NOTE 7 – SHORT-TERM BORROWINGS

As of June 30, 2026, the Company’s subsidiary AI UltraProd had one-year loans with a total principal amount of RMB23,400,000 (equivalent to US$3,448,733) from banks in the PRC, with interest rates ranging from 2.4% to 6.53% per annum. Interest payments are due quarterly. During the 6 months ended June 30, 2026, the Company borrowed $2,417,048 and repaid $1,467,922 short-term borrowings.