NOTE 8 - Long-term Investment, net

On December 3, 2020, the Company entered into three separate stock purchase agreements from three individuals to purchase an aggregate of 6,000,000 shares of one of the Company’s related parties, YuanJiu Inc. (“YuanJiu”) in a total amount of NT$141,175,000 (approximately US$5,027,600 as of December 31, 2020). YuanJiu was then a listed company on the Taiwan Exchange. Albert Hsu, a member of the Company’s board of directors, is the Chairman of YuanJiu. On July 19, 2021, YuanJiu Inc. changed its name to “EJECTT INC” (“Ejectt”).

As of December 31, 2025 and 2024, the Company held 6,000,000 shares of Ejectt’s common stock, which were recorded as long-term investments and pledged as collateral for the Company’s debt obligations to Bank of Panhsin and Hsiao, Chia-Sung. Bank of Panhsin provides collateral support in connection with the issuance of convertible bonds by U.S.-based Aerkomm Inc. In prior periods, the Company sold 5,000,000 of the 6,000,000 pledged shares and subsequently reacquired 5,000,000 shares of Ejectt’s common stock; accordingly, the Company used the average acquisition cost of NT$25.58 per share, or NT$153,523,000 in total, to determine the carrying value of the long-term investment as of December 31, 2023. During the year ended December 31, 2025 and 2024, the Company evaluated several qualitative and quantitative factors and determined that the decline in the value of its investment in Ejectt was other-than-temporary, and therefore recognized an impairment loss of NT$9,320,874 (approximately US$0.3 million) and NT$101,123,141 (approximately US$3.1 million), respectively. As of December 31, 2025 and 2024, the carrying value of the investment in Ejectt was NT$43,078,985 (approximately US$1.4 million) and NT$52,399,859 (approximately US$1.7 million), respectively.

On July 20, 2023, the Taipei Exchange (the “Exchange”) announced that the securities of Ejectt Inc. would be suspended from trading on the Exchange as of that date, in accordance with Article 12-1 of the Business Rules of the Exchange due to significant changes in the scope of Ejectt’s business within a certain period before and after a change in control, that Ejectt’s new business accounted for more than 51% of its operations and due to the dismissal of independent director, Lin Yi-Bin, due to issues of independence. The Company’s management believes the suspension will have no impact on the value of its investment in the Ejectt stock. The management understood that the Ejectt’s management intended to modify Ejectt’s business such that its new business activities would constitute no more than 49% of the business of Ejectt, thereby enabling the resumption of trading in Ejectt conducting substantially the same business, as when its trading was suspended. However, Ejectt’s stock did not resume trading on the Exchange.

On July 28, 2023, the Company and Ejectt signed a non-binding letter of intent with respect to a possible merger between Aerkomm Taiwan Inc. and Ejectt. At a January 30, 2024 meeting of the shareholders of Aerkomm Taiwan, the shareholders approved pursuing a merger with Ejectt, under which Aerkomm Taiwan would be the surviving company, and an offer of merger was delivered to Ejectt on February 1, 2024. On March 4, 2024, Ejectt was officially delisted.

Aerkomm Taiwan Inc. held a shareholders’ meeting on May 23, 2024 to approve the merger with Ejectt. On the same day, the Ejectt shareholders also approved the merger and the merger agreement became effective as of that date. On May 27, 2024, Aerkomm Taiwan Inc. amended its articles of incorporation to increase its capital. Aerkomm Taiwan and Ejectt agreed in the merger agreement to merge on June 27, 2024. However, for the merger to become legally effective under Taiwanese law, it must be approved by the Taiwan Depository & Clearing Corporation. An application for approval was submitted on July 10, 2024. The merger became effective on March 11, 2026 and, pursuant to the official approval notice from the Taiwan Depository & Clearing Corporation, Ejectt’s scripless share registration was terminated as of March 11, 2026 pursuant to the Merger. As a result of the Merger, Aerkomm Taiwan will be held (i) 24,500,000 shares (21.3%) by the Company; (ii) 25,500,000 shares (22.2%) by dMobile System Co., Ltd. (the real party in interest of whom is the Company subject to dMobile’s payment to the Company for such shares); and (iii) 65,113,314 shares (56.6%) by the former shareholders of Ejectt. During the year ended December 31, 2025 and 2024, the Company recorded impairment of $299,069 and $3,149,625 against investment in Ejectt, respectively.

As of December 31, 2025 and 2024, 6,000,000 shares of Ejectt’s common stock were restricted.

As of December 31, 2025 and 2024, through Aerkomm Taiwan and Aircom Telecom the Company held approximately 9.22% of the issued and outstanding shares of Ejectt.

On September 30, 2022, the Company entered into a stock purchase agreement to purchase common stock of Shinbao in a total amount of NT$95,000,000 (approximately $2,897,225) for Shinbao’s 7,500,000 shares (25% of total shares). The Company paid NT$35,000,000 (approximately $1,115,716 and $1,067,399, as of December 31, 2025 and 2024, respectively) as downpayment. As of December 31, 2025, the transaction has not been completed, and the Company does not hold any equity interest in Shinbao. Shinbao is a privately-held company in Taiwan. During the year ended December 31, 2024, the Company reviews several factors and determined that the decline in value of the prepaid investment in Shinbao was other-than-temporary and recognized an impairment of NT$17,647,368 (approximately US$0.6 million). As of December 31, 2025, the value of prepaid investment in Shinbao was NT$17,352,632 (approximately US$0.6 million). For the year ended December 31, 2025, the Company recorded impairments of $0 against prepaid investment in Shinbao.

As of December 31, 2025 and 2024, the long-term investment was as follows: