[1]

Short-term Loans In connection with the Merger Transaction, the Company assumed the liabilities of Triller Corp, which includes the short-term notes assumed at an aggregate principal amount of $11.0 million issued to various lenders (collectively, the “Short-term Loans”). The Short-term Loans bear interest at the rates ranging from 1.00% to 193.59% per annum, which will mature at various dates within the next twelve months and are secured by all assets of the Company. In the event of a default, penalty interest is levied at rates ranging from 1.00% to 193.59% per annum. The Company incurred interest expense on the various short-term loans of approximately $2.8 million and $5.6 million during the three and six months ended June 30, 2026, respectively and $3.0 million and $5.7 million during the three and six months ended June 30, 2025, respectively. As of June 30, 2026 and December 31, 2025, the aggregate outstanding loans balance was approximately $11.4 million and $11.5 million, respectively and are included as current liabilities in the accompanying unaudited condensed consolidated balance sheets. As of the date of issuance of these unaudited condensed consolidated financial statements, the Company has not repaid the amount due and considered default of settlement.

[2]

Short-term Loans, Related Parties In September 2023, the Company obtained short-term loans of approximately $5.0 million from Giant Wisdom Ventures Limited, a company controlled by major stockholder of the Company, which bears interest at a fixed rate of 12% per annum, repayable in October 2023. The borrowing is secured by a lien on the partial equity interest in Investment D owned by the Company. As of the date of issuance of these unaudited condensed consolidated financial statements, the Company has not repaid the amount due and considered default of settlement. In connection with the Merger Transaction, the Company assumed the liabilities of Triller Corp, which includes the borrowing entered with De Silva 2000 Living Trust for a principal of approximately $0.2 million with a fixed interest rate of 1.85% per annum. As of the date of issuance of these unaudited condensed consolidated financial statements, the Company has not repaid the amount due and considered default of settlement. In October 2024, the Company entered a loan facility agreement with one of its stockholders, TAG Holding Limited for borrowings up to $30.0 million. The loan is unsecured, repayable on demand and bears interest at a fixed rate of 6% per annum. As of the date of issuance of these unaudited condensed consolidated financial statements, the Company has not repaid the amount due and considered default of settlement. 22 On October 16, 2024, Triller Corp. entered into a short-term loan agreement with Giant Wisdom Ventures Limited for a principal of approximately $5.0 million with a fixed interest rate of 18% per annum. The loan is guaranteed by Triller Group and is collateralized by 5,000,000 shares of BKFC common stock. Both principal and accrued interest are due on January 16, 2025. In the event of a default, the interest rate increases to 21% per annum. As of the date of issuance of these unaudited condensed consolidated financial statements, the Company has not repaid the amount due and considered default of settlement. On March 21, 2025, the Company entered into short-term loan agreements with Giant Wisdom Ventures Limited for aggregate principal of $15.5 million with a fixed interest rate of 8% per annum and repayable in June and July 2025. The loans are guaranteed by Triller Hold Co LLC and secured by a pledge of 1,400,000 shares of common stock of BKFC owned by the Company. As of the date of issuance of these unaudited condensed consolidated financial statements, the Company has not repaid the amount due and considered default of settlement. On March 4, 2026, the Company obtained a short-term loan of $0.4 million from Capital Truth Holdings Ltd. bearing interest at a fixed rate of 6% per annum, unsecured, and repayable in September 2026. On March 19, 2026, the Company obtained a short-term loan of $1.5 million from Giant Wisdom Ventures Limited which bears interest at a fixed rate of 6% per annum, repayable in September 2026. The interest rate increases to 9% per annum upon default. The borrowing is secured by a pledge of 74,735,789 shares of Investment D owned by the Company. The Company obtained aggregate short-term loans of approximately $1.1 million from its Chief Operating Officer (“COO”), bearing interest at 6% per annum, unsecured, and repayable within twelve months. The interest rate increases to 15% per annum upon default. The holder has the option to settle the loan either through cash repayment or by receiving a fixed number of shares of the Company’s common stock. The Company issued aggregate 798,000 shares of common stock to the COO for partial repayment of these loans in prior years. During the six months ended June 30, 2026, the Company fully repaid the remaining outstanding loan balance of approximately $0.6 million in cash. As of June 30, 2026 and December 31, 2025, the aggregate outstanding short-term loans balances due to related parties was approximately $52.8 million and $49.0 million, respectively. The Company incurred interest expense on the various short-term loans of approximately $3.9 million and $5.2 million during the three and six months ended June 30, 2026, respectively and $0.8 million and $1.4 million during the three and six months ended June 30, 2025, respectively.

[3]

Factoring loan In connection with the Merger Transaction, the Company assumed the liabilities of Triller Corp.’s subsidiary, Flipps Media Inc. (“Flipps”), which included certain sale of future receipts agreements (the “Agreements”) entered with certain third-party financing companies in October 2024. Pursuant to the Agreements, Flipps sold its future receipts of approximately $0.6 million for a principal amount of approximately $0.4 million. Flipps recorded a debt discount of approximately $0.03 million for the loan origination fees. The debt discount was amortized over the term of the loans with a range of four to twelve-month periods. The agreed weekly payment was approximately $0.03 million. As of June 30, 2026 and December 31, 2025, the outstanding principal balance, net of debt discount, was approximately $0.001 million and $0.001 million, respectively.