RESTATEMENT

6 Months Ended

Jun. 30, 2025

Accounting Changes and Error Corrections [Abstract]

NOTE 22 –RESTATEMENT

The Company restates its previously released unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and incorporate them into the 2025 Quarterly Report “10-Q Form Report” (the “Restatement”). This restatement is due to the discovery of errors related to the reclassification of buildings without property ownership certificates in fixed assets.

As the Company does not have property ownership certificates, the acquisition of the 20-year usage rights for this land, buildings, and salt pan conforms to the definition of a lease as stated in ASC 842. The Company revised the financial statements and accounted for these usage rights as leases in accordance with the provisions of ASC 842.

The effects of the restatement on the consolidated balance sheet as of December 31, 2024, are summarized in the following table:

	As Previously Reported			Restatement			Note	As Restated
	December 31, 2024
	As Previously Reported			Restatement			Note	As Restated
Current Assets
Cash	$	10,075,162			—			$	10,075,162
Accounts receivable, net		564,523			—				564,523
Inventories, net		315,371			—				315,371
Prepayments and deposits, net		6,376,656			—				6,376,656
Amount due from related parties		25,040			—				25,040
Other receivables		94,074			—				94,074
Total current assets		17,450,826			—				17,450,826
Non-Current Assets
Property, plant and equipment, net		136,143,177			(46,712,127	)	(b)		89,431,050
Finance lease right-of-use assets		76,868			45,078,420		(b)		45,155,288
Operating lease right-of-use assets		6,169,855			—				6,169,855
Prepaid land leases, net of current portion		9,615,269			—				9,615,269
Deferred tax assets, net		—			—				—
Total non-current assets		152,005,169			(1,633,707	)			150,371,462
Total Assets		169,455,995			(1,633,707	)			167,822,288

Liabilities and Stockholders’ Equity
Current Liabilities
Short-term bank borrowing
Accounts payable and accrued expenses	$	14,323,458			(7,878,181	)	(c)	$	6,445,277
Taxes payable-current		113,999			—				113,999
Amount due to related parties		2,584,808			—				2,584,808
Finance lease liabilities, current portion		217,743			3,124,550		(c)		3,342,293
Operating lease liabilities, current portion		491,850			—				491,850
Total current liabilities		17,731,858			(4,753,631	)			12,978,227
Non-Current Liabilities
Finance lease liabilities, net of current portion		1,075,865			4,014,019		(c)		5,089,884
Operating lease liabilities, net of current portion		6,941,602			—				6,941,602
Long-term bank borrowing
Total non-current liabilities		8,017,467			4,014,019				12,031,486
Total Liabilities		25,749,325			(739,612	)			25,009,713

Commitment and Contingencies		—			—				—

Stockholders’ Equity
PREFERRED STOCK; $0.001 par value; 1,000,000 shares authorized; none outstanding		—			—				—
COMMON STOCK; $0.0005 par value; 80,000,000 shares authorized; 1,120,145 shares issued; and 1,091,562 shares outstanding as of December 31, 2024		24,623			(24,063	)	(a)		560
Treasury stock; 28,583 shares as of December 31, 2024 at cost		(1,372,673	)		—				(1,372,673	)
Additional paid-in capital		101,688,262			24,063		(a)		101,712,325
Share to be issued		194,700			—				194,700
Retained earnings unappropriated		37,358,804			(964,920	)	(d)		36,393,884
Retained earnings appropriated		26,667,097			—				26,667,097
Accumulated other comprehensive loss		(20,854,143	)		70,825		(e)		(20,783,318	)
Total Stockholders’ Equity		143,706,670			(894,095	)			142,812,575
Total Liabilities and Stockholders’ Equity	$	169,455,995			(1,633,707	)		$	167,822,288

The effects of the restatement on the consolidated balance sheet as of June 30, 2025 are summarized in the following table:

	As Previously Reported			Restatement			Note	As Restated
	June 30, 2025
	As Previously Reported			Restatement			Note	As Restated
Current Assets
Cash	$	7,736,081			—			$	7,736,081
Accounts receivable, net		3,150,850			—				3,150,850
Inventories, net		515,013			—				515,013
Prepayments and deposits, net		8,743,324			—				8,743,324
Amount due from related parties		25,144			—				25,144
Other receivables		105,564			—				105,564
Total current assets		20,275,976			—				20,275,976
Non-Current Assets
Property, plant and equipment, net		128,694,551			(45,357,425	)	(b)		83,337,126
Finance lease right-of-use assets		74,668			43,714,194		(b)		43,788,862
Operating lease right-of-use assets		5,937,515			—				5,937,515
Prepaid land leases, net of current portion		9,648,863			—				9,648,863
Deferred tax assets, net		—			—				—
Total non-current assets		144,355,597			(1,643,231	)			142,712,366
Total Assets		164,631,573			(1,643,231	)		$	162,988,342

Liabilities and Stockholders’ Equity
Current Liabilities
Accounts payable and accrued expenses	$	11,551,878			(4,788,640	)	(c)	$	6,763,238
Taxes payable-current		298,037			—				298,037
Amount due to related parties		2,589,489			—				2,589,489
Finance lease liabilities, current portion		188,550			—				188,550
Operating lease liabilities, current portion		162,134			—				162,134
Total current liabilities		14,790,088			(4,788,640	)			10,001,448
Non-Current Liabilities
Finance lease liabilities, net of current portion		891,801			4,109,591		(c)		5,001,392
Operating lease liabilities, net of current portion		6,734,859			—				6,734,859
Total non-current liabilities		7,626,660			4,109,591				11,736,251
Total Liabilities		22,416,748			(679,049	)			21,737,699

Commitment and Contingencies		—			—				—

Stockholders’ Equity
PREFERRED STOCK; $0.001 par value; 1,000,000 shares authorized; none outstanding		—			—				—
COMMON STOCK; $0.0005 par value; 80,000,000 shares authorized; 1,382,114 shares issued; and 1,353,531 shares outstanding as of June 30, 2025		25,934			(25,243	)	(a)		691
Treasury stock; 28,583 shares as of June 30, 2025 at cost		(1,372,673	)		—				(1,372,673	)
Additional paid-in capital		105,167,292			25,243		(a)		105,192,535
Retained earnings unappropriated		31,955,527			(1,046,187	)	(d)		30,909,340
Retained earnings appropriated		26,667,097			—				26,667,097
Accumulated other comprehensive loss		(20,228,352	)		82,005		(e)		(20,146,347	)
Total Stockholders’ Equity		142,214,825			(964,182	)			141,250,643
Total Liabilities and Stockholders’ Equity	$	164,631,573			(1,643,231	)		$	162,988,342

The following descriptions of the restatement adjustments to the balance sheet excludes a description of adjustments previously identified and concluded as immaterial that were also corrected as part of the restatement.

(a)

The change in common stock and additional paid-in capital is due to the Company’s 1-for-10 reverse stock split on October 27, 2025.

(b)

As of December 31, 2024, in the fixed assets, the original value of the buildings subject to reclassification amounted to $68,476,868. The Company reclassified them based on their acquisition methods. The self-built portion was reclassified as “leasehold improvements” in the property, plant and equipment, with an original value of $3,507,367. The leased portion was reclassified as finance lease right-of-use assets, with an original value of $64,189,590, accumulated amortization of $19,111,170, and a net value of $45,078,720.

As of June 30, 2025, in the fixed assets, the original value of the buildings and Construction in process subject to reclassification amounted to $66,899,438. The Company reclassified them based on their acquisition methods. The self-built portion was reclassified as “leasehold improvements” in the property, plant and equipment, with an original value of $3,521,992. The leased portion was reclassified as finance lease right-of-use assets, with an original value of $64,457,219, accumulated amortization of $20,743,025, and a net value of $43,714,194.

(c)

The amount in accounts payable and accrued expenses was reclassified as finance lease liability relating to the salt pans.

(d)

Regarding the decrease in retained earnings unappropriated, the main reason was the increase in expenses. The increase in expenses is mainly due to the reclassification of the financial lease right-of-use asset. Previously, depreciation was calculated after deducting 5% residual value from the fixed assets, but now there is no residual value for amortization of finance lease right-of-use asset calculation.

(e)

The change in the accumulated other comprehensive loss represents the foreign currency translation differences in the financial statements.

The effects of the restatement on the consolidated statement of operations income (loss) for the three months ended June 30, 2024, are summarized in the following table:

	As Previously Reported			Restatement			Note	As Restated
	June 30, 2024
	As Previously Reported			Restatement			Note	As Restated
NET REVENUE	$	2,383,169			—			$	2,383,169

OPERATING COSTS AND EXPENSE
Cost of revenues		(5,112,058	)		—				(5,112,058	)
Sales and marketing expenses		(13,633	)		—				(13,633	)
Direct labor and factory overheads incurred during plant shutdown		(1,714,503	)		—				(1,714,503	)
General and administrative expenses		(689,972	)		—				(689,972	)
TOTAL OPERATING COSTS AND EXPENSE		(7,530,166	)		—				(7,530,166	)

LOSS FROM OPERATIONS		(5,146,997	)		—				(5,146,997	)

OTHER INCOME (EXPENSE)
Interest expense		(24,814	)		—				(24,814	)
Interest income		34,791			—				34,791
Other expense, net		—			—				—
Loss on disposal of property, plant and equipment		(29,169,008	)		—				(29,169,008	)
TOTAL OTHER INCOME, NET		(29,159,031	)		—				(29,159,031	)

LOSS BEFORE INCOME TAXES		(34,306,028	)		—				(34,306,028	)

INCOME TAX EXPENSE		1,208,110			—				1,208,110
NET LOSS	$	(33,097,918	)		—			$	(33,097,918	)

COMPREHENSIVE LOSS:
NET LOSS	$	(33,097,918	)		—			$	(33,097,918	)
OTHER COMPREHENSIVE (LOSS) INCOME
- Foreign currency translation adjustments		(849,254	)		—				(849,254	)
TOTAL COMPREHENSIVE LOSS	$	(33,947,172	)		—			$	(33,947,172	)

BASIC AND DILUTED LOSS PER SHARE:	$	(3.09	)		(27.23	)	(c)	$	(30.32	)

BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF SHARES:	$	10,726,924			(9,635,362	)	(c)	$	1,091,562

The effects of the restatement on the consolidated statement of operations income (loss) for the three months ended June 30, 2025, are summarized in the following table:

	As Previously Reported			Restatement			Note	As Restated
	June 30, 2025
	As Previously Reported			Restatement			Note	As Restated
NET REVENUE	$	8,343,785			—			$	8,343,785

OPERATING COSTS AND EXPENSE
Cost of revenues		(7,357,130	)		(9,572	)	(a)		(7,366,702	)
Sales and marketing expenses		(14,802	)		—				(14,802	)
Direct labor and factory overheads incurred during plant shutdown		(727,774	)		—				(727,774	)
General and administrative expenses		(994,765	)		(31,015	)	(a)		(1,025,780	)
TOTAL OPERATING COSTS AND EXPENSE		(9,094,471	)		(40,587	)			(9,135,058	)

LOSS FROM OPERATIONS		(750,686	)		(40,587	)			(791,273	)

OTHER INCOME (EXPENSE)
Interest expense		(21,674	)		—				(21,674	)
Interest income		1,795			—				1,795
Other expenses, net		(3,212	)		—				(3,212	)
TOTAL OTHER INCOME, NET		(23,091	)		—				(23,091	)

LOSS BEFORE INCOME TAXES		(773,777	)		(40,587	)			(814,364	)

INCOME TAX EXPENSE		—			—				—
NET LOSS	$	(773,777	)		(40,587	)		$	(814,364	)

COMPREHENSIVE LOSS:
NET LOSS	$	(773,777	)		(40,587	)		$	(814,364	)
OTHER COMPREHENSIVE (LOSS) INCOME
- Foreign currency translation adjustments		403,775			(15,725	)	(b)		388,050
TOTAL COMPREHENSIVE LOSS	$	(370,002	)		(56,312	)		$	(426,314	)

BASIC AND DILUTED LOSS PER SHARE	$	(0.06	)		(0.54	)	(c)	$	(0.60	)

BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF SHARES:		13,346,618			(11,993,087	)	(c)		1,353,531

The following descriptions of the restatement adjustments to the statement of operations exclude a description of adjustments previously identified and concluded as immaterial they were also corrected as part of the restatement.

(a)

The increase in cost of revenue and general and administrative expenses were due to the reclassification of finance lease right-of-use asset. Previously, depreciation was calculated after deducting 5% residual value from the fixed assets, but now there is no residual value for amortization of finance lease right-of-use asset calculation.

(b)

The change in the accumulated other comprehensive loss represents the foreign currency translation differences in the financial statements.

(c)

The change in basic and diluted loss per share is due to the Company’s 1-for-10 reverse stock split on October 27, 2025.

The effects of the restatement on the consolidated statement of operations income (loss) for the six months ended June 30, 2024, are summarized in the following table:

	As Previously Reported			Restatement			Note	As Restated
	June 30, 2024
	As Previously Reported			Restatement			Note	As Restated
NET REVENUE	$	3,690,231			—			$	3,690,231

OPERATING COSTS AND EXPENSE
Cost of revenues		(7,231,903	)		—				(7,231,903	)
Sales and marketing expenses		(18,124	)		—				(18,124	)
Direct labor and factory overheads incurred during plant shutdown		(5,449,192	)		—				(5,449,192	)
General and administrative expenses		(1,407,428	)		—				(1,407,428	)
TOTAL OPERATING COSTS AND EXPENSE		(14,106,647	)		—				(14,106,647	)

LOSS FROM OPERATIONS		(10,416,416	)		—				(10,416,416	)

OTHER INCOME (EXPENSE)
Interest expense		(49,644	)		—				(49,644	)
Interest income		70,851			—				70,851
Other expense, net		(4,003	)		—				(4,003	)
Loss on disposal of property, plant and equipment		(29,169,008	)		—				(29,169,008	)
TOTAL OTHER INCOME, NET		(29,151,804	)		—				(29,151,804	)

LOSS BEFORE INCOME TAXES		(39,568,220	)		—				(39,568,220	)

INCOME TAX EXPENSE		2,478,170			—				2,478,170
NET LOSS	$	(37,090,050	)		—			$	(37,090,050	)

COMPREHENSIVE LOSS:
NET LOSS	$	(37,090,050	)		—			$	(37,090,050	)
OTHER COMPREHENSIVE (LOSS) INCOME
- Foreign currency translation adjustments		(1,243,121	)		—				(1,243,121	)
TOTAL COMPREHENSIVE LOSS	$	(38,333,171	)		—			$	(38,333,171	)

BASIC AND DILUTED LOSS PER SHARE	$	(3.46	)		(30.52	)	(c)	$	(33.98	)

BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF SHARES:	$	10,726,924			(9,635,362	)	(c)	$	1,091,562

The effects of the restatement on the consolidated statement of operations income (loss) for the six months ended June 30, 2025, are summarized in the following table:

	As Previously Reported			Restatement			Note	As Restated
	June 30, 2025
	As Previously Reported			Restatement			Note	As Restated
NET REVENUE	$	9,948,232			—			$	9,948,232

OPERATING COSTS AND EXPENSE
Cost of revenues		(8,951,400	)		(12,766	)	(a)		(8,964,166	)
Sales and marketing expenses		(19,855	)		—				(19,855	)
Direct labor and factory overheads incurred during plant shutdown		(3,953,582	)		—				(3,953,582	)
General and administrative expenses		(2,384,288	)		(68,501	)	(a)		(2,452,789	)
TOTAL OPERATING COSTS AND EXPENSE		(15,309,125	)		(81,267	)			(15,390,392	)

LOSS FROM OPERATIONS		(5,360,893	)		(81,267	)			(5,442,160	)

OTHER INCOME (EXPENSE)
Interest expense		(43,396	)		—				(43,396	)
Interest income		4,224			—				4,224
Other expenses, net		(3,212	)		—				(3,212	)
TOTAL OTHER INCOME, NET		(42,384	)		—				(42,384	)

LOSS BEFORE INCOME TAXES		(5,403,277	)		(81,267	)			(5,484,544	)

INCOME TAX EXPENSE		—			—				—
NET LOSS	$	(5,403,277	)		(81,267	)		$	(5,484,544	)

COMPREHENSIVE LOSS:
NET LOSS	$	(5,403,277	)		(81,267	)		$	(5,484,544	)
OTHER COMPREHENSIVE (LOSS) INCOME
- Foreign currency translation adjustments		625,791			11,180		(b)		636,971
TOTAL COMPREHENSIVE LOSS	$	(4,777,486	)		(70,087	)		$	(4,847,573	)

BASIC AND DILUTED LOSS PER SHARE:	$	(0.43	)		(3.89	)	(c)	$	(4.32	)

BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF SHARES:		12,520,613			(11,249,682	)	(c)		1,270,931

(a)

(b)

The change in the accumulated other comprehensive loss represents the foreign currency translation differences in the financial statements.

(c)

The change in basic and diluted loss per share is due to the Company’s 1-for-10 reverse stock split on October 27, 2025.

The effects of the restatement on the consolidated statement of stockholders’ deficit for the three months ended June 30, 2024 are summarized in the following table:

	Restatement Reference	Number of shares issued			Number of shares outstanding			Number of treasury stock			Amount			Treasury stock				Additional paid-in capital		Retained earnings unappropriated			Retained earnings appropriated		Accumulated other comprehensive Income (loss)			Total
		Common stock
	Restatement Reference	Number of shares issued			Number of shares outstanding			Number of treasury stock			Amount			Treasury stock				Additional paid-in capital		Retained earnings unappropriated			Retained earnings appropriated		Accumulated other comprehensive Income (loss)			Total
THREE MONTHS ENDED JUNE 30, 2024 (As Previously Reported)
BALANCE AT MARCH 31, 2024			11,012,754			10,726,924			285,830		$	24,623		$	(1,372,673	)	-	$	101,688,262	$	92,302,124		$	26,667,097	$	(18,447,136	)	$	200,862,297
Restricted shares to be issued for service			—			—			—			—			—				—		—			—		—			—
Acquisition of assets			-
Currency translation adjustment			—			—			—			—			—				—		—			—		(849,254	)		(849,254	)
Net loss for three months June 30, 2024			—			—			—			—			—		-		—		(33,097,918	)		—		—			(33,097,918	)
BALANCE AT JUNE 30, 2024			11,012,754			10,726,924			285,830		$	24,623		$	(1,372,673	)	-	$	101,688,262	$	59,204,206		$	26,667,097	$	(19,296,390	)	$	166,915,125
THREE MONTHS ENDED JUNE 30, 2024 (Restatement Impact)
BALANCE AT MARCH 31, 2024	(a)		(9,892,609	)		(9,635,362	)		(257,247	)	$	(24,063	)	$	—		-	$	24,063	$	—		$	—	$	—		$	—
Restricted shares to be issued for service			—			—			—			—			—				—		—			—		—			—
Currency translation adjustment			—			—			—			—			—				—		—			—		—			—
Net loss for three months June 30, 2024			—			—			—			—			—		-		—		—			—		—			—
BALANCE AT JUNE 30, 2024	(a)		(9,892,609	)		(9,635,362	)		(257,247	)	$	(24,063	)	$	—		-	$	24,063	$	—		$	—	$	—		$	—
THREE MONTHS ENDED JUNE 30, 2024 (As Restated)
BALANCE AT MARCH 31, 2024			1,120,145			1,091,562			28,583		$	560		$	(1,372,673	)	-	$	101,712,325	$	92,302,124		$	26,667,097	$	(18,447,136	)	$	200,862,297
Restricted shares to be issued for service			—			—			—			—			—				—		—			—		—			—
Acquisition of assets
Currency translation adjustment			—			—			—			—			—				—		—			—		(849,254	)		(849,254	)
Net loss for three months June 30, 2024			—			—			—			—			—		-		—		(33,097,918	)		—		—			(33,097,918	)
BALANCE AT JUNE 30, 2024			1,120,145			1,091,562			28,583		$	560		$	(1,372,673	)	-	$	101,712,325	$	59,204,206		$	26,667,097	$	(19,296,390	)	$	166,915,125

The effects of the restatement on the consolidated statement of stockholders’ deficit for the three months ended June 30, 2025 are summarized in the following table:

	Restatement Reference	Number of shares issued			Number of shares outstanding			Number of treasury stock			Amount			Treasury stock			Share to be issued		Additional paid-in capital		Retained earnings unappropriated			Retained earnings appropriated		Accumulated other comprehensive Income (loss)			Total
		Common stock
	Restatement Reference	Number of shares issued			Number of shares outstanding			Number of treasury stock			Amount			Treasury stock			Share to be issued		Additional paid-in capital		Retained earnings unappropriated			Retained earnings appropriated		Accumulated other comprehensive Income (loss)			Total
THREE MONTHS ENDED JUNE 30, 2025 (As Previously Reported)
BALANCE AT MARCH 31, 2025			13,632,448			13,346,618			285,830		$	25,934		$	(1,372,673	)	$	—	$	105,167,292	$	32,729,304		$	26,667,097	$	(20,632,127	)	$	142,584,827
Restricted shares to be issued for service			—			—			—			—			—			—		—		—			—		—			—
Currency translation adjustment			—			—			—			—			—			—		—		—			—		403,775			403,775
Net loss for three months June 30, 2025			—			—			—			—			—			—		—		(773,777	)		—		—			(773,777	)
BALANCE AT JUNE 30, 2025			13,632,448			13,346,618			285,830		$	25,934		$	(1,372,673	)	$	—	$	105,167,292	$	31,955,527		$	26,667,097	$	(20,228,352	)	$	142,214,825
THREE MONTHS ENDED JUNE 30, 2025 (Restatement Impact)
BALANCE AT MARCH 31, 2025	(a)(b)		(12,250,334	)		(11,993,087	)		(257,247	)	$	(25,243	)	$	—		$	—	$	25,243	$	(1,005,600	)	$	—	$	97,730		$	(907,870	)
Restricted shares to be issued for service			—			—			—			—			—			—		—		—			—		—			—
Currency translation adjustment	(c)		—			—			—			—			—			—		—		—			—		(15,725	)		(15,725	)
Net loss for three months June 30, 2025	(b)		—			—			—			—			—			—		—		(40,587	)		—		—			(40,587	)
BALANCE AT JUNE 30, 2025	(a)(b)		(12,250,334	)		(11,993,087	)		(257,247	)	$	(25,243	)	$	—		$	—	$	25,243	$	(1,046,187	)	$	—	$	82,005		$	(964,182	)
THREE MONTHS ENDED JUNE 30, 2025 (As Restated)
BALANCE AT MARCH 31, 2025			1,382,114			1,353,531			28,583		$	691		$	(1,372,673	)	$	—	$	105,192,535	$	31,723,704		$	26,667,097	$	(20,534,397	)	$	141,676,957
Restricted shares to be issued for service			—			—			—			—			—			—		—		—			—		—			—
Currency translation adjustment			—			—			—			—			—			—		—		—			—		388,050			388,050
Net loss for three months June 30, 2025			—			—			—			—			—			—		—		(814,364	)		—		—			(814,364	)
BALANCE AT JUNE 30, 2025			1,382,114			1,353,531			28,583		$	691		$	(1,372,673	)	$	—	$	105,192,535	$	30,909,340		$	26,667,097	$	(20,146,347	)	$	141,250,643

The following descriptions of the restatement adjustments to the consolidated statement of stockholders’ deficit excludes a description of adjustments previously identified and concluded as immaterial the were also corrected as part of the restatement.

(a)

The change in common stock and additional paid-in capital is due to the Company’s 1-for-10 reverse stock split on October 27, 2025.

(b)

Regarding the decrease in retained earnings unappropriated, the main reason was that cost of revenue and general and administrative expenses increased. The increase of expenses was due to the reclassification of finance lease right-of-use asset. Previously, depreciation was calculated after deducting 5% residual value from the fixed assets, but now there is no residual value for amortization of finance lease right-of-use asset calculation.

(c)

The change in the accumulated other comprehensive loss represents the foreign currency translation differences in the financial statements.

The effects of the restatement on the consolidated statement of stockholders’ deficit for the six months ended June 30, 2024 are summarized in the following table:

	Restatement Reference	Number of shares issued			Number of shares outstanding			Number of treasury stock			Amount			Treasury stock			Additional paid-in capital		Retained earnings unappropriated			Retained earnings appropriated		Accumulated other comprehensive Income (loss)			Total
		Common stock
	Restatement Reference	Number of shares issued			Number of shares outstanding			Number of treasury stock			Amount			Treasury stock			Additional paid-in capital		Retained earnings unappropriated			Retained earnings appropriated		Accumulated other comprehensive Income (loss)			Total
SIX MONTHS ENDED JUNE 30, 2024 (As Previously Reported)
BALANCE AT DECEMBER 31, 2023			11,012,754			10,726,924			285,830		$	24,623		$	(1,372,673	)	$	101,688,262	$	96,294,256		$	26,667,097	$	(18,053,269	)	$	205,248,296
Restricted shares to be issued for service			—			—			—			—			—			—		—			—		—			—
Currency translation adjustment			—			—			—			—			—			—		—			—		(1,243,121	)		(1,243,121	)
Net loss for six months June 30, 2024			—			—			—			—			—			—		(37,090,050	)		—		—			(37,090,050	)
BALANCE AT JUNE 30, 2024			11,012,754			10,726,924			285,830		$	24,623		$	(1,372,673	)	$	101,688,262	$	59,204,206		$	26,667,097	$	(19,296,390	)	$	166,915,125
SIX MONTHS ENDED JUNE 30, 2024 (Restatement Impact)
BALANCE AT DECEMBER 31, 2023	(a)		(9,892,609	)		(9,635,362	)		(257,247	)	$	(24,063	)	$	—		$	24,063	$	—		$	—	$	—		$	—
Restricted shares to be issued for service			—			—			—			—			—			—		—			—		—			—
Currency translation adjustment			—			—			—			—			—			—		—			—		—			—
Net loss for six months June 30, 2024			—			—			—			—			—			—		—			—		—			—
BALANCE AT JUNE 30, 2024	(a)		(9,892,609	)		(9,635,362	)		(257,247	)	$	(24,063	)	$	—		$	24,063	$	—		$	—	$	—		$	—
SIX MONTHS ENDED JUNE 30, 2024 (As Restated)
BALANCE AT DECEMBER 31, 2023			1,120,145			1,091,562			28,583		$	560		$	(1,372,673	)	$	101,712,325	$	96,294,256		$	26,667,097	$	(18,053,269	)	$	205,248,296
Restricted shares to be issued for service			—			—			—			—			—			—		—			—		—			—
Currency translation adjustment			—			—			—			—			—			—		—			—		(1,243,121	)		(1,243,121	)
Net loss for six months June 30, 2024			—			—			—			—			—			—		(37,090,050	)		—		—			(37,090,050	)
BALANCE AT JUNE 30, 2024			1,120,145			1,091,562			28,583		$	560		$	(1,372,673	)	$	101,712,325	$	59,204,206		$	26,667,097	$	(19,296,390	)	$	166,915,125

The effects of the restatement on the consolidated statement of stockholders’ deficit for the six months ended June 30, 2025 are summarized in the following table:

	Restatement Reference	Number of shares issued			Number of shares outstanding			Number of treasury stock			Amount			Treasury stock			Share to be issued			Additional paid-in capital			Retained earnings unappropriated			Retained earnings appropriated		Accumulated other comprehensive Income (loss)			Total
		Common stock
	Restatement Reference	Number of shares issued			Number of shares outstanding			Number of treasury stock			Amount			Treasury stock			Share to be issued			Additional paid-in capital			Retained earnings unappropriated			Retained earnings appropriated		Accumulated other comprehensive Income (loss)			Total
SIX MONTHS ENDED JUNE 30, 2025 (As Previously Reported)
BALANCE AT DECEMBER 31, 2024			11,012,754			10,726,924			285,830		$	24,623		$	(1,372,673	)	$	194,700		$	101,688,262		$	37,358,804		$	26,667,097	$	(20,854,143	)	$	143,706,670
Restricted shares to be issued for service			2,619,694			2,619,694			—			1,311			—			(194,700	)		3,479,030			—			—		—			3,285,641
Acquisition of assets			—			—			—			—			—			—			—			—			—		—			—
Currency translation adjustment			—			—			—			—			—			—			—			—			—		625,791			625,791
Net loss for six months June 30, 2025			—			—			—			—			—			—			—			(5,403,277	)		—		—			(5,403,277	)
BALANCE AT JUNE 30, 2025			13,632,448			13,346,618			285,830		$	25,934		$	(1,372,673	)	$	—		$	105,167,292		$	31,955,527		$	26,667,097	$	(20,228,352	)	$	142,214,825
SIX MONTHS ENDED JUNE 30, 2025 (Restatement Impact)
BALANCE AT DECEMBER 31, 2024	(a)(b)		(9,892,609	)		(9,635,362	)		(257,247	)	$	(24,063	)	$	—		$	—		$	24,063		$	(964,920	)	$	—	$	70,825		$	(894,095	)
Restricted shares to be issued for service	(d)		(2,563,694	)		(2,563,694	)		—			(1,283	)		—			—			(3,088,258	)		—			—		—			(3,089,541	)
Acquisition of assets	(d)		205,969			205,969			—			103			—			—			3,089,438			—			—		—			3,089,541
Currency translation adjustment	(c)		—			—			—			—			—			—			—			—			—		11,180			11,180
Net loss for six months June 30, 2025	(b)		—			—			—			—			—			—			—			(81,267	)		—		—			(81,267	)
BALANCE AT JUNE 30, 2025	(a)(b)		(12,250,334	)		(11,993,087	)		(257,247	)	$	(25,243	)	$	—		$	—		$	25,243		$	(1,046,187	)	$	—	$	82,005		$	(964,182	)
SIX MONTHS ENDED JUNE 30, 2025 (As Restated)
BALANCE AT DECEMBER 31, 2024			1,120,145			1,091,562			28,583		$	560		$	(1,372,673	)	$	194,700		$	101,712,325		$	36,393,884		$	26,667,097	$	(20,783,318	)	$	142,812,575
Restricted shares to be issued for service			56,000			56,000			—			28			—			(194,700	)		390,772			—			—		—			196,100
Acquisition of assets			205,969			205,969			—			103			—			—			3,089,438			—			—		—			3,089,541
Currency translation adjustment			—			—			—			—			—			—			—			—			—		636,971			636,971
Net loss for six months June 30, 2025			—			—			—			—			—			—			—			(5,484,544	)		—		—			(5,484,544	)
BALANCE AT JUNE 30, 2025			1,382,114			1,353,531			28,583		$	691		$	(1,372,673	)	$	—		$	105,192,535		$	30,909,340		$	26,667,097	$	(20,146,347	)	$	141,250,643

(a)

The change in common stock and additional paid-in capital is due to the Company’s 1-for-10 reverse stock split on October 27, 2025.

(b)

(c)

The change in the accumulated other comprehensive loss represents the foreign currency translation differences in the financial statements.

(d)

The amount originally classified as restricted shares to be issued for service was reclassified to acquisition of assets, as the shares were issued in connection with the asset acquisition.

The effects of the restatement on the consolidated statement of cash flows for the six months ended June 30, 2024, are summarized in the following table:

	As Previously Reported			Restatement			Note	As Restated
	June 30, 2024
	As Previously Reported			Restatement			Note	As Restated
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(37,090,050	)		—			$	(37,090,050	)
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization on capital lease		49,644			—				49,644
Depreciation and amortization		9,467,311			(627,482	)	(a)		8,839,829
Deferred tax asset		(2,511,394	)		—				(2,511,394	)
Stock-based compensation expense
Amortization of operating lease right-of-use assets		440,030			—				440,030
Amortization of finance lease right-of-use assets		—			627,482		(a)		627,482
Loss on disposal of property, plant and equipment		29,169,008			—				29,169,008
Accrued interest receivable
Changes in assets and liabilities
Accounts receivable		3,108,788			—				3,108,788
Inventories		160,396			—				160,396
Prepayment and deposits		68,895			—				68,895
Advance from customers		(27,000	)		—				(27,000	)
Other receivables		(4,854	)		—				(4,854	)
Accounts and other payable and accrued expenses		(2,583,610	)		—				(2,583,610	)
Taxes payable		(315,782	)		—				(315,782	)
Lease liabilities		(753,231	)		—				(753,231	)
Net cash used in operating activities		(812,141	)		—				(812,141	)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment		(60,526,213	)		31,602,571		(d)		(28,923,642	)
Loans to third parties
Net cash used in investing activities		(60,526,213	)		31,602,571				(28,923,642	)

CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of finance leases obligation		(264,094	)		(31,602,571	)	(d)		(31,866,665	)
Proceeds from long-term borrowing
Proceeds from short-term borrowing
Net cash used in financing activities		(264,094	)		(31,602,571	)			(31,866,665	)

EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		(253,907	)		—				(253,907	)
NET DECREASE IN CASH AND CASH EQUIVALENTS		(61,856,355	)		—				(61,856,355	)
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR		72,223,894			—				72,223,894
CASH AND CASH EQUIVALENTS - END OF YEAR	$	10,367,539			—			$	10,367,539

	June 30, 2024
	As Previously Reported		Restatement		Note	As Restated
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the year for:
Paid for taxes	$	886,928		—		$	886,928
Interest paid	$	49,644		—		$	49,644

The effects of the restatement on the consolidated statement of cash flows for the six months ended June 30, 2025, are summarized in the following table:

	As Previously Reported			Restatement			Note	As Restated
	June 30, 2025
	As Previously Reported			Restatement			Note	As Restated
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(5,403,277	)		(81,267	)	(b)	$	(5,484,544	)
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization on capital lease		43,396			78,558		(a)		121,954
Depreciation and amortization		7,997,410			(1,546,829	)	(a)		6,450,581
Stock-based compensation expense		196,100			—				196,100
Amortization of operating lease right-of-use assets		435,102			—				435,102
Amortization of finance lease right-of-use assets		—			1,549,239		(a)		1,549,239
Changes in assets and liabilities
Accounts receivable		(2,574,907	)		—				(2,574,907	)
Inventories		(197,631	)		—				(197,631	)
Prepayment and deposits		(2,331,871	)		—				(2,331,871	)
Other receivables		(11,447	)		—				(11,447	)
Accounts and other payable and accrued expenses		268,175			—				268,175
Taxes payable		182,919			—				182,919
Lease liabilities		(743,404	)		—				(743,404	)
Net cash used in operating activities		(2,139,435	)		(299	)			(2,139,734	)

CASH FLOWS FROM INVESTING ACTIVITIES
Net cash used in investing activities		—			—				—

CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of finance leases obligation		(260,997	)		—				(260,997	)
Net cash provided by (used in) financing activities		(260,997	)		—				(260,997	)

EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		61,351			299		(c)		61,650
NET DECREASE IN CASH AND CASH EQUIVALENTS		(2,339,081	)		—				(2,339,081	)
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR		10,075,162			—				10,075,162
CASH AND CASH EQUIVALENTS - END OF YEAR	$	7,736,081			—			$	7,736,081

	June 30, 2025
	As Previously Reported		Restatement		Note	As Restated
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the year for:
Paid for taxes	$	811,828		—		$	811,828
Interest paid	$	43,396		78,558	(a)	$	121,954

SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES

The following descriptions of the restatement adjustments to the statement of cash flows excludes a description of adjustments previously identified and concluded as immaterial that were also corrected as part of the restatement.

(a)

This restatement is due to the reclassification of buildings without property ownership certificates in fixed assets. The Company reclassified them based on their acquisition methods. The self-built portion was reclassified as “leasehold improvements” in the property, plant and equipment. The leased portion was reclassified as finance lease right-of-use assets.

(b)

Regarding the increase in net loss, the main reason was that cost of revenue and general and administrative expenses increased. The increase in expenses was due to the reclassification of finance lease right-of-use asset. Previously, depreciation was calculated after deducting 5% residual value from the fixed assets, but now there is no residual value for amortization of finance lease right-of-use asset calculation.

(c)

The change in the accumulated other comprehensive loss represents the foreign currency translation differences in the financial statements.

(d)

Fixed assets without property ownership certificates have been reclassified as finance lease right-of-use assets, resulting in an amount of $31,602,571.