What changed in this filing

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Item 1. Business

2025-10-14 compared with 2024-09-30 · 244 added, 483 removed, 269 unchanged (73% of the section changed)

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cross-border supply chain solution provider with a strategic focus on the Asian market including China and South Korea.

provide customized cross-border ocean freight solutions and airfreight solutions in the U.S.

that specifically cater to our customers’

requirements and needs in transporting goods into the U.S.

We offer a wide variety of integrated services under our cross-border ocean

freight solutions and cross-border airfreight solutions, including (i) cross-border freight consolidation and forwarding services, (ii)

customs clearance services, (iii) warehousing and distribution services and (iv) U.S.

We primarily provide

customized cross-border ocean freight solutions and airfreight solutions in the U.S.

that specifically cater to our customers’ requirements

and needs in transporting goods into the U.S.

We offer a wide variety of integrated services under our cross-border ocean freight solutions

and cross-border airfreight solutions, including (i) cross-border freight consolidation and forwarding services, (ii) customs clearance

services, (iii) warehousing and distribution services and (iv) U.S.

domestic ground transportation services.

Founded in Chicago,

Illinois in 2018, we are an Asian American-owned business rooted in the U.S.

For the year ended June 30,

2025, we also operate a new business segment through Hupan Pharmaceutical, a comprehensive pharmaceutical distribution and supply chain

service provider headquartered in Wuhan, China with verticals in brand promotion and healthcare technology support.

We have partnered

with some pharmaceutical manufacturers to supply infusion fluids, which are our major pharmaceutical products sold and distributed during

this quarter.

Founded in Chicago, Illinois

in 2018, we are an Asian American-owned business rooted in the U.S.

with in-depth understanding of both the U.S.

international trading and logistics service markets.

Our customers are typically Asia- and U.S.-based logistics service companies

serving large e-commerce platforms, social commerce platforms and manufacturers to sell and transport consumer and industrial goods

made in Asia into the U.S.

Since inception and as of June 30, 2024, we had served over 300 customers to fulfill over 41,000

cross-border supply chain solution orders.

and Asian international

trading and logistics service markets.

Our customers are typically Asia- and U.S.-based logistics service companies serving large e-commerce

platforms, social commerce platforms and manufacturers to sell and transport consumer and industrial goods made in Asia into the U.S.

We have established an extensive

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domestic transportation services.

Since inception and as of

June 30, 2024, we had collaborated with almost all major global ocean and air carriers to forward over 31,300 twenty-foot equivalent

unit, or TEU, of container loads and 47,800 tons of air cargo.

As of June 30, 2024, we had also cooperated with over 200 domestic ground

transportation carriers, including almost all major U.S.

domestic ground transportation carriers, on a long-term, short-term or order

basis, as the case may be.

We operate two massive and

We operate three massive and

hyper-busy regional warehousing and distribution centers in the U.S., in Illinois and Texas.

With an aggregate gross feet area of approximately

98,220 square feet and 39 docks, our regional warehousing and distribution centers have an aggregate daily floor load of up to 3,000 cubic

meters of freight.

In addition to our regional centers, we maintain close contact with over 150 warehouses and distribution terminals

in almost all transportation hubs in the U.S.

which we have cooperated in the past to support the warehousing and distributing services

of our cross-border freight in case such freight requires storage, fulfilment, transloading, palletizing, packaging or distribution in

states other than Illinois and Texas.

As of June 30, 2024, we had assisted with the customs clearance of cross-border freight of an aggregate

assessed value of over $38.0 million.

Leveraging our strong cross-border

supply chain service capabilities, extensive service provider network of cross-border freight carriers and U.S.

domestic ground transportation

carriers, massive and hyper-busy regional warehousing and distribution centers as well as deep understanding of the Asian markets, we

have been able to build up our brand and reputation and have achieved fast growth since our inception.

For the fiscal years ended June

30, 2024 and 2023, our revenues amounted to $18.3 million and $12.9 million, respectively, and our gross profit amounted to $3.7 million

and $2.6 million during the same periods, respectively.

As of June 30, 2024, we had fulfilled over 41,000 cross-border supply chain solution

orders for freight of an aggregate assessed value of $1.0 billion, delivered to thousands of business and residential addresses in approximately

Corporate History and Corporate Structure

We commenced our operations

in February 2018 through American Bear Logistics Corp., a corporation established under the laws of the State of Illinois.

to September 2023, we completed a reorganization and established our holding company, Lakeside Holding Limited, under the laws of the

State of Nevada on August 28, 2023.

On July 1, 2024, we completed

our initial public offering, or IPO, and listed our common stock on the Nasdaq Capital Market under the symbol “LSH.” We raised

gross proceeds of approximately US$6.8 million from this offering.

The gross proceeds were not reflected in our audited consolidated financial statements with respect to the fiscal year ended June 30,

2024 included elsewhere in this Report, and will be reflected in our audited consolidated financial statements with respect to the fiscal

quarter ended September 30, 2024 upon the filing of our periodic report on Form 10-Q.

July 2024, we established a wholly-owned subsidiary in the PRC with an aim to further expand our global footprints.

142,484 square feet and 52 docks, our regional warehousing and distribution centers have an aggregate daily floor load of up to 3,000

cubic meters of freight.

In addition to our self-operated regional centers, we maintain close contact with over 150 warehouses and distribution

terminals in almost all transportation hubs in the U.S.

which we have cooperated in the past to support the warehousing and distributing

services of our cross-border freight in case such freight requires storage, fulfilment, transloading, palletizing, packaging or distribution

in states other than Illinois and Texas.

As of June 30, 2025, we had assisted with the customs clearance, in conjunction with our other

service offerings, of cross-border freight of an aggregate assessed value of over $54.0 million.

Leveraging our strong cross-border supply chain service capabilities,

extensive service provider network of cross-border freight carriers and U.S.

domestic ground transportation carriers, massive and

hyper-busy regional warehousing and distribution centers as well as deep understanding of the Asian market, we have been able to build

up our brand and reputation and have achieved fast growth since our inception.

As of June 30, 2025, we had fulfilled over 55,000 cross-border

supply chain solution orders for freight of an aggregate assessed value of $1.0 billion, among which, 14,000 orders were completed

during the year ended June 30, 2025.

Our orders were delivered to thousands of business and residential addresses in approximately 48

During the year ended June 30, 2025, we had a

new business segment through Hupan Pharmaceutical, a comprehensive pharmaceutical distribution and supply

chain service provider headquartered in Wuhan, China with verticals in brand promotion and healthcare technology support.

We acquired the acquired 100% equity interest of Hupan Pharmaceutical

in late 2024.

We have partnered

with some pharmaceutical manufacturers to supply infusion fluids, which are our major pharmaceutical products sold and distributed during

Our Solutions and Services

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ocean freight solutions and airfreight solutions in the U.S.

that are specifically tailored to our customers’ requirements and

needs in transporting goods into the U.S.

that are specifically tailored to our customers’ requirements and needs

in transporting goods into the U.S.

Services under our cross-border

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domestic ground transportation.

Cross-border Freight Consolidation and

Forwarding Services

As a licensed non-vessel

operating common carrier, or NVOCC and indirect air carrier, we provide cross-border ocean and air freight consolidation and forwarding

services either as a freight consolidator or agent for an ocean or air shipping carrier.

Cross-border Freight Consolidation and Forwarding

As a licensed non-vessel operating

common carrier, or NVOCC and indirect air carrier, we provide cross-border ocean and air freight consolidation and forwarding services

either as a freight consolidator or agent for an ocean or air shipping carrier.

Solutions under our cross-border freight consolidation

and forwarding services include:

Ocean freight consolidation

and forwarding:

As an ocean freight forwarder, we contract with ocean shipping carriers and/or other sizeable ocean freight forwarders

to obtain transportation for a fixed number of containers between various points during a specific time period at agreed-upon rates.

We handle both full container loads and less-than-container load freight, offering a wide range of shipping options and rates than available

with carriers directly.

Airfreight consolidation

and forwarding:

As an airfreight forwarder, we purchase cargo capacity from airlines and/or other sizeable airfreight forwarders

on a volume basis and resell the space to our customers.

We determine the routing, consolidate individual, unconsolidated shipments bounds

for a particular airport distribution point, and then select the airline for transportation to the distribution point, where we then

arrange for the consolidated lot to be broken into its component shipments and for the transportation of each individual shipments to

its final destination.

Through long-term

cooperations with almost all major global ocean carriers and air carriers, we offer our freight consolidation and forwarding service

customers a wide footprint globally to cater to their shipping and space needs throughout the year, including during peak periods.

Since our inception and as of June 30, 2024, through cooperations with almost all major global ocean carriers and air carriers, we

had served over 300 customers to forward cross-border shipments consisting of over 31,800 TEU of container loads and 47,800 tons of

and forwarding services include ocean freight consolidation and forwarding and airfreight consolidation and forwarding.

We collaborate

with major global ocean carriers and air to cater to their shipping and space needs throughout the year, including during peak periods.

Customs Clearance Services

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and providing for payment of duties, taxes and fees on behalf of our customers as well as arranging for any required inspections by governmental

agencies such as the U.S.

Customs and Border Protection, or CBP.

Our customs clearance services include screening commercial documentation

for assessed value, country of origin, application for special trade programs and classification.

Since our inception and as of June

30, 2024, we had assisted with the customs clearance of cross-border freight of an aggregate assessed value of over $38.0 million.

Our customs clearance services include screening commercial documentation for assessed value, country of origin, application

for special trade programs and classification.

Warehousing and Distribution Services

For cross-border freight

we pick up at ocean ports and airports that require storage, fulfilment, trans-loading, palletizing, packaging or distribution, we offer

For cross-border freight we

pick up at ocean ports and airports that require storage, fulfilment, trans-loading, palletizing, packaging or distribution, we offer

ancillary warehousing and distribution services at our two regional warehousing and distribution centers in Illinois and Texas, adjacent

to the O’Hare International Airport and Dallas Fort Worth International Airport, respectively, and are connected to almost all

to the O’Hare International Airport and Dallas Fort Worth International Airport, respectively, and are connected to almost all major

domestic railroads and/or ports.

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Domestic Ground Transportation Services

We provide flexible, cost-competitive

full-truckload and less-than-truckload ground transportation of cross-border freight to businesses and residences in the U.S.

directly from port to door, or from our regional warehousing and distribution centers to such domestic addresses.

domestic ground

transportation services are offered through an extensive network in collaboration with our ground transportation service providers.

As of June 30, 2024, we had

established a ground transportation network in collaboration with over 200 domestic ground transportation carriers, including almost

all major U.S.

domestic ground transportation carriers, capable of delivering to thousands of business and residential addresses in approximately

states, on a long-term, short-term or order basis, as the case may be.

In addition, through establishing

in-depth and long-standing partnerships with leading supply chain service providers in Asia for domestic supply chain services in the

U.S., we have opened pathways to e-commerce and social commerce and have empowered several Asia-based e-commerce and social commerce

platform giants to sell into the U.S.

more easily and to deliver small-package goods to end consumers in the U.S.

more smoothly.

Market Opportunity

The cross-border supply chain

solutions industry is highly fragmented with thousands of companies of various sizes competing in domestic and international markets.

The overall opportunities in the cross-border supply chain solutions sector are significant.

According to McKinsey 1 ,

the cross-border supply chain solutions sector is expected to see a significant growth in the coming years.

It is estimated that the

market size of cross-border e-commerce will expand to around $1 trillion in merchandise value by 2030, from a current value of approximately

$300 billion.

We maintain a strong focus

on the Asian market.

According to McKinsey 2 , Asia is expected

to account for 57% of the growth of the global e-commerce logistics market between 2020 and 2025, making it one of the most important

regions for global trade and logistics activities going forward.

Our concentration on the Asian market enables us to develop in-depth

expertise in serving Asian countries such as China and South Korea and provides us an edge in understanding the nuances and demands in

this rapidly evolving market.

Partnering with almost all

major global ocean and air carriers, our vast network of global freight carrier partners and in-depth connections with U.S.

ground transportation

providers can offer customers consistent services, even during peak periods.

Such service reliability can be significantly beneficial

for e-commerce platforms, social commerce platforms and manufacturers that often times may face supply chain disruptions during peak

Signed, sealed, and delivered:

Unpacking the cross-border parcel market’s promise

(March 2022),https://www.mckinsey.com/industries/travel-logistics-

and-infrastructure/our-insights/signed-sealed-and-delivered-unpacking-the-cross-border-parcel-markets-promise#.

The highway of value for global logistics (May 2021), https://www.mckinsey.com/featured-insights/asia-pacific/asia-the-highway-of-value-for-global-logistics

We believe the following strengths

contribute to our success and differentiate us from our competitors:

Fast-growing U.S.-based cross-border supply

chain solution provider with a unique focus on the Asian market

We are an integrated cross-border

supply chain solution provider based in the U.S.

with a strategic focus on the Asian market.

Leveraging our strong cross-border supply

chain service capabilities, superior service quality, extensive service provider network of cross-border freight carriers and U.S.

ground transportation carriers, massive and hyper-busy regional warehousing and distribution centers as well as deep understanding of

the Asian market, we have been able to provide our Asia-based customers with individually-tailored solutions that specifically cater

to their requirements and needs in transporting goods into the U.S.

Our solutions encompass a wide variety of services such as cross-border

ocean and air freight consolidation and forwarding, customs clearance, warehousing and distributing as well as U.S.

We provide full-truckload

and less-than-truckload ground transportation of cross-border freight to businesses and residences in the U.S.

either directly from port

to door, or from our regional warehousing and distribution centers to such domestic addresses.

domestic ground transportation

We have grown our business

rapidly since our inception in 2018.

As an Asian American-owned business deeply rooted in the U.S., our accumulated insights and deep

understanding of both the U.S.

and Asian international trading and logistics service markets have enabled us to build up our brand and

reputation cross-border and achieve fast growth since our inception.

As of June 30, 2024, we operated two regional warehousing and distribution

centers in the U.S., in Illinois and Texas, and we had served over 300 customers and fulfilled over 41,300 cross-border supply chain

solution orders for ocean freight and airfreight of an aggregate assessed value of $1.0 billion delivered to thousands of business and

residential addresses in approximately 48 U.S.

Our revenues increased from

$12.9 million for the fiscal year ended June 30, 2023 and to $18.3 million for the fiscal year ended June 30, 2024.

The total number of

our cross-border supply chain solution orders fulfilled increased significantly from over 10,000 for the fiscal year ended June 30, 2023

to over 16,000 for the fiscal year ended June 30, 2024, while the total number of our customers increased from approximately 190 to 206,

respectively, during the same periods.

Extensive service provider network of global

freight carriers and U.S.

ground transportation carriers

We have established an extensive,

long-standing service provider network of global freight carriers for our cross-border freight consolidation and forwarding services.

Since inception and as of June 30, 2024, we had collaborated with almost all major global ocean and air carriers to serve over 300 customers

to forward cross-border shipments consisting of over 31,800 TEU of container loads and 47,800 tons of air cargo.

We have also established

a massive, in-depth and long-standing U.S.

domestic ground transportation service provider network in collaboration with domestic ground

transportation carriers.

As of June 30, 2024, we had cooperated with over 200 domestic ground transportation carriers, including almost

all major U.S.

domestic ground transportation carriers, on a long-term, short-term or order basis, as the case may be.

We believe such

extensive collaboration network has enabled us to provide our customers with more flexible and optimized options of origin ports, shipping

routes, shipping frequency and delivery times that suit their needs better.

Symbiotic relationships with a large base

of customers with high demands for supply chain solutions

We forge symbiotic relationships

with a large base of customers that are typically Asia- and U.S.-based logistics service companies serving large e-commerce platforms,

social commerce platforms and manufacturers to sell and transport consumer and industrial goods made in Asia into the U.S.

Since inception

and as of June 30, 2024, we had served over 300 customers with over 41,300 cross-border supply chain solution orders fulfilled.

our solutions have become a vital, indispensable part of our customers’ international trading and/or service value chain.

Our solutions

lift the burden associated with searching for, contracting with, coordinating with and paying various freight carriers, customs brokers

domestic transportation brokers on individual basis and enable our customers to commit their limited operational and managerial

resources to their core business activities and achieve their business objectives cost-effectively.

For example, we are among the earliest

U.S.-based third-party supply chain service suppliers of a top integrated logistics service provider headquartered in China and have

served this customer for over three years, enabling this customer to effectively obtain integrated supply chain capabilities and expertise

without having devoted substantial operational resources and costs.

Leveraging our strong supply chain service capabilities

and deep understanding of the Asian market, we have been able to provide our Asia-based customers with customized solutions that specifically

cater to their needs.

We believe our customized cross-border supply chain solutions offer compelling value propositions to our customers,

allowing us to become their go-to third-party service suppliers for exporting and transporting into the U.S.

Persistent focus on providing superior

service efficiency and quality

We are driven by a persistent

focus on providing highly efficient quality services to our customers.

We have standardized, unified and streamlined the protocols and

criteria of our wide variety of supply chain service offerings, aiming to provide reliable and best-quality services to customers.

example, we manage our cross-border freight consolidation and forwarding services and our U.S.

domestic ground transportation services

to specific objectives, such as high customer service scores for on-time delivery and damage-free freight.

During the fiscal years ended

June 30, 2023 and 2024, among our overall cross-border ocean freight and airfreight supply chain solution orders, the damage rate of the

total shipments delivered through our service network of global freight carriers and U.S.

domestic ground transportation carriers consistently

maintained less than 1.0%.

We have also established a customer support regime that is available from 8am to 11pm, seven days a week, to

address the needs of our international customers.

During the fiscal years ended June 30, 2023 and 2024, over 40.0% and 46.0% of our customers

were repeat customers.

Visionary and accomplished young management

team with strong industry expertise and in-depth understanding of Asian market

We were founded by two Asian

American entrepreneurs who have worked closely together for over seven years.

Henry Liu, our co-founder, chairman of the board of

directors and chief executive officer, is a successful Asia-born, U.S.-educated entrepreneur.

Shuai Li, our co-founder, president

and chief operating officer, is also of an Asian descent.

We benefit from the leadership of such management team with prominent strategic

visions, in-depth industry expertise, extensive managerial and operational experience as well as deep understanding of both the U.S.

and Asian market.

The key members of our management have an average of more than ten years of experience in the logistics service industry.

We believe our management’s industry expertise, coupled with their vision and entrepreneurial spirit, has enabled us and will continue

to enable us to navigate in the cross-border supply chain solution market successfully.

Our Growth Strategies

We believe that we have a

significant opportunity before us, both to further our mission and to strengthen our business and grow our revenues.

We are focused on

the following strategies to drive our growth:

Solidify our competitive edge and further

grow customer base

We have established a global

ocean freight and airfreight carrier collaboration network as well as an extensive U.S.

domestic ground transportation collaboration

network that cater to the needs of our large base of customers in Asia seeking integrated cross-border supply chain solutions, and we

have achieved a robust revenue growth during the past few years.

We intend to solidify our competitive edge in the cross-border ocean

freight solution sector and further grow the scale of our cross-border airfreight solution operations.

We seek to deepen the strategic

long-term relationships with our global ocean and air carrier service provider as well as U.S.

domestic transportation service providers,

tap into new markets with them and explore new ways of collaborations.

On the other hand, we strive to strengthen our branding and sales

efficiencies, increase our presence in Asia and the globe as a U.S.-based integrated cross-border supply chain solution provider, capitalize

on the massive opportunities for cross-border supply chain solutions within the thriving global social commerce market driven by consumer

purchases directly through social media channels, and expand our customer base globally.

We will also continue to optimize our service

quality and enhance the experience and loyalty of our customers.

Expand our global footprints more extensively

We seek to provide integrated

supply chain solutions to customers globally.

We believe there are significant opportunities in the merchandise trade between the U.S.

and emerging economies in Southeast Asia and South America, which we intend to leverage on and further expand our global footprints.

For example, in addition to our two existing regional warehousing and distribution centers in Illinois and Texas, we plan to establish

new hubs and centers in other major border cities in the U.S., such as Houston, Texas and Miami, Florida to cater to the needs in cross-border

supply chain solutions from customers in Canada and South America.

We also plan to expand our already extensive coverage of Asia-to-U.S.

shipping routes provided by our ocean carrier service providers and allow our customers in Asia to have more flexible and optimized options

of origin ports, shipping routes and shipping frequency.

Moreover, we aim to extend our carrier collaboration network’s reach to

penetrate Europe and bring our integrated and streamlined cross-border supply chain solutions to European customers, facilitating the

flow of goods from Europe to the U.S.

as well as elsewhere in the world.

Diversify and increase the breadth and

depth of our service offerings through an organic growth and/or mergers and acquisitions

We intend to expand our portfolio

of supply chain solutions and diversify our service offerings to more upstream and downstream sectors throughout the entire international

trade value chain through an organic growth and/or mergers and acquisitions.

For example, leveraging our existing extensive cross-border

logistics network and strong supply chain management capabilities, we plan to expand into the prospective trading market and establish

integrated cross-border trading businesses in free-trade zones with a focus on the export of U.S.-made consumer goods to the Asian market

and the import of Asia-made consumer goods into the U.S.

In addition, we plan to continue to deepen and broaden our current supply

chain service offerings by (i) expanding the categories of cargo transported through our cross-border ocean freight solutions and airfreight

solutions to cover special cargo, including dangerous goods such as lithium batteries, perishable cargo, wet cargo, and temperature-sensitive

goods, and (ii) launching new services such as last mile, inventory management and one-stop multi-model solutions, with an aim to bring

more value-adds to our customers.

Optimize operational efficiency and maintain

premier service quality

We aim to drive further the

operational efficiency of each service offering under our cross-border ocean freight and airfreight solutions, reduce costs and maximize

the overall profitability.

For example, in addition to utilizing a core technology platform which streamlines and monitors our various

service offerings in real time, we plan to upgrade the standardization machinery, systems and functions at our regional warehousing and

distribution centers, including to further invest in automation equipment such as industrial conveyor belts to advance the automation

processes of sorting, packaging, distribution and trans-loading at these regional centers.

We will also continue to strengthen the training

of our personnel among the various function departments and adopt a holistic yet rigorous service quality management approach to ensure

the premier quality of each service offering under our integrated cross-border supply chain solutions.

Continue to invest in and advance our technologies

We plan to continue to invest

in and further digitize our technology platform to address our needs or those of our customers.

We believe that efficient and effective

use of information technology and advanced automation systems will allow us to further enhance our competitive position and drive our

continued growth and profitability.

We intend to establish a core technology platform which encompasses our warehousing and distribution

system, pricing engine, cross-border ocean and air carrier interface as well as U.S.

domestic ground transportation carrier interface,

allowing our customers to track the movement of their cross-border freight from end to end.

In addition, we aim to develop a proprietary

suite of intelligent tools and analytics, incorporating dynamic data science, predictive analytics and machine learning, to aid our daily

operations and drive further productivity across our various cross-border supply chain service offerings.

Service Provider Network

We have established an extensive

and long-standing service provider network of (i) global freight carriers and (ii) U.S.

services are offered through an extensive network in collaboration with our ground transportation service providers.

Pharmaceutical Distribution Service

We also provide comprehensive pharmaceutical distribution and supply

chain services through our subsidiary, Hupan Pharmaceutical.

We have obtained a specialized license of pharmaceutical distribution in

Mainland China.

Partnering with pharmaceutical manufacturers and end customers, we order, purchase and pick up pharmaceutical products

from manufacturers and distribute such products to a variety of customers to their designated locations.

Service Providers and Suppliers

We have established an extensive and long-standing service provider

network of (i) global freight carriers and (ii) U.S.

domestic ground transportation carriers.

inception and as of June 30, 2024, we had collaborated with almost all major global ocean and air carriers to serve over 300 customers

to forward cross-border shipments consisting of over 31,800 TEU of container loads and 47,800 tons of air cargo.

We had also cooperated

with over 200 domestic ground transportation carriers including almost all major U.S.

domestic ground transportation carriers with a

domestic ground transportation network of approximately 60,000 drivers and 150 terminals as of June 30, 2024, on a long-term, short-term

or order basis, as the case may be.

We also collaborate with licensed customs brokerage experts to help our customers clear shipments.

Under our extensive collaboration

network, we enable and empower global ocean freight carriers, airfreight carriers, licensed cross-border customs brokers as well as U.S.

ground transportation carriers to connect and collaborate, providing reliable, timely and integrated services to our customers.

Our ability to provide services

to our customers is highly dependent on good working relationships with these service providers.

Maintaining acceptable working relationships

with these service parties has gained increased importance in particular as a result of the effect of the pandemic, ongoing concern over

terrorism, security, changes in governmental regulation and oversight of international trade.

We use a consistent approach in selecting

and managing the service suppliers across all of our solution and service offerings, beginning with a rigorous qualification and risk-based

diligence process.

We only select and engage compliance-focused, efficiently-run and growth-oriented service providers with superior

service quality based upon defined value elements and are intentional in our relationship and performance management activities.

our current working relationships with these service providers to be satisfactory.

However, changes in the financial stability and operating

capabilities and capacity of asset-based carriers, capacity allotments available from carriers, governmental regulation or deregulation

efforts, modernization of the regulations governing customs brokerage, and/or changes in governmental restrictions, quota restrictions

or trade accords could affect our business in unpredictable ways.

One of the ways in which

we deliver superior service to our customers is by empowering our employees with technology.

Our industry is evolving, and customers

tend to de-risk their supply chains by forming relationships with reliable service providers that have invested in innovation.

As of June 30, 2025, we had collaborated

with almost all major global ocean and air carriers to forward cross-border shipments consisting of over 35,900 TEU of container loads

and 69,300 tons of air cargo.

We had also cooperated with over 200 domestic ground transportation carriers including almost all major

domestic ground transportation carriers with a domestic ground transportation network of approximately 60,000 drivers and 150 terminals

as of June 30, 2025, on a long-term, short-term or order basis, as the case may be.

We also collaborate with licensed customs brokerage

experts to help our customers clear shipments.

We use a consistent approach

in selecting and managing the service suppliers across all of our solution and service offerings, beginning with a rigorous qualification

and risk-based diligence process.

We only select and engage compliance-focused, efficiently-run and growth-oriented service providers

with superior service quality based upon defined value elements and are intentional in our relationship and performance management activities.

We consider our current working relationships with these service providers to be satisfactory.

However, changes in the financial stability

and operating capabilities and capacity of asset-based carriers, capacity allotments available from carriers, governmental regulation

or deregulation efforts, modernization of the regulations governing customs brokerage, and/or changes in governmental restrictions, quota

restrictions or trade accords could affect our business in unpredictable ways.

For our pharmaceutical distribution

services, we source products of approximately 6.5 million units from approximately 7 suppliers and deliver them to 47 customers during

the year ended June 30, 2025.

We believe that competitive sources are readily available for substantially all of the products we require

for our pharmaceutical distribution businesses.

As such, we believe that we can change suppliers without any material interruption to

our business.

To date, we have not experienced any significant difficulty in sourcing our suppliers.

One of the ways in which we

deliver superior service to our customers is by empowering our employees with technology.

Our industry is evolving, and customers tend

to de-risk their supply chains by forming relationships with reliable service providers that have invested in innovation.

We have built a highly scalable

proprietary technology platform on the cloud — the American Bear Logistics Data Tool Management Platform, which streamlines our

variety of service offerings and promotes our overall operating efficiency.

Our technology platform, powered by sophisticated analytics

of the massive amounts of route and price data derived from the past provision of our solutions and services, (i) optimizes the route-building

proprietary technology platform on the cloud - the American Bear Logistics Data Tool Management Platform, which streamlines our variety

of service offerings and promotes our overall operating efficiency.

Our technology platform, powered by sophisticated analytics of the

massive amounts of route and price data derived from the past provision of our solutions and services, (i) optimizes the route-building

and pricing for both our cross-border freight forwarding and domestic ground transportation services, (ii) allows for automated, real-time

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time and (iii) provides for automatic contractual account management, document generation and recordkeeping.

In addition, for our two

regional warehousing and distribution centers, we developed an intelligent warehousing system which allows us to manage our storage remotely,

prevents stockouts and overstocking and enables intelligent replenishment and order fulfilment.

For example, this warehousing system

automatically sends alerts when inventory levels reach predetermined thresholds, ensuring timely restocking and promoting operational

In addition, for our two regional

warehousing and distribution centers, we developed an intelligent warehousing system which allows us to manage our storage remotely, prevents

stockouts and overstocking and enables intelligent replenishment and order fulfilment.

For example, this warehousing system automatically

sends alerts when inventory levels reach predetermined thresholds, ensuring timely restocking and promoting operational efficiency.

We have developed reliable

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following factors:

relationships;

and quality of services;

of transportation;

infrastructure and capabilities;

experience and expertise.

● customer relationships;

● caliber and quality of services;

● modes of transportation;

● technology infrastructure and capabilities;

● industry experience and expertise.

We are well-positioned to

effectively compete based on the factors listed above.

However, some of our current or future competitors may have greater financial

or operational resources, greater brand recognition, or a longer operating history, which could enable them to respond more quickly to

changes in market dynamics and customer demands and preferences, devoting greater resources towards seizing this market than we can.

However, some of our current or future competitors may have greater financial or

operational resources, greater brand recognition, or a longer operating history, which could enable them to respond more quickly to changes

in market dynamics and customer demands and preferences, devoting greater resources towards seizing this market than we can.

Sales and Marketing

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our brand awareness and reputation among them.

We primarily attract new customers with testimonials of our cross-border supply chain

solutions and referrals by our existing customers.

We also approach prospective customers by attending international trade fairs, exhibitions

and conferences as well as events held by local chambers of commerce.

We regularly conduct key performance indicator reviews with our

customers and take measures to maintain close rapport with them.

We primarily attract new customers with testimonials of our cross-border supply chain solutions

and referrals by our existing customers.

We also approach prospective customers by attending international trade fairs, exhibitions and

conferences as well as events held by local chambers of commerce.

We regularly conduct key performance indicator reviews with our customers

and take measures to maintain close rapport with them.

Intellectual Property

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non-disclosure agreements, to establish and protect our proprietary rights.

Despite these efforts, there can be no assurance that we

will adequately protect our intellectual property.

Despite these efforts, there can be no assurance that we will

adequately protect our intellectual property.

As of June 30, 2025, we had

obtained the trademark registration for our key trademark, American Bear Logistics.

In addition, we have registered domain names for

websites that we use in our business, such as www.americanbearlogistics.com .

In addition, we have registered domain names for websites

that we use in our business, such as www.americanbearlogistics.com .

We maintain insurance for

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possible to reliably predict whether our historical revenue and profitability trends will continue to occur in future periods.

people are key to our success.

As of June 30, 2024, we had a workforce of 50 full-time employees

across various functions.

None of our employees are represented by labor unions or work under

any collective bargaining agreements.

We have not experienced any work stoppages, and we

believe that our employee relations are strong.

Our people are key to our

As of June 30, 2025, we had a workforce of 94 full-time employees across various functions.

None of our employees are represented

by labor unions or work under any collective bargaining agreements.

We have not experienced any work stoppages, and we believe that our

employee relations are strong.

We work diligently to create

an equitable and inclusive work environment for our diverse group of people who are young, energetic, highly educated and multi-lingual.

As of June 30, 2024, our overall workforce is 100% of a minority ethnicity and 62% of female.

In addition, among such workforce, 30%

holds a bachelor’s degree, 46% holds an advanced degree such as a master’s degree, and 98% is bi-lingual.

We provide equal

opportunities for growth, success, promotion, learning and development, and aim to achieve parity in the way we organize and manage operations.

We are focused on building support across all functions and individuals, ensuring everyone has a voice, and treats each other with respect.

We provide equal opportunities for growth, success, promotion, learning and development, and aim to achieve parity in the way we organize

and manage operations.

We are focused on building support across all functions and individuals, ensuring everyone has a voice, and treats

each other with respect.

Government Regulations

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an NVOCC), an indirect air carrier, a container freight station, and licenses issued by the International Air Transport Association.

To the extent material to our understanding, as of the date of this report, we believe that we have obtained all licenses, permits and

approvals from the relevant governmental authorities necessary for our business operations in the U.S.

the extent material to our understanding, as of the date of this report, we believe that we have obtained all licenses, permits and approvals

from the relevant governmental authorities necessary for our business operations in the U.S.

Given the uncertainties of interpretation

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permissions or approvals are not required.

Any lack of or failure to maintain requisite approvals, licenses or permits applicable to

us or the affiliated entities may have a material adverse impact on our business, results of operations, financial condition and prospects

Any lack of or failure to maintain requisite approvals, licenses or permits applicable to us

or the affiliated entities may have a material adverse impact on our business, results of operations, financial condition and prospects

and cause the value of any securities we offer to significantly decline or become worthless.

This section provides an

overview of the key regulations and legal considerations in the U.S.

pertaining to our cross-border ocean freight solutions and cross-border

airfreight solutions.

To the extent material to our understanding, we do not believe any current foreign governmental regulations impose

material restraints on our business operations as of the date of this report.

We further acknowledge that in the course of our operations,

we are committed to complying with applicable data protection laws and regulations that govern the privacy and security of data it handles,

which are increasingly global in scope due to the nature of cross-border supply chain solutions.

This section provides an overview

of the key regulations and legal considerations in the U.S.

pertaining to our cross-border ocean freight solutions and cross-border airfreight

To the extent material to our understanding, we do not believe any current foreign governmental regulations impose material

restraints on our business operations as of the date of this report.

We further acknowledge that in the course of our operations, we are

committed to complying with applicable data protection laws and regulations that govern the privacy and security of data it handles, which

are increasingly global in scope due to the nature of cross-border supply chain solutions.

Regulations Relating to Labor and Employment

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laws, we adhere to labor and employment laws at the federal and state levels.

This includes fair employment practices, wage and hour

regulations, worker safety, and anti-discrimination law.

We are committed to providing a fair and inclusive workplace environment that

respects the rights of our employees and fosters a culture of diversity and equality.

This includes fair employment practices, wage and hour regulations,

worker safety, and anti-discrimination law.

We are committed to providing a fair and inclusive workplace environment that respects the

rights of our employees and fosters a culture of diversity and equality.

Regulations Regarding Cross-border Freight

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Air Freight Forwarding Services

In accordance with the

Federal Aviation Act enforced by the Federal Aviation Administration within the U.S.

Department of Transportation, and the

Transportation Security Administration (the “TSA”) within the Department of Homeland Security (the “DHS”),

an air freight forwarder is classified as an indirect air cargo carrier.

Even if air freight forwarders enjoy exemptions from the

majority of the Federal Aviation Act’s requirements through compliance with the Economic Aviation Regulations, the industry

remains under the constant scrutiny of evolving regulatory and legislative developments, and these developments have the potential

to significantly impact the industry’s economic landscape, necessitating adjustments to operational practices and exerting

influence on both service demands and associated costs.

Regarding our involvement in the air transportation sector within the United

States, we are subject to regulatory oversight by the TSA within the DHS as an indirect air carrier.

All indirect air carriers

operating in the United States must adhere to mandated security protocols and undergo periodic audits conducted by the TSA.

According to Federal Code 71 FR 33255, each indirect air carrier must allow the TSA, at any time or place, to make any inspections

or tests, including copying records, to determine compliance of an airport operator, aircraft operator, foreign air carrier, and

indirect air carrier.

At the request of the TSA, each indirect air carrier also has to provide evidence of compliance with this

subchapter and its indirect air carrier security program, including copies of records.

The TSA may enter and be present with in

areas where security measures required by the TSA are carried out without access media or identification media issued or approved by

the indirect air carrier, an airport operator, or aircraft operator, in order to inspect or test compliance, or perform other such

duties as the TSA may direct.

In accordance with the Federal

Aviation Act enforced by the Federal Aviation Administration within the U.S.

Department of Transportation, and the Transportation Security

Administration (the “TSA”) within the Department of Homeland Security (the “DHS”), an air freight forwarder is

classified as an indirect air cargo carrier.

Even if air freight forwarders enjoy exemptions from the majority of the Federal Aviation

Act’s requirements through compliance with the Economic Aviation Regulations, the industry remains under the constant scrutiny of

evolving regulatory and legislative developments, and these developments have the potential to significantly impact the industry’s

economic landscape, necessitating adjustments to operational practices and exerting influence on both service demands and associated costs.

Regarding our involvement in the air transportation sector within the United States, we are subject to regulatory oversight by the TSA

within the DHS as an indirect air carrier.

All indirect air carriers operating in the United States must adhere to mandated security protocols

and undergo periodic audits conducted by the TSA.

According to Federal Code 71 FR 33255, each indirect air carrier must allow the TSA,

at any time or place, to make any inspections or tests, including copying records, to determine compliance of an airport operator, aircraft

operator, foreign air carrier, and indirect air carrier.

At the request of the TSA, each indirect air carrier also has to provide evidence

of compliance with this subchapter and its indirect air carrier security program, including copies of records.

The TSA may enter and be

present with in areas where security measures required by the TSA are carried out without access media or identification media issued

or approved by the indirect air carrier, an airport operator, or aircraft operator, in order to inspect or test compliance, or perform

other such duties as the TSA may direct.

Ocean Freight Forwarding Services/NVOCC

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The Montreal Convention

imposes a limit on the air carrier’s liability, capping it at a maximum of 22 special drawing rights per gross kilogram of the

cargo that has been lost or damaged.

imposes a limit on the air carrier’s liability, capping it at a maximum of 22 special drawing rights per gross kilogram of the cargo

that has been lost or damaged.

Freight forwarder’s

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PPI must supply specific data to the agent for electronic export information filing purposes.

Further, in a routed export

transaction, the U.S.

in a routed export transaction, the U.S.

agent representing the foreign PPI is considered the “exporter” under the EAR.

They are responsible

for determining licensing authority and obtaining the necessary license or authorization for the export.

In such cases, the agent representing

the foreign PPI must obtain a power of attorney or written authorization to act on their behalf.

However, if the U.S.

PPI fails to obtain

the required authorization from the foreign PPI, they become the “exporter” and must handle licensing authority and obtain

the appropriate license, even in the context of a routed export transaction for electronic export information filing.

However, in a non-routed

transaction, if the U.S.

PPI authorizes an agent to prepare and file the export declaration on their behalf, the U.S.

PPI assumes the

role of the “exporter” under the EAR.

are responsible for determining licensing authority and obtaining the necessary license or authorization for the export.

In such cases,

the agent representing the foreign PPI must obtain a power of attorney or written authorization to act on their behalf.

However, if the

PPI fails to obtain the required authorization from the foreign PPI, they become the “exporter” and must handle licensing

authority and obtain the appropriate license, even in the context of a routed export transaction for electronic export information filing.

However, in a non-routed transaction, if the U.S.

PPI authorizes an agent to prepare and file the export declaration on their behalf,

PPI assumes the role of the “exporter” under the EAR.

In this scenario, the U.S.

PPI is obliged to:

(i) provide the agent with necessary

information for the Automated Export System (the “AES”) submission, which is a system the U.S.

exporters use to electronically

declare their international exports, known as the Electronic Export Information (the “EEI”), to the Census Bureau to help

(i) provide the

agent with necessary information for the Automated Export System (the “AES”) submission, which is a system the U.S.

use to electronically declare their international exports, known as the Electronic Export Information (the “EEI”), to the

Census Bureau to help compile U.S.

export and trade statistics;

(ii) authorize the agent to complete the AES submission through a power of attorney or written

authorization;

(ii) authorize the agent to complete the AES submission through a power

of attorney or written authorization;

and (iii) maintain documentation supporting the information provided to the agent for the AES submission.

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Container Freight Stations (“CFS”)

Our operations encompass

warehousing and distribution services conducted within our regional warehousing and distribution centers.

We own a CFS, which is licensed

and certified by U.S.

CFS facilities are an integral part of the logistics and shipping industry, where cargo containers are

consolidated, deconsolidated, and temporarily stored during the import and export process.

Besides consolidation and storage, CFS provide

aspect rum of supplementary services, including documentation, custom examination, export clearance procedure.

CFS facilities often handle

imported and exported goods, so they must comply with customs regulations specific to the country or region in which they are located.

This can include procedures for customs clearance, documentation, and security measures to prevent smuggling and ensure compliance with

Our operations encompass warehousing

and distribution services conducted within our regional warehousing and distribution centers.

We own a CFS, which is licensed and certified

CFS facilities are an integral part of the logistics and shipping industry, where cargo containers are consolidated,

deconsolidated, and temporarily stored during the import and export process.

Besides consolidation and storage, CFS provide aspect rum

of supplementary services, including documentation, custom examination, export clearance procedure.

CFS facilities often handle imported

and exported goods, so they must comply with customs regulations specific to the country or region in which they are located.

include procedures for customs clearance, documentation, and security measures to prevent smuggling and ensure compliance with trade laws.

Pursuant to 19 CFR Part 19,

the establishment of a container station, independent of the importing carrier, is subject to application submission and approval by

the port director.

the establishment of a container station, independent of the importing carrier, is subject to application submission and approval by the

port director.

Additionally, a Customs Form 301 must be filed, featuring bond conditions as stipulated in § 113.63 of such chapter,

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by customs officers to perform the service.

For containerized cargo,

whether it needs transportation from the point of unloading to a designated container station or is received directly at the container

station from a bonded carrier following in-bond transportation, an entry of merchandise must be filed.

Permission is sought for the purpose

of breaking bulk and redelivery of the cargo.

In addition, concerning the transfer of containers, our container station operator must

file an application for the transfer of merchandise with the customs authorities or customs inspector at the location where the container

is unloaded, or for merchandise transported in-bond, at the designated facility of the bonded carrier as determined by the port director.

For containerized cargo, whether

it needs transportation from the point of unloading to a designated container station or is received directly at the container station

from a bonded carrier following in-bond transportation, an entry of merchandise must be filed.

Permission is sought for the purpose of

breaking bulk and redelivery of the cargo.

In addition, concerning the transfer of containers, our container station operator must file

an application for the transfer of merchandise with the customs authorities or customs inspector at the location where the container is

unloaded, or for merchandise transported in-bond, at the designated facility of the bonded carrier as determined by the port director.

Such filings must adhere to the prescribed format as per regulations.

As outlined in 39 FR 4876, when the container station operator

utilizes their own vehicle to transfer merchandise to their station, the merchandise may only be transferred by a bonded cartman or bonded

As outlined in 39 FR 4876, when the container station operator utilizes

their own vehicle to transfer merchandise to their station, the merchandise may only be transferred by a bonded cartman or bonded carrier.

The station operator, cartman, or carrier must issue a receipt for the merchandise on both copies of the application.

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landscape of supply chains, data protection has emerged as a significant challenge for the logistics sector.

The Privacy Act of 1974

and the General Data Protection Regulation (the “GDPR”) have been enacted to ensure data privacy, regulatory frameworks and

laws in order to safeguard this valuable information.

Companies like us now shoulder the added responsibility of overseeing the proper

collection and utilization of the vast volumes of customer data circulating within the logistics supply chain.

The Privacy Act of 1974,

with amendments up to the present day, including Statutory Notes (5 U.S.C.552a), plays a vital role in protecting records about individuals,

The Privacy Act of 1974 and

the General Data Protection Regulation (the “GDPR”) have been enacted to ensure data privacy, regulatory frameworks and laws

in order to safeguard this valuable information.

Companies like us now shoulder the added responsibility of overseeing the proper collection

and utilization of the vast volumes of customer data circulating within the logistics supply chain.

The Privacy Act of 1974, with

amendments up to the present day, including Statutory Notes (5 U.S.C.552a), plays a vital role in protecting records about individuals,

retrieved by personal identifiers such as names, social security numbers, or other identifying information.

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the integrity of sensitive data in the complex landscape of logistics, where trust and security are paramount.

Regulations Relating to Distribution of

Pharmaceutical Products in China

According to the “Regulations on the Supervision and Administration

of the Quality of Pharmaceutical Operation and Use” implemented by the State Administration for Market Regulation of China in January

2024, the entity which is engaged in pharmaceutical wholesale or retail activities within the territory of the People’s Republic of China

should obtain the Pharmaceutical Operation License.

The local departments of the National Medical Products Administration pharmaceutical

and the State Administration for Market shall supervise the daily operation of those entities through regular and casual inspections.

Those inspections are aiming at the whether the purchase, storage, sales and other operating activities of the pharmaceutical selling

entities are compliant with the related regulations.

In August 2025, Hubei Pharmaceutical has passed an on-site inspection from Hubei

Administration for Market.

Available Information

Our website address is www.lakeside-holding.com and

our subsidiary's website address is www.americanbearlogistics.com .

The information on, or that can be accessed through, our

websites is not part of this report and is not incorporated by reference herein.

We have included our websites address as

inactive textual reference only.

Our website address is www.lakeside-holding.com

and our subsidiary’s website address is www.americanbearlogistics.com .

The information on, or that can be accessed through,

our websites is not part of this report and is not incorporated by reference herein.

We have included our websites address as inactive

textual reference only.

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-K

Item 1. Business