DSwiss Inc (DQWS) — 10-K

Filed 2026-03-31 · Period ending 2025-12-31 · 30,380 words · SEC EDGAR

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# DSwiss Inc (DQWS) — 10-K

**Filed:** 2026-03-31
**Period ending:** 2025-12-31
**Accession:** 0001493152-26-013865
**Source:** [SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1652561/000149315226013865/)
**Origin leaf:** 2f5126dfe86b4b3519c2d8ffe27840e61e5967edef5a9475881565e5b252cbc9
**Words:** 30,380



---

**
UNITED
STATES**
**SECURITIES
AND EXCHANGE COMMISSION**
**Washington,
D.C. 20549**
**FORM
10-K**
| 
| 
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
**For
The Fiscal Year Ended December 31, 2025**
**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 333-208083**
**DSwiss,
Inc.**
(Exact
name of registrant issuer as specified in its charter)
| 
Nevada | 
| 
47-4215595 | |
| 
(State
or other jurisdiction of
incorporation
or organization) | 
| 
(I.R.S.
Employer
Identification
No.) | |
**No.
B-10-08, Vertical Business Suite,**
**Bangsar
South City, No.8 Jalan Kerinchi, 59200 Kuala Lumpur, Malaysia.**
(Address
of principal executive offices, including zip code)
Registrants
phone number, including area code **(603) 2242-4032**
Securities
registered pursuant to Section 12(b) of the Securities Exchange Act: **None**
Securities
registered pursuant to Section 12(g) of the Securities Exchange Act: **None**
Indicate
by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes
No 
Indicate
by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
Yes
No 
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 and posted pursuant
to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant
was required to submit and post such files).
YES
NO 
Indicate
by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K ( 229.405 of this chapter) is not contained
herein, and will not be contained, to the best of registrants knowledge, in definitive proxy or information statements incorporated
by reference in Part III of this Form 10-K or any amendment to this Form 10-K.
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or 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
Accelerated Filer Accelerated 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. 
If
securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant
included in the filing reflect the correction of an error to previously issued financial statements. 
Indicate
by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation
received by any of the registrants executive officers during the relevant recovery period pursuant to 240.10D-1(b). 
Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes
No 
The
aggregate market value of the Companys common stock held by non-affiliates computed by reference to the closing bid price of the
Companys common stock, as of the last business day of the registrants most recently completed second fiscal quarter:
Not
Applicable
APPLICABLE
ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS
DURING THE PRECEDING FIVE YEARS:
Indicate
by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.
Not
Applicable
APPLICABLE
ONLY TO CORPORATE REGISTRANTS
Indicate
the number of shares outstanding of each of the issuers classes of common stock, as of the latest practicable date.
| 
Class | 
| 
Outstanding
at December 31, 2025 | |
| 
Common Stock, $.0001 par
value | 
| 
206,904,585 | |
| | |
| | |
DSwiss,
Inc.
FORM
10-K
For
the Fiscal Year Ended December 31, 2025
Index
| 
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Page
# | |
| 
PART I | 
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| |
| 
Item 1. | 
Business | 
2 | |
| 
Item 1A. | 
Risk Factors | 
10 | |
| 
Item 1B. | 
Unresolved Staff Comments | 
10 | |
| 
Item 1C. | 
Cybersecurity | 
10 | |
| 
Item 2. | 
Properties | 
11 | |
| 
Item 3. | 
Legal Proceedings | 
11 | |
| 
Item 4. | 
Mine Safety Disclosures | 
11 | |
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| 
PART II | 
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| |
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| |
| 
Item 5. | 
Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 
11 | |
| 
Item 6. | 
Selected Financial Data | 
13 | |
| 
Item 7. | 
Managements Discussion and Analysis of Financial Condition and Results of Operations | 
13 | |
| 
Item 7A. | 
Quantitative and Qualitative Disclosures About Market Risk | 
19 | |
| 
Item 8. | 
Financial Statements and Supplementary Data | 
19 | |
| 
Item 9. | 
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | 
20 | |
| 
Item 9A. | 
Controls and Procedures | 
20 | |
| 
Item 9B. | 
Other Information | 
21 | |
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PART III | 
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| 
Item 10. | 
Directors, Executive Officers and Corporate Governance | 
22 | |
| 
Item 11. | 
Executive Compensation | 
24 | |
| 
Item 12. | 
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 
26 | |
| 
Item 13. | 
Certain Relationships and Related Transactions, and Director Independence | 
27 | |
| 
Item 14. | 
Principal Accounting Fees and Services | 
28 | |
| 
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| 
PART IV | 
| 
| |
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| 
| |
| 
Item 15. | 
Exhibits, Financial Statement Schedules | 
28 | |
| 
| 
| 
| |
| 
SIGNATURES | 
29 | |
| | |
| | |
**CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS**
*This
Annual Report on Form 10-K contains forward-looking statements. These forward-looking statements are not historical facts but rather
are based on current expectations, estimates and projections. We may use words such as anticipate, expect,
intend, plan, believe, foresee, estimate and variations of these
words and similar expressions to identify forward-looking statements. These statements are not guarantees of future performance and are
subject to certain risks, uncertainties and other factors, some of which are beyond our control, are difficult to predict and could cause
actual results to differ materially from those expressed or forecasted. These risks and uncertainties include the following:*
| 
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The availability and
adequacy of our cash flow to meet our requirements; | |
| 
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| |
| 
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| 
Economic, competitive,
demographic, business and other conditions in our local and regional markets; | |
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Changes or developments
in laws, regulations or taxes in our industry; | |
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| |
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Actions taken or omitted
to be taken by third parties including our suppliers and competitors, as well as legislative, regulatory, judicial and other governmental
authorities; | |
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| |
| 
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| 
Competition in our industry; | |
| 
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| |
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The loss of or failure
to obtain any license or permit necessary or desirable in the operation of our business; | |
| 
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| |
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Changes in our business
strategy, capital improvements or development plans; | |
| 
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| 
| |
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The availability of
additional capital to support capital improvements and development; and | |
| 
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| |
| 
| 
| 
Other risks identified
in this report and in our other filings with the Securities and Exchange Commission or the SEC. | |
*This
report should be read completely and with the understanding that actual future results may be materially different from what we expect.
The forward-looking statements included in this report are made as of the date of this report and should be evaluated with consideration
of any changes occurring after the date of this Report. We will not update forward-looking statements even though our situation may change
in the future and we assume no obligation to update any forward-looking statements, whether as a result of new information, future events
or otherwise.*
**Use
of Defined Terms**
Except
as otherwise indicated by the context, references in this Report to:
| 
| 
| 
The Company,
we, us, or our, DSwiss are references to DSwiss, Inc., a Nevada corporation. | |
| 
| 
| 
| |
| 
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| 
Common Stock
refers to the common stock, par value $.0001, of the Company; | |
| 
| 
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| |
| 
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| 
U.S. dollar,
$ and US$ refer to the legal currency of the United States; | |
| 
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| |
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| 
Securities Act
refers to the Securities Act of 1933, as amended; and | |
| 
| 
| 
| |
| 
| 
| 
Exchange Act
refers to the Securities Exchange Act of 1934, as amended. | |
****
| 1 | |
| | |
****
**PART
I**
**ITEM
1. BUSINESS**
**Corporate
History**
DSwiss,
Inc. (the Company), a Nevada corporation, was incorporated on May 28, 2015. The Company operates through its wholly-owned
subsidiary, DSwiss Holding Limited, incorporated in Seychelles.
The
Company and its subsidiaries are primarily engaged in the supply of high-quality health and beauty products. These include weight management
beverages, anti-aging solutions, and immune system enhancers designed to promote overall health and well-being.
The
Company conducts its operations through DSwiss Sdn Bhd, a private limited liability company incorporated in Malaysia. DSwiss Holding
Limited, the Seychelles-based investment holding company, owns 100% equity interest in DSwiss (HK) Limited, a Hong Kong entity. DSwiss
(HK) Limited, in turn, holds 100% equity interest in DSwiss Sdn Bhd.
Additionally,
the Company previously held a 40% equity interest in DSwiss Biotech Sdn Bhd, a Malaysian entity. On January 18, 2023, DSwiss (HK) Limited
acquired the remaining 60% equity interest in DSwiss Biotech Sdn Bhd for a consideration of RM1, making it a wholly-owned subsidiary
of DSwiss (HK) Limited.
The
Company, through its subsidiaries, focuses on the supply of premium beauty and health products. Below is an overview of the Companys
subsidiaries:
| 
| | 
Company name | | 
Place and date of incorporation | | 
Particulars of issued capital | | 
Principal activities | | 
Proportional of ownership interest and voting power held | |
| 
1. | | 
DSwiss Holding Limited | | 
Seychelles, May 28, 2015 | | 
1 share of ordinary share of US$1 each | | 
Investment holding | | 
100% | |
| 
| | 
| | 
| | 
| | 
| | 
| |
| 
2. | | 
DSwiss (HK) Limited | | 
Hong Kong, May 28, 2015 | | 
1 share of ordinary share of HK$1 each | | 
International trade in health care and beauty products | | 
100% | |
| 
| | 
| | 
| | 
| | 
| | 
| |
| 
3. | | 
DSwiss Sdn Bhd | | 
Malaysia, March 10, 2011 | | 
2 shares of ordinary share of RM 1 each | | 
Supply of health care products | | 
100% | |
| 
| | 
| | 
| | 
| | 
| | 
| |
| 
4. | | 
DSwiss Biotech Sdn Bhd | | 
Malaysia, March 17, 2016 | | 
250,000 shares of ordinary share of RM 1 each | | 
Research and development on biotechnology | | 
100% | |
**Business
Overview**
DSwiss
is a premier biotech nutraceutical firm and turnkey Private Label ODM/OEM provider, specializing in premium healthcare, skincare, and
personal care solutions. We craft high-quality formulations using natural ingredients, ensuring excellence from raw material sourcing
to manufacturing and packaging. Our diverse product portfolio includes functional foods, health supplements, skincare, personal care,
and pet wellness products, designed to enhance well-being and lifestyle quality.
Since
our inception, DSwiss has experienced remarkable growth, fueled by over a decade of continuous innovation in the health and beauty industry.
Under the visionary leadership of CEO Vincent Leong, our premium lifestyle solutions have expanded across Malaysia, Singapore, Indonesia,
Hong Kong, Australia, Taiwan, Macau, and China. With a strong distributor network, we continue to strengthen our presence across the
Asia-Pacific region while actively exploring new global markets.
Driven
by a team of industry experts, DSwiss remains dedicated to delivering superior products and customized solutions that cater to diverse
client needs. Guided by our philosophy, Creating Beauty, Health, and the Ecosystem, our cutting-edge R&D team pioneers
new product lines and integrates the latest scientific advancements. This commitment to research and innovation empowers us to develop
evidence-based, high-value formulations, ensuring our continued leadership in the industry.
****
| 2 | |
| | |
****
**Comprehensive
OEM & ODM Solutions**
With
extensive expertise in OEM and ODM services, DSwiss offers end-to-end solutions designed to meet the unique needs of our clients. Beyond
product development, we provide strategic business consultancy, market trend analysis, and marketing support to drive success. Our unwavering
commitment to quality and reliability is reflected in our meticulous selection of premium ingredients and materials, ensuring excellence
at every stage from research and development to production. By combining innovation with industry-leading expertise, we empower brands
to thrive in the dynamic health and beauty market.
**Commitment
To Quality & Innovation**
At
DSwiss, we are committed to delivering exceptional health supplements and beauty products by sourcing premium natural active ingredients
with the utmost care. Our rigorous quality control and assurance processes guarantee the safety, efficacy, and consistency of every product
we produce.
Upholding
the highest industry standards, we strictly adhere to the regulations set by the Ministry of Health (MOH) Malaysia. Through advanced
production techniques and specialized equipment, we continuously refine our processes, integrating customer feedback to drive innovation
and excellence.
As
a trusted partner in private label manufacturing, DSwiss provides fully customizable solutions tailored to meet the unique needs of our
clients. With an unwavering dedication to quality, innovation, and sustainability, we empower businesses to thrive in competitive markets
while contributing to a healthier and more sustainable future.
DSwiss
has cultivated a strong team and forged strategic partnerships worldwide, harnessing advanced manufacturing and R&D capabilities
to deliver high-quality, cost-effective solutions. We thrive on collaboration, working closely with our clients to develop and produce
customized formulations that align seamlessly with their unique brand visions. With a commitment to innovation and excellence, we continue
to drive growth and set new industry standards in health and beauty.
**Expanding
Our Expertise & Capabilities**
Over
the past year, we have enhanced our key departments by welcoming top industry professionals, including nutritionists, scientists, laboratory
technicians, customer relationship executives, and operations specialists. Through seamless collaboration, our experts drive the development
of groundbreaking natural health and beauty products, leveraging premium ingredients and state-of-the-art formulations. With an unwavering
commitment to quality and regulatory excellence, we continue to pioneer innovative solutions that redefine the future of health and beauty.
**Investing
In Future Growth & Innovation**
We
are actively advancing our strategic initiatives in Talent and Product Development, focusing on pioneering new formulations that align
with evolving market demands. Through in-depth market analysis, literature research, and product testing, we ensure full compliance with
JAKIM Halal and Malaysian Ministry of Health standards.
Our
experts oversee every stage of developmentfrom sourcing premium raw materials and precision manufacturing to rigorous quality
control, stability and safety testing, third-party lab verification, innovative packaging, and seamless shipping.
Supporting
these efforts, our Operations team ensures a streamlined supply chain, while our Accounts & Finance team upholds financial integrity
to drive sustainable growth. Through collaboration and continuous innovation, we are shaping the future of health and beauty solutions.
****
| 3 | |
| | |
****
**Expanding
Our Global Reach**
Leveraging
our expertise and deep industry knowledge, we have successfully expanded our OEM/ODM client base in 2024 while strengthening our brand
recognition within the sector. As the demand for high-quality products continues to grow, manufacturers must excel in specialized knowledge,
R&D innovation, and advanced technology. At DSwiss, we are dedicated to being a trusted partner for brands committed to excellence
in health and beauty.
Over
the past two years, we have focused on strengthening our presence in Malaysia, laying a solid foundation for future growth. Now, driven
by our vision to become a global leader in healthcare and skincare/personal care manufacturing, we are strategically re-entering key
international markets, including China, United States, Singapore and others bustling market in the global. Our mission is to set new
industry benchmarks in health and beauty through cutting-edge technology, holistic wellness solutions, innovative product formulations,
and exceptional customer care.
With
innovation at the core of our growth strategy, we are shaping the future of the health and beauty industry on a global scale, ensuring
our products and services meet the evolving needs of consumers worldwide.
**Overview**
We
specialize in turnkey private label manufacturing for nutraceutical and skincare/personal care ODM/OEM products, providing a seamless
one-stop solution.
Our
end-to-end services encompass custom formulation research and development, manufacturing, production, packaging, and shipping, as well
as import/export and regulatory licensing.
With
a strong commitment to quality and innovation, we offer premium services backed by rigorous laboratory testing, strict quality control,
and efficient production. Our expert team formulates scientifically proven, naturally effective, and high-value-added products designed
to meet diverse market needs.
Our
production facilities uphold the highest national and international standards, including GMP (Good Manufacturing Practices), HACCP (Hazard
Analysis and Critical Control Points), JAKIM Halal, ISO, and MESTI, ensuring excellence at every stage of production.
**Expert
Consultancy**
With
years of experience collaborating with diverse clients, we have been instrumental in driving growth and success. Our expertise empowers
businesses to operate efficiently and profitably, providing comprehensive guidance across all operational areas while keeping them ahead
of the latest market trends and best practices.
Beyond
business consultancy, we offer strategic marketing solutions and dedicated support, helping businesses unlock new opportunities and achieve
their full potential. With a forward-thinking approach, we are committed to driving innovation, sustainability, and long-term success
for our partners.
**Innovative
R&D**
Our
innovative in-house R&D team is dedicated to developing specialized formulations and tailored solutions through in-depth research
and cutting-edge innovation. We carefully source premium ingredients and materials from trusted suppliers, ensuring the highest standards
of quality. With a strong commitment to safety and efficacy, we implement rigorous quality control and assurance protocols at every stage
of production, delivering exceptional products that inspire confidence and drive success.
****
| 4 | |
| | |
****
**Design
& Packaging**
Our
dedicated teams work closely with clients to design innovative packaging and visuals that enhance unique selling points and strengthen
brand identity. Aligned with Ministry of Health standards, we offer comprehensive consultation on packaging designincluding text,
labels, and graphicswhile integrating sustainable materials, ensuring product stability, and optimizing shelf life. Through our
tailored solutions, we help businesses create impactful and market-ready products.
**Regulatory
Services**
Our
experienced regulatory specialists provide end-to-end support to ensure a smooth market entry for your product. We expertly prepare and
submit documentation to key authorities, including the Ministry of Health (Malaysia), HALAL (Malaysia), and other relevant regulatory
bodies. With our thorough guidance, we help streamline approvals, ensuring compliance and accelerating your products journey to
market success.
**Production
& Quality Assurance**
Our
products are crafted under strict Good Manufacturing Practice (GMP) standards, with rigorous quality and safety controls at every stage.
Raw materials and finished products undergo prompt testing in our internal laboratory, adhering to the highest industry standards.
Equipped
with advanced machinery, our state-of-the-art facility produces a diverse range of dosage forms and container types, catering to various
customer needs. Quality control is seamlessly integrated throughout the production process, ensuring precision manufacturing and consistent
excellence.
With
a commitment to continuous innovation and improvement, we take pride in delivering end-to-end solutionsensuring every product
reaches customers on time and in optimal condition.
**Products
and Formulations**
**Functional
Food**
Functional
foods, also known as nutraceuticals, are crafted to provide health benefits beyond basic nutrition, supporting overall well-being and
reducing the risk of diseases.
| 
| 
Enriched with essential
nutrients, vitamins, minerals, and bioactive compounds to prevent nutritional deficiencies and optimize physiological functions. | |
| 
| 
Designed to enhance bodily
functions and contribute to long-term health maintenance. | |
| 
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Developed by a team of
experienced food technologists and scientists specializing in innovative food supplements. | |
| 
| 
Available in various forms,
including powders, liquids, chewable tablets, jellies, tea bags, capsules, and gummies, catering to diverse consumer preferences. | |
| 
| 
Produced using natural,
effective, and proprietary standardized extracts, along with scientifically proven ingredients, ensuring safety and efficacy. | |
Through
continuous research and innovation, we are committed to delivering high-quality functional food solutions that support a healthier lifestyle.
| 5 | |
| | |
**Skincare
Products**
Skincare
products are essential in meeting the growing demand for beauty solutions, offering practices that enhance skin integrity, improve conditions,
and elevate overall appearance.
| 
| 
Formulated with effective,
naturally derived, and scientifically proven ingredients to deliver beautifying benefits while ensuring safety. | |
| 
| 
Made with carefully selected
ingredients, free from banned substances, heavy metals, and allergens. | |
| 
| 
Developed by an experienced
R&D team dedicated to innovation, quality, and efficacy. | |
| 
| 
Available in various forms,
including serums, toners, cleansers, essences, creams, facial masks, gels, and lotions, catering to diverse skincare needs. | |
Through
our commitment to research and development, we strive to provide high-quality skincare solutions that promote healthier, more radiant
skin.
**Personal
Care Products**
Driven
by the philosophy of equality of life, we have expanded into the pet-care sector with a mission to enhance the well-being and quality
of life of cherished pets. Our product range includes specialized offerings, such as pet shampoos, meticulously crafted to support hygiene,
grooming, and beautification.
| 
| 
Customized to meet the
specific needs of pets, ensuring they are mild and gentle on sensitive animal skin, which differs significantly from human skin. | |
| 
| 
Designed to effectively
address health issues, improve skin and coat conditions, and promote overall pet wellness. | |
| 
| 
Combining innovation, expertise,
and care to deliver comprehensive solutions that enhance the health, happiness, and vitality of pets. | |
Through
our commitment to quality and innovation, we strive to provide pet owners with trusted products that reflect our dedication to the holistic
well-being of their beloved companions.
**Pet
Wellness Supplement**
Pet
health supplements are carefully formulated to provide essential nutrients, support vital bodily functions, and promote the overall well-being
of companion animals. Designed to complement pets daily diets, these supplements help address specific health needs and enhance
their quality of life.
| 
| 
Deliver a balanced blend
of vitamins, minerals, and bioactive compounds to support overall health and optimize bodily functions in pets. | |
| 
| 
Enhance skin health, joint
mobility, and immune function, while addressing specific needs such as energy, digestion, and coat vitality. | |
| 
| 
Developed using scientifically
validated ingredients, free from harmful additives, and tailored to ensure safety, efficacy, and optimal nutrient absorption for
pets. | |
One
of our latest innovations is a comprehensive pet wellness supplement, specifically designed to support skin, joint, and immune health.
This product combines a synergistic blend of key ingredients, scientifically recognized for their beneficial effects in these critical
areas of pet health. Through this and other advancements, we remain committed to improving the quality of life for pets and their families.
| 6 | |
| | |
**Health
Supplements**
Health
supplements are meticulously formulated to deliver essential nutrients, support vital bodily functions, and promote overall well-being.
Designed to complement daily diets, these supplements help bridge nutritional gaps and target specific health concerns.
| 
| 
Provide a rich blend of
vitamins, minerals, and bioactive compounds to support overall health and optimize bodily functions. | |
| 
| 
Enhance immunity, digestion,
cognitive function, and heart health, while addressing specific needs such as energy boost, joint support, and skin vitality. | |
| 
| 
Developed using scientifically
validated ingredients, free from harmful additives, and available in various forms to ensure safety, efficacy, and optimal nutrient
absorption. | |
Our
commitment to quality and innovation ensures that our health supplements meet the highest standards, empowering individuals to achieve
their wellness goals.
**Natural
Products / Traditional Medicines**
Traditional
medicines and natural products have been used for centuries across cultures to promote healing, balance, and overall well-being. Rooted
in ancient wisdom and holistic practices, these remedies harness the power of nature to support the bodys innate ability to heal
and thrive. Carefully crafted from plant-based ingredients, herbs, and natural compounds, they offer a gentle yet effective approach
to health and wellness.
| 
| 
Provide a harmonious blend
of herbs, roots, and natural extracts to restore balance, enhance vitality, and support the bodys natural healing processes. | |
| 
| 
Promote holistic health
by addressing physical, mental, and emotional well-being, with benefits such as improved energy, stress relief, immune support, and
digestive harmony. | |
| 
| 
Formulated based on time-tested
traditions and modern scientific research, free from synthetic additives, and available in various forms like teas, tinctures, capsules,
and powders for ease of use and absorption. | |
Whether
used for preventive care or to address specific health concerns, traditional medicines and natural products offer a connection to natures
healing power, fostering wellness in a sustainable and holistic way.
**Meal
Replacement & Complete Nutrition**
****
We have expanded into the meal replacement and complete nutrition segment, reflecting our commitment to innovation and portfolio growth.
These products are thoughtfully formulated to deliver balanced macronutrients and essential micronutrients in convenient formats, supporting
modern lifestyles and overall well-being.
| 
| 
Balanced Nutrition: Formulated
with high-quality proteins, complex carbohydrates, healthy fats, dietary fiber, vitamins, and minerals to provide complete and sustained
nourishment. | |
| 
| 
Functional Benefits: Enriched
with probiotics, prebiotics, plant extracts, and bioactive compounds to support digestive health, immunity, energy levels, and elderly
nutrition etc. | |
| 
| 
Expert Development: Created
by experienced dietitian to ensure optimal nutrient bioavailability, safety, and efficacy. | |
This
expansion represents a strategic initiative to deliver professionally targeted, scientifically formulated, and sustainable nutrition
solutions that meet the requirements of healthcare providers, corporate wellness programs, and other professional clients.
**Trademark**
The
Company owned several trademark registers under its subsidiaries in respective jurisdiction of which the subsidiary is operates.
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Cambodia | |
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Malaysia | |
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Singapore | |
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China | |
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Hong Kong | |
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India | |
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Myanmar | |
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Vietnam | |
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EUIPO | |
****
| 7 | |
| | |
****
**Future
Plan**
**Marketing
Campaign & Publicity**
The
company is actively expanding its market presence in the beauty and health industries, both locally and internationally. To accelerate
growth, we continuously enhance our marketing efforts through targeted social media campaigns and established e-commerce platforms, increasing
product visibility and strengthening brand awareness. Recognizing the growing influence of digital engagement, management has made social
media a key component of our marketing strategy. By leveraging the extensive networks we have built since our inception, our outreach
efforts have become increasingly efficient and impactful, allowing us to connect directly with customers, gather valuable feedback, and
continuously enhance our offerings. This direct engagement has fueled exponential growth in our customer base, strengthening our brand
image and market position.
Looking
ahead, our marketing and publicity strategies will focus on:
| 
| 
| 
Collaborating with leading
biotech and life sciences partners to reinforce our competitive edge. | |
| 
| 
| 
Partnering with innovative
retail technology providers to drive sales and broaden market exposure. | |
| 
| 
| 
Offering comprehensive
biotechnology, nutraceuticals, and skincare solutions, including turnkey private label manufacturing services. | |
| 
| 
| 
Aiming for a 100% increase
in social media engagement compared to last year by the end of 2026 through targeted campaigns, influencer collaborations, and interactive
content strategies. | |
| 
| 
| 
Planning to participate
in at least one major international trade shows (e.g., Vitafoods Asia) by the end of 2026 as part of our global expansion strategy,
enhancing brand visibility and fostering strategic partnerships. | |
Building
on our success in Chinese trade shows, we have effectively showcased our products to a global audience, unlocking new growth opportunities.
As we continue our expansion, we are excited to extend our reach by participating in trade shows in Thailand, further strengthening our
industry presence and fostering valuable collaborations. Moving forward, we remain committed to expanding our reach and deepening customer
relationships through strategic digital engagement, driving sustainable growth and establishing ourselves as a global leader in the beauty
and health industries.
**Human
Resources & Talent Development**
Strengthening
our workforce is essential to achieving our future goals. We are committed to investing in human resources and talent development across
key areas, including internal administration, operations, sales and marketing, accounting and finance, and top management. With strong
teams already in place for R&D, product development, operations, and sales, as well as a recently expanded accounts department, we
are well-positioned for the next phase of growth. By expanding our talent pool, we aim to enhance our capabilities, drive innovation,
and accelerate our progress toward long-term success. DSwiss is committed to talent acquisition, employee development, and strategic
partnerships to strengthen our workforce and capabilities to support our expansion. Our key objectives include expanding our workforce
by 50% by the end of 2026 and hiring specialists in R&D biotechnology and digital marketing to support our growth initiatives. We
also plan to establish internship partnerships with at least three top universities in Malaysia, such as Taylors University, Monash University,
and other universities in Malaysia, by 2026 to foster talent development and industry collaboration.
**Merger
& Acquisition**
The
Company is actively pursuing strategic mergers and acquisitions to drive growth and unlock synergies across key sectors, including healthcare,
biotechnology, beauty and slimming, wellness, food science, and related industries. By complementing organic growth with targeted acquisitions,
we aim to accelerate innovation, expand our market reach, and enhance value creation for shareholders, employees, and partners. With
a forward-thinking approach, we are committed to seizing new opportunities that align with our vision for long-term success and industry
leadership. Furthermore, our M&A strategy is designed to support companies facing challenges in their supply chain and R&D investment.
By acquiring or partnering with firms that struggle with procurement inefficiencies, limited supplier networks, or outdated research
capabilities, DSwiss can leverage its expertise to optimize their operations, enhance technological innovation, and drive overall industry
progress. With a forward-thinking approach, we are committed to seizing new opportunities that align with our vision for long-term success
and industry leadership.
| 8 | |
| | |
**Competition**
The
beauty and healthcare industries are dynamic and rapidly evolving, presenting exciting opportunities for growth and innovation. To strengthen
our market position, we are leveraging the experience, knowledge, and expertise of our dedicated team while maintaining our commitment
to delivering exceptional customer service. Additionally, we are strategically expanding into functional medicine and homeopathic supplements
to meet the growing demand in the complementary and integrative health markets. By embracing innovation and staying attuned to industry
trends, we are well-positioned to drive sustainable growth and enhance our market presence.
**Customers**
For
the year ended December 31, 2025, the Company has generated $2,920,986 revenue from clients under the ordinary course of business of
the Company. The revenue mainly represented OEM/ODM sales of Nutraceutical / Skincare and Medical Consumable Supplies to clients.
**Employees**
As
of December 31, 2025, the Company has thirty (30) full-time employees, including Mr. Leong Ming Chia who serves as our Chief Executive
Officer, Director, Secretary, and Treasurer. He works full-time and has the flexibility to dedicate up to 70 hours per week to the business,
with a willingness to commit additional time as needed.
Currently,
we do not offer pension plans, health insurance, annuities, stock options, profit sharing, or similar benefits. However, we may consider
implementing such plans in the future. At this time, no personal benefits are provided to our officers, directors, or employees.
**Government
Regulation**
We
are subject to the laws and regulations of the jurisdictions in which we operate, which may include business licensing requirements,
income taxes and payroll taxes. In general, the development and operation of our business is not subject to special regulatory and supervisory
requirements.
| 9 | |
| | |
**ITEM
1A. RISK FACTORS**
We
are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information
under this item.
**ITEM
1B. UNRESOLVED STAFF COMMENTS**
We
are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information
under this item.
**ITEM
1C. CYBERSECURITY**
**Risk
management and strategy**
DSwiss,
Inc. acknowledges the crucial necessity of establishing, executing, and sustaining strong cybersecurity measures to secure our information
systems. This is undertaken to uphold the confidentiality, integrity, and accessibility of our data.
We
plan to strategically incorporate cybersecurity risk management into all our comprehensive risk management framework, fostering a corporate
culture that prioritizes cybersecurity at all levels. This integration shall be done in stages so as to guarantee that cybersecurity
factors are ingrained in our decision-making processes throughout the organization. We plan to incorporate a risk management team to
collaborate closely with the IT department, consistently assessing and mitigating cybersecurity risks in alignment with our business
goals and operational requirements.
We
recognize the intricate and ever-changing nature of cybersecurity threats. To address this, we shall collaborate with external experts,
including cybersecurity assessors, consultants, and auditors. This cooperation shall involve regular audits, threat assessments, and
consultations to enhance our security measures. These efforts ensure that our cybersecurity strategies adhere to industry best practices
and remain effective in safeguarding our systems.
Understanding
the potential risks associated with third-party service providers, we shall implemented stringent processes to oversee and manage these
concerns. We shall conduct thorough security assessments before engaging with any third-party provider and maintain ongoing monitoring
to ensure compliance with our cybersecurity standards. This involves quarterly assessments by our management and continuous evaluations
by our security engineers. This approach is designed to mitigate the risks of data breaches or other security incidents originating from
third-party sources.
We
have not encountered cybersecurity issues that have significantly impacted our operational performance or financial status.
**Governance**
The
Board of Directors is fully aware of the vital importance of managing cybersecurity risks. To ensure effective governance in handling
these risks, the Board shall implement a strong oversight mechanisms. This reflects our understanding of the significant impact these
threats can have on operational integrity and stakeholder confidence.
Our
Board of Directors is tasked with overseeing data privacy and cybersecurity risks. They regularly review the Companys cybersecurity
program with management, evaluating the adequacy of controls and security for our information technology systems. Additionally, they
assess the Companys response plan in case of a security breach affecting these systems. Annually, the Board of Directors receives
updates on potential cybersecurity incidents, data privacy, and compliance programs, engaging in active discussions with management on
cybersecurity risks.
| 10 | |
| | |
**ITEM
2. PROPERTIES**
Our
principal executive office is located at No. B-10-08, Vertical Business Suite, Bangsar South City, No. 8 Jalan Kerinchi, 59200 Kuala
Lumpur, Malaysia. This location has been rented by DSwiss Sdn Bhd for a 36-month period from
March 1, 2025 to February 28, 2028, for an initial deposit of MYR 48,000 (approximately $11,827) and additional monthly payments in
the amount of MYR 12,000 (approximately $2,814) over the course of the lease. The office lease is ending on February 28,
2028.
In
December 2021, the Company obtained a loan in the principal amount of MYR180,000 (approximately $43,134) from Public Bank Berhad, a financial
institution in Malaysia, to finance the acquisition of a motor vehicle. The loan bears interest at the base lending rate less 3.89% per
annum, is payable in 60 monthly instalments of MYR3,306 (approximately $792) each and matures in November 2026.
As
of December 31, 2025, the Company has an outstanding loan to be settle for aforementioned acquisition of motor vehicle of MYR36,366 (approximately
$8,960), to be settled in 11 instalments after year 2025.
In
December 2024, the Company had obtained another loan financing in the principal amount of MYR387,000 (approximately $86,568) from Hong
Leong Bank Berhad, a financial institution in Malaysia, to finance the acquisition of a motor vehicle. The loan bears interest at the
base lending rate less 2.74% per annum, is payable in 60 monthly instalments of MYR7,334 (approximately $1,641) each and matures in November
2029.
As
of December 31, 2025, the Company has an outstanding loan to be settle for aforementioned acquisition of motor vehicle of MYR344,677 (approximately $84,927), of which MYR88,008 (approximately $21,685)
to be settled in 12 instalments in year 2026 and MYR256,669 (approximately $63,242) to be settled in 35 instalments after year 2026.
In
August 2025, the Company had further obtained a loan financing in the principal amount of MYR180,000 (approximately $44,351) from Public
Bank Berhad, a financial institution in Malaysia, to finance the acquisition of a motor vehicle. The loan bears interest at the base
lending rate less 2.28% per annum, is payable in 60 monthly instalments of MYR3,342 (approximately $823) each and matures in July 2030.
As
of December 31, 2025, the Company has an outstanding loan to be settle for aforementioned acquisition of motor vehicle of MYR183,810 (approximately $45,290), of which MYR40,104 (approximately $9,881)
to be settled in 12 instalments in year 2026 and MYR143,706 (approximately $35,408) to be settled in 43 instalments after year 2026.
Loan
acquired for the acquisition of motor vehicles mentioned above are denominated in MYR, of which subjected to the fluctuation in reporting
currency.
**ITEM
3. LEGAL PROCEEDINGS**
From
time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. Litigation
is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business.
There are currently no pending legal proceedings or claims that we believe will have a material adverse effect on our business, financial
condition or operating results. None of our directors, officers or affiliates is involved in a proceeding adverse to our business or
has a material interest adverse to our business.
**ITEM
4. MINE SAFETY DISCLOSURES**
Not
applicable.
**PART
II**
**ITEM
5. MARKET FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES**
Our
common stock is currently quoted on the OTCID under the trading symbol DQWS.
We
believe that there is no established public trading market for our shares and we cannot assure you that there will be any liquidity for
shares of our common stock in the future and such quotation reflect inter-dealer prices, without retail mark-up, mark-down or commission
and may not necessarily represent actual transactions.
For
the periods indicated, the following table sets forth the high and low bid prices per share of common stock based on inter-dealer prices,
without retail mark-up, mark-down or commission and may not represent actual transactions.
| 11 | |
| | |
| 
Fiscal Year 2025 | | 
Highest Bid | | | 
Lowest Bid | | |
| 
First Quarter | | 
$ | 0.09 | | | 
$ | 0.01 | | |
| 
Second Quarter | | 
$ | 0.09 | | | 
$ | 0.02 | | |
| 
Third Quarter | | 
$ | 0.10 | | | 
$ | 0.02 | | |
| 
Fourth Quarter | | 
$ | 0.04 | | | 
$ | 0.03 | | |
**Holders**
As
of December 31, 2025, we had 206,904,585 shares of our Common Stock par value, $.0001 issued and outstanding. There were 430 beneficial
owners of our Common Stock.
**Transfer
Agent and Registrar**
The
transfer agent for our capital stock is VStock Transfer, LLC, with an address at 18, Lafayette Place, Woodmere, New York 11598 and telephone
number is +1 (212)828-8436.
**Penny
Stock Regulations**
The
Securities and Exchange Commission has adopted regulations which generally define penny stock to be an equity security
that has a market price of less than $5.00 per share. Our Common Stock, when and if a trading market develops, may fall within the definition
of penny stock and be subject to rules that impose additional sales practice requirements on broker-dealers who sell such securities
to persons other than established customers and accredited investors (generally those with assets in excess of $1,000,000, or annual
incomes exceeding $200,000 individually, or $300,000, together with their spouse).
For
transactions covered by these rules, the broker-dealer must make a special suitability determination for the purchase of such securities
and have received the purchasers prior written consent to the transaction. Additionally, for any transaction, other than exempt
transactions, involving a penny stock, the rules require the delivery, prior to the transaction, of a risk disclosure document mandated
by the Securities and Exchange Commission relating to the penny stock market. The broker-dealer also must disclose the commissions payable
to both the broker-dealer and the registered representative, current quotations for the securities and, if the broker-dealer is the sole
market-maker, the broker-dealer must disclose this fact and the broker-dealers presumed control over the market. Finally, monthly
statements must be sent disclosing recent price information for the penny stock held in the account and information on the limited market
in penny stocks. Consequently, the penny stock rules may restrict the ability of broker-dealers to sell our Common Stock
and may affect the ability of investors to sell their Common Stock in the secondary market.
In
addition to the penny stock rules promulgated by the Securities and Exchange Commission, the Financial Industry Regulatory
Authority (FINRA) has adopted rules that require that in recommending an investment to a customer, a broker-dealer must
have reasonable grounds for believing that the investment is suitable for that customer. Prior to recommending speculative low-priced
securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customers
financial status, tax status, investment objectives and other information. Under interpretations of these rules, FINRA believes that
there is a high probability that speculative low-priced securities will not be suitable for at least some customers. The FINRA requirements
make it more difficult for broker-dealers to recommend that their customers buy our common stock, which may limit the investors
ability to buy and sell our stock.
**Dividend
Policy**
Any
future determination as to the declaration and payment of dividends on shares of our Common Stock will be made at the discretion of our
board of directors out of funds legally available for such purpose. We are under no contractual obligations or restrictions to declare
or pay dividends on our shares of Common Stock. In addition, we currently have no plans to pay such dividends. Our board of directors
currently intends to retain all earnings for use in the business for the foreseeable future.
**Equity
Compensation Plan Information**
Currently,
there is no equity compensation plan in place.
| 12 | |
| | |
**Unregistered
Sales of Equity Securities**
Currently,
there is no unregistered sales of equity securities.
**Purchases
of Equity Securities by the Registrant and Affiliated Purchasers**
We
have not repurchased any shares of our common stock during the fiscal year ended December 31, 2025.
**ITEM
6. SELECTED FINANCIAL DATA**
We
are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information
under this item.
**ITEM
7. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**
*The
following discussion of our financial condition and results of operations should be read in conjunction with our audited consolidated
financial statements and the notes to those financial statements appearing elsewhere in this Report.*
*Certain
statements in this Report constitute forward-looking statements. These forward-looking statements include statements, which involve risks
and uncertainties, regarding, among other things, (a) our projected sales, profitability, and cash flows, (b) our growth strategy, (c)
anticipated trends in our industry, (d) our future financing plans, and (e) our anticipated needs for, and use of, working capital. They
are generally identifiable by use of the words may, will, should, anticipate,
estimate, plan, potential, project, continuing, ongoing,
expects, management believes, we believe, we intend, or the negative of these
words or other variations on these words or comparable terminology. In light of these risks and uncertainties, there can be no assurance
that the forward-looking statements contained in this filing will in fact occur. You should not place undue reliance on these forward-looking
statements.*
*The
forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities
laws, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date on which
the statements are made or to reflect the occurrence of unanticipated events.*
Overview
DSwiss,
Inc. (the Company), a Nevada corporation was incorporated under the laws of the State of Nevada on May 28, 2015. DSwiss
Holding Limited owns 100% of DSwiss (HK) Limited, a Hong Kong Company, which owns 100% of DSwiss Sdn Bhd, the operating Malaysia Company
of which is described below. In 2016, DSwiss (HK) Limited invested in DSwiss Biotech Sdn Bhd, incorporated in Malaysia, and owned 40%
equity interest. We have incorporated a new company namely DSwiss International Trading (Shenzhen) Limited in China, with 100% equity
interest owned by DSwiss (HK) Limited. On November 9, 2020, DSwiss International Trading (Shenzhen) Limited was officially deregistered.
On January 18, 2023, DSwiss (HK) Limited acquired 150,000 shares, representing 60% equity interest
in DSwiss Biotech Sdn. Bhd., from the other party with consideration of RM 1. After such acquisition, DSwiss Biotech Sdn. Bhd. became
a wholly owned subsidiary of DSwiss (HK) Limited.
Our
Company is a beauty supply company formed with the goal of supplying high quality beauty products directly to our clients. Our beauty
supplies include, but are not limited to, beverages to assist in burning and reducing fat, anti-aging creams, and products designed to
improve the overall health and physical appearance of our clients. Currently we supply our products in Malaysia, Singapore, Indonesia,
Hong Kong and China. However, we have intentions to expand to Myanmar, Macau, Vietnam and Cambodia, and subsequent to that we will make
efforts to expand throughout the world a premier biotech-nutraceutical company, supplying high-quality health and beauty products, including
beverages to assist in weight management, anti-aging creams, and products designed to improve the overall health system in our body.
At
this time, we operate exclusively online through our website: http://www.dswissbeauty.com/
Our
Company continuously strives to improve the already high standard of our goods and services through ongoing research and market development.
We are going to penetrate into South East Asia markets through the recruitment of distributors and via the social media like Facebook
and Instagram. We foresee to spend a substantial amount in marketing and advertising in the coming year. At DSwiss we are determined
to bring new products to markets that we have not yet explored.
| 13 | |
| | |
Products
which meet the definition of a functional food and cosmetics related products need to be registered or notified with the Drug Control
Authority (DCA), Ministry of Health Malaysia. Manufacturing, marketing, importation and the sale of unregistered products is a violation
of the Drug Control Regulations and Cosmetics Act 1984 of Malaysia and enforcement action can be taken.
At
DSwiss, research and development is an ongoing effort whose purpose is to ensure our products on the forefront of quality and effectiveness.
Equipped with state-of-the-art machinery, our innovative research and development team are constantly exploring on new development and
product lines that will enable us to provide the highest quality standard and remain competitive in the industry.
DSwisss
products are certified and approved by the Ministry of Health (MOH) Malaysia. Due to the stringent requirements from MOH
Malaysia, we strive to upkeep the highest possible standard in our products to provide assurance and as a prove of our continuing commitment
to providing quality products.
We
always strive to offer products as high quality as possible, and hope that this assurance from an esteemed regulatory body will also
serve to prove our continuing commitment to providing quality goods.
DSwiss
have own brand Quantum Resonant Magnetic Analyzer which is DSwiss Quantum Resonant Magnetic Analyzer. DSwiss Quantum Resonant Magnetic
Analyzer is a Hi-tech innovation project, which is related to medical, bio-informatics, electronic engineering, etc. It is based on quantum
medical, and scientifically analyzes the human cells weak magnetic field collected by advanced electronic device. The analyzer
can work out the customers health situation and main problem. According to the checking result, the analyzer can figure out the
reasonable treatment recommendation. The quantum resonant magnetic analyzer is the individualized guide of comprehensive healthy consulting
and updated healthy sciences, and its characteristics and advantages are comprehensive, non-invasive, practical, simple, quick, economical
and easy to popularize. We can see DSwiss Quantum Resonant Magnetic Analyzer can help our customers to more concern about their health
and skin condition.
Our
expected growth is planned to occur primarily through the implementation of our social media marketing strategy. DSwiss already has a
strong relationship with social media (eg. Facebook, Instagram and Wechat). The global presence social media has helped provide to us
has been an invaluable resource, and as we continue to expand our business operations and spread our brand awareness, we intend to primarily
utilize social media to reach our customers. The benefits of social media are countless, but perhaps the most imperative to our future
success is our ability to connect with customers directly, to receive their feedback almost instantaneously. On that note, the feedback
we have received from our clients has been overwhelmingly positive, which has helped us to create a robust brand image.
While
DSwiss has been focused almost exclusively upon pursuing operations within Asia, we do have plans to expand outward and become a household
name across the world. Our strategy to do so going forward is by forming partnerships with local companies in various countries that
may be willing to stock our products or promote them to their own customers. We believe that by forging strategic relationships and partnerships
we can expand our operations across the globe at a greater pace and with greater certainty than we would if we tried to expand on our
own.
Results
of Operations
Revenues
for the year ended December 31, 2025 and 2024
The
Company generated revenue of $2,920,986 and $3,112,887 for the year ended December 31, 2025 and 2024 respectively. Revenue has decreased
by $191,901 which is a 6.16% decrease comparatively. The revenue mainly represented OEM/ODM sales of Nutraceutical and Skincare Supplies
to the customers.
Cost
of Revenue and Gross Margin
Cost
of revenue for the Company year ended December 31, 2025, amounted to $2,356,424 as compared to $2,489,616 for the year ended December
31, 2024. The decrease of $133,192 in cost of revenue was in line with the decrease in revenue. As a result, the gross profit has decreased
from $623,271 for the year ended December 31, 2024 to $564,562 for the year ended December 31, 2025.
| 14 | |
| | |
Gross
margin of the Company has decreased from 20.02% in year ended December 31, 2024 to 19.33% in year ended December 31, 2025, which is a
net decrease of 0.69%.
Cost
of revenue comprise of freight-in, cost of goods purchased and packing material cost.
Operating
Expenses
Selling,
general and administrative expenses for the year ended December 31, 2025 and 2024 amounted to $630,645 and $603,720 respectively, the
increase of $26,925 which is 4.46% higher comparatively.
Operating
expenses for the year ended December 31, 2025 and 2024 amounted to $1,167 and $1,203 respectively, the decrease of $36 which is 2.99
% lower comparatively.
Other
Income
The
Company recorded an amount of $40,175 and $13,300 as other income for the year ended December 31, 2025 and 2024 respectively. This income
is derived from the gain on disposal of plant and equipment, interest income earned and
exchange gain.
Net
(Loss)/ Profit and Net (Loss)/ Profit Margin
Net
loss for the year ended December 31, 2025 was $76,860 as compared to net profit for the year ended December 31, 2024 was $22,223. The
decrease in net profit of $99,083 was resulted from the decrease in revenue. Taking into the loss for the year ended December 31, 2025,
the accumulated loss for the Company has increased from $1,387,930 to $1,464,790.
Liquidity
and Capital Resources
As
of December 31, 2025, we had working capital deficit of $133,691 consisting of cash and cash equivalent of $285,034 as compared to working
capital surplus of $13,645 and our cash and cash equivalent of $397,476 as of December 31, 2024.
Net
cash used in operating activities for the year ended December 31, 2025 was $94,303 as compared to net cash generated from operating activities
of $182,556 for the year ended December 31, 2024. The decrease in cash generated from operating activities are mainly resulted from the
decrease in accounts payable, other payables and accrued liabilities.
Net
cash used in investing activities for the year ended December 31, 2025 was $8,482 as compared to net cash used in investing activities for
the year ended December 31, 2024 were $105,258. The cash used in investing activities are mainly for purchase of plant and equipment.
Net
cash used in financing activities for the year ended December 31, 2025 was $34,728 as compared to net cash generated from financing activities
$68,306 for the year ended December 31, 2024. The net cash (used in)/ generated from financing activities are mainly for the addition and
repayment of finance lease.
The
revenues generated from our current business operations alone was sufficient to fund our operations or planned growth. However, we will
consider acquiring additional funding to continue to operate our business, and to further expand our business. Sources of additional
capital through various financing transactions or arrangements with third parties may include equity or debt financing, bank loans or
revolving credit facilities. We may not be successful in locating suitable financing transactions in the time period required or at all,
and we may not obtain the capital we require by other means. Our inability to raise additional funds when required may have a negative
impact on our operations, business development and financial results.
| 15 | |
| | |
Critical
Accounting Policies and Estimates
**Use
of estimates**
****
In
preparing our Consolidated Financial Statements in accordance with generally accepted accounting principles in the United States (GAAP)
and pursuant to the rules and regulations of the SEC, we make assumptions, judgments and estimates that affect the reported amounts of
assets, liabilities, revenue and expenses, and related disclosures of contingent assets and liabilities. We base our assumptions, judgments
and estimates on historical experience and various other factors that we believe to be reasonable under the circumstances. Actual results
could differ materially from these estimates under different assumptions or conditions. We evaluate our assumptions, judgments and estimates
on a regular basis. We also discuss our critical accounting policies and estimates with the Board of Director.
We
believe that the assumptions, judgments and estimates involved in the accounting for leases, revenue recognition and expected credit
loss have the greatest potential impact on our Consolidated Financial Statements. These areas are key components of our results of operations
and are based on complex rules requiring us to make judgments and estimates, and consequently, we consider these to be our critical accounting
policies. Historically, our assumptions, judgments and estimates relative to our critical accounting policies have not differed materially
from actual results.
**Leases**
The
Company determines if an arrangement is a lease at inception. Operating leases are included in operating in operating lease right-of-use
(ROU) as assets, operating lease non-current liabilities, and operating lease current liabilities in our consolidated balance
sheet. Finance leases are property and equipment, other current liabilities, and other non-current liabilities in the consolidated balance
sheet.
The
Company applies significant judgement in accounting for its leases and determining the related right-of-use assets (ROUA) and lease liabilities.
Key judgements include:
| 
| 
1. | 
Lease
term The Company assesses the period for which the Company is reasonably certain to exercise renewal or termination options,
including consideration of operational needs and business plans. | |
| 
| 
2. | 
Discount
rate In determining the present value of lease payments, management selects an appropriate discount rate, reflecting
the rate implicit in the lease, or if not readily determinable, the Companys incremental borrowing rate. | |
| 
| 
3. | 
Lease
classification Management evaluates whether each lease should be classified as a finance or operating lease based on
the lease terms and conditions. | |
| 16 | |
| | |
**Revenue
Recognition**
****
In
accordance with the Accounting Standard Codification Topic 606 Revenue Recognition (ASC 606), the Company
recognizes revenue when the following four criteria are met: (1) delivery has occurred or services rendered; (2) persuasive evidence
of an arrangement exists; (3) there are no continuing obligations to the customer; and (4) the collection of related accounts receivable
is probable.
The
Companys revenue is primarily derived from the sale of healthcare goods and the services.
*Sale
of goods (retail trading)*
Revenue
from the sale of goods is recognized when control of the goods is transferred to the customer, which generally occurs at a point in time
when the customer collects the products from the Companys premises. At that point, the customer has the ability to direct the
use of, and obtain substantially all of the remaining benefits from, the goods, and the Company has no remaining performance obligations.
The
Company applies significant judgement in determining whether it acts as a principal or an agent in its revenue arrangements. *(Refer
to the principal vs agent paragraph below)*
**
The
Company has assessed that it acts as a principal in the sale of goods, as it obtains control of the goods before they are transferred
to the customer. Indicators supporting this assessment include that the Company is primarily responsible for fulfilling the promise to
provide the goods, has discretion in establishing selling prices, and bears inventory and credit risks.
*Rendering
of services (healthcare services)*
**
Revenue
from healthcare services is recognized over time as the customer simultaneously receives and consumes the benefits provided by the Companys
performance. The Companys performance obligation is to perform the agreed-upon services as specified in the signed purchase order.
Revenue
is recognised as the services are performed. The Company applies judgement in determining whether performance obligations are satisfied
over time, assessing the appropriate method to measure progress, and evaluating when sampling and testing procedures are substantially
completed. The Company also considers the impact of any variable consideration, such as discounts or rebates, in determining the transaction
price.
| 17 | |
| | |
*Principal
vs Agent*
The
Company evaluates whether it acts as a principal or an agent in transactions involving non-exclusive distributor arrangements.
The
Company is considered a principal when it controls the specified goods before they are transferred to the customer. In making this assessment,
the Company considers indicators including, but not limited to:
| 
| The
Company is primarily responsible for fulfilling the promise to provide goods to the customer | |
| 
| The
Company has inventory risk, including bearing the loss if goods are missing or damaged during
delivery | |
| 
| The
Company has discretion in establishing prices | |
Although
the supplier may ship goods directly to the customer (drop shipment arrangement), the Company retains control of the goods prior to transfer
due to its exposure to inventory risk and pricing discretion. Accordingly, revenue is recognized on a gross basis.
**Expected
credit loss**
****
The
Company assesses expected credit losses (ECL) on its financial assets, including trade receivables and amounts owing from
related parties, in accordance with the applicable credit loss model. The determination of expected credit loss requires the company
to assess the timing and extent of recoverability of receivables and the relevance of forward-looking information The assessments involve
significant judgement and estimation in evaluating credit risk and the probability of default.
As
of the reporting date, no material allowance for expected credit losses has been recognized. This is primarily due to:
| 
| Trade
receivables are largely secured by advance payments, reducing the Companys exposure
to credit risk | |
| 
| Outstanding
balances have been substantially collected after year-end, indicating strong recoverability | |
| 
| Amounts
owing from related parties are eliminated upon consolidation, and therefore do not give rise
to credit risk at the consolidated financial statement level | |
Based
on the above factors, management has assessed that the risk of default is minimal and that any potential credit losses are not material.
****
**Recent
accounting pronouncements**
****
The
Company has reviewed all recently issued, but not yet effective, considers the applicability and impact of all accounting standards updates
(ASUs). Management periodically reviews new accounting standards that are issued.
| 18 | |
| | |
In
November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses. The new standard requires entities to disclose
additional information about certain expenses, such as purchases of inventory, employee compensation, depreciation, intangible asset
amortization, as well as selling expenses included in commonly presented expense captions on the income statement. The FASB further clarified
the effective date in January 2025 with the issuance of ASU 2025-01, Income Statement Reporting Comprehensive Income 
Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. The ASU is effective for fiscal years beginning
after December 15, 2026, and interim periods beginning after December 15, 2027. Companies have the option to apply this guidance either
on a retrospective or prospective basis, and early adoption is permitted.
In
July 2025, the FASB issued ASU 2025-05, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts
Receivable and Contract Assets. The amendments in the ASU provide (1) all entities with a practical expedient and (2) entities other
than public business entities (PBEs) with an accounting policy election when estimating expected credit losses for current accounts receivable
and current contract assets arising from transactions accounted for under ASC 606. The ASU is effective for fiscal years and interim
periods beginning after December 15, 2025. Companies should apply this guidance on a prospective basis, and early adoption is permitted.
The
Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have
a significant impact on the Companys financial statements.
**ITEM
7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**
We
are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information
under this item.
**ITEM
8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA**
The
financial statements required by this item are located in PART IV of this Annual Report.
| 19 | |
| | |
**ITEM
9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE**
None.
**ITEM
9A. CONTROLS AND PROCEDURES**
Disclosures
Control and Procedures
Our
management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over
financial reporting is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Exchange Act as a process designed by, or under the
supervision of, the companys principal executive and principal financial officers and effected by the companys board of
directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America
and includes those policies and procedures that:
| 
| 
| 
Pertain to the maintenance
of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company; | |
| 
| 
| 
| |
| 
| 
| 
Provide reasonable assurance
that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America and that receipts and expenditures of the company are being made only in accordance
with authorizations of management and directors of the company; and | |
| 
| 
| 
| |
| 
| 
| 
Provide reasonable assurance
regarding prevention or timely detection of unauthorized acquisition, use or disposition of the companys assets that could
have a material effect on the financial statements. | |
Because
of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation
of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate. All internal control systems, no matter how well designed,
have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect
to financial statement preparation and presentation. Because of the inherent limitations of internal control, there is a risk that material
misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent
limitations are known features of the financial reporting process. Therefore, it is possible to design into the process safeguards to
reduce, though not eliminate, this risk.
As
of December 31, 2025, management assessed the effectiveness of our internal control over financial reporting based on the criteria for
effective internal control over financial reporting established in Internal ControlIntegrated Framework issued by the Committee
of Sponsoring Organizations of the Treadway Commission (COSO) and SEC guidance on conducting such assessments. Based on
such evaluation, the Companys management concluded that, during the period covered by this Report, internal controls and procedures
over were not effective. This was due to deficiencies that existed in the design or operation of our internal controls over financial
reporting that adversely affected our internal controls and that may be considered to be material weaknesses.
Identified
Material Weakness
A
material weakness in internal control over financial reporting is a control deficiency, or combination of control deficiencies, that
results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected.
Management
identified the following material weakness during its assessment of internal controls over financial reporting as of December 31, 2025.
| 
1. | 
We do not have Written
Policies & Procedures Due to lack of written policies and procedures for accounting and financial reporting with
respect to the requirements and application of both US GAAP and SEC guidelines, the Company did not establish a formal process to
close our books monthly and account for all transactions and thus failed to properly record the Private Placement or disclose such
transactions in its SEC filings in a timely manner. | |
| 
| 
| |
| 
2. | 
We do not have adequate
segregation of duties and effective risk assessment Lack of segregation of duties and effective risk assessment may cause
the Company to face the likelihood of fraud or theft, due to poor oversight, governance and review to detect errors. | |
| 20 | |
| | |
Accordingly,
the Company concluded that these control deficiencies resulted in a reasonable possibility that a material misstatement of the annual
or interim financial statements will not be prevented or detected on a timely basis by the companys internal controls.
As
a result of the material weaknesses described above, management has concluded that the Company did not maintain effective internal control
over financial reporting as of December 31, 2025 based on criteria established in Internal ControlIntegrated Framework issued
by COSO.
Managements
Remediation Initiatives
In
an effort to remediate the identified material weaknesses and other deficiencies and enhance our internal controls, we have initiated,
or plan to initiate, the following series of measures:
| 
1. | 
We plan to create a position
to segregate duties consistent with control objectives and will increase our personnel resources and technical accounting expertise
within the accounting function when funds are available to us. The accounting personnel is responsible for reviewing the financing
activities, facilitate the approval of the financing, record the information regarding the financing, and submit SEC filing related
documents to our legal counsel in order to comply with the filing requirements of SEC. | |
| 
| 
| |
| 
2. | 
We plan to prepare written
policies and procedures for accounting and financial reporting to establish a formal process to close our books monthly on an accrual
basis and account for all transactions, including equity and debt transactions. | |
| 
| 
| |
| 
3. | 
We intend to add staff
members to our management team for making sure that information required to be disclosed in our reports filed and submitted under
the Exchange Act is recorded, processed, summarized and reported as and when required and will the staff members will have segregated
responsibilities with regard to these responsibilities. | |
We
anticipate that these initiatives will be at least partially, if not fully, implemented by the end of fiscal year 2026.
Changes
in internal controls over financial reporting
There
was no change in our internal controls over financial reporting that occurred during the period covered by this Report, which has materially
affected, or is reasonably likely to materially affect, our internal controls over financial reporting:
This
annual report does not include an attestation report of the Companys registered independent public accounting firm regarding internal
control over financial reporting. Managements report was not subject to attestation by the Companys registered independent
public accounting firm pursuant to rules of the Securities and Exchange Commission that permit the Company to provide only managements
report in this Annual Report on Form 10-K.
**ITEM
9B. OTHER INFORMATION**
None.
| 21 | |
| | |
**PART
III**
**ITEM
10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE**
Our
executive officers and directors and their respective ages as of the date hereof are as follows:
| 
NAME | 
| 
AGE | 
| 
POSITION | |
| 
Leong Ming Chia | 
| 
43 | 
| 
Chief Executive Officer,
President, Secretary, Treasurer, Director | |
| 
Wong Sui Ting1 | 
| 
53 | 
| 
Director | |
1Mr.
Wong Sui Ting resigned as Director of the Company on October 1, 2025.
Set
forth below is a brief description of the background and business experience of our executive officer and director for the past five
years.
**Leong
Ming Chia - President, Chief Executive Officer, Chief Financial Officer, Secretary, Treasurer, Director**
Mr.
Leong achieved an Advanced Diploma of Microelectronics & Physics from TAR College in 2003 as well as a Bachelors Degree of
Microelectronics & Physics from Campbell University in 2005. In 2007 Mr. Leong joined Tradenex, which is a subsidiary of the Federation
of Malaysian Manufacturers, as part of their sales and marketing department. Mr Leong was responsible for developing a marketing plan,
overseeing the execution and evaluating the results across B2B, B2C and retail sales channels in order to enable inter-enterprise connectivity,
communication and collaboration along the business value chain. From March 2009 onward Mr. Leong was appointed as a committee member
of Cross Border Business Association in Hong Kong, promoting cross border trade and opportunities. Since January 2012 Mr. Leong joined
DSwiss Sdn Bhd as a Business Development Advisor where Mr Leong developed a set of marketing tool and is bringing the company from traditional
sales model to e-commerce model. In September 2015, Mr. Leong was also appointed as the chief executive officer and director of the Company.
On
May 31, 2017, upon the resignation of Mr. Chua Lee Yee resignation as a Chief Financial Officer, Secretary, Treasurer and Director, Mr.
Leong has taken over the position as a Chief Financial Officer, Secretary and treasurer along with existing position as the Chief Executive
Officer, President and Director.
Mr.
Leongs experience in the marketing and business development have led the Board of Director to reach the conclusion that he should
serve as a Director of the Company.
**Wong
Sui Ting - Director**
Mr.
Wong serves as a Director in the Company. Mr. Wong holds a Bachelor of Business (Accounting) from Monash University since year 1995.
Also, he is an Associate Member of Malaysia Institute of Accountancy (MIA, Chartered Accountant) since 1999 and CPA Australia since 1998.
Mr. Wong co-founded Qinetics Solutions Sdn Bhd in 2000 and acts as Chief Financial Officer since the establishment. He was tasked with
overseeing and managing the overall financial affairs and operations of Qinetics, playing an active role in corporate decisions and strategies.
In 2011, Mr. Wong co-founded and acts as Chief Executive Officer of Forum Digital Sdn Bhd. His responsibility in the company is to oversee
the operation and in charge of business development of the company.
Mr.
Wongs experience in accounting and the financial industry, as well as his knowledge of business development, has led the Board
of director to reach the conclusion that he should serve as the director of the Company. On May 31, 2017, Mr. Wong was appointed as the
director of the Company.
Mr.
Wong resigned as Director of the Company on October 1, 2025.
**Corporate
Governance**
The
Company promotes accountability for adherence to honest and ethical conduct; endeavors to provide full, fair, accurate, timely and understandable
disclosure in reports and documents that the Company files with the Securities and Exchange Commission (the SEC) and in
other public communications made by the Company; and strives to be compliant with applicable governmental laws, rules and regulations.
The Company has not formally adopted a written code of business conduct and ethics that governs the Companys employees, officers
and Directors as the Company is not required to do so.
In
lieu of an Audit Committee, the Companys Board of Directors, is responsible for reviewing and making recommendations concerning
the selection of outside auditors, reviewing the scope, results and effectiveness of the annual audit of the Companys financial
statements and other services provided by the Companys independent public accountants. The Board of Directors, the Chief Executive
Officer and the Chief Financial Officer of the Company review the Companys internal accounting controls, practices and policies.
| 22 | |
| | |
*Committees
of the Board*
Our
Company currently does not have nominating, compensation, or audit committees or committees performing similar functions nor does our
Company have a written nominating, compensation or audit committee charter. Our Directors believes that it is not necessary to have such
committees, at this time, because the Director(s) can adequately perform the functions of such committees.
*Audit
Committee Financial Expert*
Our
Board of Directors has determined that we do not have a board member that qualifies as an audit committee financial expert
as defined in Item 407(D)(5) of Regulation S-K, nor do we have a Board member that qualifies as independent as the term
is used in Item 7(d)(3)(iv)(B) of Schedule 14A under the Securities Exchange Act of 1934, as amended, and as defined by Rule 4200(a)(14)
of the FINRA Rules.
We
believe that our Director(s) are capable of analyzing and evaluating our financial statements and understanding internal controls and
procedures for financial reporting. The Director(s) of our Company does not believe that it is necessary to have an audit committee because
management believes that the Board of Directors can adequately perform the functions of an audit committee. In addition, we believe that
retaining an independent Director who would qualify as an audit committee financial expert would be overly costly and burdensome
and is not warranted in our circumstances given the stage of our development and the fact that we have not generated any positive cash
flows from operations to date.
*Involvement
in Certain Legal Proceedings*
Our
Directors and our Executive officers have not been involved in any of the following events during the past ten years:
| 
1. | 
bankruptcy petition filed
by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or
within two years prior to that time; | |
| 
2. | 
any conviction in a criminal
proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses); | |
| 
3. | 
being subject to any order,
judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily
enjoining, barring, suspending or otherwise limiting his/her involvement in any type of business, securities or banking activities;
or | |
| 
4. | 
being found by a court
of competent jurisdiction (in a civil action), the Commission or the Commodity Futures Trading Commission to have violated a federal
or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated. | |
| 
5. | 
Such person was found by
a court of competent jurisdiction in a civil action or by the Commission to have violated any Federal or State securities law, and
the judgment in such civil action or finding by the Commission has not been subsequently reversed, suspended, or vacated; | |
| 
6. | 
Such person was found by
a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any Federal commodities
law, and the judgment in such civil action or finding by the Commodity Futures Trading Commission has not been subsequently reversed,
suspended or vacated; | |
| 
7. | 
Such person was the subject
of, or a party to, any Federal or State judicial or administrative order, judgment, decree, or finding, not subsequently reversed,
suspended or vacated, relating to an alleged violation of:(i) Any Federal or State securities or commodities law or regulation; or(ii)
Any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent
injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal
or prohibition order; or(iii) Any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity;
or | |
| 
8. | 
Such person was the subject
of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as
defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of
the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary
authority over its members or persons associated with a member. | |
*Code
of Ethics*
We
have not adopted a formal Code of Ethics. The Board of Directors evaluated the business of the Company and the number of employees and
determined that since the business is operated by a small number of persons, general rules of fiduciary duty and federal and state criminal,
business conduct and securities laws are adequate ethical guidelines. In the event our operations, employees and/or Directors expand
in the future, we may take actions to adopt a formal Code of Ethics.
| 23 | |
| | |
*Shareholder
Proposals*
Our
Company does not have any defined policy or procedural requirements for shareholders to submit recommendations or nominations for Directors.
The Board of Directors believes that, given the stage of our development, a specific nominating policy would be premature and of little
assistance until our business operations develop to a more advanced level. Our Company does not currently have any specific or minimum
criteria for the election of nominees to the Board of Directors and we do not have any specific process or procedure for evaluating such
nominees. The Board of Directors will assess all candidates, whether submitted by management or shareholders, and make recommendations
for election or appointment.
A
shareholder who wishes to communicate with our Board of Directors may do so by directing a written request addressed to our President,
at the address appearing on the first page of this Information Statement.
**ITEM
11. EXECUTIVE COMPENSATION**
The
following table sets forth information concerning the compensation of our Chief Executive Officer, and the executive officers who served
at the end of the year ended December 31, 2025, for services rendered in all capacities to us.
**Summary
Compensation Table:**
| 
Name and Principal Position | | 
Period | | | 
Salary ($) | | | 
Bonus ($) | | | 
Stock Awards ($) | | | 
Option Awards ($) | | | 
Non-Equity Incentive Plan Compensation ($) | | | 
Nonqualified Deferred Compensation Earnings ($) | | | 
All Other Compensation ($) | | | 
Total ($) | | |
| 
Leong Ming Chia, Chief Executive Officer, | | 
For the year ended December 31, 2025 | | | 
| 50,648 | | | 
| 33,765 | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| 16,883 | | | 
| 101,296 | | |
| 
President, Secretary, Treasurer, Director (1) | | 
For the year ended December 31, 2024 | | | 
| 47,457 | | | 
| 44,820 | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| 17,229 | | | 
| 109,506 | | |
| 
| | 
| | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Wong Sui Ting, | | 
For the year ended December 31, 2025 | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | |
| 
Director (2) | | 
For the year ended December 31, 2024 | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | |
| 
(1) | 
On September 8, 2015 Leong
Ming Chia was appointed Chief Executive Officer, President and a member of our Board of Directors. On May 31, 2017, upon the resignation
of Chua Lee Yee from the position of Chief Financial Officer, Treasurer, Secretary and Director, Leong Ming Chia replaced Chua Lee
Yee as the Chief Financial Officer, Treasurer and Secretary of the company. | |
| 
(2) | 
On May 31, 2015 Wong Sui
Ting was appointed as a member of our Board of Director. He resigned as Director of the Company on October 1, 2025. | |
| 24 | |
| | |
**Narrative
Disclosure to Summary Compensation Table**
There
are no arrangements or plans in which we provide pension, retirement or similar benefits for directors or executive officers. Our directors
and executive officers may receive stock options at the discretion of our board of directors in the future. We do not have any material
bonus or profit-sharing plans pursuant to which cash or non-cash compensation is or may be paid to our directors or executive officers,
except that stock options may be granted at the discretion of our board of directors from time to time. We have no plans or arrangements
in respect of remuneration received or that may be received by our executive officers to compensate such officers in the event of termination
of employment (as a result of resignation, retirement, change of control) or a change of responsibilities following a change of control.
**Stock
Option Grants**
We
have not granted any stock options to our executive officers since our incorporation.
**Compensation
of Directors**
The
table below summarizes all compensation of our directors as of December 31, 2025.
| 
Name and Principal Position | | 
Period | | | 
Salary ($) | | | 
Bonus ($) | | | 
Stock Awards ($) | | | 
Option Awards ($) | | | 
Non-Equity Incentive Plan Compensation ($) | | | 
Nonqualified Deferred Compensation Earnings ($) | | | 
All Other Compensation ($) | | | 
Total ($) | | |
| 
Leong Ming Chia, Chief Executive Officer, | | 
For the year ended December 31, 2025 | | | 
| 50,648 | | | 
| 33,765 | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| 16,883 | | | 
| 101,296 | | |
| 
President, Secretary, Treasurer, Director (1) | | 
For the year ended December 31, 2024 | | | 
| 47,457 | | | 
| 44,820 | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| 17,229 | | | 
| 109,506 | | |
| 
| | 
| | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Wong Sui Ting, | | 
For the year ended December 31, 2025 | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | |
| 
Director (2) | | 
For the year ended December 31, 2024 | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | |
| 
(1) | 
On September 8, 2015 Leong
Ming Chia was appointed Chief Executive Officer, President and a member of our Board of Directors. On May 31, 2017, upon the resignation
of Chua Lee Yee from the position of Chief Financial Officer, Treasurer, Secretary and Director, Leong Ming Chia replaced Chua Lee
Yee as the Chief Financial Officer, Treasurer and Secretary of the company. | |
| 
(2) | 
On May 31, 2015 Wong Sui
Ting was appointed as a member of our Board of Director. He resigned as Director of the Company on October 1, 2025. | |
**Employment
Agreements**
We
do not have an employment or consulting agreement with any officers or Directors.
| 25 | |
| | |
**Compensation
Discussion and Analysis**
**Director
Compensation**
Presently
only Leong Ming Chia receives fee for his service as a member of the Board of Directors. The Board of Directors reserves the right in
the future to award the members of the Board of Directors cash or stock-based consideration for their services to the Company, which
awards, if granted shall be in the sole determination of the Board of Directors.
**Executive
Compensation Philosophy**
Our
Board of Directors determines the compensation given to our executive officers in their sole determination. Our Board of Directors reserves
the right to pay our executive or any future executives a salary, and/or issue them shares of common stock in consideration for services
rendered and/or to award incentive bonuses which are linked to our performance, as well as to the individual executive officers
performance. This package may also include long-term stock based compensation to certain executives, which is intended to align the performance
of our executives with our long-term business strategies. Additionally, while our Board of Directors has not granted any performance
base stock options to date, the Board of Directors reserves the right to grant such options in the future, if the Board in its sole determination
believes such grants would be in the best interests of the Company.
**Incentive
Bonus**
The
Board of Directors may grant incentive bonuses to our executive officer and/or future executive officers in its sole discretion, if the
Board of Directors believes such bonuses are in the Companys best interest, after analyzing our current business objectives and
growth, if any, and the amount of revenue we are able to generate each month, which revenue is a direct result of the actions and ability
of such executives.
**Long-term,
Stock Based Compensation**
In
order to attract, retain and motivate executive talent necessary to support the Companys long-term business strategy we may award
our executive and any future executives with long-term, stock-based compensation in the future, at the sole discretion of our Board of
Directors, which we do not currently have any immediate plans to award.
**ITEM
12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS**
As
of December 31, 2025, the Company has 206,904,585 shares of common stock issued and outstanding, which number of issued and outstanding
shares of common stock have been used throughout this report.
The
following table sets forth, as of December 31, 2025 certain information with regard to the record and beneficial ownership of the Companys
common stock by (i) each person known to the Company to be the record or beneficial owner of more than 5% of the Companys common
stock, (ii) each director of the Company, (iii) each of the named executive officers, and (iv) all executive officers and directors of
the Company as a group:
| 
Title
of Class | 
| 
Name
of beneficial owner(i) | 
| 
Shares
of Common Stock Beneficially Owned | 
| 
| 
Percent
of Class | 
| |
| 
| 
| 
| 
| 
| 
| 
| 
| 
| |
| 
Common Stock | 
| 
Leong Ming Chia (i), (ii), (iii) | 
| 
| 
62,906,493 | 
| 
| 
| 
30.40 | 
% | |
| 
| 
| 
| 
| 
| 
| 
| 
| 
| 
| 
| |
| 
Common Stock | 
| 
Wong Sui Ting1 (ii) | 
| 
| 
50,000 | 
| 
| 
| 
0.02 | 
% | |
| 
| 
| 
| 
| 
| 
| 
| 
| 
| 
| 
| |
| 
| 
| 
All of the officers and directors as a group (iv) | 
| 
| 
62,956,493 | 
| 
| 
| 
30.42 | 
% | |
| 
| 
| 
| 
| 
| 
| 
| 
| 
| 
| 
| |
| 
5% Shareholders | 
| 
| 
| 
| 
| 
| 
| 
| 
| 
| |
| 
Common Stock | 
| 
Greenpro Venture Capital Limited (i) | 
| 
| 
15,159,157 | 
| 
| 
| 
7.33 | 
% | |
| 
Common Stock | 
| 
Hew Yuen Foong (i) | 
| 
| 
33,000,000 | 
| 
| 
| 
15.95 | 
% | |
| 
Common Stock | 
| 
Teo Jen Jiang (i) | 
| 
| 
44,000,000 | 
| 
| 
| 
21.27 | 
% | |
| 
Common Stock | 
| 
Siow Kock Yong (i) | 
| 
| 
32,874,393 | 
| 
| 
| 
15.89 | 
% | |
1
Mr. Wong Sui Ting resigned as Director of the Company on October 1, 2025.
| 26 | |
| | |
Beneficial
ownership has been determined in accordance with Rule 13d-3 under the Exchange Act. Under this rule, certain shares may be deemed to
be beneficially owned by more than one person (if, for example, persons share the power to vote or the power to dispose of the shares).
In addition, shares are deemed to be beneficially owned by a person if the person has the right to acquire shares (for example, upon
exercise of an option or warrant) within 60 days of the date as of which the information is provided.
In computing the percentage ownership of any person, the amount of shares is deemed to include the amount of shares beneficially owned
by such person by reason of such acquisition rights. As a result, the percentage of outstanding shares of any person as shown in the
following table does not necessarily reflect the persons actual voting power at any particular date.
| 
(1) | 
Beneficial ownership is
determined in accordance with the rules of the Securities and Exchange Commission and generally includes voting or investment power
with respect to securities. Beneficial ownership also includes shares of stock subject to options and warrants currently exercisable
or exercisable within 60 days of the date of this table. In determining the percent of common stock owned by a person or entity as
of the date of this Report, (a) the numerator is the number of shares of the class beneficially owned by such person or entity, including
shares which may be acquired within 60 days on exercise of warrants or options and conversion of convertible securities, and (b)
the denominator is the sum of (i) the total shares of common stock outstanding on as of the date of this Annual Report (206,904,585
shares), and (ii) the total number of shares that the beneficial owner may acquire upon exercise of the derivative securities. Unless
otherwise stated, each beneficial owner has sole power to vote and dispose of its shares. | |
| 
(2) | 
Based on the total issued
and outstanding shares of 206,904,585 as of the date of this Annual Report. | |
**ITEM
13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, DIRECTOR INDEPENDENCE**
**Related
Party Transactions**
For
the years ended December 31, 2025 and December 31, 2024, the Company has the following transactions with related party:
| 
| | 
For the year ended December 31, 2025 (Audited) | | | 
For the year ended December 31, 2024 (Audited) | | |
| 
Professional Fees | | 
| | | | 
| | | |
| 
- Related party A | | 
$ | 10,293 | | | 
$ | 12,600 | | |
| 
| | 
| | | | 
| | | |
| 
Sales | | 
| | | | 
| | | |
| 
- Related party B | | 
$ | 13,366 | | | 
$ | 7,725 | | |
| 
| | 
| | | | 
| | | |
| 
Purchases | | 
| | | | 
| | | |
| 
- Related party B | | 
$ | - | | | 
$ | 8,236 | | |
The
related party A is a wholly owned subsidiary of a 7.33% shareholder of the Company.
The
related party Bs director is the founder of the Company.
**Review,
Approval and Ratification of Related Party Transactions**
Given
our small size and limited financial resources, we have not adopted formal policies and procedures for the review, approval or ratification
of transactions, such as those described above, with our executive officer(s), Director(s) and significant stockholders. We intend to
establish formal policies and procedures in the future, once we have sufficient resources and have appointed additional Directors, so
that such transactions will be subject to the review, approval or ratification of our Board of Directors, or an appropriate committee
thereof. On a moving forward basis, our Directors will continue to approve any related party transaction.
| 27 | |
| | |
**ITEM
14. PRINCIPAL ACCOUNTING FEES AND SERVICES**
Below
is the aggregate amount of fees billed for professional services rendered by our principal accountants with respect to our last two fiscal
years.
| 
| | 
For the Year Ended December 31, 2025 | | | 
For the Year Ended December 31, 2024 | | |
| 
Audit fees | | 
$ | 27,128 | | | 
$ | 25,200 | | |
| 
Audit related fees | | 
| - | | | 
| - | | |
| 
Total | | 
$ | 27,128 | | | 
$ | 25,200 | | |
The
category of Audit fees includes fees for our annual audit, quarterly reviews and services rendered in connection with regulatory
filings with the SEC, such as the issuance of comfort letters and consents.
The
category of Audit-related fees includes employee benefit plan audits, internal control reviews and accounting consultation.
All
of the professional services rendered by principal accountants for the audit of our annual financial statements that are normally provided
by the accountant in connection with statutory and regulatory filings or engagements for last two fiscal years were approved by our board
of directors.
**PART
IV**
**ITEM
15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES**
**(a)
Financial Statements**
The
following are filed as part of this report:
Financial
Statements
The
following financial statements of DSwiss, Inc. and Report of Independent Registered Public Accounting Firm are presented in the F
pages of this Report:
| 
| 
Page | |
| 
| 
| |
| 
Index to Financial Statements | 
F-1 | |
| 
| 
| |
| 
Report of Independent Registered Public Accounting Firm | 
F-2 | |
| 
| 
| |
| 
Financial Statements | 
| |
| 
| 
| |
| 
Consolidated Balance Sheets | 
F-3 | |
| 
| 
| |
| 
Consolidated Statements of Operations and Comprehensive Income | 
F-4 | |
| 
| 
| |
| 
Consolidated Statements of Changes in Stockholders Equity | 
F-5 | |
| 
| 
| |
| 
Consolidated Statements of Cash Flows | 
F-6 | |
| 
| 
| |
| 
Notes to Consolidated Financial Statements | 
F-7 F-21 | |
**(b)
Exhibits**
The
following exhibits are filed or furnished herewith:
| 
3.1 | 
Articles of Incorporation** | |
| 
| 
| |
| 
3.2 | 
Bylaws** | |
| 
| 
| |
| 
31.1 | 
Rule 13(a)-14(a)/15(d)-14(a) Certification of principal executive officer* | |
| 
| 
| |
| 
32.1 | 
Section 1350 Certification of principal executive officer* | |
| 
| 
| |
| 
101.INS | 
Inline XBRL Instance Document | |
| 
| 
| |
| 
101.SCH | 
Inline XBRL Taxonomy Extension
Schema Document | |
| 
| 
| |
| 
101.CAL | 
Inline XBRL Taxonomy Extension
Calculation Linkbase Document | |
| 
| 
| |
| 
101.DEF | 
Inline XBRL Taxonomy Extension
Definition Linkbase Document | |
| 
| 
| |
| 
101.LAB | 
Inline XBRL Taxonomy Extension
Label Linkbase Document | |
| 
| 
| |
| 
101.PRE | 
Inline XBRL Taxonomy Extension
Presentation Linkbase Document | |
| 
| 
| |
| 
104 | 
Cover Page Interactive
Data File (embedded within the Inline XBRL document) | |
*
Filed herewith.
**
As filed in the Registrants Registration Statement on Form S-1 Amendment No.8 (File No. 333-208083) on July 20, 2016.
| 28 | |
| | |
**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.
| 
| 
DSWISS, INC. | |
| 
| 
(Name of Registrant) | |
| 
| 
| 
| |
| 
Date: March 31, 2026 | 
| 
| |
| 
| 
By: | 
/s/
Leong Ming Chia | |
| 
| 
Title: | 
President, Chief Executive Officer, Chief Finance Officer,
Secretary, Treasurer, Director | |
| 
| 
| 
Principal
Executive Officer
Principal
Financial Officer | |
| 29 | |
| | |
**INDEX
TO FINANCIAL STATEMENTS**
| 
| 
Page | |
| 
Financial Statements | 
| |
| 
| 
| |
| 
Report of Independent Registered Public Accounting Firm | 
F-2 | |
| 
| 
| |
| 
Consolidated Balance Sheets | 
F-3 | |
| 
| 
| |
| 
Consolidated Statements of Operations and Comprehensive Income | 
F-4 | |
| 
| 
| |
| 
Consolidated Statements of Changes in Stockholders Equity | 
F-5 | |
| 
| 
| |
| 
Consolidated Statements of Cash Flows | 
F-6 | |
| 
| 
| |
| 
Notes to Consolidated Financial Statements | 
F-7 - F-21 | |
| F-1 | |
| | |
****
****
****
**REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**
****
**The
Board of Directors and Stockholders of DSwiss, Inc.**
No.
B-10-08, Vertical Business Suite,
Bangsar
South City,
No.
8, Jalan Kerinchi, 59200 Kuala Lumpur,
Malaysia
Opinion
on the Financial Statements
We
have audited the accompanying consolidated balance sheets of DSwiss, Inc. (the Company) as of December 31, 2025 and December
31, 2024 and the related consolidated statements of operations and comprehensive income, consolidated statements of changes in stockholders
equity, and consolidated statements of cash flows for the year ended of December 31, 2025 and December 31, 2024 and the related notes
to consolidated financial statements (collectively referred to as the financial statements). In our opinion, the financial
statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and December 31, 2024,
and the results of its operations and its cash flows for the year ended of December 31, 2025 and December 31, 2024, in conformity with
accounting principles generally accepted in the United States of America.
Substantial
Doubt About the Entitys Ability to Continue as a Going Concern
The
financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial
statements, for the year ended December 31, 2025, the Company incurred a net loss of
$76,860 and a negative cash flow from operating activities of $94,303. As at December 31, 2025, the Companys current liabilities exceeded its current assets by $133,691 and has suffered an accumulated deficit of $1,464,790. These conditions raise substantial
doubt about the Companys ability to continue as a going concern. Managements plans in regard to these matters also are
described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Basis
for Opinion
These
financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on the Companys
financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board
(United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We
conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company
is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits
we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion
on the effectiveness of the Companys internal control over financial reporting. Accordingly, we express no such opinion.
Our
audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error
or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding
the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that
our audits provide a reasonable basis for our opinion.
Critical
Audit Matters
Critical
audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be
communicated to those charged with governance that: (1) relate to accounts or disclosures that are material to the financial statements
and (2) involved our especially challenging, subjective, or complex judgements. We determined that there are no critical matters.
| 
/s/ JP CENTURION &
PARTNERS PLT | 
| |
| 
JP CENTURION & PARTNERS PLT (PCAOB: 6723) | 
| |
| 
We have served as the Companys auditor since
2020. | 
| |
| 
| 
| |
| 
Kuala Lumpur, Malaysia | 
| |
| 
Date: March 31, 2026 | 
| |
| F-2 | |
| | |
**DSWISS,
INC.**
**CONSOLIDATED
BALANCE SHEETS**
**AS
OF DECEMBER 31, 2025 and 2024**
**(Currency
expressed in United States Dollars (US$), except for number of shares)**
(Audited)
| 
| | 
2025 | | | 
2024 | | |
| 
| | 
As of December 31, | | |
| 
| | 
2025 | | | 
2024 | | |
| 
ASSETS | | 
| | | 
| | |
| 
CURRENT ASSETS | | 
| | | | 
| | | |
| 
Cash and cash equivalents (including $76,857 and $137,152 of time deposits as of December 31, 2025 and December 31, 2024 respectively) | | 
$ | 285,034 | | | 
$ | 397,476 | | |
| 
Accounts receivables | | 
| 17,376 | | | 
| 74,648 | | |
| 
Other receivables, prepaid expenses, and deposit | | 
| 27,016 | | | 
| 22,188 | | |
| 
Inventories | | 
| 2,347 | | | 
| 3,350 | | |
| 
| | 
| | | | 
| | | |
| 
Total current assets | | 
| 331,773 | | | 
| 497,662 | | |
| 
| | 
| | | | 
| | | |
| 
NON-CURRENT ASSETS | | 
| | | | 
| | | |
| 
Plant and equipment, net | | 
| 189,386 | | | 
| 136,767 | | |
| 
Intangible assets, net | | 
| 409 | | | 
| 1,401 | | |
| 
Operating lease right-of-use assets, net | | 
| 155,568 | | | 
| - | | |
| 
| | 
| | | | 
| | | |
| 
Total non-current assets | | 
| 345,363 | | | 
| 138,168 | | |
| 
| | 
| | | | 
| | | |
| 
TOTAL ASSETS | | 
$ | 677,136 | | | 
$ | 635,830 | | |
| 
| | 
| | | | 
| | | |
| 
LIABILITIES AND STOCKHOLDERS EQUITY | | 
| | | | 
| | | |
| 
CURRENT LIABILITIES | | 
| | | | 
| | | |
| 
Accounts payables (including $91 and $818 payable to a related party as of December 31, 2025 and December 31, 2024 respectively) | | 
$ | 113,134 | | | 
$ | 153,045 | | |
| 
Other payables and accrued liabilities (including $0 and $3,000 of general and administrative expenses payable to a related party as of December 31, 2025 and December 31, 2024 respectively) | | 
| 289,473 | | | 
| 302,347 | | |
| 
Finance lease liability | | 
| 35,167 | | | 
| 28,517 | | |
| 
Operating lease liability | | 
| 26,089 | | | 
| - | | |
| 
Tax payable | | 
| 1,601 | | | 
| 108 | | |
| 
| | 
| | | | 
| | | |
| 
Total current liabilities | | 
| 465,464 | | | 
| 484,017 | | |
| 
| | 
| | | | 
| | | |
| 
NON-CURRENT LIABILITY | | 
| | | | 
| | | |
| 
Finance lease liability | | 
| 91,539 | | | 
| 77,777 | | |
| 
Operating lease liability | | 
| 129,479 | | | 
| - | | |
| 
| | 
| | | | 
| | | |
| 
Total non-current liability | | 
| 221,018 | | | 
| 77,777 | | |
| 
| | 
| | | | 
| | | |
| 
TOTAL LIABILITIES | | 
$ | 686,482 | | | 
$ | 561,794 | | |
| 
| | 
| | | | 
| | | |
| 
STOCKHOLDERS EQUITY | | 
| | | | 
| | | |
| 
Preferred stock, $0.0001 par value, 200,000,000 shares authorized, None issued and outstanding | | 
| - | | | 
| - | | |
| 
Common stock, $0.0001 par value, 600,000,000 shares authorized, 206,904,585 shares and 206,904,585 shares issued and outstanding as of December 31, 2025 and 2024 respectively | | 
| 20,690 | | | 
| 20,690 | | |
| 
Additional paid-in capital | | 
| 1,395,426 | | | 
| 1,395,426 | | |
| 
Accumulated other comprehensive income | | 
| 39,328 | | | 
| 45,850 | | |
| 
Accumulated deficit | | 
| (1,464,790 | ) | | 
| (1,387,930 | ) | |
| 
| | 
| | | | 
| | | |
| 
TOTAL STOCKHOLDERS EQUITY | | 
| (9,346 | ) | | 
| 74,036 | | |
| 
| | 
| | | | 
| | | |
| 
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY | | 
$ | 677,136 | | | 
$ | 635,830 | | |
See
accompanying notes to consolidated financial statements.
| F-3 | |
| | |
**DSWISS,
INC.**
**CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME**
**FOR
THE YEARS ENDED DECEMBER 31, 2025 AND 2024**
**(Currency
expressed in United States Dollars (US$), except for number of shares)**
(Audited)
| 
| | 
2025 | | | 
2024 | | |
| 
| | 
For the year ended December 31, 2025 | | | 
For the year ended December 31, 2024 | | |
| 
REVENUE (including $13,366 and $7,725 of revenue from a related party for the year ended December 31, 2025 and 2024 respectively) | | 
$ | 2,920,986 | | | 
$ | 3,112,887 | | |
| 
| | 
| | | | 
| | | |
| 
COST OF REVENUE (including $0 and $8,236 of purchases from a related party for the year ended December 31, 2025 and 2024 respectively) | | 
| (2,356,424 | ) | | 
| (2,489,616 | ) | |
| 
| | 
| | | | 
| | | |
| 
GROSS PROFIT | | 
| 564,562 | | | 
| 623,271 | | |
| 
| | 
| | | | 
| | | |
| 
OTHER INCOME | | 
| 40,175 | | | 
| 13,300 | | |
| 
| | 
| | | | 
| | | |
| 
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (including $10,293 and $12,600 of general and administrative expenses to a related party for the year ended December 31, 2025 and 2024 respectively) | | 
| (630,645 | ) | | 
| (603,720 | ) | |
| 
| | 
| | | | 
| | | |
| 
OPERATING EXPENSES | | 
| (1,167 | ) | | 
| (1,203 | ) | |
| 
| | 
| | | | 
| | | |
| 
FINANCE COST | | 
| (14,348 | ) | | 
| (1,547 | ) | |
| 
| | 
| | | | 
| | | |
| 
LEASE EXPENSES | | 
| (19,465 | ) | | 
| - | | |
| 
| | 
| | | | 
| | | |
| 
(LOSS)/PROFIT BEFORE INCOME TAX | | 
$ | (60,888 | ) | | 
$ | 30,101 | | |
| 
| | 
| | | | 
| | | |
| 
INCOME TAXES PROVISION | | 
| (15,972 | ) | | 
| (7,878 | ) | |
| 
| | 
| | | | 
| | | |
| 
NET (LOSS)/INCOME | | 
| (76,860 | ) | | 
| 22,223 | | |
| 
| | 
| | | | 
| | | |
| 
Other comprehensive loss: | | 
| | | | 
| | | |
| 
- Foreign currency translation adjustment | | 
| (6,522 | ) | | 
| (4,602 | ) | |
| 
COMPREHENSIVE (LOSS)/INCOME | | 
$ | (83,382 | ) | | 
$ | 17,621 | | |
| 
| | 
| | | | 
| | | |
| 
Net (loss)/profit per share- Basic and diluted | | 
| (0.0004 | ) | | 
| 0.0001 | | |
| 
| | 
| | | | 
| | | |
| 
Weighted average number of common shares outstanding - Basic and diluted | | 
$ | 206,904,585 | | | 
$ | 206,904,585 | | |
See
accompanying notes to consolidated financial statements.
| F-4 | |
| | |
**DSWISS,
INC.**
**CONSOLIDATED
STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY**
**FOR
THE YEARS ENDED DECEMBER 31, 2025 AND 2024**
**(Currency
expressed in United States Dollars (US$), except for number of shares)**
(Audited)
| 
| | 
Number of shares | | | 
Amount | | | 
PAID-IN CAPITAL | | | 
COMPREHENSIVE (LOSSES)/GAINS | | | 
ACCUMULATED LOSSES | | | 
TOTAL EQUITY | | |
| 
| | 
COMMON STOCK | | | 
ADDITIONAL | | | 
ACCUMULATED OTHER | | | 
| | | 
| | |
| 
| | 
Number of shares | | | 
Amount | | | 
PAID-IN CAPITAL | | | 
COMPREHENSIVE (LOSSES)/GAINS | | | 
ACCUMULATED LOSSES | | | 
TOTAL EQUITY | | |
| 
Balance as of December 31, 2023 | | 
| 206,904,585 | | | 
| 20,690 | | | 
| 1,395,426 | | | 
| 50,452 | | | 
| (1,410,153 | ) | | 
| 56,415 | | |
| 
Foreign currency translation adjustment | | 
| - | | | 
| - | | | 
| - | | | 
| (4,602 | ) | | 
| - | | | 
| (4,602 | ) | |
| 
Net profit | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| 22,223 | | | 
| 22,223 | | |
| 
Balance as of December 31, 2024 | | 
| 206,904,585 | | | 
| 20,690 | | | 
| 1,395,426 | | | 
| 45,850 | | | 
| (1,387,930 | ) | | 
| 74,036 | | |
| 
Balance | | 
| 206,904,585 | | | 
| 20,690 | | | 
| 1,395,426 | | | 
| 45,850 | | | 
| (1,387,930 | ) | | 
| 74,036 | | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Foreign currency translation adjustment | | 
| - | | | 
| - | | | 
| - | | | 
| (6,522 | ) | | 
| - | | | 
| (6,522 | ) | |
| 
Net loss | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| (76,860 | ) | | 
| (76,860 | ) | |
| 
Net profit (loss) | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| (76,860 | ) | | 
| (76,860 | ) | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Balance as of December 31, 2025 | | 
| 206,904,585 | | | 
| 20,690 | | | 
| 1,395,426 | | | 
| 39,328 | | | 
| (1,464,790 | ) | | 
| (9,346 | ) | |
| 
Balance | | 
| 206,904,585 | | | 
| 20,690 | | | 
| 1,395,426 | | | 
| 39,328 | | | 
| (1,464,790 | ) | | 
| (9,346 | ) | |
See
accompanying notes to consolidated financial statements
| F-5 | |
| | |
**DSWISS,
INC.**
**CONSOLIDATED
STATEMENTS OF CASH FLOWS**
**FOR
THE YEARS ENDED DECEMBER 31, 2025 AND 2024**
**(Currency
expressed in United States Dollars (US$))**
(Audited)
| 
| | 
2025 | | | 
2024 | | |
| 
| | 
For the year ended December 31, 2025 | | | 
For the year ended December 31, 2024 | | |
| 
CASH FLOWS FROM OPERATING ACTIVITIES: | | 
| | | | 
| | | |
| 
Net (loss)/income | | 
$ | (76,860 | ) | | 
$ | 22,223 | | |
| 
Adjustments to reconcile net (loss)/ income to net cash generated from operating activities: | | 
| | | | 
| | | |
| 
Depreciation and amortization | | 
| 63,854 | | | 
| 17,558 | | |
| 
Amortization of intangible assets | | 
| 987 | | | 
| 1,034 | | |
| 
Gain on disposal of plant and equipment | | 
| (30,975 | ) | | 
| - | | |
| 
Changes in operating assets and liabilities: | | 
| | | | 
| | | |
| 
Accounts receivable | | 
| 64,849 | | | 
| (21,881 | ) | |
| 
Accounts payable | | 
| (55,446 | ) | | 
| 32,386 | | |
| 
Inventories | | 
| 1,342 | | | 
| 3,704 | | |
| 
Other payables and accrued liabilities | | 
| (41,246 | ) | | 
| 124,128 | | |
| 
Other receivables, prepaid expenses, and deposit | | 
| (2,576 | ) | | 
| 2,996 | | |
| 
Tax payable | | 
| 2,222 | | | 
| 408 | | |
| 
Reduction in lease liability | | 
| (20,454 | ) | | 
| - | | |
| 
Net cash (used in)/ generated from operating activities | | 
$ | (94,303 | ) | | 
$ | 182,556 | | |
| 
| | 
| | | | 
| | | |
| 
CASH FLOWS FROM INVESTING ACTIVITIES: | | 
| | | | 
| | | |
| 
Purchase of plant and equipment | | 
| (41,031 | ) | | 
| (105,549 | ) | |
| 
Proceed from disposal of plant and equipment | | 
| 32,549 | | | 
| 291 | | |
| 
Net cash used in investing activities | | 
$ | (8,482 | ) | | 
$ | (105,258 | ) | |
| 
| | 
| | | | 
| | | |
| 
CASH FLOWS FROM FINANCING ACTIVITIES: | | 
| | | | 
| | | |
| 
Addition of finance lease | | 
| - | | | 
| 96,787 | | |
| 
Repayment of finance lease | | 
| (34,728 | ) | | 
| (28,481 | ) | |
| 
Net cash (used in)/ generated from financing activities | | 
$ | (34,728 | ) | | 
$ | 68,306 | | |
| 
| | 
| | | | 
| | | |
| 
Effect of exchange rate changes on cash and cash equivalents | | 
| 25,071 | | | 
| 2,762 | | |
| 
| | 
| | | | 
| | | |
| 
Net change in cash and cash equivalents | | 
| (112,442 | ) | | 
| 148,366 | | |
| 
Cash and cash equivalents, beginning of year | | 
| 397,476 | | | 
| 249,110 | | |
| 
| | 
| | | | 
| | | |
| 
CASH AND CASH EQUIVALENTS, END OF YEAR | | 
$ | 285,034 | | | 
$ | 397,476 | | |
| 
SUPPLEMENTAL CASH FLOWS INFORMATION | | 
| | | | 
| | | |
| 
Income taxes paid | | 
$ | (14,562 | ) | | 
$ | (7,470 | ) | |
| 
Interest paid | | 
$ | (5,675 | ) | | 
$ | (1,547 | ) | |
See
accompanying notes to consolidated financial statements.
| F-6 | |
| | |
**DSWISS,
INC.**
**NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS**
**FOR
THE YEARS ENDED DECEMBER 31, 2025 AND 2024**
**(Currency
expressed in United States Dollars (US$), except for number of shares)**
**1.
ORGANIZATION AND BUSINESS BACKGROUND**
DSwiss,
Inc., a Nevada corporation (the Company) was incorporated under the laws of the State of Nevada on May 28, 2015.
DSwiss,
Inc. operates through its wholly owned subsidiary, DSwiss Holding Limited, a Company organized under the laws of Seychelles.
The
principal activity of the Company and its subsidiaries is to supply high-quality health and beauty products, including beverages to assist
in weight management, anti-aging creams, and products designed to improve the overall health system in our body.
We
have historically conducted our business through DSwiss Sdn Bhd, a private limited liability company, incorporated in Malaysia. DSwiss
Holding Limited, incorporated in Seychelles, is an investment holding company with 100% equity interest in DSwiss (HK) Limited, a company
incorporated in Hong Kong, which subsequent hold 100% equity interest in DSwiss Sdn. Bhd. On August 31, 2015, DSwiss, Inc. was restructured
to be the holding company parent to, and succeed to the operations of, DSwiss Holding Limited. The former unit holder of DSwiss Holding
Limited became the unit holder of DSwiss, Inc. and DSwiss Holding Limited became a wholly-owned subsidiary of DSwiss, Inc. This transaction
was accounted for as a transaction among entities under common control and the assets, liabilities, revenues and expenses of DSwiss Holding
Limited were carried over to and combined with DSwiss, Inc. at historical cost, and as if the transfer occurred at the beginning of the
period. Prior periods have been retrospectively adjusted for comparative purposes.
We
have invested in DSwiss Biotech Sdn Bhd, a Company incorporated in Malaysia, and owned 40% equity interest. On
January 18, 2023, DSwiss (HK) Limited acquired 150,000 shares, representing 60% equity interest in DSwiss Biotech Sdn. Bhd., from the
other party with consideration of RM 1. After such acquisition, DSwiss Biotech Sdn. Bhd. became a wholly owned subsidiary of DSwiss (HK)
Limited.
The
Company, through its subsidiaries, mainly supplies high quality beauty products. Details of the Companys subsidiaries:
SHEDULE
OF DETAILS OF SUBSIDIARIES
| 
| | 
Company name | | 
Place and date of incorporation | | 
Particulars of issued capital | | 
Principal activities | | 
Proportional
of ownership interest and voting power held | |
| 
1. | | 
DSwiss Holding Limited | | 
Seychelles, May 28, 2015 | | 
1 share of ordinary share of US$1 each | | 
Investment holding | | 
100% | |
| 
| | 
| | 
| | 
| | 
| | 
| |
| 
2. | | 
DSwiss (HK) Limited | | 
Hong Kong, May 28, 2015 | | 
1 share of ordinary share of HK$1 each | | 
International trade in health care and beauty products | | 
100% | |
| 
| | 
| | 
| | 
| | 
| | 
| |
| 
3. | | 
DSwiss Sdn Bhd | | 
Malaysia, March 10, 2011 | | 
2 shares of ordinary share of RM 1 each | | 
Supply of health care products | | 
100% | |
| 
| | 
| | 
| | 
| | 
| | 
| |
| 
4. | | 
DSwiss Biotech Sdn Bhd | | 
Malaysia, March 17, 2016 | | 
250,000 shares of ordinary share of RM 1 each | | 
Research and development on biotechnology | | 
100% | |
| F-7 | |
| | |
**DSWISS,
INC.**
**NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS**
**FOR
THE YEARS ENDED DECEMBER 31, 2025 AND 2024**
**(Currency
expressed in United States Dollars (US$), except for number of shares)**
**1.
ORGANIZATION AND BUSINESS BACKGROUND (CONTINUED)** 
**Business
Overview**
One
of the leading one-stop ODM/OEM manufacturing companies, DSwiss is a premier biotech nutraceutical firm that offers premium healthcare,
skincare, and personal care products. At DSwiss, we procure excellent and precise formulation using the finest natural ingredients, developing
effective solutions with alluring favours in a variety of forms. DSwiss addresses a distinct demand in the market for a manufacturer
who could ensure the quality of the ingredient sources and offer efficient one-stop service from raw material, product development, manufacturing
and packaging.
Since
our founding, we have experienced tremendous growth in Malaysia. We offer exceptional lifestyle solutions to consumers all over the world
thanks to our over 10 years of continuous innovation and work in the health and beauty business. Our companys Chief Executive
Officer, Vincent Leong has led it with a strong hand, and as a result, our products are now consumed around the world, such as Malaysia,
Singapore, Indonesia, Hong Kong, Australia, Taiwan, Macau, and China. With the help of our distributors, we have so far extended throughout
Asia, and we are adamant about extending our geographic reach into untapped markets.
With
a team of professionals at the helm, DSwiss is assured of providing the best products and attending clients needs from consultations
to products. To fulfil customer needs, we carry out research and development based on our philosophy of creating beauty, health,
and the ecosystem. Our cutting-edge research and development team has always been exploring new product lines and integrating
the most recent science and technology, which will enable us to produce more evidence-based, high-value added formulations and products
and maintain our competitive position in the market.
With
our extensive years of expertise in the OEM and ODM services industry, we offer comprehensive solutions to our customers. In addition
to business consultancy, DSwiss offers useful guidance on current market trends as we all as marketing solutions and support to assist
our clients business endeavours. Versatility and reliability are evidently the driving principles behind DSwiss, who manufactures
products using high-grade ingredients and materials at every stage of research, development, and production.
As
advocates of natural and high-quality active ingredients, we actively seek for and select the best ingredients, as we are dedicated to
adhering to policies under rigorous quality control and assurance criteria, thereby maximizing the safety and efficacy of our products.
We dedicate ourselves to maintaining the highest standard in our products in order to provide assurance and a continual commitment to
producing high-quality products in accordance with the strict specifications and guidelines specified out by Ministry of Health (MOH)
Malaysia. Each step of production process has quality control built in and implemented. We guarantee the highest quality product using
precise production techniques and specialised equipment, promising ongoing improvements and enhancements based on customer feedback.
DSwiss takes pride in offering the best results in customisable solutions for health supplements and beauty product manufacturing.
**2.
GOING CONCERN UNCERTAINTIES**
The
accompanying 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.
For the year ended December 31, 2025, the Company incurred a net loss of
$76,860 and a negative cash flow from operating activities of $94,303. As
of December 31, 2025, the Companys current liabilities exceeded its current assets by $133,691 and suffered an accumulated deficit of $1,464,790. The continuation of the Company as a going concern through
December 31, 2025 is dependent upon improving the profitability and the continuing financial support from its major stockholders. Management
believes the existing major shareholders or external financing will provide the additional cash to meet the Companys obligations
as they become due.
There
is no assurance that the Company will able to maintain profitable in the future, which raise substantial doubt about the Companys
ability to continue as a going concern. These financial statements do not include any adjustments to reflect the possible future effects
on the recoverability and classification of assets or the amounts and classification of liabilities that may result in the Company not
being able to continue as a going concern.
****
**3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**
The
accompanying consolidated financial statements reflect the application of certain significant accounting policies as described in this
note and elsewhere in the accompanying consolidated financial statements and notes.
Basis
of presentation
These
accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the
United States of America (US GAAP).
Basis
of consolidation
The consolidated financial statements include the accounts of the Company and its subsidiaries in which the Company is the primary
beneficiary. All inter-company accounts and transactions have been eliminated upon consolidation.
| F-8 | |
| | |
**DSWISS,
INC.**
**NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS**
**FOR
THE YEARS ENDED DECEMBER 31, 2025 AND 2024**
**(Currency
expressed in United States Dollars (US$), except for number of shares)**
**3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**
Use
of estimates
In
preparing these consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets
and liabilities in the balance sheets, and revenues and expenses during the periods reported. Actual results may differ from these estimates.
Cash
and cash equivalents
Cash
and cash equivalents are carried at cost and represent cash on hand, time deposits placed with banks or other financial institutions
and all highly liquid investments with an original maturity of six months or less as of the purchase date of such investments.
Plant
and equipment
Plant
and equipment are stated at cost less accumulated depreciation and impairment. Depreciation of plant, equipment and software are calculated
on the straight-line method over their estimated useful lives or lease terms generally as follows:
SCHEDULE OF PROPERTY AND EQUIPMENT USEFUL LIFE
| 
Classification | 
| 
Estimated
useful lives | |
| 
Computer and software | 
| 
5 years | |
| 
Furniture and fittings | 
| 
5 years | |
| 
Office equipment | 
| 
10 years | |
| 
Motor vehicle | 
| 
5 years | |
| 
Plant and machinery | 
| 
10 years | |
Intangible
assets
Intangible
assets are stated at cost less accumulated amortization. Intangible assets represented the registration costs of trademarks in India,
Singapore, Cambodia, Hong Kong and China which are amortized on a straight-line basis over a useful life of ten years.
The
Company follows ASC Topic 350 in accounting for intangible assets, which requires impairment losses to be recorded when indicators of
impairment are present and the undiscounted cash flows estimated to be generated by the assets are less than the assets carrying
amounts. There were no impairment losses recorded on intangible assets for the year ended December 31, 2025.
| F-9 | |
| | |
**DSWISS,
INC.**
**NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS**
**FOR
THE YEARS ENDED DECEMBER 31, 2025 AND 2024**
**(Currency
expressed in United States Dollars (US$), except for number of shares)**
**3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**
Leases
The
company determines if an arrangement is a lease at inception. Operating leases are included in operating in operating lease right-of-use
(ROU) as assets, operating lease non-current liabilities, and operating lease current liabilities in our consolidated balance
sheet. Finance leases are property and equipment, other current liabilities, and other non-current liabilities in the consolidated balance
sheet.
ROU
assets represent the right to use an asset for the lease term and lease liability represent the obligation to make lease payment arising
from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease
payments over lease term. As most of the leases doesnt provide an implicit rate. The company generally use the incremental borrowing
rate on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The
operating ROU asset also includes any lease payments made and exclude lease incentives. Lease expense for lease payment is recognized
on a straight -line basis over lease term. The Company adopted Maybank Berhads base rate lending rate as a reference for discount
rate.
Leases
that transfer substantially all the rewards and risks of ownership to the lessee, other than legal title, are accounted for as finance
leases. Substantially all of the risks or benefits of ownership are deemed to have been transferred if any one of the four criteria is
met: (i) transfer of ownership to the lessee at the end of the lease term, (ii) the lease containing a bargain purchase option, (iii)
the lease term exceeding 75% of the estimated economic life of the leased asset, (iv) the present value of the minimum lease payments
exceeding 90% of the fair value. At the inception of a finance lease, the Company as the lessee records an asset and an obligation at
an amount equal to the present value of the minimum lease payments. The leased asset is amortized over the shorter of the lease term
or its estimated useful life if title does not transfer to the Company, while the leased asset is depreciated in accordance with the
Companys depreciation policy if the title is to eventually transfer to the Company. The periodic rent payments made during the
lease term are allocated between a reduction in the obligation and interest element using the effective interest method in accordance
with the provisions of ASC Topic 835-30, Imputation of Interest.
Inventories
Inventories
consisting of products available for sell, are stated at the lower of cost or market value. Cost of inventory is determined using the
first-in, first-out (FIFO) method. Inventory reserve is recorded to write down the cost of inventory to the estimated market value due
to slow-moving merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and
promotional environment. The Company takes ownership, risks and rewards of the products purchased. Write downs are recorded in cost of
revenues in the Condensed Consolidated Statements of Operations and Comprehensive Income.
Revenue
recognition
The
Company follows the guidance of Accounting Standards Codification (ASC) 606, *Revenue from Contracts*. ASC 606 creates a five-step
model that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying the contracts
or agreements with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction
price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance
obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect
the consideration it is entitled to in exchange for the services it transfers to its clients.
Revenue from trading of retail goods is recognized when control of the goods is transferred and there are no continuing obligations to
the customer. Title and control transfer to and accepted by the customer when the products are collected by the customer at the Companys
office. Revenue is recorded net of sales discounts, returns, allowances, and other adjustments that are based upon managements
best estimates and historical experience and are provided for in the same period as the related revenues are recorded.
The
Company mainly derives its revenue from the sale of healthy food products. Generally, the Company recognizes revenue when OEM, Home brand
and medical consumables products are sold and accepted by the customers and there are no continuing obligations to the customer.
| F-10 | |
| | |
**DSWISS,
INC.**
**NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS**
**FOR
THE YEARS ENDED DECEMBER 31, 2025 AND 2024**
**(Currency
expressed in United States Dollars (US$), except for number of shares)**
**3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**
Cost
of revenue
Cost
of revenue includes the purchase cost of retail goods for re-sale to customers and packing materials (such as boxes). It excludes purchasing
and receiving costs, inspection costs, warehousing costs, internal transfer costs and other costs of distribution network in cost of
revenues.
Shipping
and handling fees
Shipping
and handling fees, if billed to customers, are included in revenue. Shipping and handling fees associated with inbound and outbound freight
are expensed as incurred and included in selling and distribution expenses.
Selling
and distribution expenses
Selling
and distribution expenses are primarily comprised of travelling and accommodation, transportation fees such as petrol, toll and parking
and shipping and handling fees.
Income
taxes
Income
taxes are determined in accordance with the provisions of ASC Topic 740, Income Taxes (ASC Topic 740). Under
this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the
financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities
are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are
expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income
in the period that includes the enactment date. The Company also adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to
Income Tax Disclosures, which requires disaggregated information about the reporting entitys effective tax rate reconciliation
as well as information on income taxes paid.
The
Company conducts much of its businesses activities in Malaysia and is subject to tax in this jurisdiction. As a result of its business
activities, the Company will file separate tax returns that are subject to examination by the foreign tax authorities.
Net
profit per share
The
Company calculates net profit per share in accordance with ASC Topic 260 *Earnings per share*. Basic profit per share
is computed by dividing the net profit by the weighted average number of common shares outstanding during the period. Diluted profit
per share is computed similar to basic profit per share except that the denominator is increased to include the number of additional
common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common
shares were dilutive.
| F-11 | |
| | |
**DSWISS,
INC.**
**NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS**
**FOR
THE YEARS ENDED DECEMBER 31, 2025 AND 2024**
**(Currency
expressed in United States Dollars (US$), except for number of shares)**
**3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**
Foreign
currencies translation
Transactions
denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing
at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated
into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded
in the Condensed Consolidated Statements of Operations and Comprehensive Income
The
reporting currency of the Company is United States Dollars (US$) and the accompanying financial statements have been expressed
in US$. In addition, the Companys subsidiaries in Malaysia and Hong Kong maintain their books and record in their local currency,
Ringgits Malaysia (MYR) and Hong Kong Dollars (HK$) respectively, which is functional currency as being the
primary currency of the economic environment in which the entity operates.
In
general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into
US$, in accordance with ASC Topic 830-30, *Translation of Financial Statement*, using the exchange rate on the balance
sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation
of financial statements of foreign subsidiary are recorded as a separate component of accumulated other comprehensive income within the
statements of stockholders equity.
Translation
of amounts from MYR into US$1 and HK$ into US$1 has been made at the following exchange rates for the respective periods:
SCHEDULE
OF FOREIGN CURRENCIES TRANSLATION
| 
| | 
As of and for the year ended December 31, | | |
| 
| | 
2025 | | | 
2024 | | |
| 
| | 
| | | 
| | |
| 
Year-end MYR : US$1 exchange rate | | 
| 4.06 | | | 
| 4.47 | | |
| 
Year-average MYR : US$1 exchange rate | | 
| 4.26 | | | 
| 4.55 | | |
| 
Year-end HK$ : US$1 exchange rate | | 
| 7.78 | | | 
| 7.77 | | |
| 
Year-average HK$ : US$1 exchange rate | | 
| 7.80 | | | 
| 7.80 | | |
Related
parties
Parties,
which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control
the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also
considered to be related if they are subject to common control or common significant influence.
Fair
value of financial instruments:
The
carrying value of the Companys financial instruments: cash and cash equivalents, subscription receivables, prepayment and deposits,
accounts payable, and other payables and accrued liabilities approximate at their fair values because of the short-term nature of these
financial instruments.
| F-12 | |
| | |
**DSWISS,
INC.**
**NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS**
**FOR
THE YEARS ENDED DECEMBER 31, 2025 AND 2024**
**(Currency
expressed in United States Dollars (US$), except for number of shares)**
**3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**
The
Company also follows the guidance of the ASC Topic 820-10, *Fair Value Measurements and Disclosures* (ASC 820-10),
with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy
that prioritizes the inputs used in measuring fair value as follows:
| 
| 
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; and | |
| 
| 
| |
| 
| 
Level 3: Unobservable inputs
in which there is little or no market data, which require the reporting entity to develop its own assumptions. | |
Fair
value estimates are made at a specific point in time based on relevant market information about the financial instrument. These estimates
are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision.
Changes in assumptions could significantly affect the estimates.
Segment
reporting
ASC
Topic 280, *Segment Reporting* establishes standards for reporting information about operating segments on a basis
consistent with the Companys internal organization structure as well as information about geographical areas, business segments
and major customers in financial statements. For the year ended December 31, 2025, the Company operates in two reportable operating segments
in Malaysia and Hong Kong.
Recent
accounting pronouncements
The
Company has reviewed all recently issued, but not yet effective, considers the applicability and impact of all accounting standards updates
(ASUs). Management periodically reviews new accounting standards that are issued.
In
November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses. The new standard requires entities to disclose
additional information about certain expenses, such as purchases of inventory, employee compensation, depreciation, intangible asset
amortization, as well as selling expenses included in commonly presented expense captions on the income statement. The FASB further clarified
the effective date in January 2025 with the issuance of ASU 2025-01, Income Statement Reporting Comprehensive Income 
Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. The ASU is effective for fiscal years beginning
after December 15, 2026, and interim periods beginning after December 15, 2027. Companies have the option to apply this guidance either
on a retrospective or prospective basis, and early adoption is permitted.
In
July 2025, the FASB issued ASU 2025-05, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts
Receivable and Contract Assets. The amendments in the ASU provide (1) all entities with a practical expedient and (2) entities other
than public business entities (PBEs) with an accounting policy election when estimating expected credit losses for current accounts receivable
and current contract assets arising from transactions accounted for under ASC 606. The ASU is effective for fiscal years and interim
periods beginning after December 15, 2025. Companies should apply this guidance on a prospective basis, and early adoption is permitted.
The
Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have
a significant impact on the Companys financial statements.
Off-Balance Sheet Arrangements
As of December 31, 2025, we have no significant off-balance sheet arrangements
that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition,
revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our stockholders.
| F-13 | |
| | |
**DSWISS,
INC.**
**NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS**
**FOR
THE YEARS ENDED DECEMBER 31, 2025 AND 2024**
**(Currency
expressed in United States Dollars (US$), except for number of shares)**
****
**4.
STOCKHOLDERS EQUITY**
As
of December 31, 2025 and 2024, the Company had a total of 206,904,585 and 206,904,585 of its common stock issued and outstanding. There
are no shares of preferred stock issued and outstanding.
**5.
PLANT AND EQUIPMENT**
SCHEDULE OF PLANT AND EQUIPMENT
| 
| | 
As of December 31, 2025 | | | 
As of December 31, 2024 | | |
| 
Computer and software | | 
$ | 107,339 | | | 
$ | 104,318 | | |
| 
Furniture and fittings | | 
| 6,144 | | | 
| 6,144 | | |
| 
Office equipment | | 
| 24,216 | | | 
| 23,314 | | |
| 
Motor vehicle | | 
| 232,045 | | | 
| 232,678 | | |
| 
Plant and machinery | | 
| 5,743 | | | 
| 4,028 | | |
| 
Total plant and equipment | | 
| 375,487 | | | 
$ | 370,482 | | |
| 
Accumulated depreciation | | 
| (187,170 | ) | | 
| (223,158 | ) | |
| 
Effect of translation exchange | | 
| 1,069 | | | 
| (10,557 | ) | |
| 
Plant and equipment, net | | 
$ | 189,386 | | | 
$ | 136,767 | | |
Depreciation
expense for the year ended December 31, 2025 and December 31, 2024 were $44,389 and $17,558, respectively.
**6.
INTANGIBLE ASSETS**
****
SCHEDULE OF INTANGIBLE ASSETS
| 
| | 
As of December 31, 2025 | | | 
As of December 31, 2024 | | |
| 
Trademarks | | 
$ | 12,077 | | | 
$ | 12,077 | | |
| 
Amortization | | 
| (11,215 | ) | | 
| (10,228 | ) | |
| 
Effect of translation exchange | | 
| (453 | ) | | 
| (448 | ) | |
| 
Intangible assets, net | | 
$ | 409 | | | 
$ | 1,401 | | |
Amortization
for the year ended December 31, 2025 and December 31, 2024 were $987 and $1,034, respectively.
****
**7.
OTHER RECEIVABLES, PREPAID EXPENSES AND DEPOSITS**
****
SCHEDULE OF OTHER RECEIVABLES, PREPAID EXPENSES AND DEPOSITS
| 
| | 
As of December 31, 2025 | | | 
As of December 31, 2024 | | |
| 
Other receivables | | 
$ | 3,886 | | | 
$ | 69 | | |
| 
Prepaid expenses | | 
| 8,277 | | | 
| 1,839 | | |
| 
Deposits | | 
| 14,853 | | | 
| 20,280 | | |
| 
Total other receivables, prepaid expenses and deposits | | 
$ | 27,016 | | | 
$ | 22,188 | | |
**8.
INVENTORIES**
****
SCHEDULE OF INVENTORIES
| 
| | 
As of December 31, 2025 | | | 
As of December 31, 2024 | | |
| 
Finished goods, at cost | | 
$ | 2,347 | | | 
$ | 3,350 | | |
| 
Total inventories | | 
$ | 2,347 | | | 
$ | 3,350 | | |
| F-14 | |
| | |
**DSWISS,
INC.**
**NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS**
**FOR
THE YEARS ENDED DECEMBER 31, 2025 AND 2024**
**(Currency
expressed in United States Dollars (US$), except for number of shares)**
****
**9.
OTHER PAYABLES AND ACCRUED LIABILITIES**
****
SCHEDULE OF OTHER PAYABLE AND ACCRUED LIABILITIES
| 
| | 
As of December 31, 2025 | | | 
As of December 31, 2024 | | |
| 
Other payables | | 
$ | 220,293 | | | 
$ | 229,591 | | |
| 
Accrued audit fees | | 
| 4,758 | | | 
| 13,611 | | |
| 
Accrued other expenses | | 
| 45,641 | | | 
| 47,524 | | |
| 
Accrued professional fees | | 
| 18,781 | | | 
| 11,621 | | |
| 
Total payables and accrued liabilities | | 
$ | 289,473 | | | 
$ | 302,347 | | |
**10.
FINANCE LEASE LIABILITIES**
****
The
Company purchased motor vehicles with finance lease. The
first finance lease agreement commenced on July 31, 2018 with the effective interest rate of 3.62% per annum, due through June,
2025, with principal and interest payable monthly. The second finance lease agreement commenced on December 3, 2021 with the
effective interest rate of 3.70% per annum, due through November, 2026, with principal and interest payable monthly. The third
finance lease agreement commenced on December 21, 2024 with the effective interest rate of 3.70% per annum, due through November,
2029, with principal and interest payable monthly. The fourth finance lease agreement commenced on August 17, 2025 with the
effective interest rate of 2.28% per annum, due through July, 2030, with principal and interest payable monthly. The obligation
under the finance lease is as follows:
SCHEDULE OF OBLIGATION UNDER FINANCE LEASE
| 
| | 
As of December 31, 2025 | | | 
As of December 31, 2024 | | |
| 
Finance leases | | 
$ | 139,177 | | | 
$ | 118,440 | | |
| 
Less: interest expense | | 
| (12,471 | ) | | 
| (12,146 | ) | |
| 
Net present value of finance leases | | 
| 126,706 | | | 
| 106,294 | | |
| 
| | 
| | | | 
| | | |
| 
Current portion | | 
| 35,167 | | | 
| 28,517 | | |
| 
Non-current portion | | 
| 91,539 | | | 
| 77,777 | | |
| 
Total | | 
$ | 126,706 | | | 
$ | 106,294 | | |
As
of December 31, 2025, the maturities of the finance leases for each of the years are as follows:
SCHEDULE OF MATURITIES OF FINANCE LEASE
| 
| | 
| | | |
| 
2026 | | 
| 37,429 | | |
| 
2027 | | 
| 27,915 | | |
| 
2028 | | 
| 29,341 | | |
| 
2029 | | 
| 27,140 | | |
| 
2030 | | 
| 4,881 | | |
| 
Total | | 
$ | 126,706 | | |
| F-15 | |
| | |
**DSWISS,
INC.**
**NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS**
**FOR
THE YEARS ENDED DECEMBER 31, 2025 AND 2024**
**(Currency
expressed in United States Dollars (US$), except for number of shares)**
**11.
INCOME TAXES**
(Loss)/Profit
before income tax for the years ended December 31, 2025 and December 31, 2024 is summarized as follow:
SCHEDULE
OF (LOSS)/PROFIT BEFORE INCOME TAXES
| 
| | 
For the year ended December 31, 2025 | | | 
For the year ended December 31, 2024 | | |
| 
| | 
| | | 
| | |
| 
(Loss)/Profit before income taxes | | 
| | | | 
| | | |
| 
- United States | | 
$ | (70,519 | ) | | 
$ | (43,131 | ) | |
| 
- Foreign | | 
| 9,631 | | | 
| 68,173 | | |
| 
(Loss)/Profit before
income taxes | | 
$ | (60,888 | ) | | 
$ | 30,101 | | |
Provision
for income taxes for the years ended December 31, 2025 and December 31, 2024 is summarized as follow:
SCHEDULE OF PROVISION FOR INCOME TAXES
| 
| | 
For the year ended December 31, 2025 | | | 
For the year ended December 31, 2024 | | |
| 
| | 
| | | 
| | |
| 
Current: | | 
| | | | 
| | | |
| 
Federal | | 
$ | - | | | 
$ | - | | |
| 
State | | 
| - | | | 
| - | | |
| 
Foreign | | 
| (15,972 | ) | | 
| (7,878 | ) | |
| 
Total current | | 
| (15,972 | ) | | 
| (7,878 | ) | |
| 
Deferred: | | 
| | | | 
| | | |
| 
Federal | | 
| - | | | 
| - | | |
| 
State | | 
| - | | | 
| - | | |
| 
Foreign | | 
| - | | | 
| - | | |
| 
Total deferred | | 
| - | | | 
| - | | |
| 
Total provision for income taxes | | 
$ | (15,972 | ) | | 
$ | (7,878 | ) | |
The
reconciliation of the federal statutory income tax amount and rate to the Companys effective tax rate for the years ended December
31, 2025 and December 31, 2024 is as follows:
SCHEDULE
OF EFFECTIVE INCOME TAX RATE RECONCILIATION
| 
| | 
Amount | | | 
Percent | | | 
Amount | | | 
Percent | | |
| 
Company name | | 
Year ended December 31, | | |
| 
| | 
2025 | | | 
2024 | | |
| 
| | 
Amount | | | 
Percent | | | 
Amount | | | 
Percent | | |
| 
(Loss)/Profit before income taxes | | 
| (60,888 | ) | | 
| | | | 
| 30,101 | | | 
| | | |
| 
Federal statutory tax rate | | 
| (12,786 | ) | | 
| 21.0 | % | | 
| 6,321 | | | 
| 21.0 | % | |
| 
State and local income tax, net of federal income tax effect | | 
| 14,808 | | | 
| (24.3 | )% | | 
| (9,057 | ) | | 
| (30.1 | )% | |
| 
Foreign tax effects: | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Hong Kong | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Changes in valuation allowances | | 
| (1,742 | ) | | 
| 2.8 | % | | 
| 539 | | | 
| 1.8 | % | |
| 
Foreign rate difference | | 
| (475 | ) | | 
| 0.8 | % | | 
| 147 | | | 
| 0.5 | % | |
| 
Malaysia | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Changes in valuation allowances | | 
| (497 | ) | | 
| 0.8 | % | | 
| 10,226 | | | 
| 34.0 | % | |
| 
Foreign rate difference | | 
| 62 | | | 
| (0.1 | )% | | 
| 4,090 | | | 
| 13.6 | % | |
| 
Other | | 
| (15,972 | ) | | 
| 26.2 | % | | 
| (7,878 | ) | | 
| (26.2 | )% | |
| 
Other foreign jurisdiction | | 
| 630 | | | 
| (1.0 | )% | | 
| (12,266 | ) | | 
| (40.8 | )% | |
| 
Income tax expense and effective tax rate | | 
| (15,972 | ) | | 
| 26.2 | % | | 
| (7,878 | ) | | 
| (26.2 | )% | |
*
Other foreign jurisdiction include one of the Companys subsidiary incorporated in the Seychelles with a zero corporate tax rate.
The
income taxes paid (net of refunds) by jurisdiction for the years ended December 31, 2025 and December 31, 2024, as reported in the Consolidated
Statements of Cash Flows, are as follows:
SCHEDULE
OF INCOME TAX PAID BY JURISDICTION
| 
| | 
For the year ended December 31, 2025 | | | 
For the year ended December 31, 2024 | | |
| 
| | 
| | | | 
| | | |
| 
Malaysia | | 
$ | (14,562 | ) | | 
$ | 7,470 | | |
| F-16 | |
| | |
**DSWISS,
INC.**
**NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS**
**FOR
THE YEARS ENDED DECEMBER 31, 2025 AND 2024**
**(Currency
expressed in United States Dollars (US$), except for number of shares)**
**11.
INCOME TAXES** **(CONTINUED)**
The
significant components of deferred taxes of the Company are as follows (rounded to the nearest thousand):
SCHEDULE OF DEFERRED INCOME TAX ASSETS
| 
| | 
As of December 31, 2025 | | | 
As of December 31, 2024 | | |
| 
Deferred tax assets | | 
| | | | 
| | | |
| 
Financing costs | | 
$ | 3,000 | | | 
$ | 1,000 | | |
| 
Operating lease liability | | 
| 32,000 | | | 
| - | | |
| 
Finance lease liability | | 
| 26,000 | | | 
| 22,000 | | |
| 
Net operating loss (NOL) carryforwards: | | 
| | | | 
| | | |
| 
- United States of America | | 
| 638,000 | | | 
| 567,000 | | |
| 
- Hong Kong | | 
| 621,000 | | | 
| 632,000 | | |
| 
- Malaysia | | 
| 161,000 | | | 
| 147,000 | | |
| 
Gross deferred tax assets | | 
| 1,481,000 | | | 
| 1,369,000 | | |
| 
Less: Valuation allowance | | 
| (1,449,000 | ) | | 
| (1,369,000 | ) | |
| 
Total deferred tax assets | | 
| 32,000 | | | 
| - | | |
| 
| | 
| | | | 
| | | |
| 
Deferred tax liabilities | | 
| | | | 
| | | |
| 
Operating lease right-of-use asset | | 
| 32,000 | | | 
| - | | |
| 
Finance lease right-of-use asset | | 
| - | | | 
| - | | |
| 
Total deferred tax liabilities | | 
| 32,000 | | | 
| - | | |
| 
| | 
| | | | 
| | | |
| 
Net deferred tax asset (liability) | | 
$ | - | | | 
$ | - | | |
The
table below summarizes changes in the valuation allowance for deferred tax assets for the years presented (rounded to the nearest thousand):
SCHEDULE
OF CHANGES IN VALUATION ALLOWANCE FOR DEFERRED TAX ASSET
| 
| | 
For the year ended December 31, 2025 | | | 
For the year ended December 31, 2024 | | |
| 
Valuation allowance | | 
| | | | 
| | | |
| 
Balance, beginning of year | | 
$ | 1,369,000 | | | 
$ | 1,344,000 | | |
| 
Increase in (reversal of) valuation allowance during the year | | 
$ | 80,000 | | | 
$ | 25,000 | | |
| 
Balance, end of year | | 
$ | 1,449,000 | | | 
$ | 1,369,000 | | |
The
effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad
range of income tax rates. The Company and its subsidiaries that operate in various countries: United States, Seychelles, Hong Kong and
Malaysia, that are subject to taxes in the jurisdictions in which they operate, as follows:
*United
States of America*
The
Company is registered in the State of Nevada and is subject to the tax laws of the United States of America. As of December 31, 2025,
the operations in the United States of America incurred $637,776 of cumulative net operating losses which can be carried forward to offset
future taxable income, at the tax rate of 21%. The net operating loss carry forwards begin to expire in 2038, if unutilized. The Company
has provided for a full valuation allowance of $133,933 against the deferred tax assets on the expected future tax benefits from the
net operating loss carry forwards as the management believes it is more likely than not that these assets will not be realized in the
future.
*Seychelles*
**
Under
the current laws of the Seychelles, DSwiss Holding Limited is registered as an international business company which governs by the International
Business Companies Act of Seychelles and there is no income tax charged in Seychelles.
*Hong
Kong*
DSwiss
(HK) Limited is subject to Hong Kong Profits Tax, which is charged at the statutory income tax rate of 16.5% on its assessable income.
As of December 31, 2025, the operations in the Hong Kong incurred $620,978 of cumulative net operating losses which can be carried forward
to offset future taxable income, at the tax rate of 16.5%. The Company has provided for a full valuation allowance of $102,461 against
the deferred tax assets on the expected future tax benefits from the net operating loss carry forwards as the management believes it
is more likely than not that these assets will not be realized in the future.
| F-17 | |
| | |
**DSWISS,
INC.**
**NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS**
**FOR
THE YEARS ENDED DECEMBER 31, 2025 AND 2024**
**(Currency
expressed in United States Dollars (US$), except for number of shares)**
**11.
INCOME TAXES** **(CONTINUED)**
*Malaysia*
DSwiss
Sdn Bhd and DSwiss Biotech Sdn Bhd are subject to Malaysia Corporate Tax, which is charged at the statutory income tax rate of 24%
on its assessable income. As of December 31, 2025, the operations in the Malaysia incurred $161,223 of
cumulative net operating losses which can be carried forward to offset future taxable income, at the tax rate of 24%.
The Company has provided for a full valuation allowance of $38,693 against
the deferred tax assets on the expected future tax benefits from the net operating loss carry forwards as the management believes it
is more likely than not that these assets will not be realized in the future.
**12.
CONCENTRATIONS OF RISKS**
****
(a)
Major customers
For
the year ended December 31, 2025 and 2024, the customers who accounted for 10% or more of the Companys revenue and its accounts
receivable balance at year-end are presented as follows:
SCHEDULE OF CONCENTRATION OF RISK
| 
| | 
For the year ended December 31 | | |
| 
| | 
2025 | | | 
2024 | | | 
2025 | | | 
2024 | | | 
2025 | | | 
2024 | | |
| 
| | 
Revenue | | | 
Percentage of Revenue | | | 
Accounts Receivable, Trade | | |
| 
Customer A | | 
$ | 1,000,260 | | | 
$ | 464,642 | | | 
| 34 | % | | 
| 15 | % | | 
$ | 5,622 | | | 
$ | - | | |
| 
Customer B | | 
$ | - | | | 
$ | 525,253 | | | 
| - | % | | 
| 17 | % | | 
$ | - | | | 
$ | - | | |
| 
Customer C | | 
$ | 1,233,777 | | | 
$ | 1,266,279 | | | 
| 42 | % | | 
| 41 | % | | 
$ | - | | | 
$ | - | | |
| 
| | 
$ | 2,234,037 | | | 
$ | 2,256,174 | | | 
| 76 | % | | 
| 73 | % | | 
$ | 5,622 | | | 
$ | - | | |
(b)
Major vendors
For
the year ended December 31, 2025 and 2024, the vendors who accounted for 10% or more of the Companys purchases and its accounts
payable balance at year-end are presented as follows:
| 
| | 
For the year ended December 31 | | |
| 
| | 
2025 | | | 
2024 | | | 
2025 | | | 
2024 | | | 
2025 | | | 
2024 | | |
| 
| | 
Purchases | | | 
Percentage of Purchases | | | 
Accounts Payable, Trade | | |
| 
Vendor A | | 
$ | 422,116 | | | 
$ | 573,141 | | | 
| 18 | % | | 
| 23 | % | | 
$ | 17,137 | | | 
$ | 26,056 | | |
| 
Vendor B | | 
$ | - | | | 
$ | 266,333 | | | 
| - | % | | 
| 11 | % | | 
$ | - | | | 
$ | 67,354 | | |
| 
Vendor C | | 
$ | 1,107,351 | | | 
$ | 920,628 | | | 
| 47 | % | | 
| 37 | % | | 
$ | - | | | 
$ | 15,494 | | |
| 
| | 
$ | 1,529,467 | | | 
$ | 1,760,102 | | | 
| 65 | % | | 
| 71 | % | | 
$ | 17,137 | | | 
$ | 108,904 | | |
(c)
Credit risk
Financial
instruments that are potentially subject to credit risk consist principally of accounts receivable. 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 surrounding the credit risk of specific customers, historical trends and other information.
(d)
Exchange rate risk
The
Company cannot guarantee that the current exchange rate will remain steady; therefore, there is a possibility that the Company could
post the same amount of profit for two comparable periods and because of the fluctuating exchange rate actually post higher or lower
profit depending on exchange rate of MYR and HK$ converted to US$ on that date. The exchange rate could fluctuate depending on changes
in political and economic environments without notice.
| F-18 | |
| | |
**DSWISS,
INC.**
**NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS**
**FOR
THE YEARS ENDED DECEMBER 31, 2025 AND 2024**
**(Currency
expressed in United States Dollars (US$), except for number of shares)**
**13.
LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES**
The
Company officially adopted ASC 842 for the period on and after January 1, 2019 as permitted by ASU 2016-02. ASC 842 originally required
all entities to use a modified retrospective transition approach that is intended to maximize comparability and be less
complex than a full retrospective approach. On July 30, 2018, the FASB issued ASU 2018-11 to provide entities with relief from the costs
of implementing certain aspects of the new leasing standard, ASU 2016-02 of which permits entities may elect not to recast the comparative
periods presented when transitioning to ASC 842. As permitted by ASU 2018-11, the Company elect not to recast comparative periods, thusly.
On
January 2, 2025, DSwiss Sdn Bhd (subsidiary of the Company) entered into a contract rental agreement to rent an office in Malaysia for
a period of 3 years commencing on March 1, 2025 with monthly payment in the amount of RM 12,000 per month over the course of the lease.
The Company has an option to renew for an additional period of 3 years after the end of the agreement.
As
of March 1, 2025, the Company recognized approximately US$161,099, lease liability as well as right-of-use asset for all leases (with
the exception of short-term leases) at the commencement date. Lease liabilities are measured at present value of the sum of remaining
rental payments as of March 1, 2025, with discounted rate of 6.6% adopted from Maybank Berhads base lending rate as a reference
for discount rate.
A
single lease cost is recognized over the lease term on a generally straight-line basis. All cash payments of operating lease cost are
classified within operating activities in the statement of cash flows.
As
of December 31, 2025 and December 31, 2024, operating lease right of use asset as follow:
SCHEDULE OF OPERATING LEASE RIGHT OF USE ASSETS
| 
| | 
Year ended December 31, | | |
| 
| | 
2025 | | | 
2024 | | |
| 
As of January 1, | | 
$ | 
- | | | 
$ | 
- | | |
| 
Add: New lease commenced on March 1, 2025 | | 
| 161,099 | | | 
| - | | |
| 
Accumulated amortization | | 
| (19,465 | ) | | 
| - | | |
| 
Effect of translation exchange | | 
| 13,934 | | | 
| - | | |
| 
Balance as of December 31 | | 
$ | 155,568 | | | 
$ | - | | |
As
of December 31, 2025, operating lease liability as follow:
SCHEDULE OF OPERATING LEASE LIABILITY
| 
As of January 1, 2025 | | 
$ | 
- | | |
| 
Add: New lease commenced on March 1, 2025 | | 
| 161,099 | | |
| 
Less: gross repayment | | 
| (28,137 | ) | |
| 
Add: imputed interest | | 
| 8,672 | | |
| 
Effect of translation exchange | | 
| 13,934 | | |
| 
Balance as of December 31, 2025 | | 
$ | 155,568 | | |
| 
Less: lease liability current portion | | 
| (26,089 | ) | |
| 
Lease liability non-current portion | | 
$ | 129,479 | | |
For
the year ended December 31, 2025 and 2024, the amortization of the operating lease right of use asset are $19,465 and $0 respectively.
SCHEDULE OF OPERATING LEASE OTHER INFORMATION
| 
| | 
Year ended December 31, | | |
| 
| | 
2025 | | | 
2024 | | |
| 
| | 
| | | 
| | |
| 
Cash paid for amounts included in the measurement of lease liabilities: | | 
| | | | 
| - | | |
| 
Operating cash flow from operating lease | | 
$ | 28,138 | | | 
$ | - | | |
| 
Right-of-use assets obtained in exchange for operating lease liabilities | | 
| - | | | 
| - | | |
| 
Remaining lease term for operating lease (years) | | 
| 5.2 | | | 
| - | | |
| 
Weighted average discount rate for operating lease | | 
| 6.67 | % | | 
| - | % | |
****
For
the year ended December 31, 2025 and 2024, lease expenses were $19,465 and $0 respectively.
| F-19 | |
| | |
**DSWISS,
INC.**
**NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS**
**FOR
THE YEARS ENDED DECEMBER 31, 2025 AND 2024**
**(Currency
expressed in United States Dollars (US$), except for number of shares)**
**14.
RELATED PARTY TRANSACTIONS**
For
the years ended December 31, 2025 and December 31, 2024, the Company has the following transactions with related party:
SCHEDULE OF RELATED PARTY TRANSACTION
| 
| | 
For the year ended December 31, 2025 (Audited) | | | 
For the year ended December 31, 2024 (Audited) | | |
| 
Professional Fees | | 
| | | | 
| | | |
| 
- Related party A | | 
$ | 10,293 | | | 
$ | 12,600 | | |
| 
| | 
| | | | 
| | | |
| 
Sales | | 
| | | | 
| | | |
| 
- Related party B | | 
$ | 13,336 | | | 
$ | 7,725 | | |
| 
| | 
| | | | 
| | | |
| 
Purchases | | 
| | | | 
| | | |
| 
- Related party B | | 
$ | - | | | 
$ | 8,236 | | |
The
related party A is a wholly owned subsidiary of a 7.33% shareholder of the Company.
The
related party Bs director is the founder of the Company.
**15.
SEGMENTED INFORMATION**
ASC
280, Segment Reporting establishes standards for reporting information about operating segments on a basis consistent with
the Companys internal organization structure as well as information about services categories, business segments and major customers
in financial statements. The Company has two reportable segments based on business unit, investment holding and health care products
and services and two reportable segments based on country, Malaysia and Non-Malaysia.
The
Company adopted the ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands
annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment
expenses.
In
accordance with the Segment Reporting Topic of the ASC, the Companys chief operating decision maker has been identified
as the Chief Executive Officer and President, who reviews operating results to make decisions about allocating resources and assessing
performance for the entire Company. Existing guidance, which is based on a management approach to segment reporting, establishes requirements
to report selected segment information quarterly and to report annually entity-wide disclosures about products and services, major customers,
and the countries in which the entity holds material assets and reports revenue. All material operating units qualify for aggregation
under Segment Reporting due to their similar customer base and similarities in economic characteristics; nature of products
and services; and procurement, manufacturing and distribution processes.
SCHEDULE
OF REPORTING SEGMENTS BY BUSINESS UNIT AND BY COUNTRY
| 
| | 
| | | 
| | | 
| | |
| 
| | 
For the year ended December 31, 2025 | | |
| 
By Business Unit | | 
Investment holding | | | 
Health care products and services | | | 
Total | | |
| 
| | 
| | | 
| | | 
| | |
| 
Revenue | | 
$ | - | | | 
$ | 2,920,986 | | | 
$ | 2,920,986 | | |
| 
Cost of revenue | | 
| - | | | 
| (2,356,424 | ) | | 
| (2,356,424 | ) | |
| 
Gross profit | | 
| - | | | 
| 564,562 | | | 
| 564,562 | | |
| 
Selling, general and administrative expenses and other income | | 
| (73,519 | ) | | 
| (516,951 | ) | | 
| (590,470 | ) | |
| 
Operating expenses | | 
| - | | | 
| (1,167 | ) | | 
| (1,167 | ) | |
| 
Finance cost | | 
| - | | | 
| (14,348 | ) | | 
| (14,348 | ) | |
| 
Lease expenses | | 
| - | | | 
| (19,465 | ) | | 
| (19,465 | ) | |
| 
(Loss)/Profit from operations | | 
| (73,519 | ) | | 
| 12,631 | | | 
| (60,888 | ) | |
| 
| | 
| | | | 
| | | | 
| | | |
| 
Total assets | | 
$ | 42,539 | | | 
$ | 634,597 | | | 
$ | 677,136 | | |
| 
Capital expenditure | | 
$ | - | | | 
$ | 41,031 | | | 
$ | 41,031 | | |
| 
| | 
| | | 
| | | 
| | |
| 
| | 
For the year ended December 31, 2025 | | |
| 
By Country | | 
Malaysia | | | 
Non-Malaysia | | | 
Total | | |
| 
| | 
| | | 
| | | 
| | |
| 
Revenue | | 
$ | 2,920,986 | | | 
$ | - | | | 
$ | 2,920,986 | | |
| 
Cost of revenue | | 
| (2,356,424 | ) | | 
| - | | | 
| (2,356,424 | ) | |
| 
Gross profit | | 
| 564,562 | | | 
| - | | | 
| 564,562 | | |
| 
Selling, general and administrative expenses and other income | | 
| (528,676 | ) | | 
| (61,794 | ) | | 
| (590,470 | ) | |
| 
Operating expenses | | 
| - | | | 
| (1,167 | ) | | 
| (1,167 | ) | |
| 
Finance cost | | 
| (14,348 | ) | | 
| - | | | 
| (14,348 | ) | |
| 
Lease expenses | | 
| (19,465 | ) | | 
| - | | | 
| (19,465 | ) | |
| 
Profit/(Loss) from operations | | 
| 2,073 | | | 
| (62,961 | ) | | 
| (60,888 | ) | |
| 
| | 
| | | | 
| | | | 
| | | |
| 
Total assets | | 
$ | 606,251 | | | 
$ | 70,885 | | | 
$ | 677,136 | | |
| 
Capital expenditure | | 
$ | 41,031 | | | 
$ | - | | | 
$ | 41,031 | | |
| F-20 | |
| | |
**DSWISS,
INC.**
**NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS**
**FOR
THE YEARS ENDED DECEMBER 31, 2025 AND 2024**
**(Currency
expressed in United States Dollars (US$), except for number of shares)**
**15.
SEGMENTED INFORMATION (CONTINUED)**
| 
| | 
| | | 
| | | 
| | |
| 
| | 
For the year ended December 31, 2024 | | |
| 
By Business Unit | | 
Investment holding | | | 
Health care products and services | | | 
Total | | |
| 
| | 
| | | 
| | | 
| | |
| 
Revenue | | 
$ | - | | | 
$ | 3,112,887 | | | 
$ | 3,112,887 | | |
| 
Cost of revenue | | 
| - | | | 
| (2,489,616 | ) | | 
| (2,489,616 | ) | |
| 
Gross profit | | 
| - | | | 
| 623,271 | | | 
| 623,271 | | |
| 
Selling, general and administrative expenses and other income | | 
| (41,341 | ) | | 
| (549,079 | ) | | 
| (590,420 | ) | |
| 
Operating expenses | | 
| - | | | 
| (1,203 | ) | | 
| (1,203 | ) | |
| 
Finance cost | | 
| - | | | 
| (1,547 | ) | | 
| (1,547 | ) | |
| 
(Loss)/Profit from operations | | 
| (41,341 | ) | | 
| 71,442 | | | 
| 30,101 | | |
| 
| | 
| | | | 
$ | | | 
$ | | |
| 
Total assets | | 
$ | 33,693 | | | 
$ | 602,137 | | | 
$ | 635,830 | | |
| 
Capital expenditure | | 
$ | - | | | 
$ | 105,549 | | | 
$ | 105,549 | | |
| 
| | 
| | | 
| | | 
| | |
| 
| | 
For the year ended December 31, 2024 | | |
| 
By Country | | 
Malaysia | | | 
Non-Malaysia | | | 
Total | | |
| 
| | 
| | | 
| | | 
| | |
| 
Revenue | | 
$ | 3,112,887 | | | 
$ | - | | | 
$ | 3,112,887 | | |
| 
Cost of revenue | | 
| (2,489,616 | ) | | 
| - | | | 
| (2,489,616 | ) | |
| 
Gross profit | | 
| 623,271 | | | 
| - | | | 
| 623,271 | | |
| 
Selling, general and administrative expenses and other income | | 
| (553,551 | ) | | 
| (36,869 | ) | | 
| (590,420 | ) | |
| 
Operating expenses | | 
| - | | | 
| (1,203 | ) | | 
| (1,203 | ) | |
| 
Finance cost | | 
| (1,547 | ) | | 
| - | | | 
| (1,547 | ) | |
| 
Profit/(Loss) from operations | | 
| 68,173 | | | 
| (38,072 | ) | | 
| 30,101 | | |
| 
| | 
| | | | 
$ | | | 
$ | | |
| 
Total assets | | 
$ | 551,949 | | | 
$ | 83,881 | | | 
$ | 635,830 | | |
| 
Capital expenditure | | 
$ | 105,549 | | | 
$ | - | | | 
$ | 105,549 | | |
**16.
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 financial statements are issued, the Company has evaluated all events or
transactions that occurred after December 31, 2025 up through the date the Company issued the audited consolidated financial statements.
| F-21 | |