UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to ________

Commission File Number 001-37649

FIEE, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware		04-2621506
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

3-33, 2-chome Utajima, Nishiyodogawa District, Osaka, Japan		555-0021
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: +81 6 7509 3700

(Former Name or Former Address, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $0.01 par value per share		FIEE		The Nasdaq Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller Reporting Company	☒
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

As of August 12, 2026, the registrant had 8,528,598 shares of common stock, $0.01 par value per share, outstanding.

FIEE, INC. AND SUBSIDIARIES

INDEX

		Page
Part I - Financial Information

ITEM 1.	FINANCIAL STATEMENTS	1

	Condensed Consolidated Balance Sheets (unaudited) as of June 30, 2026 and December 31, 2025	1

	Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (unaudited) for the three and six months ended June 30, 2026 and 2025	2

	Condensed Consolidated Statements of Stockholders’ Equity (Deficit) (unaudited) for the three and six months ended June 30, 2026 and 2025	3

	Condensed Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2026 and 2025	5

	Notes to Condensed Consolidated Financial Statements (unaudited)	6

ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	25

ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	35

ITEM 4.	CONTROLS AND PROCEDURES	35

Part II - Other Information

ITEM 1.	LEGAL PROCEEDINGS	37

ITEM 1A.	RISK FACTORS	37

ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	37

ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	37

ITEM 4.	MINE SAFETY DISCLOSURES	37

ITEM 5.	OTHER INFORMATION	37

ITEM 6.	EXHIBITS	38

SIGNATURES		39

PART I - FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS

FIEE, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited)


	June 30, 2026			December 31, 2025
ASSETS
Current assets
Cash	$	5,435,709		$	3,084,461
Accounts receivable		5,134,459			2,110,715
Other receivables, net		-			1,217,692
Prepaid expenses and other current assets		373,949			199,309
Total current assets		10,944,117			6,612,177

Property, equipment and software, net		860,482			366,439
Intangible assets		2,888,743			3,529,835
Operating lease right-of-use assets, net		-			31,004
Goodwill		24,990			-
Deferred tax assets		26,371			-
Other assets		341,814			231,680
Total assets	$	15,086,517		$	10,771,135

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	821,899		$	511,206
Contract liabilities		343,015			1,497,721
Accrued expenses and other current liabilities		1,307,982			1,169,737
Income tax payable		1,382,613			972,743
Current maturities of operating lease liabilities		-			30,350
Total current liabilities		3,855,509			4,181,757
Total liabilities		3,855,509			4,181,757

Commitments and Contingencies (Note 7)

Stockholders’ equity
Preferred Stock, authorized: 10,000,000 shares at $0.001 par value, including 3,000,000 shares designated as Series A Convertible Preferred Stock at $0.001 par value; 2,305,357 Series A shares issued and outstanding at June 30, 2026 and December 31, 2025, aggregate liquidation preference of $3,227,500 at June 30, 2026 and December 31, 2025, respectively		1,639,779			1,639,779
Common Stock, authorized: 60,000,000 shares at $0.01 par value; issued and outstanding: 8,528,598 shares at June 30, 2026 and 7,934,122 shares at December 31, 2025, respectively		85,286			79,341
Additional paid-in capital		102,750,237			100,500,280
Accumulated deficit		(93,158,867	)		(95,621,579	)
Accumulated other comprehensive loss		(40,429	)		(8,443	)
Total stockholders’ equity attributable to parent		11,276,006			6,589,378
Noncontrolling interests		(44,998	)		-
Total stockholders’ equity		11,231,008			6,589,378
Total liabilities and stockholders’ equity	$	15,086,517		$	10,771,135

See accompanying notes to the unaudited condensed consolidated financial statements.

FIEE, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

(Unaudited)


	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
Revenues	$	4,825,340		$	44,993		$	6,947,329		$	45,118
Cost of revenues		951,806			43,930			1,579,551			44,680
Gross profit		3,873,534			1,063			5,367,778			438

Operating expenses:
Selling and marketing		252,314			16,811			286,653			16,811
General and administrative		938,162			603,744			1,935,035			944,240
Research and development		39,226			17,419			75,813			47,419
Total operating expenses		1,229,702			637,974			2,297,501			1,008,470

Operating income (loss)		2,643,832			(636,911	)		3,070,277			(1,008,032	)

Other income (expense):
Interest income (expense), net		97			(2,638	)		97			(5,427	)
Foreign currency exchange income (loss)		(6,443	)		(131	)		28,552			(131	)
Other, net		125			-			27,030			-
Total other income (expense)		(6,221	)		(2,769	)		55,679			(5,558	)

Income (loss) before income taxes		2,637,611			(639,680	)		3,125,956			(1,013,590	)

Income tax expense		526,897			-			663,726			-

Net income (loss)	$	2,110,714		$	(639,680	)	$	2,462,230		$	(1,013,590	)
Attributable to noncontrolling interests		(482	)		-			(482	)		-
Net income (loss) attributable to owners of parent	$	2,111,196		$	(639,680	)	$	2,462,712		$	(1,013,590	)
Allocation to participating preferred stock		(583,312	)		-			(695,696	)		-
Net income (loss) attributable to common stockholders	$	1,527,884		$	(639,680	)	$	1,767,016		$	(1,013,590	)

Basic earnings (loss) per common share	$	0.18		$	(0.13	)	$	0.22		$	(0.20	)
Diluted earnings (loss) per common share	$	0.14		$	(0.13	)	$	0.17		$	(0.20	)

Weighted-average number of common shares outstanding:
Basic		8,453,873			5,090,949			8,197,613			5,090,949
Diluted		10,786,717			5,090,949			10,518,841			5,090,949

Net income (loss)	$	2,110,714		$	(639,680	)	$	2,462,230		$	(1,013,590	)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment		4,316			1,962			(31,986	)		1,962
Total comprehensive income (loss)	$	2,115,030		$	(637,718	)	$	2,430,244		$	(1,011,628	)

See accompanying notes to unaudited condensed consolidated financial statements.

FIEE, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Stockholders’ Equity (Deficit)

(Unaudited)

For the three and six months ended June 30, 2026

	Preferred Stock				Common Stock				Additional Paid-in			Accumulated			Accumulated Other Comprehensive			Noncontrolling

	Shares		Amount		Shares		Amount		Capital			Deficit			Loss			Interests			Total
Balance at December 31, 2025		2,305,357	$	1,639,779		7,934,122	$	79,341	$	100,500,280		$	(95,621,579	)	$	(8,443	)	$	-		$	6,589,378
Net income		-		-		-		-		-			351,516			-			-			351,516
Foreign currency translation		-		-		-		-		-			-			(36,302	)		-			(36,302	)
Stock-based compensation		-		-		-		-		46,000			-			-			-			46,000
Common stock issuance, net of issuance cost		-		-		394,476		3,945		1,942,225			-			-			-			1,946,170
Balance at March 31, 2026		2,305,357	$	1,639,779		8,328,598	$	83,286	$	102,488,505		$	(95,270,063	)	$	(44,745	)	$	-		$	8,896,762

Net income		-		-		-		-		-			2,111,196			-			(482	)		2,110,714
Acquisition of subsidiaries		-		-		-		-		-			-			-			(44,516	)		(44,516	)
Foreign currency translation		-		-		-		-		-			-			4,316			-			4,316
Issuance of vested shares		-		-		200,000		2,000		(2,000	)		-			-			-			-
Stock-based compensation		-		-		-		-		263,732			-			-			-			263,732
Balance at June 30, 2026		2,305,357	$	1,639,779		8,528,598	$	85,286	$	102,750,237		$	(93,158,867	)	$	(40,429	)	$	(44,998	)	$	11,231,008

See accompanying notes to unaudited condensed consolidated financial statements.

FIEE, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Stockholders’ Equity (Deficit)

(Unaudited)

For the three and six months ended June 30, 2025

	Preferred Stock				Common Stock				Additional Paid-in		Accumulated			Accumulated Other Comprehensive

	Shares		Amount		Shares		Amount		Capital		Deficit			Income		Total
Balance at December 31, 2024		2,305,357	$	1,639,779		3,713,792	$	37,138	$	94,886,147	$	(96,694,013	)	$	957	$	(129,992	)
Net loss		-		-		-		-		-		(373,910	)		-		(373,910	)
Balance at March 31, 2025		2,305,357	$	1,639,779		3,713,792	$	37,138	$	94,886,147	$	(97,067,923	)	$	957	$	(503,902	)
Net loss		-		-		-		-		-		(639,680	)		-		(639,680	)
Foreign currency translation		-		-		-		-		-		-			1,962		1,962
Common Stock Issuance		-		-		2,510,597		25,106		4,049,894		-			-		4,075,000
Balance at June 30, 2025		2,305,357	$	1,639,779		6,224,389	$	62,244	$	98,936,041	$	(97,707,603	)	$	2,919	$	2,933,380

See accompanying notes to unaudited condensed consolidated financial statements.

FIEE, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Six Months Ended June 30,
	2026			2025
Cash flows from operating activities:
Net income (loss)	$	2,462,230		$	(1,013,590	)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		695,598			71,797
Amortization of right-of-use assets		31,004			19,746
Non-cash interest expense		-			5,425
Stock-based compensation		309,732			-
Deferred taxes		(26,371	)		-
Allowance for credit losses - other receivables		71,702			-
Amortization of deferred financing costs		150,000			-

Changes in operating assets and liabilities:
Accounts receivable		(5,031,796	)		-
Other receivables		1,145,991			(519,822	)
Prepaid expenses and other current assets		39,807			(44,985	)
Other assets		8,004			(77,419	)
Accounts payable		669,708			(143,414	)
Contract liabilities		(1,165,942	)		1,468,346
Income tax payable		409,870			-
Accrued expenses and other current liabilities		351,191			426,052
Operating lease liabilities		(30,350	)		(20,181	)
Net cash provided by operating activities		90,378			171,955

Cash flows from investing activities:
Cash acquired in acquisition of Yinlian Culture and its consolidated VIE		876,595			-
Purchase of property, equipment and software		(510,164	)		-
Net cash provided by investing activities		366,431			-

Cash flows from financing activities:
Proceeds from the issuance of common stock		1,999,993			4,000,000
Proceeds from the issuance of convertible note		-			300,000
Payment of deferred financing costs		(82,600	)		-
Net cash provided by financing activities		1,917,393			4,300,000

Effect of foreign exchange rate changes on cash		(22,954	)		1,962

Net increase in cash		2,351,248			4,473,917
Cash - beginning		3,084,461			30,162
Cash - ending	$	5,435,709		$	4,504,079

Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest	$	-		$	-
Income taxes	$	271,717		$	-

Supplemental disclosures of non-cash activities:
Non-cash common stock issued and to be issued that was recognized in deferred offering costs	$	-		$	150,000
Obtaining right-of-use assets in exchange for operating lease liability	$	-		$	79,580
Purchase of property, equipment, and intangible assets through increase in other payables	$	-		$	1,490,000
Addition to property, equipment and software through reclassification of prior year prepayment	$	44,613		$	-
Non-cash settlement of accounts receivable through customers’ payments made directly to prepaid expenses, accounts payable, and other payables.	$	898,146		$	-

See accompanying notes to the unaudited condensed consolidated financial statements.

FIEE, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(1) NATURE OF OPERATIONS AND BASIS OF PRESENTATION

FiEE, Inc. (formerly, Minim, Inc.) was founded in 1977 as a networking company and pivoted into delivering intelligent software to protect and improve the WiFi connections we depend on to work, learn, and live. FiEE held the exclusive global license to design, manufacture, and sell consumer networking products under the Motorola brand until 2023. Our cable and WiFi products, with an intelligent operating system and bundled mobile app, were sold in leading retailers and e-commerce channels in the United States (“U.S.”). Our artificial intelligence (“AI”)-driven cloud software platform and applications made network management and security simple for home and business users, as well as the service providers that assisted them - leading to higher customer satisfaction and decreased support burden.

On February 27, 2025, the Company filed with the Secretary of State of the State of Delaware a Certificate of Amendment to its Amended and Restated Certificate of Incorporation to change the name of the Company from Minim, Inc. to FiEE, Inc., effective as of February 27, 2025.

We continue to grow and expand our operations as a digital service provider focused on integrating AI and data analytics into content creation and brand management. We offer a wide range of Software as a Service (“SaaS”) solutions through a cloud-based platform designed to support our clients in developing, managing, and optimizing their digital presence across global platforms, including customized graphics and posts, short videos, and editorial calendars aligned with brand goals. Additionally, we offer comprehensive software development and maintenance services, delivering custom software solutions from system design and development to deployment and post-launch maintenance.

On November 30, 2025, we completed the acquisition of Houren-Geiju Kabushikikaisha (“HGK”), a Japanese technology company specializing in digital authentication services for artworks, leveraging AI and blockchain technology to provide artwork authentication, certification, and display services for individual and corporate clients. This acquisition introduces AI image recognition and blockchain authentication technologies to the Company’s service portfolio, further bolstering our technological capabilities and optimizing our comprehensive brand management solutions for customers.

During the six months ended June 30, 2026, the Company incorporated two new wholly owned subsidiaries: FiEE Channel Limited in Hong Kong on March 5, 2026, and FiEE Singapore Pte. Ltd. in Singapore on March 26, 2026. As of June 30, 2026, FiEE Singapore Pte. Ltd. had commenced its authentication services business, while FiEE Channel Limited had not yet commenced operations.

On May 31, 2026, the Company, through its wholly owned subsidiary FiEE (HK) Limited (“FiEE HK”), completed the acquisition of a 51% equity interest (and 60% of the voting rights) in Guangzhou Yinlian Culture Co., Ltd. (“Yinlian Culture”), a limited liability company formed under the laws of the People’s Republic of China (the “PRC”). Upon the closing of the acquisition, Yinlian Culture became a consolidated subsidiary of the Company. Through the variable interest entity (“VIE”) Agreements between Yinlian Culture and Guangzhou Maltose Culture Communication Co., Ltd., a limited liability company formed under the laws of the PRC (“Maltose Culture”), Maltose Culture is consolidated as a VIE of the Company. Through this acquisition, the Company commenced its music-related business, combining Maltose Culture’s music expertise with its AI capabilities to build an advanced AI music infrastructure and strengthen its position in the global music ecosystem. See Note 4 – Business Combination and Note 5 –VIE Arrangements for further details.

FiEE, Inc. and its subsidiaries and consolidated VIE are herein collectively referred to as “FiEE,” the “Company,” “we,” “our,” “us,” or similar terms. The following table lists all of the Company’s subsidiaries and consolidated VIE:

Schedule of The Company’s subsidiaries and consolidated
Entity Name	Place of Incorporation	FiEE’s Ownership		Principal Activities
FiEE (HK) Limited	Hong Kong	100.0	%	SaaS service - Multi-Channel Network Digital Service, Software Service, Digital authentication services
Houren-Geiju Kabushikikaisha	Japan	100.0	%	Digital authentication services
MTRLC LLC	United States	100.0	%	Inactive
Minim Asia Private Limited	India	99.9	%	Inactive
FiEE Channel Limited	Hong Kong	100.0	%	Not yet commenced operations
FiEE Singapore Pte. Ltd.	Singapore	100.0	%	Digital authentication services
Guangzhou Yinlian Culture Co., Ltd.	PRC	51.0	%	Investment holding
Guangzhou Maltose Culture Communication Co., Ltd.	PRC	100% controlled by VIE arrangements		Music services

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by accounting principles generally accepted in the U.S. (“U.S. GAAP”) can be condensed or omitted. In the opinion of management, the financial statements include all normal and recurring adjustments that are considered necessary for the fair presentation of the Company’s financial position and operating results. All intercompany balances and transactions have been eliminated in consolidation. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

The results of the Company’s operations can vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be the same as those for the full year or any future periods.

Principles of Consolidation

The condensed consolidated financial statements include the accounts and operations of the Company, its wholly owned subsidiaries and its consolidated variable interest entity. All intercompany accounts and transactions have been eliminated upon consolidation.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expense during the reporting period. These judgments, estimates and assumptions made by the Company include, but are not limited to revenue recognition, expected credit losses, contract liabilities, valuation allowance for deferred tax assets, fair value of acquired assets, valuation of warrants and stock-based compensation. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results may differ from those estimates under different assumptions or conditions and the differences may be material.

Liquidity

The Company’s operations have historically been primarily financed through the issuance of its common stock, $0.01 par value per share (the “Common Stock”), and preferred stock, $0.001 par value per share (the “Preferred Stock”). Since inception, the Company has incurred significant losses and negative cash flows from operations. The Company began generating operating profit in the fourth quarter of 2025 and has continued to do so thereafter. During the six months ended June 30, 2026, the Company reported a net income of $2.5 2,462,712 million, a positive working capital of $7.1 million and an increase in cash of $2.4 million. The increase in cash was primarily attributable to $90 90,378 thousand of cash provided by operating activities, $1.9 1,917,393 million of cash provided by financing activities, and $366 366,431 thousand of cash provided by investing activities. As of June 30, 2026, the Company had an accumulated deficit of $93.2 93,158,867 million and cash on hand of $5.4 5,435,709 million. Although the Company generated net income, positive working capital, and positive operating cash flows during the six months ended June 30, 2026 following changes in management and business strategy, it has incurred significant losses in prior years and has a limited history of profitability. These conditions raise substantial doubt about the Company’s ability to continue as a going concern one year from the date the condensed consolidated financial statements were issued. The Company will continue to monitor its costs in relation to its sales and adjust its cost structure accordingly.

The Company’s condensed consolidated financial statements as of June 30, 2026 do not include any adjustments to the carrying amounts or classification of assets, liabilities, and reported expenses that may be necessary should the Company be unable to continue as a going concern. If the Company is unable to raise additional capital, it may be forced to liquidate its assets at amounts less than their carrying values, and investors could lose all or a portion of their investment.

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company’s significant accounting policies are disclosed in its Annual Report on Form 10-K for the year ended December 31, 2025. There were no material changes to the Company’s significant accounting policies during the six months ended June 30, 2026, except for the following updates resulting from transactions that occurred during the period.

Functional Currency

The functional currency of FiEE (HK) Limited is the Hong Kong dollar (“HKD”). The functional currency of HGK is the Japanese Yen (JPY). The functional currency of FiEE Singapore Pte. Ltd. is the U.S. Dollar (USD). The functional currency of Yinlian Culture and Maltose Culture is the Chinese Renminbi (RMB). Foreign currency transactions are translated into their respective functional currencies using exchange rates at the transaction dates, while monetary assets and liabilities denominated in foreign currencies are remeasured at period-end rates. The functional currency of all other entities of the Company is U.S. Dollar (“USD”), the same as the reporting currency.

Assets and liabilities of the Company denominated in functional currency other than USD are translated into USD at period-end exchange rates. Equity accounts other than earnings generated in the current period are translated into USD at the appropriate historical rates. The results of operations and the statements of cash flows denominated in functional currency other than USD are translated into USD at the average exchange rates during the reporting period. Translation adjustments arising from these are reported as cumulative translation adjustments and are shown as a separate component of accumulated other comprehensive income (loss) in the consolidated statements of changes in stockholders’ equity (deficit).

Property, Equipment and Software

Property, equipment and software primarily consisted of equipment, vehicles, land, building and internal-use software customized by a vendor, which are stated at cost, and are depreciated or amortized on a straight-line basis over their estimated useful lives. Maintenance and repairs are charged to expense as incurred. Significant improvements that substantially enhance the useful life of an asset are capitalized and depreciated. When assets are retired or disposed of, the cost together with related accumulated depreciation is removed from the balance sheet and any resulting gain or loss is reflected in the Company’s statements of operations in the period realized. Costs incurred to develop internal-use software are capitalized only during the application development stage.


Category		Estimated useful life
Internal use software		3 years
Equipment		3-5 years
Vehicles		5 years
Building		7 years
Land		Indefinite

Noncontrolling interests

The Company presents noncontrolling interests as a component of equity on its condensed consolidated balance sheets and reports the portion of its earnings or loss for noncontrolling interests as net earnings or loss attributable to noncontrolling interests in the condensed consolidated statements of operations.

Noncontrolling interests represent interests in the net assets of the Company’s consolidated subsidiary and VIE that are not attributable, directly or indirectly, to the Company. Noncontrolling interests are adjusted, as applicable, for their respective shares of net income or loss, other comprehensive income or loss, and distributions.

Income Taxes

Entities incorporated in Hong Kong are subject to Hong Kong Profits Tax at a rate of 8.25% on the first HKD 2 million of assessable profits and at 16.5% thereon. There are no withholding taxes on the payment of dividends by entities incorporated in Hong Kong to their stockholders.

Entities incorporated in Japan are subject to Japanese corporate income tax at an effective rate of approximately 37% (including national and local taxes).

Entities incorporated in Singapore are subject to Singapore corporate income tax at a flat rate of 17% on chargeable income. There are no withholding taxes upon payment of dividends by an entity incorporated in Singapore to its shareholders.

For the three and six months ended June 30, 2026, the Company recorded income tax expense of $526,897 and $663,726, respectively, primarily attributable to its Hong Kong, Singapore, and Japan subsidiaries’ taxable income. The Company recognized deferred tax assets of $26,371 as of June 30, 2026, which arose primarily from the allowance for credit losses on other receivables.

Segment reporting

The Company operates as a single operating segment. The Company’s chief operating decision maker (“CODM”), its Chief Executive Officer, reviews financial information on an aggregate basis for the purposes of allocating resources and evaluating financial performance. The measure of segment profit or loss reviewed by the CODM is operating income. The Company’s primary operations were historically in the U.S., and during the year ended December 31, 2025, primarily Hong Kong. Beginning in March 2026, following the incorporation of its subsidiary in Singapore, the Company has derived substantially all of its revenues from Hong Kong and Singapore. As of June 30, 2026, the Company’s long-lived assets are mainly located in U.S., Hong Kong and Japan.

For the three and six months ended June 30, 2026 and 2025, significant segment expenses that are regularly provided to the CODM and included in this measure consist of cost of revenues, selling, general, and administrative expenses. These expenses are consistent with the amounts presented in the consolidated statements of operations. There are no other segment items as there are no significant assets or operations not regularly reviewed by the CODM.

Recently Issued Accounting Standards

There have been no other new accounting pronouncements that have significance, or potential significance, to the Company’s financial position, results of operations and cash flows.

(3) REVENUE AND OTHER CONTRACTS WITH CUSTOMERS

The Company adopted ASC 606, Revenue from Contracts with Customers, which requires a five-step model to recognize revenue from customer contracts. The five-step model requires entities to exercise judgment when considering the terms of contracts, including: (1) identifying the contracts or agreements with a customer; (2) identifying the performance obligations in the contract or agreement; (3) determining the transaction price; (4) allocating the transaction price to the separate performance obligations; and (5) recognizing revenue as each performance obligation is satisfied. The Company applies the five-step model to contracts only when it is probable that the Company will collect the consideration to which it is entitled in exchange for the services it transfers to its clients.

Revenues from SaaS service- Multi-Channel Network (“MCN”) Digital Service

Since March 2025, the Company has expanded SaaS operations as a digital service provider, delivering full-cycle services to brand clients through legally binding agreements. The Company offers full-service account management, content production, and targeted promotion to grow followers across key platforms. Service packages are customizable via the SaaS portal. Customers may purchase value-added services with or after their purchases of basic package. The Company’s services comprise two distinct performance obligations: (1) the basic service, which represents a single performance obligation as the promises for account setup, SaaS platform access, account management, and basic digital content creation and publishing are highly interdependent and bundled together; and (2) the value-added services, which represents a performance obligation for additional digital content created and customized to meet the customer’s special request. Each performance obligation has a standalone transaction price. The Company recognizes revenues from basic services ratably over the contract term beginning on the commencement date of each contract. The revenues from value-added services are recognized at a point in time when customers approve or accept the value-added services or system automatically approves whichever is later. The Company offers MCN digital services under two payment structures: (i) prepaid arrangements, where customers are required to make an upfront payment for the services, which is non-refundable upon execution of the contract and are recorded as contract liabilities until recognized as revenue; and (ii) post-paid arrangements, where customers are granted payment terms of 90 days from the contract signing date. The 90-day credit period is offered to customers who satisfy the Company’s internal credit assessment criteria, which consider factors such as the customer’s credit profile, contract size, and historical relationship. For post-paid arrangements, the Company records accounts receivable when the services are performed and the Company has an unconditional right to consideration. Customers retain the right to terminate the contract prior to its expiration date, subject to the early termination fees, including information transfer fees and fan development fees. The Company regularly monitors the collectability of receivables arising from post-paid arrangements.

Revenues from Software Service

The Company enters into bundled arrangements that typically include the sale of on-premise software licenses, standard or customized modules, and maintenance and support (“M&S”) services. These arrangements are evaluated to determine whether the promises represent distinct performance obligations. The standard or customized modules are highly interdependent and interrelated with the software license and are therefore combined with the license as a single performance obligation, while the M&S services are capable of being distinct and are accounted for as a separate performance obligation. The M&S services are provided free of charge for a specified contract period, typically encompassing the first year of service following software delivery.

The transaction price is allocated to each performance obligation based on their relative stand-alone selling prices (“SSP”). The SSP for the combined software license and customized or standard modules, and M&S services is determined using the adjusted market assessment approach, which considers market conditions, competitive pricing, the Company’s market position, expected profit margins, and cost structure. For customized arrangements only, contracts include retention fees that represent variable consideration, as their payment is contingent upon no major defects being identified within a specified period. These retention fees are excluded from the initial transaction price. The related revenue is recognized only when it’s probable that a significant reversal will not occur. Contracts for software licensing and M&S services generally include a renewal option for M&S services; however, the renewal option to acquire additional services is neither offered free of charge nor at a discount and accordingly does not represent a material right.

The Company provides assurance-type warranties to ensure that the delivered software complies with agreed-upon specifications. These warranties do not constitute a separate performance obligation as they cannot be purchased separately and do not provide a service beyond remedying defects to bring the software to the specified standard.

The Company’s contracts typically specify a payment schedule whereby payments from the customer are linked to the signing of the contract and the achievement of specific milestones for customized arrangements, while for standard arrangements, customers are granted payment terms with an initial payment due within three months after acceptance and a final payment due within nine months after acceptance. Contracts are generally fixed price, and the Company has elected the practical expedient not to adjust the promised consideration for the effects of a significant financing component when the period between transfer of goods or services and customer payment is one year or less.

For contracts with customized modules, revenue from the combined software license and customized modules is recognized over time as the Company fulfils its performance obligations by developing and enhancing the software assets throughout the project period. The Company recognizes revenue using the output method based on the measurements of the value of the services transferred to date in relation to total performance obligation promised. For contracts with standard modules, revenue from the combined software license and standard modules is recognized at a point in time upon final delivery and customer acceptance. Revenue from maintenance and support services for both types is recognized over time on a straight-line basis over the M&S contract period. This recognition pattern reflects the continuous transfer of services to the customer, who simultaneously receives and consumes the benefits of these services throughout the service period.

Revenues from Digital Authentication Service

The Company provides digital authentication services for artworks, leveraging AI and blockchain technology. Services include microstructure analysis, AI image comparison, authenticity determination, blockchain registration, and issuance of digital authentication reports. Service packages are offered in standard and expedited editions, with fees calculated based on the dimensions of the artwork. The Company’s services comprise a single performance obligation, as the promised services are highly interdependent and integrated to deliver a conclusive authentication outcome. The transaction price is fixed at contract inception. Revenue is recognized at a point in time upon delivery of the final digital authentication report and blockchain certificate to the client, when the client obtains control of the completed authentication package. The Company offers these services under two payment structures: (i) prepaid arrangements, where customers are required to make an upfront payment for the services, which is non-refundable upon execution of the contract and is recorded as a contract liability until recognized as revenue; and (ii) post-paid arrangements, where customers are granted payment terms of 90 days from the contract signing date. For post-paid arrangements, the Company records accounts receivable when the services are performed and the Company has an unconditional right to consideration.

Revenues from others

Through the acquisition of Yinlian Culture and the Company’s VIE, Maltose Culture in May 2026, the Company commenced its music services business. As the acquisition was completed on May 31, 2026, the Company recorded only one month of revenue from music services during the three and six months ended June 30, 2026, and the amount was immaterial to the condensed consolidated financial statements.

Remaining Performance Obligations

The remaining performance obligations represent the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied as of the end of the reporting period. Unsatisfied and partially unsatisfied performance obligations consist of contract liabilities and non-cancellable backlog. Non-cancellable backlog includes service orders for which customer purchase orders have been accepted, that are scheduled or in the process of being scheduled for delivery or performance, and that are not yet invoiced.

As of June 30, 2026 and December 31, 2025, the remaining performance obligations related to MCN digital services purchased and paid for in advance by customers for basic and value-added packages amounted to $507,140 and $1,497,721, respectively. These amounts are expected to be recognized as revenue within the next 12 months.

The remaining performance obligations for software services as of June 30, 2026 and December 31, 2025, were $465,354 and $521,082, respectively, excluding retention fees. These amounts relate to unsatisfied performance obligations for the combined software license and customized modules, which are expected to be recognized as revenue upon the completion and customer acceptance of specific milestones, predominantly within the next three months.

As of June 30, 2026 and December 31, 2025, there were no remaining performance obligations related to digital authentication services.

Contract Costs

The Company recognizes the incremental costs of obtaining a contract with a customer if the Company expects the benefit of those costs to be longer than one year. The Company has determined that certain sales commissions meet the requirements to be capitalized, and the Company amortizes these costs on a consistent basis with the pattern of transfer of the goods and services in the contract. Total capitalized costs to obtain a contract were immaterial during the periods presented and are included in other current and long-term assets on the Company’s condensed consolidated balance sheets if any.

The Company applies a practical expedient to expense costs as incurred for costs to obtain a contract when the amortization period is one year or less.

Contract Balances

The Company records accounts receivable when it has an unconditional right to the consideration. The accounts receivable balances were $5,134,459 and $2,110,715 as of June 30, 2026 and December 31, 2025, respectively. Subsequent to June 30, 2026 and through the date of this filing, the Company collected approximately $2,282,433 of the accounts receivable balance outstanding as of June 30, 2026. Contract liabilities are recorded when customers remit payment prior to revenue recognition, representing the Company’s obligation to transfer services in the future. Liabilities arise upon customer order placement. The contract liabilities balances were $343,015 and $1,497,721 as of June 30, 2026 and December 31, 2025, respectively.

Disaggregation of Revenue

The following table sets forth our revenues by product:

Schedule of revenues
	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
SaaS – MCN digital services	$	1,534,955	$	44,993	$	2,628,291	$	45,118
Software services		1,108,140		-		1,698,099		-
Digital authentication services		2,170,956		-		2,609,650		-
Others		11,289		-		11,289		-
	$	4,825,340	$	44,993	$	6,947,329	$	45,118

The following table sets forth our revenues by the timing of revenue recognition:

Schedule of revenue recognized
	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Recognized at a point in time		4,332,372		-		5,808,845		-
Recognized over time		492,968		44,993		1,138,484		45,118
	$	4,825,340	$	44,993	$	6,947,329	$	45,118

(4) BUSINESS COMBINATION

On March 23, 2026, FiEE HK entered into an Investment Agreement with Yinlian Culture, Maltose Culture, Guangzhou Qingniao Culture Co., Ltd., Shenzhen Yaojin Creative Media Co., Ltd., Cai Yuanyao, Zhang Dingcheng, and Zhang Rong (the “Investment Agreement”), pursuant to which (i) FiEE HK agreed to acquire a 51% equity interest (and 60% of the voting rights) in Yinlian Culture for an aggregate purchase price of $51,000. Yinlian Culture was incorporated on February 11, 2026 to facilitate the investment in Maltose Culture. In connection with the signing of the Investment Agreement, a Shareholder Agreement was also entered into on March 23, 2026 (the “Shareholder Agreement” and, together with the Investment Agreement, the “VIE Agreements”), governing the rights and obligations of the shareholders of Yinlian Culture, including, but not limited to, board composition and governance, voting rights, dividend rights and distribution thresholds, liquidation preference, and transfer restrictions. The acquisition closed on May 31, 2026. Through the VIE Agreements between Yinlian Culture and Maltose Culture, the Company obtained control over Maltose Culture, which is consolidated as a VIE of the Company.

In accordance with ASC 810-10-40-6, the Investment Agreement, the Shareholder Agreement, and the VIE Agreements were entered into in contemplation of one another and were essentially a single transaction designed to achieve an overall commercial effect. Accordingly, these agreements have been combined and accounted for as a single transaction for financial reporting purposes.

The Company evaluated the transaction in accordance with the guidance in ASC 805 and determined that the acquired set met the definition of a business. The acquired set includes both inputs and a substantive process that together significantly contribute to the ability to create outputs, including two key employees forming an organized workforce and the ability to continue revenue-generating operations without significant disruption. Accordingly, the transaction was accounted for as a business combination.

The aggregate purchase price for the 51% equity interest was $51,000 in cash, which represents a capital contribution to be made by FiEE HK to Yinlian Culture. As of June 30, 2026, this amount remained unpaid.

On May 31, 2026, FiEE HK and Yinlian Culture entered into a Supplemental Agreement to the Investment Agreement (the “Supplemental Agreement”), filed as Exhibit 10.1 to this Quarterly Report on Form 10-Q. Under the Supplemental Agreement, (i) FiEE HK waived, solely as a condition precedent to the first closing, the requirement that Yinlian Culture open a foreign exchange capital account capable of receiving the capital increase payment, provided that Yinlian Culture remains obligated to open such account following the first closing; (ii) the parties agreed that the first closing under the Investment Agreement occurs on the date the conditions precedent to the first closing are satisfied or waived, rather than within five business days thereafter, and that the signing date of the Supplemental Agreement is deemed the First Closing Date; and (iii) the parties agreed that FiEE HK’s payment of the RMB 354,807 (approximately $51,000) investment amount is due within seven business days from the date Yinlian Culture opens its foreign exchange capital account, rather than within seven business days following the first closing as originally provided.

Fair Value of Identifiable Assets Acquired and Liabilities Assumed

The purchase consideration was allocated to the identifiable assets acquired and liabilities assumed based on their estimated acquisition-date fair values. The noncontrolling interests were also measured at their acquisition date fair value, which consist of (i) the 49% equity interest in Yinlian Culture not acquired by the Company and (ii) the interest in Maltose Culture’s acquisition-date net assets attributable to its registered equity shareholders. The allocation is as follows:

Schedule of Fair Value of Identifiable Assets Acquired and Liabilities Assumed
Total investment consideration	$	51,000

Cash	$	876,595
Accounts receivable		3,540
Prepaid expenses and other current assets		207,963
Equipment		3,499
Stock-subscription receivable		51,000
Contract liabilities		(11,236	)
Convertible note payable		(1,113,446	)
Accrued expenses and other current liabilities		(36,421	)
Total identifiable net assets acquired	$	(18,506	)
Less: Noncontrolling interests		(44,516	)
Net identifiable assets acquired attributable to the Company		26,010
Goodwill	$	24,990

The fair value of the identifiable net assets was determined using an asset approach, which estimates fair value based on the replacement cost or reproduction cost of the assets, adjusted for physical deterioration, functional obsolescence, and economic obsolescence. The fair values of financial assets and liabilities, including cash and cash equivalents, other current assets, and accrued liabilities, approximated their respective carrying amounts at the acquisition date due to their short-term nature.

Convertible Note

Under the same Investment Agreement, FiEE HK also agreed to provide, or cause an entity designated by FiEE HK to provide, a zero-interest convertible loan to Yinlian Culture in the principal amount of up to RMB 20,000,000 (approximately $2.9 million). The convertible loan is to be funded in three tranches and provides FiEE HK with the option, exercisable at any time by written notice, to either (i) require Yinlian Culture to repay all or any portion of the convertible loan in cash, or (ii) convert all or any portion of the convertible loan into additional equity in Yinlian Culture, which, upon full conversion, would result in FiEE HK and its designated entities collectively holding 60% of the total equity interests in Yinlian Culture. This convertible loan is accounted for as a separate financing arrangement and does not form part of the equity consideration in accordance with ASC 805-10-55-18. As of June 30, 2026, the Company had disbursed approximately RMB 7.6 million (approximately $1.1 million) of the convertible loan. Upon consolidation, the intercompany loan receivable and payable were eliminated in their entirety, and no liability or receivable related to this convertible loan is recognized in the condensed consolidated balance sheets. The convertible loan effectively represents a cash transfer from FiEE, Inc. (the parent) to Yinlian Culture (the acquired subsidiary), of which $51,000 can be designated as capital contribution.

(5) VIE ARRANGEMENTS

VIE Agreements

Maltose Culture is an AI-empowered music ecosystem that integrates content creation, intelligent platform distribution, and next-generation home entertainment. At or immediately prior to the closing of the Equity Investment, Maltose Culture was owned 40% by Zhang Dingcheng and 60% by Yang Kai, the spouse of Cao Yu, who serves as Chief Financial Officer and a member of the board of directors of the Company.

In order to establish effective control over, and the right to receive the economic benefits of, Maltose Culture, pursuant to the requirements of PRC law, Yinlian Culture entered into the following agreements (collectively, the “VIE Agreements”) with Maltose Culture, Yang Kai, and Zhang Dingcheng. The VIE Agreements were effective on March 23, 2026, and the related business registration changes were completed on March 26, 2026.

Exclusive Purchase Option Agreement

Pursuant to the Exclusive Purchase Option Agreement, dated as of March 23, 2026, in connection with the signing of the Investment Agreement, each of Yang Kai and Zhang Dingcheng granted to Yinlian Culture an exclusive and irrevocable option to acquire 100% of the equity interests of Maltose Culture at the lowest price permitted by applicable PRC law, together with the right to acquire all of the assets of Maltose Culture. The option may be exercised by Yinlian Culture at any time, subject to applicable PRC regulatory requirements and approvals.

Irrevocable Proxy Agreement

Pursuant to the Irrevocable Proxy Agreement, dated as of March 23, 2026, in connection with the signing of the Investment Agreement, each of Yang Kai and Zhang Dingcheng irrevocably appointed Yinlian Culture as their exclusive proxy to exercise all shareholder voting rights with respect to their respective equity interests in Maltose Culture, including without limitation all voting rights, the right to appoint directors and senior management, and the right to transfer, pledge, or otherwise dispose of their equity interests. The proxy is irrevocable and remains effective for the entire operating term of Maltose Culture, unless earlier terminated by Yinlian Culture.

Business Cooperation Agreement

Pursuant to the Business Cooperation Agreement, dated as of March 23, 2026, in connection with the signing of the Investment Agreement, Yinlian Culture agreed to provide exclusive consulting and technical services to Maltose Culture and to license certain intellectual property to Maltose Culture on a non-exclusive, non-transferable basis, in exchange for service fees payable by Maltose Culture to Yinlian Culture. The service fees under the agreement are structured to equal substantially all of the net income of Maltose Culture, thereby transferring the economic benefits of Maltose Culture to Yinlian Culture.

Equity Pledge Agreement

Pursuant to the Equity Pledge Agreement, dated as of March 23, 2026, in connection with the signing of the Investment Agreement, each of Yang Kai and Zhang Dingcheng pledged all of their respective equity interests in Maltose Culture to Yinlian Culture as security for the performance of all of their obligations and Maltose Culture’s obligations under the VIE Agreements.

Spousal Consent

In connection with the signing of the Investment Agreement, Cao Yu executed a Spousal Consent, dated as of March 23, 2026, acknowledging and consenting to Yang Kai’s entry into and performance of the VIE Agreements, and confirming that she has no claim to the equity interests of Maltose Culture held by Yang Kai.

Based on the terms of the VIE Agreements, the Company has determined that it is the primary beneficiary of Maltose Culture for the following reasons: (i) through the Irrevocable Proxy Agreement, Yinlian Culture has the power to direct the voting and operational activities of Maltose Culture, including the appointment of directors and senior management; (ii) through the Exclusive Purchase Option Agreement, Yinlian Culture has the right to acquire 100% of the equity interests of Maltose Culture at any time; (iii) through the Business Cooperation Agreement, Yinlian Culture provides consulting and technical services that are essential to Maltose Culture’s operations; and (iv) through the Equity Pledge Agreement, Yinlian Culture has security interest over the equity interests of Maltose Culture. Accordingly, the Company has both the power to direct the activities that most significantly impact Maltose Culture’s economic performance and the obligation to absorb losses or the right to receive benefits that could be significant to Maltose Culture. Therefore, the Company is the primary beneficiary of Maltose Culture and consolidates Maltose Culture as a VIE.

Assets and Liabilities of VIE

The Company’s condensed consolidated financial statements include the assets, liabilities and results of operations of the VIE for which the Company is the primary beneficiary. The noncontrolling interest holder’s interest is reflected in “Net income (loss) attributable to noncontrolling interests” in the condensed consolidated statements of operations and “Noncontrolling interests” in the condensed consolidated balance sheets. See Note 4 – Business Combination for details of noncontrolling interests.

The creditors of the consolidated VIE do not have recourse to the Company other than to the assets of the consolidated VIE. The following table summarizes the carrying amounts of the Company’s VIE assets and liabilities, after elimination of any intercompany transactions and balances, included in the Company’s condensed consolidated balance sheets at June 30, 2026:

Schedule of Variable interest entities
	June 30, 2026
Assets
Cash	$	870,544
Prepaid expenses		162,433
Total Current Assets		1,032,977
Equipment, net		3,407
Total Assets	$	1,036,384

Liabilities
Accrued expenses and other current liabilities		36,450
Total Liabilities	$	36,450

(6) BALANCE SHEET COMPONENTS

Property, equipment and software, net

Property, equipment and software, net consists of the following:

Schedule of equipment
	As of June 30, 2026			As of December 31, 2025
Internal use software	$	269,023		$	271,088
Equipment		11,642			8,137
Vehicles		132,832			133,852
Building		144,175			-
Land		413,776			-
Total property, equipment and software		971,448			413,077
Accumulated depreciation and amortization		(110,966	)		(46,638	)
Total property, equipment and software, net	$	860,482		$	366,439

For the three months ended June 30, 2026 and 2025, depreciation and amortization was $35 thousand and $22 thousand, respectively. Depreciation and amortization expense was $64 thousand and $72 thousand for the six months ended June 30, 2026 and 2025, respectively.

Intangible assets

As part of the asset acquisitions completed on June 30, 2025 and November 30, 2025, the amount allocated to the intangible assets acquired was approximately $1.3 million and $2.5 million, respectively, primarily consisting of acquired proprietary software, which represent a group of copyrights, associated patents and software source codes that are expected to provide future economic benefits to the Company. The allocation of the purchase price was performed on a relative fair value basis in accordance with ASC 805-50. The acquired group of proprietary software is being amortized over three 3 years, its estimated useful life.

Intangible assets consisted of the following at June 30, 2026 and December 31, 2025:

Schedule of intangible assets
	As of June 30, 2026							As of December 31, 2025
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Acquired group of proprietary software	$	3,801,871	$	(913,128	)	$	2,888,743	$	3,811,598	$	(281,763	)	$	3,529,835
	$	3,801,871	$	(913,128	)	$	2,888,743	$	3,811,598	$	(281,763	)	$	3,529,835

Amortization expense was $316 thousand and $0 thousand in the three months ended June 30, 2026 and 2025, respectively. Amortization expense was $631 thousand and $0 thousand in the six months ended June 30, 2026 and 2025, respectively.

Estimated amortization expenses for the future years are as follows:

Schedule of Amortization
Years ending December 31,	Amortization
2026	$	625,760
2027		1,266,852
2028		996,131
Total	$	2,888,743

Other receivables, net

Other receivables, net as of June 30, 2026 and December 31, 2025 included gross amounts of $70,012 and $85,134, respectively. During the six months ended June 30, 2026, the Company recorded a full allowance of $70,012 against the outstanding balance due from a third party. In addition, other receivables, net included $1,132,558 as of December 31, 2025, representing funds temporarily held in a settlement platform and pending transfer to the Company’s bank account, and no such funds were held as of June 30, 2026.

Prepaid and other current assets

Prepaid and other current assets consist of the following:

Schedule of inventories
	June 30, 2026		December 31, 2025
Insurance fees	$	74,249	$	53,015
Cloud hosting fee		95,980		78,414
Prepayment for property purchase		-		44,613
Nasdaq annual listing fee		28,000		-
Prepaid music costs		161,587		-
Other		14,133		23,267
Total prepaid and other current assets	$	373,949	$	199,309

Other assets

Other assets consist of the following:

Schedule of other assets
	June 30, 2026		December 31, 2025
Insurance fees	$	58,479	$	66,483
Deposits		15,081		15,197
Deferred offering costs		268,254		150,000
Total other assets	$	341,814	$	231,680

Accrued expenses and other current liabilities

Accrued expenses and other current liabilities consist of the following:

Schedule of accrued expenses
	June 30, 2026		December 31, 2025
Payroll & related benefits	$	422,573	$	305,789
Professional fees		631,902		271,501
Sales allowances		-		26,905
Sales and use tax		81,708		81,708
Other payable to Yixuntong⁽¹⁾		115,773		435,957
Project investment from partners