CONCENTRATIONS |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| CONCENTRATIONS | |
| CONCENTRATIONS | NOTE 13 — CONCENTRATIONS Political and economic risk While the Company’s operations are based in the United States, its primary revenue was historically derived from the PRC markets. Since the first half of 2025, the Company’s primary market has been shifted to the U.S. domestic market. However, the Company’s logistics services primarily cater to customers engaged in cross-border trade between the U.S. and the PRC. As such, the Company’s business, financial condition, and results of operations may be influenced by political, economic, and legal environments in the U.S. and the PRC, as well as by the general states of the U.S. and the PRC economy. The Company’s results may be adversely affected by changes in the political, regulatory, and social conditions in the U.S. and the PRC. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations, including its organization and structure disclosed in Note 1, such experience may not be indicative of future results. Recent tariff actions imposed by governments of the U.S. and the PRC present risks to the Company’s logistics and warehousing operations, potentially affecting shipping volumes, warehouse utilization, and customer demand. The Company has been monitoring trade policy developments closely. Credit risk As of June 30, 2025 and 2024, all of the Company’s cash was on deposit at financial institutions in the U.S., which are insured by the Federal Deposit Insurance Corporation subject to certain limitations. The Company has not experienced any losses in such accounts. Concentrations The Company has undergone a business transformation since the acquisition of Edward, which happened in February 2024 and TWEW in December 2024 (see also NOTE 8 — Intangible Asset and Goodwill). As of the date of this quarterly report, the Company’s logistic and warehousing business is still in its early development stage. |