Exhibit 99.1
ZHONGCHAO INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. dollar, except for the number of shares)
| June 30, 2026 |
December 31, 2025 |
|||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Short-term investments | ||||||||
| Accounts receivable | ||||||||
| Prepayments and other current assets | ||||||||
| Total Current Assets | ||||||||
| Investments in non-marketable securities | ||||||||
| Property and equipment, net | ||||||||
| Other assets | ||||||||
| Total Assets | $ | $ | ||||||
| LIABILITIES AND EQUITY | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ | $ | ||||||
| Accrued expenses and other liabilities | ||||||||
| Total Current Liabilities | ||||||||
| Deferred tax liabilities | ||||||||
| Total Liabilities | ||||||||
| Commitments and Contingencies | ||||||||
| Equity | ||||||||
| Class A Ordinary Share (par value $ | ||||||||
| Class B Ordinary Share (par value $ | ||||||||
| Additional paid-in capital | ||||||||
| Deferred share compensation | ( | ) | ||||||
| Statutory reserve | ||||||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| Accumulated other comprehensive loss | ( | ) | ( | ) | ||||
| Total Zhongchao Inc. Shareholders’ Equity | ||||||||
| Non-controlling interests | ||||||||
| Total Equity | ||||||||
| Total Liabilities and Equity | $ | $ | ||||||
| * |
F-1
ZHONGCHAO INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Expressed in U.S. dollar, except for the number of shares)
| For the Six Months Ended June 30, |
||||||||
| 2026 | 2025 | |||||||
| Revenues | ||||||||
| Service | $ | $ | ||||||
| Product | ||||||||
| Total revenues | ||||||||
| Cost of revenues | ||||||||
| Service | ( | ) | ( | ) | ||||
| Product | ( | ) | ||||||
| Total cost of revenues | ( | ) | ( | ) | ||||
| Gross Profit | ||||||||
| Operating Expenses | ||||||||
| General and administrative expenses | ( | ) | ( | ) | ||||
| Selling and marketing expenses | ( | ) | ( | ) | ||||
| Research and development expenses | ( | ) | ||||||
| Total Operating Expenses | ( | ) | ( | ) | ||||
| Loss from Operations | ( | ) | ( | ) | ||||
| Other Income (Expenses) | ||||||||
| Interest income, net | ||||||||
| Other income, net | ||||||||
| Changes in fair value of derivative liabilities and loss from issuance | ( | ) | ||||||
| Total Other (Expenses) Income, Net | ( | ) | ||||||
| Loss Before Income Taxes | ( | ) | ( | ) | ||||
| Income tax expenses | ( | ) | ( | ) | ||||
| Net Loss | ( | ) | ( | ) | ||||
| Net loss (income) attributable to noncontrolling interests | ( | ) | ||||||
| Net Loss Attributable to Zhongchao Inc.’s Shareholders | ( | ) | ( | ) | ||||
| Other Comprehensive Income | ||||||||
| Foreign currency translation adjustment | ||||||||
| Comprehensive Loss | ( | ) | ( | ) | ||||
| Total comprehensive loss (income) attributable to noncontrolling interests | ( | ) | ||||||
| Total Comprehensive Loss Attributable to Zhongchao Inc.’s Shareholders | $ | ( | ) | $ | ( | ) | ||
| Weighted Average Number of Ordinary Share Outstanding* | ||||||||
| Basic and Diluted | ||||||||
| Loss per Share* | ||||||||
| Basic and Diluted | $ | ( | ) | $ | ( | ) | ||
| * |
F-2
ZHONGCHAO INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Expressed in U.S. dollar, except for the number of shares)
For the six months ended June 30, 2026
| Ordinary Shares* | Additional | Deferred | Accumulated Other | Non- | ||||||||||||||||||||||||||||||||||||||||
| Class A | Class B | Paid-in | Share | Statutory | Accumulated | Comprehensive | Controlling | Total | ||||||||||||||||||||||||||||||||||||
| Shares* | Amount* | Shares* | Amount* | Capital* | Compensation | Reserve | Deficit | Loss | Interest | Equity | ||||||||||||||||||||||||||||||||||
| Balance as of December 31, 2025 | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | $ | |||||||||||||||||||||||||||||
| Share-based compensation expenses | - | - | ||||||||||||||||||||||||||||||||||||||||||
| Sales of ordinary shares and pre-funded warrants | ||||||||||||||||||||||||||||||||||||||||||||
| Exercise of common warrants | ||||||||||||||||||||||||||||||||||||||||||||
| Issuance of fraction shares for share consolidation | ||||||||||||||||||||||||||||||||||||||||||||
| Net loss | - | - | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||
| Reversal of statutory reserve | - | - | ( | ) | ||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustments | - | - | ||||||||||||||||||||||||||||||||||||||||||
| Balance as of June 30, 2026 | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | ||||||||||||||||||||||||||||||||
For the six months ended June 30, 2025
| Ordinary Shares* | Additional | Accumulated Other |
Non- | |||||||||||||||||||||||||||||||||||||
| Class A | Class B | Paid-in | Statutory | Accumulated | Comprehensive | controlling | Total | |||||||||||||||||||||||||||||||||
| Shares* | Amount* | Shares* | Amount* | Capital* | Reserve | Deficit | Loss | Interest | Equity | |||||||||||||||||||||||||||||||
| Balance as of December 31, 2024 | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | ||||||||||||||||||||||||||||
| Share-based compensation expenses | - | - | ||||||||||||||||||||||||||||||||||||||
| Net loss (income) | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||
| Appropriation of statutory reserve | - | - | ( | ) | ||||||||||||||||||||||||||||||||||||
| Reversal of statutory reserve | - | - | ( | ) | ||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustments | - | - | ||||||||||||||||||||||||||||||||||||||
| Balance as of June 30, 2025 | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | ||||||||||||||||||||||||||||
| * |
F-3
ZHONGCHAO INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 2026 and 2025
(Expressed in U.S. dollar, except for the number of shares)
| For the Six Months Ended June 30, |
||||||||
| 2026 | 2025 | |||||||
| Cash Flows from Operating Activities: | ||||||||
| Net loss | $ | ( | ) | $ | ( | ) | ||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||||
| Depreciation and amortization expenses | ||||||||
| (Reversal of) provision for expected credit losses | ( | ) | ||||||
| Amortization of right-of-use assets | ||||||||
| Share-based compensation expenses | ||||||||
| Deferred tax expenses | ||||||||
| Upward adjustments in investments in non-marketable securities | ( | ) | ||||||
| Changes in fair value of derivative liabilities and loss from issuance | ||||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | ||||||||
| Inventories | ||||||||
| Prepayments and other current assets | ( | ) | ||||||
| Accounts payable | ( | ) | ||||||
| Accrued expenses and other liabilities | ( | ) | ||||||
| Net Cash (Used in) Provided by Operating Activities | ( | ) | ||||||
| Cash Flows from Investing Activities: | ||||||||
| Investments in short-term investments | ( | ) | ( | ) | ||||
| Proceeds from redemption of short-term investments | ||||||||
| Investments in non-marketable securities | ( | ) | ||||||
| Proceeds from redemption of non-marketable securities | ||||||||
| Net Cash Used in Investing Activities | ( | ) | ( | ) | ||||
| Cash Flows from Financing Activities: | ||||||||
| Net proceeds from sales of ordinary shares and exercise of warrants | ||||||||
| Net Cash Provided by Financing Activities | ||||||||
| Effect of exchange rate changes on cash and cash equivalents | ||||||||
| Net change in cash and cash equivalents | ||||||||
| Cash and cash equivalents at beginning of period | ||||||||
| Cash and Cash Equivalents at End of Period | $ | $ | ||||||
| Supplemental cash flow information | ||||||||
| Cash paid for income tax | $ | $ | ||||||
| Supplemental non-cash information | ||||||||
| Decrease in right of use assets and operating lease obligations due to termination | $ | $ | ( | ) | ||||
F-4