Item 1. Legal Proceedings
ITEM 1. LEGAL PROCEEDINGS
Wyoming Shareholder Lawsuits: Since mid-September
2023, Mr. Zheng Dai, Mr. Pijun Liu, and certain individuals under their control (the “Unauthorized Persons”) had been falsely
and repeatedly holding themselves out as representing and/or authorized to represent the Company. For example, the Unauthorized Persons
caused to be filed certain current reports on Forms 8-K dated September 28, 2023 and October 10, 2023, in which they purported to appoint
new officers and directors. These filings were false and should be disregarded.
On September 28, 2023, a derivative lawsuit was
filed by certain purported shareholders affiliated with the Unauthorized Persons in the United States District Court for the District
of Wyoming against certain officers and directors of the Company, seeking control of the Company. This case was dismissed without prejudice
on October 18, 2023.
On October 18, 2023, the same individuals
who filed the above-described derivative suit filed a direct action against the Company in the Chancery Court of the State of
Wyoming (the “Chancery Court”), again seeking control of the Company. The Company responded to the lawsuit, sought a
temporary restraining order restraining the plaintiff-shareholders and their affiliates (including the Unauthorized Persons) from
claiming to be in control of the Company.
In early 2024, the Court issued an order restraining
the Unauthorized Persons from purporting to control the Company. The Unauthorized Persons’ lawsuit was subsequently dismissed with
prejudice, meaning they can no longer attempt to assert control over the Company.
New York Loan Guarantee Litigation: In
May 2024, certain non-U.S. Parties believed to be affiliated with the Unauthorized Persons described above filed a lawsuit in New
York State court against many non-U.S. borrowers, alleging the borrowers have not paid certain loans. These lender-plaintiffs also
sued the Company under alleged guarantees it allegedly signed to guarantee the loans at issue. The Company does not believe these
guarantees were legitimate, nor that New York is the proper place for it. The Company has moved to dismiss.
Books and records litigation: In September
2024, the Unauthorized Persons filed a lawsuit in Wyoming State court for books and records. The Company does not believe the lawsuit
has merit under Wyoming’s books and records statute and is defending this suit.
ITEM 1A. RISK FACTORS
We are a “smaller reporting company”
as defined by Item 10(f)(1) of Regulation S-K, and as such are not required to provide the information contained in this item.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES
AND USE OF PROCEEDS
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
No senior securities were issued and outstanding
during the nine months ended September 30, 2024.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable to our Company.
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