NOTE 20 - SUBSEQUENT EVENTS

Management evaluated subsequent events through the date the consolidated financial statements were issued and determined that, except as disclosed below and in Note 12 – Commitments and Contingencies, there were no material subsequent events requiring recognition or additional disclosure in the accompanying consolidated financial statements.

On March 6, 2026, ESG Inc. (the “Company”) entered into a Securities Purchase Agreement (the “Monroe SPA”) with Monroe Street Capital Partners, LP (the “Monroe Investor”), pursuant to which the Company issued a convertible promissory note in the principal amount of $110,000 in exchange for $100,000 in gross proceeds (the “Monroe Note”). In connection with the Monroe SPA, the Company also issued a common stock purchase warrant to purchase 18,333 shares of the Company’s common stock at an exercise price of $6.00 per share (the “Monroe Warrant”).

On March 9, 2026, the Company entered into a Securities Purchase Agreement (the “Crom SPA”) with Crom Structured Opportunities Fund I, LP (the “Crom Investor”), pursuant to which the Company issued a convertible promissory note in the principal amount of $110,000 in exchange for $100,000 in gross proceeds (the “Crom Note”). In connection with the Crom SPA, the Company also issued a common stock purchase warrant to purchase 18,333 shares of the Company’s common stock at an exercise price of $6.00 per share (the “Crom Warrant”).

In addition, as disclosed in Note 12 – Commitments and Contingencies, in Huai’an Hansen Environmental Engineering Co., Ltd. v. Funan Allied United Farmer Products Co., Ltd., the matter involves a contract dispute allegedly relating to quality issues in the amount of RMB 153,037, under case number (2026) Wan 1225 Zhi No.537.

Under the Leqi case, the Company is working on the comprehensive solution along with Jieyu, Mengjie and Wuxing cases through the Court under the local government support.