Note 2 - Going Concern

The accompanying unaudited condensed consolidated financial statements have been prepared on a going-concern basis, which assumes that the Company will continue in operation and realize its assets and discharge its liabilities in the ordinary course of business.

Following completion of the split-off of the Company’s China operations on May 26, 2026, the Company’s continuing operations are in an early stage and have generated limited revenue. For the six months ended June 30, 2026, the Company incurred a loss from continuing operations of $175,137 and used $84,905 of cash in continuing operating activities.

As of June 30, 2026, the Company had cash of $161,100, current assets of $190,745, current liabilities of $564,916 and a working-capital deficit of $374,171. The Company also remained in default under the Labrys Fund II, L.P. convertible promissory note described in Note 6.

The Company’s existing cash resources and anticipated operating cash flows are not expected to be sufficient to satisfy its operating and financing obligations for the twelve months following issuance of these financial statements. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

Management’s plans include seeking additional debt or equity financing, negotiating extensions, conversions or modifications of outstanding indebtedness, controlling operating expenses, commercializing the Company’s North American food and snack products and evaluating strategic transactions. There can be no assurance that financing will be available when required or on acceptable terms or that management’s plans will be successfully implemented. Management’s plans have not alleviated the substantial doubt, and the financial statements do not include adjustments that might result from the outcome of this uncertainty.