Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This report contains certain forward-looking statements that involve risks and uncertainties. We use words such as "anticipate," "believe," "expect," "future," "intend," "plan," and similar expressions to identify forward-looking statements. These statements are only predictions. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this report. Our actual results could differ materially from those anticipated in these forward-looking statements.

Business Overview

Currently our businesses segments are divided into: (i) food ordering & delivery business in Macau, primarily through our 98.75% owned subsidiary, Macao E-Media Development Company Limited, a Macau Company ("MED"); and (ii) sales of graphite products, a business carried out by our wholly-owned subsidiary, Graphite Energy, Inc, ("GEI").

In this MD&A section, we will primarily discuss the business of MED and GEI, and are consolidated with our consolidated financial statements and summarized in the notes to our consolidated financial statements.

As a leading mobile platform of ordering and delivery services for restaurants or other merchants, we operate in Macau, and our businesses are built on our platform, Aomi App (the "Platform"). The Platform connects restaurants/merchants (collectively referred to as "Merchants") with consumers and delivery riders. The Platform is created to serve the needs of these three key constituencies and to become more intelligent and efficient with every customer order. As we grow, we enjoy the benefits of scale and enjoy our competitive advantages, and at the same time we deliver substantial benefits to everyone we serve.

New Subsidiaries

In September 2025, the Company established AOMI Corporation in Cayman Islands, holding 100% equity interest, it has not carried out any businesses.

In September 2025, the Company through its subsidiary, Macao E-Media Development Company Limited established a 50% owned subsidiary, Profit One Investment Limited in Hong Kong, and it has not carried out any businesses.

Results of Operations

For the Nine Months Ended September 30, 2025 Compared to the Nine Months Ended September 30, 2024

The following table shows operating results for the nine months ended September 30, 2025 and 2024:

	Nine Months Ended September 30,
		2025			2024	$ Change	% Change
Revenues	$	65,387,265		$	50,560,247	14,827,018	29%
Cost of revenue		(44,551,365)			(34,011,793)	10,539,572	31%
Gross Profit		20,835,900			16,548,454	4,287,446	26%
Operating expense		(20,369,119)			(14,052,724)	6,316,395	45%
Operating profit		466,781			2,495,730	(2,028,949)	(81%)
Other income/(expense), net		100,392			(61,715)	162,107	262%
Net income before taxes	$	567,173		$	2,434,015	(1,866,842)	(77%)
Income taxes		(5,180)			(766)	4,414	576%
Net income	$	561,993		$	2,433,249	(1,871,256)	(77%)

Sales

For the nine months ended September 30, 2025, the Company generated sales of $65,387,265 compared to $50,560,247 for the same period of 2024. The increment in sales was mainly contributed from the subsidiary, Graphite Energy Inc.

Costs of Goods Sold

For the nine months ended September 30, 2025, the Company generated cost of good sold for $44,551,365 compared to $34,011,793 for the same period of 2024. Currently the Company is attributable to delivery rider costs and purchase of graphite inventory.

Operating expenses

For the nine months ended September 30, 2025 and 2024, the Company's selling, general and administrative expenses were $20,369,119 compared to $14,052,724 for the same period of the previous year. The increase is primarily the result of additional expense from subsidiary, Graphite Energy, Inc.

Other income/(expense), net

For the nine months ended September 30, 2025, the Company had $100,392 of interest expense relating to bank loan interest payable and gain on disposal of joint venture, as compared to $61,715 of interest expense for the same period last year.

Net income

For the nine months ended September 30, 2025, the Company had a net income of $561,993, or $0.004 per share, as compared to a net income of $2,433,249, or $0.011 per share, for the same period of 2024.

Liquidity and Capital Resources

As of September 30, 2025, the Company had cash and cash equivalents of $5,795,661 and a working capital deficit of $6,815,843. For the nine months ended September 30, 2025, the Company provided net cash of $2,162,568 from its operating activities primarily from our net income of $561,993, adjustednet with depreciation and amortization of $185,397, a loss of disposal of equipment of $2,809, an impairment loss on loan receivables of $247,055, an increase in account receivables of $4,714,029, an increase in inventories of $91,396, a decrease in prepaid expenses of $497,224, a decrease in deposits of $15,897, an increase in other receivables of $138,157, a decrease in accrued expense of $53,815, an increase in deposit received of $1,481,987, an increase in other payables of $7,925,078, a decrease in account payable of $3,755,968. By comparison, net cash provided by operating activities was $3,913,296 for the same period of 2024.

During the nine months ended September 30, 2025, the Company used net cash of $422,175 from its investing activities which comprised with purchase of equipment of $132,882, proceeds from disposal of a joint venture of $111,739, repayment from related companies of $69,501 and loan to joint venture of $247,055. By comparison, net cash used by investing activities was $383,496 for the same period of 2024.

During the nine months ended September 30, 2025, the Company's financing activities used net cash of $832,425, which was comprised of repayment of bank loans of $6,794,708 and bank borrowings of $5,962,283. By comparison, net cash provided by financing activities was $91,846 for the same period of 2024.

Until we are able to generate sufficient liquidity from operations, we intend to continue to fund operations from cash on-hand, and through private debt or equity placements of our securities. Our continued operations will depend on whether we are able to generate sufficient liquidity from operations and/or raise additional capital through such sources as equity and debt financings, collaborative and licensing agreements and strategic alliances. There can be no assurance that additional capital will become available or, if it does, that it will become available on acceptable terms, or that any additional capital we may obtain will be sufficient to meet our long-term needs. We currently have no commitments for any additional capital, both internally and externally.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

Contractual Obligations

The Company leases approximately 250 square feet of space in Jersey City, New Jersey under a month-by-month basis at rent of $650 per month. In addition, the Company entered into a two-year lease for office space of approximately 770 square feet in Hong Kong, expiring January 2024 with monthly payments of approximately $4,404 per month. Besides, the

acquisition of Macau and Zhuhai subsidiaries, it results on addition lease for office and warehouse approximately 39,800 square feet in Macau and Zhuhai, expiring within year 2023 and 2024 with monthly payment of approximately $28,351 per month. In 2023, MED's subsidiary, Citysearch Technology (HK) Company Limited, entered into a two-year lease for a cafe shop space of approximately 708 square feet in Hong Kong, expiring August 2025 with monthly payment of approximately $5,005 per month. In 2024, Citysearch entered into a two-year lease for another cafe shop space of approximately 99 square feet in Hong Kong, expiring June 2026 with monthly payment of approximately $2,571 per month. Citysearch establish a new office in Hong Kong with a two-year lease and expiring July 2026 with monthly payment of approximately $5,539 per month. In September 2024, Citysearch entered into a three-year lease for a restaurant in Hong Kong, expiring September 2027 with monthly payment of approximately $16,067 per month. In 2024, Citysearch's subsidiary, Celebrity Chef Catering Management Limited, entered into a lease for a restaurant in Hong Kong, expiring October 2025 with monthly payment of approximately $15,424 per month.

Critical Accounting Policies

In preparing the consolidated financial statements, we follow accounting principles generally accepted in the United States ("GAAP"). GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, sales and expenses, and related disclosure of contingent assets and liabilities. We re-evaluate our estimates on an on-going basis. Our estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions and conditions.

We believe our use of estimates and underlying accounting assumptions adhere to GAAP and are consistently applied. Our significant accounting policies are summarized in Note 1 to our consolidated financial statements.