> Series A Preferred Stock; and
(a)	adversely<br> affect the shares of Series A Preferred Stock, including in connection with a merger, recapitalization,<br> reorganization or otherwise.
---	---

(2) The affirmative vote of at least a majority of the holders of the shares of the Series A Preferred Stock shall be necessary to:

(a)	enter<br> into a transaction or series of related transactions deemed to be a liquidation, dissolution<br> or winding up of the Corporation, or voluntarily liquidate or dissolve;
(b)	authorize<br> a merger, acquisition or sale of substantially all of the assets of the Company or any of<br> its subsidiaries (other than a merger exclusively to effect a change of domicile of the Company<br> to another state of the United States);
---	---
(c)	increase<br> or decrease (other than decreases resulting from conversion of the Series A Preferred Stock)the<br> authorized number of shares of the Company’s preferred stock or any series thereof,<br> the number of shares of the Company’s common stock or any series thereof or the number<br> of shares of any other class or series of capital stock of the Company; and
---	---
(d)	any<br> repurchase or redemption of capital stock of the Company except any repurchase or redemption<br> at cost upon the termination of services of a service provider to the Company or the exercise<br> by the Company of contractual rights of first refusal as applied to such capital stock.
---	---

DividendRights: The holders of the Company’s preferred stock are not entitled to any dividend rights.

ConversionRights (Series A Preferred Stock): Upon the consummation of this offering, the issued and outstanding shares of Series A Preferred Stock automatically convert into a number of shares of the Company’s common stock equal to the quotient obtained by dividing (x)the aggregate Stated Value of the issued and outstanding Series A Preferred Stock plus any other amounts due to the holders thereof divided by (y)the offering price of the Company’s common stock. If 90 days after conversion, the closing market price of the Company’s common stock as quoted on Nasdaq (the “Market Value”)has decreased below the initial public offering price, each holder of the Series A Preferred Stock shall be issued a warrant to purchase a number of shares of the Company’s common stock equal to 40% of the quotient of the (a)aggregate Stated Value held by such holder before conversion at the initial public offering price and the Market Value of the shares of common stock that were issuable upon conversion divided by (b)the Market Value. The warrants shall have a term of five years and shall be exercisable at the Market Value.

ConversionRights (Preferred Stock other than Series A and Series X Super Voting Preferred Stock): Upon the consummation of this offering, each issued and outstanding share of Series B Preferred Stock, Series B-1 Preferred Stock, Series C Preferred Stock and Series C-1 Preferred Stock will automatically convert into 750 shares of the Company’s common stock. Series X Super Voting Preferred stock shall not have any rights to convert into the Company’s common stock.

LiquidationRights: In the event of any liquidation, dissolution or winding up of the Company, either voluntary or involuntary (a "Liquidation Event"), the holders of each series of preferred stock shall be entitled to receive, prior and in preference to any distribution of any of the assets or surplus funds of the Company to the holders of the Company’s common stock by reason of their ownership thereof, an amount per share in cash equal to the greater of (x)the aggregate Stated Value for all shares of such series of Preferred Stock then held by then or (y)the amount payable per share of the Company’s common stock which such holder of preferred stock would have received if such holder had converted to common stock immediately prior to the Liquidation Event all of such series of preferred stock then held by such holder (the "Series Stock Liquidation Preference"). If, upon the occurrence of a Liquidation Event, the funds thus distributed among the holders of the preferred stock shall be insufficient to permit the payment to the holders of the preferred stock the full Series Stock Liquidation Preference for all series, then the entire assets and funds of the Company legally available for distribution shall be distributed ratably among the holders of the preferred stock in proportion to the aggregate Series Liquidation Preferences that would otherwise be payable to each of the holders of preferred stock. Such payment shall constitute payment in full to the holders of the preferred stock upon the Liquidation Event. After such payment shall have been made in full, or funds necessary for such payment shall have been set aside by the Company in trust for the account of the holders of preferred stock, so as to be immediately available for such payment, such holders of preferred stock shall be entitled to no further participation in the distribution of the assets of the Company. The sale of all or substantially all of the assets of the Company, or merger, tender offer or other business combination to which the Company is a party in which the voting stockholders of the Company prior to such transaction do not own a majority of the voting securities of the resulting entity or by which any person or group acquires beneficial ownership of 50% or more of the voting securities of the Company or resulting entity shall be deemed to be a Liquidation Event.

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OtherMatters: The holders of the Company’s preferred stock have no subscription or redemption privileges and are not subject to redemption. The Company’s Series Preferred Stock does not entitle its holders to preemptive rights. All of the outstanding shares of the Company’s preferred stock are fully paid and non-assessable.

SeriesA Preferred Shares

No Series A Preferred Stocks were issued during the three and six months ended June 30, 2023 and 2022.

Upon

the IPO Closing, all outstanding shares of Series A Preferred Stocks were automatically converted into 888,889 shares of the Company's common stock valued at $8,000,000, equal to approximately $9 per share.

As of June 30, 2023 and December 31, 2022, there were no shares of Series A Preferred Stocks issued and outstanding, respectively.

SeriesB Preferred Stocks

No Series B Preferred Stocks were issued during the three and six months ended June 30, 2023 and 2022.

Upon

the IPO Closing, all outstanding shares of Series B Preferred Stock were automatically converted into 764,400 shares of the Company's common stock valued at $3,412,503, equal to approximately $4.46 per share.

As of June 30, 2023 and December 31, 2022, there were no shares of Series B Preferred Stocks issued and outstanding, respectively.

SeriesB-1 Preferred Shares

There was no Series B-1 Preferred Stocks issued during the three and six months ended June 30, 2023 and 2022.

During

the year ended December 31, 2020, the Company issued 40 shares of its Series B-1 Preferred Stocks for the consulting services rendered valued at $116,680, equal to approximately $2,917 per share.

Upon

the IPO Closing, all outstanding shares of Series B-1 Preferred Stocks were automatically converted into 48,000 shares of the Company's common stock valued at $466,720, equal to approximately $9.72 per share.

As of June 30, 2023 and December 31, 2022, there were no shares of Series B-1 Preferred Stocks issued and outstanding, respectively.

SeriesC Preferred Shares

No Series C Preferred Stocks were issued during the three and six months ended June 30, 2023 and 2022.

Upon

the IPO Closing, all outstanding shares of Series C Preferred Stocks were automatically converted into 465,600 shares of the Company's common stock valued at $8,353,373, equal to approximately $17.9 per share.

As of June 30, 2023 and December 31, 2022, there were no shares of Series C Preferred Stocks issued and outstanding, respectively.

SeriesC-1 Preferred Shares

The Company accounts for warrants issued in accordance with the guidance on "Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity" in Topic 480. These warrants did not meet the criteria to be classified as a liability award and therefore were treated as an equity award and classified the Series C-1 Preferred Stocks within mezzanine equity in the consolidated balance sheet.

Upon

the IPO Closing, all outstanding shares of Series C-1 Preferred Stocks were automatically converted into 4,195,200 shares of the Company's common stock valued at $5,536,832, equal to approximately $1.21 per share.

As of June 30, 2023 and December 31, 2022, there were no shares of Series C-1 Preferred Stocks issued and outstanding, respectively.

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SeriesX Super Voting Preferred Shares

In August 2021, the Company created a new series of preferred stock titled "Series X Super Voting Preferred Stock", at par value, consisting of 2,000 shares. The Series X Super Voting Preferred Stock carries certain rights and privileges including but not limited to the right to 4,000 votes per share)to vote on all matters that may come before the stockholders of the Corporation, voting together with the common stock as a single class on all matters to be voted or consented upon by the stockholders but is not entitled to any dividends, liquidation preference or conversion or redemption rights. The Series X Super Voting Preferred Stock is accounted for as an equity classification.

As

of June 30, 2023 and December 31, 2022, there were 3,500 and 3,500 shares of Series X Super Voting Preferred Stocks issued and outstanding, respectively.

NOTE－

17 TREASURY STOCKS

On

January 25, 2023, the Board of Directors (“Board”) authorized a $2,000,000 share repurchase program. The following table presents information with respect to repurchases of common stock during the six months ended June 30, 2023 and 2022:

Schedule of repurchases of common stock
	Six<br> Months ended June 30,
	2023		2022
Aggregate<br> common stock repurchased	$	611,605	$	—
Weighted<br> average price paid per share		1.0473		—
Total<br> amount paid	$	640,525	$	—

As

of June 30, 2023, we had up to $1,359,475 of the share repurchase program available. Under the share repurchase program, repurchases can be made from time to time using a variety of methods, which may include open market purchases, privately negotiated transactions or otherwise, all in accordance with the rules of the SEC and other applicable legal requirements. The timing and amount of any shares of our common stock that are repurchased under the share repurchase program will be determined by our management based on market conditions and other factors.  The share repurchase program does not obligate us to acquire any particular amount of common stock, and may be modified, suspended or discontinued at any time or from time to time at our discretion.

NOTE－

18 INCOME TAXES

For the three months ended June 30, 2023 and 2022, the local (“Nevada”)and foreign components of loss before income taxes were comprised of the following:

Schedule of loss before income taxes
	Six<br> Months ended June 30,
	2023		2022
Tax<br> jurisdiction from:
-<br> Local	$	5,647,001	$	11,263,271
-<br> Foreign		3,050,774		2,912,629
Loss<br> before income taxes	$	8,697,775	$	14,175,900

The provision for income taxes consisted of the following:

Schedule of provision for income taxes	Six<br> Months ended June 30,
	2023		2022
Current:
-<br> United States	$	—	$	—
-<br> Singapore		—		—
-<br> Vietnam		—		—
-<br> India		1,265		2,099
-<br> Philippines		—		—
-<br> Indonesia		403		—
-<br> Thailand		—		—
-<br> Malaysia		—		—
Deferred:
-<br> United States		—		—
-<br> Singapore		—		—
-<br> Vietnam		—		—
-<br> India		—		—
-<br> Philippines		—		—
-<br> Indonesia		—		—
-<br> Thailand		—		—
-<br> Malaysia		—		—
Income<br> tax expense	$	1,668	$	2,099

The effective tax rate in the years presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rate. The Company operates in various countries: Singapore and Vietnam that are subject to taxes in the jurisdictions in which they operate, as follows:

UnitedStates

The Company is registered in the Nevada and is subject to the tax laws of United States.

As

of June 30, 2023, the operation in the U.S. incurred $29,529,329 of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss carryforwards has no expiration.

The

Company has provided for a full valuation allowance against the deferred tax assets of $6,201,159 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future.

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Singapore

The Company’s subsidiary is registered in the Republic of Singapore and is subject to the tax laws of Singapore.

As

of June 30, 2023, the operation in the Singapore incurred $7,036,368 of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss carryforwards has no expiration. The Company has provided for a full valuation allowance against the deferred tax assets of $1,196,182 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future.

Vietnam

The Company’s subsidiary operating in Vietnam is subject to the Vietnam Income Tax at a standard income tax rate of 20% during its tax year.

As

of June 30, 2023, the operation in the Vietnam incurred $4,033,701 of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss carryforwards begin to expire in 2026, if unutilized. The Company has provided for a full valuation allowance against the deferred tax assets of $806,740 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future.

India

The Company’s subsidiary operating in India is subject to the India Income Tax at a standard income tax rate of 25% during its tax year.

As

of June 30, 2023, the operation in the India incurred $5,028

of net operating gain. The Company has provided

for a full tax effect allowance against the current and deferred tax expenses of $1,265.

Indonesia

The Company's subsidiary is registered in Indonesia and is subject to the tax laws of Indonesia.

As

of June 30, 2023, the Company's subsidiary operations in Indonesia incurred $712,926 of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss carryforwards have no expiration. The Company has provided for a full valuation allowance against the deferred tax assets of $156,844 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future.

Philippines

The Company's subsidiary is registered in the Philippines and is subject to the tax laws of the Philippines.

As

of June 30, 2023, the Company's subsidiary operations in Philippines incurred $959,193 of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss carryforwards have no expiration. The Company has provided for a full valuation allowance against the deferred tax assets of $239,798 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future.

Thailand

The Company's subsidiary is registered in Thailand and is subject to the tax laws of Thailand.

As

of June 30, 2023, the Company's subsidiary operations in Thailand incurred $799,610 of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss carryforwards have no expiration. The Company has provided for a full valuation allowance against the deferred tax assets of $155,922 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future.

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Malaysia

The Company's subsidiary is registered in Malaysia and is subject to the tax laws of Malaysia.

As

of June 30, 2023, the operation in the Malaysia incurred $12,928of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss carryforwards have no expiration. The Company has provided for a full valuation allowance against the deferred tax assets of $3,103 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future.

Deferred tax assets and liabilities are recognized for future tax consequences between the carrying amounts of assets and liabilities and their respective tax basis using enacted tax rates in effect for the tax year in which the differences are expected to reverse. Significant deferred tax assets and liabilities of the Company as of June 30, 2023 and December 31, 2022 consist of the following:

Schedule of Deferred Tax Assets and Liabilities

Schedule of Deferred Tax Assets and Liabilities
	June<br> 30, 2023			December<br> 31, 2022
Deferred<br> tax assets:
Software<br> intangibles (U.S)	$	150,465		$	261,555
Deferred<br> Stock Compensation (U.S.)		5,864,670			7,539,329
ROU<br> net liability		—			248
Net<br> operating loss carryforwards
- <br> United States		6,201,159			4,791,994
- <br> Singapore		1,196,182			975,690
- <br> Vietnam		806,740			565,376
- <br> India		—			—
- <br> Philippines		239,798			144,211
- <br> Indonesia		156,844			85,450
- <br> Thailand		155,922			139,940
- <br> Malaysia		3,103			—
		14,774,883			14,503,793
Less:<br> valuation allowance		(14,774,883	)		(14,503,793	)
Deferred<br> tax assets, net	$	—		$	—

The Internal Revenue Code includes a provision, referred to as Global Intangible Low-Taxed Income ("GILTI"), which provides for a 10.5% tax on certain income of controlled foreign corporations. We have elected to account for GILTI as a period cost if and when occurred, rather than recognizing deferred taxes for basis differences expected to reverse.

The Company is subject to taxation in the U.S. and various foreign jurisdictions. U.S. federal income tax returns for 2018 and after remaining open to examination. We and our subsidiaries are also subject to income tax in multiple foreign jurisdictions. Generally, foreign income tax returns after 2017 remain open to examination. No income tax returns are currently under examination. As of June 30, 2023 and December 31, 2022, the Company does not have any unrecognized tax benefits, and continues to monitor its current and prior tax positions for any changes. The Company recognizes penalties and interest related to unrecognized tax benefits as income tax expense. For the three and six months ended June 30, 2023 and 2022, there were no penalties or interest recorded in income tax expense.

NOTE－

19 PENSION COSTS

The

Company is required to make contribution to their employees under a government-mandated defined contribution pension scheme for its eligible full-times employees in all countries operating in the Company. The Company is required to contribute a specified percentage of the participants’ relevant income based on their ages and wages level. During the three months ended June 30, 2023 and 2022, $113,767 and $37,672 contributions were made accordingly. During the six months ended June 30, 2023 and 2022, $205,973 and $45,762 contributions were made accordingly.

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NOTE－

20 RELATED PARTY TRANSACTIONS

From time to time, a shareholder and director of the Company advanced funds to the Company for working capital purposes. Those advances are unsecured, non-interest bearing and due on demand.

The

Company paid and accrued to the director and key management personnel, the total salaries of $242,500 and $0 and $378,060 and $0 during the three months ended June 30, 2023 and 2022, respectively.

The

Company paid and accrued to the director and key management personnel, the total salaries of $485,000 and $0 and $596,119 and $0 during the six months ended June 30, 2023 and 2022, respectively.

The

Company issued 19,559 and 82,907 shares of Common stock, at the price of $149,625 and $634,240 for the stock based compensation to a key management personnel during the three months ended June 30, 2023 and 2022, respectively.

The

Company issued 64,853 and 235,667 shares of Common stock, at the price of $496,125 and $1,802,154 for the stock based compensation to a key management personnel during the six months ended June 30, 2023 and 2022, respectively.

The

Company accrued 79,516 shares to key management personnel, the total share option of $124,514 and $0 during the three months ended June 30, 2023 and 2022, respectively.

The

Company accrued 432,361 shares to directors and key management personnel, the total share option of $677,036 and $0 during the six months ended June 30, 2023 and 2022, respectively.

The

Company subsidiary paid their one officer, total professional fee of $2,531 and $1,151 during the three months ended June 30, 2023 and 2022, respectively.

The

Company subsidiary paid their one officer, total professional fee of $5,521 and $5,599 during the six months ended June 30, 2023 and 2022, respectively.

The

Company paid and accrued to its shareholders, total professional fee of $0 and $209,000 during the three months ended June 30, 2023 and 2022, respectively.  Including in the above the Company issued 0 shares of $0 and 100,000 shares of $209,000 during the three months ended June 30, 2023 and 2022, respectively.

The

Company paid and accrued to its shareholders, total professional fee of $200,000 and $506,000 during the six months ended June 30, 2023 and 2022, respectively.  Including in the above the Company issued 196,078 shares of $200,000 and 200,000 shares of $506,000 during the six months ended June 30, 2023 and 2022, respectively.

The

Company paid and accrued to its shareholders, total professional fee of $0 and $209,000 during the three months ended June 30, 2023 and 2022, respectively.  Including in the above the Company issued 0 shares of $0 and 100,000 shares of $209,000 during the three months ended June 30, 2023 and 2022, respectively.

Apart from the transactions and balances detailed elsewhere in these accompanying consolidated unaudited condensed financial statements, the Company has no other significant or material related party transactions during the periods presented.

NOTE－21 CONCENTRATIONS

OF RISK

The Company is exposed to the following concentrations of risk:

(a)Major customers

For the three and six months ended June 30, 2023 and 2022, respectively, the customers who accounted for 10% or more of the Company’s revenues and its outstanding receivable balances at year-end dates, are presented as follows:

Schedule of concentrations of risk
	Three<br> months ended June 30, 2023					June<br> 30, 2023
Customer	Revenues		Percentage<br> <br>of revenues			Accounts<br> <br>receivable
Customer<br> A	$	1,074,406		49.12	%	$	352,072
	Six<br> months ended June 30, 2023					June<br> 30, 2023
---	---	---	---	---	---	---	---
Customer	Revenues		Percentage<br> <br>of revenues			Accounts<br> <br>receivable
Customer<br> A	$	2,027,071		47.92	%	$	352,072
	Three<br> months ended June 30, 2022				June<br> 30, 2022
---	---	---	---	---	---	---
Customer	Revenues		Percentage<br> <br>of revenues		Accounts<br> <br>receivable
Customer<br> A	$	—		—	$	—
	Six<br> months ended June 30, 2022				June<br> 30, 2022
---	---	---	---	---	---	---
Customer	Revenues		Percentage<br> <br>of revenues		Accounts<br> <br>receivable
Customer<br> A	$	—		—	$	—

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(b)Major vendors

For the three and six months ended June 30, 2023 and 2022, there is no vendor accounts for 10% or more of the Company’s cost of revenue.

(c)Credit risk

Financial instruments that are potentially subject to credit risk consist principally of trade receivables. The Company believes the concentration of credit risk in its trade receivables is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally require collateral from customers. The Company evaluates the need for an allowance for doubtful accounts based upon factors affecting the credit risk of specific customers, historical trends and other information.

(d)Exchange rate risk

The reporting currency of the Company is US$, to date the majority of the revenues and costs are denominated in VND, SGD, PHP, INR, IDR, MYR and THB and a significant portion of the assets and liabilities are denominated in VND, SGD, INR, IDR, MYR and THB. As a result, the Company is exposed to foreign exchange risk as its revenues and results of operations may be affected by fluctuations in the exchange rate between US$ and VND, SGD, PHP, INR, IDR, MYR and THB. If VND, SGD, PHP, INR, IDR, MYR and THB depreciate against US$, the value of VND, SGD, PHP, INR IDR, MYR and THB revenues and assets as expressed in US$ financial statements will decline. The Company does not hold any derivative or other financial instruments that expose us to substantial market risk.

(e)Economic and political risks

The Company's operations are conducted in the Republic of Vietnam. Accordingly, the Company's business, financial condition and results of operations may be influenced by the political, economic and legal environment in Vietnam, and by the general state of Vietnam economy.

The Company's operations in Vietnam and India are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by changes in the political and social conditions in Vietnam and India, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation.

NOTE－22 COMMITMENTS

AND CONTINGENCIES

On

May 31, 2023, Thoughtful Media Group Inc., a Nevada corporation (the “Buyer”), a wholly owned subsidiary of the Company (the “Registrant”), entered into an assets purchase agreement with CV Kaya Kreasi Dunia, purchased its brand name of “Newave”, full employees, full customer and full vendor list, at a consideration of combination of cash sum of $26,000

and the Company stocks worth equivalent of $104,000

.

Litigation

From time to time, the Company may become involved in various lawsuits and legal proceedings, which arise, in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm the Company's business. The Company is not aware of any such legal proceedings that will have, individually or in the aggregate, a material adverse effect on its business, financial condition or operating results.

The Company disclosed its litigation matter in its December 31, 2022, Form 10-K and there have been no changes or updates to those litigation matters to report in this Form 10-Q.

NOTE－23 SUBSEQUENT

EVENTS

In accordance with ASC Topic 855, "Subsequent Events", which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before unaudited condensed financial statements are issued, the Company has evaluated all events or transactions that occurred after June 30, 2023, up through August 9, 2023, the Company issued the unaudited condensed consolidated financial statements.

On July 14, 2023, Mekong Leisure Travel Join Stock Company changed its business type from Joint Stock Company to Company Limited.

On July 17, 2023, Mekong Leisure Travel Company Limited, a Vietnam corporation (the “Buyer”), a wholly-owned subsidiary of the Company (The “Registrant”), entered into a Share Transfer Agreement to acquire 100% of the outstanding shares of Vietnam International Travel and Service Joint Stock Company, a Vietnam corporation, at a cash consideration of $150,000.

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Item2. Management's Discussion and Analysis of Financial Condition and Results of Operations

ThisForm 10-Q contains forward-looking statements rather than historical facts that involve risks and uncertainties. You can identify thesestatements by the use of forward- looking words such as "may," "will," "expect," "anticipate,""estimate," "continue" or other similar words. Such forward-looking statements discuss our current expectations offuture results of operations or financial condition. However, there may be events in the future that we are unable to accurately predictor control and there may be risks, uncertainties and events that may cause our actual results to differ materially from the expectationswe describe in our forward-looking statements, which could have a material adverse effect on our business, operating results and financialcondition. The forward-looking statements included herein are only made as of the date of the filing of this Form 10-Q, and we undertakeno obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

BASIS

OF PRESENTATION

The following discussion should be read in conjunction with the financial information included elsewhere in this Quarterly Report on Form 10-Q (this "Report"), including our unaudited condensed consolidated financial statements and the related notes and with our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC on March 23, 2023, Quarterly Report on Form 10-Q for the three months ended March 31, 2023, as filed with the SEC on May 11, 2023, and other reports that we file with the SEC from time to time.

References in this Quarterly Report on Form 10-Q to "us", "we", "our" and similar terms refer to Society Pass Incorporated.

Overview

We are, through the acquisition and operation of e-commerce platforms and mobile applications through our direct and indirect wholly or majority-owned subsidiaries, building the next generation digital ecosystem and loyalty platform in Southeast Asia (“SEA”) primarily Singapore, Thailand, Indonesia, Vietnam and the Philippines.

The companies by the Company form the Society Pass Group (the “Group”). The Group currently markets to both consumers and merchants in SEA while maintaining an administrative headquarters in Singapore and a software development center in the Philippines. We continue to expand our e-commerce ecosystem throughout the rest of SEA by making selective acquisitions of leading e-commerce companies and applications with particular focuses on Vietnam, Thailand, Indonesia and the Philippines of SEA. Material acquisitions include:

•	In<br> February 2021, we acquired an online lifestyle platform of Leflair branded assets (the “Leflair<br> Assets”).
•	In<br> February 2022, the Company completed the acquisition of 100% of the equity interest<br> of New Retail Experience Incorporated and Dream Space Trading Company Limited through its<br> subsidiary – Push Delivery Pte Limited, which two companies mainly provide an on-line<br> grocery and food delivery platform in the Philippines and Vietnam respectively.
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•	In<br> May 2022, the Company completed another acquisition of 100% of the equity interests<br> of Gorilla Networks Pte Ltd, Gorilla Mobile Pte Ltd, Gorilla Connects Pte Ltd and Gorilla<br> Networks (VN) Co Ltd (collectively, "Gorilla Networks"), a food delivery service.
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•	On<br> July 7, 2022, the Company and its wholly owned subsidiary Thoughtful Media Group Incorporated<br> collectively acquired 100% of the equity interests of Thoughtful Media Group Incorporated<br> and AdActive Media, Inc. (collectively "Thoughtful Media"), whose business provides<br> services to advertisers that helps to make internet advertising more effective.
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•	On<br> July 21, 2022, the Company acquired 100% of the equity interests of Mangan PH Food Delivery<br> Service Corp. ("Mangan), a Philippines restaurant and grocery delivery business.
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•	On<br> August 15, 2022, the Company and its 95%-owned subsidiary SOPA Technology, Pte, Ltd.,<br> collectively acquired 75% of the outstanding capital stock of Nusatrip International Pte<br> Ltd. ("Nusatrip") and also purchased all of the outstanding capital stock of PT<br> Tunas Sukses Mandiri ("Tunas"), a company existing under the law of the Republic<br> of Indonesia, and both engaged in online ticketing and reservation services.
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•	On<br> April 1, 2023, the Company’s 100% owned subsidiary Thoughtful Media Group Inc and Adactive<br> Media CA Inc acquired 100% of outstanding capital stock of PT Wahana Cerita Indonesia, an<br> Indonesia company operating digital marketing and event organizing.
---	---
•	On<br> April 1, 2023, the Company’s 99% owned subsidiary Nusatrip International Pte. Ltd.<br> acquired 100% of the outstanding capital stock of Mekong Leisure Travel Join Stock Company,<br> a Vietnam travel agency.
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Operating in SEA, we are focused on six operating verticals: loyalty, lifestyle, grocery and food delivery, telecommunications, digital marketing and travel.

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Loyalty

The Company spent over two years building a cutting edge, proprietary IT architecture to effectively scale and support our ecosystem’s companies, consumers and merchants. Using our loyalty platform, which we plan to introduce in 2023, consumers may earn, and merchants may issue, Society Points. The Company will aggregate the data across various touch points and build a realistic view or consumer behavior and use this behavior to increase sales across our ecosystem by: cross-pollinating acquired companies with other existing verticals, customer re-targeting, offline and online behavior prediction and cross promotions and loyalty points. The Company ecosystem becomes a key enabler for our users by converting this aggregation of data into creation of loyalty for our ecosystem companies to generate revenue.

Lifestyle

The Company has developed an online lifestyle platform (the "Lifestyle Platform") under its own brand name of "Leflair" to enable consumers to purchase high-end brands in many categories. Using the Company's smart search engine, consumers search or review their favorite brands among hundreds of choices in various categories, including Apparel, Bags & Shoes, Accessories, Health & Beauty, Home & Lifestyle, International, Women, Men and Kids & Babies categories. The Lifestyle Platform also allows customers to order from hundreds of vendor choices with personalized promotions based on their individual purchase history and location. The platform has also partnered with a Vietnam-based delivery company, Amilo, to offer seamless delivery of product from merchant to consumer's home or office at the touch of a button. Consumers can place orders for delivery or can collect their purchases at the Company's logistics center.

Groceryand Food Delivery

Other online platforms include online platforms in Vietnam, under the brand name of "Handycart", and Philippines, under the brand names of "Pushkart" and "Mangan", to enable the consumers to purchase meals from restaurants and food from local grocery and food merchants and deliver to them in their area.

Telecommunications

The Company operates a Singapore-based online telecommunication reseller platform under brand name of "Gorilla" to enable the consumers to subscribe local mobile data and overseas internet data in different subscription package. Established in Singapore in 2019, Gorilla utilizes blockchain and Web3 technology to operate a MVNO for its users in South East Asia (SEA). With network coverage to over 150 countries, Gorilla offers a full suite of mobile communication services such as local calls, international roaming, data, and SMS texting.

DigitalMarketing

The acquisition of a digital marketing platform, TMG, amplifies the reach and engagement of the Company's e-commerce ecosystem and retail partners. Originally founded in 2010, TMG today creates and distributes digital advertising campaigns across its multi-channel network in both SEA and the US. With its intimate knowledge of local markets, digital marketing technology tools and social commerce business focus, advertisers leverage TMG's wide influencer network throughout SEA to market and sell advertising inventory exclusively with specific placement and effect.

As a result, Thoughtful Media's content creator partners earn a larger share of advertising revenues from international consumer brands. Thoughtful Media's data-rich multi-channel network has uploaded over 675,000 videos with over 80 billion video views. The current network of 263 YouTube channels has onboarded over 85 million subscribers with an average monthly viewership of over 600 million views.

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Travel

The Company purchased the Nusatrip Group, a leading Jakarta-based Online Travel Agency ("OTA") in Indonesia and across SEA. The Nusatrip acquisition extended SoPa's business reach into SEA regional travel industry and marked the Company's first foray into Indonesia. Established in 2013 as the first Indonesian OTA accredited by the International Air Transport Association, Nusatrip pioneered offering a comprehensive range of airlines and hotels to Indonesian corporate and retail customers. With its first mover advantage, Nusatrip has onboarded over 1.2 million registered users, over 500 airlines and over 200,000 hotels around the world as well as connected with over 80 million unique visitors.

Our loyalty-focused and data-driven e-commerce marketing platform interfaces will connect consumers with merchants in the F&B and lifestyle sectors, assisting local brick-and-mortar businesses to access new customers and markets to thrive in an increasingly convenience-driven economy. Our Platform will integrate with both global and country-specific search engines and applications and accept international address and phone number data, providing a consumer experience that respects local languages, address formats and customs. Our plan is to have Strategic Partners work with us to penetrate local markets, while our Platform allows effortless integration with existing technological applications and websites.

As of August 9, 2023, we have onboarded over 3.3 million registered consumers and over 650,000 registered merchants on our Platform.

GlobalEvents

The Russian-Ukraine war and the supply chain disruption have not affected any specific segment of our business.

Softwareand Development

Our ability to compete depends in large part on our continuous commitment to research and development, our ability to rapidly introduce new features and functionality and our ability to improve proven applications for established markets in which we have competitive advantages. We intend to work closely with our customers to continuously enhance the performance, functionality, usability, reliability and flexibility of our applications.

Our software and development team is responsible for the design enhancements, development, testing and certification of the Application. In addition, we may, in the future, utilize third parties for our automated testing, managed upgrades, software development and other technology services.

IntellectualProperty Portfolio

We strive to protect and enhance the proprietary technology and inventions that are commercially important to our business, including seeking, maintaining and defending patent rights. Our policy is to seek to protect our proprietary position through a combination of intellectual property rights, including trademarks, copyrights, trade secret laws and internal procedures. Our commercial success will depend in part on our ability to protect our intellectual property and proprietary technologies.

CorporateInformation

Our principal executive offices are located at 701 S. Carson Street, Suite 200, Carson City, NV 89701.

Our corporate website address is www.thesocietypass.com. The website for our loyalty marketplace is www.sopa.asia. The information included on our websites are not part of this prospectus.

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FinancialCondition

Resultsof Operations

The following table sets forth certain operational data for the three and six months ended June 30, 2023 and 2022:

	Three<br> months ended <br> June 30,						Six<br> months ended <br> June 30,
	2023			2022			2023			2022
Revenue,<br> net	$	2,187,232		$	499,062		$	4,229,812		$	944,152
Cost<br> of revenue		(1,610,073	)		(499,200	)		(2,966,416	)		(959,083	)
Gross<br> income (loss)		577,159			(138	)		1,263,396			(14,931	)
Less<br> operating expenses:
Sales<br> and marketing expenses		(98,714	)		(253,290	)		(229,378	)		(449,392	)
Software<br> development costs		(15,209	)		(17,320	)		(29,128	)		(36,868	)
Impairment<br> loss		—			—			—			(528,583	)
General<br> and administrative expenses		(3,879,049	)		(7,345,364	)		(9,870,935	)		(13,186,062	)
Total<br> operating expenses		(3,992,972	)		(7,615,974	)		(10,129,441	)		(14,200,905	)
Loss<br> from operations		(3,415,813	)		(7,616,112	)		(8,866,045	)		(14,215,836	)
Other<br> income (expense):
Interest<br> income		59,208			6,027			99,194			6,072
Interest<br> expense		(300	)		(384	)		(652	)		(4,429	)
Gain<br> on early lease termination		—			—			1,064			—
JV<br> income		3,696			—			6,844			—
Waiver<br> of loan payable		15,200			—			15,200			—
Written-off<br> of fixed assets		(2,583	)		—			(2,583	)		—
Other<br> income		32,416			24,672			49,203			38,293
Total<br> other income		107,637			30,315			168,270			39,936
Loss<br> before income taxes		(3,308,176	)		(7,585,797	)		(8,697,775	)		(14,175,900	)
Income<br> taxes		(1,054	)		(797	)		(1,668	)		(2,099	)
NET<br> LOSS	$	(3,309,230	)	$	(7,586,594	)	$	(8,699,443	)	$	(14,177,999	)

Revenue. We generated revenues of $2,187,232 and $499,062 during the three months ended June 30, 2023 and 2022, respectively. During the six month ended June 30, 2023 and 2022 we generated revenue of $4,229,812 and $944,152, respectively. The significant increase in revenue for three and six month periods was mainly due to increase in the sales from digital marketing and online ticketing and reservation business, newly acquired subsidiaries since third quarter of 2022.

During the three and six months ended June 30, 2023 and 2022, the following customer exceeded 10% of the Company's revenues and its outstanding receivable balances at year-end dates, are presented as follows:

	Six<br> months ended June 30, 2023					June<br> 30, 2023
Customer	Revenues		Percentage<br> <br> of revenues			Accounts<br> <br> receivable
Customer<br> A	$	2,027,07		47.92	%	$	352,072
	Six<br> months ended June 30, 2022				June<br> 30, 2022
---	---	---	---	---	---	---
Customer	Revenues		Percentage<br> <br> of revenues		Accounts<br> <br> receivable
Customer<br> A	$	—		—	$	—
	Three<br> months ended June 30, 2023					June<br> 30, 2023
---	---	---	---	---	---	---	---
Customer	Revenues		Percentage<br> <br> of revenues			Accounts<br> <br> receivable
Customer<br> A	$	1,074,406		49.12	%	$	352,072
	Three<br> months ended June 30, 2022				June<br> 30, 2022
---	---	---	---	---	---	---
Customer	Revenues		Percentage<br> <br> of revenues		Accounts<br> <br> receivable
Customer<br> A	$	—		—	$	—

The customer is in United States.

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Costof Revenue. Cost of revenue was $1,610,073 and $499,200 during three months ended June 30, 2023, and 2022, respectively. During the period of six months ended June 30, 2023 and 2022, the incurred cost of revenue was $2,966,416 and $959,083, respectively. Cost of revenue increased primarily as a result of the increased sales.

Majorvendors

For the three and six months ended June 30, 2023 and 2022, no vendor accounted for 10% or more of the Company's cost of revenue.

GrossIncome (Loss) We recorded a gross income of $577,159 and a gross loss of $138 for the three months ended June 30, 2023 and 2022, respectively. During the six months ended June 30, 2023 and 2022, we recorded a gross income of $1,263,396 and gross loss of $14,931, respectively. The turnaround from gross loss to gross income is due to increased gross income from revenue from digital marketing and online ticketing and reservation business, newly acquired subsidiaries in second half of 2022. Gross income margin was 26% and gross loss margin of 0.03% for the three months ended Jun 30, 2023 and 2022, respectively. During the six months ended Jun 30, 2023 and 2022, our gross income margin was 30% and gross loss margin of 1.58% respectively. Improved in gross margin for the three and six months period ended June 30, 2023 was due to higher profit margin arising from newly acquired businesses in the third quarter of 2022.

Salesand Marketing Expenses ("S&M"). We incurred S&M expenses of $98,714 and $253,290 for the three months ended June 30, 2023 and 2022, respectively. During the six months ended June 30, 2023 and 2022, we incurred S&M expenses of $229,378 and $449,392, respectively. The decrease in S&M expense in 2023 was primarily attributable to the planned cost reductions and marketing strategy redesign.

SoftwareDevelopment Cost ("SDC"). We incurred SDC expenses of $15,209 and $17,320 for three months ended June 30, 2023 and 2022, respectively. During the six months ended June 30, 2022 and 2021, we incurred SDC expenses of $29,128 and $36,868, respectively. The decrease in SDC in 2023 was primarily attributable to the restructuring of our technology development team.

Impairmentloss ("IL"). We incurred impairment loss of $528,583 for the six months ended June 30, 2022. No impairment charge was incurred for the three months ended June 30, 2023 and 2022 and six months ended June 30, 2023. The charge in 2022 was primarily attributable to the impairment of goodwill related to the acquisition of the New Retail Experience Incorporated’s ecommerce asset in the first quarter of 2022 which was expensed during the period due to the short life term of the asset and the quantum of consideration.

Generaland Administrative Expenses ("G&A"). We incurred G&A expenses of $3,879,049 and $7,345,364 for the three months ended June 30, 2023 and 2022, respectively. During the six months ended June 30, 2023 and 2022, we incurred G&A expenses of $9,870,935 and $13,186,062, respectively. The G&A is primarily consisting of the professional costs associated with costs related to business acquisitions, the Company's ongoing expenses for its listing on the Nasdaq Stock Exchange, staff cost and stock based compensation for services, and D&O insurance cost. The significant decrease is primarily due to effectiveness of cost control plan.

IncomeTax Expense. Our income tax expense for the three months ended June 30,2023 and 2022 was $1,054 and $797, respectively, and for six months ended June 30, 2023 and 2022 was $1,668 and $2,099, respectively.

NetLoss. As a result of the items noted above, for the three months ended June 30, 2023, we incurred a net loss of $3,309,230 as compare to the same period ended June 30,2022 of $7,586,594. During the six months ended June 30, 2023 the Company incurred a loss of $8,699,443, as compared to $14,177,999 for the same period ended June 30, 2022. The decrease in net loss was primarily attributable to increased revenue and gross income. The net loss for the six months ended June 30, 2023 includes non-cash items including non-cash stock-based compensation for services of $2,267,250 and depreciation and amortization of $935,531.

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Liquidityand Capital Resources

As of June 30, 2023, we had cash and cash equivalents and restricted cash of $10,893,434 and $80,631, respectively, accounts receivable of $1,244,260, deposits, prepayments and other receivables of $1,762,319, inventories of $200,359, contract assets of $303,001 and deferred tax assets of $164,836.

As of December 31, 2022, we had cash and cash equivalents and restricted cash of $18,930,986 and $72,350, respectively, accounts receivable of $951,325, deposits, prepayments and other receivables of $2,711,042, inventories of $310,932 and contract assets of $20,310.

For the six months ended June 30, 2023, the Company's stockholders' equity was $13,123,593 which decreased as a result of an increase in accumulated deficit partially offset by additional paid-in-capital. For the six months ended June 30, 2023, the Company incurred net loss of $8,699,443 and net cash used in operating activities of $6,886,251. Net cash used in investing activities was $217,521. Net cash used in financing activities was $640,525, resulting principally from share buyback exercise.

While the Company believes that it will be able to continue to grow the Company's revenue base and control expenditures, there is no assurance it will be able to do so. The Company continually monitors its capital structure and operating plans and evaluates various potential funding alternatives that may be needed in order to finance the Company's business development activities, general and administrative expenses and growth strategy. We expect to continue to rely on cash generated through financing from public offerings or private offerings by our parent company or one or more of our subsidiaries, to finance our operations and future acquisitions. The Company believes that it has sufficient liquidity to continue its current business plans and operations for at least one year.

	Six<br> Months Ended June 30,
	2023			2022
Net<br> cash used in operating activities	$	(6,886,251	)	$	(5,448,474	)
Net<br> cash used in investing activities		(217,521	)		(227,873	)
Net<br> cash (used in) provided by financing activities		(640,525	)		10,351,413
Effect<br> on exchange rate change		(338,975	)		73,003
Net<br> change in cash and cash equivalents		(8,083,271	)		4,748,069
Cash<br> and cash equivalent and restricted cash at beginning of period		19,003,336			23,264,777
Cash<br> and cash equivalent and restrickted cash at end of period	$	10,920,605		$	28,012,846

NetCash Used in Operating Activities.

For the six months ended June 30, 2023, net cash used in operating activities was $6,886,251, which consisted primarily of a net loss of $8,699,443, gain from early lease termination of $1,064, waiver of loan payable of $15,200, deferred tax assets of $164,836, accounts receivable of $269,800, contract assets of $282,691, contract liabilities of $203,281, accrued liabilities and other payables of $2,047,472 and Operating lease liabilities of $286,297, partially offset by depreciation and amortization of $863,917, written-off of fixed assets of $2,583, non-cash stock-based compensation for services of $2,267,250, inventories of 110,573, deposits, prepayments and other receivables of $1,005,716, accounts payable of $425,124, advances to relayed parties of $57,070 and right of use assets of $279,986.

For the six months ended June 30, 2022, net cash used in operating activities was $5,448,474, which consisted primarily of a net loss of $14,177,999, inventories of $111,060, contract liabilities of $20,611, advance to related parties of $502,014 and operating lease liabilities of $152,715, primarily offset by depreciation and amortization of $1,614,617, impairment loss of $528,583, financing charges – first insurance funding of $4,429, non-cash stock based compensation for services of $4,208,568, accounts receivable of $8,699, deposits, prepayments and other receivables of $2,470,800, accounts payable of $104,097, accrued liabilities and other payables of $436,712 and right of use assets of $139,420.

We expect to continue to rely on cash generated through financing from public offerings or private offerings of our or one or more of our subsidiaries' securities, to finance our operations and future acquisitions.

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NetCash Used In Investing Activities.

For the six months ended June 30, 2023, there was a net cash outflow of $217,521, which consist of $244,454 used in purchase of property, plant, and equipment and partially offset by $26,933 of cash generated from purchase of subsidiary and business acquisition.

For the six months ended June 30, 2022, there was a net cash outflow of $227,873, which consist of $200,000 used for purchase of subsidiaries and purchase of property, plant, and equipment of $58,901, partially offset by cash generated from purchase of subsidiary and business acquisition of $31,028.

NetCash Provided by Financing Activities.

For the six months ended June 30, 2023, net cash used in financing activities was $640,525 mainly for repurchase of common stock.

For the six months ended June 30, 2022, net cash provided by financing activities was $10,351,413, primarily consisting of funds raised from issuance of preferred stock and exercise of warrants into preferred stock of $412,890 and public offering of $10,402,891, partially offset by repayment of loan of $464,368.

CriticalAccounting Policies and Estimate

• Basis of presentation

The Company has prepared the accompanying unaudited condensed financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC")for interim financial reporting. These financial statements are unaudited and, in our opinion, include all adjustments consisting of normal recurring adjustments and accruals necessary for a fair presentation of our condensed balance sheets, statements of operations and other comprehensive loss, statements of stockholders' deficit and cash flows for the periods presented. Operating results for the periods presented are not necessarily indicative of the results that may be expected for any subsequent quarter or for the full year ending December 31, 2023 due to various factors. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States ("GAAP")have been omitted in accordance with the rules and regulations of the SEC. These condensed consolidated financial statements should be read in conjunction with the 2022 audited financial statements and accompanying notes filed with the SEC.

• Emerging Growth Company

We are an “emerging growth company” under the JOBS Act. For as long as we are an “emerging growth company,” we are not required to: (i)comply with any new or revised financial accounting standards that have different effective dates for public and private companies until those standards would otherwise apply to private companies, (ii)provide an auditor’s attestation report on management’s assessment of the effectiveness of internal control over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act, (iii)comply with any new requirements adopted by the Public Company Accounting Oversight Board (“PCAOB”)or a supplement to the auditor’s report in which the auditor would be required to provide additional information about the audit and the financial statements of the issuer or (iv)comply with any new audit rules adopted by the PCAOB after April 5, 2012, unless the SEC determines otherwise. However, we have elected to “opt out” of the extended transition period discussed in (i)and will therefore comply with new or revised accounting standards on the applicable dates on which the adoption of such standards are required for non-emerging growth companies. Section 107 of the JOBS Act provides that our decision to opt out of such extended transition period for compliance with new or revised accounting standards is irrevocable.

• Use of estimates and assumptions

In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet and revenues and expenses during the years reported. Actual results may differ from these estimates. If actual results significantly differ from the Company's estimates, the Company's financial condition and results of operations could be materially impacted. Significant estimates in the period include the allowance for doubtful accounts on accounts receivable, the incremental borrowing rate used to calculate right of use assets and lease liabilities, valuation and useful lives of intangible assets, impairment of long-lived assets, valuation of common stock and stock warrants, stock option valuations, imputed interest on amounts due to related parties, inventory valuation, revenue recognition, the allocation of purchase consideration in business combinations, and deferred tax assets and the related valuation allowance.

• Basis of consolidation

The condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company balances and transactions have been eliminated upon consolidation.

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• Business combination

The Company follows Accounting Standards Codification ("ASC")ASC Topic 805, Business Combinations ("ASC 805")and ASC Topic 810, Consolidation ("ASC 810"). ASC Topic 805 requires most identifiable assets, liabilities, non-controlling interests, and goodwill acquired in a business combination to be recorded at "fair value." The statement applies to all business combinations. Under ASC 805, all business combinations are accounted for by applying the acquisition method. Accounting for the resulting goodwill requires significant management estimates and judgment. Management performs periodic reviews of the carrying value of goodwill to determine whether events and circumstances indicate that an impairment in value may have occurred. A variety of factors could cause the carrying value of goodwill to become impaired. A write-down of the carrying value of goodwill could result in a non-cash charge, which could have an adverse effect on the Company's results of operations.

• Noncontrolling interest

The Company accounts for noncontrolling interests in accordance with ASC Topic 810, which requires the Company to present noncontrolling interests as a separate component of total shareholders' equity on the consolidated balance sheets and the consolidated net loss attributable to its noncontrolling interest be clearly identified and presented on the face of the consolidated statements of operations and comprehensive loss.

• Segment reporting

ASC Topic 280, Segment Reporting ("Topic 280")establishes standards for reporting information about operating segments on a basis consistent with the Company's internal organization structure as well as information about geographical areas, business segments and major customers in unaudited condensed consolidated financial statements. The Company currently operates in four reportable operating segments: (i)Online Grocery and Food and Groceries Deliveries, (ii)Digital marketing, (iii)Online ticketing and reservation, (iv)Telecommunications Reseller, (v)e-Commerce, and (vi)Merchant Point of Sale ("merchant POS").

• Cash and cash equivalents

Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. As of June 30, 2023 and December 31,2022, the cash and cash equivalents excluded restricted cash amounted to $10,839,434 and $18,930,986, respectively.

The Company currently has bank deposits with financial institutions in the U.S. which exceed FDIC insurance limits. FDIC insurance provides protection for bank deposits up to $250,000, so there were uninsured balance of $3,846,897 and $10,431,681 as of June 30, 2023 and December 31, 2022, respectively. In addition, the Company has uninsured bank deposits of $6,273,262 and $$12,032,534 with a financial institution outside the U.S as of June 30, 2023 and December 31, 2022, respectively. All uninsured bank deposits are held at high quality credit institutions.

• Restricted cash

Restricted cash refers to cash that is held by the Company for specific reasons and is, therefore, not available for immediate ordinary business use. The restricted cash represented fixed deposit maintained in bank accounts that are pledged. As of June 30, 2023 and December 31, 2022, the restricted cash amounted to $80,631 and $72,350, respectively.

• Accounts receivable

Accounts receivables are recorded at the amounts that are invoiced to customers, do not bear interest, and are due within contractual payment terms, generally 30 to 90-days from completion of service or the delivery of a product. Credit is extended based on an evaluation of a customer's financial condition, the customer's creditworthiness and their payment history. Accounts receivable outstanding longer than the contractual payment terms are considered past due. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. Quarterly, the Company specifically evaluates individual customer's financial condition, credit history, and the current economic conditions to monitor the progress of the collection of accounts receivables. The Company records bad debt expense and records an allowance for doubtful accounts for any estimated losses resulting from the inability of its customers to make required payments. For receivables that are past due or not being paid according to payment terms, appropriate actions are taken to pursue all means of collection, including seeking legal resolution in a court of law. Account balances are charged off against the allowance for doubtful accounts after all means of collection have been exhausted and the potential for recovery is considered remote. Currently, the Company does not have any off-balance-sheet credit exposure related to its customers, and as of both June 30, 2023 and December 31, 2022, there was no need for allowance for doubtful accounts.

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• Inventories

Inventories are stated at the lower of cost or net realizable value, cost being determined on a first-in-first-out method. Costs include hardware equipment and peripheral costs which are purchased from the Company's suppliers as merchandized goods. The Company provides inventory allowances based on excess and obsolete inventories determined principally by customer demand. During the six months ended June 30, 2023 and 2022, the Company recorded an allowance for obsolete inventories of $0 and $0, respectively. The inventories were amounted to $200,359 and $310,932 at June 30, 2023 and December 31, 2022, respectively.

• Prepaid expenses

Prepaid expenses represent payments made in advance for products or services to be received in the future and are amortized to expense on a ratable basis over the future period to be benefitted by that expense. Since the Company has prepaid expenses categorized as both current and non-current assets, the benefits associated with the products or services are considered current assets if they are expected to be used during the next twelve months and are considered non-current assets if they are expected to be used over a period greater than one year.

• Property, plant and equipment

Plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values:

	Expected<br> useful lives
Computer<br> equipment	3<br> years
Office<br> equipment	5<br> years
Renovation	5<br> years

Expenditures for repairs and maintenance are expensed as incurred. When assets have been retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the results of operations.

• Impairment of long-lived assets

In accordance with the provisions of ASC Topic 360, "Impairment or Disposal of Long-Lived Assets", all long-lived assets such as plant and equipment and intangible assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the carrying amount of an asset to its estimated future undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed the fair value of the assets. There has been no impairment charge for the periods presented.

• Revenue recognition

The Company adopted Accounting Standards Update ("ASU")2014-09, Revenue from Contracts with Customers (Topic 606)("ASU 2014-09"). Under ASU 2014-09, the Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements:

•	Identify<br> the contract with a customer;
•	Identify<br> the performance obligations in the contract;
---	---
•	Determine<br> the transaction price;
---	---
•	Allocate<br> the transaction price to performance obligations in the contract; and
---	---
•	Recognize<br> revenue as the performance obligation is satisfied.
---	---

The Company generates its revenues from a diversified a mix of e-commerce activities that correspond to our four business segments (business to consumer or "B2C"), grocery and food delivery (B2C), telecommunication reseller (B2C)and the services providing to merchants for their business growth (business to business or "B2B").

The Company's performance obligations include providing connectivity between merchants and consumers, generally through an online ordering platform. The platform allows merchants to create an account, display a menu and track their sale reports on the merchant facing application. The platform also allows the consumers to create an account and order from merchants on the consumer facing application. The platform allows a delivery company to accept an online delivery request and deliver or ship an order from a merchant to customer.

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Lifestyle

The Company has developed an online lifestyle platform (the "Lifestyle Platform")under its own brand name of "Leflair" to enable consumers to purchase high-end brands in many categories. Using the Company's smart search engine, consumers search or review their favorite brands among hundreds of choices in various categories, including Apparel, Bags & Shoes, Accessories, Health & Beauty, Home & Lifestyle, International, Women, Men and Kids & Babies categories. The Lifestyle Platform also allows customers to order from hundreds of vendor choices with personalized promotions based on their individual purchase history and location. The platform has also partnered with a Vietnam-based delivery company, Amilo, to offer seamless delivery of product from merchant to consumer's home or office at the touch of a button. Consumers can place orders for delivery or can collect their purchases at the Company's logistics center.

Groceryand Food Delivery

Other online platforms include online platforms in Vietnam, under the brand name of "Handycart", and Philippines, under the brand names of "Pushkart" and "Mangan", to enable the consumers to purchase meals from restaurants and food from local grocery and food merchants and deliver to them in their area.

Telecommunications

The Company operates a Singapore-based online telecommunication reseller platform under brand name of "Gorilla" to enable the consumers to subscribe local mobile data and overseas internet data in different subscription package. Established in Singapore in 2019, Gorilla utilizes blockchain and Web3 technology to operate a MVNO for its users in South East Asia (SEA). With network coverage to over 150 countries, Gorilla offers a full suite of mobile communication services such as local calls, international roaming, data, and SMS texting. More importantly, Gorilla enables its customers to convert unused mobile data into digital assets or Gorilla GO Tokens through its innovative proprietary blockchain-based SwitchBack feature. Gorilla GO Tokens in turn can be redeemed for eVouchers, to offset future bills, or be redeemed for other value-added services. Please visit https://gorilla.global/ for more information.

DigitalMarketing

The acquisition of a digital marketing platform, TMG, amplifies the reach and engagement of the Company's e-commerce ecosystem and retail partners. Originally founded in 2010, TMG today creates and distributes digital advertising campaigns across its multi-channel network in both SEA and the US. With its intimate knowledge of local markets, digital marketing technology tools and social commerce business focus, advertisers leverage TMG's wide influencer network throughout SEA to market and sell advertising inventory exclusively with specific placement and effect.

As a result, Thoughtful Media's content creator partners earn a larger share of advertising revenues from international consumer brands. Thoughtful Media's data-rich multi-channel network has uploaded over 675,000 videos with over 80 billion video views. The current network of 263 YouTube channels has onboarded over 85 million subscribers with an average monthly viewership of over 600 million views.

Travel

The Company purchased the Nusatrip Group, a leading Jakarta-based Online Travel Agency ("OTA")in Indonesia and across SEA. The NusaTrip acquisition extended SoPa's business reach into SEA regional travel industry and marked the Company's first foray into Indonesia. Established in 2013 as the first Indonesian OTA accredited by the International Air Transport Association, NusaTrip pioneered offering a comprehensive range of airlines and hotels to Indonesian corporate and retail customers. With its first mover advantage, NusaTrip has onboarded over 1.2 million registered users, over 500 airlines and over 200,000 hotels around the world as well as connected with over 80 million unique visitors.

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The Company's e-Commerce business is primarily conducted using Leflair's Lifestyle Platform, as follows:

1)

When<br> a customer places an order on either the Leflair website or app, a sales orders report will<br> be generated in the system. The Company will either fulfill this order from its inventory<br> or purchase the item from the manufacturer or distributor. Once the Company has the item<br> in its distribution center, it will contract with a logistics partner delivered to the end<br> customer. The sale is recognized when the delivery is completed by the logistics partner<br> to the end customer. Sale of products are offered with a limited right of return ranging<br> from 3 to 30 days, from the date of purchase and not subject to any product warranty. The<br> Company is considered the principal in this e-commerce transaction and reports revenue on<br> a gross basis as the Company establishes the price of the product, has responsibility for<br> fulfillment of the order and retains the risk of collection.

During the three months ended June 30, 2023 and 2022, the Company generated revenue of $54,707 and $482,410 respectively, in the Lifestyle sector.

During the six months ended June 30, 2023 and 2022, the Company generated revenue of $280,924 and $892,715 respectively, in the Lifestyle sector.

The Company's Merchant POS offers both software and hardware products and services to vendors, as follows:-

Software sales consist of:

1)	Subscription<br> fees consist of the fees that the Company charge merchants to obtain access to the Merchant<br> Marketing Program.
2)	The<br> Company provides optional add-on software services which includes Analytics and Chat box<br> capabilities at a fixed fee per month.
---	---
3)	The<br> Company collects commissions when they sell third party hardware and equipment (cashier stations,<br> waiter tablets and printers)to merchants.
---	---

During the three months ended June 30, 2023 and 2022, the Company generated revenue of $1,692 and $10,941, respectively, from software fees.

During the six months ended June 30, 2023 and 2022, the Company generated revenue of $1,887 and $21,890 respectively, from software fees.

Hardware sales — the Company generally is involved with the sale of on-premise appliances and end-point devices. The single performance obligation is to transfer the hardware product (which is to be installed with its licensed software integral to the functionality of the hardware product). The entire transaction price is allocated to the hardware product and is generally recognized as revenue at the time of delivery because the customer obtains control of the product at that point in time. It is concluded that control generally transfers at that point in time because the customer has title to the hardware, physical possession, and a present obligation to pay for the hardware. Payments for hardware contracts are generally due 30 to 90 days after shipment of the hardware product.

The Company records revenues from the sales of third-party products on a "gross" basis pursuant to ASC Topic 606 when the Company controls the specified good before it is transferred to the end customer and have the risks and rewards as principal in the transaction, such as responsibility for fulfillment, retaining the risk for collection, and establishing the price of the products. If these indicators have not been met, or if indicators of net revenue reporting specified in ASC Topic 606 are present in the arrangement, revenue is recognized net of related direct costs since in these instances we act as an agent.

Software subscription fee — The Company's performance obligation includes providing customer access to our software, generally through a monthly subscription, where the Company typically satisfies its performance obligations prior to the submission of invoices to the customer for such services. The Company's software sale arrangements grant customers the right to access and use the software products which are to be installed with the relevant hardware for connectivity at the outset of an arrangement, and the customer is entitled to both technical support and software upgrades and enhancements during the term of the agreement. The term of the subscription period is generally 12 months, with automatic one-year renewal. The subscription license service is billed monthly, quarterly or annually. Sales are generally recorded in the month the service is provided. For clients who are billed on an annual basis, deferred revenue is recorded and amortized over the life of the contract. Payments are generally due 30 to 90 days after delivery of the software licenses.

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The Company records its revenues, net of value added taxes ("VAT"), which is levied at the rate of 10% on the invoiced value of sales.

Groceryand food delivery consists of online grocery under brand name "Pushkart" and food delivery service under brand name "Handycart" as follows:

Customers place order for groceries and take-out food through our online platforms of "Pushkart" and "Handcart" respectively. When the grocery or food merchant receives and order, our platform will assign a third-party delivery service to pick up and deliver the grocery and/or food order to the customer. Revenue is recognized when the grocery and/or food is delivered, at which time the customer pays for the grocery and /or food order with cash, at Net of merchant cost.

During the three months ended June 30, 2023 and 2022, the Company generated revenue of $54,762 and $8,042, respectively, from this stream.

During the six months ended June 30, 2023 and 2022, the Company generated revenue of $88,847 and $23,836, respectively, from this stream.

As a telecommunication reseller we provide local mobile data and overseas internet data plans under the brand name of "Gorilla," which company we acquired in May 2022. Our telecommunication revenues are recorded for ASC Topic 606 purposes as follows:

Local mobile plan - customers choose and subscribe to a monthly local mobile plan through our "Gorilla" online platform. The Company will proceed to register the sim card (effectively, the mobile telephone number activation card)and arrange delivery of that Sim card to the customer. Following Sim card activation, the system will capture the monthly data usage of each customer, calculated in accordance with the package data capacity and monthly subscription rate, which amounts are aggregated and recorded as revenue. Unused data will be converted to Rewards Points and carried forward to next month for potential subsequent data usage. As a result of the rewards points, the company also recognize revenue from Rewards Point redemption for subscription fees offset, voucher redemption, extra data purchases, that the customer chooses to use via our online platform.

Overseas internet data plan – a customer will place order for their desired overseas internet data plan through either the "Gorilla" online platform or third-party partner platforms. Subscription revenue is recognized when the Sim card is delivered and activated.

During the three months ended June 30, 2023 and 2022, the Company generated revenue of $6,369 and $5,642, respectively, from telecommunications.

During the six months ended June 30, 2023 and 2022, the Company generated revenue of $20,671 and $5,642, respectively, from telecommunications.

Digitalmarketing provides the services that affiliate with multiple YouTube channels to offer services that include audience development, content programming, creator collaborations, digital right managements, monetization, and/or sales as follows:

The Company is required to establish as Multi-Channel Network (MCN)for YouTube Creators and fulfilled the basic MCN guidelines on timely basis. The Company engages the creator in contract as a platform to nurture the creator in brainstorming creative content ideas, coaching on growing their audience size and connection with top brands.

During the three months ended June 30, 2023 and 2022, the Company generated revenue of $1,510,960 and $0, respectively, from this stream.

During the six months ended June 30, 2023 and 2022, the Company generated revenue of $2,794,734 and $0, respectively, from this stream.

Onlineticketing and reservationprovides information, prices, availability, booking services for domestic and international air travel and hotels as follows:

The Company's revenues are substantially reported on a net basis as the travel supplier is primarily responsible for providing the underlying travel services and the Company does not control the service provided by the travel supplier to the traveler. Revenue from air ticketing services, air ticket commission, hotel reservation and refund margin are substantially recognized at a point of time when the performance obligations that are satisfied.

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Onlinehotel booking system provides information, prices, availability, booking services for domestic hotels as follows:

The Company's revenues are substantially reported on a gross basis as the company is primarily responsible for providing the underlying online booking system to hotel owner. Revenue from system subscription fee and commission are substantially recognized at period of time throughout the performance obligations that are satisfied.

During the three months ended June 30, 2023 and 2022, the Company generated revenue of $556,042 and $0, respectively, from this stream.

During the six months ended June 30, 2023 and 2022, the Company generated revenue of $1,042,749 and $0, respectively, from this stream.

Contractassets

In accordance with ASC Topic 606, a contract asset arises when the Company transfers a good or performs a service in advance of receiving consideration from the customer as agreed upon. A contract asset becomes a receivable once the Company's right to receive consideration becomes unconditional.

There were contract assets balance was $303,001 and $20,310 on June 30, 2023 and December 31, 2022, respectively.

Contractliabilities

In accordance with ASC Topic 606, a contract liability represents the Company's obligation to transfer goods or services to a customer when the customer prepays for a good or service or when the customer's consideration is due for goods and services that the Company will yet provide whichever happens earlier.

Contract liabilities represent amounts collected from, or invoiced to, customers in excess of revenues recognized, primarily from the billing of annual subscription agreements. The value of contract liabilities will increase or decrease based on the timing of invoices and recognition of revenue. The Company's contract liability balance was $1,251,633 and $1,405,090 on June 30, 2023 and December 31, 2022, respectively.

• Software development costs

In accordance with the relevant FASB accounting guidance regarding the development of software to be sold, leased, or marketed, the Company expenses such costs as they are incurred until technological feasibility has been established, at and after which time these costs are capitalized until the product is available for general release to customers. Once the technological feasibility is established per ASC Topic 985, Software, the Company capitalizes costs associated with the acquisition or development of major software for internal and external use in the balance sheet. These capitalized software costs are ratably amortized over the period of the software's estimated useful life. Costs incurred to enhance the Company's software products, after general market release of the services using the products, is expensed in the period they are incurred. The Company only capitalizes subsequent additions, modifications or upgrades to internally developed software to the extent that such changes allow the software to perform a task it previously did not perform. The Company also expenses website costs as incurred.

Research and development expenditures arising from the development of the Company's own software are charged to operations as incurred. For the six months ended June 30, 2023, and 2022, software development costs were $29,128 and $36,868, respectively. For the three months ended June 30, 2023 and 2022, the software development costs were $15,209 and $17,320, respectively. Based on the software development process, technological feasibility is established upon completion of a working model, which also requires certification and extensive testing. Costs incurred by the Company between completion of the working model and the point at which the product is ready for general release have, to date, been immaterial and have been expensed as incurred.

• Cost of sales

Cost of sales under online ordering consist of the cost of merchandizes ordered by the consumers and the related shipping and handling costs, which are directly attributable to the sales of online ordering.

Cost of sales related to software sales consist of the cost of software and payroll costs, which are directly attributable to the sales of software. Cost of sales related to hardware sales consist of the cost of hardware and payroll costs, which are directly attributable to the sales of hardware.

Cost of sales related to grocery and food delivery consist of the cost of the outsourced delivery and the outsource payment gateway, which are directly attributable to the sales of grocery and food delivery.

Cost of sales related to our telecommunication data reseller segment consist of the cost of the primary telecommunication service, which are directly attributable to the sales of telecommunication data.

Cost of sales under digital marketing consist of the cost of primary digital marketing service, which are directly attributable to the sales of digital marketing.

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• Shipping and handling costs

No shipping and handling costs are associated with the distribution of the products to the customers since those costs are borne by the Company's suppliers or distributors for our merchant POS business.

The shipping and handling costs for all segments other than our e-commerce segment are recorded net in sales. For shipping costs related to our e-commerce business, those shipping costs are recorded in cost of sales.

• Sales and marketing

Sales and marketing expenses include payroll, employee benefits and other headcount-related expenses associated with sales and marketing personnel, and the costs of advertising, promotions, seminars, and other programs. Advertising costs are expensed as incurred. Advertising expense was $229,378 and $449,392 for the six months ended June 30, 2023 and 2022, respectively. Advertising expense was $98,714 and $253,290 for the three months ended June 30, 2023 and 2022, respectively.

• Product warranties

The Company's provision for estimated future warranty costs is based upon the historical relationship of warranty claims to sales. Based upon historical sales trends and warranties provided by the Company's suppliers, the Company has concluded that no warranty liability is required as of June 30, 2023 and December 31, 2022. To date, product allowance and returns have been minimal and, based on its experience, the Company believes that returns of its products will continue to be minimal, although it looks at this issue every quarter to continue to support its assertion.

• Income tax

The Company adopted the ASC 740 Income Tax provisions of paragraph 740-10-25-13, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the unaudited condensed consolidated financial statements. Under paragraph 740-10-25-13, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the unaudited condensed consolidated financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%)likelihood of being realized upon ultimate settlement. Paragraph 740-10-25-13 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The Company had no material adjustments to its liabilities for unrecognized income tax benefits according to the provisions of paragraph 740-10-25-13.

The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary.

In addition to U.S. income taxes, the Company and its wholly-owned foreign subsidiary, is subject to income taxes in the jurisdictions in which it operates. Significant judgment is required in determining the provision for income tax, there may be transactions and calculations for which the ultimate tax determination is uncertain. The company recognizes liabilities for anticipated tax audit issues based on the Company's current understanding of the tax law. Where the final tax outcome of these matters is different from the carrying amounts, such differences will impact the current and deferred tax provisions in the period in which such determination is made.

• Foreign currencies translation and transactions

The reporting currency of the Company is the United States Dollar ("US$")and the accompanying consolidated unaudited condensed financial statements have been expressed in US$s. In addition, the Company's subsidiary is operating in the Republic of Vietnam, Singapore, India and Philippines and maintains its books and record in its local currency, Vietnam Dong ("VND"), Singapore Dollar ("SGD"), Indian Rupee ("INR"), Philippines Pesos ("PHP"), Malaysian Ringgit ("MYR), Thailand Baht ("THB")and Indonesian Rupiah ("IDR"), respectively, which are the functional currencies in which the subsidiary's operations are conducted. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$s, in accordance with ASC Topic 830, "Translation of Financial Statement" ("ASC 830")using the applicable exchange rates on the balance sheet date. Shareholders' equity is translated using historical rates. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from the translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income (loss)within the unaudited condensed statements of changes in shareholder's equity.

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Schedule of Foreign currencies translation and transactions

Translation of amounts from SGD into US$ has been made at the following exchange rates for the six months ended June 30, 2023 and 2022:

	June<br> 30, <br>2023		June<br> 30, 2022
Period-end<br> SGD$:US$ exchange rate	$	0.73826	$	0.71874
Period<br> average SGD$:US$ exchange rate	$	0.74826	$	0.73258

Translation of amounts from VND into US$ has been made at the following exchange rates for the six months ended June 30, 2023 and 2022:

	June<br> 30, <br>2023		June<br> 30, 2022
Period-end<br> VND$:US$ exchange rate	$	0.000042	$	0.000043
Period<br> average VND$:US$ exchange rate	$	0.000042	$	0.000044

Translation of amounts from INR into US$ has been made at the following exchange rates for the six months ended June 30, 2023 and 2022:

	June<br> 30, <br>2023		June<br> 30, 2022
Period-end<br> INR$:US$ exchange rate	$	0.012185	$	0.012675
Period<br> average INR$:US$ exchange rate	$	0.012674	$	0.013126

Translation of amounts from PHP into US$ has been made at the following exchange rates for the six months ended June 30, 2023 and 2022:

	June<br> 30, <br>2023		June<br> 30, 2022
Period-end<br> PHP:US$ exchange rate	$	0.018077	$	0.018176
Period<br> average PHP:US$ exchange rate	$	0.018099	$	0.019173

Translation of amounts from THB into US$ has been made at the following exchange rates for the six months ended June 30, 2023 and 2022:

	June<br> 30, <br>2023		June<br> 30, 2022
Period-end<br> THB:US$ exchange rate	$	0.028206	$	N/A
Period<br> average THB:US$ exchange rate	$	0.029216	$	N/A

Translation of amounts from MYR into US$ has been made at the following exchange rates for the six months ended June 30, 2023 and 2022:

	June<br> 30, <br>2023		June<br> 30, 2022
Period-end<br> MYR:US$ exchange rate	$	0.213973	$	N/A
Period<br> average MYR:US$ exchange rate	$	0.224385	$	N/A

Translation of amounts from IDR into US$ has been made at the following exchange rates for the six months ended June 30, 2023 and 2022:

	June<br> 30, <br>2023		June<br> 30, 2022
Period-end<br> IDR:US$ exchange rate	$	0.000066	$	N/A
Period<br> average IDR:US$ exchange rate	$	0.000066	$	N/A

Translation gains and losses that arise from exchange rate fluctuations from transactions denominated in a currency other than the functional currency are translated, as the case may be, at the rate on the date of the transaction and included in the results of operations as incurred.

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• Comprehensive income

ASC Topic 220, “Comprehensive Income”, establishes standards for reporting and display of comprehensive income, its components and accumulated balances. Comprehensive income as defined includes all changes in equity during a period from non-owner sources. Accumulated other comprehensive income, as presented in the accompanying consolidated statements of changes in shareholders’ equity, consists of changes in unrealized gains and losses on foreign currency translation. This comprehensive income is not included in the computation of income tax expense or benefit.

• Earning per share

Basic per share amounts are calculated using the weighted average shares outstanding during the year, excluding unvested restricted stock units. The Company uses the treasury stock method to determine the dilutive effect of stock options and other dilutive instruments. Under the treasury stock method, only "in the money" dilutive instruments impact the diluted calculations in computing diluted earnings per share. Diluted calculations reflect the weighted average incremental common shares that would be issued upon exercise of dilutive options assuming the proceeds would be used to repurchase shares at average market prices for the years.

For the three and six months ended June 30, 2023 and 2022, diluted weighted-average common shares outstanding is equal to basic weighted-average common shares, due to the Company's net loss position. Hence, no common stock equivalents were included in the computation of diluted net loss per share since such inclusion would have been antidilutive.

Schedule of computation of diluted net loss per share:

	Three<br> months ended June 30,
	2023			2022
Net<br> loss attributable to Society Pass Incorporated	$	(3,315,258	)	$	(7,504,324	)
Weighted<br> average common shares outstanding – Basic and diluted		28,171,523			24,347,607
Net<br> loss per share – Basic and diluted	$	(0.12	)	$	(0.31	)
	Six<br> months ended June 30,
---	---	---	---	---	---	---
	2023			2022
Net<br> loss attributable to Society Pass Incorporated	$	(8,610,185	)	$	(14,052,702	)
Weighted<br> average common shares outstanding – Basic and diluted		27,630,193			23,126,632
Net<br> loss per share – Basic and diluted	$	(0.30	)	$	(0.61	)

The following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted-average shares outstanding, because such securities had an antidilutive impact:

Schedule of Common stock issued:

	Six<br> months ended June 30,
	2023		2022
Options<br> to purchase common stock (a)		1,945,270		1,945,270
Warrants<br> granted to underwriter		3,803,229		3,793,929
Warrants<br> granted with Series C-1 Convertible Preferred Stock (b)		1,068,000		—
Total<br> of common stock equivalents		6,186,499		5,739,199
(a)	The<br> Board of Directors have approved a 10-year stock option at an exercise price of $6.49 per<br> share that will be exercisable at any time.
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(b)	The<br> expiry date of warrants granted with Series C-1 was extended to June 30, 2022.
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• Leases

The Company adopted Topic 842, Leases (“ASC 842”)to determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”)assets and operating lease liabilities in the consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in the consolidated balance sheets.

ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company generally use the incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

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In accordance with the guidance in ASC 842, components of a lease should be split into three categories: lease components (e.g. land, building, etc.), non-lease components (e.g. common area maintenance, consumables, etc.), and non-components (e.g. property taxes, insurance, etc.). Subsequently, the fixed and in-substance fixed contract consideration (including any related to non-components)must be allocated based on the respective relative fair values to the lease components and non-lease components.

When a lease is terminated before the expiration of the lease term, irrespective of whether the lease is classified as a finance lease or an operating lease, the lessee would derecognize the ROU asset and corresponding lease liability. Any difference would be recognized as a gain or loss related to the termination of the lease. Similarly, if a lessee is required to make any payments or receives any consideration when terminating the lease, it would include such amounts in the determination of the gain or loss upon termination.

As of June 30, 2023 and December 31, 2022, the Company recorded the right of use asset of $1,609,461 and $1,537,670 respectively.

• Retirement plan costs

Contributions to retirement plans (which are defined contribution plans)are charged to general and administrative expenses in the accompanying consolidated statements of operation as the related employee service is provided.

• Share-based compensation

The Company follows ASC Topic 718, Compensation—Stock Compensation ("ASC 718"), which requires the measurement and recognition of compensation expense for all share-based payment awards (employee and non-employee), at grant-date fair value of the equity instruments that an entity is obligated to issue. Restricted stock units are valued using the market price of the Company's common shares on the date of grant. The Company uses a Black-Scholes option pricing model to estimate the fair value of employee stock options at the date of grant. As of June 30, 2023, those shares issued and stock options granted for service compensation, vest 180 days after the grant date, and therefore these amounts are thus recognized as expense during the six months ended June 30, 2023 and 2022. Stock-based compensation is recorded in general and administrative expenses within the Consolidated Statements of Operations and Other Comprehensive Loss, with corresponding credits to common stock and accumulated paid-in capital.

• Warrants

In connection with certain financing, consulting and collaboration arrangements, the Company has issued warrants to purchase shares of its preferred and common stock. The outstanding warrants are standalone instruments that are not puttable or mandatorily redeemable by the holder and are classified as equity awards. The Company measures the fair value of the awards using a Black-Scholes Option Pricing Model as of the measurement date. The Company uses a Black-Scholes option pricing model to estimate the grant date fair value of the warrants. Warrants issued in conjunction with the issuance of common stock are initially recorded at fair value as a reduction in additional paid-in capital (the accounting treatment for common stock issuance costs). All other warrants are recorded at the grant date fair value as an expense over the requisite service period, or at the date of issuance if the warrants vest immediately.

• Related parties

The Company follows ASC 850-10, Related Party Disclosures ("ASC 850")for the identification of related parties and the disclosure of related party transactions.

Pursuant to ASC 850, the related parties include a)affiliates of the Company; b)entities for which investments in their equity securities would be required, absent the election of the fair value option under ASC 825, Financial Instruments, to be accounted for by the equity method by the investing entity; c)trusts for the benefit of employees, such as pension and income-sharing trusts that are managed by or under the trusteeship of management; d)principal owners of the Company; e)management of the Company; f)other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g)other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

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The unaudited condensed consolidated financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required by ASC 850. The disclosures shall include: a)the nature of the relationship(s)involved; b)a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c)the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used 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 otherwise apparent, the terms and manner of settlement.

• Commitments and contingencies

The Company follows the ASC 450, Commitments, to account for contingencies. Certain conditions may exist as of the date the unaudited condensed financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, which assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company's unaudited condensed consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available, that these matters will have a material adverse effect on the Company's financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company's business, financial position, and results of operations or cash flows if the current level of facts and circumstances changes in the future.

• Fair value of financial instruments

The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and has adopted paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”)to measure the fair value of its financial instruments. Paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3)broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted)in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3)levels of fair value hierarchy defined by paragraph 820-10-35-37 of the FASB Accounting Standards Codification are described below:

Level<br> 1	Quoted<br> market prices available in active markets for identical assets or liabilities as of the reporting date.
Level<br> 2	Pricing<br> inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the<br> reporting date.
Level<br> 3	Pricing<br> inputs that are generally observable inputs and not corroborated by market data.

Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable.

The fair value hierarchy gives the highest priority to quoted prices (unadjusted)in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.

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The carrying amounts of the Company’s financial assets and liabilities, such as cash and cash equivalents, accounts receivable, deposits, prepayments and other receivables, contract liabilities, accrued liabilities and other payables, amounts due to related parties and operating lease liabilities, approximate their fair values because of the short maturity of these instruments.

• Recent Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the Financial Accounting Standard Board ("FASB")or other standard setting bodies and adopted by the Company as of the specified effective date.

In June 2022, the FASB issued Accounting Standards Update No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurementof Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03). This ASU was issued to resolve differences in practice regarding how to record the issuance of common stock with sale restrictions that pertain to the receiving party. The FASB concluded in ASU 2022-03 that these types of restrictions were not attributes of the stock issued but related to the parties to whom the stock was issued. As a result, the ASU 2022-03 requires companies to record the issuance of this type of restricted stock at its face value (i.e., not discount the stock because the receiving party can't immediately sell the stock). From time-to-time, the Company may acquire another company in a transaction in which Company restricted stock is issued. The Company has reviewed ASU 2022-03 and does not expect that it will affect the Company.

All other recently issued, but not yet effective, 2023 Accounting Standards Updates are not expected to have an effect on the Company.

Item3. Quantitative and Qualitative Disclosures about Market Risk

Not required under Regulation S-K for "smaller reporting companies."

Item4. Controls and Procedures

Evaluationof Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to provide reasonable assurance that the information required to be disclosed by us in reports that we file or submit under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is recorded, processed, summarized and reported within the time periods specified in the rules and forms promulgated by the Securities and Exchange Commission, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Because of the inherent limitations to the effectiveness of any system of disclosure controls and procedures, no evaluation of disclosure controls and procedures can provide absolute assurance that all control issues and instances of fraud, if any, with a company have been prevented or detected on a timely basis. Even disclosure controls and procedures determined to be effective can only provide reasonable assurance that their objectives are achieved.

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e)) pursuant to Rule 13a-15 of the Exchange Act. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are not effective at the reasonable assurance level.

Changesin Internal Control over Financial Reporting

There were no changes in the Company's internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f)) during the period ended June 30, 2023 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

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PART

II - OTHER INFORMATION

Item1. Legal Proceedings

In the ordinary course of business, from time to time, we have been and may be named as a defendant in various legal proceedings arising in connection with our business activities. We may also be involved, from time to time, in reviews, investigations and proceedings (both formal and informal) by governmental agencies regarding our business (collectively, "regulatory matters"). We contest liability and/or the amount of damages as appropriate in each such pending matter. We do not anticipate that the ultimate liability, if any, arising out of any such pending matter will have a material effect on our financial condition, results of operations or cash flows.

Our material legal proceedings are described in Part I, Item 1 of this Form 10-Q in the Notes to Condensed Consolidated Financial Statements in Note 22, "Commitments and Contingencies".

Item1A. Risk Factors.

Factors that could cause our actual results to differ materially from those in this Quarterly Report are any of the risks described in "Part I, Item 1A. Risk Factors" in the Company's Form 10-K filed with the Securities and Exchange Commission on March 23, 2023. Any of these factors could result in a significant or material adverse effect on our results of operations or financial condition. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results of operations. As of the date of this Quarterly Report, there have been no material changes to the risk factors disclosed in the Form 10-K. We may disclose changes to such factors or disclose additional factors from time to time in our future filings with the SEC."

Item2. Unregistered Sales of Equity Securities and Use of Proceeds

None

Item3. Defaults Upon Senior Securities

Not applicable.

Item4. Mine Safety Disclosures

Not applicable.

Item5. Other Information

Not applicable.

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Item6. Exhibits.

EXHIBIT

INDEX

Exhibit No.	Description
31.1**	Certification of the Principal Executive Officer pursuant to Rule 13a-14(a)
31.2**	Certification of Principal Financial Officer pursuant to Rule 13a-14(a)
32.1++	Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (furnished herewith)
101.INS	Inline<br> XBRL Instance Document
101.SCH	Inline<br> XBRL Taxonomy Extension Schema Document
101.CAL	Inline<br> XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline<br> XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline<br> XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline<br> XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover<br> Page Interactive Data File (embedded within the Inline XBRL document)

** Filed herewith

^++^Furnished herewith

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SOCIETY PASS INCORPORATED
Date:<br> August 10, 2023	/s/ Dennis Nguyen
	Dennis<br> Nguyen
	Chief<br> Executive Officer
	(Principal<br> Executive Officer)
Date:<br> August 10, 2023	/s/ Raynauld Liang
	Raynauld<br> Liang
	Chief<br> Financial Officer
	(Principal<br> Financial Officer)

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Exhibit 31.1

CERTIFICATIONOF THE CHIEF EXECUTIVE OFFICER

PURSUANTTO SECTION 302 OF THE SARBANES OXLEY ACT OF 2002

ANDRULE 13A-14 OF THE EXCHANGE ACT OF 1934

I, Dennis Nguyen certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the period ended June 30, 2023 of Society Pass Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) [Intentionally omitted];

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:<br> August 10, 2023	By:	/s/ Dennis Nguyen
		Dennis<br> Nguyen
		Chief<br> Executive Officer

Exhibit 31.2

CERTIFICATIONOF THE CHIEF FINANCIAL OFFICER

PURSUANTTO SECTION 302 OF THE SARBANES OXLEY ACT OF 2002

ANDRULE 13A-14 OF THE EXCHANGE ACT OF 1934

I, Raynauld Liang, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the period ended June 30, 2023 of Society Pass Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) [Intentionally omitted];

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:<br> August 10, 2023	By:	/s/ Raynauld Liang
		Raynauld Liang
		Chief<br> Financial Officer

Exhibit32.1

CERTIFICATIONPURSUANT TO

18U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Society Pass Incorporated (the “Company”) for the period ended June 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:

(1)	The<br> Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The<br> information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of<br> the Company.
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Date:<br>August 10, 2023	By:	/s/ Dennis Nguyen
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		Dennis Nguyen
		Chief Executive Officer
	By:	/s/ Raynauld Liang
		Chief Financial Officer