Note 4 – Deposits to Others

On April 6, 2026, XMax AI Inc. entered into a one-year term of cloud service contract with a service providing company to using its AWS products and cloud service provided by AWS. The contract was effective from June 3, 2026 to June 2, 2027. During the six and three months ended June 30, 2026, the Company made $100,000 to the consultant and record it as deposit to others on the current assets.

On April 22, 2026, XMax AI Inc. entered into a cloud service agreement for AWS-based cloud computing and AI model API access with a service providing company. The contract was effective from April 22, 2026. Prior to service activation, the Company paid a refundable performance deposit of $400,000, which is held by the service provider to offset overdue balances or damages, if any. The remaining deposit is refundable upon agreement termination without interest. As of June 30, 2026, the deposit was recorded as deposit to others on the condensed consolidated balance sheet.

On June 11, 2026, XMax AI Inc. entered into a one-year term of cloud service contract with a service providing company to using its AWS products and cloud service provided by AWS. The contract was effective from June 1, 2026 to May 31, 2027. The Company recorded $100,000 on the current assets as deposit to others. During six and three months ended June 30, 2026, the Company made $100,000 to the consultant and record it as deposit to others on the current assets.

On June 24, 2026, the Company entered into a term sheet for the principal terms of a proposed joint venture transaction to acquire 68% of the issued shares of a company that is owned by two professors for $4.00 million. The Company made $500,000 to the company upon execution of the term sheet and record it as deposits to others on the current assets.