v3.26.1
RESTATEMENT (Tables)
 12 Months Ended
Dec. 31, 2024
Disclosure Restatement Abstract  
Restatement - Schedule of Condensed Balance Sheet

The effects of the restatement on the consolidated balance sheet as of December 31, 2023, are summarized in the following table:

Restatement - Schedule of Condensed Balance Sheet

 

                     
   December 31, 2023
   As Previously Reported 

Restatement

 

Note

 

As Restated

Current Assets            
Cash  $72,223,894    —        $72,223,894 
Accounts receivable, net   4,865,696    —         4,865,696 
Inventories, net   577,229    —         577,229 
Prepayments and deposits   8,395,290    —         8,395,290 
Other receivables   7,482    —         7,482 
Total current assets   86,069,591    —         86,069,591 
Non-Current Assets                    
Property, plant and equipment, net   122,188,023    (9,960,511)   (b)    112,227,512 
Finance lease right-of use assets   83,115    9,960,511    (b)    10,043,626 
Operating lease right-of-use assets   6,699,784    —         6,699,784 
Prepaid land leases, net of current portion   9,772,170    —         9,772,170 
Deferred tax assets, net   1,859,025    —         1,859,025 
Total non-current assets   140,602,117    —         140,602,117 
Total Assets   226,671,708    —         226,671,708 
                     
Liabilities and Stockholders’ Equity                    
Current Liabilities                    
Accounts payable and accrued expenses  $8,833,936    —        $8,833,936 
Taxes payable-current   475,630    —         475,630 
Advance from customer   42,705    —         42,705 
Amount due to related parties   2,586,658    —         2,586,658 
Finance lease liability, current portion   172,625    —         172,625 
Operating lease liabilities, current portion   473,653    —         473,653 
Total current liabilities   12,585,207    —         12,585,207 
Non-Current Liabilities                    
Finance lease liability, net of current portion   1,312,950    —         1,312,950 
Operating lease liabilities, net of current portion   7,525,255    —         7,525,255 
Total non-current liabilities   8,838,205    —         8,838,205 
Total Liabilities   21,423,412    —         21,423,412 
                     
Commitment and Contingencies   —     —         — 
                     
Stockholders’ Equity                    
PREFERRED STOCK; $0.001 par value; 1,000,000 shares authorized; none outstanding    —     —          — 
COMMON STOCK; $0.0005 par value; 80,000,000 shares authorized; 1,120,145 shares issued; and 1,091,562 shares outstanding as of December 31, 2023(1)   24,623    (24,063)   (a)    560 
Treasury stock; 28,583 shares as of December 31, 2023 at cost   (1,372,673)   —         (1,372,673)
Additional paid-in capital   101,688,262    24,063    (a)    101,712,325 
Retained earnings unappropriated   96,294,256    —         96,294,256 
Retained earnings appropriated   26,667,097    —         26,667,097 
Accumulated other comprehensive loss   (18,053,269)   —         (18,053,269)
Total Stockholders’ Equity   205,248,296    —         205,248,296 
Total Liabilities and Stockholders’ Equity  $226,671,708    —        $226,671,708 

 

The effects of the restatement on the consolidated balance sheet as of December 31, 2024, are summarized in the following table:

  

                     
   December 31, 2024
   As Previously Reported  Restatement  Note  As Restated
Current Assets                    
Cash  $10,075,162    —        $10,075,162 
Accounts receivable, net   564,523    —         564,523 
Inventories, net   315,371    —         315,371 
Prepayments and deposits   6,376,656    —         6,376,656 
Amount due from related parties   25,040    —         25,040 
Other receivables   94,074    —         94,074 
Total current assets   17,450,826    —         17,450,826 
Non-Current Assets                    
Property, plant and equipment, net   136,143,177    (46,712,127)   (b)    89,431,050 
Finance lease right-of-use assets   76,868    45,078,420    (b)    45,155,288 
Operating lease right-of-use assets   6,169,855    —         6,169,855 
Prepaid land leases, net of current portion   9,615,269    —         9,615,269 
Deferred tax assets, net   —    —         — 
Total non-current assets   152,005,169    (1,633,707)        150,371,462 
Total Assets   169,455,995    (1,633,707)        167,822,288 
                     
Liabilities and Stockholders’ Equity                    
Current Liabilities                    
Accounts payable and accrued expenses  $14,323,458    (7,878,181)   (c)   $6,445,277 
Taxes payable-current   113,999    —         113,999 
Amount due to related parties   2,584,808    —         2,584,808 
Finance lease liability, current portion   217,743    3,124,550    (c)    3,342,293 
Operating lease liabilities, current portion   491,850    —         491,850 
Total current liabilities   17,731,858    (4,753,631)        12,978,227 
Non-Current Liabilities                    
Finance lease liability, net of current portion   1,075,865    4,014,019    (c)    5,089,884 
Operating lease liabilities, net of current portion   6,941,602    —         6,941,602 
Total non-current liabilities   8,017,467    4,014,019         12,031,486 
Total Liabilities   25,749,325    (739,612)        25,009,713 
                     
Commitment and Contingencies   —    —         — 
                     
Stockholders’ Equity                    
PREFERRED STOCK; $0.001 par value; 1,000,000 shares authorized; none outstanding    —     —          — 
COMMON STOCK; $0.0005 par value; 80,000,000 shares authorized; 1,120,145 shares issued; and 1,091,562 shares outstanding as of December 31, 2024, and 2023   24,623    (24,063)   (a)    560 
Treasury stock; 28,583 shares as of December 31, 2024 at cost   (1,372,673)   —         (1,372,673)
Additional paid-in capital   101,688,262    24,063    (a)    101,712,325 
Share to be issued   194,700    —         194,700 
Retained earnings unappropriated   37,358,804    (964,920)   (d)    36,393,884 
Retained earnings appropriated   26,667,097    —         26,667,097 
Accumulated other comprehensive loss   (20,854,143)   70,825    (e)    (20,783,318)
Total Stockholders’ Equity   143,706,670    (894,095)        142,812,575 
Total Liabilities and Stockholders’ Equity  $169,455,995    (1,633,707)       $167,822,288 

 

The following descriptions of the restatement adjustments to the balance sheet excludes a description of adjustments previously identified and concluded as immaterial that were also corrected as part of the restatement.

 

(a) The change in common stock and additional paid-in capital is due to the company's 1-for-10 reverse stock split on October 27, 2025.

 

(b) As of December 31, 2023, in the fixed assets, the original value of the buildings subject to reclassification amounted to $29,863,200. The Company reclassified them based on their acquisition methods. The self-built portion was reclassified as "leasehold improvements" in the property, plant and equipment, with an original value of $3,563,053. The leased portion was reclassified as finance lease right-of use assets, with an original value of $26,300,149, accumulated amortization of $16,339,638, and a net value of $9,960,511.

 

As of December 31, 2024, in the fixed assets, the original value of the buildings subject to reclassification amounted to $68,476,868, The Company reclassified them based on their acquisition methods. The self-built portion was reclassified as "leasehold improvements" in the property, plant and equipment, with an original value of $3,507,367. The leased portion was reclassified as finance lease right-of use assets, with an original value of $64,189,590, accumulated amortization of $19,111,170, and a net value of $45,078,720.

 

(c) The amount of $7,878,181 in accounts payable and accrued expenses was reclassified as finance lease liability relating to the salt pans. The finance lease liabilities including the current portion of $3,124,550 and the non-current portion of $4,014,019.

 

(d) Regarding the decrease in retained earnings unappropriated, the main reason was that general and administrative expenses increased by $964,920. The increase in general and administrative expenses was due to the reclassification of finance lease right-of-use asset. Previously, depreciation was calculated after deducting 5% residual value from the fixed assets, but now there is no residual value for amortization of finance lease right-of-use asset calculation.

 

(e) The change in the accumulated other comprehensive loss represents the foreign currency translation differences in the financial statements.
Restatement - Schedule of statement of operations income (loss)

The effects of the restatement on the consolidated statement of operations income (loss) for the year ended December 31, 2023, are summarized in the following table:

 

 

                     
   December 31, 2023
   As Previously Reported  Restatement  Note  As Restated
NET REVENUE  $30,043,790    —        $30,043,790 
                     
OPERATING COSTS AND EXPENSE                    
Cost of revenues   (28,089,953)   —         (28,089,953)
Sales and marketing expenses   (59,055)   —         (59,055)
Direct labor and factory overheads incurred during plant shutdown   (9,544,675)   —         (9,544,675)
General and administrative expenses   (4,240,832)   —         (4,240,832)
TOTAL OPERATING COSTS AND EXPENSE   (41,934,515)   —         (41,934,515)
                     
LOSS FROM OPERATIONS   (11,890,725)   —         (11,890,725)
                     
OTHER INCOME (EXPENSE)                    
Interest expense   (105,209)   —         (105,209)
Interest income   250,128    —         250,128 
Expenditure on water pollution treatment   (46,510,856)   —         (46,510,856)
LOSS BEFORE INCOME TAXES   (58,256,662)   —         (58,256,662)
                     
INCOME TAX EXPENSE   (3,538,617)   —         (3,538,617)
NET LOSS  $(61,795,279)   —        $(61,795,279)
                     
COMPREHENSIVE LOSS:                    
NET LOSS  $(61,795,279)   —        $(61,795,279)
OTHER COMPREHENSIVE (LOSS) INCOME                    
- Foreign currency translation adjustments   (5,025,980)   —         (5,025,980)
TOTAL COMPREHENSIVE LOSS  $(66,821,259)   —        $(66,821,259)
                     
BASIC AND DILUTED LOSS PER SHARE  $(5.92)   (52.24)   (c)   $(58.16)
                     
BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF SHARES:   10,435,965    (9,373,499)   (c)    1,062,466 

 

The effects of the restatement on the consolidated statement of operations income (loss) for the year ended December 31, 2024, are summarized in the following table:

 

                     
   December 31, 2024
   As Previously Reported  Restatement  Note  As Restated
NET REVENUE  $7,661,010    —        $7,661,010 
                     
OPERATING COSTS AND EXPENSE                    
Cost of revenues   (14,746,741)   —         (14,746,741)
Sales and marketing expenses   (46,264)   —         (46,264)
Direct labor and factory overheads incurred during plant shutdown   (8,880,643)   —         (8,880,643)
General and administrative expenses   (5,271,011)   (964,920)   (a)    (6,235,931)
TOTAL OPERATING COSTS AND EXPENSE   (28,944,659)   (964,920)        (29,909,579)
                     
LOSS FROM OPERATIONS   (21,283,649)   (964,920)        (22,248,569)
                     
OTHER INCOME (EXPENSE)                    
Interest expense   (91,901)   —         (91,901)
Interest income   80,258    —         80,258 
Other expenses, net   (50,470)   —         (50,470)
Loss on disposal of property, plant and equipment   (29,169,008)   —         (29,169,008)
Impairment of property, plant and equipment   (6,772,500)   —         (6,772,500)
LOSS BEFORE INCOME TAXES   (57,287,270)   (964,920)        (58,252,190)
                     
INCOME TAX EXPENSE   (1,648,182)   —         (1,648,182)
NET LOSS  $(58,935,452)   (964,920)       $(59,900,372)
                     
COMPREHENSIVE LOSS:                    
NET LOSS  $(58,935,452)   (964,920)       $(59,900,372)
OTHER COMPREHENSIVE (LOSS) INCOME                    
- Foreign currency translation adjustments   (2,800,874)   70,825    (b)    (2,730,049)
TOTAL COMPREHENSIVE LOSS  $(61,736,326)   (894,095)       $(62,630,421)
                     
BASIC AND DILUTED LOSS PER SHARE  $(5.49)   (49.39)   (c)   $(54.88)
                     
BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF SHARES:   10,726,924    (9,635,362)   (c)    1,091,562 

 

The following descriptions of the restatement adjustments to the statement of operations exclude a description of adjustments previously identified and concluded as immaterial they were also corrected as part of the restatement.

 

(a)  The increase of $964,920 in general and administrative expenses was due to the reclassification of finance lease right-of-use asset. Previously, depreciation was calculated after deducting 5% residual value from the fixed assets, but now there is no residual value for amortization of finance lease right-of-use asset calculation.

 

(b) The change in the accumulated other comprehensive loss represents the foreign currency translation differences in the financial statements.

 

(c)  The change in basic and diluted loss per share is due to the company's 1-for-10 reverse stock split on October 27, 2025.
Restatement - Schedule of consolidated statement of stockholders' deficit

The effects of the restatement on the consolidated statement of stockholders' deficit for the year ended December 31, 2023 are summarized in the following table:

 

                                                        
      Common stock              Accumulated   
      Number  Number  Number        Additional  Retained  Retained  other   
   Restatement  of shares  of shares  of treasury     Treasury  paid-in  earnings  earnings  comprehensive   
   Reference  issued  outstanding  stock  Amount  stock  capital  unappropriated  appropriated  Income(loss)  Total
                                  
YEAR ENDED DECEMBER 31, 2023 (As Previously Reported)                                                       
BALANCE AT JANUARY 1, 2023        10,717,754    10,431,924    285,830   $ 24,476   $ (1,372,673)  $ 101,237,059   $158,089,535   $26,667,097   $(13,027,289)  $271,618,205 
Restricted shares to be issued for service        295,000    295,000    —    147    —    451,203　    —    —    —    451,350 
Currency translation adjustment             —    —    —    —    —    —    —    (5,025,980)   (5,025,980)
Net loss for year ended December 31, 2023        —    —    —    —    —    —    (61,795,279)   —    —    (61,795,279)

BALANCE AT

DECEMBER 31, 2023

        11,012,754    10,726,924    285,830   $ 24,623   $ (1,372,673)  $ 101,688,262   $96,294,256   $26,667,097   $(18,053,269)  $205,248,296 
YEAR ENDED DECEMBER 31, 2023 (Restatement Impact)                                                       
BALANCE AT JANUARY 1, 2023   (a)    (9,627,109)   (9,369,862)   (257,247)   $(23,931)   —   $ 23,931    —    —    —    — 
Restricted shares to be issued for service   (a)    (265,500)   (265,500)   —    (132)   —    132    —    —    —    — 
Currency translation adjustment        —    —    —    —    —    —    —    —    —    — 
Net loss for year ended December 31, 2023        —    —    —    —    —    —    —    —    —    — 

BALANCE AT

DECEMBER 31, 2023

   (a)    (9,892,609)   (9,635,362)   (257,247)  $ (24,063)   —   $ 24,063    —    —    —    — 
YEAR ENDED DECEMBER 31, 2023 (As Restated)                                                       
BALANCE AT JANUARY 1, 2023        1,090,645    1,062,062    28,583    $545   $ (1,372,673)  $ 101,260,990   $158,089,535   $26,667,097   $(13,027,289)  $271,618,205 
Restricted shares to be issued for service        29,500    29,500         15         451,335                   451,350 
Currency translation adjustment                                                (5,025,980)   (5,025,980)
Net loss for year ended December 31, 2023                                      (61,795,279)             (61,795,279)

BALANCE AT

DECEMBER 31, 2023

        1,120,145    1,091,562    28,583    $560   $ (1,372,673)  $ 101,712,325   $96,294,256   $26,667,097   $(18,053,269)  $205,248,296 

 

The effects of the restatement on the consolidated statement of stockholders' deficit for the year ended December 31, 2024 are summarized in the following table: 

 

                                                             
      Common stock                 Accumulated   
      Number  Number  Number           Additional  Retained  Retained  other   
   Restatement  of shares  of shares  of treasury     Treasury  Share to be   paid-in  earnings  earnings  comprehensive   
   Reference  issued  outstanding  stock  Amount  stock  issued  capital  unappropriated  appropriated  Income(loss)  Total
                                     
 YEAR ENDED DECEMBER 31, 2024 (As Previously Reported)                                                            
BALANCE AT JANUARY 1, 2024        11,012,754    10,726,924    285,830   $ 24,623   $ (1,372,673)   —   $ 101,688,262   $96,294,256   $26,667,097   $(18,053,269)  $205,248,296 
Restricted shares to be issued for service        —    —    —    —    —    194,700    —    —    —    —    194,700 
Currency translation adjustment             —    —    —    —    —    —    —    —    (2,800,874)   (2,800,874)
Net loss for year ended December 31, 2024        —    —    —    —    —    —    —    (58,935,452)   —    —    (58,935,452)

BALANCE AT

DECEMBER 31, 2024

        11,012,754    10,726,924    285,830   $ 24,623   $ (1,372,673)  $ 194,700   $ 101,688,262   $37,358,804   $26,667,097   $(20,854,143)  $143,706,670 
YEAR ENDED DECEMBER 31, 2024(Restatement Impact)                                                            
BALANCE AT JANUARY 1, 2024   (a)    (9,892,609)   (9,635,362)   (257,247)  $ (24,063)   —    —   $ 24,063    —    —    —    — 
Restricted shares to be issued for service                                                            
Currency translation adjustment   (c)    —    —    —    —    —    —    —         —    70,825    70,825 
Net loss for year ended December 31, 2024   (b)    —    —    —    —    —    —    —    (964,920)   —    —    (964,920)

BALANCE AT

DECEMBER 31, 2024

   (a)    (9,892,609)   (9,635,362)   (257,247)  $ (24,063)   —    —   $ 24,063   $ (964,920)   —   $ 70,825   $ (894,095)
YEAR ENDED DECEMBER 31, 2024 (As Restated)                                                            
BALANCE AT JANUARY 1, 2024        1,120,145    1,091,562    28,583   $ 560   $ (1,372,673)   —   $ 101,712,325   $96,294,256   $26,667,097   $(18,053,269)  $205,248,296 
Restricted shares to be issued for service        —    —    —    —    —    194,700    —    —    —    —    194,700 
Currency translation adjustment        —    —    —    —    —    —    —    —    —    (2,730,049)   (2,730,049)
Net loss for year ended December 31, 2024        —    —    —    —    —    —    —    (59,900,372)   —    —    (59,900,372)

BALANCE AT

DECEMBER 31, 2024

 

        1,120,145    1,091,562    28,583   $ 560   $ (1,372,673)  $ 194,700   $ 101,712,325   $36,393,884   $26,667,097   $(20,783,318)  $ 142,812,575 

  

The following descriptions of the restatement adjustments to the consolidated statement of stockholders' deficit excludes a description of adjustments previously identified and concluded as immaterial the were also corrected as part of the restatement.

 

(a) The change in common stock and additional paid-in capital is due to the company's 1-for-10 reverse stock split on October 27, 2025.

 

(b) Regarding the decrease in retained earnings unappropriated, the main reason was that general and administrative expenses increased by $964,920. The increase of general and administrative expenses was due to the reclassification of finance lease right-of-use asset. Previously, depreciation was calculated after deducting 5% residual value from the fixed assets, but now there is no residual value for amortization of finance lease right-of-use asset calculation.

 

(c) The change in the accumulated other comprehensive loss represents the foreign currency translation differences in the financial statements.
Restatement - Schedule of consolidated statement of cash flows

The effects of the restatement on the consolidated statement of cash flows for the year ended December 31, 2023, are summarized in the following table:

 

                     
   December 31, 2023
   As Previously Reported  Restatement  Note  As Restated
CASH FLOWS FROM OPERATING ACTIVITIES                    
Net loss  $(61,795,279)   —        $(61,795,279)
Adjustments to reconcile net income to net cash provided by (used in) operating activities:                    
Amortization on capital lease   96,914    —         96,914 
Depreciation and amortization   27,139,589    (1,279,367)   (a)    25,860,222 
Deferred tax asset   3,215,727    —         3,215,727 
Stock-based compensation expense   451,350    —         451,350 
Bad debt expense   431    —         431 
Impairment of inventory   230,776    —         230,776 
Amortization of operating lease right-of-use asset   887,603    —         887,603 
Amortization of finance lease right-of-use asset   —    1,279,367    (a)    1,279,367 
Loss on disposal of property, plant and equipment   —    —         — 
Changes in assets and liabilities                    
Accounts receivable   410,057    —         410,057 
Inventories   769,543    —         769,543 
Prepayment and deposits   (4,268,797)   —         (4,268,797)
Advance from customers   42,945    —         42,945 
Other receivables   (6,849)   —         (6,849)
Accounts and Other payable and accrued expenses   1,114,904    —         1,114,904 
Taxes payable   (213,480)   —         (213,480)
Lease liabilities   (827,285)   —         (827,285)
Net cash used in operating activities   (32,751,851)   —         (32,751,851)
                     
CASH FLOWS FROM INVESTING ACTIVITIES                 
Purchase of property, plant and equipment   —    —         — 
Interest-free loan lent to related parties   —    —         — 
Net cash used in investing activities    —     —         — 
                     
CASH FLOWS FROM FINANCING ACTIVITIES                    
Repayment of finance leases obligation   (267,810)   —         (267,810)
Proceeds from interest-free loan from a related party   —    —         — 
Net cash used in financing activities   (267,810)   —         (267,810)
         —           
EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS   (2,982,659)   —         (2,982,659)
NET DECREASE IN CASH AND CASH EQUIVALENTS   (36,002,320)   —         (36,002,320)
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR   108,226,214    —         108,226,214 
CASH AND CASH EQUIVALENTS - END OF YEAR  $72,223,894    —        $72,223,894 

 

                    
December 31, 2023

As Previously

Reported

 Restatement Note As Restated
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION                
Cash paid during the year for:                
Paid for taxes $6,413,065   —     $6,413,065 
Interest on finance lease obligation $96,914   —     $96,914 
Paid for Flood Prevention Project $48,384,711   —     $48,384,711 

 

SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES 

 

 

The effects of the restatement on the consolidated statement of cash flows for the year ended December 31, 2024, are summarized in the following table:

 

                     
  

December 31, 2024

  As Previously Reported  Restatement 

Note

 

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES            
Net loss  $(58,935,452)   (964,920)   (b)   $(59,900,372)
Adjustments to reconcile net income to net cash provided by (used in) operating activities:                    
Amortization on capital lease   91,901    108,124    (a)    200,025 
Depreciation and amortization   18,007,875    (2,188,048)   (a)    15,819,827 
Deferred tax asset   1,632,978    —         1,632,978 
Stock-based compensation expense   194,700    —         194,700 
Bad debt expense   1,669,002    —         1,669,002 
Impairment of inventory   989,035    —         989,035 
Impairment of property plant and equipment   6,772,500    —         6,772,500 
Amortization of operating lease right-of-use asset   877,809    —         877,809 
Amortization of finance lease right-of-use asset   —    3,045,602    (a)    3,045,602 
Loss on disposal of property, plant and equipment   29,169,008    —         29,169,008 
Changes in assets and liabilities                    
Accounts receivable   4,264,140    —         4,264,140 
Inventories   (733,302)   —         (733,302)
Prepayment and deposits   248,817    —         248,817 
Advance from customers   (42,471)   —         (42,471)
Other receivables   (87,515)   —         (87,515)
Accounts and Other payable and accrued expenses   (2,191,652)   —         (2,191,652)
Taxes payable   (357,954)   —         (357,954)
Lease liabilities   (894,351)   —         (894,351)
Net cash provided by operating activities   675,068    758         675,826 
                     
CASH FLOWS FROM INVESTING ACTIVITIES                    
Purchase of property, plant and equipment   (60,526,213)   31,602,571    (c)    (28,923,642)
Interest-free loan lent to related parties   (25,275)   —         (25,275)
Net cash used in investing activities   (60,551,488)   31,602,571    (c)    (28,948,917)
                     
CASH FLOWS FROM FINANCING ACTIVITIES                    
Repayment of finance leases obligation   (264,094)   (31,602,571)   (c)    (31,866,665)
Proceeds from interest-free loan from a related party   14,854    —         14,854 
Net cash used in financing activities   (249,240)   (31,602,571)   (c)    (31,851,811)
                     
EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS   (2,023,072)   (758)   (d)    (2,023,830)
NET DECREASE IN CASH AND CASH EQUIVALENTS   (62,148,732)   —         (62,148,732)
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR   72,223,894    —         72,223,894 
CASH AND CASH EQUIVALENTS - END OF YEAR  $10,075,162    —        $10,075,162 

 

 

   December 31, 2024
   As Previously Reported  Restatement  Note  As Restated
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION            
Cash paid during the year for:            
Paid for taxes  $1,520,292    —        $1,520,292 
    Interest on finance lease obligation  $91,901    108,124    (a)   $200,025 
Paid for Flood Prevention Project  $—    —        $— 
                    

SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES

  

The following descriptions of the restatement adjustments to the statement of cash flows excludes a description of adjustments previously identified and concluded as immaterial that were also corrected as part of the restatement.

 

(a) This restatement is due to the reclassification of buildings without property ownership certificates in fixed assets. The Company reclassified them based on their acquisition methods. The self-built portion was reclassified as "leasehold improvements" in the property, plant and equipment. The leased portion was reclassified as finance lease right-of-use assets.

 

(b) Regarding the increase in net loss, the main reason was that general and administrative expenses increased by $964,920. The increase in general and administrative expenses was due to the reclassification of finance lease right-of-use asset. Previously, depreciation was calculated after deducting 5% residual value from the fixed assets, but now there is no residual value for amortization of finance lease right-of-use asset calculation.

 

(c) Fixed assets without property ownership certificates have been reclassified as finance lease right-of use assets, resulting in an amount of $31,602,571.

 

(d) The change in the accumulated other comprehensive loss represents the foreign currency translation differences in the financial statements.
Restatement - Schedule of Condensed Balance Sheet

The effects of the restatement on the parent company only balance sheet as of December 31, 2023, are summarized in the following table:

Restatement - Schedule of Condensed Balance Sheet

                     
   December 31, 2023 
  

As Previously

Reported

   Restatement   Note   As Restated 
Current Assets               
Prepayments and deposits  $ —    —        $ — 
Total Current Assets   —     —         — 
Non-Current Assets                   
Interests in subsidiaries   144,749,406    —         144,749,406 
Amounts due from group companies   62,288,744    —       62,288,744 
Deferred tax assets, net   —    —         — 
Total non-current assets   207,038,150    —         207,038,150 
Total Assets  $207,038,150    —        $207,038,150 
                     
Liabilities and Stockholders’ Equity                    
Current Liabilities                    
Other payables and accrued expenses  $185,042    —        $185,042 
Amounts due to related parties   1,462,110    —         1,462,110 
Amounts due to group companies   142,702    —         142,702 
Total Current Liabilities   1,789,854    —         1,789,854 
Total Liabilities  $1,789,854    —        $1,789,854 
                     
Stockholders’ Equity                    
PREFERRED STOCK; $0.001 par value; 1,000,000 shares authorized; none outstanding  $—    —        $— 
COMMON STOCK; $0.0005 par value; 80,000,000 shares authorized; 1,120,145 shares issued; and 1,091,562 shares outstanding as of December 31, 2023   24,623    (24,063)   (a)    560 
Treasury stock; 28,583 shares as of December 31, 2023 at cost   (1,372,673)   —         (1,372,673)
Additional paid-in capital   101,688,262    24,063   (a)    101,712,325 
Share to be issued   —    —         — 
Retained earnings unappropriated   96,294,256    —         96,294,256 
Retained earnings appropriated   26,667,097    —         26,667,097 
Accumulated other comprehensive loss   (18,053,269)   —         (18,053,269)
Total Stockholders’ Equity   205,248,296    —         205,248,296 
Total Liabilities and Stockholders’ Equity  $207,038,150    —        $207,038,150 

 

(a) The change in common stock and additional paid-in capital is due to the company's 1-for-10 reverse stock split on October 27, 2025.

 

The effects of the restatement on the parent company only balance sheet as of December 31, 2024, are summarized in the following table:

 

                     
   December 31, 2024 
  

As Previously

Reported

   Restatement   Note   As Restated 
Current Assets               
Prepayments and deposits  $—    —        $— 
Total Current Assets   —    —         — 
Non-Current Assets                   
Interests in subsidiaries   83,755,560    (894,095)   (c)(d)     82,861,465 
Amounts due from group companies   69,821,271    (7,878,181)   (a)    61,943,090 
Deferred tax assets, net   —    —         — 
Total non-current assets   153,576,831    (8,772,276)        144,804,555 
Total Assets  $153,576,831    (8,772,276)       $144,804,555 
                     
Liabilities and Stockholders’ Equity                    
Current Liabilities                    
Other payables and accrued expenses  $8,265,349    (7,878,181)   (a)   $387,168 
Amounts due to related parties   1,462,110    —         1,462,110 
Amounts due to group companies   142,702    —         142,702 
Total Current Liabilities   9,870,161    (7,878,181)        1,991,980 
Total Liabilities  $9,870,161    (7,878,181)       $1,991,980 
                     
Stockholders’ Equity                    
PREFERRED STOCK; $0.001 par value; 1,000,000 shares authorized; none outstanding  $—    —        $— 
COMMON STOCK; $0.0005 par value; 80,000,000 shares authorized; 1,120,145 shares issued; and 1,091,562 shares outstanding as of December 31, 2024   24,623    (24,063)   (b)    560 
Treasury stock; 28,583 shares as of December 31, 2024 and December 31, 2023 at cost   (1,372,673)   —         (1,372,673)
Additional paid-in capital   101,688,262    24,063   (b)    101,712,325 
Share to be issued   194,700    —         194,700 
Retained earnings unappropriated   37,358,804    (964,920)   (c)    36,393,884 
Retained earnings appropriated   26,667,097    —         26,667,097 
Accumulated other comprehensive loss   (20,854,143)   70,825   (d)    (20,783,318)
Total Stockholders’ Equity   143,706,670    (894,095)        142,812,575 
Total Liabilities and Stockholders’ Equity  $153,576,831    (8,772,276)       $144,804,555 

 

(a) The amount of $7,878,181 in accounts payable and accrued expenses was reclassified as finance lease liability relating to salt pans. The finance lease liabilities including the current portion of $3,124,550 and the non-current portion of $4,014,019.

 

(b) The change in common stock and additional paid-in capital is due to the company's 1-for-10 reverse stock split on October 27, 2025.

 

(c) Regarding the decrease in retained earnings unappropriated, the main reason was that general and administrative expenses increased by $964,920. The increase of general and administrative expenses was due to the reclassification of finance lease right-of-use asset. Previously, depreciation was calculated after deducting 5% residual value from the fixed assets, but now there is no residual value for amortization of finance lease right-of-use asset calculation.

 

(d) The change in the accumulated other comprehensive loss represents the foreign currency translation differences in the financial statements.
Restatement - Schedule of statement of operations income (loss)

The effects of the restatement on the parent company only statement of comprehensive income (loss) for the year ended December 31, 2024, are summarized in the following table:

 

                     
   December 31, 2024 
  

As Previously

Reported

   Restatement   Note   As Restated 
OPERATING EXPENSES                    
General and administrative expenses  $(742,480)    —        $(742,480)
TOTAL OPERATING EXPENSES   (742,480)    —         (742,480)
OTHER EXPENSES                    
Interest expense   —    —         — 
TOTAL OTHER EXPENSES   —    —         — 
TOTAL EXPENSES   (742,480)   —         (742,480)
Equity in net loss of subsidiaries   (58,192,972)   (964,920)   (a)    (59,157,892)
LOSS BEFORE INCOME TAXES   (58,935,452)   (964,920)   (a)    (59,900,372)
INCOME TAXES   —    —         — 
NET LOSS  $(58,935,452)   (964,920)       $(59,900,372)
Restatement - Schedule of consolidated statement of cash flows

The effects of the restatement on the parent company only statement of cash flows for the year ended December 31, 2024, are summarized in the following table:

                     
   December 31, 2024 
  

As Previously

Reported

   Restatement   Note   As Restated 
CASH FLOWS FROM OPERATING ACTIVITIES                    
Net Loss  $(58,935,452)   (964,920)   (a)   $(59,900,372)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:                    
Equity loss in unconsolidated subsidiaries   58,192,972    964,920    (a)    59,157,892 
Stock-based compensation expense-options   —    —         — 
Shares issued from treasury stock for services   —    —         — 
Changes in assets and liabilities:   —    —         — 
Other payables and accrued expenses   396,825    —         396,825 
Net cash used in operating activities   (345,655)   —         (345,655)
CASH FLOWS FROM FINANCING ACTIVITIES                    
Advances from group companies   345,655    —         345,655 
Net cash provided by financing activities   345,655    —         345,655 
NET INCREASE IN CASH AND CASH EQUIVALENTS   —    —         — 
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR   —    —         — 
CASH AND CASH EQUIVALENTS - END OF YEAR  $—    —        $— 

 

(a) The increase of $964,920 in general and administrative expenses was due to the reclassification of finance lease right-of-use asset. Previously, depreciation was calculated after deducting 5% residual value from the fixed assets, but now there is no residual value for amortization of finance lease right-of-use asset calculation.