2. RECLASSIFICATION AND RESTATEMENT

Revenue and Cost of Revenue Presentation Reclassification

Certain prior-period amounts in the consolidated statements of operations have been reclassified to conform to the current period presentation.

To better reflect the Company’s current business structure and operating focus, revenues previously presented under categories such as “Business consultation services” and “Other services” have been combined and reclassified as “Financial services and advisory businesses.” In addition, certain cost of revenue items previously presented separately have been reclassified to conform to the current period presentation.

These reclassifications have been applied retrospectively to the comparative prior-period presentations, including the three and six months ended June 30, 2025, to conform to the current period presentation.

These reclassifications did not affect previously reported total revenues, cost of revenues, gross profit, net loss, total assets, total liabilities, shareholders’ equity, or cash flows for any period presented.

Reclassification of Stablecoins and Digital Asset Fair Value Changes

Certain prior-period amounts in the condensed consolidated statements of operations have been reclassified to conform to the current period presentation and to better reflect the nature of the Company’s operating activities.

Historically, gains and losses arising from changes in the market prices of stablecoins and digital assets held by the Company were presented as operating items. During the current period, management reassessed the nature of these activities and determined that the Company’s current business operations are primarily focused on financial services and advisory businesses. Accordingly, passive gains or losses arising from the market price fluctuations of stablecoins and digital assets held as investments, rather than generated through active trading or investment strategies, are not considered part of the Company’s operating performance.

Therefore, such gains and losses have been reclassified and presented as non-operating income or expenses in the condensed consolidated statements of operations. This presentation reflects management’s view that passive changes in the fair value of digital assets and investment holdings are financing or investment-related activities rather than operating activities.

These reclassifications have been applied retrospectively to the comparative prior-period presentations, including the three and six months ended June 30, 2025, to conform to the current period presentation.

These reclassifications did not affect previously reported total revenues, operating income (loss), net loss, total assets, total liabilities, shareholders’ equity, or cash flows for any period presented.

CHAINCE DIGITAL HOLDINGS INC.

(FORMERLY KNOWN AS MERCURITY FINTECH HOLDING INC.)

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In U.S. dollars, except for number of shares and per share data)

Reclassification of Balance Sheet and Cash Flow Statement Presentation

Reclassification of Financial Statement Presentation

Certain prior-period amounts in the condensed consolidated balance sheets and consolidated statements of cash flows have been reclassified to conform to the current period presentation and to provide more transparent disclosure of the nature of the Company’s assets, liabilities, and operating activities.

As of December 31, 2025, certain balances previously included within “Prepaid expenses and other current assets, net” have been separately presented as “Other receivables” in the condensed consolidated balance sheets. These balances primarily consist of loan receivables from non-related parties and other receivables from non-related parties.

In addition, certain balances previously included within “Accrued expenses and other current liabilities” have been separately presented as “Other payables” and “Amounts due to related parties” in the condensed consolidated balance sheets.

The Company has also revised the presentation of certain prior-period amounts in the consolidated statements of cash flows to conform to the current period presentation. Specifically, amounts previously presented within changes in “Prepaid expenses and other current assets” have been separately presented as changes in “Other receivables” and “Prepaid expenses and other current assets.” In addition, amounts previously presented within changes in “Accrued expenses and other current liabilities” have been separately presented as changes in “Other payables,” “Amounts due to related parties,” and “Accrued expenses and other current liabilities.”

These reclassifications were made solely to improve the presentation and transparency of the Company’s financial position and cash flows and did not affect previously reported total assets, total liabilities, total shareholders’ equity, net loss, or net cash provided by (used in) operating activities for any period presented.

Reclassification and Presentation of Discontinued Operations

Certain prior-period amounts have been reclassified to reflect the presentation of the Company’s Filecoin mining business as discontinued operations. Such reclassifications were made to conform the comparative financial statement presentation with the current period presentation and did not affect previously reported total revenues, net loss, total assets, total liabilities, shareholders’ equity, or cash flows.

Following the Company’s decision in December 2025 to discontinue its Filecoin mining business, the Company classified the related operations as discontinued operations in accordance with ASC 205-20, Presentation of Financial Statements — Discontinued Operations. The operating results of that business, which had previously been reported within “Distributed storage and computing services,” have been reclassified to discontinued operations. Accordingly, the comparative prior-period results of operations for the three and six months ended June 30, 2025 have been reclassified to present the Filecoin mining business as discontinued operations in the consolidated statements of operations.

Cash flows attributable to the discontinued operations have also been reclassified and presented separately in the consolidated statements of cash flows. In addition, assets and liabilities directly associated with the discontinued operations have been reclassified and presented as separate line items in the condensed consolidated balance sheets for all periods presented. See Note 5 — “Discontinued Operations.”

CHAINCE DIGITAL HOLDINGS INC.

(FORMERLY KNOWN AS MERCURITY FINTECH HOLDING INC.)

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In U.S. dollars, except for number of shares and per share data)

Restatement of Previously Issued Interim Financial Statements Related to Income Tax Items

During the preparation of the Company’s consolidated financial statements for the three and six months ended June 30, 2026, the Company identified an error in the accounting for income taxes included in its previously issued consolidated financial statements for the three and six months ended June 30, 2025.

The error related to the recognition and measurement of deferred tax assets arising from deductible losses generated by the Company’s U.S. subsidiary. In the previously issued interim financial statements, the Company considered only the U.S. federal income tax effect when calculating the deferred tax benefit associated with such deductible losses and did not appropriately consider the applicable state income tax effect. As a result, the income tax benefit, deferred tax assets, and related income tax rate reconciliation disclosures were not presented appropriately.

The Company has corrected this error by revising the comparative financial information for the three and six months ended June 30, 2025 included in these condensed consolidated financial statements. The correction resulted in an increase in deferred tax assets and a corresponding adjustment to income tax benefit (expense). The correction did not have any impact on the Company’s total revenues, operating results before income taxes, cash flows, or total shareholders’ equity as of June 30, 2025.

The following table summarizes the effects of the correction on the previously issued consolidated financial statements for the six months ended June 30, 2025. The amounts presented also reflect the impact of the discontinued operations reclassification described in Note 5 — “Discontinued Operations.”

 SCHEDULE OF EFFECTS OF THE CORRECTION ON THE PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS

CHAINCE DIGITAL HOLDINGS INC.

(FORMERLY KNOWN AS MERCURITY FINTECH HOLDING INC.)

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In U.S. dollars, except for number of shares and per share data)