What changed in this filing

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Item 1. Financial Statements

2025-11-13 compared with 2025-08-14 · 371 added, 248 removed, 962 unchanged (39% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF JUNE 30, 2025 AND DECEMBER 31, 2024

AS OF SEPTEMBER 30, 2025 AND DECEMBER 31, 2024

September 30,

Current Assets

1 unchanged sentence

Restricted cash

Accounts receivable (net of allowance for doubtful accounts of $ 85,010 and $ 53,111 as of June 30, 2025 and December 31, 2024, respectively)

Accounts receivable (net of allowance for doubtful accounts of $ 90,225 and $ 53,111 as of September 30, 2025 and December 31, 2024, respectively)

Prepayments and other current assets

5 unchanged sentences

Value-added tax recoverable

Deferred tax asset non-current

$ 175,698,192

15 unchanged sentences

Derivative liability

Total liabilities (including amounts of the consolidated VIE without recourse to the Company of $ 18,094,307 and $ 16,976,765 as of June 30, 2025 and December 31, 2024, respectively)

Total liabilities (including amounts of the consolidated VIE without recourse to the Company of $ 18,629,300 and $ 16,976,765 as of September 30, 2025 and December 31, 2024, respectively)

Commitments and Contingencies

3 unchanged sentences

Issued and outstanding:

16,965,420 shares as of June 30, 2025 and 10,065,920 shares as of December, 31, 2024, respectively.

16,965,420 shares as of September 30, 2025 and 10,065,920 shares as of December 31, 2024, respectively.

Additional paid-in capital

13 unchanged sentences

AND COMPREHENSIVE INCOME

FOR THE THREE AND SIX MONTHS ENDED JUNE 30,

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER

30, 2025 AND 2024

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

Cost of sales

8 unchanged sentences

( 9,999,833 )

(Loss) Income from Operations

Gain on impairment of assets

Loss from Operations

( 1,464,121 )

5 unchanged sentences

Gain on derivative liability

(Loss) Income before Income Taxes

Loss before Income Taxes

( 1,141,885 )

1 unchanged sentence

( 6,550,668 )

Income Tax Expenses

( 4,998,956 )

Income Tax Expenses

( 1,448,247 )

( 1,973,946 )

Other Comprehensive Income (Loss)

Foreign currency translation adjustment

( 6,903,858 )

Total Comprehensive Loss

( 5,798,229 )

Other Comprehensive Income

Foreign currency translation adjustment

Total Comprehensive (Loss) Income

$ ( 268,035 )

8 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024

Six Months Ended

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

Nine Months Ended

September 30,

Cash Flows from Operating Activities:

4 unchanged sentences

Gain on derivative liability

Allowance for bad debts

Gain from disposal and impairment of property, plant and equipment

(Recovery from) Allowance for bad debts

Allowances for inventories, net

6 unchanged sentences

( 1,477,521 )

( 2,108,280 )

Accounts payable

Advance from customers

Notes payable

Related parties

2 unchanged sentences

Income taxes payable

Net Cash (Used in) Provided by Operating Activities

( 1,111,313 )

Net Cash Provided by Operating Activities

Cash Flows from Investing Activities:

Purchases of property, plant and equipment

Proceeds from sale of property, plant and equipment

Net Cash Used in Investing Activities

Cash Flows from Financing Activities:

Proceeds from issuance of shares

Proceeds from issuance of shares and warrants, net

Proceeds from short term bank loans

Proceeds from long term loans

Repayment of bank loans

Net Cash Provided by Financing Activities

( 9,162,791 )

( 2,957,788 )

Net Cash Provided by (Used in) Financing Activities

( 2,112,706 )

Effect of Exchange Rate Changes on Cash and Cash Equivalents

13 unchanged sentences

IN STOCKHOLDERS’ EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

Comprehensive

Income (loss)

Balance at December 31, 2023

4 unchanged sentences

( 5,798,229 )

( 3,824,283 )

Balance at June 30, 2024

Balance at September 30, 2024

$ ( 8,770,123 )

7 unchanged sentences

( 6,903,858 )

Balance at June 30, 2025

Balance at September 30, 2025

$ ( 11,159,033 )

124 unchanged sentences

of the Company in accordance with Topic 810 - Consolidation of the Accounting Standards Codification (the “ASC”) issued by

the FinancialAccounting Standard Board (the “FASB”).

the Financial Accounting Standard Board (the “FASB”).

The revenue generated from Dongfang Paper and Tengsheng Paper for the

three and six months ended June 30, 2025 and 2024 was accounted for 100 % of the Company’s total revenue.

Dongfang Paper and Tengsheng

Paper also accounted for 95.93 % and 96.07 % of the total assets of the Company as of June 30, 2025 and December 31, 2024, respectively.

As of June 30, 2025 and December 31, 2024, details of the Company’s

three and nine months ended September 30, 2025 and 2024 was accounted for 100 % of the Company’s total revenue.

Dongfang Paper and

Tengsheng Paper also accounted for 96.09 % and 96.07 % of the total assets of the Company as of September 30, 2025 and December 31, 2024,

respectively.

As of September 30, 2025 and December 31, 2024, details of the Company’s

subsidiaries and variable interest entities are as follows:

1 unchanged sentence

Establishment Place of

Incorporation or Establishment Percentage of

Ownership Principal

Dongfang Holding November 13, 2006 BVI 100 % Inactive investment holding

Incorporation or

Establishment Percentage of

Ownership Principal Activity

Dongfang Holding November 13, 2006 BVI 100 %

Inactive investment holding

Shengde Holdings February 25, 2009 State of Nevada 100 % Investment holding

24 unchanged sentences

The aggregate carrying value of Dongfang Paper’s assets and liabilities (after elimination

of intercompany transactions and balances) in the Company’s condensed consolidated balance sheets as of June 30, 2025 and December

of intercompany transactions and balances) in the Company’s condensed consolidated balance sheets as of September 30, 2025 and December

31, 2024 are as follows:

7 unchanged sentences

financial support to the VIE.

September 30,

Current Assets

15 unchanged sentences

Lease liability

Accounts payable

Advance from customers

24 unchanged sentences

Such adjustments are of a normal recurring nature, unless otherwise noted.

The balance sheet as of June 30,

2025 and the results of operations for the six months ended June 30, 2025 are not necessarily indicative of the results to be expected

for any future period.

The balance sheet as of September

30, 2025 and the results of operations for the nine months ended September 30, 2025 are not necessarily indicative of the results to be

expected for any future period.

Our unaudited condensed consolidated financial

7 unchanged sentences

Liquidity and Going Concern

As of June 30, 2025, the Company had current assets

of $ 32,644,518 (including a VAT （“Value Added Tax”）recoverable of Tengsheng Paper in amount of $ 13,209,135 ),

As of September 30, 2025, the Company had current

assets of $ 35,764,365 (including a VAT （“Value Added Tax”）recoverable of Tengsheng Paper in amount of $ 13,307,848 ),

and current liabilities of $ 18,667,302 , resulting in a working capital of $ 17,097,063 .

However, production of Baoding Shende has been

suspended in 2024 and the six months ended June 30, 2025, rendering related VAT unrecoverable in the short term.

Net working capital excluding

VAT recoverable as of June 30, 2025 was a working capital deficit of $ 1,906,169 .

Baoding Shengde and Tengsheng Paper have incurred loss

that there is doubt about these subsidiaries ability to continue as going concerns.

However, production of Tengsheng Paper has been

suspended in 2024 and the nine months ended September 30, 2025, rendering related VAT unrecoverable in the short term.

Net working capital

excluding VAT recoverable as of September 30, 2025 was a working capital of $ 3,789,215 .

Baoding Shengde and Tengsheng Paper have incurred

loss that there is doubt about these subsidiaries ability to continue as going concerns.

The main reason of losses was due to high depreciation

2 unchanged sentences

to continue as a going concern that it may be unable to realize its assets and discharge its liabilities in the normal course of business

as of June 30, 2025.

as of September 30, 2025.

IT TECH PACKAGING, INC.

40 unchanged sentences

IT TECH PACKAGING, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Classification within the hierarchy is determined based on the lowest

4 unchanged sentences

Accordingly, the estimates of fair value may not be indicative of the amounts that the Company could realize in a current market exchange.

As of June 30, 2025 and December 31, 2024, the carrying value of the Company’s short term financial instruments, such as cash and

cash equivalents, accounts receivable, accounts and short-term bank loans and balance due to a related party, approximate at their fair

values because of the short maturity of these instruments;

while loans from credit union and loans from a related party approximate at

their fair value as the interest rates thereon are close to the market rates of interest published by the People’s Bank of China.

As of September 30, 2025 and December 31, 2024, the carrying value of the Company’s short term financial instruments, such as cash

and cash equivalents, accounts receivable, accounts and short-term bank loans and balance due to a related party, approximate at their

fair values because of the short maturity of these instruments;

while loans from credit union and loans from a related party approximate

at their fair value as the interest rates thereon are close to the market rates of interest published by the People’s Bank of China.

Management determined that liabilities created

27 unchanged sentences

Restricted cash of $ 1,046,771 and $ 1,034,203 as

of June 30, 2025 and December 31, 2024 was presented for the cash deposited mainly at the Industrial and Commercial Bank of China of Tengsheng

The deposits were restricted due to the legal proceeding against Tengsheng Paper and Jie Ping, who served as the executive director

and the legal representative of Tengsheng Paper.

of September 30, 2025 and December 31, 2024 was presented for the cash deposited mainly at the Industrial and Commercial Bank of China

of Tengsheng Paper.

The deposits were restricted due to the legal proceeding against Tengsheng Paper and Jie Ping, who served as the executive

director and the legal representative of Tengsheng Paper.

(4) Inventories

3 unchanged sentences

and tissue paper products.

Inventories consisted of the following as of June 30, 2025 and December 31, 2024:

Inventories consisted of the following as of September 30, 2025 and December 31, 2024:

September 30,

Raw Materials

8 unchanged sentences

The movement of inventory reserve was as follows:

Six Months Ended

Nine Months Ended

September 30,

Balance at beginning of year

6 unchanged sentences

Prepayments and other current assets consisted of the following as

of June 30, 2025 and December 31, 2024:

of September 30, 2025 and December 31, 2024:

September 30,

Prepayment for purchase of materials

1 unchanged sentence

Prepayment for utilities

Prepaid land lease

Allowance for doubtful accounts

The movement of allowance for doubtful accounts was as follows:

Six Months Ended

Nine Months Ended

September 30,

Balance at beginning of year

3 unchanged sentences

(6) Property, plant and equipment, net

As of June 30, 2025 and December 31, 2024, property, plant and equipment

consisted of the following:

As of September 30, 2025 and December 31, 2024, property, plant and

equipment consisted of the following:

September 30,

Land use rights

1 unchanged sentence

Machinery and equipment

Construction in progress

accumulated depreciation and amortization

4 unchanged sentences

$ 146,911,883

As of June 30, 2025 and December 31, 2024, land

use rights represented twenty four parcels of state-owned lands located in Xushui District and Wei County of Hebei Province in China,

As of September 30, 2025 and December 31, 2024,

land use rights represented twenty four parcels of state-owned lands located in Xushui District and Wei County of Hebei Province in China,

with lease terms of 50 years expiring in 2061 and 2068, respectively.

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

As of June 30, 2025 and December 31, 2024, certain

property, plant and equipment of Dongfang Paper with net values of $ nil , have been pledged pursuant to a long-term loan from credit union

of Dongfang Paper.

As of September 30, 2025 and December 31, 2024,

certain property, plant and equipment of Dongfang Paper with net values of $ nil , have been pledged pursuant to a long-term loan from credit

union of Dongfang Paper.

Certain property, plant and equipment of Baoding Shengde with net value of $ 2,282,024 and $ 3,407,848 , respectively,

as of June 30, 2025 and December 31, 2024, have been pledged pursuant two short-term loans from credit union of Baoding Shengde.

property, plant and equipment of Dongfang Paper with net values of $ 159,991 was pledged for a short-term loan from Bank of Cangzhou.

property, plant and equipment of Dongfang Paper with net values of $ 265,019 was pledged for another short-term loan from Bank of Cangzhou.

as of September 30, 2025 and December 31, 2024, have been pledged pursuant two short-term loans from credit union of Baoding Shengde.

Certain property, plant and equipment of Dongfang Paper with net values of $ 132,208 was pledged for a short-term loan from Bank of Cangzhou.

Certain property, plant and equipment of Dongfang Paper with net values of $ 222,500 was pledged for another short-term loan from Bank

See “Short-term bank loans” under Note (8), Loans Payable, for details of the transaction and asset collaterals.

Depreciation and amortization of property, plant

and equipment was $ 3,543,184 and $ 3,381,095 for the three months ended June 30, 2025 and 2024, respectively.

and equipment was $ 3,574,417 and $ 3,483,298 for the three months ended September 30, 2025 and 2024, respectively.

Depreciation and amortization

of property, plant and equipment was $ 7,090,582 and $ 6,862,883 for the six months ended June 30, 2025 and 2024, respectively.

of property, plant and equipment was $ 10,664,999 and $ 10,346,181 for the nine months ended September 30, 2025 and 2024, respectively.

Operating lease lessor

19 unchanged sentences

IT TECH PACKAGING, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The components of the Company’s lease expense are as follows:

Six Months Ended

September 30,

Operating lease cost

1 unchanged sentence

Supplemental cash flow information related to its operating leases

was as follows for the period ended June 30, 2025:

was as follows for the period ended September 30, 2025:

Cash paid for amounts included in the measurement of lease liabilities:

Six Months Ended

September 30,

Cash paid for amounts included in the measurement of lease liabilities:

1 unchanged sentence

Maturities of its lease liabilities for all operating leases are as

follows as of June 30, 2025:

follows as of September 30, 2025:

September 30,

Total operating lease payments

3 unchanged sentences

The weighted average remaining lease terms and discount rates for all

of its operating leases were as follows as of June 30, 2025:

of its operating leases were as follows as of September 30, 2025:

September 30,

Remaining lease term and discount rate:

2 unchanged sentences

IT TECH PACKAGING, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(8) Loans Payable

Short-term bank loans

September 30,

Rural Credit Union of Xushui District Loan 1

Rural Credit Union of Xushui District Loan 2

Rural Credit Union of Xushui District Loan 3

Rural Credit Union of Xushui District Loan 4

Bank of Cangzhou Loan 1

4 unchanged sentences

On December 24, 2024, the Company entered into

a loan agreement with the Rural Credit Union of Xushui District, with a balance of $ 1,815,998 and $ 1,808,469 as of June 30, 2025 and December

a loan agreement with the Rural Credit Union of Xushui District, with a balance of $ nil and $ 1,808,469 as of September 30, 2025 and December

31, 2024, respectively.

The loan is secured by the equipment of Baoding Shengde as collateral for the benefit of the bank.

The loan bears

a fixed rate of 6 % and will be due by December 23, 2025 .

The loan was secured by the equipment of Baoding Shengde as collateral for the benefit of the bank.

The loan bore

a fixed rate of 6 %.

The loan was repaid on September 30, 2025 .

On December 24, 2024, the Company entered into

a loan agreement with the Rural Credit Union of Xushui District, with a balance of $ 2,235,074 and $ 2,225,808 as of June 30, 2025 and December

a loan agreement with the Rural Credit Union of Xushui District, with a balance of $ nil and $ 2,225,808 as of September 30, 2025 and December

31, 2024, respectively.

The loan is secured by the equipment of Baoding Shengde as collateral for the benefit of the bank and guaranteed

The loan was secured by the equipment of Baoding Shengde as collateral for the benefit of the bank and guaranteed

by a third party company.

The loan bears a fixed rate of 6 % and will be due by December 23, 2025 .

The loan bore a fixed rate of 6 %.

The loan was repaid on September 30, 2025 .

On September 30, 2025, the Company entered into a loan agreement with

the Rural Credit Union of Xushui District, with a balance of $ 1,829,569 as of September 30, 2025.

The loan is guaranteed by Mr.

and secured by the equipment of Baoding Shengde as collateral for the benefit of the bank.

The loan bears a fixed rate of 6 % and will

be due by September 29, 2026 .

On September 30, 2025, the Company entered into a loan agreement with

the Rural Credit Union of Xushui District, with a balance of $ 2,251,777 as of September 30, 2025.

The loan is secured by the equipment

of Baoding Shengde as collateral for the benefit of the bank and guaranteed by a third party company.

The loan bears a fixed rate of 6 %

and will be due by September 29, 2026 .

On December 28, 2024, the Company entered into

15 unchanged sentences

On June 11, 2024, the Company entered into a working

capital loan agreement with the ICBC, with a balance of $ nil and $ 2,782 as of June 30, 2025 and December 31, 2024, respectively.

bore a fixed interest rate of 3.45 % per annum.

capital loan agreement with the ICBC, with a balance of $ nil and $ 2,782 as of September 30, 2025 and December 31, 2024, respectively.

The loan bore a fixed interest rate of 3.45 % per annum.

The loan was repaid on June 10, 2025 .

On June 21, 2024, the Company entered into a working

capital loan agreement with the ICBC, with a balance of $ nil and $ 139,113 as of June 30, 2025 and December 31, 2024, respectively.

loan bore a fixed interest rate of 3.45 % per annum.

The loan is was repaid on June 3, 2025.

capital loan agreement with the ICBC, with a balance of $ nil and $ 139,113 as of September 30, 2025 and December 31, 2024, respectively.

The loan bore a fixed interest rate of 3.45 % per annum.

The loan was repaid on June 3, 2025 .

On June 22, 2024, the Company entered into a working

capital loan agreement with the ICBC, with a balance of $ nil and $ 139,113 as of June 30, 2025 and December 31, 2024, respectively.

loan bore a fixed interest rate of 3.45 % per annum.

capital loan agreement with the ICBC, with a balance of $ nil and $ 139,113 as of September 30, 2025 and December 31, 2024, respectively.

The loan bore a fixed interest rate of 3.45 % per annum.

The loan was repaid on June 10, 2025 .

IT TECH PACKAGING, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

On June 24, 2024, the Company entered into a working

capital loan agreement with the ICBC, with a balance of $ nil and $ 136,331 as of as of June 30, 2025 and December 31, 2024, respectively.

capital loan agreement with the ICBC, with a balance of $ nil and $ 136,331 as of as of September 30, 2025 and December 31, 2024, respectively.

The loan bore a fixed interest rate of 3.45 % per annum.

1 unchanged sentence

On June 10, 2025, the Company entered into a working

capital loan agreement with the ICBC, with a balance of $ 2,794 as of June 30, 2025.

The loan bears a fixed interest rate of 3.00 % per

capital loan agreement with the ICBC, with a balance of $ 2,815 as of September 30, 2025.

The loan bears a fixed interest rate of 3.00 %

The loan is due for repayment by June 10, 2026 .

On June 3, 2025, the Company entered into a working

capital loan agreement with the ICBC, with a balance of $ 139,692 as of June 30, 2025.

The loan bears a fixed interest rate of 3.00 % per

capital loan agreement with the ICBC, with a balance of $ 140,736 as of September 30, 2025.

The loan bears a fixed interest rate of 3.00 %

The loan is due for repayment by June 3, 2026 .

On June 10, 2025, the Company entered into a working

capital loan agreement with the ICBC, with a balance of $ 139,692 as of June 30, 2025.

The loan bears a fixed interest rate of 3.00 % per

capital loan agreement with the ICBC, with a balance of $ 140,736 as of September 30, 2025.

The loan bears a fixed interest rate of 3.00 %

The loan is due for repayment by June 10, 2026 .

On June 9, 2025, the Company entered into a working

capital loan agreement with the ICBC, with a balance of $ 136,898 as of June 30, 2025.

The loan bears a fixed interest rate of 3.00 % per

capital loan agreement with the ICBC, with a balance of $ 137,921 as of September 30, 2025.

The loan bears a fixed interest rate of 3.00 %

The loan is due for repayment by June 9, 2026 .

As of June 30, 2025, there were guaranteed short-term

borrowings of $ 2,821,781 and unsecured bank loans of $ 419,076 .

As of December 31, 2024, there were guaranteed short-term borrowings of

$ 2,225,808 and unsecured bank loans of $ 417,339 .

As of September 30, 2025, there were guaranteed

short-term borrowings of $ 4,672,437 and unsecured bank loans of $ 422,208 .

As of December 31, 2024, there were guaranteed short-term borrowings

of $ 2,225,808 and unsecured bank loans of $ 417,339 .

The average short-term borrowing rates for the

three months ended June 30, 2025 and 2024 were approximately 5.72 % and 4.45 %, respectively.

The average short-term borrowing rates for

the six months ended June 30, 2025 and 2024 were approximately 5.73 % and 4.46 %, respectively.

three months ended September 30, 2025 and 2024 were approximately 5.71 % and 4.47 %, respectively.

The average short-term borrowing rates

for the nine months ended September 30, 2025 and 2024 were approximately 5.72 % and 4.47 %, respectively.

Long-term loans

As of June 30, 2025 and December 31, 2024, long-term

loans were $ 4,692,258 and $ 4,672,806 , respectively.

As of September 30, 2025 and December 31, 2024,

long-term loans were $ 4,727,324 and $ 4,672,806 , respectively.

September 30,

Rural Credit Union of Xushui District Loan 1

Rural Credit Union of Xushui District Loan 2

Rural Credit Union of Xushui District Loan 3

Rural Credit Union of Xushui District Loan 4

Current portion of long-term loans

( 3,559,902 )

Long-term loans

As of June 30, 2025, the Company’s long-term

debt repayments for the next coming years were as follows:

As of September 30, 2025, the Company’s

long-term debt repayments for the next coming years were as follows:

Remainder of 2025

7 unchanged sentences

The loan is secured by certain of the Company’s manufacturing equipment with net book value of $ nil

as of June 30, 2025 and December 31, 2024.

as of September 30, 2025 and December 31, 2024.

Interest payment is due monthly and bore a rate of 7.68 % per annum.

2 unchanged sentences

Effective from December 3, 2024, the interest rate was reduced to 6 % per annum.

As of June 30, 2025 and December 31, 2024, the total outstanding loan balance was $ 3,490,906 and $ 3,476,434 .

Out of the total outstanding

loan balance, current portion amounted was $ 2,652,753 and $ 2,641,756 , which is presented as current liabilities in the consolidated balance

sheet and the remaining balance of $ 838,153 and $ 834,678 is presented as non-current liabilities in the consolidated balance sheet as

of June 30, 2025 and December 31, 2024, respectively.

The loan was fully repaid on August 15, 2025.

As of September 30, 2025 and December 31, 2024, the total outstanding loan balance was $ nil

and $ 3,476,434 .

Out of the total outstanding loan balance, current portion amounted was $ nil and $ 2,641,756 , which is presented as current

liabilities in the consolidated balance sheet and the remaining balance of $ nil and $ 834,678 is presented as non-current liabilities in

the consolidated balance sheet as of September 30, 2025 and December 31, 2024, respectively.

IT TECH PACKAGING, INC.

7 unchanged sentences

Effective from December 3, 2024, the interest rate was reduced to 6 % per annum.

As of June 30, 2025 and December 31, 2024,

total outstanding loan balance was $ 1,201,352 and $ 1,196,372 , respectively.

Out of the total outstanding loan balance, current portion

amounted $ 921,968 and $ 918,146 , which is presented as current liabilities and the remaining balance of $ 279,384 and $ 278,226 is presented

as non-current liabilities in the consolidated balance sheet as of June 30, 2025 and December 31, 2024, respectively.

The loan was fully repaid on August 15,

As of September 30, 2025 and December 31, 2024, total outstanding loan balance was $ nil and $ 1,196,372 , respectively.

total outstanding loan balance, current portion amounted $ nil and $ 918,146 , which is presented as current liabilities and the remaining

balance of $ nil and $ 278,226 is presented as non-current liabilities in the consolidated balance sheet as of September 30, 2025 and December

31, 2024, respectively.

On August 15, 2025, the Company entered into a

loan agreement with the Rural Credit Union of Xushui District for a term of 3 years, which is due and payable on August 14, 2028 .

loan is secured by certain of the Company’s manufacturing equipment with net book value of $ nil as of September 30, 2025.

payment is due monthly and bore a rate of 6 % per annum.

As of September 30, 2025, the total outstanding loan balance was $ 3,516,994 , which

is presented as non-current liabilities in the consolidated balance sheet as of September 30, 2025.

On August 15, 2025, the Company entered into a

loan agreement with the Rural Credit Union of Xushui District for a term of 3 years, which is due and payable on August 14, 2028 .

loan is guaranteed by an independent third party.

Interest payment is due monthly and bore a rate of 6 % per annum.

As of September 30,

2025, the total outstanding loan balance was $ 1,210,330 , which is presented as non-current liabilities in the consolidated balance sheet

as of September 30, 2025.

Total interest expenses for the short-term bank

loans and long-term loans for the three months ended June 30, 2025 and 2024 were $ 143,971 and $ 211,551 , respectively.

Total interest expenses

for the short-term bank loans and long-term loans for the six months ended June 30, 2025 and 2024 were $ 276,818 and $ 421,841 , respectively.

loans and long-term loans for the three months ended September 30, 2025 and 2024 were $ 150,701 and $ 171,430 , respectively.

Total interest

expenses for the short-term bank loans and long-term loans for the nine months ended September 30, 2025 and 2024 were $ 427,520 and $ 593,271 ,

respectively.

(9) Related Party Transactions

Name Relationship with the Company

Liu Zhenyong Controlling shareholder and Chief Executive Officer of the Company

Ma Yundong Shareholder of Tengsheng Paper and general manager of QianrongQianhui Hebei Technology Co., Ltd

Liu Xiaodong Vice general manager of Dongfang Paper

Liu Zhenhui Vice general manager of Dongfang Paper

Baoding Longping Waste Materials Recycling Co., Ltd (“Bao Ding Long Ping”) 30% owned by Mr.

Baoding XuanKang Renewable resources recycling Co., Ltd (“Bao Ding Xuan Kang”) 100% owned by Mr.

Baoding Yuehao Trading Co., Ltd.

(“Bao Ding Yue Hao”) 100% owned by Mr.

from related parties

September 30,

Bao Ding Long Ping

Bao Ding Xuan Kang

Amount due from Bao Ding Long Ping and Bao Ding

Xuan Kang represent interest-free loans extended to these related parties.

IT TECH PACKAGING, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

to related parties

September 30,

Bao Ding Xuan Kang

Bao Ding Yue Hao

Liu Zhenyong had loaned money to Dongfang

8 unchanged sentences

Liu Zhenyong, which were recorded in other payables and accrued liabilities as part of the

current liabilities in the consolidated balance sheet as of June 30, 2025 and December 31, 2024, respectively.

current liabilities in the consolidated balance sheet as of September 30, 2025 and December 31, 2024, respectively.

On December 10, 2014, Mr.

8 unchanged sentences

In February 2018, the company paid off the remaining balance, together with interest of $ 20,400 .

As of June 30,

As of September

30, 2025 and December 31, 2024, approximately $ 42,221 and $ 41,734 of interest were outstanding to Mr.

Liu Zhenyong, which was recorded in

other payables and accrued liabilities as part of the current liabilities in the consolidated balance sheet.

Liu Zhenyong, which was recorded

in other payables and accrued liabilities as part of the current liabilities in the consolidated balance sheet.

On March 1, 2015, the Company entered an agreement

15 unchanged sentences

paid off the remaining balance, together with interest of $ 94,636 .

As of June 30, 2025 and December 31, 2024, the outstanding interest

As of September 30, 2025 and December 31, 2024, the outstanding interest

was $ 193,424 and $ 191,193 , respectively, which was recorded in other payables and accrued liabilities as part of the current liabilities

in the consolidated balance sheet.

As of June 30, 2025 and December 31, 2024, total

amount of loans due to Mr.

Liu Zhenyong were $ nil .

The interest expense incurred for such related party loans were $ nil for the three

and six months ended June 30, 2025 and 2024.

The net interest owed to Mr.

Liu Zhenyong was approximately $ 305,868 and $ 304,600 , as of

June 30, 2025 and December 31, 2024, respectively, which was recorded in other payables and accrued liabilities.

In October 2022 and November 2022, the Company

5 unchanged sentences

Liu Zhengyong in August 2023 and the remaining balance was repaid in December 2023.

Interest income of the loan for the three and six

months ended June 30, 2025 and 2024 were $ nil .

As of June 30, 2025 and December 31, 2024, amount

Interest income of the loan for the three and nine

months ended September 30, 2025 and 2024 were $ nil .

As of September 30, 2025 and December 31, 2024,

total amount of loans due to Mr.

Liu Zhenyong were $ nil .

The interest expense incurred for such related party loans were $ nil for the

three and nine months ended September 30, 2025 and 2024.

The net interest owed to Mr.

Liu Zhenyong was approximately $ 308,154 and $ 304,600 ,

as of September 30, 2025 and December 31, 2024, respectively, which was recorded in other payables and accrued liabilities.

As of September 30, 2025 and December 31, 2024,

amount due to Mr.

Liu Zhenyong was $ 189,948 and $1,242 , respectively, which mainly represents funds from Mr.

2 unchanged sentences

The amount is due on demand with interest free.

As of September 30, 2025 and December 31, 2024,

amount due to Mr.

Ma Yundong was $ 47,955 and $ 40,835 , respectively, which mainly represents funds from Mr.

Ma Yundong to pay for various

expenses incurred in Tengsheng Paper and Qianrong.

The amount is due on demand with interest free.

As of September 30, 2025 and December 31, 2024, amount due to Mr.

Xiaodong was $ 10,000 and $ nil , respectively, which represents fund from Mr.

Liu Xiaodong to pay for expenses incurred in in the U.S.

amount is due on demand with interest free.

Amount due to Bao Ding Yue Hao represents an interest-free loan from

this related party.

IT TECH PACKAGING, INC.

1 unchanged sentence

(10) Other payables and accrued liabilities

September 30,

Accrued electricity

14 unchanged sentences

The Company determined its derivative liabilities

to be a Level 3 fair value measurement and used the Black-Scholes pricing model to calculate the fair value as of June 30, 2025.

The Black-Scholes

model requires six basic data inputs:

the exercise or strike price, time to expiration, the risk-free interest rate, the current stock

price, the estimated volatility of the stock price in the future, and the dividend rate.

Changes to these inputs could produce a significantly

higher or lower fair value measurement.

The fair value of each warrant is estimated using the Black-Scholes valuation model.

The following

weighted-average assumptions were used in the June 30, 2025:

to be a Level 3 fair value measurement and used the Black-Scholes pricing model to calculate the fair value as of September 30, 2025.

The Black-Scholes model requires six basic data inputs:

the exercise or strike price, time to expiration, the risk-free interest rate,

the current stock price, the estimated volatility of the stock price in the future, and the dividend rate.

Changes to these inputs could

produce a significantly higher or lower fair value measurement.

The fair value of each warrant is estimated using the Black-Scholes valuation

The following weighted-average assumptions were used in the September 30, 2025:

September 30,

Expected term

4 unchanged sentences

The following table summarizes the changes in

the derivative liabilities during the six months ended June 30, 2025:

Fair Value Measurements Using Significant Observable Inputs (Level

the derivative liabilities during the nine months ended September 30, 2025:

Fair Value Measurements Using Significant Observable Inputs

Balance at December 31, 2024

Change in fair value of derivative liability

Balance at June 30, 2025

Balance at September 30, 2025

IT TECH PACKAGING, INC.

2 unchanged sentences

Issuance of common stock to investors

On May 13, 2025, the Company entered into a securities purchase agreement

with an institutional investor (the “Purchaser”), pursuant to which the Company agreed to sell and issue to the Purchaser,

in a public offering that included certain additional other purchasers, an aggregate of 6,899,500 shares of common stock, par value $ 0.001 ,

at a purchase price of $ 0.20 per share, for aggregate gross proceeds to the Company of approximately $ 1.4 million, before deducting the

placement agent fees and estimated offering expenses payable by the Company.

On May 13, 2025, the Company entered into a securities

purchase agreement with an institutional investor (the “Purchaser”), pursuant to which the Company agreed to sell and issue

to the Purchaser, in a public offering that included certain additional other purchasers, an aggregate of 6,899,500 shares of common stock,

par value $ 0.001 , at a purchase price of $ 0.20 per share, for aggregate gross proceeds to the Company of approximately $ 1.4 million, before

deducting the placement agent fees and estimated offering expenses payable by the Company.

(13) Warrants

8 unchanged sentences

88,000 May 2020 Warrants were exercised in February 2021 at the exercise price of $ 7.425 per share and

352,000 May 2020 Warrants were outstanding as of June 30, 2025.

nil May 2020 Warrants were outstanding as of September 30, 2025.

On January 20, 2021, the Company offered and sold

5 unchanged sentences

of 2021 at the exercise price of $ 5.5 per share.

1,207,492 January 2021 Warrants were outstanding as of June 30, 2025.

1,207,492 January 2021 Warrants were outstanding as of September 30, 2025.

On March 1, 2021, the Company offered and sold

4 unchanged sentences

6,750 March 2021 Warrants were exercised in January and March 2021 at the exercise price of

$ 7.5 per share and 1,457,143 March 2021 Warrants were outstanding as of June 30, 2025.

$ 7.5 per share and 1,457,143 March 2021 Warrants were outstanding as of September 30, 2025.

The Company classified warrants as liabilities and accounted for the

3 unchanged sentences

A summary of stock warrant activities is as below:

Six months ended

Nine months ended

September 30, 2025

Weight average

3 unchanged sentences

Exercised during the period

Cancelled or expired during the period

Expired during the period

Outstanding and exercisable at end of the period

The following table summarizes information relating to outstanding

and exercisable warrants as of June 30, 2025:

and exercisable warrants as of September 30, 2025:

Warrants Outstanding Warrants Exercisable

7 unchanged sentences

Aggregate intrinsic value is the sum of the amounts

by which the quoted market price of the Company’s stock exceeded the exercise price of the warrants at June 30, 2025 for those warrants

for which the quoted market price was in excess of the exercise price (“in-the-money” warrants).

The intrinsic value of the

warrants as of June 30, 2025 and December 31, 2024 are nil .

by which the quoted market price of the Company’s stock exceeded the exercise price of the warrants at September 30, 2025 for those

warrants for which the quoted market price was in excess of the exercise price (“in-the-money” warrants).

The intrinsic value

of the warrants as of September 30, 2025 and December 31, 2024 are nil .

(14) Earnings Per Share

For the three months ended June 30, 2025 and 2024, basic and diluted

For the three months ended September 30, 2025 and 2024, basic and diluted

net loss per share are calculated as follows:

Three Months Ended

September 30,

Basic loss per share

1 unchanged sentence

$ ( 1,448,247 )

$ ( 1,973,946 )

Weighted average common stock outstanding - denominator

3 unchanged sentences

$ ( 1,448,247 )

$ ( 1,973,946 )

Weighted average common stock outstanding - denominator

4 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended June 30, 2025 and 2024, basic and diluted

For the nine months ended September 30, 2025 and 2024, basic and diluted

net loss per share are calculated as follows:

Six Months Ended

Nine Months Ended

September 30,

Basic loss per share

17 unchanged sentences

No provision for the US federal income taxes has been made as the Company had no US taxable

income for the second quarter ended June 30, 2025, and management believes that its earnings are permanently invested in the PRC.

income for the third quarter ended September 30, 2025, and management believes that its earnings are permanently invested in the PRC.

Dongfang Paper and Baoding Shengde are PRC operating

3 unchanged sentences

The provisions for income taxes for three months

ended June 30, 2025 and 2024 were as follows:

ended September 30, 2025 and 2024 were as follows:

Three Months Ended

September 30,

Provision for Income Taxes

5 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The provisions for income taxes for six months ended June 30, 2025

The provisions for income taxes for nine months ended September 30,

2025 and 2024 were as follows:

Six Months Ended

Nine Months Ended

September 30,

Provision for Income Taxes

10 unchanged sentences

These carry forwards would expire, if not utilized, during the period of 2030 through 2035.

As of June 30, 2025, management believed that the realization of all the U.S.

income tax benefits from these losses, which generally would

generate a deferred tax asset if it can be expected to be utilized in the future, appears not more than likely due to the Company’s

As of September 30, 2025, management believed that the realization of all the U.S.

income tax benefits from these losses, which generally

would generate a deferred tax asset if it can be expected to be utilized in the future, appears not more than likely due to the Company’s

limited operating history and continuing losses for United States income tax purposes.

Accordingly, as of June 30, 2025 and December 31,

Accordingly, as of September 30, 2025 and December

31, 2024, the Company provided a 100 % valuation allowance on the U.S.

deferred tax asset benefit to reduce the total deferred tax asset to

the amount realizable for the PRC income tax purposes.

deferred tax asset benefit to reduce the total deferred tax asset

to the amount realizable for the PRC income tax purposes.

Management reviews this valuation allowance periodically and will make adjustments

as warranted.

A summary of the otherwise deductible (or taxable) deferred

tax items is as follows:

A summary of the otherwise deductible (or taxable) deferred tax items is as follows:

September 30,

Deferred tax assets (liabilities)

13 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

During the three months ended June 30, 2025 and

2024, the effective income tax rate was estimated by the Company to be -2.5% and 122.9 %, respectively.

During the three months ended September 30, 2025

and 2024, the effective income tax rate was estimated by the Company to be -26.8% and - 21.2 %, respectively.

Three Months Ended

September 30,

PRC Statutory rate

3 unchanged sentences

Effective income tax rate

During the six months ended June 30, 2025 and

2024, the effective income tax rate was estimated by the Company to be - 0.9 % and - 13.5 %, respectively.

Six Months Ended

During the nine months ended September 30, 2025

and 2024, the effective income tax rate was estimated by the Company to be - 5.4 % and - 16.0 %, respectively.

Nine Months Ended

September 30,

PRC Statutory rate

3 unchanged sentences

Effective income tax rate

As of June 30, 2025, except for the one-time transition

tax under the 2017 TCJA which imposes a U.S.

tax liability on all unrepatriated foreign E&Ps, the Company does not believe that its

future dividend policy and the available U.S.

tax deductions and net operating losses will cause the Company to recognize any other substantial

As of September 30, 2025, except for the one-time

transition tax under the 2017 TCJA which imposes a U.S.

tax liability on all unrepatriated foreign E&Ps, the Company does not believe

that its future dividend policy and the available U.S.

tax deductions and net operating losses will cause the Company to recognize any

other substantial current U.S.

federal or state corporate income tax liability in the near future.

Nor does it believe that the amount of the repatriation

of the VIE’s earnings and profits for purposes of paying dividends will change the Company’s position that its PRC subsidiary

Baoding Shengde and the VIE, Dongfang Paper are considered or are expected to be indefinitely reinvested offshore to support our future

capacity expansion.

Nor does it believe that the amount

of the repatriation of the VIE’s earnings and profits for purposes of paying dividends will change the Company’s position

that its PRC subsidiary Baoding Shengde and the VIE, Dongfang Paper are considered or are expected to be indefinitely reinvested offshore

to support our future capacity expansion.

If these earnings are repatriated to the U.S.

resulting in U.S.

taxable income in the future, or if it is determined

that such earnings are to be remitted in the foreseeable future, additional tax provisions would be required.

taxable income in the future,

or if it is determined that such earnings are to be remitted in the foreseeable future, additional tax provisions would be required.

The Company has adopted ASC Topic 740-10-05, Income

8 unchanged sentences

part, upon the results of operations for the given period.

As of June 30, 2025 and December 31, 2024, management considered that the Company

had no uncertain tax positions affecting its consolidated financial position and results of operations or cash flows, and will continue

to evaluate for any uncertain position in future.

As of September 30, 2025 and December 31, 2024, management considered that

the Company had no uncertain tax positions affecting its consolidated financial position and results of operations or cash flows, and

will continue to evaluate for any uncertain position in future.

There are no estimated interest costs and penalties provided in the Company’s

consolidated financial statements for the three and six months ended June 30, 2025 and 2024, respectively.

The Company’s tax positions

related to open tax years are subject to examination by the relevant tax authorities and the major one is the China Tax Authority.

consolidated financial statements for the three and nine months ended September 30, 2025 and 2024, respectively.

The Company’s tax

positions related to open tax years are subject to examination by the relevant tax authorities and the major one is the China Tax Authority.

IT TECH PACKAGING, INC.

8 unchanged sentences

All shares of common stock under the 2023 ISP,

including shares originally authorized by equity holders and shares remaining for future issuance as of June 30, 2025, have been reserved.

including shares originally authorized by equity holders and shares remaining for future issuance as of September 30, 2025, have been

(17) Commitments and Contingencies

5 unchanged sentences

30 -year term.

September 30,

Total operating lease payments

10 unchanged sentences

The lease was recorded in lease assets and liabilities in the consolidated balance sheet as

of June 30, 2025.

of September 30, 2025.

IT TECH PACKAGING, INC.

1 unchanged sentence

Capital commitment

As of June 30, 2025, the Company has entered into

several contracts for the purchase of paper machine of a new tissue paper production line PM10 and the improvement of Industrial Buildings.

Total outstanding commitments under these contracts were $ 3,453,189 and $ 3,436,091 as of June 30, 2025 and December 31, 2024, respectively.

As of September 30, 2025, the Company has entered

into several contracts for the purchase of paper machine of a new tissue paper production line PM10 and the improvement of Industrial

Total outstanding commitments under these contracts were $ 3,478,995 and $ 3,436,091 as of September 30, 2025 and December 31,

2024, respectively.

The Company expected to pay off all the balances within 1 - 3 years.

1 unchanged sentence

The Company agreed with

Baoding Huanrun Trading Co., a major supplier of raw materials, to guarantee certain obligations of this third party, and as of June 30,

Baoding Huanrun Trading Co., a major supplier of raw materials, to guarantee certain obligations of this third party, and as of September

30, 2025 and December 31, 2024, the Company guaranteed its long-term loan from financial institutions amounting to $ 4,362,818 (RMB 31,000,000 )

5 unchanged sentences

and the legal representative of Tengsheng Paper, at the Lianchi District People’s Court of Baoding City, China (the “PRC Court”).

From December 2023 through 2024, the plaintiff sought property preservation measures, requesting the PRC Court to freeze totaling RMB 6.70

million worth of bank deposits held by Jie Ping and Tengsheng Paper.

Following this request, on the same day, the PRC Court issued a ruling

to immediately freeze the RMB 3.35 million worth of bank deposits of Jie Ping and Tengsheng Paper.

On June 14, 2024, the PRC Court ordered

the defendants to repay the principal of the loan in the amount of RMB 3,320,000 to the plaintiff, and Tengsheng Paper was jointly liable

for repayment.

Accrued litigation costs of $ 463,778 was recorded as current liabilities of consolidated balance sheet as of June 30, 2025.

In December 2023, the plaintiff sought property preservation measures, requesting the PRC Court to freeze totaling RMB 3.35 million worth

of bank deposits held by Jie Ping and Tengsheng Paper, which was granted by the PRC Court.

On June 14, 2024, the PRC Court ordered the

defendants to repay the principal of the loan in the amount of RMB 3,320,000 to the plaintiff, and Tengsheng Paper was jointly liable for

As of September 30, 2025, a total of RMB 6.70 million worth of bank deposits of Jie Ping and Tengsheng Paper was freezed.

litigation costs of $ 498,439 was recorded as current liabilities of consolidated balance sheet as of September 30, 2025.

(18) Segment Reporting

5 unchanged sentences

They are managed separately because each business requires different technology and marketing strategies.

Operating segments are defined as components of

an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker

(“CODM”), or decision making group, in deciding how to allocate resources and in assessing performance.

The Company’s

Liu Zhengyong, the CEO.

The Company evaluates performance of its operating

10 unchanged sentences

Three Months Ended

June 30, 2025

September 30, 2025

Not Attributable

Elimination of

Enterprise-wide,

Inter-segment

Depreciation and amortization

Gain from disposal and impairment of property, plant and equipment

Interest income

5 unchanged sentences

Three Months Ended

June 30, 2024

September 30, 2024

Not Attributable

Elimination of

Enterprise-wide,

Inter-segment

5 unchanged sentences

( 2,555,935 )

Six Months Ended

June 30, 2025

( 1,973,946 )

Nine Months Ended

September 30, 2025

Elimination of

Enterprise-wide,

Inter-segment

Depreciation and amortization

Gain on impairment of assets

Interest income

1 unchanged sentence

Income tax expense

Net income (loss)

( 6,621,654 )

2 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Six Months Ended

June 30, 2024

Nine Months Ended

September 30, 2024

Not Attributable

Elimination of

Enterprise-wide,

Inter-segment

6 unchanged sentences

( 5,798,229 )

As of June 30, 2025

As of September 30, 2025

Not Attributable

Elimination of

Enterprise-wide,

Inter-segment

5 unchanged sentences

(19) Concentration and Major Customers and Suppliers

For the three and months ended June 30, 2025 and

2024, the Company had no single customer contributed over 10% of total sales.

For the three months ended June 30, 2025, the

Company had two major suppliers accounted for 74 % and 17 % of total purchases.

For the three months ended June 30, 2024, the Company had

three major suppliers accounted for 76 %, 16 % and 7 % of total purchases.

For the six months ended June 30, 2025, the Company had two major suppliers

accounted for 75 % and 17 % of total purchases.

For the six months ended June 30, 2024, the Company had three major suppliers accounted

for 76 %, 16 % and 7 % of total purchases.

For the three and nine months ended September

30, 2025 and 2024, the Company had no single customer contributed over 10% of total sales.

For the three months ended September 30, 2025,

the Company had three major suppliers accounted for 71 %, 20 % and 7 % of total purchases.

For the three months ended September 30, 2024,

the Company had three major suppliers accounted for 73 %, 18 % and 7 % of total purchases.

For the nine months ended September 30, 2025,

the Company had three major suppliers accounted for 74 %, 18 % and 6 % of total purchases.

For the nine months ended September 30, 2024,

the Company had three major suppliers accounted for 74 %, 16 % and 7 % of total purchases.

(20) Concentration of Credit Risk

5 unchanged sentences

China in the event of bank failure, there is no deposit insurance system in China that is similar to the protection provided by the Federal

Deposit Insurance Corporation (“FDIC”) of the United States as of as of June 30, 2025 and December 31, 2024.

On May 1, 2015,

Deposit Insurance Corporation (“FDIC”) of the United States as of as of September 30, 2025 and December 31, 2024.

2015, the new “Deposit Insurance Regulations” was effective in the PRC that the maximum protection would be up to RMB 500,000

($ 70,368 ) per depositor per insured financial intuition, including both principal and interest.

For the cash placed in financial institutions in

the United States, the Company’s U.S.

bank accounts are all fully covered by the FDIC insurance as of June 30, 2025 and December

31, 2024, while for the cash placed in financial institutions in the PRC, the balances exceeding the maximum coverage of RMB 500,000 amounted

to RMB 51,146,683 ($ 7,144,789 ) as of June 30, 2025.

For the cash placed in financial institutions

in the United States, the Company’s U.S.

bank accounts are all fully covered by the FDIC insurance as of September 30, 2025 and

December 31, 2024, while for the cash placed in financial institutions in the PRC, the balances exceeding the maximum coverage of RMB 500,000

amounted to RMB 61,962,700 ($ 8,720,386 ) as of September 30, 2025.

(21) Risks and Uncertainties

3 unchanged sentences

(22) Subsequent Event

On October 31, 2025, the Company’s Annual General Meeting adopted

and approved the 2025 Omnibus Equity Incentive Plan of IT Tech Packaging, Inc.

(the”2025 ISP”).

Under the 2025 ISP, the Company

has reserved a total of 1,500,000 shares of common stock for issuance as or under awards to be made to the directors, key management employees

and consultants of the Company and its subsidiaries.

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