Annual Report for Fiscal Year Ending 06-30, 2026 (Form 10-K)

Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes included elsewhere in this Report. This discussion and analysis and other parts of this Report contain forward-looking statements based upon current beliefs, plans and expectations that involve risks, uncertainties and assumptions. Our actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements as a result of several factors, including those set forth under "Risk Factors" and elsewhere in this Report. You should carefully read the "Risk Factors" section of this Report to gain an understanding of the important factors that could cause actual results to differ materially from our forward-looking statements.

Overview

We are a holding company incorporated in the State of Nevada. During the fiscal year ended June 30, 2026, the Company initiated a strategic corporate restructuring designed to transition its business focus from historical biotechnology activities to the artificial intelligence ("AI") and financial algorithmic software sectors. Concurrently, following a reconfiguration of our Board of Directors and executive leadership, including the appointment of Mr. Xiaomin Chen as our Chief Executive Officer and Chairman of the Board, the Company executed a series of definitive agreements to orderly divest its medical and biotechnology operations. This structured repositioning allows the Company to realign its management expertise and capital resources toward scalability within the evolving AI technology markets.

Historically, we operated through our subsidiaries, Advanced Biomed Inc. (Taiwan) and Advanced Biomed HK Limited (along with its Shanghai subsidiary, Shanghai Sglcell Biotech Co., Ltd.), which were dedicated to the research, design, and regulatory development of our microfluidic technology platform and cancer screening devices. In connection with our updated strategic directive to mitigate capital-intensive clinical development risks, the Company systematically phased out its biotechnology segment through the following transactions:

●

On December 23, 2025, the Company entered into a sale and purchase agreement to sell 100% of its equity interest in Advanced Biomed HK Limited (and its subsidiary) to a third party for a total cash consideration of $23,000.

●

On June 30, 2026, the Company entered into a sale and purchase agreement to sell 100% of its equity interest in Advanced Biomed Inc. (Taiwan) to a third party for an aggregate cash consideration of $490,000.

As a result of these divestitures, the Company has concluded all biological research and medical development in biotechnology sections have been phased out. Accordingly, the historical results of operations, assets, and liabilities associated with the biotechnology segment have been reclassified as discontinued operations for all periods presented in our consolidated financial statements in accordance with US GAAP.

To establish a sustainable and near-term revenue-generating platform, the Company executed a definitive agreement in April 2026 to acquire Acellent Technologies (Hong Kong) Co. Limited ("Acellent"), a specialized entity focusing on artificial intelligence large-language models ("LLMs") and financial algorithmic software-related applications. Following the closing of this acquisition, the Company integrated these technologies as its primary operating core services.

Our current business efforts are directed toward the development, integration, and commercialization of data-driven financial modeling solutions, predictive analytics, and enterprise-level AI software-as-a-service (SaaS) applications designed for global financial institutions.

The Company is currently in the integration and initial monetization phase of Acellent's AI applications. Due to the significant, non-recurring corporate expenses incurred from our structural transitions, legal and professional fees associated with our corporate restructuring, and the compliance costs related to our 1-for-20 reverse stock split in February 2026, our historical financial data may not be fully indicative of our future operating results or financial trajectory.

To enhance period-over-period comparability, the historical financial performance of our divested biotechnology operations has been segregated and presented as discontinued operations. Consequently, the subsequent discussion and analysis focuses primarily on our continuing operations, which for the fiscal year ended June 30, 2026, predominantly reflects our corporate restructuring activities, equity transitions, and the results for the period from April through June 2026 of our newly acquired AI technology business. Management believes this presentation provides the most meaningful, adjusted basis for evaluating our baseline corporate financial performance as we transition into this new sector, although these partial-period results are not representative of a full year of AI operations.

Management anticipates that our future research and development (R&D) expenses and selling, general, and administrative (SG&A) expenses will predictably shift from biomedical laboratory upkeep to cloud computing infrastructure, proprietary AI data acquisition, and technical engineering compensation. The Company continues to actively monitor and manage its working capital requirements to sufficiently support its AI commercialization roadmap over the next 12 months.

Results of Operations

Following the systematic divestitures of our historical biomedical subsidiaries, including Advanced Biomed HK Limited in December 2025 and Advanced Biomed Inc. (Taiwan) on June 30, 2026, the historical operating financial performance of our biotechnology segment has been reclassified as discontinued operations. Concurrently, following the closing of our strategic acquisition of Acellent in April 2026, the Company transitioned its primary operational resources toward the artificial intelligence and financial algorithmic software-related applications sectors.

Accordingly, for the fiscal years ended June 30, 2026 and 2025, the subsequent discussion and analysis focus exclusively on the operating results of our continuing corporate activities and the initial partial-period integration of our newly established AI business segment, providing a more meaningful basis for period-over-period comparisons.

Comparison of Results of Operations for the Fiscal Years Ended June 30, 2026 and 2025

		Years Ended June 30,								Increase (Decrease)
		2026				2025				Amount				%
		US$				US$				US$
Revenue			127,637				-				127,637				NM
Operating expenses:
Stock-based compensation			1,734,009				-				1,734,009				NM
General and administrative expenses			4,627,170				1,086,470				3,540,700				326	%
Total operating expenses			6,361,179				1,086,470				5,274,709				485	%
Other income (expense):
Interest expense			(7,014	)			-				(7,014	)			NM
Other expense, net			(21,925	)			-				(21,925	)			NM
Total other expenses, net			(28,939	)			-				(28,939	)			NM
Loss before income taxes			(6,262,481	)			(1,086,470	)			(5,176,011	)			476	%
Income tax benefit			1,205				-				1,205				NM
Net loss from continuing operations			(6,261,276	)			(1,086,470	)			(5,174,806	)			476	%
Net loss from discontinued operations, net of tax			(1,077,064	)			(2,172,499	)			1,095,435				(50	)%
Gain on disposal of subsidiaries, net of tax			14,015,417				-				14,015,417				NM
Net income (loss) from discontinued operations, net of tax			12,938,353				(2,172,499	)			15,110,852				(696	)%
Net income (loss) for the year			6,677,077				(3,258,969	)			9,936,046				(305	)%

Revenue

Revenue was $127,637 for the fiscal year ended June 30, 2026, compared to $0 for the fiscal year ended June 30, 2025. Following our strategic transition into artificial intelligence and financial algorithmic software-related applications sectors, the Company successfully commenced commercial operations and unlocked its initial revenue pipeline during the current year.

This period's revenue was derived from agency services. This initial engagement serves as a critical proof-of-concept for our post-acquisition infrastructure, demonstrating the immediate revenue-generating capabilities of our newly acquired assets. Prior to this business pivot, the Company generated no revenue from continuing operations due to the reclassification of its historical biotechnology segment as discontinued operations.

Stock-based compensation

Stock-based compensation expense was $1,734,009 for the year ended June 30, 2026, compared with none for the year ended June 30, 2025. The expense related to common stock issued as a stock-based payment to seller for accepting as CEO and director of the Company in connection with the Acellent acquisition transaction. This was a noncash expense and contributed to the increase in total operating expenses and operating loss in fiscal 2026. See Note 8 to the consolidated financial statements for further information.

General and Administrative Expenses

Our general and administrative ("G&A") expenses increased by $3,540,700, or approximately 326%, to $4,627,170 for the year ended June 30, 2026, from $1,086,470 for the year ended June 30, 2025. The increase was primarily attributable to a $2,918,909 provision for expected credit losses and a $500,000 noncash commitment fee, partially offset by decrease in professional fees.

The following table presents a summary of our general and administrative expenses for the years ended June 30, 2026 and 2025:

		Years Ended June 30,								Increase (Decrease)
		2026				2025				Amount				%
		US$				US$				US$
Professional fees			760,688				1,003,489				(242,801	)			(24	)%
Staff costs and benefits			306,538				81,743				224,795				275	%
Board compensation			42,000				-				42,000				NM
Provision for expected credit losses			2,918,909				-				2,918,909				NM
Non-cash commitment fee			500,000				-				500,000				NM
Listing and regulatory fees			92,500				-				92,500				NM
Office and other expenses			6,535				1,238				5,297				428	%
Total			4,627,170				1,086,470				3,540,700				326	%

General and administrative expenses increased by $3,540,700, or approximately 326%, to $4,627,170 for the year ended June 30, 2026, from $1,086,470 in the prior year. The increase was primarily attributable to a $2,918,909 provision for expected credit losses on receivables and a $500,000 noncash commitment fee paid in common stock. Staff costs and benefits increased by $224,795 to $306,538, reflecting, in part, the inclusion of Acellent's expenses in the current year after acquisition as well as bonus was paid to management team. Board compensation was $42,000, and listing and regulatory fees were $92,500, compared with none in the prior year. These increases were partially offset by a $242,801 decrease in professional fees, from $1,003,489 to $760,688.

Total Other Expenses, Net

Total other expenses, net was $28,939 for the year ended June 30, 2026, compared with $0 for the year ended June 30, 2025. The current-year amount consisted primarily of $7,014 of interest expense and $21,925 of other expense, net.

Net Loss from Continuing Operations

Loss from continuing operations was $6,261,276 for the year ended June 30, 2026, compared with a loss of $1,086,470 for the year ended June 30, 2025, an increase of $5,174,806. The increase was primarily attributable to $4,627,170 of general and administrative expenses and $1,734,009 of stock-based compensation and partially offset by $127,637 of revenue from continuing operations. The Company recognized an income tax benefit of $1,205 in fiscal 2026, compared with no income tax expense or benefit in fiscal 2025.

Net Income (Loss) from Discontinued Operations, net of tax

Net income from discontinued operations, net of tax, was $12,938,353 for the year ended June 30, 2026, compared with net loss of $2,172,499 for the year ended June 30, 2025. Results improved by $15,110,852, from a net loss to net income.

Research and development expenses of the discontinued operations decreased to $869,823 from $909,771, while their general and administrative expenses decreased to $443,126 from $1,024,795. The improvement was primarily attributable to the $14,015,417 gain on disposal of subsidiaries. The discontinued operations comprise the historical biotechnology businesses disposed of during fiscal 2026. See Note 5 to the consolidated financial statements for more details.

Net Income (Loss) for the Year

Net income was $6,677,077 for the year ended June 30, 2026, compared with a net loss of $3,258,969 for the year ended June 30, 2025, an improvement of $9,936,046. The improvement was primarily attributable to the $14,015,417 gain on disposal of subsidiaries recognized in fiscal 2026. This gain was partially offset by higher operating expenses from continuing operations.

Liquidity and Capital Resources

Our principal liquidity requirements relate to personnel, technology infrastructure, software development, professional services and other costs of our continuing operations. Following the dispositions of our historical biotechnology businesses during fiscal 2026, we no longer fund those businesses' laboratory operations and clinical development activities.

As of June 30, 2026, we had cash of $385,535, current assets of $13,749,512 and current liabilities of $1,473,989. Net cash used in operating activities from continuing operations was $961,341 for the year. Current assets included $12,959,826 net due from former subsidiaries and a $402,151 net receivable from the buyer of our former Taiwan subsidiary. The $490,000 sale consideration remained receivable at year end and had not been received in cash. The timing and amount of collections on these receivables are significant to our liquidity.

Management intends to fund operations through available cash, cash generated from operations and, if necessary, additional financing from investors and financial institutions. Based on its current operating plans and expected cash requirements, management believes the Company has sufficient resources to meet its obligations for at least twelve months from the date the consolidated financial statements are issued. This assessment depends in part on expected collections and operating cash flows, which may differ from current expectations. Additional financing may not be available on acceptable terms, or at all.

Cash Flows

The following table and discussion summarize our primary cash flow movements for the fiscal years ended June 30, 2026 and 2025:

Cash Flow Summary		Years Ended June 30,
(in U.S. dollars)		2026				2025
Net cash used in operating activities - continuing operations			(961,341	)			(2,308,369	)
Net cash used in operating activities - discontinued operations			(985,602	)			(3,516,686	)
Net cash used in investing activities - continuing operations			(2,581,850	)			-
Net cash provided by (used in) investing activities - discontinued operations			75,763				(31,650	)
Net cash provided by financing activities - continuing operations			1,326,215				5,768,775
Net cash provided by financing activities - discontinued operations			641,757				165,526
Effect of exchange rate changes on cash - continuing operations			(10,479	)			-
Effect of exchange rate changes on cash - discontinued operations			(22,843	)			218,346
Net (decrease) increase in cash			(2,518,380	)			295,942

Operating Activities

Net cash used in operating activities from continuing operations was $961,341 for the year ended June 30, 2026, compared with $2,308,369 for the year ended June 30, 2025, a decrease in cash used of $1,347,028.

Loss from continuing operations of $6,261,276 in fiscal 2026 and the reconciliation to operating cash flows reflected $1,734,009 of stock-based compensation, provision for expected credit losses on receivables of $2,918,909, a $500,000 noncash commitment fee, changes in prepaid expenses and other current assets of $579,866, and a $431,644 decrease in accounts payable, accruals and other current liabilities.

Net cash used in operating activities from discontinued operations was $985,602 in fiscal 2026, compared with $3,516,686 in fiscal 2025, a decrease in cash used of $2,531,084.

Investing Activities

Net cash used in investing activities from continuing operations was $2,581,850 in fiscal 2026, compared with nil in fiscal 2025 arising from net cash outflow for disposal of subsidiaries.

Net cash provided by investing activities from discontinued operations was $75,763 for the year ended June 30, 2026, compared with net cash used of $31,650 for the year ended June 30, 2025.

Financing Activities

Net cash provided by financing activities was $1,967,972 for the year ended June 30, 2026, comprising $1,326,215 from continuing operations and $641,757 from discontinued operations. Cash provided by financing activities from continuing operations included $248,000 of proceeds from the issuance of common stock and $1,078,215 of proceeds from related parties.

Net cash provided by financing activities was $5,934,301 in fiscal 2025, comprising $5,768,775 from continuing operations and $165,526 from discontinued operations. The fiscal 2026 issuance of $500,000 of common stock for commitment fees and $1,734,009 of common stock as a share-based payment in connection with the Acellent transaction were noncash transactions.

On July 14, 2026, the Company delivered notice to terminate its equity line of credit arrangement. The termination became effective on July 21, 2026. See Note 15 to the consolidated financial statements.

Material Cash Requirements

Our material cash requirements primarily relate to personnel, technology infrastructure, software development, professional services and other costs of our continuing operations. Following the dispositions of our historical biotechnology businesses, we no longer fund their laboratory operations and clinical development activities.

As of June 30, 2026, we had no non-current liabilities presented in the consolidated balance sheet. Our near-term cash requirements include the settlement of current liabilities and the funding of continuing operations. We intend to meet these requirements through available cash, cash generated from operations, collections of receivables and, if necessary, additional financing. The timing and amount of receivable collections may differ from our expectations, and additional financing may not be available on acceptable terms.

Liquidity Position and Working Capital

The following table presents a summary of our working capital position as of June 30, 2026 and 2025:

		As of June 30,								Increase (Decrease)
		2026				2025
		US$				US$				US$
Total current assets			13,749,512				22,382,323				(8,632,811	)
Total current liabilities			1,473,989				19,238,880				(17,764,891	)
Net current assets			12,275,523				3,143,443				9,132,080

As of June 30, 2026, working capital was $12,275,523, compared with $3,143,443 as of June 30, 2025. Current assets as of June 30, 2026 included $12,959,826 net due from former subsidiaries and a $402,151 net receivable from the buyer of the Taiwan subsidiary. Because these receivables constitute a substantial portion of current assets, reported working capital does not represent cash immediately available for operations. The June 30, 2025 balance sheet also included assets and liabilities of businesses subsequently disposed of, which affects comparability between the two dates.

Off-Balance Sheet Arrangements

As of June 30, 2026, we had no off-balance sheet arrangements that have had, or are reasonably likely to have, a material effect on our financial condition, results of operations, liquidity or capital resources.

Critical Accounting Policies and Estimates

Our consolidated financial statements have been prepared in accordance with U.S. GAAP. Their preparation requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, as well as related disclosures. We base these estimates on historical experience and other assumptions that we believe are reasonable under the circumstances. Actual results may differ from our estimates. Critical accounting policies includes revenue recognition, stock-based compensation, provision for expected credit losses, acquisition and disposal of subsidiaries. Please refer the Note 3 to the consolidated financial statements for more details of the these accounting policies.

The critical accounting estimates discussed below involve significant judgment and uncertainty and have had, or are reasonably likely to have, a material effect on our financial condition or results of operations.

We are an "emerging growth company" under the federal securities laws and have elected to use the extended transition period for complying with new or revised accounting standards. Accordingly, our consolidated financial statements may not be comparable to those of companies that apply the effective dates applicable to non-emerging growth companies.

Use of Estimates and Assumptions

Significant estimates and judgments reflected in our consolidated financial statements include the expected credit losses on amounts due from former subsidiaries and other receivables, the measurement of gains on the disposal of subsidiaries, the classification and presentation of discontinued operations, and the valuation and accounting for equity transactions, including shares issued for services. Actual results could differ from these estimates.

Valuation of Shares Issued for Services

During the year ended June 30, 2026, the Company issued common shares for compensation for seller accepting the position of CEO and director of the Company of $1,734,009 and for a commitment fee of $500,000 which were recognized in operating expenses.

Accounting for these transactions required management to evaluate the terms of the arrangements, identify the services received, and determine the measurement and timing of the related expense. The measurement of the shares issued for services involved judgment regarding their fair value. Changes in the underlying facts or valuation assumptions could have affected the amounts recognized.

Revenue Recognition

The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers. Revenue is recognized when control of the promised services is transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services.

The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers. The five-step model defined by ASC 606 requires the Company to (1) identify its contracts with customers, (2) identify its performance obligations under those contracts, (3) determine the transaction prices of those contracts, (4) allocate the transaction prices to its performance obligations in those contracts, and (5) recognize revenue when each performance obligation under those contracts is satisfied.

A contract contains a promise (or promises) to transfer goods or services to a customer. A performance obligation is a promise (or a group of promises) that is distinct. The transaction price is the amount of consideration a company expects to be entitled from a customer in exchange for providing the goods or services.

The Company enters into a distinct contract with its customers for the provision of agency service.

Transaction price is the amount of consideration in the contract to which the Company expects to be entitled in exchange for transferring the promised goods or services. The transaction price is fixed. The agency fee was one-off, non-refundable right for the agent sourcing customers for the Company.

Revenue is recognized when the Company satisfies a performance obligation by transferring the promised service to a customer, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for that service.

The Company's revenue from continuing operations is primarily derived from agency services provided through its subsidiary, Acellent. The Company identifies the services promised under each customer arrangement and recognizes the related agency fee when the applicable performance obligation has been satisfied in accordance with the terms of that arrangement (point in time).

Accounting for Discontinued Operations

The Company reports a disposal of a component or group of components as discontinued operations when the disposal represents a strategic shift that has, or will have, a major effect on the Company's operations and financial results. The results of operations of a component classified as discontinued operations are presented separately from continuing operations in the consolidated statements of operations and comprehensive income (loss) for all periods presented. Cash flows attributable to discontinued operations are separately presented in the consolidated statements of cash flows.

During the year ended June 30, 2026, the Company completed the dispositions of Advanced Biomed HK Limited and its subsidiary, Shanghai Sglcell Biotech Co., Ltd., and Advanced Biomed Inc. (Taiwan), which comprised the Company's historical biotechnology operations. The Company determined that these dispositions represented a strategic shift that had a major effect on the Company's operations and financial results. Accordingly, the results of these historical biotechnology operations have been presented as discontinued operations for all periods presented in accordance with ASC 205-20, Presentation of Financial Statements - Discontinued Operations.

See Note 5 - Discontinued Operations for additional information.

Expected Credit Losses on Amounts Due from Former Subsidiaries

As of June 30, 2026, the Company reported $12,959,826 due from former subsidiaries, net of an allowance for expected credit losses. These receivables arose from amounts due from the discontinued operations including Taiwan, Hong Kong and Shanghai entities following their dispositions.

The Company evaluates amount due from related parties and other applicable financial assets for expected credit losses on an individual or collective basis, as appropriate, considering factors such as historical payment experience, the financial condition and creditworthiness of the counterparties, the aging and nature of the outstanding balances, current economic conditions, and reasonable and supportable forecasts of future economic conditions.

An allowance for credit losses is recorded as a reduction of the carrying amount of the related financial asset, with the corresponding credit loss expense recognized in the consolidated statements of operations and comprehensive income (loss). Financial assets are written off against the allowance when they are deemed uncollectible. Recoveries of amounts previously written off are recognized when received.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents and amounts due from former subsidiaries. The Company maintains its cash with financial institutions that management believes to be of high credit quality and monitors its exposure to those institutions.

As of June 30, 2026, the Company had cash and cash equivalents from continuing operations of $385,535 and amounts due from former subsidiaries of $12,959,826, net of the allowance for expected credit losses. The recoverability of the latter balances depends on the former subsidiaries' ability to repay. Management evaluates those balances for expected credit losses as described above.

Liquidity Risk

Liquidity risk is the risk that the Company may be unable to meet its financial obligations as they become due. The Company manages this risk by monitoring its cash position, expected operating cash needs, anticipated collections of receivables, and available sources of financing.

As of June 30, 2026, the Company had cash and cash equivalents from continuing operations of $385,535 and working capital of $12,275,523, compared with $31,139 and $3,143,443, respectively, as of June 30, 2025. A substantial portion of the Company's working capital as of June 30, 2026 consisted of amounts due from former subsidiaries. Accordingly, its liquidity depends in part on the timing and amount of collections of those receivables.

Impact of Inflation

Inflation did not have a material effect on the Company's results of operations for the years ended June 30, 2026 and 2025. Following the disposition of its historical biotechnology operations, the Company's continuing operating costs primarily include personnel, professional services, technology infrastructure, software development, and other general corporate expenses. Increases in these costs could affect the Company's future results of operations.

Seasonality

The Company has not observed significant seasonal trends in its continuing operations. Because its current business has a limited operating history, the Company cannot yet determine whether its results will be subject to material seasonal variations in future periods.

Trend Information

The Company's operating results for the fiscal year ended June 30, 2026 reflect a significant transition in its business following the divestiture of its historical biotechnology operations and the acquisition of Acellent Technologies. As a result, the Company's historical results of operations may not be indicative of its future financial performance.

The Company expects its future operating results to be increasingly dependent on the commercialization and development of its artificial intelligence and financial algorithmic software technologies, its ability to expand its customer base and generate recurring revenue, and its ability to manage personnel, technology infrastructure, professional services, and other operating costs associated with its new business focus.

Other than as disclosed elsewhere in this Report, the Company is not aware of any trends, uncertainties, demands, commitments, or events that are reasonably likely to have a material effect on its liquidity, capital resources, or results of operations.

Quantitative and Qualitative Disclosures about Market Risk

The Company is exposed to certain market risks in the ordinary course of its business. Market risk represents the potential loss arising from adverse changes in market rates and conditions, including interest rates and foreign currency exchange rates. The Company does not currently use derivative financial instruments to manage its exposure to market risks.

Interest Rate Risk

As of June 30, 2026, the Company had no outstanding bank borrowings. The amount due to Jie Wang included $600,000 of loan principal and $7,014 of accrued interest. The Company also held cash and cash equivalents with financial institutions, on which interest income may vary with market rates. The effect of changes in interest rates on the Company's future results will depend on the terms of its outstanding and future financing arrangements and the amount of cash held.

Credit Risk

Financial assets of the Company that are potentially subject to credit risk mainly consist of cash, other current assets and amounts due from discontinued operations.

The Company's cash deposits are maintained with high credit quality institutions, the composition and maturities of which are regularly monitored by management. In Hong Kong, an individual entity's deposit maintained at a bank is insured for a maximum of HKD800,000 (equivalent to approximately $102,000) in the event of bank failure. In the U.S., the Company may carry cash balances at financial institutions more than the federally insured limit of $250,000 per institution. As of June 30, 2026, a cash balance of $140,439 was maintained at financial institutions in Hong Kong, of which approximately $38,438 was not insured; and cash balance of $245,096 was maintained at financial institutions in the U.S., of which nil was not insured.

In terms of other current receivable and amounts due from discontinued operations, the Company maintains allowances for expected credit losses as contra accounts, as mentioned above.

Foreign Exchange Risk

The Company's reporting currency is the U.S. dollar. Certain operations and transactions of Acellent Technologies are denominated in currencies other than the U.S. dollar. Consequently, changes in exchange rates may affect the U.S. dollar amounts reported in the Company's consolidated financial statements.

For the years ended June 30, 2026 and 2025, the Company reported a foreign currency translation loss of $372,814 and a foreign currency translation gain of $218,346, respectively, in other comprehensive income (loss). The Company does not currently use derivative financial instruments to hedge its foreign currency exposure. Future exchange rate fluctuations may affect its reported financial position and comprehensive income (loss).

Recent Accounting Pronouncements

In October 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-06, Disclosure Improvements - Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative. The amendments incorporate certain disclosure and presentation requirements previously contained in SEC regulations into the FASB Accounting Standards Codification. For entities subject to the SEC's existing disclosure requirements, the effective date for each amendment will be the date on which the SEC removes the related disclosure requirement from its rules. The Company does not expect the adoption of ASU 2023-06 to have a material impact on its consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures, which enhances income tax disclosures, primarily related to the rate reconciliation and income taxes paid. The amendments are effective for public business entities for annual periods beginning after December 15, 2024. The Company adopted ASU 2023-09 during the fiscal year ended June 30, 2026. The adoption did not have a material impact on the Company's consolidated financial statements.

In March 2024, the FASB issued ASU 2024-01, Compensation - Stock Compensation (Topic 718) - Scope Application of Profits Interest and Similar Awards. The amendments provide illustrative guidance to assist entities in determining whether profits interest and similar awards should be accounted for as share-based payment arrangements under ASC Topic 718. The amendments are effective for public business entities for annual periods beginning after December 15, 2024, including interim periods within those annual periods. The Company adopted ASU 2024-01 during the fiscal year ended June 30, 2026. The adoption did not have a material impact on the Company's consolidated financial statements.

In March 2024, the FASB issued ASU 2024-02, Codification Improvements - Amendments to Remove References to the Concepts Statements. The amendments remove references to various FASB Concepts Statements from the Codification and make other conforming amendments. The amendments are effective for public business entities for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. The Company adopted ASU 2024-02 during the fiscal year ended June 30, 2026. The adoption did not have a material impact on the Company's consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. In January 2025, the FASB issued ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date, which clarifies the effective date of ASU 2024-03 for entities with non-calendar year ends. The amendments require public business entities to provide additional disaggregated disclosures regarding certain categories of expenses included in relevant income statement expense captions. The amendments are effective for annual reporting periods beginning after December 15, 2026, and for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of these amendments may have on its consolidated financial statements and related disclosures.

In December 2025, the FASB issued ASU 2025-12, Codification Improvements, which makes amendments to various Topics in the FASB Accounting Standards Codification to clarify guidance, correct unintended applications, and make other incremental improvements to U.S. GAAP. The amendments are effective for all entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2025-12 on its consolidated financial statements and related disclosures.

Except as discussed above, the Company does not believe that other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company's consolidated financial statements and related disclosures.