| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended | 12 Months Ended |
| Jun. 30, 2024 | Dec. 31, 2023 |
| Basis of presentation and principles of consolidation | Basis
of presentation The
accompanying financial statements are presented in U.S. Dollars and conformity with accounting principles generally accepted in the United
States of America (“GAAP”) and pursuant to the rules and regulations of the SEC. | Basis
of presentation The
accompanying financial statements are presented in U.S. Dollars and conformity with accounting principles generally accepted in the United
States of America (“GAAP”) and pursuant to the rules and regulations of the SEC. |
| Emerging growth company | Emerging
growth company The
Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our
Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements
that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required
to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding
executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory
vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. Further,
Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting
standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do
not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting
standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements
that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of
such extended transition period which means that when a standard is issued or revised and it has different application dates for public
or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies
adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which
is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult
or impossible because of the potential differences in accounting standards used. INFINT
ACQUISITION CORPORATION NOTES
TO CONDENSED FINANCIAL STATEMENTS (Unaudited) | Emerging
growth company The
Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our
Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements
that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required
to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding
executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory
vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. Further,
Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting
standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do
not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting
standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements
that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of
such extended transition period which means that when a standard is issued or revised and it has different application dates for public
or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies
adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which
is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult
or impossible because of the potential differences in accounting standards used. INFINT
ACQUISITION CORPORATION NOTES
TO FINANCIAL STATEMENTS |
| Use of estimates | Use
of estimates The
preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. Making
estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of
a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating
its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ
significantly from those estimates. | Use
of estimates The
preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. Making
estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of
a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating
its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ
significantly from those estimates. |
| Cash and cash equivalents | Cash
and Cash Equivalents The
Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents.
The Company had no | Cash
and Cash Equivalents The
Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents.
The Company had no |
| Cash and Marketable Securities Held in Trust Account | Cash
and Marketable Securities Held in Trust Account As
of June 30, 2024 and December 31, 2023, the Company had $ 55,457,522 83,523,112 | Cash
and Marketable Securities Held in Trust Account As
of December 31, 2023 and 2022, the Company had $ 83,523,112 208,932,880 |
| Offering Costs associated with the Initial Public Offering | Offering
Costs associated with the Initial Public Offering The
Company complies with the requirements of the Financial Accounting Standards Board (“FASB”) ASC 340-10-S99-1 and SEC Staff
Accounting Bulletin (“SAB”) Topic 5A, “Expenses of Offering.” Offering costs of $ 582,540 268,617 8,499,949 | Offering
Costs associated with the Initial Public Offering The
Company complies with the requirements of the Financial Accounting Standards Board ASC 340-10-S99-1 and SEC Staff Accounting Bulletin
Topic 5A, “ Expenses of Offering 582,540 268,617 8,499,949 |
| Class A ordinary shares subject to possible redemption | Class
A ordinary shares subject to possible redemption The
Company accounts for its ordinary shares subject to possible redemption in accordance with the guidance enumerated in ASC 480, “Distinguishing
Liabilities from Equity” (“ASC 480”). Ordinary shares subject to mandatory redemption are classified as a liability
instrument and are measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that feature redemption
rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within
the Company’s control) are classified as temporary equity. At all other times, ordinary shares are classified as shareholders’
equity. The Company’s Class A ordinary shares feature certain redemption rights that are considered by the Company to be outside
of the Company’s control and subject to the occurrence of uncertain future events. Accordingly, at June 30, 2024, the Class A ordinary
shares subject to possible redemption in the amount of $ 55,457,522 The
Company’s redeemable ordinary shares is subject to SEC and its staff’s guidance on redeemable equity instruments, which has
been codified in ASC 480-10-S99. If it is probable that the equity instrument will become redeemable, the Company has the option to either
accrete changes in the redemption value over the period from the date of issuance (or from the date that it becomes probable that the
instrument will become redeemable, if later) to the earliest redemption date of the instrument or to recognize changes in the redemption
value immediately as they occur and adjust the carrying amount of the instrument to equal the redemption value at the end of each reporting
period. The Company has elected to value immediately as they occur. The accretion or remeasurement is treated as a deemed dividend (i.e.,
a reduction to retained earnings, or in absence of retained earnings, additional paid-in capital). INFINT
ACQUISITION CORPORATION NOTES
TO CONDENSED FINANCIAL STATEMENTS (Unaudited) The
amounts of Class A ordinary shares reflected on the balance sheets are reconciled in the following table: SCHEDULE OF RECONCILIATION OF ORDINARY SHARE SUBJECT TO POSSIBLE REDEMPTION
Class A ordinary shares subject to possible redemption at January 1, 2023 $ 208,932,880
Accretion of carrying value to initial redemption value 7,715,207
Redemption of Class A ordinary shares $ (133,124,975 )
Class A ordinary shares subject to possible redemption at December 31, 2023 $ 83,523,112
Accretion of carrying value to initial redemption value 2,220,225
Redemption of Class A ordinary shares $ (30,285,815 )
Class A ordinary shares subject to possible redemption at June 30, 2024 $ 55,457,522 | Class
A ordinary shares subject to possible redemption The
Company accounts for its ordinary shares subject to possible redemption in accordance with the guidance enumerated in ASC 480
“ Distinguishing Liabilities from Equity 83,523,112 208,932,880 The
Company’s redeemable ordinary shares is subject to SEC and its staff’s guidance on redeemable equity instruments, which has
been codified in ASC 480-10-S99. If it is probable that the equity instrument will become redeemable, the Company has the option to either
accrete changes in the redemption value over the period from the date of issuance (or from the date that it becomes probable that the
instrument will become redeemable, if later) to the earliest redemption date of the instrument or to recognize changes in the redemption
value immediately as they occur and adjust the carrying amount of the instrument to equal the redemption value at the end of each reporting
period. The Company has elected to value immediately as they occur. The accretion or remeasurement is treated as a deemed dividend (i.e.,
a reduction to retained earnings, or in absence of retained earnings, additional paid-in capital). The
amount of Class A ordinary shares reflected on the balance sheet are reconciled in the following table: SCHEDULE OF RECONCILIATION OF ORDINARY SHARE SUBJECT TO POSSIBLE REDEMPTION
Class A ordinary shares subject to possible redemption at January 1, 2022 $ 202,998,782
Accretion of carrying value to initial redemption value 5,934,098
Class A ordinary shares subject to possible redemption at December 31, 2022 $ 208,932,880
Accretion of carrying value to initial redemption value 7,715,207
Redemption of Class A Ordinary Shares (133,124,975 )
Class A ordinary shares subject to possible redemption at December 31, 2023 $ 83,523,112 |
| Warrants | Warrants The
Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s
specific terms and applicable authoritative guidance in ASC 480 and ASC 815, “Derivatives and Hedging” (“ASC 815”).
The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability
pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether
the warrants are indexed to the Company’s own Common Stock, among other conditions for equity classification. This assessment,
which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent reporting period
end date while the warrants are outstanding. All of the Company’s warrants have met the criteria for equity treatment. | Warrants The
Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s
specific terms and applicable authoritative guidance in ASC 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC
815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants are freestanding financial instruments
pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for
equity classification under ASC 815, including whether the warrants are indexed to the Company’s own common stock, among other
conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant
issuance and as of each subsequent reporting period end date while the warrants are outstanding. All of the Company’s warrants
have met the criteria for equity treatment. |
| Income tax | Income
taxes The
Company complies with the accounting and reporting requirements of ASC 740, “Income Taxes” (“ASC 740”), which
requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities
are computed for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable
or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect
taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. ASC
740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions
taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be
sustained upon examination by taxing authorities. The Company’s management determined that the Cayman Islands is the Company’s
only major tax jurisdiction. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax
expense. There were no no There
is currently no taxation imposed on income by the Government of the Cayman Islands. In accordance with Cayman income tax regulations,
income taxes are not levied on the Company. Consequently, income taxes are not reflected in the Company’s financial statements.
The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next
twelve months. INFINT
ACQUISITION CORPORATION NOTES
TO CONDENSED FINANCIAL STATEMENTS (Unaudited) | Income
taxes The
Company complies with the accounting and reporting requirements of ASC Topic 740, “Income Taxes,” which requires an asset
and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed
for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible
amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.
Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. ASC
Topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax
positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not
to be sustained upon examination by taxing authorities. The Company’s management determined that the Cayman Islands is the Company’s
only major tax jurisdiction. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax
expense. There were no no INFINT
ACQUISITION CORPORATION NOTES
TO FINANCIAL STATEMENTS There
is currently no taxation imposed on income by the Government of the Cayman Islands. In accordance with Cayman income tax regulations,
income taxes are not levied on the Company. Consequently, income taxes are not reflected in the Company’s financial statements.
The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next
twelve months. |
| Earnings per share | Net
income per ordinary share The
Company complies with accounting and disclosure requirements of ASC 260, “Earnings Per Share.” The Company applies the two-class
method in calculating earnings per share. Earnings and losses are shared pro rata between the two classes of shares. Net income per share
is computed by dividing net income by the weighted average number of ordinary share outstanding during the period, excluding ordinary
share subject to forfeiture. At June 30, 2024, the Company did not have any dilutive securities and other contracts that could, potentially,
be exercised or converted into ordinary share and then share in the earnings of the Company. As a result, diluted income per share is
the same as basic income per share for the periods presented. The
following table reflects the calculation of basic and diluted net income per ordinary share (in dollars, except per share amounts): SCHEDULE OF BASIS AND DILUTED NET LOSS PER ORDINARY SHARES
For the three months ended
2024 2023
Class A Class B Class A Class B
Basic and diluted net income per ordinary share
Numerator:
Allocation of net income $ 78,092 $ 95,958 $ 448,793 $ 273,136
Denominator:
Basic and diluted weighted average common shares 4,747,021 5,833,083 9,584,428 5,833,083
Basic and diluted net income per ordinary share $ 0.02 $ 0.02 $ 0.05 $ 0.05
For the six months ended
2024 2023
Class A Class B Class A Class B
Basic and diluted net income per ordinary share
Numerator:
Allocation of net income $ 368,040 $ 396,113 $ 1,159,361 $ 560,806
Denominator:
Basic and diluted weighted average common shares 5,419,684 5,833,083 12,058,817 5,833,083
Basic and diluted net income per ordinary share $ 0.07 $ 0.07 $ 0.10 $ 0.10 | Net
loss per ordinary share The
Company complies with accounting and disclosure requirements of ASC Topic 260, “Earnings Per Share.” The Company applies
the two-class method in calculating earnings per share. Earnings and losses are shared pro rata between the two classes of shares.
Net loss per share is computed by dividing net loss by the weighted average number of ordinary share outstanding during the period,
excluding ordinary share subject to forfeiture. At December 31, 2023 and 2022, the Company did not have any dilutive securities and
other contracts that could, potentially, be exercised or converted into ordinary share and then share in the earnings of the
Company. As a result, diluted loss per share is the same as basic loss per share for the periods presented. The
following table reflects the calculation of basic and diluted net loss per ordinary share (in dollars, except per share amounts): SCHEDULE OF BASIS AND DILUTED NET LOSS PER ORDINARY SHARES
Class A Class B Class A Class B
For the year ended December 31, 2023 For the year ended December 31, 2022
Class A Class B Class A Class B
Basic and diluted net income (loss) per ordinary share
Numerator:
Allocation of net income (loss) $ 2,003,234 $ 1,165,646 $ (860,883 ) $ (251,081 )
Denominator:
Basic and diluted weighted average common shares 10,024,516 5,833,083 19,999,880 5,833,083
Basic and diluted net income (loss) per ordinary share $ 0.20 $ 0.20 $ (0.04 ) $ (0.04 ) |
| Concentrations of credit risk | Concentration
of credit risk Financial
instruments that potentially subject the Company to concentration of credit risk consist of a cash account in a financial institution
which, at times may exceed the Federal depository insurance coverage of $ 250,000 | Concentration
of credit risk Financial
instruments that potentially subject the Company to concentration of credit risk consist of a cash account in a financial institution
which, at times may exceed the Federal depository insurance coverage of $ 250,000 |
| Fair value of financial instruments | Fair
value of financial instruments The
fair value of the Company’s assets and liabilities, which qualify as financial instruments under FASB ASC 820, “Fair Value
Measurements and Disclosures,” approximates the carrying amounts represented in the accompanying balance sheet, primarily due to
their short-term nature. | Fair
value of financial instruments The
fair value of the Company’s assets and liabilities, which qualify as financial instruments under FASB (as defined below) ASC 820,
“Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the accompanying balance sheet,
primarily due to their short-term nature. |
| Other income and expenses | | (ee) Other income and expenses |
| Business combination | | (ff) Business combination |
| Prefunding to remittances partner | | (gg) Prefunding to remittances partner |
| Recent accounting pronouncements | Recently
issued accounting pronouncements Management
does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material
effect on the Company’s financial statements. | Recently
issued accounting pronouncements Management
does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material
effect on the Company’s financial statements. |
| Seamless Group Inc [Member] | | |
| Basis of presentation and principles of consolidation | (a) Basis of presentation and principles of consolidation The
unaudited condensed consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management,
necessary to present a fair statement of the Company’s financial position as of June 30, 2024 and the results of operations for
the Six months ended June 30, 2024 and 2023. In the opinion of management, all adjustments (consisting of normal recurring accruals)
considered necessary in order to make the consolidated financial statements not misleading have been included. The unaudited condensed
consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission
(the “SEC”) and accordingly do not include all of the disclosures normally made in the Company’s annual financial statements.
Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial
statements and notes thereto for the fiscal year ended December 31, 2023. | (a) Basis of presentation and principles of consolidation The
accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United
States of America (“GAAP”) and include the accounts of Seamless Group Inc. and its majority-owned subsidiaries. Non-controlling
interest is recorded in the consolidated financial statements to recognize the minority ownership interest in the consolidated subsidiaries.
Non-controlling interest in the profits and losses represent the share of net income or loss allocated to the minority interest holders
of the consolidated subsidiaries. All intercompany transactions and balances have been eliminated in these consolidated financial statements. |
| Use of estimates | (c) Use of estimates The
preparation of the accompanying unaudited consolidated financial statements in conformity with GAAP requires management to make estimates,
assumptions and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities
at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Certain
accounting estimates of the Company require a higher degree of judgment than others in their application. These include valuation of
goodwill, provision for credit losses, impairment of long-lived assets, impairment of equity investee, valuation of convertible bonds
and the valuation allowance for deferred tax assets. Management bases its estimates on historical experience and on various other assumptions
that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying
values of assets and liabilities. Actual results may differ from these estimates, and such differences may be material. | (c) Use of estimates The
preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates, assumptions
and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the
date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Certain
accounting estimates of the Company require a higher degree of judgment than others in their application. These include valuation of
goodwill, provision for credit losses, impairment of long-lived assets, impairment of investments in subsidiaries and equity investee,
valuation of convertible bonds and income tax. Management bases its estimates on historical experience and on various other assumptions
that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying
values of assets and liabilities. Actual results may differ from these estimates, and such differences may be material. SEAMLESS
GROUP INC. AND SUBSIDIARIES NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS
2 Summary
of significant accounting policies (Continued) |
| Cash and cash equivalents | | (e) Cash and cash equivalents Cash
and cash equivalents consist of cash on hand and highly liquid investments which are unrestricted as to withdrawal or use and with original
maturities of three months or less when purchased. |
| Income tax | | (x) Income tax Income
taxes are recorded in accordance with ASC 740, Income Taxes, which provides for deferred taxes using an asset and liability approach.
The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included
in the consolidated financial statements or its tax returns. Deferred tax assets and liabilities are determined based on the difference
between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences
are expected to reverse. Valuation allowances are provided, if based upon the weight of available evidence, it is more likely than not
that some or all of the deferred tax assets will not be realized in the foreseeable future. When
uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit would more likely
than not be realized assuming examination by the taxing authority. The determination as to whether the tax benefit will more likely than
not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances.
The accounting guidance on accounting for uncertainty in income taxes also addresses derecognition, classification, interest and penalties
on income taxes, and accounting in interim periods. Interest and penalties from tax assessments, if any, are included in income taxes
in the statements of operations and comprehensive loss. The Company believes it does not have any uncertain tax positions through the
years ended December 31, 2023 and 2022, respectively, which would have a material impact on the Company’s consolidated financial
statements. |
| Earnings per share | (h) Earnings per share Basic
earnings per share is calculated by dividing the net income or loss by the weighted average number of common shares outstanding for the
period, without consideration of potentially dilutive securities. Diluted
net earnings per share is calculated by dividing the net income or loss by the weighted average number of common shares and potentially
dilutive securities outstanding for the period. If there is a loss, potentially dilutive securities are not considered, as they would
be anti-dilutive. | (y) Earnings per share Basic
earnings per share is calculated by dividing the net income or loss by the weighted average number of common shares outstanding for the
period, without consideration of potentially dilutive securities. Diluted
net earnings per share is calculated by dividing the net income or loss by the weighted average number of common shares and potentially
dilutive securities outstanding for the period. If there is a loss, potentially dilutive securities are not considered, as they would
be anti-dilutive.. As of December 31, 2023 and 2022, the outstanding balances of US$ 10,000,000 10,000,000 1,532,798 1,532,798 SEAMLESS
GROUP INC. AND SUBSIDIARIES NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS
2 Summary
of Significant Accounting Policies (Continued) |
| Concentrations of credit risk | | (cc) Concentrations of credit risk The
Company is potentially subject to significant concentration of credit risk arising primarily from cash and cash equivalents, short-term
investments, restricted cash, escrow money receivable, deposits, other receivables and amounts due from related parties. As
of December 31, 2023, a majority of the Company’s cash and cash equivalents and short-term investments were held at reputable financial
institutions with high-credit ratings. In the event of bankruptcy of one of these financial institutions, the Company may not be able
to claim its cash and demand deposits back in full, as these deposits are not insured. The Company continues to monitor the financial
strength of the financial institutions. The
Company’s major concentration of credit risk relates to the amounts owing by four customers (2022: four customers) which constituted
approximately 53 %
(2022: 71 %)
of its accounts receivable as of December 31, 2023. The
Company has not experienced any losses on its cash and cash equivalents, short-term investments, deposits, other receivables and amounts
due from related parties during the year ended December 31, 2023 and 2022 and believes its credit risk to be minimal. The
Company does not require collateral or other security to support instruments subject to credit risk. SEAMLESS
GROUP INC. AND SUBSIDIARIES NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS |
| Fair value of financial instruments | | (r) Fair value of financial instruments ASC
820, Fair Value Measurements, provides guidance on the development and disclosure of fair value measurements. Under this accounting guidance,
fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that
should be determined based on assumptions that market participants would use in pricing an asset or a liability. The
accounting guidance classifies fair value measurements in one of the following three categories for disclosure purposes:
Level
1 — Observable
inputs such as quoted prices in active markets.
Level
2 — Inputs
other than the quoted prices in active markets that are observable either directly or indirectly. These include quoted prices for
similar assets and liabilities in active markets and quoted prices for identical or similar assets and liabilities in markets that
are not active.
Level
3 — Unobservable
inputs of which there is little or no market data, which require the Company to develop its own assumptions. As
of December 31, 2023 and 2022, the Company did not have any financial instruments that are measured at fair value. The carrying amounts
of cash and cash equivalents, short-term investments, restricted cash, accounts receivable, escrow money receivable, deposit and other
receivables, amounts due from/to related parties, and accruals, bank overdraft, escrow money payable, accounts payable, accruals and
other payables approximate their fair values due to the short-term nature of these instruments. SEAMLESS
GROUP INC. AND SUBSIDIARIES NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS
2 Summary
of significant accounting policies (Continued) |
| Other income and expenses | | (ee) Other income and expenses The
Company accounts for gain or loss from exchange differences in other income and expenses. |
| Business combination | | (ff) Business combination The
Company accounts for business combinations using the acquisition method of accounting in accordance with FASB ASC Topic 805, “Business
Combinations”. Acquisition method accounting requires that the consideration transferred be allocated to the assets, including
separately identifiable assets, and liabilities the Company acquired, based on their estimated fair values. The consideration transferred
in an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred,
and equity instruments issued as well as the contingent considerations and all contractual contingencies as of the acquisition date.
The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities
acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any noncontrolling
interests. The excess of (i) the total cost of acquisition, fair value of the noncontrolling interests and acquisition date fair value
of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree, is recorded
as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized
directly in the Statement of Operations and Comprehensive Loss. SEAMLESS
GROUP INC. AND SUBSIDIARIES NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS
2 Summary
of Significant Accounting Policies (Continued) |
| Prefunding to remittances partner | (g) Prefunding to remittances partner Prefunding
to remittance partner represents deposits made with such a partner for remittance services to be rendered by the partner in the future.
The prepayments are utilized when a remittance order is executed by the partner and the resulting amount of the order is deducted from
the balance with the partner. We
allow our remittance partners to prefund their balance through cryptocurrencies. These cryptocurrencies are mainly XRP. Ripple provides
the XRP upon request to the Company and our remittance partners. Under applicable accounting standards, we are an agent when facilitating
cryptocurrency transactions on behalf of our customers. These cryptocurrencies are held under a bailment arrangement in an account in
the Company’s name on behalf of our business partner but they are not Seamless’ assets and therefore, are not reflected
as cryptocurrency assets on our consolidated balance sheets . Although the Company does not control the XRP in the bailment account,
we are responsible for safeguarding the XRP in the bailment account. Independent
Reserve SG Pte Ltd (“Independent Reserve”), Philippine Digital Asset Exchange (“Pdax”), Betur, Inc. (“Coins.ph”)
and Bitstamp Global Limited (“Bitstamp”) (collectively, the “Cryptocurrency Exchanges”) are centralized crypto
exchanges which keep the cryptographic keys for each respective XRP wallet and provide the Company with its respective API access keys.
The Company is the only party that holds the API access keys that grant it direct access to its XRP wallet maintained on the respective
Cryptocurrency Exchange. The Cryptocurrency Exchanges maintain records of all assets deposited by its users and send statements to the
Company. The Company reconciles its internal ODL transaction records to the statements received from the Cryptocurrency Exchanges to
ensure that these are accurate. The Company has an obligation to protect the API access keys from being abused or stolen. The Company
is responsible for any damages caused by loss or theft. Due
to the unique risks associated with cryptocurrencies, including technological, legal, and regulatory risks, in accordance with Staff
Accounting Bulletin No. 121 (“SAB 121”), we recognize a crypto asset safeguarding liability to reflect our obligation to
safeguard the crypto assets held in the bailment account, which is recorded in Accounts payable, accruals and other payables on our consolidated
balance sheet. We also recognize a corresponding safeguarding asset which is recorded in Prepayments, receivables and other assets on
our consolidated balance sheet. The crypto asset safeguarding liability and corresponding safeguarding asset are measured and recorded
at fair value on a recurring basis using prices available in the market we determine to be the principal market at the balance sheet
date. The corresponding safeguarding asset may be adjusted for loss events, as applicable. As of June 30, 2024, the Company has not incurred
any safeguarding loss events, and therefore, the crypto asset safeguarding liability and corresponding safeguarding asset were recorded
at the same value. Safeguarding assets as of June 30, 2024 and December 31, 2023 are $ 1,942,244 1,983,116 1,942,244 1,983,116 | (gg) Prefunding to remittances partner Prefunding
to remittance partner represents deposits made with such a partner for remittance services to be rendered by the partner in the future.
The prepayments are utilized when a remittance order is executed by the partner and the resulting amount of the order is deducted from
the balance with the partner. We
allow our remittance partners to prefund their balance through cryptocurrencies. These cryptocurrencies are mainly XRP. Ripple provides
the XRP upon request to the Company and our remittance partners. Under applicable accounting standards, we are an agent when facilitating
cryptocurrency transactions on behalf of our customers. These cryptocurrencies are held under a bailment arrangement in an account in
the Company’s name on behalf of our business partner but they are not Seamless’s assets and therefore, are not reflected
as cryptocurrency assets on our consolidated balance sheets . Although the Company does not control the XRP in the bailment account,
we are responsible for safeguarding the XRP in the bailment account. Independent Reserve SG Pte Ltd (“Independent Reserve”), Philippine
Digital Asset Exchange (“Pdax”), Betur, Inc. (“Coins.ph”) and Bitstamp Global Limited (“Bitstamp”)
(collectively, the “Cryptocurrency Exchanges”) are centralized crypto exchanges which keep the cryptographic keys for each
respective XRP wallet and provide the Company with its respective API access keys. The Company is the only party that holds the API access
keys that grant it direct access to its XRP wallet maintained on the respective Cryptocurrency Exchange. The Cryptocurrency Exchanges
maintain records of all assets deposited by its users and send statements to the Company. The Company reconciles its internal ODL transaction
records to the statements received from the Cryptocurrency Exchanges to ensure that these are accurate. The Company has an obligation
to protect the API access keys from being abused or stolen. The Company is responsible for any damages caused by loss or theft. Due
to the unique risks associated with cryptocurrencies, including technological, legal, and regulatory risks, in accordance with Staff
Accounting Bulletin No. 121 (“SAB 121”), we recognize a crypto asset safeguarding liability to reflect our obligation to
safeguard the crypto assets held in the bailment account, which is recorded in Accounts payable, accruals and other payables on our consolidated
balance sheet. We also recognize a corresponding safeguarding asset which is recorded in Prepayments, receivables and other assets on
our consolidated balance sheet. The crypto asset safeguarding liability and corresponding safeguarding asset are measured and recorded
at fair value on a recurring basis using prices available in the market we determine to be the principal market at the balance sheet
date. The corresponding safeguarding asset may be adjusted for loss events, as applicable. As of December 31, 2023, the Company has not
incurred any safeguarding loss events, and therefore, the crypto asset safeguarding liability and corresponding safeguarding asset were
recorded at the same value. Safeguarding assets as of December 31, 2023 and 2022 are $ 1,983,116 5,787,354 1,983,116 5,787,354 |
| Recent accounting pronouncements | | (hh) Recent accounting pronouncements In
March 2022, the SEC released SAB 121, which provides guidance for an entity to consider when it has obligations to safeguard customers’
crypto assets, whether directly or through an agent or another third party acting on its behalf. The interpretive guidance requires a
reporting entity to record a liability to reflect its obligation to safeguard the crypto assets held for its platform users with a corresponding
safeguarding asset. The crypto asset safeguarding liability and the corresponding safeguarding asset will be measured at the fair value
of the crypto assets held for the platform users with the measurement of the safeguarding asset taking into account any potential loss
events. SAB 121 also requires disclosures related to the entity’s safeguarding obligations for crypto assets held for its platform
users. SAB 121 was effective in the first interim or annual financial statements ending after June 15, 2022 with retrospective application
as of the beginning of the fiscal year. We adopted this guidance for the year ended December 31, 2022 with retrospective application
as of January 1, 2021. As of December 31, 2023 and 2022, we recorded $ 2.0 5.8 In
March 2022, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2022-02, “Financial Instruments—Credit
Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”). The amendments in this ASU
eliminate the accounting guidance for troubled debt restructurings (“TDRs”) by creditors in Subtopic 310-40, while enhancing
disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty.
The amendments are effective for the Company beginning after December 15, 2022. As of the year ended December 31, 2023, the Company
does not consider the changes prescribed in ASU 2022-02 to have a material impact on its consolidated financial position, results
of operations or cash flows. In
October 2021, the FASB issued ASU No. 2021-08, “‘Business Combinations (Topic 805): Accounting for Contract Assets and Contract
Liabilities from Contracts with Customers” (“ASU 2021-08”). This ASU requires entities to apply Topic 606 to recognize
and measure contract assets and contract liabilities in a business combination. The amendments improve comparability after the business
combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business
combination and revenue contracts with customers not acquired in a business combination. The amendments are effective for the Company
beginning after December 15, 2022, and are applied prospectively to business combinations that occur after the effective date. As
of the year ended December 31, 2023, the Company does not consider these amendments to have a material impact to the financial
statements. In
August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20): Accounting for Convertible
Instruments and Contracts in an Entity’s Own Equity, which simplifies an issuer’s accounting for convertible instruments
by reducing the number of accounting models that require separate accounting for embedded conversion features. ASU 2020-06 also simplifies
the settlement assessment that entities are required to perform to determine whether a contract qualifies for equity classification.
Further, ASU 2020-06 enhances information transparency by making targeted improvements to the disclosures for convertible instruments
and earnings-per-share (EPS) guidance, i.e., aligning the diluted EPS calculation for convertible instruments by requiring that an entity
use the if-converted method and that the effect of potential share settlement be included in the diluted EPS calculation when an instrument
may be settled in cash or shares, adding information about events or conditions that occur during the reporting period that cause conversion
contingencies to be met or conversion terms to be significantly changed. The Company meets the “emerging growth company”
as defined in the Jumpstart Our Business Startups Act of 2012, and is therefore eligible to take advantage of certain reduced reporting
requirements otherwise applicable to other public companies. For private companies, it’s effective for fiscal years beginning after
December 15, 2023. The Company has chosen not to early adopt the new standard before the effective date. |
| Going concern | (b) Going concern The
accompanying unaudited 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, 2024, the Company had cash balances of $ 48.6 76 42.5 6.2 2.1 0.2 0.2 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. | (b) Going concern The
accompanying audited 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 December 31, 2023, the Company had cash balances of $ 48.5 70.5 36.2 14.4 15.3 1.4 1.2 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. |
| Foreign currency | | (d) Foreign currency Foreign
subsidiaries have designated the local currency of their respective countries as their functional currency. Transactions denominated
in foreign currencies are re-measured into the functional currency at the exchange rates prevailing on the transaction dates. Monetary
assets and liabilities denominated in foreign currencies are re-measured at the exchange rates prevailing at the balance sheet date.
Exchange gains and losses are included in the consolidated statements of operations and comprehensive loss. Non-monetary items are not
subsequently re-measured. The
Company uses the average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results
and financial position, respectively, from the functional currency into the US$. Translation differences are recorded in accumulated
other comprehensive loss, a component of shareholders’ equity. |
| Short-term investments | | (f) Short-term investments Short-term
investments include fixed deposits with original maturities of greater than three months but less than one year. |
| Restricted cash | | (g) Restricted cash Restricted
cash includes the balance in the Company’s e-wallet mobile application held by the Company on behalf of the individual e-wallet
users. It is the Company’s policy to maintain approximately 110% of the amount deposited in case of immediate cash withdrawal by
e-wallet users. It
also includes fixed deposits pledged to the banks as security for banking facilities granted to the Company. |
| Accounts receivable | | (h) Accounts receivable Accounts
receivable represents the amounts that the Company has an unconditional right to receive. The Company complies with Accounting Standards
Codification (“ASC”) 326, which employs an approach based on expected losses to estimate the allowance for doubtful accounts. To
measure the expected credit losses, accounts receivable has been grouped based on shared credit risk characteristics and the days past
due. For certain large customers or customers with a high risk of default, the Company assesses the risk of loss of each customer individually
based on their financial information, past trends of payments and, where applicable, an external credit rating. Also, the Company considers
any accounts receivable having financial difficulty or in default with significant balances outstanding for more than 60 days to be credit-impaired,
and assesses the risk of loss for each of these accounts individually. The expected loss rates are based on the payment profiles of sales
over a period of 12 months from the measurement date and the corresponding historical credit losses experienced within this period. The
historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability
of the customers to settle their debts. The
Company has recorded a credit loss of US$ 187,462 and US$ 117,195 as of December 31, 2023 and 2022, respectively. SEAMLESS
GROUP INC. AND SUBSIDIARIES NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS
2 Summary
of significant accounting policies (Continued) |
| Escrow money receivable | | (i) Escrow money receivable Escrow
money receivable arises due to the time required to initiate collection from and clear transactions through external merchants. Escrow
money receivable represents the money collected by merchants when e-wallet users fund mobile payments through the Company’s e-wallet
mobile application, and there is a clearing period before the cash is received or settled, usually up to five business days. Escrow
money receivables are recognized initially at the amount of consideration that is unconditional unless they contain significant financing
components, when they are recognized at fair value. The Company holds the escrow money receivables with the object to collect the contractual
cash flows and therefore measures them subsequently at amortized cost using the effective interest method. |
| Investment in an equity security | | (j) Investment in an equity security The
Company elected to record the equity investment in a privately held company using the measurement alternative at cost, less impairment,
with subsequent adjustments for observable price changes resulting from orderly transactions for identical or similar investments of
the same issuer. It is subject to periodic impairment reviews. The Company’s impairment analysis considers both qualitative and
quantitative factors that may have a significant effect on the fair value of the equity security. |
| Equipment, net | | (k) Equipment, net Equipment, net is stated at historical cost less accumulated depreciation and accumulated impairment losses, if any. Historical cost
includes expenditures that are directly attributable to the acquisitions of the fixed assets. Subsequent costs are included in the asset’s
carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated
with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted
for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to the consolidated statements of
operations and comprehensive loss during the year in which they are incurred. Depreciation
of equipment is calculated using the straight-line method with no residual values over their estimated useful lives, as
follows: SCHEDULE OF DEPRECIATION OF EQUIPMENT AND SOFTWARE STRAIGHT LINE METHOD
Office
equipment 10%
Furniture
and fittings 10%
Renovation 10%
Signboard 10%
Computer
peripherals 33%
Electrical
installation 10%
Mobile
phone 33%
Motor
vehicle 20%
Air
conditioners 10%
Store
equipment 20% The
assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. SEAMLESS
GROUP INC. AND SUBSIDIARIES NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS
2 Summary
of significant accounting policies (Continued) (k) Equipment, net (Continued) An
asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than
its estimated recoverable amount. Gains
and losses on disposals of equipment are determined by comparing the proceeds with the carrying amount and are recognized
in the consolidated statements of operations and comprehensive loss. |
| Intangible assets, net | | (l) Intangible assets, net Intangible
assets primarily consist of acquired computer software, developed technologies and trade names and trademarks. These intangible assets
are amortized over a period of 5 7 10 |
| Goodwill | | (m) Goodwill Goodwill
represents the excess of the purchase price over the estimated fair value of net tangible and identifiable intangible assets acquired
in a business combination. The Company performs goodwill impairment test on annual basis and more frequently upon the occurrence of certain
events as defined by ASC 350. Goodwill is impaired when the carrying value of the reporting units exceeds its fair value. The Company
first assesses qualitative factors to determine whether events or circumstances indicate that it is more likely than not that the fair
value of a reporting unit is less than its carrying amount. Based on the qualitative assessment, if it is more likely than not that the
fair value of a reporting unit is less than the carrying amount, the quantitative impairment test is performed. The
Company estimates the fair value of the reporting unit using a discounted cash flow approach. Significant management judgment and estimation
are involved in forecasting the amount and timing of expected future cash flows and the underlying assumptions used in the discounted
cash flow approach to determine the fair value of the reporting unit. As the fair values of the reporting units is not less than carrying
amount, no impairment was recorded for the years ended December 31, 2023 and 2022. |
| Impairment of long-lived assets other than goodwill | | (n) Impairment of long-lived assets other than goodwill Long-lived
assets such as equipment and software with finite lives are evaluated for impairment whenever events or changes in circumstances indicate
that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Company had originally estimated.
When these events occur, the Company evaluates the impairment of the long-lived assets by comparing the carrying value of the assets
to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition.
If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Company recognizes an impairment
loss based on the excess of the carrying value of the assets over the fair value of the assets. Fair value is generally determined by
discounting the cash flows expected to be generated by the assets, when the market prices are not readily available. The Company did
not record any impairment of long-lived assets during the years ended December 31, 2023 and 2022. |
| Escrow Money Payable | | (o) Escrow Money Payable Escrow
money payable arises due to the time required to initiate collection from and clear transactions through external merchants. Escrow money
payable represents the money paid by merchants when e-wallet users execute mobile payment through the Company’s e-wallet mobile
application, and there is a clearing period before the cash is received or settled, usually up to five business days. |
| Client money payable | | (p) Client money payable Client
money payable relates to the Company’s e-wallet mobile application and is represented by the amounts due to e-wallet users held
by the Company. Client money is maintained in the e-wallet until a transfer or withdrawal is requested by the e-wallet users. SEAMLESS
GROUP INC. AND SUBSIDIARIES NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS
2 Summary
of significant accounting policies (Continued) |
| Convertible bond | | (q) Convertible bond The
Company accounts for debt instruments with convertible features in accordance with the details and substance of the instruments at the
time of their issuance. For convertible debt instruments issued at a substantial premium to equivalent instruments without conversion
features, or those that may be settled in cash upon conversion, it is presumed that the premium or cash conversion option represents
an equity component. Accordingly, the Company determines the carrying amounts of the liability and equity components of such convertible
debt instruments by first determining the carrying amount of the liability component by measuring the fair value of a similar liability
that does not have an equity component. The carrying amount of the equity component representing the embedded conversion option is then
determined by deducting the fair value of the liability component from the total proceeds from the issue. The resulting equity component
is recorded, with a corresponding offset to debt discount which is subsequently amortized to interest cost using the effective interest
method over the period the debt is expected to be outstanding as an additional non-cash interest expense. Transaction costs associated
with the instrument are allocated pro-rata between the debt and equity components. For
conventional convertible bonds which do not have a cash conversion option or where no substantial premium is received on issuance, it
may not be appropriate to split the bond into the liability and equity components. A
conversion of the bonds at more favorable terms than the original bond is treated as an inducement and the Company recognizes a debt
conversion expense equal to the fair value of all securities and other consideration transferred in the transaction in excess of the
fair value of securities or consideration issuable pursuant to the original conversion terms. |
| Revenue recognition | | (s) Revenue recognition The
Company complies with ASC 606, Revenue from Contracts with Customers. Revenue
from contracts with customers is measured based on the consideration specified in a contract with a customer in exchange for transferring
goods or services to a customer net of sales and service tax, returns, rebates and discounts. The Company recognizes revenue when (or
as) it transfers control over a product or service to its customer. An asset is transferred when (or as) the customer obtains control
of the asset. Depending on the substance of the contract, revenue is recognized when the performance obligation is satisfied, which may
be at a point in time or over time. Contract
assets represent the Company’s right to consideration for performance obligations that have been fulfilled but for which the customer
has not been billed as of the balance sheet date. Remittance
services revenue Revenue
from contracts with customers on service charges and gain/loss on foreign exchange arising from remittance activities are recognized
upon the processing and execution of the international money transfer transactions. Remittance services are further divided into Fiat
Currency Prefunded Remittance Service and XRP Prefunded Remittance Service. Management has considered these two services to be two product
lines. The
customers of the remittance services are financial institutions (referred to as “Remittance Partners”). Remittance Partners
who use the fiat currency prefunding option for their remittance business with the Company are referred to as Fiat Currency Prefunded
Remittance Partners, whereas customers who choose the XRP Prefunding mode are referred to as XRP Prefunded Remittance Partners. Fiat
Currency Prefunded Remittance Service The
Company earns revenue by charging their customers a Fiat Currency Prefunded Remittance Fee when they use the Company’s platform
to transfer money to a beneficiary in another country. These Fiat Currency Prefunded Remittance Fees are fixed and specific for every
country’s currency and are charged at the point-in-time of executing this performance obligation. Prior to delivering cash to the
customer’s beneficiary, the customer must directly provide the Company with prefunding (i.e., the cash to be remitted to the beneficiary).
This is the traditional prefunding process, which the Company describes as Fiat Currency Prefunded Remittance Service. XRP
Prefunded Remittance Service Unlike
the Fiat Currency Prefunded Remittance Service, the customer obtains prefunding through Ripple Solution offered by Ripple Lab Inc. (see
Note 21) with the XRP Prefunded Remittance Service. Ripple supplies the customer with the XRP equivalent of the requested prefunding.
The Company subsequently liquidates this XRP on Ripple’s behalf, and the fiat currency obtained as a result of the liquidation
process is transferred to the customer’s beneficiary. Customers who prefund their remittance service with XRP must enter into an
agreement with Ripple and undergo stringent credit checks in order to get XRP prefunding and use Ripple’s platform. The Company
charges their customers an XRP Prefunded Remittance Service Fee when the money is transferred to the customer’s beneficiary. For
both the XRP Prefunded and Fiat Currency Prefunded Remittance Services, the Company has no obligations to the Customer in terms of guarantees,
warranties or other similar obligations. There are also no significant payment terms involved as the Company obtains their fees shortly
after charging their c SEAMLESS
GROUP INC. AND SUBSIDIARIES NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS
2 Summary
of significant accounting policies (Continued) Sales
Walletku Modern Channel Revenue
from the sale of goods is recognized at the point in time when the Company satisfies its performance obligation, which is upon delivery
of the goods to customer. The credit terms are typically 3-7 days. Sales
of airtime Revenue
from airtime sold is recognized when the relevant international airtime transfer or reload request is processed and executed. Other
services Revenue
from contracts with customers on other services is recognized as and when services are rendered. |
| Revenue recognition | (d) Revenue recognition The
Company complies with ASC 606, Revenue from Contracts with Customers. Revenue
from contracts with customers is measured based on the consideration specified in a contract with a customer in exchange for transferring
goods or services to a customer net of sales and service tax, returns, rebates and discounts. The Company recognizes revenue when (or
as) it transfers control over a product or service to its customer. An asset is transferred when (or as) the customer obtains control
of the asset. Depending on the substance of the contract, revenue is recognized when the performance obligation is satisfied, which may
be at a point in time or over time. Contract
assets represent the Company’s right to consideration for performance obligations that have been fulfilled but for which the customer
has not been billed as of the balance sheet date. SEAMLESS
GROUP INC. AND SUBSIDIARIES NOTES
TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
2 Summary of significant accounting policies (continued) Remittance
services revenue Revenue
from contracts with customers on service charges and gain/loss on foreign exchange arising from remittance activities are recognized
upon the processing and execution of the international money transfer transactions. Remittance services are further divided into Fiat
Currency Prefunded Remittance Service and XRP Prefunded Remittance Service. Management has considered these two services to be two product
lines. The
customers of the remittance services are financial institutions (referred to as “Remittance Partners”). Remittance Partners
who use the fiat currency prefunding option for their remittance business with the Company are referred to as Fiat Currency Prefunded
Remittance Partners, whereas customers who choose the XRP Prefunding mode are referred to as XRP Prefunded Remittance Partners. Fiat
Currency Prefunded Remittance Service The
Company earns revenue by charging their customers a Fiat Currency Prefunded Remittance Fee when they use the Company’s platform
to transfer money to a beneficiary in another country. These Fiat Currency Prefunded Remittance Fees are fixed and specific for every
country’s currency and are charged at the point-in-time of executing this performance obligation. Prior to delivering cash to the
customer’s beneficiary, the customer must directly provide the Company with prefunding (i.e., the cash to be remitted to the beneficiary).
This is the traditional prefunding process, which the Company describes as Fiat Currency Prefunded Remittance Service. XRP
Prefunded Remittance Service Unlike
the Fiat Currency Prefunded Remittance Service, the customer obtains prefunding through Ripple Solution offered by Ripple Lab Inc. (see
Note 8) with the XRP Prefunded Remittance Service. Ripple supplies the customer with the XRP equivalent of the requested prefunding.
The Company subsequently liquidates this XRP on Ripple’s behalf, and the fiat currency obtained as a result of the liquidation
process is transferred to the customer’s beneficiary. Customers who prefund their remittance service with XRP must enter into an
agreement with Ripple and undergo stringent credit checks in order to get XRP prefunding and use Ripple’s platform. The Company
charges their customers an XRP Prefunded Remittance Service Fee when the money is transferred to the customer’s beneficiary. For
both the XRP Prefunded and Fiat Currency Prefunded Remittance Services, the Company has no obligations to the customer in terms of guarantees,
warranties or other similar obligations. There are also no significant payment terms involved as the Company obtains their fees shortly
after charging their customers. Sales
Walletku Modern Channel Revenue
from the sale of goods is recognized at the point in time when the Company satisfies their performance obligation, which is upon delivery
of the goods to the customer. The credit terms are typically 3-7 days. Sales
of airtime Revenue
from airtime sold is recognized when the relevant international airtime transfer or reload request is processed and executed. Other
services Revenue
from contracts with customers on other services is recognized as and when services are rendered. SEAMLESS
GROUP INC. AND SUBSIDIARIES NOTES
TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
2 Summary of significant accounting policies (continued) | (t) Cost of revenue Costs
of revenues consist primarily of agency handling fees, top-up service fees paid to convenience stores, handling charges to banks and
credit card providers, amortization of the intangible assets of acquired computer software, developed technologies, cost of digital -
pulses, data packages, game vouchers, bill payment, SIM Cards (starter pack) and airtime balance. |
| Advertising and Promotion Costs | | (u) Advertising and Promotion Costs Advertising
and promotion costs are expensed when incurred and are included in general and administrative expenses. The total amount of advertising
and promotion costs recognized were US$ 784,818 618,661 |
| Leases | | (v) Leases According
to ASC 842, Leases, lessees are required to record a right-of-use asset and lease liabilities for operating leases. At the lease commencement
date, a lessee should measure and record the lease liability equal to the present value of scheduled lease payments discounted using
the rate implicit in the lease or the lessee’s incremental borrowing rate, and the right-of-use asset is calculated on the basis
of the initial measurement of the lease liability, plus any lease payments at or before the commencement date and direct costs, minus
any incentives received. Over the lease term, a lessee must amortize the right-of-use asset and record interest expense on the lease
liability. The recognition and classification of lease expenses depend on the classification of the lease as either operating or finance. The
Company has elected the practical expedient of the short-term lease exemption for contracts with lease terms of 12 months or less. |
| Employee benefit expenses | | (w) Employee benefit expenses The
Company’s costs related to the staff retirement plans (see Note 16) are charged to the consolidated statements of operations and
comprehensive loss as incurred. SEAMLESS
GROUP INC. AND SUBSIDIARIES NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS
2 Summary
of significant accounting policies (Continued) |
| Segments | (e) Segments As
the chief operating decision-maker (“CODM”) of the Company, the Chief Executive Officer reviews the financial results when
making decisions about allocating resources and assessing the performance of the Company. TNG (Asia) Limited (“TNGA”), the
Tranglo Sdn BHD and related subsidiaries (“Tranglo”), GEA Limited and GEA Pte Ltd. (“GEA”) and PT Walletku Indompet
Indonesia (“Walletku”) are all considered operating segments. These have been aggregated into two reportable segments, which
are remittance services and sales of airtime, as described in Note 6. Other services are not assigned to a specific reportable segment
as their results of operations are immaterial. The
remittance segment is operated through TNGA, GEA and Tranglo. TNGA and GEA are in the retail remittance business in Hong Kong, which
is in the upstream segment of the remittance business, whereas Tranglo operates the remittance hub covering Southeast Asia and globally,
and is thus in the downstream segment of the remittance business. Management operates, monitors and evaluates the whole remittance business
through these three subsidiaries so as to generate the maximum synergy and create maximum value for the Company. The
Company operates the airtime segment via their international airtime transfer business through Tranglo and their retail airtime trading
business locally in Indonesian through WalletKu. As with the remittance segment, management believes maximum synergy and business value
can best be achieved by aggregating and managing the airtime business through these two subsidiaries. | (z) Segments As
the chief operating decision-maker (“CODM”) of the Company, the Chief Executive Officer reviews the financial results when
making decisions about allocating resources and assessing the performance of the Company. TNG (Asia) Limited (“TNGA”), the
Tranglo Sdn BHD and related subsidiaries (“Tranglo”), GEA Limited and GEA Pte Ltd. (“GEA”) and PT Walletku Indompet
Indonesia (“Walletku”) are all considered operating segments. These have been aggregated into two reportable segments, which
are remittance services and sales of airtime, as described in Note 18. Other services are not assigned to a specific reportable segment
as their results of operations are immaterial. The
remittance segment is operated through TNGA, GEA and Tranglo. TNGA and GEA are in the retail remittance business in Hong Kong, which
is in the upstream segment of the remittance business, whereas Tranglo operates the remittance hub covering Southeast Asia and globally,
and is thus in the downstream segment of the remittance business. Management operates, monitors and evaluates the whole remittance business
through these three subsidiaries so as to generate the maximum synergy and create maximum value for the Company. The
Company operates the airtime segment via its international airtime transfer business through Tranglo and its retail airtime trading business
locally in Indonesian through WalletKu. As with the remittance segment, management believes maximum synergy and business value can best
be achieved by aggregating and managing the airtime business through these two subsidiaries. |
| Share capital | | (aa) Share capital The
Company has only one class of common shares authorized, issued and outstanding. |
| Related parties | | (bb) Related parties Entities
are considered to be related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are
controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management,
members of the immediate families of principal owners of the Company and its management and 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. |
| Share-based compensation | | (dd) Share-based compensation The
Company accounts for share-based payments in accordance with ASC Topic 718 “Compensation – Stock Compensation” (“ASC
718”), under which the fair value of awards issued to employees is expensed over the period in which the awards vest. The
Company had an incentive plan approved and adopted on September 13, 2018, namely the 2018 Equity Incentive Plan. Under the 2018 Equity
Incentive Plan, a total of 2,591,543 978,397 12.87 5,803,000 All
shares granted under the 2022 Incentive Plan will be vested upon (i) the completion of an IPO or (ii) the completion of a de SPAC merger.
The Incentive shares will then be vested under a trust. The trustee will distribute the vested shares to the staff based on a schedule
of (i) one third immediately upon the vesting of Incentive shares at the time of completion of IPO or de SPAC, (ii) one third on the
first anniversary date thereafter, (iii) one third on the second anniversary date thereafter. The
Company estimates the fair value of awards using a binomial pricing model. The Company accounts forfeitures as they occur. For the awards
granted on July 29, 2022, the following assumptions were used in the model: SCHEDULE OF FAIR ASSUMPTIONS OF
AWARDS GRANTED Expected
Volatility ( 39.84 43.74 Expected
Dividend Yield ( 0 Expected
Time to Liquidity ( 0.92 2.92 Exercise
Price ($ Nil Stock
price at grant date ($ 6.55 Weighted
Average Fair Value of 1 Share ($ 5.73 The
fair value of the awards granted on July 29, 2022 is $ 32,790,450 77,261 |
| Share-based compensation | (f) Share-based compensation The
Company accounts for share-based payments in accordance with ASC Topic 718 “Compensation – Stock Compensation” (“ASC
718”), under which the fair value of awards issued to employees is expensed over the period in which the awards vest. The
Company had an incentive plan approved and adopted on September 13, 2018, namely the 2018 Equity Incentive Plan. Under the 2018 Equity
Incentive Plan, a total of 2,591,543 978,397 12.87 5,803,000 All
shares granted under the 2022 Incentive Plan will be vested upon (i) the completion of an IPO or (ii) the completion of a de SPAC merger.
The Incentive shares will then be vested under a trust. The trustee will distribute the vested shares to the staff based on a schedule
of (i) one third immediately upon the vesting of Incentive shares at the time of completion of IPO or de SPAC, (ii) one third on the
first anniversary date thereafter, (iii) one third on the second anniversary date thereafter. The
fair value of the awards granted on July 29, 2022 is $ 32,790,450 430,000 SEAMLESS
GROUP INC. AND SUBSIDIARIES NOTES
TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
2 Summary of significant accounting policies (continued) | |
