What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-14 compared with 2025-05-15 · 365 added, 397 removed, 29 unchanged (96% of the section changed)

Management’s Discussion and

Analysis of Financial Condition and Results of Operations.

References to the “Company,”

“HWH International Inc.,” “HWH,” “our,” “us” or “we” refer to HWH International

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

to the “Company,” “HWH International Inc.,” “HWH,” “our,” “us” or “we”

refer to HWH International Inc.

and its subsidiaries.

The following discussion and analysis of the Company’s financial condition and results of operations

should be read in conjunction with the unaudited interim financial statements and the notes thereto contained elsewhere in this report.

Certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and

uncertainties.

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form

10-Q includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E

of the Exchange Act.

We have based these forward-looking statements on our current expectations and projections about future events.

forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results,

levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or

achievements expressed or implied by such forward-looking statements.

In some cases, you can identify forward-looking statements by terminology

such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,”

“believe,” “estimate,” “continue,” or the negative of such terms or other similar expressions.

that might cause or contribute to such a discrepancy include, but are not limited to, those described in our other SEC filings.

The following discussion and analysis of the Company’s financial condition

and results of operations should be read in conjunction with the unaudited interim financial statements and the notes thereto contained

elsewhere in this report.

Certain information contained in the discussion and analysis set forth below includes forward-looking statements

that involve risks and uncertainties.

Note Regarding Forward-Looking Statements

Quarterly Report on Form 10-Q includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as

amended, and Section 21E of the Exchange Act.

We have based these forward-looking statements on our current expectations and projections

about future events.

These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us

that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results,

levels of activity, performance or achievements expressed or implied by such forward-looking statements.

In some cases, you can identify

forward-looking statements by terminology such as “may,” “should,” “could,” “would,”

“expect,” “plan,” “anticipate,” “believe,” “estimate,” “continue,”

or the negative of such terms or other similar expressions.

Factors that might cause or contribute to such a discrepancy include, but

are not limited to, those described in our other SEC filings.

On November 4, 2024, the Company announced the launch of its business-to-consumer marketplace, Hapi Marketplace.

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by further expansion across Asia.

aspects of the Hapi Marketplace will be launched in phases in different regions, each with their own timeline, depending on the completion

of logistical aspects for implementation (i.e., payment gateway systems, business licenses, banking set up, import licenses, managerial

resources, etc.) We are expanding the product range into robotics for consumer and commercial markets.

Cafés, which are, and will be, in-person, location-based social experiences, offer customers the opportunity to build a sense of community with like-minded

customers who share a potential interest in our products.

The cafes are designed to operate sustainably as standalone businesses.

cafes also seek to be an avenue to create awareness to and educate potential and existing customers about the products and services of

HWH, providing us with the chance to significantly increase our customers base as well as increase the amounts spent by our customers

on our affiliates’ products and services.

Each of our cafés is a “Hapi Café.” We opened proof-of-concept

Hapi Café locations in Seoul, the Republic of Korea and Singapore in May and July 2022, respectively, one more opened in Seoul,

the Republic of Korea in May 2024.

We plan to open additional Hapi Cafés as we beta test and further improve our business concept.

various aspects of the Hapi Marketplace will be launched in phases in different regions, each with their own timeline, depending on the

completion of logistical aspects for implementation (i.e., payment gateway systems, business licenses, banking set up, import licenses,

managerial resources, etc.).

We are expanding the product range into robotics for consumer and commercial markets.

Cafés, which are, and will be, in-person, location-based social experiences, offer customers the opportunity to build

a sense of community with like-minded customers who share a potential interest in our products.

The cafes are designed to operate sustainably

as standalone businesses.

The cafes also seek to be an avenue to create awareness to and educate potential and existing customers about

the products and services of HWH, providing us with the chance to significantly increase our customer base as well as increase the amounts

spent by our customers on our affiliates’ products and services.

Each of our cafés is a “Hapi Café.”

We opened proof-of-concept Hapi Café locations in Seoul, the Republic of Korea and Singapore in May and July 2022, respectively,

one more opened in Seoul, the Republic of Korea in May 2024.

We plan to open additional Hapi Cafés as we beta test and further

improve our business concept.

We intend to grow our customer base as we grow the number of Hapi Cafés around the world.

Hapi Cafes are positioned to be integral

parts of HWH’s business model.

In June 2024, the Company’s decision to close the café under Alset F&B (PLQ) Pte.

are positioned to be integral parts of HWH’s business model.

In June 2024, the Company’s decision to close the café

under Alset F&B (PLQ) Pte.

(“F&BPLQ”) was driven by the unsustainable revenue it generated.

We believe it is more strategic to refocus our efforts

and resources on other business ventures that have greater growth potential.

We believe it is

more strategic to refocus our efforts and resources on other business ventures that have greater growth potential.

Wealth Builder seeks to provide participants the opportunity to attend courses, workshops, and coaching sessions in person, fostering

a collaborative learning environment for those dedicated to learning investment in equities and wealth-building strategies.

been diligently producing digital content for Hapi Wealth Builder and working to collaborate with the right partners to launch the program

and make it available to members.

Hapi Wealth Builder will leverage the wealth of knowledge and experience of its leaders to make wealth

building accessible and effective for its members.

Our unique community-centric approach will offer members tools for making informed

financial decisions while creating pathways for sustained growth.

31, 2024, we announced that the Company scheduled the launch of Hapi Wealth, a program dedicated to providing comprehensive education

has been diligently producing digital content for Hapi Wealth Builder and working to collaborate with the right partners to launch the

program and make it available to customers.

Hapi Wealth Builder will leverage the wealth of knowledge and experience of its leaders to

make wealth building accessible and effective for its members.

Our unique community-centric approach will offer members tools for making

informed financial decisions while creating pathways for sustained growth.

October 31, 2024, we announced that the Company scheduled the launch of Hapi Wealth, a program dedicated to providing comprehensive education

in equity investment and wealth-building strategies.

We are targeting a rollout in selected regions later in 2025 as well.

support its mission, Hapi Wealth is opening its China headquarters, designed as a conducive environment for individuals to participate

We are targeting a rollout in selected regions later in 2025.

further support its mission, Hapi Wealth is opening its China headquarters, designed as a conducive environment for individuals to participate

in tutorials and workshops.

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fostering a collaborative learning environment for those dedicated to learning investment in equities and wealth-building strategies.

Our Revenue Model

Our total revenue for the three

months ended March 31, 2025 and 2024 was $295,197 and $286,110, respectively.

Our net loss for the three months ended March 31, 2025 and

Revenue Model

total revenue for the three months ended June 30, 2025 and 2024 was $310,391 and $334,882, respectively.

Our total revenue for the six

months ended June 30, 2025 and 2024 was $605,588 and $620,992, respectively.

Our net loss for the three months ended June 30, 2025 and

2024 was $675,774 and $403,641, respectively.

We currently recognize revenue

from food and beverage sales and sale of products.

Sales of food and beverage accounted for approximately 100% and 100% of revenue in

the three months ended March 31, 2025 and 2024, respectively.

From a geographical perspective,

we recognized 11% and 89% of our total revenue in the three months ended on March 31, 2025, in South Korea and Singapore, respectively,

and 4% and 96% in the three months ended March 31, 2024, in South Korea and Singapore, respectively.

Matters that May or Are Currently Affecting Our

In addition to the matters described

above, the primary challenges and trends that could affect or are affecting our financial results include:

● Our ability to improve

our revenue through cross-selling and revenue-sharing arrangements among our group of companies;

● Our ability to identify

complementary businesses for acquisition, obtain additional financing for these acquisitions, if and when needed, and profitably integrate

them into our existing operation;

● Our ability to attract

competent, skilled technical and sales personnel for each of our businesses at acceptable compensation levels to manage our overhead;

● Our ability to control

our operating expenses as we expand each of our businesses and product and service offerings.

Summary of Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

The Company’s consolidated

financial statements and related notes include all the accounts of the Company and its wholly owned subsidiaries.

They have been prepared

in accordance with the accounting principles generally accepted in the United States of America (“U.S.

All intercompany

transactions have been eliminated in consolidation.

Use of Estimates and Critical Accounting Estimates

and Assumptions

The preparation of financial statements

in conformity with U.S.

GAAP 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 dates of the financial statements and the reported amounts of revenues and

expenses during the reporting periods.

Significant estimates made by management include, but are not limited to, allowance for credit

losses, recoverability and useful lives of property, plant and equipment, the valuation allowance of deferred taxes, contingencies, and

equity compensation.

Our net loss for the six months ended June 30, 2025 and 2024 was $1,162,746 and $1,740,160,

respectively.

currently recognize revenue from food and beverage sales, which accounted for approximately 100% of revenue in the three and six months

ended June 30, 2025 and 2024.

a geographical perspective, we recognized 10% and 90% of our total revenue in the three months ended on June 30, 2025, in South Korea

and Singapore, respectively, and 6% and 94% in the three months ended June 30, 2024, in South Korea and Singapore, respectively.

a geographical perspective, we recognized 10% and 90% of our total revenue in the six months ended on June 30, 2025, in South Korea and

Singapore, respectively, and 5% and 95% in the six months ended June 30, 2024, in South Korea and Singapore, respectively.

that May or Are Currently Affecting Our Business

addition to the matters described above, the primary challenges and trends that could affect or are affecting our financial results include:

Our ability to improve our revenue through cross-selling and revenue-sharing arrangements among our group of companies;

Our ability to identify complementary businesses for acquisition, obtain additional financing for these acquisitions, if and when needed,

and profitably integrate them into our existing operation;

Our ability to attract competent, skilled technical and sales personnel for each of our businesses at acceptable compensation levels

to manage our overhead;

Our ability to control our operating expenses as we expand each of our businesses and product and service offerings.

of Significant Accounting Policies

of Presentation and Principles of Consolidation

Company’s consolidated financial statements and related notes include all the accounts of the Company and its wholly owned subsidiaries.

They have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S.

All intercompany transactions have been eliminated in consolidation.

of Estimates and Critical Accounting Estimates and Assumptions

preparation of financial statements in conformity with U.S.

GAAP 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 dates of the financial statements

and the reported amounts of revenues and expenses during the reporting periods.

Significant estimates made by management include, but

are not limited to, allowance for credit losses, recoverability and useful lives of property, plant and equipment, the valuation allowance

of deferred taxes, contingencies, and equity compensation.

Actual results could differ from those estimates.

Revenue Recognition and Cost of Sales

Product Sales:

The Company’s

performance obligation is to transfer ownership of its products to its customers.

The Company generally recognizes revenue when a product

is delivered to its member.

Recognition and Cost of Sales

The Company’s performance obligation is to transfer ownership of its products to its customers.

The Company generally

recognizes revenue when a product is delivered to its customer.

Revenue is recorded net of applicable taxes, allowances, refund or returns.

The Company receives the net sales

price in cash or through credit card payments at the point of sale.

If any member returns a product

to the Company on a timely basis, they may obtain a replacement product from the Company for such returned product.

Allowances for product

returns are provided at the time the sale is recorded.

This accrual is based upon historical return rates for each country and the relevant

return pattern, which reflects anticipated returns to be received over a period of up to 12 months following the original sale.

returns for the three months ended March 31, 2025, and 2024 were approximately $0 and $0, respectively.

Food and Beverage:

revenue received from food and beverage business in the three months ended March 31, 2025 and 2024 was $295,197 and $286,110, respectively.

Cost of Revenue:

revenue consists of cost of procuring finished goods from suppliers and related shipping and handling fees.

Results of Operations

Summary of Statements of Operations

for the Three Months Ended March 31, 2025 and 2024

Three Months Ended

The Company receives the net sales price in cash or through credit card payments at the point of sale.

any customer returns a product to the Company on a timely basis, they may obtain a replacement product from the Company for such returned

Allowances for product returns are provided at the time the sale is recorded.

This accrual is based upon historical return rates

for each country and the relevant return pattern, which reflects anticipated returns to be received over a period of up to 12 months

following the original sale.

Product returns for the three and six months ended June 30, 2025, and 2024 were approximately $0.

and Beverage:

The revenue received from food and beverage business in the three months ended June 30, 2025 and 2024 was $310,391

and $334,882, respectively.

The revenue received from food and beverage business in the six months ended June 30, 2025 and 2024 was $605,588

and $620,992, respectively.

Cost of revenue consists of cost of procuring finished goods from suppliers and related shipping and handling fees.

of Operations

of Statements of Operations for the Three and Six Months Ended June 30, 2025 and 2024

Three Months Ended June 30,

Six Months Ended June 30,

Cost of revenue

Operating expenses

Other (income) / expenses

Revenue was $295,197 and $286,110

for the three months ended March 31, 2025 and 2024, respectively.

Word of mouth, a social media presence, and the availability of meeting

spaces are significant drivers of our revenue and revenue potential.

Our revenue increased in 2025 due to the increased revenue from F&B

business in Singapore following the opening of new café in April 2024.

Cost of revenue

Cost of revenues increased from

$122,813 in the three months ended March 31, 2024 to $147,603 in the three months ended March 31, 2025.

The increase is a result of the

increase in sales in F&B business.

The gross margin decreased from

$163,297 to $147,594 in the three months ended March 31, 2024 and 2025, respectively.

The decrease in gross margin was caused by the increase

in F&B cost of revenue.

Other non-operating income

Provision for income taxes

Net income (loss)

$ (1,740,160 )

was $310,391 and $334,882 for the three months ended June 30, 2025 and 2024, respectively.

Revenue was $605,588 and $620,992 for the

six months ended June 30, 2025 and 2024, respectively.

Word of mouth, social media presence, and the availability of meeting spaces are

significant drivers of our revenue and revenue potential.

Our revenue increased in 2025 due to the increased revenue from F&B business

in Singapore following the opening of new café in April 2024.

of revenues increased from $169,969 in the three months ended June 30, 2024 to $161,501 in the three months ended June 30, 2025.

of revenues increased from $292,782 in the six months ended June 30, 2024 to $309,104 in the six months ended June 30, 2025.

is a result of the increase in sales in F&B business.

gross margin increased from $164,913 to $148,890 in the three months ended June 30, 2024 and 2025.

The gross margin increased from $328,210

to $296,484 in the six months ended June 30, 2024 and 2025.

The increase of gross margin was caused by the increase in F&B revenue.

expenses decreased from $654,740 to $488,681 in the three months ended June 30, 2024 and 2025, respectively, due to general and

administrative expenses decrease from $654,740 to $488,681 in the three months ended June 30, 2024 and 2025.

Operating expenses

Operating expenses decreased from

$1,495,383 to $741,722 in the three months ended March 31, 2024 and 2025, respectively, due to general and administrative expenses decreased

from $1,129,191 to $664,242 in the three months ended March 31, 2024 and 2025, respectively.

decreased from $2,150,123 to $1,230,403 in the six months ended June 30, 2024 and 2025, due to general and administrative expenses

decrease from $1,783,931 to $1,152,923 in the six months ended June 30, 2024 and 2025.

The decrease in general and administrative

expenses in 2025 compared with 2024 was mostly caused by the decrease in the professional fees due to the 10-Q and S-4 filings.

Other income (expense)

increased from ($4,433) to $62,973 in the three months ended March 31, 2024 and 2025, respectively.

The increase is due to foreign

exchange transaction (loss) gain change from ($49,571) to $66,070 in the three months ended March 31, 2024 and 2025,

respectively.

expenses in 2025 compared to 2024 was primarily due to lower professional fees related to the 10-Q and S-4 filings.

non-operating income (expense)

non-operating income increased from $86,186 to $415,768 in the three months ended June 30, 2024 and 2025, mainly due

to gain on disposal of subsidiaries from $0 to $383,667 in the three months ended June 30, 2024 and 2025.

Other non-operating income

increased from $81,753 to $565,872 in the six months ended June 30, 2024 and 2025, primarily due to

decline gain on disposal of subsidiaries from $0 to $383,667 in the six months ended June 30, 2024 and 2025.

income (loss )

(loss) increased from $(403,641) to net income $75,977 in the three months ended June 30, 2024 and 2025.

Net loss decreased from

to $574,103 in the three months ended March 31, 2024 and 2025, respectively.

Liquidity and Capital Resources

Our cash has decreased from $4,341,746

as of December 31, 2024 to $4,176,546 as of March 31, 2025.

Our liabilities decreased from $3,531,523 at December 31, 2024 to $2,835,738

at March 31, 2025.

Our total assets have increased from $6,408,722 as of December 31, 2024 to $6,531,330 as of March 31, 2025.

The Company believes that the

available cash in the Company’s bank accounts, anticipated cash from operations, and financing availability from related parties

are sufficient to fund our operations for at least the next 12 months.

The Company’s capital requirements for the planned expansion

are based on, among other items, geographical specific property costs, team requirements, and marketing steps needed.

Our expansion consists

of plans to take over leases of existing Hapi Cafes we currently do not own, as we look to add more Hapi Cafes over the next two (2) years.

$1,740,160 to $410,995 in the six months ended June 30, 2024 and 2025.

and Capital Resources

cash has decreased from $4,341,746 as of December 31, 2024 to $3,729,873 as of June 30, 2025.

Our liabilities decreased from $7,645,223

at December 31, 2024 to $7,282,177 at June 30, 2025.

Our total assets have increased from $10,522,422 as of December 31, 2024 to $10,602,700

as of June 30, 2025.

Company believes that the available cash in the Company’s bank accounts, anticipated cash from operations, and financing availability

from related parties are sufficient to fund our operations for at least the next 12 months.

The Company’s capital requirements

for the planned expansion are based on, among other items, geographical specific property costs, team requirements, and marketing steps

Our expansion consists of plans to take over leases of existing Hapi Cafes we currently do not own, as we look to add more Hapi

Cafes over the next two years.

There is no guarantee that we will be able to execute on our plans as laid out above.

On April 24, 2024, the

Company entered into a Credit Facility Agreement (the “Agreement”) with Alset Inc., a Texas corporation and the

Company’s indirect, majority stockholder, pursuant to which Alset Inc.

has provided the Company a line of credit facility (the

“Credit Facility”) which provides a maximum, aggregate credit line of up to $1,000,000.

As of March 31, 2024, there are

April 24, 2024, the Company entered into a Credit Facility Agreement (the “Agreement”) with Alset Inc., a Texas corporation

and the Company’s indirect, majority stockholder, pursuant to which Alset Inc.

has provided the Company a line of credit facility

(the “Credit Facility”) which provides a maximum, aggregate credit line of up to $1,000,000.

As of June 30, 2025, there are

no outstanding amounts related to the Credit Facility, as the debt with Alset Inc.

was converted to equity on September 24, 2024.

The remaining credit of $700,000 is available for draw as on March 31, 2025.

Pursuant to the Agreement, the

Company may request an advance (each, an “Advance”) on the Credit Facility.

Each advance shall bear a simple interest rate

of three percent (3%) per annum.

Each Advance and all accrued but unpaid interest shall be due and payable at the first (1st) anniversary

of the effective date of the Agreement.

HWH may at any time during the term of the Agreement prepay a portion or all amounts of its indebtedness

without penalty.

Each Advance shall not be secured by a lien or other encumbrance on any HWH assets, but shall be solely a general unsecured

debt obligation of the Company.

The accompanying financial statements

have been prepared assuming the Company will continue as a going concern and do not contain any adjustments that might be required should

the Company be unable to continue as a going concern.

The Company has obtained letters of financial support

from Alset International Limited and Alset Inc., a direct and indirect owner of the Company, respectively.

Alset International Limited

and Alset Inc.

committed to provide any additional funding required by the Company and would not demand repayment through twelve months

from the issuance of these consolidated financial statements.

As of March 31, 2025, AIL was subsequently released from this commitment.

Summary of Cash Flows for the Three Months Ended

March 31, 2025 and 2024

Three Months Ended March 31,

remaining credit of $700,000 is available for draw as on June 30, 2025.

to the Agreement, the Company may request an advance (each, an “Advance”) on the Credit Facility.

Each advance shall bear

a simple interest rate of three percent (3%) per annum.

Each Advance and all accrued but unpaid interest shall be due and payable at

the first (1st) anniversary of the effective date of the Agreement.

HWH may at any time during the term of the Agreement prepay a portion

or all amounts of its indebtedness without penalty.

Each Advance shall not be secured by a lien or other encumbrance on any HWH assets,

but shall be solely a general unsecured debt obligation of the Company.

accompanying financial statements have been prepared assuming the Company will continue as a going concern and do not contain any adjustments

that might be required should the Company be unable to continue as a going concern.

Company has obtained letters of financial support from Alset International Limited and Alset Inc., a direct and indirect owner of the

Company, respectively.

Alset International Limited and Alset Inc.

committed to provide any additional funding required by the Company

and would not demand repayment through twelve months from the issuance of these consolidated financial statements.

As of June 30, 2025,

AIL was released from this commitment.

of Cash Flows for the Six Months Ended June 30, 2025 and 2024

Six Months Ended June 30,

Net cash used in operating activities

Net cash used in investing activities

Net cash provided by financing activities

Cash Flows from Operating Activities

Net cash used in

operating activities was $555,333 in the three months ended of March 31, 2025, as compared to net cash used in operating activities

of $638,211 in the same period of 2024.

The increase of cash used in operating activities in the three months ended March 31, 2025

was due to the impairment loss on goodwill of acquisition of LEH Insurance Group LLC.

Cash Flows from Investing Activities

Net cash used in investing activities

was $300,000 in the first three months of March 31, 2025, as compared to net cash used in investing activities of $252,072 in the same

period of 2024.

In the three months ended March 31, 2025 we paid $300,000 for convertible note receivable – related party.

three months ended March 31, 2024 we paid $2,072 for purchases of property and equipment and $250,000 for convertible note receivable

– related party.

Cash Flows from Financing Activities

Net cash provided by

financing activities was $656,229 in the three months ended March 31, 2025, compared to net cash provided by financing activities of

$749,949 in the same period of 2024.

In the three months ended March 31, 2025 we received $1,409,983 from proceed of issuance of

common stock and warrants.

We repaid $236,875 of EF Hutton promissory note and $506,454 to related parties.

In the three months ended March 31, 2024 we received $1,101,256 from related parties.

Nasdaq Compliance

On March 7, 2024, we received

notice from Nasdaq Stock Market, LLC (“Nasdaq”) indicating that, because the market value of our common stock had been below

$50,000,000 for the prior 37 consecutive business days, we no longer complied with the minimum market value of listed securities (the

“MVLS”) requirement for continued listing on the Nasdaq Global Market under Rule 5450(b)(2)(A) of Nasdaq Listing Rules.

Nasdaq’s notice had no immediate

effect on the listing of our common stock on the Nasdaq Global Market.

Pursuant to Nasdaq Marketplace Rule 5810(c)(3)(C), we had been

provided an initial compliance period of 180 calendar days, or until September 3, 2024, to regain compliance with the MVLS requirement.

To regain compliance, the Company’s MVLS was required to be at least $50,000,000 or more for a minimum of ten consecutive business

days prior to September 3, 2024.

In that regard, on September 9, 2024, the Company received a notice from the Staff that the matter of

the MVLS deficiency was to be considered at the Company’s upcoming appeal with the Nasdaq Hearings Panel.

On February 22, 2024, the Nasdaq

Staff (the “Staff”) notified the Company that for the previous 30 consecutive trading days, the market value of its publicly

held shares had been below the minimum $15,000,000 required for continued listing as set forth in Listing Rule 5450(b)(2)(C) (the “Rule”).

Therefore, in accordance with Marketplace Rule 5810(c)(3)(D), the Company was provided 180 calendar days, or until August 20, 2024, to

regain compliance with the Rule.

In that regard, on August 27, 2024, the Company received a notice from the Staff that the Company will

be delisted from the Nasdaq Global Market, unless the Company requested an appeal of this determination by September 3, 2024.

The Company presented its compliance

plan to the Panel at a hearing on October 15, 2024.

On October 21, 2024, the Company received a notice from the Panel granting the Company

an extension to phase down its securities to the Nasdaq Capital Market and demonstrate compliance with the market value of its publicly

held shares and Stockholders’ Equity requirements as set forth in Nasdaq Listing Rules 5550(a)(5) and 5550(b)(1).

On September 4, 2024, the Company

received written notice (the “Notice”) from the Listing Qualifications Staff of Nasdaq notifying the Company that for the

prior 30 consecutive business days prior to the date of the Notice, the Company’s bid price was below the minimum $1 required for

continued listing on the Nasdaq Global Market pursuant to Nasdaq Listing Rule 5450(a)(1) (the “Bid Price Requirement”).

accordance with Nasdaq Listing Rule 5810(c)(3)(A), Nasdaq provided the Company with 180 calendar days, or until March 3, 2025, (the “Compliance

Date”), to regain compliance with the Bid Price Requirement.

On February 18, 2025, the Company

filed a Certificate of Amendment to the Company’s Amended and Restated Certificate of Incorporation with the Delaware Secretary

of State to effect a 1-for-5 reverse stock split (the “Reverse Stock Split”).

The Reverse Stock Split became effective as

of market open on February 24, 2025.

On March 10, 2025, the Company

received written notice (the “Compliance Notice”) from Nasdaq informing the Company that it has regained compliance with Nasdaq

Listing Rule 5550(a)(2), which requires that companies listed on the Nasdaq Capital Market maintain a minimum bid price of $1.00 per share.

Nasdaq notified the Company in the Compliance Notice that, from February 24, 2025 to March 7, 2025, the closing bid price of the Company’s

common stock had been $1.00 per share or greater and, accordingly, the Company had regained compliance with Nasdaq Listing Rule 5550(a)(2)

and that the matter was now closed.

The Company is currently listed on the Nasdaq Capital Market.

Contractual Obligations

As of March 31, 2025, we did not

have any long-term debt obligations, capital lease obligations, operating lease obligations, purchase obligations or long-term liabilities.

Administrative Services Agreement

We agreed to pay Alset Management

$10,000 per month for office space, utilities and secretarial and administrative support services commencing on the date that

our securities were first listed on the Nasdaq.

Upon completion of the initial Business Combination, we ceased paying these monthly fees.

Underwriting Agreement

On February 3, 2022, the Company

paid a cash underwriting discount of $0.20 per Unit, or $1,725,000.

In addition, the underwriters,

EF Hutton, LLC (“EF Hutton”) (now known as D.

Boral Capital LLC), were entitled to a deferred fee of $0.35 per Unit, or $3,018,750

in the aggregate, however, on December 18, 2023, the Company entered into a Satisfaction and Discharge of Indebtedness Agreement

in connection with the Underwriting Agreement, under which in lieu of the Company tendering the full amount, the underwriters accepted

a combination of $325,000 in cash paid upon the closing of the Business Combination, 149,443 shares of the Company’s common stock

and a $1,184,375 promissory note as full satisfaction.

This agreement was effective at the closing of Business Combination on January

Additionally, the Company has granted EF Hutton an irrevocable right of first refusal (the “ROFR”) to act as the

sole investment banker, sole book-runner, and/or sole placement agent, at EF Hutton’s sole discretion, for each and every future

public and private equity and debt offering, including all equity linked financing for a period commencing on the date of the satisfaction

and ending twenty-four (24) months after the closing of the Business Combination.

Merger Agreement

As previously disclosed, on August

1, 2023, the Company held the Special Meeting, at which the Company’s stockholders considered and adopted, among other matters,

a proposal to approve the Business Combination.

On the Closing Date, the parties consummated the Business Combination pursuant to the

terms of that certain Agreement and Plan of Merger, dated September 9, 2022 (the “Merger Agreement”), by and among the Company,

Merger Sub, and HWH Nevada.

Pursuant to the terms of the Merger

Agreement, (and upon all other conditions pursuant to the Merger Agreement being satisfied or waived), on the Closing Date, (i) the Merger

Agreement provided for the combination of HWH Nevada and Merger Sub under the Company, with HWH Nevada surviving as the Surviving Corporation

(collectively, the “Merger”).

At the consummation of the Merger, HWH Nevada survived as a direct, wholly-owned subsidiary

of the Company;

and (ii) the Company changed its name to “HWH International Inc.”

The transaction has closed, as

all closing conditions referenced in the Merger Agreement have either been met or waived by the parties.

Certain closing conditions that

have been waived by the parties, pursuant to the Merger Agreement include Section 8.1(i), which states “the aggregate cash available

to the Company at the Closing from the Trust Account (after giving effect to the redemption of any shares of the Company’s Class

A Common Stock in connection with the Company’s Proposals, but before giving effect to (i) the payment of the Outstanding Alset

Transaction Expenses, and (ii) the payment of the Outstanding Company Transaction Expenses), shall equal or exceed Thirty Million dollars

$ (1,129,040 )

and 8.1(j), which states “upon the closing, the Company shall not have redeemed shares of the Company’s Class

A Common Stock in the Offer in an amount that would cause the Company to have less than $5,000,001 of net tangible assets (as determined

in accordance with Rule 3a51-1(g)(1) under the Exchange Act).”

Registration Rights Agreement

On January 31, 2022 the Company,

the Sponsor, and certain persons and entities holding securities of the Company entered into a Registration Rights Agreement (the “Registration

Net cash (used in) / provided by investing activities

Net cash provided by / (used in) financing activities

$ (19,741,963 )

Flows from Operating Activities

cash used in operating activities was $528,424 in the six months ended of June 30, 2025, as compared to net cash used in operating activities

of $1,129,040 in the same period of 2024.

The decrease of cash used in operating activities in the six months ended June 30, 2025 was

due to gain on disposal of subsidiaries $383,667 generated during disposal of HWH World Inc.

Flows from Investing Activities

cash used in investing activities was $741,523 in the six months of June 30, 2025, as compared to net cash provided by investing activities

of $20,554,735 in the same period of 2024.

In the six months ended June 30, 2025 we paid $360,000 for convertible note receivable –

related party, $280,000 paid for the loans receivable – related party and $100,152 for purchase of financial assets.

months ended June 30, 2024 we paid $28,023 for purchases of property and equipment, $750,000 for convertible note receivable –

related party, $14,010 for investment in joint venture, received $21,102,871 from cash withdrawn from trust account for redemptions and

$243,897 from cash withdrawn from trust account available to the Company.

Flows from Financing Activities

cash provided by financing activities was $578,857 in the six months ended June 30, 2025, compared to net cash used in financing

activities of $19,741,963 in the same period of 2024.

In the six months ended June 30, 2025 we received $1,409,983 from issuance of

common stock and warrants, repaid $240,792 of note payable, repaid $1,631,936 to related parties and received $1,055,702 from

related parties.

In the six months ended June 30, 2024 we used in $21,102,871 in proceed of issuance of common stock, $2,375,897

repaid to related parties, $325,000 for deferred underwriting compensation, and $71,194 repaid to loans and borrowing, we received

$4,132,999 from related parties.

March 7, 2024, we received notice from Nasdaq Stock Market, LLC (“Nasdaq”) indicating that, because the market value of our

common stock had been below $50,000,000 for the prior 37 consecutive business days, we no longer complied with the minimum market value

of listed securities (the “MVLS”) requirement for continued listing on the Nasdaq Global Market under Rule 5450(b)(2)(A)

of Nasdaq Listing Rules.

notice had no immediate effect on the listing of our common stock on the Nasdaq Global Market.

Pursuant to Nasdaq Marketplace Rule 5810(c)(3)(C),

we had been provided an initial compliance period of 180 calendar days, or until September 3, 2024, to regain compliance with the MVLS

To regain compliance, the Company’s MVLS was required to be at least $50,000,000 or more for a minimum of ten consecutive

business days prior to September 3, 2024.

In that regard, on September 9, 2024, the Company received a notice from the Staff that the

matter of the MVLS deficiency was to be considered at the Company’s upcoming appeal with the Nasdaq Hearings Panel.

February 22, 2024, the Nasdaq Staff (the “Staff”) notified the Company that for the previous 30 consecutive trading days,

the market value of its publicly held shares had been below the minimum $15,000,000 required for continued listing as set forth in Listing

Rule 5450(b)(2)(C) (the “Rule”).

Therefore, in accordance with Marketplace Rule 5810(c)(3)(D), the Company was provided 180

calendar days, or until August 20, 2024, to regain compliance with the Rule.

In that regard, on August 27, 2024, the Company received

a notice from the Staff that the Company will be delisted from the Nasdaq Global Market, unless the Company requested an appeal of this

determination by September 3, 2024.

Company presented its compliance plan to the Panel at a hearing on October 15, 2024.

On October 21, 2024, the Company received a notice

from the Panel granting the Company an extension to phase down its securities to the Nasdaq Capital Market and demonstrate compliance

with the market value of its publicly held shares and Stockholders’ Equity requirements as set forth in Nasdaq Listing Rules 5550(a)(5)

and 5550(b)(1).

September 4, 2024, the Company received written notice (the “Notice”) from the Listing Qualifications Staff of Nasdaq notifying

the Company that for the prior 30 consecutive business days prior to the date of the Notice, the Company’s bid price was below

the minimum $1 required for continued listing on the Nasdaq Global Market pursuant to Nasdaq Listing Rule 5450(a)(1) (the “Bid

Price Requirement”).

In accordance with Nasdaq Listing Rule 5810(c)(3)(A), Nasdaq provided the Company with 180 calendar days,

or until March 3, 2025, (the “Compliance Date”), to regain compliance with the Bid Price Requirement.

February 18, 2025, the Company filed a Certificate of Amendment to the Company’s Amended and Restated Certificate of Incorporation

with the Delaware Secretary of State to effect a 1-for-5 reverse stock split (the “Reverse Stock Split”).

The Reverse Stock

Split became effective as of market open on February 24, 2025.

March 10, 2025, the Company received written notice (the “Compliance Notice”) from Nasdaq informing the Company that it has

regained compliance with Nasdaq Listing Rule 5550(a)(2), which requires that companies listed on the Nasdaq Capital Market maintain a

minimum bid price of $1.00 per share.

Nasdaq notified the Company in the Compliance Notice that, from February 24, 2025 to March 7, 2025,

the closing bid price of the Company’s common stock had been $1.00 per share or greater and, accordingly, the Company had regained

compliance with Nasdaq Listing Rule 5550(a)(2) and that the matter was now closed.

The Company is currently listed on the Nasdaq Capital

of June 30, 2025, we did not have any long-term debt obligations, capital lease obligations, operating lease obligations, purchase obligations

or long-term liabilities.

Administrative

Services Agreement

agreed to pay Alset Management Group Inc.

$10,000 per month for office space, utilities and secretarial and administrative support services

commencing on the date that our securities were first listed on the Nasdaq.

Upon completion of the initial Business Combination, we ceased

paying these monthly fees.

February 3, 2022, the Company paid a cash underwriting discount of $0.20 per Unit, or $1,725,000.

addition, the underwriters, EF Hutton, LLC (“EF Hutton”) (now known as D.

Boral Capital LLC), were entitled to a deferred

fee of $0.35 per Unit, or $3,018,750 in the aggregate.

On December 18, 2023, the Company entered into a Satisfaction and Discharge of

Indebtedness Agreement in connection with the Underwriting Agreement, under which in lieu of the Company tendering the full amount, the

underwriters accepted a combination of $325,000 in cash paid upon the closing of the Business Combination, 149,443 shares of the Company’s

common stock and a $1,184,375 promissory note as full satisfaction.

This agreement was effective at the closing of Business Combination

on January 9, 2024.

Additionally, the Company has granted EF Hutton an irrevocable right of first refusal (the “ROFR”) to

act as the sole investment banker, sole book-runner, and/or sole placement agent, at EF Hutton’s sole discretion, for each and

every future public and private equity and debt offering, including all equity linked financing for a period commencing on the date of

the satisfaction and ending twenty-four (24) months after the closing of the Business Combination.

previously disclosed, on August 1, 2023, the Company held the Special Meeting, at which the Company’s stockholders considered and

adopted, among other matters, a proposal to approve the Business Combination.

September 9, 2022, the Company entered into an agreement and plan of merger (the “Merger Agreement”) by and among the Company,

HWH International Inc., a Nevada corporation (the “HWH Nevada” or “Target”) and HWH Merger Sub Inc., a Nevada

corporation and a wholly owned subsidiary of the Company (“Merger Sub”).

Pursuant to the Merger Agreement, the Business Combination

between the Company and the Target was effected through the merger of Merger Sub with and into HWH Nevada, with the Target surviving

the merger as a wholly owned subsidiary of the Company (the “Merger”).

Upon the closing of the Merger (the “Closing”)

on January 9, 2024, the Company changed its name to “HWH International Inc.”

transaction has closed, as all closing conditions referenced in the Merger Agreement have either been met or waived by the parties.

closing conditions that have been waived by the parties, pursuant to the Merger Agreement include Section 8.1(i), which states “the

aggregate cash available to the Company at the Closing from the Trust Account (after giving effect to the redemption of any shares of

the Company’s Class A Common Stock in connection with the Company’s Proposals, but before giving effect to (i) the payment

of the Outstanding Alset Transaction Expenses, and (ii) the payment of the Outstanding Company Transaction Expenses), shall equal or

exceed Thirty Million dollars ($30,000,000);

and 8.1(j), which states “upon the closing, the Company shall not have redeemed shares

of the Company’s Class A Common Stock in the Offer in an amount that would cause the Company to have less than $5,000,001 of net

tangible assets (as determined in accordance with Rule 3a51-1(g)(1) under the Exchange Act).”

Rights Agreement

Pursuant to the Registration Rights Agreement, the Company is obligated to register certain securities, including

(i) all of the shares of the Company’s common stock and warrants held by the Sponsor, and the Company’s common stock issuable

upon exercise of such warrants, and (ii) the shares of the Company’s common stock and the Company’s common stock underlying

warrants that were issued in the Private Placement on January 31, 2022.

The Company was obligated to (a) file a resale registration statement

to register such securities within 15 business days after the closing of the Business Combination, and (b) use reasonable best efforts

to cause such registration statement to be declared effective by the SEC within 60 business days after the closing of the Business Combination.

Lock-Up Agreements

In connection with the execution

of the Merger Agreement, at the closing, each of the HWH Holders holding more than 5% of the HWH Common Stock and certain members of HWH’s

management team entered into a Lock-Up Agreement with the Company in substantially the form attached to the letter Agreement dated January

31, 2022 (the “Letter Agreement”) (each, a “Lock-Up Agreement”).

Under the Lock-Up Agreement, each such holder

agreed not to, during the period commencing from the Closing and with respect to the shares of the Company’s Common Stock to be

received as part of the Merger Consideration by the HWH Holder (together with any securities paid as dividends or distributions with respect

to such securities or into which such securities are exchanged or converted, the “Restricted Securities”), (A) ending on the

earlier of nine months after the date of the Closing, the date on which the closing sale price of shares of the Company’s Common

Stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like)

for any 20 trading days within any 30 trading day period commencing at least 150 days after the Closing or (y) the date after the Closing

on which the Company consummates a liquidation, merger, share exchange or other similar transaction with an unaffiliated third party that

results in all of the Company’s stockholders having the right to exchange their equity holdings in the Company for cash, securities

or other property.

Termination of Subscription Agreement

On July 30, 2023, the Company

entered into a Subscription Agreement (the “Subscription Agreement”) with Meteora Special Opportunity Fund I, LP (“MSOF”),

Meteora Capital Partners, LP (“MCP”), Meteora Select Trading Opportunities Master, LP (“MSTO”) and Meteora Strategic

Capital, LLC, (“MSC”, and together with MSOF, MCP and MSTO, are referred to herein collectively as “Meteora”).

The Subscription Agreement was subsequently terminated.

The Company and Meteora entered into a Settlement Agreement as of April 11, 2024

(the “Settlement Agreement”).

Pursuant to the Settlement Agreement, the Company paid Meteora $200,000, and agreed that Meteora

could retain $100,000 already paid to Meteora.

Impact of Inflation

We believe that inflation has

not had a material impact on our results of operations for the three months ended March 31, 2025 or the year ended December 31, 2024.

We cannot assure you that future inflation will not have an adverse impact on our operating results and financial condition.

Impact of Foreign Exchange Rates

The effects of foreign exchange

rate changes on the intercompany loans (under ASC 830), which mostly consist of loans from Singapore to South Korea and which were approximately

$0.8 million and $0.9 million on March 31, 2025 and December 31, 2024, respectively, are the reason for the fluctuation in foreign currency

transaction gains or losses which are included in the Consolidated Statements of Operations and Other Comprehensive Income.

intercompany loan balances between Singapore and South Korea will remain at approximately $1 million over the next year, we expect this

fluctuation of foreign exchange rates to still impact the results of operations in 2025, especially given that the foreign exchange rate

may and is expected to be volatile.

If the amount of intercompany loan is lowered in the future, the effect will also be reduced.

at this moment, we do not expect to repay the intercompany loans in the short term.

Emerging Growth Company Status

We are an “emerging growth

company,” as defined in the JOBS Act, and we may take advantage of certain exemptions from various reporting requirements that are

applicable to other public companies that are not “emerging growth companies.” Section 107 of the JOBS Act provides that an

“emerging growth company” can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities

Act for complying with new or revised accounting standards.

In other words, an “emerging growth company” can delay the adoption

of certain accounting standards until those standards would otherwise apply to private companies.

We have elected to take advantage of

these exemptions until we are no longer an emerging growth company or until we affirmatively and irrevocably opt out of this exemption.

Controls and Procedures

We are not currently required

to maintain an effective system of internal controls as defined by Section 404 of the Sarbanes-Oxley Act.

Only in the event that we are

deemed to be a large accelerated filer or an accelerated filer would we be required to comply with the independent registered public accounting

firm attestation requirement.

Further, for as long as we remain an emerging growth company as defined in the JOBS Act, we intend to take

advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging

growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation

Management is responsible for

the preparation and fair presentation of the financial statements included in this prospectus.

The financial statements have been prepared

in conformity with accounting principles generally accepted in the United States of America and reflect management’s judgment and

estimates concerning effects of events and transactions that are accounted for or disclosed.

Management is also responsible

for establishing and maintaining adequate internal control over financial reporting.

Our internal control over financial reporting includes

those policies and procedures that pertain to our ability to record, process, summarize and report reliable data.

Management recognizes

that there are inherent limitations in the effectiveness of any internal control over financial reporting, including the possibility of

human error and the circumvention or overriding of internal control.

Accordingly, even effective internal control over financial reporting

can provide only reasonable assurance with respect to financial statement presentation.

Further, because of changes in conditions, the

effectiveness of internal control over financial reporting may vary over time.

In order to ensure that our internal

control over financial reporting is effective, management regularly assesses controls and did so most recently for its financial reporting

as of December 31, 2024.

This assessment was based on criteria for effective internal control over financial reporting described in the

Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission.

In connection

with management’s evaluation of the effectiveness of our Company’s internal control over financial reporting as of March 31,

2025, management determined that the following issues constitute as material

January 31, 2022 the Company, the Sponsor, and certain persons and entities holding securities of the Company entered into a Registration

Rights Agreement (the “Registration Rights Agreement”).

Pursuant to the Registration Rights Agreement, the Company is obligated

to register certain securities, including (i) all of the shares of the Company’s common stock and warrants held by the Sponsor,

and the Company’s common stock issuable upon exercise of such warrants, and (ii) the shares of the Company’s common stock

and the Company’s common stock underlying warrants that were issued in the Private Placement on January 31, 2022.

The Company was

obligated to (a) file a resale registration statement to register such securities within 15 business days after the closing of the Business

Combination, and (b) use reasonable best efforts to cause such registration statement to be declared effective by the SEC within 60 business

days after the closing of the Business Combination.

connection with the execution of the Merger Agreement, at the closing, each of the HWH Holders holding more than 5% of the HWH Common

Stock and certain members of HWH’s management team entered into a Lock-Up Agreement with the Company in substantially the form

attached to the letter Agreement dated January 31, 2022 (the “Letter Agreement”) (each, a “Lock-Up Agreement”).

Under the Lock-Up Agreement, each such holder agreed not to, during the period commencing from the Closing and with respect to the shares

of the Company’s Common Stock to be received as part of the Merger Consideration by the HWH Holder (together with any securities

paid as dividends or distributions with respect to such securities or into which such securities are exchanged or converted, the “Restricted

Securities”), (A) ending on the earlier of nine months after the date of the Closing, the date on which the closing sale price

of shares of the Company’s Common Stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations,

recapitalizations and the like) for any 20 trading days within any 30 trading day period commencing at least 150 days after the Closing

or (y) the date after the Closing on which the Company consummates a liquidation, merger, share exchange or other similar transaction

with an unaffiliated third party that results in all of the Company’s stockholders having the right to exchange their equity holdings

in the Company for cash, securities or other property.

believe that inflation has not had a material impact on our results of operations for the six months ended June 30, 2025 or the year

ended December 31, 2024.

We cannot assure you that future inflation will not have an adverse impact on our operating results and financial

of Foreign Exchange Rates

effects of foreign exchange rate changes on the intercompany loans (under ASC 830), which mostly consist of loans from Singapore to South

Korea and which were approximately $0.8 million and $0.9 million on June 30, 2025 and December 31, 2024, respectively, are the reason

for the fluctuation in foreign currency transaction gains or losses which are included in the Consolidated Statements of Operations and

Other Comprehensive Income.

Because the intercompany loan balances between Singapore and South Korea will remain at approximately $1

million over the next year, we expect this fluctuation of foreign exchange rates to still impact the results of operations in 2025, especially

given that the foreign exchange rate may and is expected to be volatile.

If the amount of intercompany loan is lowered in the future,

the effect will also be reduced.

However, at this moment, we do not expect to repay the intercompany loans in the short term.

Growth Company Status

are an “emerging growth company,” as defined in the JOBS Act, and we may take advantage of certain exemptions from various

reporting requirements that are applicable to other public companies that are not “emerging growth companies.” Section 107

of the JOBS Act provides that an “emerging growth company” can take advantage of the extended transition period provided

in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards.

In other words, an “emerging

growth company” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies.

We have elected to take advantage of these exemptions until we are no longer an emerging growth company or until we affirmatively and

irrevocably opt out of this exemption.

and Procedures

are not currently required to maintain an effective system of internal controls as defined by Section 404 of the Sarbanes-Oxley Act.

Only in the event that we are deemed to be a large accelerated filer or an accelerated filer would we be required to comply with the

independent registered public accounting firm attestation requirement.

Further, for as long as we remain an emerging growth company as

defined in the JOBS Act, we intend to take advantage of certain exemptions from various reporting requirements that are applicable to

other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent

registered public accounting firm attestation requirement.

is responsible for the preparation and fair presentation of the financial statements included in this prospectus.

The financial statements

have been prepared in conformity with accounting principles generally accepted in the United States of America and reflect management’s

judgment and estimates concerning effects of events and transactions that are accounted for or disclosed.

is also responsible for establishing and maintaining adequate internal control over financial reporting.

Our internal control over financial

reporting includes those policies and procedures that pertain to our ability to record, process, summarize and report reliable data.

Management recognizes that there are inherent limitations in the effectiveness of any internal control over financial reporting, including

the possibility of human error and the circumvention or overriding of internal control.

Accordingly, even effective internal control

over financial reporting can provide only reasonable assurance with respect to financial statement presentation.

Further, because of

changes in conditions, the effectiveness of internal control over financial reporting may vary over time.

order to ensure that our internal control over financial reporting is effective, management regularly assesses controls and did so most

recently for its financial reporting as of June 30, 2025.

This assessment was based on criteria for effective internal control over financial

reporting described in the Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations (COSO) of the Treadway

In connection with management’s evaluation of the effectiveness of our Company’s internal control over financial

reporting as of June 30, 2025, management determined that the following issues constitute as material weakness:

Company has limited accounting personnel, and as such, is unable to properly segregate duties relating to the Company’s internal

controls over financial reporting.

Additionally,

well-defined accounting policies and procedures have not been established and many financial close procedures, including period-end

review and reconciliations, did not occur on a timely basis or failed to identify material adjustments.

This prospectus does not include

an attestation report of our registered public accounting firm regarding internal control over financial reporting.

report was not subject to attestation by our registered public accounting firm pursuant to temporary rules of the SEC that permit us to

provide only management’s report in this prospectus.

Quantitative and Qualitative Disclosures

About Market Risk.

We are a smaller reporting company

as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise required under this item.

accounting policies and procedures have not been established and many financial close procedures, including period-end review and

reconciliations, did not occur on a timely basis or failed to identify material adjustments.

prospectus does not include an attestation report of our registered public accounting firm regarding internal control over financial

Management’s report was not subject to attestation by our registered public accounting firm pursuant to temporary rules

of the SEC that permit us to provide only management’s report in this prospectus.

Quantitative and Qualitative Disclosures About Market Risk.

are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise

required under this item.

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 2. Management’s Discussion and Analysis