| SCHEDULE OF DISCONTINUED OPERATIONS |
The
following table summarizes the assets and liabilities associated with the Company’s discontinued operations:
SCHEDULE
OF DISCONTINUED OPERATIONS
| | |
September 30, 2026 | | |
December 31, 2025 | |
| Consolidated Balance Sheets | |
US$ | | |
US$ | |
| Other receivables | |
| — | | |
| 1,501,651 | |
| Prepaid expenses and other current assets, net | |
| — | | |
| 101,690 | |
| Digital assets (i) | |
| 16,163 | | |
| 762,991 | |
| Current assets of discontinued operations | |
$ | 16,163 | | |
$ | 2,366,332 | |
| | |
| | | |
| | |
| Accrued expenses and other current liabilities | |
| — | | |
| 457,985 | |
| Current liabilities of discontinued operations | |
$ | — | | |
$ | 457,985 | |
| (i) |
Digital
assets primarily represent Filecoin (“FIL”) generated from or used in connection with the Company’s discontinued
Filecoin mining operations and held in the Filecoin node accounts of the Company’s subsidiary, MFH Tech. Following the Company’s
decision in December 2025 to discontinue its distributed storage and computing services (Filecoin mining) business, FIL directly
associated with the mining operations, including FIL pledged or otherwise locked in connection with the mining nodes, was classified
as assets associated with discontinued operations. |
As
of September 30, 2026, the majority of the FIL previously pledged or locked in connection with the mining nodes had been released following
the expiration of the related mining nodes on or around April 30, 2026, and a substantial portion of the released FIL had been sold and
converted into cash. The remaining pledged or locked FIL is expected to be released by the end of 2026. Accordingly, the remaining digital
assets associated with the discontinued Filecoin mining operations are classified as current assets of discontinued operations as of
September 30, 2026, as such assets are expected to be released and available for disposition within the next twelve months.
The
following table summarizes the results of the Company’s discontinued operations for the periods presented:
| | |
| | | |
| | | |
| | | |
| | |
| | |
For the three months ended September 30, | | |
For the nine months ended September 30, | |
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| Consolidated Statements of Operations | |
| | | |
| | | |
| | | |
| | |
| Revenue | |
| — | | |
| 78,898 | | |
| 49,002 | | |
| 286,907 | |
| Cost of revenue | |
| — | | |
| (265,905 | ) | |
| (269,663 | ) | |
| (761,126 | ) |
| General and administrative expenses | |
| — | | |
| — | | |
| (1,424 | ) | |
| — | |
| Gain/(loss) on market price of digital assets | |
| 5,303 | | |
| (42,157 | ) | |
| (94,671 | ) | |
| (612,899 | ) |
| Impairment of fixed assets | |
| — | | |
| — | | |
| — | | |
| (504,693 | ) |
| Loss from discontinued operations | |
$ | 5,303 | | |
$ | (229,164 | ) | |
$ | (316,756 | ) | |
$ | (1,591,811 | ) |
The
following table summarizes the cash flows attributable to discontinued operations for the periods presented:
| | |
| | | |
| | | |
| | | |
| | |
| | |
For the three months ended September 30, | | |
For the nine months ended September 30, | |
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| Consolidated Statements of Cash Flows | |
| | | |
| | | |
| | | |
| | |
| Net loss from discontinued operations | |
| 5,303 | | |
| (229,164 | ) | |
| (316,756 | ) | |
| (1,591,811 | ) |
| (Loss)/gain on market price of digital assets | |
| (5,303 | ) | |
| 42,157 | | |
| 94,671 | | |
| 612,899 | |
| Impairment loss of property and equipment | |
| — | | |
| — | | |
| — | | |
| 504,693 | |
| Interest cost of convertible note and borrowing Filecoins | |
| — | | |
| — | | |
| — | | |
| 22,068 | |
| Depreciation of property and equipment | |
| — | | |
| 96,787 | | |
| — | | |
| 222,689 | |
| Non-cash revenue of Filecoin mining | |
| — | | |
| (78,898 | ) | |
| (49,002 | ) | |
| (286,907 | ) |
| Non-cash costs and expenses | |
| — | | |
| 28,342 | | |
| 11,706 | | |
| 258,465 | |
| Other receivables | |
| — | | |
| — | | |
| 1,500,000 | | |
| — | |
| Prepaid expenses and other current assets | |
| — | | |
| — | | |
| 76,532 | | |
| — | |
| Other payables | |
| — | | |
| — | | |
| — | | |
| (180,077 | ) |
| Accounts payable | |
| — | | |
| — | | |
| (31,986 | ) | |
| 19 | |
| Net cash used in discontinued operations | |
$ | — | | |
$ | (140,775 | ) | |
$ | 1,285,165 | | |
$ | (437,962 | ) |
|