Note 2 – Going Concern

The accompanying consolidated financial statements were prepared assuming the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. As of June 30, 2025, the Company had limited cash and working capital deficiency of $ 5,756,417. These factors, among others, raise the substantial doubt about the Company’s ability to continue as a going concern. These consolidated financial statements do not include any adjustments that may result from the outcome of these uncertainties.

The working capital deficiency was primarily caused by bank loans and payables. The bank loans had total balance of $6,002,150, and all the bank loans need to be renewed yearly and classified as current liabilities. Management is working to replace current bank loans with long-term loans to improve our capital structure. However, there is no assurance that all management’s plans will be successful. In addition, the Company had $2,872,675 of value added tax receivable which was classified as non-current assets as of June 30, 2025, the Company filed application for a tax refund in May, 2025 to enhance our liquidity.