| SCHEDULE OF DISCONTINUED OPERATIONS |
The
following table summarizes the assets and liabilities associated with the Company’s discontinued operations:
SCHEDULE
OF DISCONTINUED OPERATIONS
| | |
June
30, 2026 | | |
December
31,
2025 | |
| Consolidated
Balance Sheets | |
US$ | | |
US$ | |
| Other
receivables | |
| — | | |
| 1,501,651 | |
| Prepaid
expenses and other current assets, net | |
| — | | |
| 101,690 | |
| Digital
assets (i) | |
| 19,195 | | |
| 762,991 | |
| Current
assets of discontinued operations | |
$ | 19,195 | | |
$ | 2,366,332 | |
| | |
| | | |
| | |
| Accrued
expenses and other current liabilities | |
| — | | |
| 457,985 | |
| Current
liabilities of discontinued operations | |
$ | — | | |
$ | 457,985 | |
| (i) | Digital assets primarily represent Filecoin (“FIL”) generated from or used in connection
with the Company’s discontinued Filecoin mining operations and held in the Filecoin node accounts of the Company’s subsidiary,
MFH Tech. Following the Company’s decision in December 2025 to discontinue its distributed storage and computing services (Filecoin
mining) business, FIL directly associated with the mining operations, including FIL pledged or otherwise locked in connection with the
mining nodes, was classified as assets associated with discontinued operations. |
As of June 30, 2026, the majority of the FIL previously pledged or locked
in connection with the mining nodes had been released following the expiration of the related mining nodes on or around April 30, 2026,
and a substantial portion of the released FIL had been sold and converted into cash. The remaining pledged or locked FIL is expected to
be released by the end of 2026. Accordingly, the remaining digital assets associated with the discontinued Filecoin mining operations
are classified as current assets of discontinued operations as of June 30, 2026, as such assets are expected to be released and available
for disposition within the next twelve months.
The
following table summarizes the results of the Company’s discontinued operations for the periods presented:
| | |
| 2026 | | |
| 2025 | | |
| 2026 | | |
2025 |
| | |
| For
the three months ended
June
30, | | |
For
the six months ended
June
30, |
| | |
| 2026 | | |
| 2025 | | |
| 2026 | | |
2025 |
| Consolidated
Statements of Operations | |
| | | |
| | | |
| | | |
|
| Revenue | |
| 11,275 | | |
| 91,675 | | |
| 49,002 | | |
208,009 |
| Cost
of revenue | |
| (93,995 | ) | |
| (246,428 | ) | |
| (269,663 | ) | |
(495,221) |
| General
and administrative expenses | |
| (290 | ) | |
| — | | |
| (1,424 | ) | |
— |
| Gain/(loss)
on market price of digital assets | |
| 26,742 | | |
| (105,486 | ) | |
| (99,974 | ) | |
(570,742) |
| Impairment
of Fixed assets | |
| — | | |
| (504,693 | ) | |
| — | | |
(504,693) |
| Loss
from discontinued operations | |
$ | (56,268 | ) | |
$ | (764,932 | ) | |
$ | (322,059 | ) | |
$(1,362,647) |
The
following table summarizes the cash flows attributable to discontinued operations for the periods presented:
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| | |
For
the three months ended
June
30, | | |
For
the six months ended
June
30, | |
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| Consolidated
Statements of Cash Flows | |
| | |
| | |
| | |
| |
| Net
loss from discontinued operations | |
| (56,268 | ) | |
| (764,932 | ) | |
| (322,059 | ) | |
| (1,362,647 | ) |
| (Loss)/gain
on market price of digital assets | |
| (26,742 | ) | |
| 105,486 | | |
| 99,974 | | |
| 570,742 | |
| Impairment
loss of property and equipment | |
| — | | |
| 504,693 | | |
| — | | |
| 504,693 | |
| Depreciation
of property and equipment | |
| — | | |
| 125,903 | | |
| — | | |
| 125,903 | |
| Non-cash
revenue of Filecoin mining | |
| (11,275 | ) | |
| (91,675 | ) | |
| (49,002 | ) | |
| (208,008 | ) |
| Non-cash
costs and expenses | |
| 2,524 | | |
| 84,566 | | |
| 11,706 | | |
| 252,192 | |
| Prepaid
expenses and other current assets | |
| — | | |
| — | | |
| 76,532 | | |
| — | |
| Other
payables | |
| — | | |
| (180,077 | ) | |
| — | | |
| (180,077 | ) |
| Accounts
payable | |
| (157 | ) | |
| (21,370 | ) | |
| (31,986 | ) | |
| 15 | |
| Net
cash used in discontinued operations | |
$ | (91,918 | ) | |
$ | (237,406 | ) | |
$ | (214,835 | ) | |
$ | (297,187 | ) |
|