3.       GOING CONCERN UNCERTAINTIES

The accompanying condensed consolidated financial statements have been prepared using going concern basis of accounting, which contemplates the realization of assets and the satisfaction of liabilities in the ordinary course of business.

For the three months ended June 30, 2026, the Company incurred an operating loss of $653,617 and reported a working capital deficit of $3,364,786 and accumulated deficit of $6,355,869. Since March 2026, the Company has experienced temporary cessation of Dubai business operations due to its inability to execute the scheduled product shipments to its regional distribution hub in Dubai, resulting from regional supply chain and transit disruptions caused by U.S.-Iraq conflict. As of June 30, 2026, the Company’s bank accounts had been suspended, resulting in no cash balances, also certain convertible debts totaling approximately $795,000 (principal and unpaid interest) were in default. The Company has funded its operations and capital expenditure primarily through financial support from its stockholders. The continuation of the Company as a going concern is dependent upon improving profitability, securing continued financial support from its stockholders or raising additional capital through external fund-raising, such as, private placements. Management believes the existing stockholders will provide additional cash to meet with the Company’s obligations as they become due. However, there is no assurance that the Company will be successful in securing sufficient funds to sustain the operations.

Management is actively negotiating with holders of convertible debts and note totaling approximately $947,000 (principal and unpaid interest) to restructure or extend repayment terms. These negotiations include discussions on potential debt-to-equity conversions, revised maturity schedules, and partial settlements to alleviate immediate liquidity pressure. While some binding agreements have been finalized as of the issue date of these consolidated financial statements, management believes that constructive progress has been made and that creditors are receptive to restructuring proposals.

These raise substantial doubt about the Company’s ability to continue as a going concern. These condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets and liabilities that may result in the Company not being able to continue as a going concern.