AMC Robotics Corp 10-Q

Item 1 – Financial Statements AMC ROBOTICS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) March 31, December 31, 2026 2025 (Unaudited) ASSETS Current assets Cash and cash equivalents $ 6,632,619 $ 7,004,601 Accounts receivable 505 427 Accounts receivable - related party 3,114,877 2,065,890 Accounts receivable 3,114,877 2,065,890 Inventories, net 914,678 1,069,465 Prepaid expenses 270,958 355,467 Other receivable 107 - Other receivable - related party, net 192,999 475,909 Other receivable 192,999 475,909 Advance to suppliers 3,677 3,677 Advance to suppliers – related party 21,387 21,387 Advance to suppliers 21,387 21,387 Prepayment - related party (current) 51,844 60,000 Total current assets 11,203,651 11,056,823 Right-of-use asset 88,354 101,221 Other non-current assets 7,697 7,697 Prepayment - related party - 6,845 TOTAL ASSETS $ 11,299,702 $ 11,172,586 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable - related party $ 1,799 $ - Accounts payable $ 1,799 $ - Accrued and other liabilities 672,727 701,844 Tax payable 6,627 6,627 Other payable - related party 1,786 - Other payable 1,786 - Lease liability - current 58,120 57,349 Warranty liabilities - current 31,493 30,023 Total current liabilities 772,552 795,843 Lease liability - noncurrent 37,931 52,753 Warranty liabilities - noncurrent 6,839 6,810 TOTAL LIABILITIES 817,322 855,406 Stockholders’ equity Common stock, $ 0.0001 par value, 100,000,000 shares authorized, 22,600,363 and 22,595,363 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively 2,260 2,260 Additional paid-in capital 37,673,115 37,653,029 Accumulated deficits ( 27,192,508 ) ( 27,338,109 ) Accumulated other comprehensive loss ( 487 ) - Total stockholders’ equity 10,482,380 10,317,180 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 11,299,702 $ 11,172,586 The accompanying notes are an integral part of the unaudited condensed consolidated financial statements. 2 AMC ROBOTICS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) 2026 2025 Three months ended March 31, 2026 2025 REVENUES Product revenue $ 102,018 $ 1,221,803 Product revenue - related party 136,548 134 Revenue share – related party 946,050 570,588 Total Revenues 1,184,616 1,792,525 COST OF REVENUES E-commerce platform expenses ( 16,576 ) ( 355,968 ) Product cost - related party ( 140,802 ) ( 909,624 ) Delivery and freight cost ( 6,273 ) ( 13,178 ) Inventory impairment losses ( 309 ) ( 25,425 ) Total Cost of Revenues ( 163,960 ) ( 1,304,195 ) Gross Profit 1,020,656 488,330 OPERATING EXPENSES General and administrative expenses ( 854,786 ) ( 817,412 ) Sales and marketing expenses ( 14,332 ) ( 404,112 ) Research and development expenses ( 22,999 ) ( 14,559 ) Total Operating Expenses ( 892,117 ) ( 1,236,083 ) INCOME (LOSS) FROM OPERATIONS 128,539 ( 747,753 ) OTHER INCOME (EXPENSES) Other income - related party - 683,898 Other income (loss), net ( 9,490 ) 7,185 Interest income 28,651 318 Interest expense - ( 16,502 ) Total Other Income , Net 19,161 674,899 INCOME (LOSS) BEFORE INCOME TAX 147,700 ( 72,854 ) Income tax expense ( 2,099 ) ( 4,323 ) NET INCOME (LOSS) $ 145,601 $ ( 77,177 ) Other comprehensive loss ( 487 ) ( 110 ) TOTAL COMPREHENSIVE INCOME (LOSS) $ 145,114 $ ( 77,287 ) NET INCOME (LOSS) PER SHARE: BASIC 0.01 ( 0.00 ) NET INCOME(LOSS) PER SHARE: DILUTED $ 0.01 $ ( 0.00 ) WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC 22,596,196 18,000,000 WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: DILUTED 24,810,555 18,000,000 The accompanying notes are an integral part of the unaudited condensed consolidated financial statements. 3 AMC ROBOTICS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT) (UNAUDITED) Number of Shares Amount Paid-in Capital Accumulated Deficits Comprehensive Loss Total Common stock Additional Accumulated Other Number of Shares Amount Paid-in Capital Accumulated Deficits Comprehensive Loss Total Balance as of January 1, 2025 18,000,000 $ 1,800 $ 142,899 $ ( 2,470,588 ) $ ( 5,726 ) $ ( 2,331,615 ) Net loss - - - ( 77,177 ) - ( 77,177 ) Other comprehensive loss - - - - ( 110 ) ( 110 ) Balance as of March 31, 2025 18,000,000 $ 1,800 $ 142,899 $ ( 2,547,765 ) $ ( 5,836 ) $ ( 2,408,902 ) Balance as of January 1, 2026 22,595,363 $ 2,260 $ 37,653,029 $ ( 27,338,109 ) $ - $ 10,317,180 Issuance of shares from exercise of warrants 5,000 - 20,085 - - 20,085 Net income - - - 145,601 145,601 Net income (loss) - - - 145,601 145,601 Other comprehensive loss - - - - ( 487 ) ( 487 ) Balance as of March 31, 2026 22,600,363 $ 2,260 $ 37,673,115 $ ( 27,192,508 ) $ ( 487 ) $ 10,482,380 The accompanying notes are an integral part of the unaudited condensed consolidated financial statements. 4 AMC ROBOTICS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) 2026 2025 Three months ended March 31, 2026 2025 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ 145,601 $ ( 77,177 ) Adjustments to reconcile net income (loss) to net cash (used in)/provided by operating activities: Provision for warranty 1,499 9,426 Inventory impairment losses ( 309 ) 25,425 Non-cash lease expenses 12,867 - Changes in operating assets and liabilities: Accounts receivable ( 78 ) ( 210,298 ) Accounts receivable - related party ( 1,048,987 ) 22,262 Inventories, net 155,096 1,038,114 Prepaid expenses 84,509 4,206 Other receivable ( 107 ) - Other receivable - related party, net 282,910 ( 67,348 ) Advance to suppliers - ( 6 ) Prepayment - related party 15,001 15,121 Accounts payable - related party 1,799 ( 756,323 ) Accrued and other liabilities ( 29,116 ) 195,425 Tax payable - ( 53 ) Other payable - related party 1,786 5,543 Warranty liabilities - ( 332 ) Lease liability ( 14,051 ) - Net cash (used in) / provided by operating activities $ ( 391,580 ) $ 203,985 CASH FLOWS FROM INVESTING ACTIVITIES Repayment of note receivable - stockholder - 15,862 Issuance of promissory note - ( 321,486 ) Net cash used in investing activities $ - $ ( 305,624 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from exercised warrants 20,085 - Net cash provided by financing activities $ 20,085 $ - Effect of changes of foreign exchange rate on cash and cash equivalent ( 487 ) 4,286 Net decrease in cash and cash equivalents ( 371,982 ) ( 97,353 ) Cash and cash equivalents - beginning of the period 7,004,601 358,887 Cash and cash equivalents - end of the period $ 6,632,619 $ 261,534 Supplemental Cash Flow Disclosures Cash paid for interest expenses $ - $ - Cash paid for income taxes $ - $ - NON-CASH INVESTING AND FINANCING ACTIVITIES Unpaid deferred offering cost $ - $ 83,571 The accompanying notes are an integral part of the unaudited condensed consolidated financial statements. 5 AMC ROBOTICS CORPORATION Notes to CONSOLIDATED financial statements ( UNAUDITED ) 1. ORGANIZATION AND BUSINESS BACKGROUND Organization and Business AMC Robotics Corporation (formerly known as AlphaVest Acquisition Corp.) (the “Company”) is a Delaware corporation and a publicly traded holding company. The Company conducts its operations through its wholly owned subsidiaries. The Company and its consolidated subsidiaries as of March 31, 2026 are as follows: SCHEDULE OF COMPANY AND ITS SUBSIDIARIES AND CONSOLIDATED ENTITIES Company Name Date of Incorporation Place of Incorporation Ownership Interest Principal Activities AMC Robotics Corporation (F/K/A AlphaVest Acquisition Corp.) January 14, 2022 Delaware, USA - Public holding company AMC Corporation October 21, 2021 Washington, USA 100% Sale of security camera products AMCV Company Limited January 5, 2026 Vietnam 100% Manufacturing and operational support AMC Corporation (“AMC” or the “Predecessor”) was incorporated in the State of Washington on October 21, 2021. The Company designs and sells residential and small-business security camera products, including indoor and outdoor camera devices, which are sourced from suppliers in Asia and sold primarily through e-commerce platforms in the United States, Canada, and Europe. Formation of New Subsidiary On January 5, 2026, the Company established a wholly owned subsidiary, AMCV Company Limited (“AMCV”), in Vietnam to support manufacturing and operational activities related to the Company’s robotics products. As of March 31, 2026, AMCV had not commenced material revenue-generating operations. The Company has begun initial operational setup activities, including administrative, hiring, and procurement functions. The accompanying unaudited condensed consolidated financial statements include the accounts of AMCV from its date of incorporation, and its impact on the Company’s financial position as of March 31, 2026 and results of operations for the period from its date of incorporation through March 31, 2026 was not material. Reverse Recapitalization and Basis of Presentation On December 9, 2025, the Company consummated a business combination (“Business Combination”) with AlphaVest Acquisition Corp., a special purpose acquisition company (the “SPAC” or “AlphaVest”). The transaction was accounted for as a reverse recapitalization in accordance with ASC 805-40, with AMC determined to be the accounting acquirer. Under this method of accounting, the transaction is treated as a capital transaction rather than a business combination. Accordingly, the assets and liabilities of AlphaVest were recognized at their historical carrying values, with no goodwill or identifiable intangible assets recorded. AlphaVest’s historical equity accounts were eliminated, and the equity structure was retroactively adjusted to reflect that of the combined company. The net assets received from AlphaVest were recognized as a capital contribution, with the offset recorded within additional paid-in capital (“APIC”). 6 As a result, the unaudited condensed consolidated financial statements represent a continuation of AMC’s historical financial statements. All share and per-share information has been retroactively adjusted to reflect the legal capital structure of AMC Robotics Corporation for all periods presented. The significant equity transactions completed in connection with the Business Combination, including the issuance of shares to public shareholders, PIPE investors, sponsor and founder shareholders, and the conversion of sponsor-related instruments, are disclosed in Note 11 – Stockholders’ Equity. As of December 31, 2025, the Company had 22,595,363 shares of common stock issued and outstanding. During the three months ended March 31, 2026, there were no significant changes to the Company’s capital structure, except for the exercise of 5,000 warrants for 5,000 common shares. Variable Interest Entities Historically, the Company conducted certain e-commerce operations through contractual arrangements with Shanghai Xiaoyun Technology Limited (“Xiaoyun”) and Kunshan Yishijue Technology Limited (“Yishijue”), which were determined to be variable interest entities (“VIEs”) under ASC 810. The Company was previously the primary beneficiary and consolidated these entities. On December 1, 2025, the Company terminated the contractual arrangements with Xiaoyun and Yishijue and transferred the ownership and operational control of the related e-commerce platform accounts to the Company. As a result, the Company ceased to be the primary beneficiary and deconsolidated these entities as of that date. Accordingly, as of March 31, 2026, the Company does not have any VIEs and does not have any continuing involvement with or exposure to losses from Xiaoyun or Yishijue. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and disclosures normally included in annual financial statements have been condensed or omitted. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the financial position, results of operations, and cash flows for the interim periods presented have been included. The results of operations for the three months ended March 31, 2026, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2026. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. 7 The Company’s fiscal year-end date is December 31. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ from those estimates. Significant items subject to such estimates and assumptions include, but are not limited to, allowance for credit losses, valuation of inventory, estimated replacement rates to calculate warranty liabilities and warranty expenses. Foreign Currency translation The Company’s reporting currency is the U.S. dollar (“USD”). The functional currency of AMC Robotics Corporation and its wholly owned U.S. subsidiary is USD. The functional currency of the Company’s Vietnam subsidiary, AMCV Company Limited (“AMCV”), is the Vietnamese Dong (“VND”). Transactions denominated in currencies other than the functional currency are translated at exchange rates prevailing on the transaction dates, with resulting gains and losses recorded in other income (expense). Assets and liabilities of foreign operations are translated into USD at period-end exchange rates, while revenues and expenses are translated at average exchange rates for the period. Translation adjustments are recorded in accumulated other comprehensive income (loss). For the three months ended March 31, 2026, the Company used the following exchange rates for its Vietnam subsidiary: SCHEDULE OF FOREIGN CURRENCY TRANSLATION Period ended March 31, 2026 Balance sheet, except for equity accounts ₫ 26,237 VND to $ 1 USD Income statement and cash flows ₫ 26,167 VND to $ 1 USD As a result of applying the above translation methodology, the Company recorded a foreign currency translation loss of approximately $ 487 for the three months ended March 31, 2026, which is included in accumulated other comprehensive loss in the unaudited condensed consolidated balance sheets and in other comprehensive loss in the condensed consolidated statements of operations and comprehensive income (loss). This translation adjustment primarily relates to the Company’s investment in its Vietnam subsidiary, AMCV Company Limited, whose net assets are denominated in Vietnamese Dong. The adjustment arises from translating AMCV’s net assets at period-end exchange rates while equity balances are maintained at historical exchange rates in accordance with ASC 830. Prior to the deconsolidation of Shanghai Xiaoyun Technology Limited and Kunshan Yishijue Technology Limited on December 1, 2025, these VIE entities used the Renminbi (“RMB”) as their functional currency. Assets and liabilities were translated at period-end exchange rates, while revenues and expenses were translated at average exchange rates during the period. For the three months ended March 31, 2025, the Company recognized a foreign currency exchange loss of approximately $ 110 , which was included in other income (expense), net. The following table presents the RMB exchange rates used for translation purposes during the three months ended March 31, 2025: Balance sheet, except for equity accounts ￥ 7.2606 RMB to $ 1 USD Income statement and cash flows ￥ 7.2757 RMB to $ 1 USD Cash and Cash Equivalents Cash consists of cash on deposit with financial institutions that is unrestricted as to withdrawal or use. Cash equivalents include highly liquid investments with original maturities of three months or less at the time of purchase. For purposes of the unaudited condensed consolidated statements of cash flows, the Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Cash equivalents primarily consist of investments in money market funds. As of March 31, 2026 and December 31, 2025, the Company had cash and cash equivalent balances of $ 6,632,619 and $ 7,004,601 , respectively. Cash equivalents include investments in money market funds with original maturities of three months or less. 8 The Company maintains its cash balances with financial institutions in the United States. These balances may, at times, exceed federally insured limits of $ 250,000 per depositor per financial institution provided by the Federal Deposit Insurance Corporation (“FDIC”). A portion of these balances, including amounts held in money market accounts, were not insured by the FDIC. The Company has not experienced any losses on these accounts and management believes the Company is not exposed to significant credit risk on such balances. Accounts receivable and Accounts receivable - related party Accounts receivable is stated at the amount the Company expects to collect from customers through e-commerce platforms. Accounts receivable - related party primarily represents amounts due from Kami Vision Incorporated (“Kami”) under revenue-sharing and service arrangements. Refer to Note 6 - - Related Party Balances and Transactions. The Company evaluates expected credit losses on accounts receivable, including related party balances, using a loss-rate method in accordance with ASC 326, which considers historical loss experience, current conditions, and reasonable and supportable forecasts. As of March 31, 2026 and December 31, 2025, no allowance for expected credit losses was recorded, as substantially all receivables are due from customers and related parties with ongoing business relationships and are subject to regular settlement, and historical credit losses have been insignificant. The Company writes off receivables when collection is no longer considered probable. To date, the Company has not experienced material credit losses on accounts receivable or accounts receivable - related party. Other receivable - related party Other receivables - related party primarily consist of amounts due from Kami Vision Incorporated (“Kami”) for marketing-related activities and from Ants Technology (HK) Limited (“Ants”) for operational and settlement-related transactions. The balances presented in the condensed consolidated balance sheets are net of any allowance for expected credit losses. Refer to Note 6 - Related Party Balances and Transactions. The Company evaluates expected credit losses on other receivables - related party in accordance with ASC 326 using a loss-rate method, as described in “Accounts Receivable and Accounts Receivable - Related Party.” As of March 31, 2026 and December 31, 2025, no allowance for expected credit losses was recorded, as management determined that the risk of non-collection is not significant based on historical experience and ongoing settlement activity. Inventories, net Inventories consist primarily of finished goods and include product costs and freight-in costs. Product costs are determined using the moving average cost method. Freight-in costs are capitalized as part of inventory and allocated to products based on average cost per unit. Inventories are stated at the lower of cost or net realizable value (“NRV”). The Company evaluates inventories on a periodic basis and records write-downs when the carrying value exceeds estimated NRV due to factors such as obsolescence, changes in demand, or market conditions. NRV is defined as the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. Any write-downs are recorded in cost of revenues in the period identified. A significant portion of the Company’s inventories is purchased from related parties, including ZKCam Technology Limited. Refer to Note 6 - Related Party Balances and Transactions and Note 10 - Concentration Risk for additional information. The Company has obtained extended payment terms from these suppliers, which may exceed standard commercial terms. Revenue The Company generated revenues of $ 1,184,616 and $ 1,792,525 for the three months ended March 31, 2026 and 2025, respectively. SCHEDULE OF REVENUE 2026 2025 Three months ended March 31, 2026 2025 Revenues Product revenue $ 102,018 $ 1,221,803 Product revenue - related party 136,548 134 Revenue share - related party 756,008 570,588 Intelligent Information Service - related party 157,382 - AI Service Sharing - related party 32,660 - Total revenues $ 1,184,616 $ 1,792,525 The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers . Revenue is recognized when control of promised goods or services is transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled. The Company applies the five-step model to each of its revenue streams, as described below. Revenue is reported net of value added taxes. Revenue Recognition Product Revenue The Company generates product revenue from both third-party customers and related parties, including ZKCam Technology Limited., Shanghai Xiaoyun Technology Co., Ltd. and Kunshan Technology Co., Ltd. 9 For product sales via e-commerce platforms, primarily Amazon, as well as direct sales to customers, contracts are established through customer orders. The Company has a single performance obligation to deliver products to customers. The transaction price is the fixed sales price, net of promotional discounts offered on the platforms. As there is a single performance obligation, the transaction price is fully allocated to product delivery. Revenue is recognized at a point in time when control of the products transfers to the customer, which is generally upon shipment. E-commerce platforms facilitate shipping and collection; however, the Company retains control of the products prior to transfer. For product sales to related parties, including Kami and ZKCam, the terms are generally consistent with those of third-party transactions. The Company recognized the revenue from product sales - related party at a point in time when control of the products is transferred to the related party customer, which is generally upon shipment or delivery, depending on the contractual terms. Payments are typically received within 3 to 14 days after shipment for e-commerce sales or based on agreed terms for related party transactions. As payments are not generally received in advance, no deferred revenue is recorded. Revenue Share – Related Party (Kami) The revenue sharing arrangements with its related party, Kami, related to cloud-based services & AI service sharing and intelligent information services. Cloud-based services & AI service sharing The Company enters into a revenue sharing agreement with Kami, under which the Company refers customers to Kami’s cloud-based services, including video storage, image analysis and alert-based features. The Company’s performance obligation is to provide referral services, and it does not control the underlying services provided by Kami. Revenue is recognized when an end user referred by the Company subscribes to Kami’s cloud services and makes a payment. Kami provides the Company with a monthly statement summarizing the revenue share generated from customers referred by the Company. The Company recognizes revenue in the period in which the underlying subscription revenue is earned by Kami and reported to the Company. Under the original agreement, the Company was entitled to 30% of subscription revenues for new customers during the first year of subscription, 15% during the second year, and no revenue share thereafter. Effective July 1, 2025, the Company entered into an amended agreement with Kami, under which the Company is entitled to 30% of subscription revenues for new customers referred by the Company during the first three years of their recurring subscriptions. In accordance with ASC 606-10-25-12, this modification is not accounted for as a separate contract, as it does not increase the scope of the contract nor does the pricing reflect standalone selling prices for additional goods or services. Accordingly, the modification is accounted for prospectively and did not result in any adjustment to revenue previously recognized. The transaction price for the revenue share is based on fixed contractual percentages of subscription revenues earned by Kami from referred customers and does not include variable consideration or non-cash consideration. The Company has concluded that it acts as an agent in this arrangement and therefore recognizes revenue on a net basis representing its share of the consideration received. In January 2026, based on the existing cloud services, a new AI service module has been developed, which utilizes AI technology to achieve capabilities such as face recognition, motion capture, and fall detection provided to end users. Revenue generated from these services is included within “Revenue Sharing - related party” in the accompanying condensed consolidated statements of operations. The sharing ratio of revenue AI service and is consistent , at 30% Intelligent information services Beginning in the fourth quarter of 2025, the Company generated revenue from arrangements with related parties associated with intelligent information services. These arrangements are linked to products previously sold by the Company, where the Company enables access to downstream data-related monetization channels developed and operated by its business partners. The Company does not control the underlying services provided to end users and does not have an ongoing obligation to perform services after the initial enablement. Accordingly, the Company’s role is limited to facilitating access to these arrangements, and it participates in a share of revenues generated by its business partners. Revenue is recognized when the underlying services are delivered by the business partners to end users and the related consideration is earned and becomes determinable. The Company recognizes revenue on a net basis, representing its share of the amounts received, consistent with its conclusion that it acts as an agent in these arrangements. Revenue generated from these services is included within “Revenue Sharing - related party” in the accompanying condensed consolidated statements of operations. 10 Product Return Policy The Company has a product return policy that permits e-commerce platform customers in North America to return products within 30 days from the date of purchase. For items purchased during the holiday season from October to December, the return period is extended until the end of January in the following year. For customers in Europe, the return period for e-commerce platforms is 30 days from the date of purchase. Within these specified periods, the Company offers a full refund for returned products, provided the return criteria are met. The Company recognizes revenues adjusted for returns based upon the e-commerce platform statements, which reflect the actual refunds for returns. The Company reviews the subsequent statements after the reporting date and adjusts revenue for returns related to sales in the reporting period accordingly. For returns occurring during the reporting period, adjustments are made in the month of the return. During the three months ended March 31, 2026 and 2025, the Company’s revenue was not significantly impacted by returns due to the short-term free return policy. For revenue sharing derived from related party arrangements with Kami, including revenue sharing from cloud-based service and intelligent information service, there are no product return rights or refund obligations applicable to the Company. These revenues are based on subscription or service usage by end users of Kami’s platform and are recognized based on amounts reported by Kami. As such, no returns or refund estimates are recorded for these revenue streams. Product Warranty The Company provides standard product warranties to customers who purchase products through e-commerce platforms. For customers in North America, the Company offers a one-year warranty from the date of purchase covering replacement of malfunctioning products. For customers in Europe, the warranty period extends to two years from the date of purchase. These warranties are assurance-type warranties as defined under ASC 606 and do not provide services beyond assuring that the product complies with agreed-upon specifications and continues to function as intended. Accordingly, the warranties are not accounted for as separate performance obligations. The Company estimates the expected costs of fulfilling warranty obligations and records a warranty liability at the time of sale, with a corresponding expense recognized in the unaudited condensed consolidated statements of operations. The estimation of warranty costs is based on historical experience, including product failure rates and replacement costs, as well as current trends and expectations. Gross versus Net Revenue Presentation The Company evaluates whether it acts as a principal or agent in accordance with ASC 606. For product sales via e-commerce platforms, the Company acts as a principal and recognizes revenue on a gross basis, as it controls the products prior to transfer to customers, bears inventory risk, sets pricing, and is responsible for fulfillment. For revenue sharing arrangements with Kami, including both cloud-based service and intelligent information service, the Company acts as an agent, as it does not control the underlying services provided to end users and has no ongoing performance obligation after the initial enablement. Accordingly, revenue is recognized on a net basis, representing the Company’s share of the consideration generated from end users. Cost of revenues Cost of revenues includes cost of products, e-commerce platform fees, delivery and freight costs, and inventory impairment loss. The Company expenses cost of revenues in conjunction with sales as incurred. The Company incurred cost of revenues of $ 163,960 and $ 1,304,195 for the three months ended March 31, 2026 and 2025, respectively. General and administrative expenses General and administrative expenses primarily consist of costs for consulting fee, payroll expenses, storage fees, and professional fees. The Company has expensed all general and administrative expenses costs as incurred. For the three months ended March 31, 2026 and 2025, the Company incurred general and administrative expenses of $ 854,786 and $ 817,412 , respectively. 11 Sales and marketing expenses Sales and marketing expenses primarily consist of costs for the promotion of business brand and product marketing and warranty expenses. The Company expensed all sales and marketing costs as incurred. For the three months ended March 31, 2026 and 2025, the Company incurred sales and marketing expenses of $ 14,332 and $ 404,112 , respectively. Provision for credit losses The Company estimates expected credit losses on accounts receivable, other receivables, and related party receivables using a loss-rate method in accordance with ASC 326. This approach incorporates historical loss experience, current conditions, and reasonable and supportable forecasts. For the three months ended March 31, 2026 and 2025, the Company did no t record a provision for expected credit losses. As of March 31, 2026 and December 31, 2025, there was no allowance for credit losses. Based on the Company’s historical experience, the nature of its counterparties, and ongoing collection activity, management concluded that expected credit losses are insignificant. Comprehensive loss The Company applies ASC 220, Comprehensive Income, with respect to reporting and presentation of comprehensive loss and its components in a full set of financial statements. Comprehensive loss is defined to include all changes in equity of the Company during a period arising from transactions and other events and circumstances except those resulting from investments by shareholders and distributions to shareholders. For the periods presented, the Company’s comprehensive income (loss) includes net income (loss) and other comprehensive income (loss), which primarily consists of the foreign currency translation adjustments. Income taxes The Company accounts for income taxes in accordance with ASC 740, Income Taxes . The provision for income taxes is determined using the asset and liability approach, under which deferred tax assets and liabilities are recognized for the future tax consequences of differences between the financial statement carrying amounts and the tax bases of assets and liabilities, using enacted tax rates expected to apply in the periods in which those differences are expected to reverse. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that such assets will not be realized. In assessing the need for a valuation allowance, management considers all available positive and negative evidence, including historical operating results, projections of future taxable income, and the expected timing of reversal of existing temporary differences. Based on this assessment, the Company has recorded a full valuation allowance against its deferred tax assets as of March 31, 2026 and December 31, 2025. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the position will be sustained upon examination. Interest and penalties related to uncertain tax positions are recognized as a component of income tax expense. As of March 31, 2026 and December 31, 2025, the Company had no material uncertain tax positions. The Company’s tax returns remain subject to examination by taxing authorities for all years since inception. 12 Private Investment in Public Equity (“PIPE”) Financing and PIPE Warrants In connection with the closing of the Business Combination on December 9, 2025 (the “Closing Date”), the Company entered into securities purchase agreements (the “PIPE Agreements”) with certain investors (the “PIPE Investors”), pursuant to which the Company issued an aggregate of 800,000 shares of common stock at a purchase price of $ 10.00 per share, for gross proceeds of $ 8,000,000 (the “PIPE Financing”). The PIPE Financing was consummated concurrently with the Closing and was accounted for as an equity issuance in accordance with ASC 505, with proceeds recorded within common stock and additional paid-in capital (“APIC”). In connection with the PIPE Financing, the Company issued warrants to purchase shares of its common stock (the “PIPE Warrants”). At the Closing Date, the PIPE Warrants represented the right to acquire an aggregate of 2,240,000 shares of common stock, with an exercise price of approximately $ 10.00 per share, subject to adjustment. The PIPE Warrants include provisions under which the exercise price and the number of shares issuable upon exercise are subject to adjustment based on a reference stock price, as defined in the warrant agreements, determined on the reset date of December 30, 2025. As a result of these provisions, the exercise price was adjusted and the total number of shares underlying the PIPE Warrants increased to 5,576,301 shares upon the reset event. The PIPE Warrants contain dividend participation rights that entitle holders to participate in dividends and other distributions declared on common stock on an as-exercised basis, subject to the beneficial ownership limitation. Accordingly, the PIPE Warrants are considered participating securities for purposes of computing earnings per share in accordance with ASC 260, Earnings Per Share. The Company evaluated the PIPE Warrants for classification as either equity or liability instruments in accordance with ASC 480, Distinguishing Liabilities from Equity , and ASC 815-40, Derivatives and Hedging—Contracts in Entity’s Own Equity . The Company determined that the PIPE Warrants failed the indexation guidance under ASC 815-40 due to provisions that introduce variability in the number of shares deliverable upon settlement and are not inputs solely based on the Company’s own stock. Accordingly, the PIPE Warrants were initially recorded at fair value upon issuance as a derivative liability. Upon the occurrence of the reset event on December 30, 2025, the terms of the PIPE Warrants became fixed, including a fixed exercise price and a determinable number of shares issuable upon exercise. Accordingly, the PIPE Warrants met the criteria for equity classification under applicable accounting guidance and were reclassified from derivative liabilities to equity in the amount of $ 30,558,129 . The reclassification was recorded at the fair value of the PIPE Warrants as of the reclassification date. Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by reflecting the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, unless the effect would be anti-dilutive. The Company applies the two-class method in computing earnings per share, as its PIPE Warrants are considered participating securities. Under the two-class method, net income is allocated between common stockholders and participating securities based on their respective rights to participate in earnings. For the three months ended March 31, 2026, the Company reported net income of $ 145,601 . Of this amount, approximately $ 116,785 was allocated to common stockholders and approximately $ 28,816 was allocated to participating securities. The weighted-average number of common shares outstanding was 22,596,196 for the period. Basic and diluted earnings per share were calculated as follows: SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED Three Months Ended March 31, 2026 Three Months Ended March 31, 2025 Basic earnings per share: Net income (loss) $ 145,601 $ ( 77,177 ) Less: income allocated to participating securities $ ( 28,816 ) $ - Net income (loss) allocated to common stockholders $ 116,785 $ ( 77,177 ) Weighted-average shares outstanding – basic 22,596,196 18,000,000 Earnings per share – basic $ 0.01 $ ( 0.00 ) Diluted earnings per share Net income (loss) $ 145,601 $ ( 77,177 ) Weighted-average shares outstanding – diluted 24,810,555 18,000,000 Earnings per share – diluted $ 0.01 $ ( 0.00 ) Diluted earnings per share is equal to basic earnings per share for the period presented, as the Company’s participating securities are included in the allocation of earnings under the two-class method and there are no additional dilutive instruments. 13 Fair value measurements The Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the input used in measuring fair value as follows: ● Level 1 : Inputs are based upon unadjusted quoted prices for identical instruments traded in active markets; ● Level 2: Inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques (e.g. Black-Scholes Option-Pricing model) for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 : Inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The carrying values of cash, accounts receivable, advance to suppliers, other current assets, accounts payable, accrued liabilities, and other current liabilities approximate fair value due to the short-term nature of these instruments. Pursuant to ASC 820 and ASC 825, the fair value of cash is determined based on Level 1 inputs. The Company does not have any “Level 2” or “Level 3” fair value assets or liabilities. Segment reporting The Company applies ASC 280, Segment Reporting , which requires operating segments to be identified based on the internal reporting reviewed by the chief operating decision maker (“CODM”) to allocate resources and assess performance. The Company’s chief executive officer serves as the CODM. The Company operates its business through e-commerce platforms and manages its operations on a geographic basis. As of March 31, 2026, the Company has determined that it has two operating and reportable segments: (1) North America and (2) Europe. Revenue is attributed to geographic regions based on the location of the end customer. Revenue generated from regions outside North America and Europe is not material. The Company has also established a wholly owned subsidiary in Vietnam to support manufacturing and operational activities. As of March 31, 2026, this subsidiary has not generated revenue. The costs and operating expenses associated with the Vietnam entity are included within the Company’s consolidated operating results and are not evaluated separately by the Company’s chief operating decision maker (“CODM”). Accordingly, the Vietnam operations do not constitute a separate operating or reportable segment under ASC 280. Prior to December 1, 2025, the Company’s operations included activities conducted through variable interest entities (“VIEs”) in China, which were presented as a separate segment. Following the termination of the VIE arrangements in December 2025, the Company no longer has operations in China, and accordingly, no China segment is presented for the three months ended March 31, 2026. 14 Revision of Previously Issued Consolidated Financial Statements During the preparation of the Company’s unaudited condensed consolidated financial statements for the quarter ended March 31, 2026, management identified certain immaterial errors primarily related to the accrual of certain general and administrative expenses in the Company’s previously issued consolidated financial statements for the year ended December 31, 2025. The errors primarily related to professional service fees for services substantially performed prior to December 31, 2025 that were not accrued as of year-end. Management evaluated the errors in accordance with ASC 250, Accounting Changes and Error Corrections , SEC Staff Accounting Bulletin (“SAB”) No. 99, Materiality , and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements . Management concluded that the errors were not material, individually or in the aggregate, to the Company’s previously issued annual financial statements for the year ended December 31, 2025. Accordingly, amendment or reissuance of the previously issued annual financial statements was not required. However, management further concluded that correction of the errors entirely within the current reporting period would materially misstate the Company’s results of operations for the quarter ended March 31, 2026 and fiscal year 2026. Therefore, the Company revised the comparative prior-period balances included herein to correct such immaterial prior-period errors. The impact of the revision to record the omitted professional fee accruals on the Company’s previously reported consolidated balance sheet as of December 31, 2025 was as follows: SCHEDULE OF PREVIOUSLY REPORTED CONSOLIDATED BALANCE SHEET As Previously Reported Adjustment As Revised Accrued and other liabilities $ 592,822 $ 109,022 $ 701,844 Accumulated deficit $ ( 27,229,088 ) $ ( 109,022 ) $ ( 27,338,110 ) 15 Recently issued accounting pronouncements In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. ASU 2023-06 modifies the disclosure or presentation requirements of a variety of Topics in the Codification. Certain of the amendments represent clarifications to or technical corrections of the current requirements. Because of the variety of Topics amended, a broad range of entities may be affected by one or more of those amendments. Many of the amendments allow users to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the SEC’s requirements. Also, the amendments align the requirements in the Codification with the SEC’s regulations. For entities subject to the SEC’s existing disclosure requirements and for entities required to file or furnish financial statements with or to the SEC in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer, the effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. For all other entities, the amendments will be effective two years later. The amendments in this update should be applied prospectively. For all entities, if by June 30, 2027, the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment will be removed from the Codification and will not become effective for any entity. The Company is currently evaluating the potential impact this standard will have on its consolidated financial statements and related disclosures. On November 4, 2024, the FASB issued ASU 2024-03, which requires disaggregated disclosure of income statement expenses for public business entities (PBEs). ASU 2024-03 adds ASC 220-40 to require a footnote disclosure about specific expenses by requiring PBEs to disaggregate, in a tabular presentation, each relevant expense caption on the face of the income statement that includes any of the following natural expenses: (1) purchases of inventory, (2) employee compensation, (3) depreciation, (4) intangible asset amortization, and (5) depreciation, depletion, and amortization (DD&A) recognized as part of oil- and gas-producing activities or other types of depletion expenses. The tabular disclosure would also include certain other expenses, when applicable. The ASU does not change or remove existing expense disclosure requirements; however, it may affect where that information appears in the footnotes to the financial statements. ASU 2024-03 shall be effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the potential impact this standard will have on its consolidated financial statements and related disclosures. In July 2025, the Financial Accounting Standards Board issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets , which amends the guidance in ASC 326. The amendments simplify the measurement of expected credit losses for accounts receivable and contract assets by permitting entities to use a practical expedient based on historical loss rates, adjusted for current conditions and reasonable and supportable forecasts. The amendments in this update are effective for fiscal years beginning after December 15, 2025, including interim periods within those fiscal years. Early adoption is permitted. The Company adopted ASU 2025-05 effective January 1, 2026. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. The Company is currently evaluating the impact of ASU 2025-05 on its consolidated financial statements and does not expect the adoption of this guidance to have a material impact. Other accounting standards that have been issued by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. We do not discuss recent standards that are not anticipated to have an impact on or are unrelated to our consolidated financial condition, results of operations, cash flows or disclosures. Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as modified by the Jumpstart Our Business Startups Act of 2012, and it continues to qualify as such as of March 31, 2026. As an emerging growth company, the Company may take advantage of certain exemptions from various reporting requirements applicable to other public companies that are not emerging growth companies, including, but not limited to, exemption from the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements to hold a nonbinding advisory vote on executive compensation and to obtain stockholder approval of any golden parachute payments not previously approved. 16 In addition, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies are required to comply with such standards. The Company has elected not to opt out of this extended transition period. As a result, when a standard is issued or revised with different application dates for public and private companies, the Company may adopt the new or revised standard at the time private companies adopt such standard. Accordingly, the Company’s financial statements may not be comparable to those of public companies that comply with new or revised accounting standards on earlier effective dates. 3. ACCOUNTS RECEIVABLE Accounts receivable represents amounts due from customers in the ordinary course of business, primarily from e-commerce platform sales. As of March 31, 2026 and December 31, 2025, accounts receivable was $ 505 and $ 427 , respectively. No allowance for credit losses was recorded, as balances are immaterial and short-term in nature. 4. INVENTORIES - NET As of March 31, 2026 and December 31, 2025, the Company had inventory balances of $ 914,678 and $ 1,069,465 , consisting of the following: SCHEDULE OF INVENTORY NET March 31, 2026 (Unaudited) December 31, 2025 Purchased goods $ 1,069,168 $ 1,274,700 Freight-in costs 58,148 63,025 Inventory 1,127,316 1,337,725 Less: inventory impairment ( 212,638 ) ( 268,260 ) Inventory, net $ 914,678 $ 1,069,465 For the three months ended March 31, 2026, the Company recognized an inventory provision of approximately $ 309 as inventory cost exceeded net realizable value and recorded reductions of approximately $ 55,931 related primarily to inventories sold or otherwise utilized during the period. For the three months ended March 31, 2025, the Company recognized an inventory provision of $ 25,425 , as the inventory cost value exceeded the net realizable value, and recorded a reduction of $ 271,546 for inventories that were removed, sold, or replaced under warranty. The movement of inventory impairment provisions are summarized as follows: SCHEDULE OF INVENTORY IMPAIRMENT PROVISIONS 2026 2025 Three months ended March 31, 2026 2025 Balance at the beginning of the period $ 268,260 $ 798,046 Addition 309 25,425 Deletion ( 55,931 ) ( 271,546 ) Balance at the end of the period $ 212,638 $ 551,925 17 5. PREPAID EXPENSES As of March 31, 2026 and December 31, 2025, the Company had prepaid expenses of $ 270,958 and $ 355,467 , respectively. These balances primarily consisted of prepaid federal and state income taxes and other routine prepaid operating expenses. 6. RELATED PARTY BALANCES AND TRANSACTIONS The principal related parties with which the Company had transactions for the three months ended March 31, 2026 and 2025, and balances as of March 31, 2026 and December 31, 2025 are as follows: Name Relationship with the Company Sean Da CEO and Board Chair, and majority stockholder Senslab HK Limited (hereinafter referred to as “Senslab HK”) Affiliate of Sean Da Senslab Technology Co., Ltd (hereinafter referred to as “Senslab SH”) Affiliate of Sean Da Ants Technology (HK) Limited (hereinafter referred to as “Ants”) Affiliate of Sean Da Kami Vision Incorporated (hereinafter referred to as “Kami”) Affiliate of Sean Da Yunyizhilian Information Technology Co., Ltd (hereinafter referred to as “Yunyizhilian”) Entity under common control with Sean Da Shanghai Xiaoyun Technology Co., Ltd. (hereinafter referred to as “Xiaoyun”) Formerly VIE Kunshan Ant Vision Electronic Technology Co., Ltd. (hereinafter referred to as “Yishijue”) Formerly VIE ZKCam Co., Ltd. (“ZKCam”) Minority Stockholder of the Company Impact of Related Party Transactions on Operations During the three months ended March 31, 2026 and 2025, related party transactions had the following impact on income (loss) before income tax: SCHEDULE OF RELATED PARTY TRANSACTIONS 2026 2025 Related Party Transactions Income (loss) before income tax Income Statement Three months ended March 31, 2026 2025 Revenue share – related party (Kami) $ 756,008 $ 570,588 Product revenue - related party (Kami) - 134 Product revenue - related party (ZKCam) 135,364 - Product revenue - related party (Xiaoyun) 517 - Product revenue - related party (Yishijue) 667 - Intelligent Information Service (Kami) 157,382 - AI Service Sharing (Kami) 32,660 - Product cost - related party (Senslab) ( 140,802 ) ( 909,624 ) General and administrative expenses - Consulting fee-related party (Kami) ( 33,611 ) ( 74,486 ) General and administrative expenses - Stockholder’s business travel expense (Sean) ( 21,736 ) ( 25,800 ) General and administrative expenses - Financial consulting fee (Ants) ( 15,000 ) ( 15,000 ) Other income - Marketing incentive subsidy income (Kami) - 683,898 Total impact on income (loss) before income tax $ 871,449 $ 229,710 % of income (loss) before income tax 608 % N/M % 18 Related Party Balances As of March 31, 2026 and December 31, 2025, balances with related parties were as follows. Balance Sheet Ants Senslab SH Senslab HK ZKCam Kami Sean Da Yi shijue Xiao Yun Total Related Party Transactions As of March 31, 2026 Balance Sheet Ants Senslab SH Senslab HK ZKCam Kami Sean Da Yi shijue Xiao Yun Total Accounts receivable - related party $ - $ - $ - $ 569,252 $ 2,544,441 $ - $ 667 $ 517 $ 3,114,877 Other receivable - related party, net 4,872 37,005 - 146,979 4,143 192,999 Including: - Other receivable - related party 4,872 37,005 - 146,979 - 4,143 192,999 Prepayment - related party 51,844 - - - - - 51,844 Advance to suppliers – related party - - 21,387 - - - - 21,387 Accounts payable - related party 1,799 - - - - - 1,799 Other payable - related party - - - - - 1,786 1,786 Balance Sheet Ants Senslab SH Senslab HK Xiaoyun ZKCam Kami Sean Da Total Related Party Transactions As of December 31, 2025 Balance Sheet Ants Senslab SH Senslab HK Xiaoyun ZKCam Kami Sean Da Total Accounts receivable - related party $ - $ - $ - $ 433,888 $ 1,632,002 $ - $ 2,065,890 Other receivable - related party, net 4,872 26,406 4,035 - - 440,596 475,909 Including: - - - - Other receivable - related party 4,872 26,406 4,035 - - 440,596 475,909 Advance to suppliers – related party 21,387 - - 21,387 Prepayment - related party 66,844 - - - - - 66,844 19 Specifically, transactions with each related party presented in the above tables are as follows: Senslab HK Limited and Senslab Technology Co., Ltd Balance % of Total Assets Balance % of Total Assets March 31, December 31, 2026 2025 Balance % of Total Assets Balance % of Total Assets Advance to suppliers - related party (Senslab HK) $ 21,387 0 % $ 21,387 0 % Other receivable - related party (Senslab SH) 37,005 0 % 26,406 0 % Total $ 58,392 1 % $ 47,793 0 % Balance % of Total Assets Balance % of Total Assets March 31, December 31, 2026 2025 Balance % of Total Liability Balance % of Total Liability Accounts payable - related party (Senslab HK) $ - - % $ - - % Accounts payable - related party (Senslab SH) - - % - - % Total $ - - % $ - - % Sean Da, the Company’s majority stockholder, owns approximately 38 % of Senslab Technology Co., Ltd. (“Senslab SH”), which owns 100 % of Senslab HK Limited (“Senslab HK”). Both entities are therefore considered related parties of the Company. Historically, the Company procured security cameras from Senslab HK. Senslab HK purchased the products from Senslab SH and exported them to the Company. Beginning in the fourth quarter of 2023, after Senslab SH obtained import and export trade approval, the Company also began purchasing security cameras directly from Senslab SH. The Company procured security cameras from Senslab HK for $ nil during the three months ended March 31, 2026 and 2025. During the same periods, purchases from Senslab SH totaled $ nil and $ 186,005 , respectively. The significant decrease in purchases from related party suppliers in 2026 was primarily due to a shift in the Company’s business model toward higher-margin revenue streams, including revenue sharing and intelligent information services, which reduced the Company’s reliance on product sales and corresponding inventory purchases. As of March 31, 2026 and December 31, 2025, accounts payable due to Senslab HK and Senslab SH were $ nil for both periods. Ants Technology (HK) Limited Balance % of Total Asset Balance % of Total Asset March 31, December 31, 2026 2025 Balance % of Total Asset Balance % of Total Asset Prepayment - related party $ 51,844 0 % $ 66,844 1 % Other receivable - related party 4,872 0 % 4,872 0 % Total $ 56,716 1 % $ 71,716 1 % Balance % of Total Asset Balance % of Total Asset March 31, December 31, 2026 2025 Balance % of Total liabilities Balance % of Total liabilities Accounts Payable-related party $ 1,799 1 % $ - - % Total $ 1,799 1 % $ - - % Accounts Payable $ 1,799 1 % $ - - % 20 Sean Da, the Company’s majority stockholder, owns 95 % of Ants. Prepayment – Related Party The prepayment is amortized based on (i) revenue collected from the sale of Ants’ inventories, (ii) reimbursements of costs incurred by Ants, and (iii) financial consulting fees payable to Ants beginning January 1, 2025 for bookkeeping support services at a monthly rate of $ 5,000 . For the three months ended March 31, 2026 and 2025, the Company recognized $ 15,000 of financial consulting fees. Revenue collected from the sale of Ants’ inventories was not material for the years presented. As of March 31, 2026 and 2025, the remaining prepayment balance was $ 51,844 and $ 66,844 , respectively. Other receivable – related party As of March 31, 2026 and December 31 2025, the Company had gross “other receivable – related party” balances due from Ants of $ 4,872 and $ 4,872 , respectively. Account Payable – related party During the three months ended March 31, 2026 and ,2025, AMCV purchased security cameras from Ants in the amounts of $ 1,799 and $ nil , respectively. As of March 31, 2026 and December 31, 2025, accounts payable due to Ants were $ 1,799 and $ nil , respectively. The following table presents the movement of “other receivable – related party” balances due from Ants: SCHEDULE OF OTHER RECEIVABLE - RELATED PARTY March 31, December 31, 2026 2025 Balance at the beginning of the period $ 4,872 $ 1,790,009 Repayment from Ants (1) - ( 1,790,009 ) Inventory Transfer /(Procurement) (2) - 4,872 Balance at the end of the period $ 4,872 $ 4,872 (1) Prior to April 2022, Ants collected payments from Amazon customers on behalf of the Company. Beginning in April 2022, the Company obtained direct access to the third-party cross-border payment platform and began receiving customer payments directly. Accordingly, amounts previously held by Ants were repaid to the Company. (2) Inventory-related movements reflect transfers and procurement arrangements between the Company and Ants. During March 31, 2026 and 2025, such activities resulted in net increases of $ nil and $ 4,872 , respectively, to the related-party receivable balance. Kami Vision Incorporated Sean Da, the Company’s majority stockholder, also serves as Chief Executive Officer of Kami and holds approximately 80 % ownership of Kami. Accordingly, transactions between the Company and Kami are considered related-party transactions. 21 Revenue-Sharing Arrangement – Cloud Services & AI Service Sharing In October 2021, the Company entered into a revenue-sharing agreement with Kami related to cloud-based services associated with the Company’s products. These services include storage of recorded video data, image analysis, and alert and intelligent detection services provided to end users. Under the arrangement, the Company refers customers to Kami and is entitled to a portion of the subscription revenues generated from those customers. On July 1, 2025, the Company entered into an amended agreement with Kami to revise the revenue-sharing percentages applicable to subscription revenues from referred customers. The amended terms apply prospectively and do not affect revenue recognized prior to the modification date. SCHEDULE OF ANNUAL SUBSCRIPTIONS REVENUES Annual subscription periods Percentage basis Inception through June 30, 2025 From July 1, 2025 Onwards First year during which an end user starts the cloud service subscription from Kami 30 % 30 % Second year during which an end user continues the cloud service 15 % 30 % Third year and thereafter during which an end user continues the service subscription from Kami 0 % 30 % In January 2026, based on the existing cloud services, the Company developed a new AI service module that utilizes AI technology to provide capabilities such as facial recognition, motion capture, and fall detection to end users, and the revenue sharing ratio for the AI service is consistent with the existing arrangement at 30 %. During the three months ended March 31, 2026 and 2025, revenue share from Kami amounted to $ 946,050 and $ 570,588 , respectively. The amount earned during the three months ended March 31, 2026 consisted of $ 756,008 for basic services, $ 32,660 for AI services and $ 157,382 for intelligent services Revenue - sharing arrangement - Intelligent Information Service Agreement On October 1, 2025, the Company entered a revenue-sharing arrangement related with Kami. Under the arrangement, Kami operates an artificial intelligence-driven information distribution platform and related application, which utilizes hardware products sold by the Company to generate monetization opportunities. Kami manages all aspects of the platform operations, including content distribution, pricing, bidding processes, and relationships with third-party traffic or content providers. The Company does not operate the platform or application, does not control the underlying services provided to end users, and does not have any ongoing performance obligations after the sale of its hardware products. Instead, the Company is contractually entitled to receive 30 % of net monetization revenue generated by Kami from users associated with the Company’s products. Net monetization revenue represents gross receipts collected by Kami from third-party platforms, less applicable platform fees and related charges. The Company concluded that it acts as an agent in this arrangement, as it does not control the services provided to end users, does not determine pricing, and does not receive gross consideration from third-party platforms. Accordingly, revenue is recognized on a net basis equal to the Company’s contractual share of monetization revenue in accordance with ASC 606. During the three months ended March 31, 2026 and 2025, the Company recognized revenue of $ 157,382 and $ nil , respectively, under this agreement. 22 Accounts receivable – related party Accounts receivable – related party primarily represents amounts due from Kami under the Company’s revenue-sharing arrangements, including the cloud services and AI services sharing arrangement and the Intelligent Information Service Agreement described above. These balances represent the Company’s contractual share of monetization revenues earned but not yet remitted by Kami as of the respective reporting dates. The increase in accounts receivable – related party as of March 31, 2026 compared to December 31, 2025 primarily reflects increased monetization activities under arrangements with Kami and the timing of settlements. Other Receivable – Related Party and Marketing Incentive Subsidy Income The Company entered into a market promotion subsidy agreement with Kami effective January 1, 2025, pursuant to which Kami agreed to provide an annual subsidy of up to $ 2 million to support the Company’s marketing activities related to Kami’s cloud services. The agreement was not renewed for 2026, and no such arrangement was in effect during the three months ended March 31, 2026. Subsidy amounts under the 2025 agreement were determined based on agreed marketing activities performed and were invoiced periodically by the Company to Kami. As these amounts were not generated from the Company’s primary revenue-producing activities, they were recognized as other income, with the related receivable recorded as “other receivable – related party.” For the three months ended March 31, 2026 and 2025, the Company recognized subsidy income of $ nil and $ 683,898 , respectively, within other income. As of March 31, 2026 and December 31, 2025, the Company had other receivable – related party balances of $ nil and $ nil , respectively. Product revenue – related party To promote adoption of Kami’s cloud subscription services, Kami launched a promotional campaign beginning in the third quarter of 2024 under which customers received a complimentary security camera upon subscribing to Kami’s cloud services. As part of this promotion, Kami purchased security cameras from the Company. For the three months ended March 31, 2026 and 2025, product revenue - related party from Kami was $ nil and $ 134 , respectively. The decline in 2026 reflects reduced promotional procurement activity following the initial launch of the promotional campaign in 2025. Consulting fee The Company engaged certain employees of Kami Vision Incorporated (“Kami”) to provide services as contractors. the Company paid Kami service fees of $ 33,611 and $ 74,486 for the three months ended March 31, 2026 and 2025, respectively. These amounts were recorded within general and administrative expenses in the consolidated statements of operations. There were no outstanding balances payable to Kami related to consulting services as of March 31, 2026 or December 31, 2025. Sean Da As of March 31, 2026 and December 31, 2025, amounts due from the Company’s majority stockholder were $ 146,979 and $ 440,596 , respectively, and are included within “other receivable – related party” in the consolidated balance sheets. These balances primarily represent advances made for business travel and related expenditures incurred on behalf of the Company. As of December 31, 2025, the balance of $ 440,596 represented a note receivable - stockholder, which was fully repaid as of March 31, 2026. Beginning in 2025, the Company made advance payments to the Company’s majority stockholder, Sean Da, to cover business travel and other operating expenditures incurred on behalf of the Company. These advances are recorded within “other receivable – related party” until the related expenses are substantiated and recognized in the Company’s financial statements. 23 During three months ended March 31, 2026, business travel expenses of $ 21,736 were incurred on behalf of the Company and recognized as operating expenses. As of March 31,2026, the remaining balance of $ 146,979 represents unsubstantiated or unused advances and is included in “other receivable – related party.” Of the $ 146,979 , $ 50,000 was collected as of May 18, 2026. Balance % of Total Asset Balance % of Total Asset March 31, December 31, 2026 2025 Balance % of Total Asset Balance % of Total Asset Other receivable – related party 146,979 1 % 440,596 0 % Total $ 146,979 1 % $ 440,596 0 % ZKCam Technology Limited Balance % of Total Asset Balance % of Total Asset March 31, December 31, 2026 2025 Balance % of Total Assets Balance % of Total Assets Accounts receivable - related party $ 569,252 5 % $ 433,888 3 % Total $ 569,252 5 % $ 433,888 3 % ZKCam Technology Limited (“ZKCam”) is an affiliate of the Company. The Company commenced product sales to ZKCam in 2025 following the execution of a product sales agreement in the same year. Transactions with ZKCam are conducted in the ordinary course of business and primarily consist of the sale of products. For the three months ended March 31, 2026 and 2025, product revenue recognized from ZKCam totaled $ 135,364 and $ nil , respectively. Amounts due from ZKCam primarily arose from these product sales and represent trade receivables generated in the normal course of business. As of March 31, 2026, the outstanding balance due from ZKCam was $ 569,252 , which is included in accounts receivable – related party in the consolidated balance sheets. These receivables are unsecured, non-interest-bearing, and due on demand. The Company evaluates the collectability of related party receivables on an ongoing basis and believes the outstanding balance as of March 31, 2026 is fully collectible. Shanghai Xiaoyun Technology Co., Ltd. Balance % of Total Assets Balance % of Total Assets March 31, December 31, 2026 2025 Balance % of Total Assets Balance % of Total Assets Other receivable - related party $ 4,143 0 % $ 4,035 0 % Accounts Receivable - related party $ 517 0 % $ - - % Total $ 4,660 0 % $ 4,035 0 % Shanghai Xiaoyun Technology Co., Ltd. (“Xiaoyun”) was previously a variable interest entity (“VIE”) of the Company and was deconsolidated in December 2025 when the Company ceased to meet the criteria for consolidation. Following the deconsolidation, Xiaoyun is considered a related party of the Company. After the deconsolidation, due to the transition period, some product links of certain Amazon UK stores have not been removed from the website. AMC still sells some products through Amazon stores in Europe. After evaluation by the management, these sales are considered as direct transactions with Xiaoyun Amounts due from Xiaoyun primarily arose from transactions in the ordinary course of business subsequent to deconsolidation. The balance outstanding as of March 31, 2025 represents trade receivables, is non-interest-bearing, and is due on demand. During the three months ended March 31, 2026 and 2025, product revenue recognized from Xiaoyun totaled $ 517 and $ nil , respectively. As of March 31, 2026 and December 31, 2025, the remaining Other receivable - related party balance was $ 4,143 and $ 4,035 , respectively. 24 The Company evaluated and recorded the related-party receivable balance as of March 31, 2026 based on the underlying books and records. Management assesses collectability on an ongoing basis and believes the amount is recoverable as of March 31, 2026. Kunshan Ant Vision Electronic Technology Co., Ltd Balance % of Total Assets Balance % of Total Assets March 31, December 31, 2026 2025 Balance % of Total Assets Balance % of Total Assets Accounts Receivable - related party $ 667 1 % $ - - % Total 667 1 % $ - - % Balance % of Total Assets Balance % of Total Assets March 31, December 31, 2026 2025 Balance % of Total Liabilities Balance % of Total Libilities Other payable - related party $ 1,786 1 % $ - - % Total $ 1,786 1 % $ - - % Kunshan Ant Vision Electronic Technology Co., Ltd(“Yishijue”) was previously a variable interest entity (“VIE”) of the Company and was deconsolidated in December 2025 when the Company ceased to meet the criteria for consolidation. Following the deconsolidation, Yishijue is considered a related party of the Company. After the deconsolidation, due to the transition period, some product links of certain Amazon European stores have not been removed from the website. AMC still sells some products through Amazon stores in Europe. After evaluation by the management, these sales are considered as direct transactions with Yishijue Amounts due from Yishijue primarily arose from transactions in the ordinary course of business subsequent to deconsolidation. The balance outstanding as of March 31, 2025 represents trade receivables, is non-interest-bearing, and is due on demand. During the three months ended March 31, 2026 and 2025, product revenue recognized from Yishijue totaled $ 667 and $ nil , respectively. As of March 31, 2026 and December 31, 2025, the remaining Other payable - related party balance was $ 1,786 and $ nil , respectively. The Company evaluated and recorded the related-party receivable balance as of March 31, 2026 based on the underlying books and records. Management assesses collectability on an ongoing basis and believes the amount is recoverable as of March 31, 2026 7. ACCRUED AND OTHER LIABILITIES As of March 31, 2026 and December 31, 2025, total accrued expenses and other liabilities were $ 672,727 and $ 701,844 , respectively. Accrued expenses and other liabilities primarily consist of short-term operational obligations, including credit card payables, insurance premiums payable, attorney fees payable, audit fees payable, and other miscellaneous accrued expenses. The overall decrease of $ 29,117 from December 31, 2025 to March 31, 2026 was primarily driven by lower professional fee accruals. Audit fees payable increased significantly from $ 33,033 to $ 176,400 , reflecting ongoing audit and financial reporting activities, and attorney fees payable of $ 125,000 were recognized in the current period. In addition, credit card payables of $ 18,533 as of March 31, 2026 represent routine operating expenditures incurred but not yet settled at period end. 25 These increases were partially offset by a decrease in other payables, which declined from $ 372,591 to $ 169,734 , primarily due to the settlement of prior period accrued obligations. Insurance premiums payable also decreased from $ 187,198 to $ 134,225 as a result of payments made during the quarter. SCHEDULE OF ACCRUED AND OTHER LIABILITIES March 31, December 31, 2026 2025 Credit card payable $ 18,533 $ - Insurance premiums 134,225 187,198 Attorney fees payable 125,000 - Audit fees payable 176,400 33,033 Other payable 218,569 481,613 Total accrued and other liabilities $ 672,727 $ 701,844 8. WARRANTY LIABILITIES The Company estimates warranty liabilities based on historical product replacement rates, expected future claims, and estimated shipping and handling costs per unit. Management periodically reassesses the adequacy of the warranty reserve and adjusts the provision as necessary based on actual claims experience and updated assumptions. In estimating warranty liabilities, the Company considers historical claim rates, product-specific performance, and applicable warranty terms, including extended warranty periods in certain markets. For products sold in Europe, which are generally subject to a two-year warranty period, the Company’s estimate incorporates expected claims over the applicable coverage period. For the three months ended March 31, 2026 and 2025, the Company recognized warranty expenses of $ 1,499 and $ 9,426 , respectively. Warranty claim costs incurred during the three months ended March 31, 2026 were no t material, compared to $ 332 for the same period in 2025. As of March 31, 2026 and December 31, 2025, the total warranty liabilities were $ 38,332 and $ 36,833 , respectively, of which $ 31,493 and $ 30,023 were classified as current, and $ 6,839 and $ 6,810 were classified as non-current, respectively. The following table presents the movement of product warranty liabilities for the three months ended March 31, 2026 and 2025. SCHEDULE OF WARRANTY LIABILITY 2026 2025 Three months ended March 31, 2026 2025 Balance at the beginning of the period $ 36,833 $ 83,284 Provision for warranties, net 1,499 9,426 Warrant costs incurred - ( 332 ) Balance at the end of the period $ 38,332 $ 92,378 Including: Current portion $ 31,493 $ 75,281 Non-current portion $ 6,839 $ 17,097 26 9. LEASE The Company determines whether an arrangement is or contains a lease at inception. Lease agreements under which the Company is a lessee are evaluated for classification as either finance or operating leases. The Company’s leases are classified as operating leases. Operating lease right-of-use (“ROU”) assets and corresponding lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The ROU asset represents the Company’s right to use the underlying asset during the lease term, and the lease liability represents the Company’s obligation to make lease payments. As most of the Company’s leases do not provide an implicit interest rate, the Company uses its incremental borrowing rate, determined based on information available at the lease commencement date, to measure the present value of lease payments. Leases with an initial term of 12 months or less are not recorded on the Company’s consolidated balance sheets. Instead, lease expense for these short-term leases is recognized on a straight-line basis over the lease term. The Company has elected the practical expedient to account for lease and non-lease components as a single lease component. The Company leases office space in New York City under an operating lease with a term of approximately 39 months, which includes an option to renew. The lease requires fixed monthly payments and does not include variable lease payments based on an index or rate. In addition, on January 5, 2026, the Company, through its subsidiary AMCV Company Limited, entered into a lease agreement for office space in Vietnam with an initial term of 12 months. This lease qualifies as a short-term lease under ASC 842, and accordingly, no ROU asset or lease liability has been recognized. Instead, lease payments are recognized as rent expense on a straight-line basis over the lease term. Rent expense related to this lease was approximately $ 368 for the three months ended March 31, 2026. For the three months ended March 31, 2026, the Company recognized operating lease expense of $ 14,210 , primarily related to its New York office lease. No lease expense was recognized for the three months ended March 31, 2025. As of March 31, 2026, the Company’s operating lease ROU asset and total lease liability were $ 88,354 and $ 96,051 , respectively, compared to $ 101,221 and $ 110,102 as of December 31, 2025. The decrease reflects ongoing amortization of the ROU asset and payments made against the lease liability during the period. The components of operating lease expense for the three months ended March 31, 2026 and 2025 were as follows: SCHEDULE OF LEASE COST Operating Lease Expense 2026 2025 Three Months Ended March 31, 2026 2025 Operating lease expense $ 14,210 $ - Right-of-Use Asset and Lease Liability March 31, December 31, 2026 2025 Operating lease right-of-use assets $ 88,354 $ 101,221 Short-term operating lease liabilities ( 58,120 ) ( 57,349 ) Long-term operating lease liabilities ( 37,931 ) ( 52,753 ) Total operating lease liabilities $ ( 96,051 ) $ ( 110,102 ) Weighted-Average Lease Term and Discount Rate March 31, December 31, 2026 2025 Weighted average lease term 1.75 1.9 Weighted average discount rate 5.49 % 5.49 % Supplemental Cash Flow Information March 31, December 31, 2026 2025 Supplemental noncash information: Right-of-use asset obtained in exchange for lease obligations $ - $ 168,418 27 Future Minimum Lease Payments The following table summarizes the Company’s future lease payments under the operating lease as of March 31, 2026 SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS Future lease commitments Commitments 2026 (remaining of the year) $ 46,182 2027 53,878 Total Lease Payments $ 100,060 Less: imputed interest 　 ( 4,009 ) Less: prepayments 　 - Present value of lease liabilities 　 $ 96,051 Current portion of obligations under operating leases 58,120 Obligations under operating leases, non-current 37,931 10. CONCENTRATION RISK SCHEDULE OF CONCENTRATION RISK Customer Concentration The Company’s revenues are concentrated among a limited number of customers. The following customer accounted for 10% or more of total revenues for the three months ended March 31, 2026 and 2025: Three months ended March 31, 2026 2025 Kami Vision Incorporated 80 % 32 % As of March 31, 2026, and December 31, 2025, the following customer accounted for 10% or more of total accounts receivable – related party: March 31, December 31, 2026 2025 Kami Vision Incorporated 82 % 79 % ZKCam Technology Limited 18 % 21 % The loss of this customer or a significant reduction in purchases by this customer could have a material adverse effect on the Company’s business, financial condition, and results of operations. Supplier Concentration The Company relies on a limited number of suppliers for its inventory purchases. The following suppliers accounted for 10% or more of total purchases for the three months ended March 31, 2026 and 2025: Three months ended March 31, 2026 2025 Senslab Technology Co., Ltd (related party) 0 % 100 % ZKCam Technology Limited (related party) 83 % 0 % Third-party supplier - % 0 % 28 11. STOCKHOLDERS’ EQUITY The Company’s stockholders’ equity reflects the capital structure established upon the completion of the Business Combination on December 9, 2025, which was accounted for as a reverse recapitalization in accordance with ASC 805. Under this method of accounting, the Company was treated as the accounting acquirer and AlphaVest Acquisition Corp. (“AlphaVest”) was treated as the acquired company for financial reporting purposes. In connection with the Business Combination, AlphaVest held approximately $ 11.5 million in its trust account prior to redemptions. Following redemptions of approximately $ 2.6 million, the Company received net trust proceeds of approximately $ 8.9 million. In connection with the closing of the Business Combination on December 9, 2025, the Company received $ 8.0 million in gross proceeds from PIPE financing. In connection with the PIPE financing, the Company also issued warrants that were initially classified as a derivative liability under ASC 815. Upon the closing of the Business Combination and related transactions, the warrants no longer met the criteria for liability classification, and the remaining fair value was reclassified to additional paid-in capital. As of March 31, 2026, no PIPE warrant liability remained outstanding. As a result of the reverse recapitalization, AlphaVest’s historical equity was eliminated and replaced with the equity structure of the combined company, including the retroactive restatement of shares and per share amounts for all periods presented. During the three months ended March 31, 2026, the Company issued 5,000 shares of common stock upon the exercise of warrants at an exercise price of $ 4.017 per share, resulting in total cash proceeds of $ 20,085 . The proceeds were recorded as an increase to common stock and additional paid-in capital. As a result, the Company’s total shares of common stock outstanding increased from 22,595,363 as of December 31, 2025 to 22,600,363 as of March 31, 2026. There were no other material changes to stockholders’ equity during the three months ended March 31, 2026. Refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 for additional details regarding the Business Combination. 12. SEGMENT REPORTING The Company determines its reportable operating segments using the “management approach” in accordance with ASC 280, Segment Reporting . Under this approach, operating segments are based on the internal reporting structure used by the Company’s chief operating decision maker (“CODM”) to allocate resources and assess operating performance. The Company’s Chief Executive Officer serves as the CODM and evaluates segment performance primarily based on segment revenue and segment net income (loss). The Company operates online stores on e-commerce platforms with separate platform accounts serving North America and Europe. Accordingly, the Company has identified two reportable operating segments: (1) North America (including assets and operating results of AMCV) and (2) Europe. Revenue generated through these e-commerce platforms is the primary performance indicator, as the Company’s business model is focused on selling products through online marketplace stores. Following the termination of the Company’s variable interest entity (“VIE”) arrangements in December 2025, the Company no longer has operations in China , and therefore does not present a China segment for the three months ended March 31, 2026. 29 Segment revenues are directly attributed to the geographic region in which the sales are generated. Cost of revenues and operating expenses are allocated based on the relative proportion of revenue generated by each segment. Interest income and interest expense are allocated based on the use of underlying assets or liabilities within each segment. Other segment expenses are not material individually and are not presented separately. SCHEDULE OF SEGMENT REPORTING North America Europe Total North America Europe China Total Three months ended Three months ended March 31, March 31, 2026 2025 North America Europe Total North America Europe China Total REVENUES Product revenue $ 104,528 $ - $ 104,528 $ 823,942 $ 397,861 $ - $ 1,221,803 Product revenue - related party 132,854 1,184 134,038 134 - - 134 Revenue share – related party 752,256 3,752 756,008 384,805 185,783 - 570,588 Intelligent Information Service - related party 156,601 781 157,382 - - - - AI Service Sharing - related party 32,498 162 32,660 - - - - Total Revenues 1,178,737 5,879 1,184,616 1,208,881 583,644 - 1,792,525 Less: Cost of Revenue: E-commerce platform expenses 16,494 82 16,576 240,065 115,903 - 355,968 Product cost 139,618 1,184 140,802 613,452 296,172 - 909,624 Delivery and freight cost 6,242 31 6,273 8,888 4,290 - 13,178 Inventory impairment losses 307 2 309 17,147 8,278 - 25,425 Total Cost of Revenue 162,661 1,299 163,960 879,552 424,643 - 1,304,195 Gross Profit 1,016,076 4,580 1,020,656 329,329 159,001 - 488,330 Less: Operating Expenses: Marketing and advertising 9,418 47 9,465 266,176 128,510 - 394,686 Consulting fee 33,444 167 33,611 60,052 28,993 - 89,045 Warranty expense 1,493 7 1,500 6,357 3,069 - 9,426 Payroll expenses 218,814 1,091 219,905 81,408 39,304 - 120,712 Professional fees 320,628 1,599 322,227 286,401 138,273 - 424,674 Travel and entertainment 29,589 148 29,737 17,399 8,400 - 25,799 (Reversal)/provision for credit losses - related party - - - - - - - Office expenses 19,352 97 19,449 4,068 1,965 - 6,033 Sales tax 14,510 72 14,582 11,359 5,484 - 16,843 State B&O tax - - - 30 - - 30 Other segment expenses 240,441 1,199 241,640 100,088 48,323 424 148,835 Plus: Other Income/(Expenses): Marketing campaign - - - 461,222 222,676 - 683,898 Interest income 28,509 142 28,651 318 - - 318 Loss on deconsolidation - - - - Interest expense - - - ( 9 ) - ( 16,493 ) ( 16,502 ) Other income - - - 9,516 4,594 - 14,110 Other expense ( 9,443 ) ( 47 ) ( 9,490 ) ( 4,670 ) ( 2,255 ) - ( 6,925 ) Less: Income tax ( 2,089 ) ( 10 ) ( 2,099 ) 4,323 - - 4,323 Segment Net Income (Loss) $ 145,363 $ 238 $ 145,601 $ ( 41,955 ) $ ( 18,305 ) $ ( 16,917 ) $ ( 77,177 ) 30 The following table presents total assets by segment as of March 31, 2026 and December 31, 2025. North America Europe Total North America Europe China Total March 31, 2026 December 31, 2025 North America Europe Total North America Europe China Total TOTAL SEGMENT ASSETS $ 11,243,622 $ 56,080 $ 11,299,702 $ 7,595,063 $ 3,577,523 - $ 11,172,586 13. TAXATION The Company’s provision for income taxes for the three months ended March 31, 2026 and 2025 consisted of the following: SCHEDULE OF PROVISION FOR INCOME TAXES 2026 2025 Three months ended March 31, 2026 2025 Current tax provision $ 2,099 $ 4,323 Deferred tax provision - - Total provision for income taxes $ 2,099 $ 4,323 Income Tax The Company is subject to U.S. federal and state income taxation. For the three months ended March 31, 2026 and 2025, the Company recorded state income tax expense of approximately $ 2,099 and $ 4,323 , respectively, and no federal income tax expense in either period. The Company’s effective tax rate is 1.42 % for the three months ended March 31, 2026 , compared to ( 5.93 %) in the same period last year. Our effective tax rate is higher than the U.S. federal statutory tax rate primarily as a result of projected full year profits in US. Realization of a portion of the Company’s deferred tax assets is dependent upon the Company generating sufficient taxable income in future years to obtain benefit from the reversal of temporary differences. Management considered all available evidence under existing tax law and anticipated expiration of tax statutes and determined that a full valuation allowance was required as of March 31, 2026. We have not completed a study to determine whether and ownership change per the provisions of Section 382 of the Internal Revenue Code of 1986, as amended, as well as similar state provisions, has occurred. Utilization of the Company’s net operating loss and income tax credit carryforwards may be subject to a substantial annual limitation due to ownership changes that may have occurred or that could occur in the future. These ownership changes may limit the amount of the net operating loss and income tax credit carryover that can be utilized annually to offset future taxable income. In general, an “ownership change” as defined by Section 382 of the Code results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percentage points of the outstanding stock of a company by certain stockholders. Currently the approximately 70% of the Company is owned by a single shareholder since the inception of the Company through 3/31/2026, it is unlikely that a section 382 ownership change has occurred. The following table reconciles the U.S. federal statutory income tax rate to the Company’s effective tax rate for the three months ended March 31, 2026 and 2025: SCHEDULE OF FEDERAL STATUTORY INCOME TAX RATE 2026($) 2026(%) 2025 ($) 2025(%) Three months ended March 31, 2026($) 2026(%) 2025 ($) 2025(%) Tax provision $ 31,017 21 % $ ( 15,299 ) 21.00 % Effect of State taxes $ 1,658 1.12 % $ 3,415 ( 4.69 )% federal effect of state tax in deferred $ 1,427 0.97 % $ 12,785 ( 17.55 )% Foreign tax rate differential $ - 0.00 % $ 3,553 ( 4.88 )% R&D tax credits $ - ) 0.00 % $ - ) 0.00 % Change in valuation allowance $ ( 29,270 ) ( 19.82 )% $ 1,374 ( 1.89 )% Credits generated in current year $ ( 1,181 ) 0.80 % $ ( 1,507 ) 2.07 % FDII $ ( 1,054 ) 0.71 % $ - 0.00 % Permanent differences $ - 0.00 % $ 2 0.00 % RTP $ - 0.00 % $ - 0.00 % Federal Tax - PY $ - 0.00 % $ - 0.00 % Federal Penalties $ - 0.00 % $ - 0.00 % Rounding $ ( 499 ) ( 0.34 )% - 0.00 % Effective tax rate $ 2,099 1.42 % $ 4,323 ( 5.93 )% 31 Deferred Tax As of March 31, 2026 and December 31, 2025, the Company had no net deferred tax assets due to a full valuation allowance recorded against its deferred tax assets. The components of deferred tax assets and liabilities were as follows: SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS March 31, December 31, 2026 2025 Deferred tax asset attributable to: Tax effect of net operating losses carried forward $ 277,994 $ 290,635 Section 174 costs, net 49,891 66,522 Warranty liabilities 9,673 9,295 Inventory reserve 67,431 67,431 Tax credits 66,912 66,716 State tax ( 19,562 ) ( 18,793 ) Lease Liability 13,312 27,784 Right of Use Asset ( 12,266 ) ( 25,543 ) FIN 48 1,392 - Deferred tax assets 454,777 484,047 Less: valuation allowance ( 454,777 ) ( 484,047 ) Deferred tax assets, net $ - $ - In assessing the realizability of deferred tax assets, management evaluates whether it is more likely than not that such assets will be realized. Based on available evidence, including historical operating results, cumulative losses, projected future taxable income, and tax planning strategies, management determined that a full valuation allowance was required as of March 31, 2026 and December 31, 2025. As of March 31, 2026, the Company had federal net operating loss carryforwards of approximately $ 1.2 million and state net operating loss carryforwards of approximately $ 0.6 million, which may be available to offset future taxable income, subject to applicable limitations. Uncertain Tax Positions In accordance with authoritative guidance, the impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The Company provided for state taxes for which the Company has a state filing requirement but has chosen not to file in these states. The Company recognizes interest and penalties related to unrecognized tax positions within the income tax expense line in the accompanying consolidated statements of operations. If the uncertain tax positions were recognized, there would not be a material impact on the effective tax rate. There were no accrued interest and penalties associated with uncertain tax positions as of March 31, 2026 or December 31, 2025. A reconciliation of the amount of unrecognized tax benefits is as follows: SCHEDULE OF UNRECOGNIZED TAX BENEFITS March 31, December 31, 2026 2025 Beginning balances $ 6,627 $ 6,627 Increases related to current year tax positions - - Ending balances $ 6,627 $ 6,627 32 The Company is not currently under examination by federal, state, or foreign taxing authorities. As of March 31, 2026, the Company’s 2021 through 2024 tax years generally remain subject to examination for U.S. federal and state income tax purposes. In certain state jurisdictions where the Company may have nexus but has not filed income tax returns, the statute of limitations may remain open indefinitely. The Company’s foreign subsidiaries remain subject to examination by the relevant tax authorities in their respective jurisdictions. On July 4, 2025, the U.S. enacted the One Big Beautiful Bill Act. AMC is still evaluating elections it may be eligible to make, so currently not possible to evaluate the impact of the law change to AMC. 14. COMMITMENTS AND CONTINGENCIES In the ordinary course of business, the Company may be subject to various commitments and contingencies, including contractual obligations and potential legal matters. The Company evaluates such matters in accordance with ASC 450, Contingencies , and records a liability when it is probable that a loss has been incurred and the amount can be reasonably estimated. If a loss is reasonably possible but not probable, or if the amount cannot be reasonably estimated, the Company discloses the nature of the contingency. As of March 31, 2026 and December 31, 2025, the Company was not subject to any material pending or threatened litigation, claims, or assessments, and did not have any material commitments or contingencies that required accrual or disclosure in the condensed consolidated financial statements. 15. SUBSEQUENT EVENTS In accordance with ASC Topic 855, Subsequent Events , which establishes general standards for the accounting and disclosure of events that occur after the balance sheet date but before the financial statements are issued, the Company has evaluated all events and transactions that occurred after March 31, 2026 through the date the consolidated financial statements were issued. Based on this evaluation, management determined that there were no subsequent events that required recognition or disclosure in the accompanying consolidated financial statements. 33