What changed in this filing

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Item 1. Financial Statements

2026-08-14 compared with 2026-05-19 · 791 added, 857 removed, 441 unchanged (79% of the section changed)

14 unchanged sentences

Advance to suppliers – related party

Advance to suppliers

Advance to supplier

Prepayment - related party (current)

3 unchanged sentences

Prepayment - related party

Long-term investment

LIABILITIES AND STOCKHOLDERS’ EQUITY

11 unchanged sentences

TOTAL LIABILITIES

and contingencies

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

Common stock, $ 0.0001 par value, 100,000,000 shares authorized, 22,600,363 and 22,595,363 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively

Additional paid-in capital

Accumulated deficits

Accumulated deficit

( 27,368,238 )

5 unchanged sentences

ROBOTICS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

Three months ended

Six months ended

Product revenue

5 unchanged sentences

Product cost - related party

( 1,746,262 )

Delivery and freight cost

2 unchanged sentences

( 1,130,694 )

( 2,434,888 )

OPERATING EXPENSES

General and administrative expenses

( 1,739,135 )

( 1,601,648 )

Sales and marketing expenses

2 unchanged sentences

( 1,001,617 )

INCOME (LOSS) FROM OPERATIONS

( 1,799,224 )

( 2,237,700 )

LOSS FROM OPERATIONS

( 1,482,788 )

OTHER INCOME (EXPENSES)

3 unchanged sentences

Interest expense

Total Other Income , Net

INCOME (LOSS) BEFORE INCOME TAX

Income tax expense

NET INCOME (LOSS)

Total Other Income (loss), Net

LOSS BEFORE INCOME TAX

Income tax benefit (expense)

$ ( 175,730 )

$ ( 228,913 )

$ ( 306,090 )

Other comprehensive loss

TOTAL COMPREHENSIVE INCOME (LOSS)

NET INCOME (LOSS) PER SHARE:

NET INCOME(LOSS) PER SHARE:

TOTAL COMPREHENSIVE LOSS

$ ( 175,912 )

$ ( 228,976 )

$ ( 306,263 )

NET LOSS PER SHARE:

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:

13 unchanged sentences

$ ( 2,408,902 )

Kami subscription contribution

Other comprehensive loss

Balance as of June 30, 2025

$ ( 2,776,678 )

Balance as of January 1, 2026

1 unchanged sentence

Issuance of shares from exercise of warrants

Net income (loss)

Other comprehensive loss

1 unchanged sentence

$ ( 27,192,508 )

Net income (loss)

Other comprehensive loss

Balance as of June 30, 2026

$ ( 27,368,238 )

accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three months ended

Six months ended

CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss)

Adjustments to reconcile net income (loss) to net cash (used in)/provided by operating activities:

$ ( 306,090 )

Adjustments to reconcile net loss to net cash (used in)/provided by operating activities:

Provision for warranty

10 unchanged sentences

Advance to suppliers

Advance to suppliers – related party

( 1,056,527 )

Prepayment - related party

Accounts payable

Accounts payable - related party

( 3,425,910 )

Accrued and other liabilities

5 unchanged sentences

CASH FLOWS FROM INVESTING ACTIVITIES

Long-term investment

( 1,000,000 )

Repayment of note receivable - stockholder

2 unchanged sentences

$ ( 1,000,000 )

$ ( 529,432 )

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from exercised warrants

Net cash provided by financing activities

Effect of changes of foreign exchange rate on cash and cash equivalent

Capital contribution from the shareholder

Repayment of short-term loan

Net cash provided by (used in) financing activities

$ ( 321,982 )

Effect of exchange-rate changes on cash and cash equivalents

Net decrease in cash and cash equivalents

( 2,460,248 )

Cash and cash equivalents - beginning of the period

4 unchanged sentences

NON-CASH INVESTING AND FINANCING ACTIVITIES

Common shares issued but not paid

Right-of-use asset obtained in exchange for lease obligation

Unpaid deferred offering cost

6 unchanged sentences

The Company conducts its operations through its wholly owned subsidiaries.

Company and its consolidated subsidiaries as of March 31, 2026 are as follows:

Company and its consolidated subsidiaries as of June 30, 2026 are as follows:

SCHEDULE OF COMPANY AND ITS SUBSIDIARIES AND CONSOLIDATED ENTITIES

of Incorporation

Incorporation

Robotics Corporation (F/K/A AlphaVest Acquisition Corp.)

10 unchanged sentences

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.

As of June 30, 2026, AMCV had not generated

external revenues and continued to conduct operational setup activities, including administrative, hiring, procurement, and manufacturing

support functions.

The accompanying unaudited condensed consolidated financial statements include the accounts of AMCV from its date

of incorporation.

Although AMCV incurred operating expenses during the six months ended June 30, 2026, its impact on the Company’s

consolidated financial position and results of operations remained immaterial.

Recapitalization and Basis of Presentation

16 unchanged sentences

Stockholders’ Equity.

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.

of June 30, 2026, the Company had 22,600,363 shares of common stock issued and outstanding.

During the six months ended June 30, 2026,

there were no significant changes to the Company’s capital structure, except for the exercise of 5,000 warrants for 5,000 shares

of common stock.

Interest Entities

8 unchanged sentences

deconsolidated these entities as of that date.

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.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Principles of Consolidation

as of June 30, 2026, the Company does not have any VIEs and does not have any continuing involvement with Xiaoyun or Yishijue through

the former VIE contractual arrangements or exposure to losses as the primary beneficiary of either entity.

Following the deconsolidation,

Xiaoyun and Yishijue have been treated as related parties, and the Company continued to engage in limited ordinary-course and transitional

transactions with these entities, as further described in Note 6 – Related Party Balances and Transactions.

OF SIGNIFICANT ACCOUNTING POLICIES

of Presentation and Principles of Consolidation

accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S.

6 unchanged sentences

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.

operations for the six months ended June 30, 2026, are not necessarily indicative of the results that may be expected for the full year

ending December 31, 2026.

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.

Company’s fiscal year-end date is December 31.

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.

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.

Currency translation

1 unchanged sentence

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”).

The functional currency of the Company and AMC, its wholly

subsidiary, is the USD.

The functional currency of the Company’s Vietnam subsidiary, AMCV, is the Vietnamese Dong (“VND”).

denominated in currencies other than the functional currency are translated at exchange rates prevailing on the transaction dates, with

4 unchanged sentences

are recorded in accumulated other comprehensive income (loss).

the three months ended March 31, 2026, the Company used the following exchange rates for its Vietnam subsidiary:

the six months ended June 30, 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

Period ended June 30, 2026

Balance sheet,

except for equity accounts

VND to $ 1 USD

Income statement and cash flows

Income statement and cash

VND to $ 1 USD

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.

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:

sheet, except for equity accounts

statement and cash flows

For the six months ended June 30, 2026, the Company recognized a foreign currency translation loss of approximately $ 669

in other comprehensive loss, primarily related to the translation of AMCV’s VND-denominated financial statements.

to the deconsolidation of Xiaoyun and Yishijue on December 1, 2025, these VIE entities used the Renminbi (“RMB”) as their

functional currency.

For the six months ended June 30, 2025, the Company recognized a foreign currency translation

loss of approximately $ 173 in other comprehensive loss.

The following table presents the RMB exchange rates used for translation purposes

during the six months ended June 30, 2025:

Balance sheet, except for equity accounts

RMB to $ 1 USD

Income statement and cash flows

RMB to $ 1 USD

and Cash Equivalents

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.

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.

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.

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.

Cash equivalents primarily consist of money market funds.

of June 30, 2026 and December 31, 2025, the Company had cash and cash equivalents of $ 4,544,353 and $ 7,004,601 , respectively.

Receivable and Accounts Receivable - Related Party

receivable is stated at the amount the Company expects to collect from customers through e-commerce platforms.

Accounts receivable -

1 unchanged sentence

Refer to Note 6 - Related Party Balances and Transactions.

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.

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.

Company evaluates expected credit losses on accounts receivable, including related party balances, in accordance with ASC 326 using

a loss-rate method that considers historical loss experience, current conditions, and reasonable and supportable

of June 30, 2026 and December 31, 2025, no allowance for expected credit losses was recorded, as historical credit losses have been insignificant and management determined

that expected credit losses were not material.

receivable - related party

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.

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.

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.”

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.

receivables - related party primarily consist of amounts due from Kami for marketing-related activities and from Ants Technology (HK)

Limited (“Ants”) for operational and settlement-related transactions.

Company evaluates expected credit losses on other receivables - related party in accordance with ASC 326 using a loss-rate methodology

described in “Accounts Receivable and Accounts Receivable - Related Party” above.

of June 30, 2026 and December 31, 2025, no allowance for expected credit losses was recorded, as management determined that expected credit losses were not material.

consist primarily of finished goods and include product costs and freight-in costs.

Product costs are determined using the moving average

Freight-in costs are capitalized as part of inventory and allocated to products based on average cost per unit.

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.

significant portion of the Company’s inventories is purchased from related parties, including ZKCam Technology Limited.

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.

Company generated revenues of $ 1,184,616 and $ 1,792,525 for the three months ended March 31, 2026 and 2025, respectively.

Inventories are stated at the lower of cost or net realizable value (“NRV”).

Inventory write-downs, if any, are recognized in cost of revenues when carrying amounts exceed estimated NRV.

significant portion of the Company’s inventories is purchased from related parties.

Refer to Note 6 - Related Party Balances and Transactions and Note 11 - Concentration Risk for additional information.

Company generated revenues of $ 937,177 and $ 2,121,793 for the three and six months ended June 30, 2026, respectively, compared with $ 1,397,275

and $ 3,189,800 for the corresponding periods ended June 30, 2025.

SCHEDULE OF REVENUE

Three months ended

Six months ended

Product revenue

1 unchanged sentence

Revenue share - related party

Intelligent Information Service - related party

AI Service Sharing - related party

Total revenues

2 unchanged sentences

of promised goods or services is transferred to customers in an amount that reflects the consideration to which the Company expects to

The Company applies the five-step model to each of its revenue streams, as described below.

Revenue is reported net of value

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.

product sales via e-commerce platforms, primarily Amazon, as well as direct sales to customers, contracts are established through customer

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.

is recognized at a point in time when control of the products transfers to the customer, which is generally upon shipment.

platforms facilitate shipping and collection;

however, the Company retains control of the products prior to transfer.

Revenue is reported net of applicable value

Company generates product revenue from both third-party customers and related parties, including ZKCam Technology Limited, Xiaoyun and

from product sales is recognized at a point in time when control of the products transfers to the customer, generally upon shipment or

delivery, depending on the contractual terms.

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.

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.

Share – Related Party (Kami)

revenue sharing arrangements with its related party, Kami, related to cloud-based services & AI service sharing and intelligent information

revenue-sharing arrangements with its related party, Kami, relate to cloud-based services, AI service sharing and intelligent information

services & AI service sharing

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.

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.

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

Accordingly, the modification is accounted for prospectively and did not result in any adjustment to revenue previously

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.

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.

sharing ratio of revenue AI service and is consistent , at 30%

Company has entered into a revenue-sharing agreement with Kami, under which the Company refers customers to Kami’s cloud-based

The Company does not control the underlying services provided by Kami and acts as an agent in the arrangement.

Accordingly, revenue is recognized on a net basis representing the Company’s contractual share of the underlying subscription revenue

earned by Kami from referred customers.

July 1, 2025, the

agreement was amended to provide the Company with 30% of subscription revenues from new customers referred by the Company during the

first three years of their recurring subscriptions.

The modification is accounted for prospectively.

January 2026, a new AI service module was added to the existing cloud services, providing AI-enabled capabilities such as face

recognition, motion capture, and fall detection.

Revenue generated from these services is included within “Revenue Share - related

party” in the accompanying condensed consolidated statements of operations.

The Company’s revenue-sharing percentage for AI

services is 30%.

information services

2 unchanged sentences

monetization channels developed and operated by its business partners.

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.

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.

The Company does not control the underlying services provided to end users and acts as an agent in these arrangements.

Revenue is recognized on a net basis when the underlying services are delivered by the business partners and the related consideration

is earned and becomes determinable.

Revenue generated from these services is included within “Revenue Share - related party”

in the accompanying condensed consolidated statements of operations.

Return Policy

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

Within these specified periods, the Company offers a full refund for returned products, provided the return criteria are met.

Company recognizes revenues adjusted for returns based upon the e-commerce platform statements, which reflect the actual refunds for

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.

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.

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.

returns or refund estimates are recorded for these revenue streams.

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.

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

The Company recognizes revenue net of estimated product returns based on e-commerce platform activity and subsequent

return information.

During the six months ended June 30, 2026 and 2025, product returns did not have a significant impact on revenue.

Revenue-sharing arrangements with Kami do not give rise to product return rights or refund obligations for the Company;

accordingly, no return or refund estimates are recorded for these revenue streams.

Company provides standard product warranties on products sold through e-commerce platforms, generally for one year in North

America and two years in Europe.

warranties are assurance-type warranties under ASC 606 and are not accounted for as separate

performance obligations.

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.

versus Net Revenue Presentation

Company evaluates whether it acts as a principal or agent in accordance with ASC 606.

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.

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

Accordingly, revenue is recognized on a net basis, representing the Company’s share of the consideration generated

from end users.

of revenues includes cost of products, e-commerce platform fees, delivery and freight costs, and inventory impairment loss.

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.

The Company records a warranty liability for estimated replacement costs at the time of sale based on historical

experience and current expectations.

of revenues consists primarily of product costs, e-commerce platform fees, delivery and freight costs, and inventory impairment losses.

The Company incurred cost of revenues of $ 186,570 and $ 350,530

for the three and six months ended June 30, 2026, respectively, compared with $ 1,130,694 and $ 2,434,888 for the three and six months

ended June 30, 2025, respectively.

and administrative expenses

and administrative expenses primarily consist of costs for consulting fee, payroll expenses, storage fees, and professional fees.

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.

and administrative expenses consist primarily of consulting fees, payroll and employee-related expenses, storage fees, and professional

The Company recorded general and administrative expenses of $ 884,349

and $ 1,739,135 for the three and six months ended June 30, 2026, respectively, compared with $ 784,236 and $ 1,601,648 for the three and

six months ended June 30, 2025, respectively.

and marketing expenses

and marketing expenses primarily consist of costs for the promotion of business brand and product marketing and warranty expenses.

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.

and marketing expenses consist primarily of brand promotion,

product marketing, and warranty costs.

The Company incurred sales and marketing

expenses of $ 19,758 and $ 34,090 for the three and six

months ended June 30, 2026, respectively, compared with $ 208,107 and $ 612,219

for the corresponding periods in 2025.

for credit losses

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

the three months ended March 31, 2026 and 2025, the Company did no t record a provision for expected credit losses.

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.

the six months ended June 30, 2026 and 2025, the Company did no t record a provision for expected credit losses.

Comprehensive

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.

the periods presented, the Company’s comprehensive income (loss) consists of net income (loss) and foreign currency

translation adjustments.

During the three months ended June 30, 2026 and 2025, the Company recognized other comprehensive loss of

respectively.

During the six months ended June 30, 2026 and 2025, the Company recognized other comprehensive loss of $ 669 and

respectively.

The 2026 foreign currency translation adjustments primarily relate to AMCV, the Company’s Vietnam subsidiary, while the 2025 adjustments relate to the Company’s former VIEs in China prior to their

deconsolidation on December 1, 2025.

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.

allowances are recorded to reduce deferred tax assets when it is more likely than not that such assets will not be realized.

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.

Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the position will be sustained upon

Interest and penalties related to uncertain tax positions are recognized as a component of income tax expense.

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.

Deferred tax assets and liabilities are recognized for temporary differences

between the financial statement carrying amounts and the tax bases of assets and liabilities.

As of June 30, 2026 and December 31, 2025, the Company maintained a full valuation allowance against its deferred

Refer to Note 14 – Taxation for additional information.

Investment in Public Equity (“PIPE”) Financing and PIPE Warrants

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”).

connection with the PIPE Financing, the Company issued warrants to purchase shares of its common stock (the “PIPE

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.

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 .

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.

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 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.

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.

and diluted earnings per share were calculated as follows:

connection with the Business Combination completed in December 2025, the Company issued PIPE Warrants that, following a reset event on

December 30, 2025, became exercisable for an aggregate of 5,576,301

shares of common stock.

Following the reset, the PIPE Warrants met the criteria for equity classification and were

reclassified from derivative liabilities to equity.

PIPE Warrants contain dividend participation rights and are considered participating securities for purposes of computing earnings per

share in accordance with ASC 260, Earnings Per Share.

Earnings/loss

Company applies the two-class method in computing earnings per share because its PIPE Warrants are participating securities.

Undistributed earnings are allocated between common stockholders and participating securities based on their respective

participation rights.

Participating securities do not share in the Company’s losses.

the three and six months ended June 30, 2026 and 2025, the Company incurred net losses.

Accordingly, no losses were allocated to the

PIPE Warrants because the participating securities do not have a contractual obligation to share in the Company’s losses.

and diluted loss 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)

Six Months Ended

Basic loss per share:

$ ( 175,730 )

$ ( 228,913 )

$ ( 306,090 )

income allocated to participating securities

Net income (loss) allocated to common stockholders

Net loss allocated to common stockholders

$ ( 175,730 )

$ ( 228,913 )

$ ( 306,090 )

Weighted-average shares outstanding – basic

Earnings per share – basic

Diluted earnings per share

Net income (loss)

Loss per share – basic

Diluted loss per share:

$ ( 175,730 )

$ ( 228,913 )

$ ( 306,090 )

Weighted-average shares outstanding – diluted

Earnings per share – 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.

value measurements

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:

Inputs are based upon unadjusted quoted prices for identical instruments traded in active markets;

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.

Inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants

would use in pricing the asset or liability.

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.

Loss per share – diluted

the three and six months ended June 30, 2026 and 2025, the PIPE Warrants were excluded from the computation of diluted

loss per share because their effect would have been anti-dilutive.

Accordingly, diluted loss per share was equal to basic loss per

share for all periods presented.

Fair value measurements

The Company applies ASC 820, Fair Value Measurement , to financial assets and liabilities measured at fair

The carrying amounts of the Company’s short-term financial assets and liabilities approximate fair value due primarily to

their short-term maturities.

Cash equivalents are measured using Level 1 inputs.

Company’s long-term investment is accounted for under the measurement alternative in ASC 321 and is carried at cost, less impairment,

and adjusted for observable price changes resulting from orderly transactions involving an identical or similar investment of the same

of June 30, 2026 and December 31, 2025, the Company did not have any financial assets or liabilities measured at fair value on a recurring

basis using Level 2 or Level 3 inputs.

Company applies ASC 280, Segment Reporting , which requires operating segments to be identified based on the internal reporting

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chief executive officer serves as the CODM.

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:

As of June 30, 2026, the Company had two reportable segments:

North America and Europe.

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.

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

Accordingly, the Vietnam operations do not constitute a separate operating or reportable segment under ASC 280.

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.

Refer to Note 13 – Segment Reporting for additional information.

of Previously Issued Consolidated Financial Statements

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.

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.

the preparation of the Company’s unaudited condensed consolidated financial statements for the three months 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.

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 .

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.

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:

108, Considering the Effects of Prior Year

Misstatements when Quantifying Misstatements in Current Year Financial Statements .

concluded that the errors were not material, individually or in the aggregate, to the Company’s previously issued consolidated

financial statements for the year ended December 31, 2025.

Accordingly, amendment or reissuance of those financial statements was not

However, management further concluded that correcting the errors entirely in the current reporting period would materially

misstate the Company’s results of operations for the three and six months ended June 30, 2026.

Accordingly, the comparative prior-period

balances presented in these unaudited condensed consolidated financial statements have been revised to correct the immaterial prior-period

effect of the revision 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

Previously Reported

Accrued and other liabilities

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issued accounting pronouncements

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.

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.

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.

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

(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.

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.

July 2025, the Financial Accounting Standards Board issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326):

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.

amendments in this update are effective for fiscal years beginning after December 15, 2025, including interim periods within those fiscal

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense

Disaggregation Disclosures (Subtopic 220-40) , which requires public business entities to provide additional disaggregation of certain

expenses in the notes to the financial statements.

The guidance is effective for annual reporting periods beginning after December 15,

2026, and for interim periods within annual reporting periods beginning after December 15, 2027.

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.

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.

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.

is evaluating the potential impact of this guidance on its consolidated financial statements and related disclosures.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326):

of Credit Losses for Accounts Receivable and Contract Assets .

The Company adopted the guidance effective January 1, 2026.

did not have a material impact on the Company’s condensed consolidated financial statements or related disclosures.

The Company does not expect other recently issued accounting standards not yet adopted to have a material impact

on its condensed consolidated financial statements or related disclosures.

Growth Company

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.

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.

receivable represents amounts due from customers in the ordinary course of business, primarily from e-commerce platform sales.

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.

of March 31, 2026 and December 31, 2025, the Company had inventory balances of $ 914,678 and $ 1,069,465 , consisting of the following:

The Company is an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 and

continues to qualify as such as of June 30, 2026.

The Company has elected to use the extended transition period for complying with new or revised accounting standards.

Accordingly, the Company may adopt such standards on the effective dates applicable to private companies when different effective dates

receivable represent amounts due from customers in the ordinary course of business, primarily from e-commerce platform sales.

receivable are recorded at the invoiced amount and are generally due within normal trade terms.

of June 30, 2026 and December 31, 2025, accounts receivable were $ 268 and $ 427 , respectively.

The Company evaluates accounts receivable

for expected credit losses in accordance with ASC 326, Financial Instruments—Credit Losses.

Based on the short-term nature of the

receivables, the credit quality of the Company’s customers, historical collection experience, and management’s assessment

of current and expected economic conditions, no allowance for expected credit losses was considered necessary as of June 30, 2026 or

December 31, 2025.

consist primarily of finished goods held for sale and are stated at the lower of cost or net realizable value.

Cost is determined using

the moving average cost method and includes the purchase price of inventory and directly attributable freight-in costs.

of June 30, 2026 and December 31, 2025, inventories consisted of the following:

SCHEDULE OF INVENTORY NET

3 unchanged sentences

Inventory, net

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 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.

movement of inventory impairment provisions are summarized as follows:

SCHEDULE OF INVENTORY IMPAIRMENT PROVISIONS

Company evaluates inventories periodically to determine whether their carrying amounts exceed estimated net realizable value.

impairment losses are recognized in cost of revenues in the period in which the decline in value is identified.

Amounts previously included

in the inventory impairment reserve are utilized when the related inventories are sold, disposed of, otherwise utilized, or replaced

under warranty.

the three months ended June 30, 2026, the Company recognized an inventory impairment provision of approximately $ 49,620 ,

as the cost of certain inventories exceeded their estimated net realizable value.

During the same period, the Company utilized

approximately $ 37,200

of the inventory impairment reserve in connection with inventories sold or otherwise utilized.

As a result, the inventory impairment

reserve increased from $ 212,638 to $ 225,058

during the three-month period.

the six months ended June 30, 2026, the Company recognized inventory impairment provisions of approximately $ 49,929 and utilized approximately

$ 93,131 of the inventory impairment reserve, primarily related to inventories sold or otherwise utilized during the period.

the inventory impairment reserve decreased from $ 268,260 as of December 31, 2025 to $ 225,058 as of June 30, 2026.

the three months ended June 30, 2025, the Company recognized an inventory impairment provision of $ 60,648 , as inventory cost exceeded

net realizable value, and recorded reductions of $ 234,841 for inventories sold, removed, or replaced under warranty.

As a result, the

inventory impairment reserve decreased from $ 551,925 as of March 31, 2025 to $ 377,732 as of June 30, 2025.

the six months ended June 30, 2025, the Company recognized inventory impairment provisions of $ 86,073 and utilized $ 506,387 of the inventory

impairment reserve in connection with inventories sold, removed, or replaced under warranty.

As a result, the inventory impairment reserve

decreased from $ 798,046 as of January 1, 2025 to $ 377,732 as of June 30, 2025.

activity in the inventory impairment reserve was as follows:

SCHEDULE OF INVENTORY IMPAIRMENT RESERVE

Three months ended

Six months ended

Balance at the beginning of the period

Balance at the end of the period

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.

of June 30, 2026 and December 31, 2025, the Company had prepaid expenses of $ 239,884 and $ 355,467 , respectively.

Prepaid expenses primarily

consisted of prepaid insurance premiums, professional and regulatory fees, research and development services, logistics and shipping

costs, software subscriptions, and other routine operating expenses.

The decrease during the six months ended June 30, 2026 was primarily

attributable to the amortization or utilization of prepaid insurance and other operating prepayments in the ordinary course of business.

PARTY BALANCES AND TRANSACTIONS

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:

Company’s principal related parties with which it had transactions during the three and six months ended June 30, 2026 and 2025,

or had balances as of June 30, 2026 and December 31, 2025, are as follows:

with the Company

and Board Chair, and majority stockholder

Executive Officer, Chairman of the Board, and majority stockholder

HK Limited (hereinafter referred to as “Senslab HK”)

Technology Co., Ltd (hereinafter referred to as “Senslab SH”)

Technology (HK) Limited (hereinafter referred to as “Ants”)

Vision Incorporated (hereinafter referred to as “Kami”)

Technology Co., Ltd

Technology (HK) Limited

Vision Incorporated

Information Technology Co., Ltd (hereinafter referred to as “Yunyizhilian”)

1 unchanged sentence

Xiaoyun Technology Co., Ltd.

(hereinafter referred to as “Xiaoyun”)

Ant Vision Electronic Technology Co., Ltd.

(hereinafter referred to as “Yishijue”)

variable interest entity (“Former VIE”)

Yishijue Technology Limited.

variable interest entity (“Former VIE”)

Stockholder of the Company

of Related Party Transactions on Operations

the three months ended March 31, 2026 and 2025, related party transactions had the following impact on income (loss) before income tax:

the three and six months ended June 30, 2026 and 2025, related-party transactions had the following impact on income (loss) before income

SCHEDULE OF RELATED PARTY TRANSACTIONS

Related Party Transactions

Income (loss) before income tax

Impact on pre-tax loss

Income Statement

Three months ended

Six months ended

Revenue share – related party (Kami)

3 unchanged sentences

Product revenue – related party (Yishijue)

Intelligent Information Service (Kami)

AI Service Sharing (Kami)

Product cost - related party (Senslab)

Intelligent Information Service revenue – related party (Kami)

AI Service Sharing revenue – related party (Kami)

Product cost -related party

( 1,746,262 )

General and administrative expenses - Consulting fee-related party (Kami)

General and administrative expenses - Stockholder’s business travel expense (Sean)

General and administrative expenses - Shareholder’s business travel expense (Sean)

General and administrative expenses - Financial consulting fee (Ants)

Other income - Marketing incentive subsidy income (Kami)

Total impact on income (loss) before income tax

% of income (loss) before income tax

Total impact on pre-tax income/(loss)

Party Balances

of March 31, 2026 and December 31, 2025, balances with related parties were as follows.

of June 30, 2026 and December 31, 2025, balances with related parties were as follows.

Balance Sheet

Related Party Transactions

As of March 31, 2026

As of June 30, 2026

Balance Sheet

1 unchanged sentence

Other receivable - related party, net

Other receivable - related party

Prepayment - related party

2 unchanged sentences

Other payable - related party

Party Transactions

Balance Sheet

Related Party Transactions

As of December

receivable - related party

receivable - related party, net

receivable - related party

to suppliers – related party

- related party

Balance Sheet

Accounts receivable - related party

Other receivable - related party, net

Advance to suppliers – related party

Prepayment - related party

Specifically,

2 unchanged sentences

Advance to suppliers - related party (Senslab HK)

Advance to suppliers – related party (Senslab SH)

Other receivable - related party (Senslab SH)

Accounts payable - related party (Senslab HK)

Accounts payable - related party (Senslab SH)

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.

Da, the Company’s Chief Executive Officer, Chairman of the Board, and majority stockholder, owns approximately 38 % of Senslab SH,

which in turn owns 100 % of Senslab HK.

Accordingly, Senslab SH and Senslab HK are 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.

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.

of March 31, 2026 and December 31, 2025, accounts payable due to Senslab HK and Senslab SH were $ nil for both periods.

the Company purchased security camera products from Senslab HK, which sourced the products from Senslab SH and exported them to the Company.

Beginning in the fourth quarter of 2023, following Senslab SH’s receipt of import and export qualifications, the Company also began

purchasing products directly from Senslab SH.

the six months ended June 30, 2026, the Company made advance payments of $ 1,056,527 to Senslab SH for anticipated inventory purchases.

As of June 30, 2026, the related inventory had not yet been received, and the amount remained recorded as advance to suppliers—related

increase in balances with Senslab SH during the six months ended June 30, 2026 primarily reflects these advance payments for anticipated

inventory procurement.

Technology (HK) Limited

3 unchanged sentences

Accounts Payable

Da, the Company’s majority stockholder, owns 95 % of Ants.

Da, the Company’s Chief Executive Officer, Chairman of the Board, and majority stockholder, owns 95 % of Ants.

Accordingly, Ants

is considered a related party of the Company.

Company entered into a consulting agreement with Ants under which Ants provides financial consulting and advisory services.

fees recognized under this agreement were $ 15,000 and $ 30,000 for the three and six months ended June 30, 2026, respectively compared

to $ 15,000 and $ 30,000 for the three and six months ended June 30, 2025, respectively.

prepayment balance represents advance payments for future consulting services under the agreement.

The decrease in the prepayment balance

during the six months ended June 30, 2026 primarily reflects the amortization of prepaid consulting fees as services were rendered.

of June 30, 2026, accounts payable due to Ants totaled $ 1,795 , compared with $ nil as of December 31, 2025.

– Related Party

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 .

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.

of March 31, 2026 and 2025, the remaining prepayment balance was $ 51,844 and $ 66,844 , respectively.

prepayment balance primarily relates to (i) advance payments for inventory purchases from Ants, (ii) amounts advanced to Ants for costs

incurred on behalf of the Company, and (iii) advance payments for financial consulting and bookkeeping support services provided by Ants

pursuant to a consulting agreement at a monthly fee of $ 5,000 , effective January 1, 2025.

the three and six months ended June 30, 2026, the Company recognized financial consulting fees of $ 15,000 and $ 30,000 , respectively,

compared with $ 15,000 and $ 30,000 for the corresponding periods in 2025.

Revenue generated from the sale of inventory purchased from

Ants was not material during any of the periods presented.

of June 30, 2026 and December 31, 2025, the remaining prepayment balances were $ 36,844 and $ 66,845 , respectively.

The decrease during

the six months ended June 30, 2026 primarily reflects the amortization of prepaid consulting fees as the related services were rendered.

receivable – related party

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.

of June 30, 2026 and December 31, 2025, the Company had gross other receivable – related party balances due from Ants of $ 4,872 .

Payable – related party

the three months ended March 31, 2026 and ,2025, AMCV purchased security cameras from Ants in the amounts of $ 1,799 and $ nil , respectively.

of March 31, 2026 and December 31, 2025, accounts payable due to Ants were $ 1,799 and $ nil , respectively.

following table presents the movement of “other receivable – related party” balances due from Ants:

the six months ended June 30, 2026, AMCV purchased security cameras from Ants in the amount of $ 1,799 .

No purchases from Ants were made during the three months ended June 30, 2026.

the three and six months ended June 30, 2025, AMCV did not purchase any security cameras from Ants.

of June 30, 2026 and December 31, 2025, accounts payable due to Ants were $ 1,795 and $ nil , respectively.

following table presents the movement in other receivable – related party balances due from Ants:

SCHEDULE OF OTHER RECEIVABLE - RELATED PARTY

7 unchanged sentences

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.

Accordingly, amounts

previously held by Ants were repaid to the Company.

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.

For the six months ended June 30, 2026 and

the year ended December 31, 2025, such activities resulted in net increases of $ nil and $ 4,872 , respectively, to the related-party

receivable balance.

Vision Incorporated

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.

Da, the Company’s Chief Executive Officer, Chairman of the Board, and majority stockholder, also serves as the Chief Executive

Officer of Kami and holds approximately 80 % of its outstanding equity interests.

Accordingly, Kami is considered a related party of the

Company, and transactions between the Company and Kami are accounted for as related-party transactions.

Revenue-Sharing

1 unchanged sentence

October 2021, the Company entered into a revenue-sharing agreement with Kami related to cloud-based services associated with the Company’s

These services include storage of recorded video data, image analysis, and alert and intelligent detection services provided

to end users.

the arrangement, the Company refers customers to Kami and is entitled to a portion of the subscription revenues generated from those

These services include cloud storage of recorded video data, image analysis, alert notifications, and intelligent detection

services provided to end users.

the arrangement, the Company refers customers to Kami and is entitled to a portion of the subscription revenue generated from those customers.

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.

revenue generated from referred customers.

The amended terms apply prospectively and do not affect revenue recognized prior to the modification

2 unchanged sentences

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

1 unchanged sentence

Third year and thereafter during which an end user continues the service subscription from Kami

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 %.

the three months ended March 31, 2026 and 2025, revenue share from Kami amounted to $ 946,050 and $ 570,588 , respectively.

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

January 2026, the Company expanded its revenue-sharing arrangement with Kami to include AI service offerings that provide end users with

advanced artificial intelligence capabilities, including facial recognition, motion detection, and fall detection.

Under the expanded

arrangement, the Company is entitled to receive 30 % of the subscription revenue generated from these AI services, consistent with the

revenue-sharing percentage applicable to cloud service subscriptions under the amended agreement.

the three months ended June 30, 2026 and 2025, the Company recognized revenue-sharing income from Kami of $ 774,087 and $ 501,307 , respectively.

Revenue recognized during the three months ended June 30, 2026 consisted of:

service revenue-sharing:

service-sharing:

● Intelligent

information service revenue-sharing:

the six months ended June 30, 2026 and 2025, the Company recognized revenue-sharing income from Kami of $ 1,720,137

and $ 1,071,895 ,

respectively.

Revenue recognized during the six months ended June 30, 2026 consisted of:

service revenue-sharing:

service-sharing:

information service revenue-sharing:

- sharing arrangement - Intelligent Information Service Agreement

October 1, 2025, the Company entered a revenue-sharing arrangement related with Kami.

the arrangement, Kami operates an artificial intelligence-driven information distribution platform and related application, which utilizes

October 1, 2025, the Company entered into an Intelligent Information Service Agreement with Kami.

the arrangement, Kami operates an artificial intelligence-driven information distribution platform and related applications that utilize

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.

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.

Kami is responsible for all aspects of platform operations,

including content distribution, pricing, bidding processes, and relationships with third-party traffic and content providers.

Company does not operate or control the platform or applications, does not control the services provided to end users, and has no ongoing

performance obligations after the sale of its hardware products.

Instead, the Company is contractually entitled to receive 30 % of the

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.

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.

the three months ended March 31, 2026 and 2025, the Company recognized revenue of $ 157,382 and $ nil , respectively, under this agreement.

gross receipts collected by Kami from third-party platforms, less applicable platform fees and other related charges.

Company concluded that it acts as an agent in this arrangement because it does not control the underlying services provided to end users,

does not establish pricing, and does not receive the gross consideration from third-party platforms.

Accordingly, revenue is recognized

on a net basis equal to the Company’s contractual share of net monetization revenue in accordance with ASC 606, Revenue from Contracts

with Customers.

the three months ended June 30, 2026 and 2025, the Company recognized revenue of $ 152,719 and $ nil , respectively, under this agreement.

the six months ended June 30, 2026 and 2025, the Company recognized revenue of $ 310,101 and $ nil , respectively, under this agreement.

total, revenue recognized from the Company’s cloud service, AI service-sharing, and intelligent information service arrangements

with Kami was $ 774,087 and $ 501,307 for the three months ended June 30, 2026 and 2025, respectively, and $ 1,720,137 and $ 1,071,895 for

the six months ended June 30, 2026 and 2025, respectively.

receivable – related party

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

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.

the Cloud Services and AI Service Sharing Agreement and the Intelligent Information Service Agreement described above.

The balance also

includes trade receivables due from ZKCam, Xiaoyun, and Yishijue arising from product sales.

These balances represent amounts earned

but not yet collected from the related parties as of the respective reporting dates.

increase in accounts receivable – related party as of June 30, 2026, compared with December 31, 2025, was primarily attributable

to increased revenue generated under the Company’s revenue-sharing arrangements with Kami, partially offset by collections received

during the period.

In addition, outstanding trade receivables from ZKCam contributed to the increase in the related-party accounts receivable

Receivable – Related Party and Marketing Incentive Subsidy Income

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.

agreement was not renewed for 2026, and no such arrangement was in effect during the three months ended March 31, 2026.

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.”

the three months ended March 31, 2026 and 2025, the Company recognized subsidy income of $ nil and $ 683,898 , respectively, within other

of March 31, 2026 and December 31, 2025, the Company had other receivable – related party balances of $ nil and $ nil , respectively.

January 1, 2025, the Company entered into a Market Promotion Subsidy Agreement with Kami pursuant to which Kami agreed to provide an

annual subsidy of up to $ 2.0 million to support the Company’s marketing activities related to Kami’s cloud services.

agreement expired on December 31, 2025 and was not renewed.

Accordingly, no such arrangement was in effect during the three and six months

ended June 30, 2026.

the 2025 agreement, subsidy amounts were determined based on agreed-upon marketing activities performed by the Company and were invoiced

periodically to Kami.

Because the subsidy was not generated from the Company’s principal revenue-producing activities, the Company

recognized the subsidy as other income, with the corresponding receivable recorded as other receivable – related party.

the three and six months ended June 30, 2026, the Company recognized no marketing incentive subsidy income under this agreement.

the three and six months ended June 30, 2025, the Company recognized marketing incentive subsidy income of $ 533,688 and $ 1,217,586 , respectively,

which was included in other income.

of June 30, 2026 and December 31, 2025, there were no outstanding other receivable – related party balances related to the Market

Promotion Subsidy Agreement.

revenue – related party

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.

the three months ended March 31, 2026 and 2025, product revenue - related party from Kami was $ nil

respectively.

The decline in 2026 reflects reduced promotional procurement activity following the initial launch of the promotional campaign

Company engaged certain employees of Kami Vision Incorporated (“Kami”) to provide services as contractors.

the Company paid

Kami service fees of $ 33,611

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.

were no outstanding balances payable to Kami related to consulting services as of March 31, 2026 or December 31, 2025.

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.

of December 31, 2025, the balance of $ 440,596 represented a note receivable - stockholder, which was fully repaid as of March 31, 2026.

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.

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.

% of Total Asset

Historically,

to promote adoption of Kami’s cloud subscription services, Kami conducted a promotional campaign under which customers received

a complimentary security camera upon subscribing to Kami’s cloud services.

As part of this campaign, Kami purchased security cameras

from the Company.

2026, the Company also sold security camera products to certain other related parties, including ZKCam, in the ordinary course of business.

the three months ended June 30, 2026 and 2025, product revenue recognized from related parties totaled $ 5,143 and $ 146,655 , respectively.

the six months ended June 30, 2026 and 2025, product revenue recognized from related parties totaled $ 141,691 and $ 146,789 , respectively.

The decrease in related-party product revenue during 2026 was primarily attributable to sales to ZKCam, while purchases by Kami remained

insignificant following the conclusion of its promotional procurement activities.

Company has entered into consulting arrangements with Kami, pursuant to which certain Kami personnel provide consulting and technical

support services to the Company.

The related consulting fees are recognized as general and administrative expenses in the accompanying

condensed consolidated statements of operations.

the three months ended June 30, 2026 and 2025, the Company incurred consulting fees payable to Kami of $ 33,869 and $ 74,996 , respectively.

During the six months ended June 30, 2026 and 2025, the Company incurred consulting fees of $ 67,480 and $ 149,482 , respectively.

in consulting fees during the 2026 periods primarily reflects reduced utilization of Kami personnel as the Company continued to internalize

certain operational and technical functions.

were no outstanding amounts payable to Kami for consulting services as of June 30, 2026 or December 31, 2025.

Other receivable – related party

Da, the Company’s Chief Executive Officer, Chairman of the Board, and majority stockholder, periodically incurs business travel

and other operating expenditures on behalf of the Company.

The Company also advances funds to Sean Da to cover such expenditures, which

are recorded as other receivable – related party until the related expenditures are substantiated and recognized in the Company’s

condensed consolidated financial statements.

of December 31, 2025, the balance due from Sean Da consisted primarily of an other receivable of $ 440,596 .

During the six months ended

June 30, 2026, the other receivable was fully repaid.

As of June 30, 2026, the remaining balance of $ 165,862 primarily represented advances

for business travel and other operating expenditures that had not yet been substantiated or settled as of the balance sheet date.

the three months ended June 30, 2026 and 2025, the Company recognized business travel expenses of $ 16,378 and $ 25,800 , respectively,

as general and administrative expenses.

During the six months ended June 30, 2026 and 2025, the Company recognized business travel expenses

of $ 38,114 and $ 25,800 , respectively.

All business travel expenses recognized during the six months ended June 30, 2025 were incurred

during the second quarter of 2025.

Technology Limited

% of Total Asset

% of Total Assets

Accounts receivable - related party

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.

the three months ended March 31, 2026 and 2025, product revenue recognized from ZKCam totaled $ 135,364 and $ nil , respectively.

due from ZKCam primarily arose from these product sales and represent trade receivables generated in the normal course of business.

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.

is a minority stockholder of the Company and is therefore considered a related party.

The Company commenced product sales to ZKCam in

2025 following the execution of a product sales agreement.

Transactions with ZKCam are conducted in the ordinary course of business and

primarily consist of the sale of security camera products.

the three months ended June 30, 2026 and 2025, the Company recognized product revenue from ZKCam of $ 5,143 and $ 146,655 , respectively.

the six months ended June 30, 2026 and 2025, product revenue recognized from ZKCam totaled $ 140,507 and $ 146,655 , respectively.

the three months ended June 30, 2026, the Company recognized product costs of $ 7,358 associated with product sales to ZKCam.

During the corresponding period in 2025, the Company recognized product costs of approximately $ 277,386 associated

with product sales to ZKCam.

due from ZKCam primarily arise from these product sales and are included in accounts receivable – related party in the accompanying

condensed consolidated balance sheets.

As of June 30, 2026 and December 31, 2025, outstanding accounts receivable due from ZKCam were

$ 505,775 and $ 433,888 , respectively.

The receivables are unsecured, non-interest-bearing, and are expected to be collected in accordance

with the agreed payment terms.

The Company evaluates the collectability of related-party receivables on an ongoing basis and believes

the outstanding balances were fully collectible as of June 30, 2026.

Xiaoyun Technology Co., Ltd.

% of Total Assets

Other receivable - related party

Accounts Receivable - related party

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.

the deconsolidation, Xiaoyun is considered a related party of the Company.

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

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.

the three months ended March 31, 2026 and 2025, product revenue recognized from Xiaoyun totaled $ 517 and $ nil , respectively.

31, 2026 and December 31, 2025, the remaining Other receivable - related party balance was $ 4,143 and $ 4,035 , respectively.

Company evaluated and recorded the related-party receivable balance as of March 31, 2026 based on the underlying books and records.

assesses collectability on an ongoing basis and believes the amount is recoverable as of March 31, 2026.

Ant Vision Electronic Technology Co., Ltd

of Total Assets

Receivable - related party

of Total Assets

% of Total Liabilities

% of Total Libilities

was previously a VIE of the Company and was deconsolidated in December 2025 when the Company no longer met the criteria for consolidation

Following the deconsolidation, Xiaoyun has been treated as a related party.

the deconsolidation, certain product listings on Amazon UK remained active during a transition period.

As a result, the Company continued

to facilitate limited product sales associated with Xiaoyun through Amazon’s European marketplace.

Management concluded that these

transactions should be accounted for as direct transactions with Xiaoyun.

the three months ended June 30, 2026 and 2025, the Company recognized product revenue from Xiaoyun of $ nil and $ nil , respectively.

the six months ended June 30, 2026 and 2025, product revenue recognized from Xiaoyun totaled $ 517 and $ nil , respectively.

of June 30, 2026 and December 31, 2025, balances due from Xiaoyun consisted of accounts receivable of $ 517 and $ nil , respectively, and

other receivables of $ 4,143 and $ 4,035 , respectively.

These balances primarily arose from transactions conducted in the ordinary course

of business following the deconsolidation and are unsecured and non-interest-bearing.

Company evaluates the collectability of related-party receivables on an ongoing basis and believes that no allowance for expected credit

losses was required for amounts due from Xiaoyun as of June 30, 2026.

Yishijue Technology Limited

Accounts Receivable - related party

Other payable - related party

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.

the deconsolidation, Yishijue is considered a related party of the Company.

the deconsolidation, due to the transition period, some product links of certain Amazon European stores have not been removed from the

AMC still sells some products through Amazon stores in Europe.

After evaluation by the management, these sales are considered

as direct transactions with Yishijue

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.

the three months ended March 31, 2026 and 2025, product revenue recognized from Yishijue totaled $ 667 and $ nil , respectively.

31, 2026 and December 31, 2025, the remaining Other payable - related party balance was $ 1,786 and $ nil , respectively.

Company evaluated and recorded the related-party receivable balance as of March 31, 2026 based on the underlying books and records.

assesses collectability on an ongoing basis and believes the amount is recoverable as of March 31, 2026

was previously a VIE of the Company and was deconsolidated effective December 1, 2025 when the Company no longer met the criteria for

consolidation under U.S.

Following the deconsolidation, Yishijue has been treated as a related party.

the deconsolidation, certain product listings on Amazon’s European marketplaces remained active during a transition period.

a result, the Company continued to facilitate limited product sales associated with Yishijue through Amazon’s European marketplaces.

Management concluded that these transactions should be accounted for as direct transactions with Yishijue.

the three months ended June 30, 2026 and 2025, the Company recognized product revenue from Yishijue of $ nil and $ nil , respectively.

the six months ended June 30, 2026 and 2025, product revenue recognized from Yishijue totaled $ 667 and $ nil , respectively.

of June 30, 2026, balances with Yishijue consisted of accounts receivable of $ 667 and other payable of $ 1,787 .

There were no outstanding

balances as of December 31, 2025.

The receivable arose from product sales conducted in the ordinary course of business following the

deconsolidation, while the payable primarily represents operating expenditures incurred on behalf of the Company during the transition

The receivable is unsecured and non-interest-bearing.

Company evaluates the collectability of related-party receivables on an ongoing basis and believes that no allowance for expected credit

losses was required for amounts due from Yishijue as of June 30, 2026.

AND OTHER LIABILITIES

of March 31, 2026 and December 31, 2025, total accrued expenses and other liabilities were $ 672,727 and $ 701,844 , respectively.

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.

overall decrease of $ 29,117 from December 31, 2025 to March 31, 2026 was primarily driven by lower professional fee accruals.

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.

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.

expenses and other liabilities primarily consist of amounts payable for professional services, insurance premiums, payroll and employee-related

obligations, and other operating expenses incurred but not yet paid.

components of accrued expenses and other liabilities were as follows:

SCHEDULE OF ACCRUED AND OTHER LIABILITIES

1 unchanged sentence

Insurance premiums

Attorney fees payable

Audit fees payable

Payroll and employee-related liabilities

Professional fees

Other payable

Total accrued and other liabilities

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.

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.

the three months ended March 31, 2026 and 2025, the Company recognized warranty expenses of $ 1,499 and $ 9,426 , respectively.

claim costs incurred during the three months ended March 31, 2026 were no t material, compared to $ 332 for the same period in 2025.

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.

following table presents the movement of product warranty liabilities for the three months ended March 31, 2026 and 2025.

Company provides warranties on certain products sold to customers.

Warranty liabilities are estimated at the time of sale based on historical

product replacement rates, expected future warranty claims, estimated replacement costs, and shipping and handling costs associated with

warranty claims.

Management periodically evaluates the adequacy of the warranty reserve and records adjustments as necessary based on

actual claims experience, product performance, and updated assumptions.

estimating warranty liabilities, the Company considers historical claim rates, product-specific experience, and applicable warranty terms,

including extended warranty periods in certain markets.

Products sold in Europe are generally subject to a two-year warranty period,

and the Company’s estimates incorporate expected warranty claims over the applicable coverage period.

of June 30, 2026 and December 31, 2025, total warranty liabilities were $ 38,843 and $ 36,833 , respectively.

Of these amounts, $ 32,004

and $ 30,023 were classified as current liabilities, while $ 6,839 and $ 6,810 were classified as non-current liabilities, respectively.

following table summarizes the activity in the Company’s warranty liabilities for the six months ended June 30, 2026 and 2025:

SCHEDULE OF WARRANTY LIABILITY

Three months ended March 31,

Six months ended June 30,

Balance at the beginning of the period

Provision for warranties, net

Warrant costs incurred

Warranty costs incurred

Balance at the end of the period

1 unchanged sentence

Non-current portion

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.

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.

with an initial term of 12 months or less are not recorded on the Company’s consolidated balance sheets.

Instead, lease expense

Company determines whether an arrangement is or contains a lease at contract inception.

Lease agreements under which the Company is the

lessee are evaluated for classification as either finance or operating leases.

The Company’s leases are classified as operating

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 leased asset during the lease term, while 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.

with an initial term of 12 months or less are not recognized on the Company’s condensed consolidated balance sheets.

Lease expense

for these short-term leases is recognized on a straight-line basis over the lease term.

1 unchanged sentence

to account for lease and non-lease components as a single lease component.

Company leases office space in New York City under an operating lease with a term of approximately 39 months, which includes an option

The lease requires fixed monthly payments and does not include variable lease payments based on an index or rate.

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

Rent expense related to this lease was approximately $ 368 for the three months ended March 31, 2026.

the three months ended March 31, 2026, the Company recognized operating lease expense of $ 14,210 , primarily related to its New York office

No lease expense was recognized for the three months ended March 31, 2025.

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.

components of operating lease expense for the three months ended March 31, 2026 and 2025 were as follows:

SCHEDULE OF LEASE COST

Company leases office space in New York City under an operating lease agreement with a remaining lease term through November 2027.

lease requires fixed monthly rental payments and does not include material variable lease payments based on an index or rate.

addition, on January 5, 2026, the Company’s subsidiary , AMCV , entered into a lease agreement for office space in

Vietnam with an initial term of 12 months.

This lease qualifies for the short-term lease exemption under ASC 842.

Accordingly, no right-of-use

asset or lease liability has been recognized for this lease, and lease payments are recognized as short-term lease expense on a straight-line

basis over the lease term.

Short-term lease expense related to the Vietnam office lease was approximately $ 320 and $ 960 for the three

and six months ended June 30, 2026, respectively.

the three and six months ended June 30, 2026, the Company recognized operating lease expense related to its New York office lease of

approximately $ 14,210 and $ 28,419 , respectively.

For the three and six months ended June 30, 2025, the Company recognized operating lease

expense of approximately $ 49,734 .

Lease Expense

SCHEDULE OF LEASE COST

Three Months Ended

Six Months Ended

Operating lease expense

7 unchanged sentences

Lease Term and Discount Rate

Weighted average lease term

Weighted average lease term (years)

Weighted average discount rate

3 unchanged sentences

Minimum Lease Payments

following table summarizes the Company’s future lease payments under the operating lease as of March 31, 2026

following table summarizes the Company’s future lease payments under the operating lease as of June 30, 2026:

SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS

6 unchanged sentences

Obligations under operating leases, non-current

LONG-TERM INVESTMENT

April 7, 2026 and May 19, 2026, the Company invested $ 500,000 on each date, for an aggregate investment of $ 1,000,000 , in Etronium AI

Inc., a privately held artificial intelligence technology company, through the purchase of two Simple Agreements for Future Equity (“SAFE

Agreements”).

the terms of the SAFE Agreements, the Company has contractual rights to receive equity securities of Etronium AI Inc.

upon the occurrence

of specified future financing or liquidity events, subject to the terms and conditions of the agreements.

The SAFE Agreements include

a post-money valuation cap of $ 10,000,000 , do not bear interest, and do not have stated maturity dates.

The SAFE Agreements generally

do not require repayment of the invested amounts except under limited contractual circumstances.

SAFE Agreements do not currently provide the Company with voting rights, any contractual right to board representation, or rights to

participate in the management or operating decisions of Etronium AI Inc.

The Company is not deemed a holder of Etronium AI Inc.’s

capital stock and does not have current ownership of Etronium AI Inc.

capital stock or stockholder rights unless and until shares are

issued upon conversion of the SAFE Agreements.

Accordingly, the Company does not have control or significant influence over Etronium

Management evaluated the SAFE Agreements under the applicable accounting

guidance and concluded that the investment did not qualify for equity method accounting and should be accounted for under ASC 321, Investments—Equity

Accordingly, the investment is accounted for under the measurement alternative at cost, less impairment, and adjusted

for observable price changes, if any.

Etronium AI Inc.

is privately held, no active market or quoted market price exists for the SAFE Agreements, and the investment does not

have a readily determinable fair value.

Accordingly, the Company elected the measurement alternative under ASC 321.

Under the measurement

alternative, the investment is carried at cost, less impairment, and adjusted for observable price changes resulting from orderly transactions

involving an identical or similar investment of the same issuer.

Company performs a qualitative impairment assessment each reporting period and evaluates whether observable transactions have occurred

that would require an adjustment to the carrying amount.

As of June 30, 2026, management identified no observable price changes and no

qualitative indicators of impairment.

of June 30, 2026, the carrying amount of the Company’s investment in Etronium AI Inc.

was $ 1,000,000 .

The investment is classified

as a long-term investment in the condensed consolidated balance sheet because the SAFE Agreements do not contain contractual maturity

dates, realization depends primarily on future financing or liquidity events, and management does not intend to dispose of the investment

within one year after the balance sheet date.

The related cash payments of $ 1,000,000 were classified as investing activities in the

condensed consolidated statement of cash flows.

the six months ended June 30, 2026, the Company recognized no impairment losses or observable price adjustments related to the investment.

CONCENTRATION

SCHEDULE OF CONCENTRATION RISK

Concentration

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:

SCHEDULE OF CONCENTRATION RISK

Company generates a significant portion of its revenues from a limited number of customers.

Customers accounting for 10% or more of total

revenues for the three and six months ended June 30, 2026 and 2025 were as follows:

Three months ended

Six months ended

Kami Vision Incorporated

of March 31, 2026, and December 31, 2025, the following customer accounted for 10% or more of total accounts receivable – related

of June 30, 2026 and December 31, 2025, customers representing 10% or more of total accounts receivable – related party were as

Kami Vision Incorporated

ZKCam Technology Limited

loss of this customer or a significant reduction in purchases by this customer could have a material adverse effect on the Company’s

loss of, or a significant reduction in business from, any of these customers could have a material adverse effect on the Company’s

business, financial condition, and results of operations.

Concentration

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:

Company relies on a limited number of suppliers for the procurement of inventory and related products.

Suppliers accounting for 10% or

more of total inventory purchases for the three and six months ended June 30, 2026 and 2025 were as follows:

Three months ended

Six months ended

Ants Technology (HK) Limited (related party)

Senslab Technology Co., Ltd (related party)

ZKCam Technology Limited (related party)

Third-party supplier

Company periodically evaluates alternative sources of supply;

however, the loss of a significant supplier, or an interruption in the

supply of inventory from such supplier, could adversely affect the Company’s ability to fulfill customer orders until alternative

sources are obtained.

Concentration

The Company maintains cash and cash equivalents with

financial institutions in the United States.

These balances may, at times, exceed the FDIC insurance limit of $ 250,000 per depositor,

per insured financial institution .

Certain cash equivalents, including amounts held in money market funds, may not be insured by the

As of June 30, 2026 and December 31, 2025, the Company had cash and cash equivalents of $ 4,544,353 and $ 7,004,601 ,

respectively.

The Company has not experienced any losses on these balances.

STOCKHOLDERS’

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.

connection with the Business Combination, AlphaVest held approximately $ 11.5 million in its trust account prior to redemptions.

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

As of March 31, 2026, no PIPE warrant liability remained outstanding.

on December 9, 2025, which was accounted for as a reverse recapitalization in accordance with ASC 805-40, with AMC Corporation treated

as the accounting acquirer and AlphaVest treated as the accounting acquiree for financial reporting purposes .

connection with the Business Combination, AlphaVest held approximately $ 11.5 million in its trust account prior to stockholder redemptions.

Following redemptions of approximately $ 2.6 million, the Company received net trust proceeds of approximately $ 8.9 million.

with the closing of the Business Combination, the Company completed a private investment in public equity (“PIPE”) financing,

receiving gross proceeds of approximately $ 8.0 million.

PIPE financing included the issuance of warrants that were initially classified as a derivative liability under ASC 815, Derivatives

and Hedging .

Upon the occurrence of the reset event on December 30, 2025, the exercise price and number of shares issuable under

the PIPE Warrants became fixed.

As a result, the warrants met the criteria for equity classification, and their remaining fair value

was reclassified from derivative liabilities to additional paid-in capital.

Accordingly, no PIPE warrant liability remained outstanding

as of June 30, 2026 or December 31, 2025.

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.

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.

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.

Company determines its reportable operating segments using the “management approach” in accordance with ASC 280, Segment

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).

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.

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.

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.

the combined company.

Accordingly, all share and per-share amounts presented in the accompanying condensed consolidated financial statements

have been retroactively restated to reflect the exchange ratio established in the Business Combination.

the six months ended June 30, 2026, holders of the Company’s warrants exercised warrants to purchase 5,000 shares of common stock

at an exercise price of $ 4.017 per share, resulting in aggregate cash proceeds of $ 20,085 .

The proceeds were recorded as increases to

common stock and additional paid-in capital.

As a result, the number of shares of common stock outstanding increased from 22,595,363

shares as of December 31, 2025 to 22,600,363 shares as of June 30, 2026.

for the warrant exercises and the effects of the Company’s net loss and other comprehensive loss, there were no material changes

to the Company’s stockholders’ equity during the six months ended June 30, 2026.

Refer to the Company’s Annual Report

on Form 10-K for the year ended December 31, 2025 for additional information regarding the Business Combination and related equity transactions.

Company determines its reportable operating segments using the management approach in accordance with ASC 280, Segment Reporting .

Operating segments are identified based on the internal reports regularly reviewed by the Company’s Chief Executive Officer, who

serves as the CODM, for purposes of evaluating performance and allocating resources.

Company conducts its operations primarily through online e-commerce platforms serving customers in North America and Europe.

the Company has identified two reportable operating segments:

North America and Europe.

the termination of the Company’s VIE arrangements in December 2025, the Company no longer conducts operations in China .

beginning in 2026, China is no longer presented as a reportable operating segment.

is attributed to the geographic region in which the related sales are generated.

Cost of revenues and operating expenses are directly

assigned or allocated to the reportable segments based on the nature of the underlying activities.

For costs and expenses that are not directly attributable to a specific

segment, the Company generally allocates such amounts based on each segment’s proportionate share of revenue for the applicable

quarterly period.

For interim year-to-date reporting, the quarterly allocations are aggregated to derive the cumulative year-to-date segment

Interest income and interest expense

are allocated based on the use of the related assets and liabilities.

expenses, assets, liabilities and other amounts associated with AMCV are included solely to reconcile the Company’s reportable

segment information to the corresponding consolidated amounts.

These items are presented separately as Reconciliation and Other and do

not represent a separate operating or reportable segment.

following tables present selected financial information for the Company’s reportable operating segments.

SCHEDULE OF SEGMENT REPORTING

North America

Reconciliation

North America

1 unchanged sentence

Three months ended

June 30, 2026

June 30, 2025

North America

Reconciliation

North America

17 unchanged sentences

Travel and entertainment

(Reversal)/provision for credit losses - related party

Office expenses

7 unchanged sentences

Other expense

Income tax (provision) benefit

Segment Net Income (Loss)

following table presents total assets by segment as of March 31, 2026 and December 31, 2025.

$ ( 136,812 )

$ ( 175,730 )

$ ( 204,861 )

$ ( 228,913 )

North America

Reconciliation

North America

March 31, 2026

Six months ended

June 30, 2026

June 30, 2025

Reconciliation

Product revenue

Product revenue - related party

Revenue share – related party

Intelligent Information Service - related party

AI Service Sharing - related party

Total Revenues

Cost of Revenue:

E-commerce platform expenses

Delivery and freight cost

Inventory impairment losses

Total Cost of Revenue

Operating Expenses:

Marketing and advertising

Consulting fee

Warranty expense

Payroll expenses

Professional fees

Travel and entertainment

Office expenses

State B&O tax

Other segment expenses

Other Income/(Expenses):

Marketing campaign

Interest income

Loss on deconsolidation

Interest expense

Other expense

Income tax (provision) benefit

Segment Net Income (Loss)

$ ( 234,119 )

$ ( 306,090 )

following table presents total assets by segment as of June 30, 2026 and December 31, 2025.

Reconciliation

June 30, 2026

December 31, 2025

North America

Reconciliation

TOTAL SEGMENT ASSETS

Company’s provision for income taxes for the three months ended March 31, 2026 and 2025 consisted of the following:

Company’s provision for income taxes for the three and six months ended June 30, 2026 and 2025 consisted of the

SCHEDULE OF PROVISION FOR INCOME TAXES

Three months ended

Current tax provision

Six months ended

Current tax provision (benefit)

Deferred tax provision

Total provision for income taxes

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.

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.

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.

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.

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.

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

Three months ended March 31,

Tax provision

Effect of State taxes

federal effect of state tax in deferred

Foreign tax rate differential

R&D tax credits

Change in valuation allowance

Credits generated in current year

Permanent differences

Federal Tax - PY

Federal Penalties

Effective tax rate

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

Deferred tax asset attributable to:

Tax effect of net operating losses carried forward

Section 174 costs, net

Warranty liabilities

Inventory reserve

Lease Liability

Right of Use Asset

Total provision (benefit) for income taxes

Company calculates its interim income tax provision in accordance with ASC 740-270, Income Taxes—Interim Reporting , using

an estimated annual effective tax rate applied to year-to-date ordinary income or loss, with the tax effects of discrete items recognized

in the period in which they occur.

the three months ended June 30, 2026 and 2025, the Company recorded an income tax benefit of approximately $ 1,655 and

income tax expense of approximately $ 1,751 ,

respectively.

For the six months ended June 30, 2026 and 2025, the Company recorded income tax expense of approximately $ 444 and

respectively.

The Company’s current income tax provision primarily relates to state income taxes, as the Company does not

expect to incur federal current income tax for the periods presented.

No material discrete tax items were identified during the

three and six months ended June 30, 2026.

the six months ended June 30, 2026, the Company’s estimated annual effective tax rate differed from the U.S.

federal statutory

income tax rate primarily as a result of state income taxes and the effect of the valuation allowance maintained against the Company’s

deferred tax assets.

valuation allowance

Deferred tax assets, net

assessing the realizability of deferred tax assets, management evaluates whether it is more likely than not that such assets will be

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.

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.

Tax Positions

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.

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

There were no accrued interest and penalties associated with uncertain tax positions as of March 31, 2026 or December 31, 2025.

reconciliation of the amount of unrecognized tax benefits is as follows:

SCHEDULE OF UNRECOGNIZED TAX BENEFITS

Beginning balances

Increases related to current year tax positions

Ending balances

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.

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.

of June 30, 2026 and December 31, 2025, the Company maintained a full valuation allowance against its deferred tax assets.

realizability, management considered available positive and negative evidence, including historical operating results, cumulative losses,

projected future taxable income, reversal of existing temporary differences, available tax-planning strategies, and applicable carryforward

periods and expiration dates, and concluded that it was more likely than not that the deferred tax assets would not be realized.

the Company had no net deferred tax assets recognized as of June 30, 2026 or December 31, 2025.

Company has identified uncertain tax positions related to potential state income tax filing obligations in jurisdictions where it may

have nexus but has not filed income tax returns.

There were no material changes in the Company’s uncertain tax positions during

the six months ended June 30, 2026.

Company’s ability to utilize its net operating loss and tax credit carryforwards may be subject to limitations under Section 382

of the Internal Revenue Code if an ownership change has occurred.

Based on information currently available to management, including the

Company’s ownership history, management is not aware of any transaction or series of transactions that would have resulted in an

ownership change under Section 382.

However, the Company has not completed a formal Section 382 study, and therefore no assurance can

be provided that an ownership change has not occurred.

AND CONTINGENCIES

the ordinary course of business, the Company may be subject to various commitments and contingencies, including contractual obligations

and potential legal matters.

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.

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

the ordinary course of business, the Company is subject to various commitments and contingencies, including contractual obligations,

commercial commitments, and potential legal proceedings.

Company accounts for contingencies in accordance with ASC 450, Contingencies .

A liability is recognized when it is probable that

a loss has been incurred and the amount of the loss can be reasonably estimated.

If a loss is reasonably possible but not probable, or

if the amount of the loss cannot be reasonably estimated, the nature of the contingency is disclosed, if material.

time to time, the Company may become involved in legal proceedings, claims, and regulatory matters arising in the ordinary course of

Management reviews the status of such matters on an ongoing basis and establishes reserves when appropriate in accordance with

of June 30, 2026 and December 31, 2025, the Company was not a party to any material pending or threatened legal proceedings, claims,

or assessments, and management is not aware of any matters that would require recognition of a material liability or disclosure in the

accompanying condensed consolidated financial statements.

Company has also entered into agreements that contain customary representations, warranties, and indemnification provisions.

does not believe that any material liabilities have arisen under these arrangements as of June 30, 2026.

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.

that occurred after June 30, 2026 through the date the consolidated financial statements were issued.

on this evaluation, management determined that there were no subsequent events that required recognition or disclosure in the accompanying

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements