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 ~~March~~September 3130, 2025

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

For the transition period from to .

Commission File No. 001-42140

Lakeside Holding Limited

(Exact name of registrant as specified in its charter)

Nevada		82-1978491
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

1475 Thorndale Avenue, Suite A

Itasca, Illinois 60143

(Address of principal executive offices) (Zip Code)

(224) 446-9048

(Registrant’s telephone number, including area code)

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, par value US$0.0001 per share		LSH		The Nasdaq Stock Market LLC

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 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 the date of this report, the Registrant had 717,~~500~~427,~~000~~559 shares of common stock outstanding.

Lakeside Holding Limited

FORM 10-Q

For the Quarterly Period Ended ~~March~~September 3130, 2025

INDEX

		Page	~~Page~~
	PART I. FINANCIAL INFORMATION	~~PART I. FINANCIAL INFORMATION~~
Item 1.	Financial Statements	~~Financial Statements~~	1
		Unaudited Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Balance Sheets as of September 30, 2025 (unaudited) and June 30, 2025	F-2
		Unaudited Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)	2
	Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for the three months ended September 30, 2025 and 2024 (unaudited)	F-3
		Unaudited Condensed Consolidated Statements of Changes in Shareholders’ Equity	3
	Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three months ended September 30, 2025 and 2024 (unaudited)	F-4
		Unaudited Condensed Consolidated Statements of Cash Flows	4
	Condensed Consolidated Statements of Cash Flows for the three months ended September 30, 2025 and 2024 (unaudited)	F-5
		Notes to Unaudited Condensed Consolidated Financial Statements	5
	Notes to Condensed Consolidated Financial Statements (unaudited)	F-6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	~~Management’s Discussion and Analysis of Financial Condition and Results of Operations~~1	41
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	~~Quantitative and Qualitative Disclosures About Market Risk~~14	59
Item 4.	Controls and Procedures	~~Controls and Procedures~~14	59
	PART II. OTHER INFORMATION	~~PART II. OTHER INFORMATION~~
Item 1.	Legal Proceedings	~~Legal Proceedings~~15	60
Item 1A.	Risk Factors	~~Risk Factors~~15	60
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	~~Unregistered Sales of Equity Securities and Use of Proceeds~~15	60
Item 3.	Defaults Upon Senior Securities	~~Defaults Upon Senior Securities~~15	60
Item 4.	Mine Safety Disclosures	~~Mine Safety Disclosures~~15	60
Item 5.	Other Information	~~Other Information~~15	60
Item 6.	Exhibits	~~Exhibits~~16	61
	Signatures	~~Signatures~~17	62

EXPLANATORY NOTE

As used in this Quarterly Report on Form 10-Q, unless otherwise indicated or the context otherwise requires, references to “Lakeside,” “the Company,” “we,” “us,” and “our” refer to Lakeside Holding Limited together with its consolidated subsidiaries.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This report contains certain statements related to future results, or states our intentions, beliefs, and expectations or predictions for the future, all of which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent management’s expectations or forecasts of future events. Forward-looking statements are typically identified by words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “project,” “intend,” “plan,” “probably,” “potential,” “looking forward,” “continue,” and other similar terms, and future or conditional tense verbs like “could,” “may,” “might,” “should,” “will,” and “would.” You can also identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from either historical or anticipated results depending on a variety of factors. Forward-looking statements in this Form 10-Q may include, for example, statements concerning:

●

our future operating and financial performance, ability to generate positive cash flow and ability to achieve and sustain profitability;

●

our competitive position;

●

the sufficiency of our existing capital resources to fund our future operating expenses;

●

the timing of the introduction of new solutions and services;

●

the likelihood of success in and impact of litigation;

●

our protection or enforcement of our intellectual property rights;

●

our expectation with respect to securities, options and future markets and general economic conditions;

●

our ability to keep up with rapid technological change;

●

the impact of future legislation and regulatory changes on our business; and

●

our anticipated use of proceeds from our initial public offering.

Any or all of our forward-looking statements may turn out to be inaccurate, and there are no guarantees about our performance. The factors identified above are not exhaustive. We operate in a dynamic business environment in which new risks may emerge frequently. Accordingly, readers should not place undue reliance on forward-looking statements, which speak only as of the dates on which they are made. We are under no (and expressly disclaim any) obligation to update or alter any forward-looking statement that we may make from time to time, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities laws.

~~PART~~LAKESIDE I.HOLDING ~~FINANCIAL INFORMATION~~LIMITED

~~Item~~INDEX 1.TO ~~Financial~~THE ~~Statements~~UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

LAKESIDE HOLDING LIMITED CONDENSED CONSOLIDATED BALANCE SHEETS

	Page
Condensed Consolidated Balance Sheets as of September 30, 2025 (unaudited) and June 30, 2025	F-2
Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for the three months ended September 30, 2025 and 2024 (unaudited)	F-3
Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three months ended September 30, 2025 and 2024 (unaudited)	F-4
Condensed Consolidated Statements of Cash Flows for the three months ended September 30, 2025 and 2024 (unaudited)	F-5
Notes to Condensed Consolidated Financial Statements (unaudited)	F-6 – F-45

~~AS OF MARCH 31, 2025 AND JUNE 30, 2024~~F-1

~~(UNAUDITED)~~LAKESIDE HOLDING LIMITED CONDENSED CONSOLIDATED BALANCE SHEETS

	As of March 31, 2025			As of June 30, 2024
	(unaudited)			(audited)
ASSETS
CURRENT ASSETS
Cash	$	1,499,257		$	123,550
Accounts receivable – third parties, net		1,397,499			2,082,152
Accounts receivable – related party, net		306,295			763,285
Prepayment and other receivable		91,426			-
Contract assets		71,331			129,506
Inventories, net		216,489			-
Due from related parties		856,570			441,279
Loan to a third party		573,546			-
Total current assets		5,012,413			3,539,772
NON-CURRENT ASSETS
Investment in other entity		15,741			15,741
Property and equipment at cost, net of accumulated depreciation		533,993			344,883
Intangible asset, net		386,811			-
Right of use operating lease assets		3,619,138			3,471,172
Right of use financing lease assets		102,398			37,476
Deferred tax asset		-			89,581
Deferred offering costs		-			1,492,798
Deposit and prepayment		269,269			202,336
Total non-current assets		4,927,350			5,653,987
TOTAL ASSETS	$	9,939,763		$	9,193,759
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payables – third parties	$	1,577,044		$	1,161,858
Accounts payables – related parties		68,895			227,722
Accrued liabilities and other payables		1,448,588			1,335,804
Current portion of obligations under operating leases		2,389,965			1,186,809
Current portion of obligations under financing leases		48,617			37,619
Loans payable, current		617,682			746,962
Contract liabilities		42,168			-
Dividend payable		-			98,850
Tax payable		106,433			79,825
Due to shareholders		-			1,018,281
Convertible notes - current		484,541			-
Total current liabilities		6,783,933			5,893,730
NON-CURRENT LIABILITIES
Loans payable, non-current		156,509			136,375
Loan payable to a related party		124,176			-
Deferred tax liabilities		96,703			-
Obligations under operating leases, non-current		1,815,211			2,506,402
Obligations under financing leases, non-current		72,651			17,460
Convertible note - non-current		140,792			-
Total non-current liabilities		2,406,042			2,660,237
TOTAL LIABILITIES	$	9,189,975		$	8,553,967
Commitments and Contingencies
EQUITY
Common stocks, $0.0001 par value, 200,000,000 shares authorized, 7,500,000 and 6,000,000 issued and outstanding as of March 31, 2025 and June 30, 2024, respectively		750			600
Subscription receivable		-			(600	)
Additional paid-in capital		5,113,511			642,639
Statutory reserve		7,014			-
Deficits		(4,365,856	)		(5,819	)
Accumulated other comprehensive income		(5,631	)		2,972
Total equity		749,788			639,792
TOTAL LIABILITIES AND EQUITY	$	9,939,763		$	9,193,759

AS OF SEPTEMBER 30, 2025 (UNAUDITED) AND JUNE 30, 2025

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

	As of September 30, 2025 (unaudited)			As of June 30, 2025
ASSETS
CURRENT ASSETS
Cash	$	4,539,636		$	4,956,060
Accounts receivable – third parties, net of credit loss allowance of $171,613 and $87,728		3,091,279			2,895,580
Accounts receivable – related party, net of credit loss allowance of $nil and $nil		352,896			396,331
Note receivable		13,873			65,152
Prepayment, deposit and other receivable – third parties		4,948,382			449,977
Other receivable – related party		1,146,844			869,430
Contract assets		49,392			119,054
Inventories, net		131,986			96,534
Right of return asset		80,554			141,687
Loan receivable from related parties		386,541			277,741
Loan receivable from a third party		253,107			11,380
Total current assets		14,994,490			10,278,926

NON-CURRENT ASSETS
Long- term investment		15,741			15,741
Property and equipment at cost, net of accumulated depreciation		409,393			389,421
Intangible assets, net		344,069			365,440
Right of use operating lease assets		2,687,972			3,158,202
Right of use financing lease assets		85,197			93,797
Deposit and prepayment		98,327			103,934
Total non-current assets		3,640,699			4,126,535
TOTAL ASSETS	$	18,635,189		$	14,405,461

LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payables – third parties	$	2,539,331		$	2,494,217
Accounts payables – related parties		104,682			65,237
Accrued liabilities and other payables		2,157,881			2,119,994
Current portion of obligations under operating leases		1,593,788			2,323,290
Current portion of obligations under financing leases		44,968			47,035
Loans payable, current		2,271,368			1,300,112
Contract liabilities		33,530			15,355
Tax payable		358,607			312,903
Due to shareholders		142,826			-
Due to a related party		260,144			-
Convertible debts - current		133,198			910,675
Refund liabilities		198,806			77,235
Total current liabilities		9,839,129			9,666,053

NON-CURRENT LIABILITIES
Loans payable, non-current		147,735			60,398
Loan payable to a related party		124,176			124,176
Deferred tax liabilities		61,111			83,100
Obligations under operating leases, non-current		1,448,459			1,559,782
Obligations under financing leases, non-current		60,249			66,267
Total non-current liabilities		1,841,730			1,893,723
TOTAL LIABILITIES	$	11,680,859		$	11,559,776

Commitments and Contingencies

EQUITY
Common stocks, $0.0001 par value, 200,000,000 shares authorized, 17,427,559 and 10,500,000 issued and outstanding as of September 30, 2025 and June 30, 2025, respectively		1,743			1,050
Additional paid-in capital		13,512,515			8,084,275
Statutory reserve		74,608			63,416
Deficits		(6,683,779	)		(5,315,371	)
Accumulated other comprehensive income		49,243			12,315
Total equity		6,954,330			2,845,685

TOTAL LIABILITIES AND EQUITY	$	18,635,189		$	14,405,461

1The accompanying notes are an integral part of these condensed consolidated financial statements (unaudited).

~~LAKESIDE HOLDING LIMITED CONDENSED CONSOLIDATED STATEMENT OF INCOME (LOSS)~~ F-2

~~AND~~LAKESIDE ~~COMPREHENSIVE~~HOLDING LIMITED CONDENSED CONSOLIDATED STATEMENT OF INCOME (LOSS)

~~FOR THE THREE MONTHS~~ AND ~~NINE~~COMPREHENSIVE ~~MONTHS~~INCOME ~~ENDED MARCH 31, 2025 AND 2024~~(LOSS)

~~(UNAUDITED)~~FOR THE PERIODS ENDED SEPTEMBER 30, 2025 AND 2024

	Nine Months Ended March 31,						Three Months Ended March 31,
	2025			2024			2025			2024
Revenue from cross-border freight solutions – third party	$	9,559,567		$	12,457,709		$	2,857,504		$	3,817,726
Revenue from cross-border freight solutions – related parties		1,205,354			1,067,633			448,360			643,037
Revenue from distribution of pharmaceutical products – third parties		715,362			—			497,276			—
Total revenue		11,480,283			13,525,342			3,803,140			4,460,763
Cost of revenue from cross-border freight solutions – third party		8,756,778			9,367,882			2,602,784			3,038,231
Cost of revenue from cross-border freight solutions – related party		1,286,380			1,469,845			365,330			446,968
Cost of revenue from pharmaceutical products – third parties		240,966			—			119,175			—
Total cost of revenue		10,284,124			10,837,727			3,087,289			3,485,199
Gross profit		1,196,159			2,687,615			715,851			975,564
Operating expenses:
Selling expenses		158,118			—			103,630			—
General and administrative expenses		5,429,398			2,803,311			1,680,339			962,481
Loss from deconsolidation of a subsidiary		—			73,151			—			—
Provision (reversal) of allowance for expected credit loss		8,021			22,198			6,065			(27,393	)
Total operating expenses		5,595,537			2,898,660			1,790,034			935,088
(Loss) income from operations		(4,399,378	)		(211,045	)		(1,074,183	)		40,476
Other income
Other income, net		310,796			190,887			109,255			102,438
Interest expense		(156,266	)		(79,400	)		(87,274	)		(25,536	)
Total other income		154,530			111,487			21,981			76,902
(Loss) income before income taxes		(4,244,848	)		(99,558	)		(1,052,202	)		117,378
Income tax expense		108,175			130,735			18,594			104,610
Net (loss) income		(4,353,023	)		(230,293	)		(1,070,796	)		12,768
Less: net loss attributable to non-controlling interest		—			(3,025	)		—			—
Net (loss) income attributable to the Company		(4,353,023	)		(227,268	)		(1,070,796	)		12,768
Other comprehensive (loss) income:
Foreign currency translation (loss) income		(8,603	)		3,122			3,583			—
Comprehensive (loss) income		(4,361,626	)		(227,171	)		(1,067,213	)		12,768
Less: comprehensive loss attributable to non-controlling interest		—			(3,119	)		—			—
Comprehensive (loss) income attributable to the Company	$	(4,361,626	)	$	(224,052	)	$	(1,067,213	)	$	12,768
Loss per share – basic and diluted	$	(0.58	)	$	(0.04	)	$	(0.14	)	$	—
Weighted Average Shares Outstanding – basic and diluted		7,500,000			6,000,000			7,500,000			6,000,000

(UNAUDITED)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

	For The Three Months Ended September 30,
	2025			2024
Revenue from cross-border freight solutions – third party	$	4,181,714		$	3,599,787
Revenue from cross-border freight solutions – related parties		580,160			481,767
Revenue from distribution of pharmaceutical products – third parties		1,338,015			-
Total revenue		6,099,889			4,081,554

Cost of revenue from cross-border freight solutions – third party		3,733,846			2,994,285
Cost of revenue from cross-border freight solutions – related party		466,506			564,730
Cost of revenue from pharmaceutical products – third parties		790,770			-
Total cost of revenue		4,991,122			3,559,015
Gross profit		1,108,767			522,539

Operating expenses:
Selling expenses		189,411			-
General and administrative expenses		2,107,655			1,837,206
Provision of allowance for expected credit loss		83,325			12,837
Total operating expenses		2,380,391			1,850,043

Loss from operations		(1,271,624	)		(1,327,504	)

Other income (expense)
Other income, net		146,839			109,788
Interest expense		(196,441	)		(28,110	)
Total other (expense) income		(49,602	)		81,678

Loss before income taxes		(1,321,226	)		(1,245,826	)
Income tax expense		35,990			89,581
Net loss		(1,357,216	)		(1,335,407	)

Other comprehensive (loss) income:
Foreign currency translation gain		36,928			12,993
Comprehensive loss	$	(1,320,288	)	$	(1,322,414	)

Loss per share – basic and diluted	$	(0.09	)	$	(0.18	)
Weighted Average Shares Outstanding – basic and diluted		14,733,489			7,500,000

2The accompanying notes are an integral part of these condensed consolidated financial statements (unaudited).

~~LAKESIDE HOLDING LIMITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY FOR THE THREE MONTHS AND NINE MONTHS ENDED MARCH 31, 2025 AND 2024~~F-3

~~(UNAUDITED)~~LAKESIDE HOLDING LIMITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

	For The Three Months Ended March 31, 2024
	Common Shares		Amount		Subscription Receivable			Additional Paid in Capital		Retained Earnings (Deficits)			Accumulated Other Comprehensive Income (Loss)		Non- controlling Interest		Total
Balance at December 31, 2023		6,000,000	$	600	$	(600	)	$	642,639	$	(20,603	)	$	2,972	$	—	$	625,008
Net income		—		—		—			—		12,768			—		—		12,768
Balance at March 31, 2024		6,000,000	$	600	$	(600	)	$	642,639	$	(7,835	)	$	2,972	$	—	$	637,776

(UNAUDITED)

	For The Nine Months Ended March 31, 2024
	Common Shares		Amount		Subscription Receivable			Additional Paid in Capital		Deficits			Accumulated Other Comprehensive Income			Total
	Common Shares		Amount		Subscription Receivable			Additional Paid in Capital		Retained Earnings (Deficits)			Accumulated Other Comprehensive Income (Loss)			Non- controlling Interest			Total
Balance at June 30, 2024		6,000,000	$	600	$	(600	)	$	642,639	$	(5,819	)	$	2,972		$	639,792
Balance at June 30, 2023		6,000,000	$	600	$	(600	)	$	—	$	862,072		$	(244	)	$	(7,068	)	$	854,760
Paid in capital		—		—		600			—		—			—			600
Net loss for the period		—		—		—			—		(227,268	)		—			(3,025	)		(230,293	)
Net loss for the three months ended September 30, 2024		—		—		—			—		(1,335,407	)		—			(1,335,407	)
Termination of S Corporation upon reorganization		—		—		—			642,639		(642,639	)		—			—			—
Initial public offering, net of share issuance costs		1,500,000		150		—			4,300,152		—			—			4,300,302
Deconsolidation of a subsidiary		—		—		—			—		—			—			10,187			10,187
Foreign currency translation adjustment		—		—		—			—		—			12,993			12,993
Foreign currency translation adjustment		—		—		—			—		—			3,216			(94	)		3,122
Balance at September 30, 2024		7,500,000	$	750	$	—		$	4,942,791	$	(1,341,226	)	$	15,965		$	3,618,280
Balance at March 31, 2024		6,000,000	$	600	$	(600	)	$	642,639	$	(7,835	)	$	2,972		$	—		$	637,776

	For The Three Months Ended March 31, 2025
	Common Shares		Amount		Additional Paid in Capital		Deficits			Accumulated Other Comprehensive Income		Statutory Reserves			Total
	Common Shares		Amount		Subscription Receivable		Additional Paid in Capital			Statutory Reserves		Deficits			Accumulated Other Comprehensive Income (Loss)			Total
Balance at June 30, 2025		10,500,000	$	1,050	$	8,084,275	$	(5,315,371	)	$	12,315	$	63,416		$	2,845,685
Balance at December 31, 2024		7,500,000	$	750	$	—	$	4,942,791		$	—	$	(3,288,046	)	$	(9,214	)	$	1,646,281
Net loss for the three months ended September 30, 2025		—		—		—		(1,357,216	)		—		—			(1,357,216	)
Net loss		—		—		—		—			—		(1,070,796	)		—			(1,070,796	)
Statutory reserve		—		—		—		(11,192	)		—		11,192			—
Statutory reserve		—		—		—		—			7,014		(7,014	)		—			—
Foreign currency translation gain		—		—		—		—			36,928		—			36,928
Foreign currency translation adjustment		—		—		—		—			—		—			3,583			3,583
Common stock issued for consulting services		2,300,000		230		1,915,970		—			—		—			1,916,200
Issuance of convertible note		—		—		—		170,720			—		—			—			170,720
Issuance of common shares upon exercise of Convertible note		820,330		82		512,651		—			—		—			512,733
Balance at March 31, 2025		7,500,000	$	750	$	—	$	5,113,511		$	7,014	$	(4,365,856	)	$	(5,631	)	$	749,788
Issuance of common shares - Private placement		3,807,229		381		2,999,619		—			—		—			3,000,000
Balance at September 30, 2025		17,427,559	$	1,743	$	13,512,515	$	(6,683,779	)	$	49,243	$	74,608		$	6,954,330

	For The Nine Months Ended March 31, 2025
	Common Shares		Amount		Subscription Receivable			Additional Paid in Capital		Statutory Reserves		Deficits			Accumulated Other Comprehensive Income (Loss)			Total
Balance at June 30, 2024		6,000,000	$	600	$	(600	)	$	642,639	$	—	$	(5,819	)	$	2,972		$	639,792
Paid in capital		—		—		600			—		—		—			—			600
Net loss		—		—		—			—		—		(4,353,023	)		—			(4,353,023	)
Statutory reserve		—		—		—			—		7,014		(7,014	)		—			—
Initial public offering, net of share issuance costs		1,500,000		150		—			4,300,152		—		—			—			4,300,302
Foreign currency translation adjustment		—		—		—			—		—		—			(8,603	)		(8,603	)
Issuance of convertible note		—		—		—			170,720		—		—			—			170,720
Balance at March 31, 2025		7,500,000	$	750	$	—		$	5,113,511	$	7,014	$	(4,365,856	)	$	(5,631	)	$	749,788

The accompanying notes are an integral part of these condensed consolidated financial statements (unaudited).

~~The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.~~F-4

3LAKESIDE HOLDING LIMITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

~~LAKESIDE~~FOR ~~HOLDING~~THE ~~LIMITED CONDENSSED~~PERIOD ~~CONSOLIDATED~~ENDED ~~STATEMENTS~~SEPTEMBER OF30, ~~CASH~~2025 ~~FLOWS~~AND 2024

~~FOR THE NINE MONTHS ENDED MARCH 31, 2025 AND 2024~~(UNAUDITED)

(UNAUDITED)

	For the Three Months Ended September 30,
	2025			2024
Cash flows from operating activities:
Net loss	$	(1,357,216	)	$	(1,335,407	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation – G&A		25,898			17,995
Depreciation – cost of revenue		24,667			18,164
Amortization of intangible asset		21,371			—
Straight line lease expense of operating leases		527,261			466,723
Depreciation of right-of-use finance assets		8,600			7,595
Amortization of discount and bond issuance cost		69,602			—
Provision of allowance for expected credit loss		83,325			12,837
Deferred tax expense		(21,989	)		89,581
Interest income		(60,561	)		—
Stock-based compensation expense for consulting services		359,239			—
Changes in operating assets and liabilities:
Accounts receivable – third parties		(279,024	)		282,864
Accounts receivable – related parties		43,435			257,924
Note receivable		51,279			—
Contract assets		69,662			88,205
Inventories, net		(35,452	)		—
Right of return assets		61,133			—
Other receivable – related parties		(82,118	)		(77,812	)
Prepayment, deposit and other receivable – third parties		(2,935,837	)		(176,572	)
Accounts payables – third parties		45,114			(402,895	)
Accounts payables – related parties		39,445			(156,850	)
Contract liabilities		18,175			—
Accrued expense and other payables		37,887			(24,876 ）
Refund liabilities		121,571			—
Tax payable		45,704			—
Operating lease liabilities		(897,689	)		(470,260	)
Net cash used in operating activities		(4,016,518	)		(1,402,784	)

Cash flows from investing activities:
Purchase of property and equipment		—			(5,772	)
Prepayment for system installation		—			(32,507	)
Loan to related parties		(108,800	)		—
Net cash used in investing activities		(108,800	)		(38,279	)

Cash flows from financing activities:
Proceeds from loans		1,237,766			—
Repayment of loans		(228,997	)		(265,456	)
Repayment of principal of convertible debts		(334,346	)		—
Repayment of equipment and vehicle loans		(20,530	)		(27,990	)
Principal payment of finance lease liabilities		(8,085	)		(7,632	)
Proceeds from initial public offering, net of share issuance costs		—			5,351,281
Proceeds from a private placement		3,000,000			—
Advance to a third party		(181,166	)		—
Advances to related parties		(195,296	)		(126,227	)
Proceeds from shareholders		142,826			—
Proceeds from related party		260,144			—
Repayment to shareholders		-			(879,574	)
Net cash provided by financing activities		3,672,316			4,044,402

Effect of exchange rate changes on cash		36,578			12,386
Net (decrease) increase in cash		(416,424	)		2,615,725
Cash, beginning of the period		4,956,060			123,550
Cash, end of the period	$	4,539,636		$	2,739,275

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for income tax	$	13,832		$	—
Cash paid for interest	$	156,637		$	6,274

SUPPLEMENTAL SCHEDULE OF NON-CASH ACTIVITIES
Convertible notes converted to common shares	$	512,733		$	—
Issuance of common shares in exchange for consulting service	$	1,916,200			—
Property additions included in loan payable	$	69,219			—
Right of use assets obtained in exchange for operating lease obligations	$	—		$	2,094,498

	For the Nine Months Ended March 31,
	2025			2024
Cash flows from operating activities:
Net loss	$	(4,353,023	)	$	(230,293	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation – G&A		86,413			53,985
Depreciation – cost of revenue		62,441			54,493
Amortization of intangible asset		32,056			—
Amortization and interest expense of operating lease assets		1,515,688			658,713
Depreciation of right-of-use finance assets		24,081			22,548
Provision of allowance for expected credit loss		8,021			22,198
Interest expense of convertible note		40,541			—
Deferred tax expense		81,567			36,264
Interest income		(11,645	)		—
Loss from derecognition of shares in subsidiary		—			73,151
Changes in operating assets and liabilities:
Accounts receivable – third parties		666,858			(283,936	)
Accounts receivable – related parties		466,764			(565,824	)
Contract assets		58,175			(58,498	)
Inventories, net		(216,489	)		—
Due from related parties		(41,230	)		212,342
Due to related party		—			14,536
Prepayment and other deposit		(158,359	)		2,623
Accounts payables – third parties		415,186			493,085
Accounts payables – related parties		(158,827	)		57,420
Contract liabilities		42,168			—
Accrued expense and other payables		393,633			111,122
Tax payable		26,608			94,471
Operating lease liabilities		(1,151,931	)		(606,756	)
Net cash (used in) provided by operating activities		(2,171,304	)		161,644
Cash flows from investing activities:
Purchase of furniture and equipment		(36,072	)		—
Payment for leasehold improvement		(76,456	)		—
Net cash payment for asset acquisition		(552,721	)		—
Loan to a third party		(561,901	)		—
Payment made for investment in other entity		—			(29,906	)
Net cash outflow from deconsolidation of a subsidiary (Appendix A)		—			(48,893	)
Net cash used in investing activities		(1,227,150	)		(78,799	)
Cash flows from financing activities:
Proceeds from loans		294,975			225,000
Repayment of loans		(420,765	)		(200,132	)
Net proceeds from issuance of convertible notes		755,512			—
Proceeds from a loan from a related party		124,176			—
Repayment of equipment and vehicle loans		(85,591	)		(89,802	)
Principal payment of finance lease liabilities		(22,814	)		(21,485	)
Payment for deferring offering cost		—			(140,000	)
Advances from Hupan Pharmaceutical prior to acquisition		276,365			—
Proceeds from initial public offering, net of share issuance costs		5,351,281			—
Advances to related parties		(685,247	)		—
Proceeds from shareholders		—			158,455
Repayment to shareholders		(805,345	)		—
Net cash provided by (used in) financing activities		4,782,547			(67,964	)
Effect of exchange rate changes on cash		(8,386	)		3,216
Net increase in cash		1,375,707			18,097
Cash, beginning of the period		123,550			174,018
Cash, end of the period	$	1,499,257		$	192,115
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for income tax	$	—		$	—
Cash paid for interest	$	67,704		$	24,030
SUPPLEMENTAL SCHEDULE OF NON-CASH IN INVESTING AND FINANCING ACTIVITIES
Deferred offering costs within due to shareholders	$	—		$	660,826
Deferred offering costs within accrued expense and other payables	$	—		$	176,176
Property additions included in loan payable	$	102,235			—
Additions to leasehold improvement through accounts payable and other payable	$	123,176			—
Due to shareholder offset against due from related parties	$	311,185			—
NON-CASH ACTIVITIES
Right of use assets obtained in exchange for operating lease obligations	$	1,447,494		$	—
Right of use assets obtained in exchange for finance lease obligation	$	89,003		$	19,982
APPENDIX A – Net cash outflow from deconsolidation of a subsidiary
Working capital, net				$	29,812
Investment in other entity recognized					(15,741	)
Elimination of NCl at deconsolidation of a subsidiary					10,187
Loss from deconsolidation of a subsidiary					(73,151	)
Cash				$	(48,893	)

The accompanying notes are an integral part of these condensed consolidated financial statements (unaudited).

~~The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.~~F-5

4LAKESIDE HOLDING LIMITED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~LAKESIDE HOLDING LIMITED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~(UNAUDITED)

~~(UNAUDITED)~~NOTE 1 — ORGANIZATION AND BUSINESS DESCRIPTION

~~NOTE~~Lakeside 1Holding Limited (the “Company”), is a holding company established on August —28, 2023 under the laws of the State of Nevada. The Company, acting through its subsidiary, is primarily engaged in providing customized cross-border ~~ORGANIZATION~~ocean ~~AND~~freight ~~BUSINESS~~solutions ~~DESCRIPTION~~and airfreight solutions. On July 1, 2024, the Company closed its initial public offering (“IPO”) of 1,500,000 shares of its common stock at an IPO price of $4.50 per share for aggregate gross proceeds of approximately $6.75 million from the offering (Note 17). In connection with the offering, the Company’s common shares began trading on the Nasdaq Capital Market under the trading symbol “LSH.”

~~Lakeside~~As ~~Holding Limited (the “Company”), is a holding company established on August 28, 2023 under the laws~~ of ~~the~~September ~~State of Nevada. The Company~~30, ~~acting through its subsidiary~~2025, ~~is primarily engaged in providing customized cross-border ocean freight solutions and airfreight solutions.~~ ~~On July 1, 2024,~~ the Company closed its initial public offering (“IPO”) of 1,500,000 shares of its common stock at an IPO price of $4.50 per share for aggregate gross proceeds of approximately $6.75 million from the offering (Note 16). In connection with the offering, the Company’s ~~common~~subsidiaries ~~shares~~are ~~began~~as ~~trading on the Nasdaq Capital Market under the trading symbol “LSH.”~~follows:

As of March 31, 2025, the Company’s subsidiaries are as follows:

Name	Date of Incorporation/ Acquisition	Jurisdiction of Formation	Percentage of direct/indirect Economic Ownership		Principal Activities
Parent Company
Lakeside Holding Limited	August 28, 2023	Nevada		Parent	Holding company
Subsidiaries/companies with ownership
American Bear Logistics Corp. (“ABL Chicago”)	February 5, 2018	Illinois		100%	Logistics services
Sichuan Hupan Jincheng Enterprise Management Co., Ltd (“Sichuan Hupan”)	July 10, 2024	Sichuan, China		100%	Exploring business opportunities in China
Hupan Pharmaceutical (Hubei) Co., Ltd (“Hupan Pharmaceutical”)	November 21, 2024	Hubei, China		100%	Medical injection and pharmaceutical distributor

Name	Date of Incorporation/ Acquisition	Jurisdiction of Formation	Percentage of direct/indirect Economic Ownership	Principal Activities
Parent Company
Lakeside Holding Limited	August 28, 2023	Nevada	100%	Holding company
Subsidiaries/companies with ownership
American Bear Logistics Corp. (“ABL Chicago”)	February 5, 2018	Illinois	100%	Logistics services
Sichuan Hupan Jincheng Enterprise Management Co., Ltd (“Sichuan Hupan”)*	July 10, 2024	Sichuan, China	100%	Exploring business opportunities in China
Hupan Pharmaceutical (Hubei) Co., Ltd (“Hupan Pharmaceutical”)**	November 21, 2024	Hubei, China	100%	Medical Injection and Pharmaceutical Distributor
Wuhan Hupan New Energy Technology limited Co., Ltd (“Hupan New Energy”)***	December 12, 2024	Wuhan, China	80% by Hupan Pharmaceutical	Dormant
Wuhan Ruixinda Technology Limited Co., Ltd (“Wuhan Ruixinda”)***	December 20, 2024	Wuhan, China	51% by Hupan New Energy	Dormant

Reorganization

*A Onreorganization ~~July~~of ~~10, 2024,~~ the ~~Company~~legal structure ~~incorporated~~was acompleted ~~wholly-owned~~on ~~subsidiary~~September 23, ~~Sichuan~~2023 ~~Hupan~~(“The ~~Jincheng~~Reorganization”). ~~Enterprise~~The ~~Management~~Reorganization ~~Co.,~~involved ~~Ltd,~~the inincorporation of ~~China.~~Lakeside ~~The~~Holding ~~Company~~Limited isand ~~actively~~the ~~exploring~~transfer the ~~potential~~shares ~~business~~of ~~opportunities~~American inBear ~~mainland~~Logistics ~~China~~Corp (“ABL Chicago”) to the Company.

**Prior Onto ~~November~~the 5Reorganization, Mr. Henry ~~2024~~Liu, ~~Sichuan~~the ~~Hupan~~Chief ~~entered~~Executive ~~into~~Officer ~~an equity transfer agreement~~ (~~the~~ “~~Equity Transfer Agreement~~CEO”), ~~through~~and ~~which~~Mr. Shuai Li, the ~~Company~~President, ~~acquired~~each ~~100~~owned 50% equity interest of the ~~equity~~ABL ~~interests~~Chicago in(collectively, ~~Hupan~~the ~~Pharmaceutical~~“Controlling Group”). On September 23, a2023, ~~comprehensive~~the ~~pharmaceutical~~Controlling ~~distribution~~Group ~~and~~transferred their ~~supply~~100% ~~chain~~equity ~~service~~interest ~~provider,~~in ABL Chicago to the Company for a ~~total~~ consideration of $01,000.6 ~~million~~Upon ~~(see~~this ~~Note~~Reorganization, ~~21).~~the ~~The~~Company ~~transaction~~ultimately owns ~~was~~100% ~~completed~~equity oninterest ~~November~~of ~~21,~~ABL ~~2024~~Chicago.

~~***~~As ~~Subsequent~~part of the series of reorganization transactions to ~~period-end,~~be ~~Hupan~~completed ~~New~~before ~~Energy~~the ~~and~~offering, ~~Wuhan~~a ~~Ruixinda~~120-for-1 share split was ~~deregistered~~conducted by the Company on ~~April~~March 29, 2024. 8After the share split, ~~2025~~the ~~and~~issued ~~May~~share 12capital of the Company consists of $600 divided into 6,000,000 ~~2025~~common shares, ~~respectively~~par value of $0.0001 each.

5F-6

LAKESIDE HOLDING LIMITED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 1 — ORGANIZATION AND BUSINESS DESCRIPTION (cont.)

Reorganization (cont.)

ABefore ~~reorganization~~and ofafter the ~~legal~~Reorganization, ~~structure~~the ~~was~~Company, ~~completed~~together onwith ~~September 23~~its subsidiaries, ~~2023~~is ~~(“The~~effectively controlled by the same Controlling Group, and therefore the Reorganization is considered as a recapitalization of entities under common control in accordance with Accounting Standards Codification (“ASC”) 805-50-25. The ~~Reorganization~~consolidation ~~involved~~of the ~~incorporation~~Company ~~of Lakeside~~and ~~Holding~~its ~~Limited~~subsidiaries have been accounted for at historical cost and prepared on the ~~transfer~~basis as if the aforementioned ~~shares~~transactions had become effective as of ~~American~~the ~~Bear~~beginning ~~Logistics~~of ~~Corp~~the ~~(“ABL~~first ~~Chicago”)~~period topresented in the ~~Company~~accompanying unaudited condensed consolidated financial statements in accordance with ASC 805-50-45-5.

~~Prior~~On toJuly ~~the Reorganization~~1, ~~Mr. Henry~~ ~~Liu~~2024, the ~~Chief~~Company closed ~~Executive~~its ~~Officer~~IPO ~~(“CEO”),~~of ~~and Mr. Shuai Li~~1, ~~the President~~500,000 ~~each~~shares ~~owned~~of ~~50%~~its ~~equity~~common ~~interest of~~stock ~~the~~at ~~ABL~~an ~~Chicago~~IPO ~~(collectively,~~price ~~the~~of ~~“Controlling Group”)~~$4.50 Onper ~~September 23,~~share ~~2023,~~for ~~the~~aggregate ~~Controlling~~gross ~~Group~~proceeds ~~transferred~~of approximately ~~their~~$6.75 ~~100%~~million ~~equity~~from ~~interest~~the inoffering. ~~ABL~~The ~~Chicago~~total net proceeds to the Company ~~for~~from athe ~~consideration of $1~~IPO,~~000.~~ ~~Upon~~after ~~this~~deducting ~~Reorganization~~discounts, ~~the~~expense ~~Company~~allowance, ~~ultimately~~deferred ~~owns~~IPO ~~100%~~cost ~~equity~~and ~~interest~~expenses, ofwere ~~ABL~~approximately ~~Chicago~~$5.35 million (Note 17).

AsNOTE ~~part of the series of reorganization transactions to be completed before the offering, a 120-for-1~~2 ~~share split was conducted by the Company on March~~— ~~29,~~SUMMARY ~~2024.~~OF ~~After the~~SIGNIFICANT ~~share~~ACCOUNTING ~~split, the issued share capital of the Company consists of $600 divided into 6,000,000 common shares, par value of $0.0001 each.~~POLICIES

~~Before~~Basis ~~and after the Reorganization, the Company, together with its subsidiaries, is effectively controlled by the same Controlling Group, and therefore the Reorganization is considered as a recapitalization~~ of ~~entities~~presentation ~~under common control in accordance with Accounting Standards Codification (“ASC”) 805-50-25. The consolidation of the Company~~ and ~~its~~principles ~~subsidiaries have been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as~~ of ~~the beginning of the first period presented in the accompanying consolidated financial statements in accordance with ASC 805-50-45-5.~~consolidation

OnThe ~~July~~accompanying ~~1, 2024, the Company~~unaudited ~~closed~~condensed ~~its~~consolidated ~~IPO~~financial ofstatements ~~1,500,000~~have ~~shares~~been ofprepared ~~its~~in ~~common~~accordance ~~stock~~with ataccounting anprinciples ~~IPO~~generally ~~price~~accepted ofin ~~$4.50~~the ~~per~~United States ~~share for aggregate gross proceeds~~ of ~~approximately $6.75~~America ~~million from the offering~~(“U.S. ~~The~~GAAP”) ~~total net proceeds to the Company from the IPO, after deducting discounts, expense allowance,~~ and ~~expenses,~~ ~~were~~have ~~approximately~~been ~~$5.79~~consistently ~~million (Note 16)~~applied. AsThe ataccompanying ~~July~~unaudited 1,condensed ~~2024,~~consolidated ~~7,500,000 shares of common stock are issued and outstanding.~~financial Asstatements ofinclude the ~~date~~financial ofstatements ~~this report, the Controlling Group collectively holds 76.0% equity interest~~ of ~~the~~Lakeside ~~Company~~Holding ~~through~~Limited ~~H&L~~and ~~Logistics International~~its ~~LLC which holds 36~~subsidiaries.0% ~~equity~~All ~~interest~~inter-company ofbalances ~~the Company,~~ and ~~Jiushen~~transactions have ~~Transport~~been ~~LLC,~~eliminated ~~which~~upon ~~holds 40~~consolidation.~~0% equity interest of the Company.~~

~~NOTE~~Use ~~2 — SUMMARY~~of OFestimates ~~SIGNIFICANT~~and ~~ACCOUNTING POLICIES~~assumptions

~~Basis~~In preparing the unaudited condensed consolidated financial statements in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of ~~presentation~~assets and ~~principles~~liabilities and disclosure of ~~consolidation~~contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information as of the date of the unaudited condensed consolidated financial statements. Significant accounting estimates required to be made by management include allowance for credit losses, return liabilities, percentage of performance obligation completed at the reporting period, the measurements of convertible debts with accompanying warrants. The Company evaluates its estimates and assumptions on an ongoing basis and its estimates on historical experience, current and expected future conditions and various other assumptions that management believes are reasonable under the circumstances based on the information available to management at the time these estimates and assumptions are made. Actual results and outcomes may differ significantly from these estimates and assumptions.

The accompanying unaudited condensed consolidated financial statements include the accounts of Lakeside Holding Limited and its wholly owned subsidiaries (collectively the “Company”). In the opinion of the Company’s management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these unaudited condensed consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles (“GAAP”) requires the use of management estimates. These unaudited condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and accompanying notes included in its Annual Report on Form 10-K for the fiscal year ended June 30, 2024.Cash

~~Going~~Cash ~~concern~~consists of unrestricted balances held with banks and deposits at banks or other financial institutions, which are available for withdrawal or use and have original maturities of three months or less. The Company maintains its bank accounts in the United States, which are insured by Federal Deposit Insurance Corporation (“FDIC”) at a limit of $250,000 per depositor, and in mainland China, which are insured by the People’s Bank of China Financial Stability Department (“FSD”) while there is a RMB 500,000 deposit insurance limit for a legal entity’s aggregated balance at each bank.

~~The~~As ~~accompanying~~of ~~condensed~~September 30, 2025 ~~consolidated~~and ~~financial~~June ~~statements~~30, ~~have~~2025, ~~been~~the ~~prepared~~Company ~~assuming~~had ~~that~~approximately ~~the~~$4.5 ~~Company~~million ~~will~~and ~~continue~~$5.0 asmillion aof ~~going~~cash ~~concern~~in banks, ~~which~~most ~~contemplates~~held in the banks located in the ~~realization~~mainland of ~~assets~~China and in the ~~discharge~~United States, ofrespectively. ~~liabilities~~Most inof ~~the~~cash ~~normal~~balance ~~course~~as of ~~business~~September ~~for~~30, ~~the~~2025 ~~foreseeable~~and ~~future~~June 30, 2025 were denominated in RMB.

As of March 31, 2025, the Company had an accumulated deficit of approximately $4.4 million and a working capital deficit of approximately $1.8 million. For the nine months ended March 31, 2025, the Company incurred a net loss of approximately $4.4 million and the net cash used in operating activities was approximately $2.2 million. Losses have principally occurred as a result of the substantial resources required for general and administrative expenses associated with our operations. The continuation of the Company as a going concern is dependent upon the continued financial support from its external financing. The Company currently plans to fund its operations and support its ongoing acquisition projects mainly through cash flow from loans, issuance of notes and additional equity financing from outside investors, if necessary, to ensure sufficient working capital. However, there is no assurance that the Company will be successful in securing sufficient funds to sustain the operations.F-7

~~These~~LAKESIDE ~~factors,~~HOLDING ~~among others, raise the substantial doubt regarding~~LIMITED ~~the~~NOTES ~~Company’s~~TO ~~ability~~CONDENSED toCONSOLIDATED ~~continue~~FINANCIAL as a going concern. These condensed consolidated financial statements do not include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of these uncertainties. Management believes that the actions presently being taken to obtain additional funding and implement its strategic plan provide the opportunity for the Company to continue as a going concern.STATEMENTS

6(UNAUDITED)

~~LAKESIDE~~NOTE ~~HOLDING~~2 — SUMMARY ~~LIMITED NOTES~~OF TOSIGNIFICANT ~~CONDENSED~~ACCOUNTING ~~CONSOLIDATED FINANCIAL STATEMENTS~~POLICIES (cont.)

~~(UNAUDITED)~~Accounts receivable, net

~~NOTE~~Accounts 2receivables are carried at the original invoiced amount less an estimated allowance for expected credit losses based on the probability of future collection. The Company reviews its accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. The Company grant credit to customers, without collateral, under normal payment terms. The Company uses a loss rate method to estimate allowance for credit losses for accounts receivable from cross-border freights solutions and aging schedule to estimate the allowance for credit losses for accounts receivable from distribution of pharmaceutical products respectively. Loss-rate ~~— SUMMARY~~approach OFis ~~SIGNIFICANT~~based ~~ACCOUNTING~~on ~~POLICIES~~the historical loss rates. The Company evaluates the expected credit loss of accounts receivable ~~(cont~~based on customer financial condition and historical collection information adjusted for current market economic conditions and forecasts of future economic performance when appropriate.) For those past due balances over one year and other higher risk receivables identified by the Company are reviewed individually for collectability. The Company writes off potentially uncollectible accounts receivable against the allowance for credit losses if it is determined that the amounts will not be collected. As of September 30, 2025 and June 30, 2025, the Company recorded the allowance of credit loss of $171,613 and $87,728, respectively.

~~Use~~Notes ofreceivable, ~~estimates and assumptions~~net

InNotes ~~preparing~~receivable ~~the~~represents ~~condensed~~bank ~~consolidated~~acceptance ~~financial~~notes ~~statements~~issued inby ~~conformity~~financial ~~with~~institutions ~~U.S. GAAP,~~in ~~management makes estimates and assumptions that affect~~ the ~~reported~~People’s ~~amounts~~Republic of ~~assets~~China ~~and~~(“PRC”), ~~liabilities~~typically ~~and~~received ~~disclosure of~~from ~~contingent~~customers ~~assets~~as ~~and~~settlement ~~liabilities~~for attrade ~~the date of the financial statements and the reported amounts of revenues and expenses during the reporting period~~receivables. These ~~estimates~~notes are ~~based~~payable on information as of the date of the condensed consolidated financial statements. Significant accounting estimates required to be made by management include allowance for credit losses, the percentage of performance obligation completed at ~~the~~a ~~reporting~~specified period, the measurements of convertible notes with accompanying warrants. The Company evaluates its estimates and assumptions on an ongoing basis and its estimates on historical experience, current and expected future ~~conditions~~date and ~~various other assumptions that management believes~~ are ~~reasonable~~guaranteed ~~under~~by the ~~circumstances~~issuing ~~based on the information available to management at the time these estimates and assumptions are made~~bank. ~~Actual results and outcomes may differ significantly from these estimates and assumptions.~~

~~The~~As ~~estimated~~of ~~contract~~September ~~asset~~30, ~~is based on the estimated completion percentage~~2025 ofand ~~the~~June ~~performance~~30, ~~obligation.~~2025, ~~We believe that customers simultaneously benefit from~~ the ~~comprehensive~~Company ~~services~~held ~~they~~notes ~~provide.~~receivable ~~For~~totaling ~~customers with goods entering the United States~~$13,873 weand ~~offer customs clearance~~$65, ~~container unloading~~152, ~~storage,~~all ~~unpacking,~~of ~~packing,~~which ~~and~~are ~~transportation services~~expected to ~~customer-specified~~be ~~locations~~collected ~~after~~within ~~the goods arrive at a U.S. seaport or airport. For customers shipping goods overseas, we~~twelve ~~provide~~months ~~cargo space arrangement, storage, packing, export customs clearance,~~ and ~~transportation~~are toclassified ~~the~~as ~~seaport~~current ~~or airport for loading~~assets. The ~~performance~~Company ~~obligation~~recognized is$nil ~~satisfied~~allowance ~~over~~for ~~time~~expected ascredit ~~customers~~loss ~~receive~~on ~~the~~bank ~~benefits~~notes ~~of these services~~ receivable during the ~~process~~reporting ~~of transporting goods from one location to another. As a result~~periods, weas ~~recognize~~all ~~revenue over time. We believe that~~ the ~~methodology~~acceptance ~~employed~~notes iswere ~~comparable~~ endorsed to ~~that~~suppliers offor ~~other~~accounts ~~global~~payable ~~logistics companies and offers faithful depiction of the services rendered to customers~~payments.

~~Cash~~Inventories, net

~~Cash~~Inventories ~~consists~~are ofstated ~~unrestricted~~at ~~balances~~the ~~held~~lower ~~with~~of ~~banks~~cost ~~and~~or ~~deposits~~net atrealizable ~~banks~~value, orusing ~~other~~the ~~financial institutions~~first-in, ~~which~~first ~~are~~out ~~available~~(FIFO) ~~for~~method. ~~withdrawal~~Costs orinclude ~~use~~the ~~and~~cost ~~have~~of ~~original~~pharmaceutical products. ~~maturities~~Any excess of ~~three~~the ~~months~~cost orover ~~less.~~the ~~The~~net ~~Company~~realizable ~~maintains~~value ~~its~~of ~~bank~~each ~~accounts~~item inof ~~the~~inventories ~~United States,~~is ~~which~~recognized ~~are~~as ~~insured~~a byprovision ~~Federal~~for ~~Deposit~~diminution in the value ~~Insurance~~of ~~Corporation~~inventories. ~~(“FDIC”)~~Net ~~and~~realizable invalue ~~mainland~~is ~~China,~~estimated ~~which~~using ~~are~~selling ~~insured~~price byin the ~~People’s~~normal ~~Bank~~course of ~~China~~business ~~Financial~~less ~~Stability Department~~any ~~(“FSD”)~~costs ~~while~~to ~~there~~complete isand sell aproducts. ~~RMB~~As ~~500~~of September 30,~~000~~ ~~deposit~~2025 ~~insurance~~and ~~limit~~June ~~for~~30, a2025, ~~legal~~the ~~entity’s~~Company ~~aggregated~~did ~~balance~~not atrecord ~~each bank~~any inventory provision.

AsInvestment ~~of March 31, 2025 and June 30, 2024, the Company had approximately $1.5 million and $0.1 million of cash~~ in ~~banks,~~other most held in the banks located in the mainland of China and in the United States, respectively. Most of cash balance as of March 31, 2025 and June 30, 2024 are denominated in RMB and USD, respectively.entity

~~Accounts~~The ~~receivable~~Company assesses its investment in ABL Wuhan and determines that no significant influence over investee existed, as defined in ASC 323-10-15-6, and therefore accounts for the investment used the measurement alternative under ASC 321-10-35-2. Under this approach, the investment is measured at cost, and adjusted for impairments, with changes recognized in net income. The investment in other entity that does not report net asset value is subject to qualitative assessment for indicators of impairments.

~~Accounts~~On receivables are carried at the original invoiced amount less an estimated allowance for expected credit losses based on the probability of future collection. The Company reviews its accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. The Company grant credit to customersAugust 4, ~~without collateral~~2023, ~~under normal payment terms. The Company~~ABL ~~uses~~Wuhan aceased ~~loss rate method~~ to ~~estimate~~be the ~~allowance~~Company’s ~~for~~subsidiary ~~credit losses. For those past due balances over one year~~ and ~~other~~became ~~higher risk receivables identified by~~ the Company’s are reviewed individually for collectability. The Company evaluates the expected credit loss of accounts receivable based on customer financial condition and historical collection information adjusted for current market economic conditions and forecasts of future economic performance when appropriate. Losslong-~~rate~~term ~~approach is based on the historical loss rates and expectations of future conditions~~investment. ~~The Company writes off potentially uncollectible accounts receivable against the allowance for credit losses if it is determined that the amounts will not be collected.~~ As of ~~March~~September 3130, 2025 and June 30, ~~2024~~2025, the Company’s ~~recorded~~investment ~~the~~in ~~allowance~~ABL ofWuhan ~~credit~~amounted ~~loss~~to of $6215,~~087~~ 741 and $5415,~~066,~~741 respectively, and no impairment charges was recorded.

~~Inventories, net~~F-8

~~Inventories~~LAKESIDE ~~are~~HOLDING ~~stated at~~LIMITED ~~the~~NOTES ~~lower~~TO ofCONDENSED ~~cost~~CONSOLIDATED orFINANCIAL net realizable value, using the first-in, first out (FIFO) method. Costs include the cost of pharmaceutical products or solutions. Any excess of the cost over the net realizable value of each item of inventories is recognized as a provision for diminution in the value of inventories. Net realizable value is estimated using selling price in the normal course of business less any costs to complete and sell products.STATEMENTS

7(UNAUDITED)

~~LAKESIDE~~NOTE ~~HOLDING~~2 — SUMMARY ~~LIMITED NOTES~~OF TOSIGNIFICANT ~~CONDENSED~~ACCOUNTING ~~CONSOLIDATED FINANCIAL STATEMENTS~~POLICIES (cont.)

~~(UNAUDITED)~~Property and equipment

~~NOTE~~Property ~~2 — SUMMARY~~and OFequipment ~~SIGNIFICANT~~are stated ~~ACCOUNTING~~at ~~POLICIES (cont~~cost less accumulated depreciation.) The straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets, as follows:

Investment in Other entity

		Useful life
Furniture and fixtures		3 – 7 years
Machinery equipment		3 – 5 years
Vehicles		5 years
Software		3 years
Leasehold improvement		Lesser of the lease term or estimated useful lives of the assets

~~The~~Expenditures ~~Company~~for ~~assesses its investment~~maintenance inand ~~ABL~~repairs, ~~Wuhan~~which ~~and~~do ~~determines~~not ~~that~~materially noextend ~~significant~~the ~~influence~~useful ~~over~~lives ~~investee~~of ~~existed~~the assets, asare ~~defined~~charged into ~~ASC 323-10-15-6,~~expense ~~and~~as ~~therefore~~incurred. ~~accounts~~ Expenditures for ~~the~~major renewals ~~investment~~and ~~using~~betterments which substantially extend the ~~cost~~useful ~~method~~life of ~~accounting.~~assets ~~Under~~are ~~the~~capitalized. The cost ~~method~~and ofrelated ~~accounting,~~accumulated ~~the~~depreciation of ~~investment~~assets isretired ~~measured~~or atsold ~~cost,~~are ~~adjusted for~~removed ~~observable~~from ~~price~~the ~~changes~~respective ~~and impairments~~accounts, ~~with~~and ~~changes~~any ~~recognized~~gain inor ~~net~~loss ~~income.~~is ~~The~~recognized ~~investment~~ in other ~~entity~~income ~~that~~or ~~does~~expenses ~~not report~~in ~~net~~the ~~asset~~unaudited ~~value~~condensed isconsolidated ~~subject~~statements toof ~~qualitative~~income ~~assessment~~(loss) ~~for~~and ~~indicators~~other ofcomprehensive ~~impairments~~income (loss).

OnIntangible ~~August 4~~Assets, 2023, ABL Wuhan ceased to be the Company’s subsidiary and became the Company’s long-term investment. As of March 31, 2025 and June 30, 2024, the Company’s investment in ABL Wuhan amounted to $15,741 and no impairment charges was recorded.net

~~Property~~Intangible assets consist primarily of business license acquired from asset acquisition. It grants the Company the right of selling and ~~equipment~~distributing pharmaceutical products and solutions in mainland China.

~~Property~~Intangible ~~and~~assets ~~equipment~~ are ~~stated~~ stated at cost less accumulated ~~depreciation~~amortization. The ~~straight-line depreciation~~license ~~method~~ is ~~used~~amortized tousing ~~compute~~the ~~depreciation~~straight-line method over the estimated useful ~~lives~~economic life of ~~the~~5 ~~assets, as follows:~~years.

		Useful life
Furniture and fixtures		7 years
Machinery equipment		5 years
Vehicles		5 years
Software		3 years
Leasehold improvement		Lesser of the lease term or estimated useful lives of the assets

Accounts payable

~~Expenditures~~The ~~for~~account ~~maintenance and~~payables ~~repairs, which do not materially extend the useful lives of the assets,~~ are derived ~~charged~~from tologistics ~~expense~~and asforwarding ~~incurred.~~service ~~Expenditures~~providers ~~for major renewals~~ and ~~betterments~~from ~~which substantially extend~~ the ~~useful~~pharmaceutical ~~life~~products ~~of assets are capitalized~~supplier. ~~The~~Balances ~~cost~~due ~~and~~to ~~related~~logistics ~~accumulated depreciation~~service ofproviders ~~assets~~are ~~retired~~typically orsettled ~~sold~~within ~~are~~7 ~~removed~~to ~~from~~30 ~~the respective accounts~~days, ~~and~~while ~~any~~payables ~~gain~~to orpharmaceutical ~~loss~~product issuppliers ~~recognized~~are ingenerally ~~other~~settled ~~income or expenses in~~within ~~the~~60 ~~condensed consolidated statements of income (loss) and other comprehensive income (loss)~~days.

~~Intangible~~Impairment ~~Assets, net~~of long-lived asset

~~Intangible~~Long-lived assets, including plant, property and equipment and intangible asset, are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) ~~consist~~indicate that the carrying amount may ~~primarily~~not be fully recoverable or that the useful life is shorter than the Company had originally estimated. When these events occur, the Company evaluates the impairment by comparing the carrying value of ~~business~~the ~~license~~assets ~~purchased~~to an estimate of future undiscounted cash flows expected to be generated from athe ~~third-party~~use of the assets and their eventual disposition. ItIf ~~grants~~the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Company recognizes an impairment loss based on the ~~right~~excess of ~~selling~~the carrying value of the assets over the fair value of the assets. The Company reviews the impairment of its right-of-use assets and ~~distributing~~intangible ~~pharmaceutical~~asset consistent with ~~products~~the approach applied for its other long-lived assets. No impairment charge was recognized for the three months ended September 30, 2025 and ~~solutions~~2024, respectively.

~~Intangible assets are stated at cost less accumulated amortization. The license is amortized using the straight~~F-~~line method over the estimated useful economic life of 5 years.~~9

~~Accounts~~LAKESIDE ~~payable~~HOLDING LIMITED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The account payables are derived from logistics and forwarding service providers and from the pharmaceutical products supplier. Balances due to logistics service providers are typically settled within 7 to 30 days, while payables to pharmaceutical product suppliers are generally settled within 60 days.(UNAUDITED)

8NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

~~LAKESIDE~~Asset ~~HOLDING LIMITED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~acquisition

When an acquisition is related to a single asset or a group of similar assets, or does not meet the definition of a business combination, as the acquired entity does not have an input and a substantive process that together significantly contribute to the ability to create outputs, we account for the acquisition as an asset acquisition. In an asset acquisition, any direct acquisition-related transaction costs are capitalized as part of the purchase consideration. Deferred taxes are recorded on temporary book/tax differences in an asset acquisition using the simultaneous equations method and adjusted the assigned value of the non-monetary assets acquired to include the deferred tax liability (~~UNAUDITED~~see Note 21).

~~NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)~~Leases

~~Impairment~~The Company evaluates the contracts it entered into to determine whether such contracts contain leases at inception. A contract contains a lease if the contract conveys the right to control the use of ~~long-lived asset~~ identified property, plant or equipment for a period of time in exchange for consideration. At commencement, contracts containing a lease are further evaluated for classification as an operating or finance lease where the Company is a lessee.

~~Long-lived assets,~~Operating including plant, property and equipment and intangible asset, are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount may not be fully recoverable or that the useful life is shorter than the Company had originally estimated. When these events occur, the Company evaluates the impairment by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Company recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. The Company reviews the impairment of its right-of-use assets and intangible asset consistent with the approach applied for its other long-lived assets. No impairment charge was recognized for the three and nine months ended March 31, 2025 and 2024, respectively.Leases

~~Deferred~~A ~~offering~~lease for which substantially all the benefits and risks incidental to ownership remain with the lessor is classified by the lease as an operation lease. Operating leases are included in the line items right-of-use (ROU) asset, lease liabilities, current, and lease liabilities, non-current in the unaudited condensed consolidated balance sheet. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. For operating leases, the Company measures its lease liabilities based on the present value of the total lease payments not yet paid discounted based on the more readily determinable of the rate implicit in the lease or its incremental borrowing rate, which is the estimated rate the Company would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease. The Company uses its incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments. The Company measures ROU assets based on the corresponding lease liability adjusted for payments made to the lessor at or before the commencement date, and initial direct costs it incurs under the lease. The Company begins recognizing lease expense when the lessor makes the underlying asset available to the Company. Lease expenses for lease payments are recognized on a straight-line basis over the lease term.

~~Pursuant~~For toleases ~~ASC 340-10-S99-1, incremental~~with ~~offering~~lease ~~costs~~term less ~~directly~~than ~~attributable~~one toyear an(short-term leases), ~~offering~~the ofCompany ~~equity~~has ~~securities~~elected ~~are~~not ~~deferred~~to ~~and~~recognize ~~would~~a belease ~~charged~~liability ~~against~~or ~~the~~ROU ~~gross proceeds~~asset ofon ~~the~~its ~~offering~~unaudited condensed asconsolidated abalance ~~reduction of additional paid-in capital~~sheet. ~~These costs include legal fees related to the registration drafting and counsel~~Instead, ~~consulting~~it ~~fees~~recognizes ~~related to~~ the ~~registration~~lease ~~preparation,~~payments ~~audit~~as ~~fees,~~expenses ~~SEC~~on ~~filing~~a ~~and~~straight-line basis ~~print~~over ~~related~~the ~~costs and exchange~~lease ~~listing costs~~term. ~~The~~Short-term lease ~~deferred offering~~ costs are ~~offset~~immaterial ~~against~~to ~~additional~~its ~~paid-in~~unaudited ~~capital~~condensed ~~upon~~consolidated ~~receipts~~statements of ~~the~~operations ~~capital~~and ~~raised~~cash ~~at IPO closing date~~flows.

~~Asset~~Finance ~~Acquisition~~leases

~~When~~Leases anthat ~~acquisition~~transfer ~~is related~~substantially toall aof ~~single~~the ~~asset~~benefits orand arisks ~~group~~incidental ofto ~~similar~~the ~~assets,~~ownership orof ~~does~~assets ~~not~~are ~~meet~~accounted ~~the~~for ~~definition~~as offinance aleases ~~business combination,~~ as ~~the~~if ~~acquired~~there ~~entity~~was ~~does~~an acquisition ~~not~~of ~~have~~ an ~~input~~asset and aincurrence ~~substantive~~of ~~process~~an ~~that~~obligation ~~together~~at ~~significantly~~the ~~contribute~~inception toof the ~~ability~~lease. toLease ~~create~~cost ~~outputs,~~for wefinance ~~account~~leases ~~for~~where the ~~acquisition~~ asCompany anis ~~asset~~the ~~acquisition.~~lessee includes Inthe anamortization ~~asset~~of ~~acquisition~~the ROU asset, ~~any~~which ~~direct~~is ~~acquisition~~amortized on a straight-~~related~~line basis ~~transaction~~and ~~costs~~recorded ~~are~~to ~~capitalized~~“Depreciation asof ~~part~~ right-of-use finance asset” and interest expense on the ~~purchase~~finance ~~consideration~~lease liability, which is calculated using the interest method and recorded to “Interest expense”. ~~Deferred~~Finance ~~taxes~~lease ROU assets are ~~recorded~~amortized onover ~~temporary~~the ~~book/tax~~shorter ~~differences~~of intheir anestimated ~~asset~~useful ~~acquisition~~lives ~~using~~or the ~~simultaneous~~terms of the respective ~~equations~~leases. ~~method~~If ~~and~~the ~~adjusted~~Company is reasonably certain to exercise the ~~assigned~~option ~~value~~to purchase the underlying asset at the end of lease term, the ~~non-monetary~~finance lease ROU assets ~~acquired~~are amortized to ~~include~~the end of useful life of the ~~deferred~~assets ~~tax~~on ~~liability~~a straight-line basis.

~~Leases~~F-10

~~The~~LAKESIDE ~~Company~~HOLDING ~~evaluates the~~LIMITED ~~contracts~~NOTES itTO ~~entered~~CONDENSED ~~into~~CONSOLIDATED toFINANCIAL determine whether such contracts contain leases at inception. A contract contains a lease if the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. At commencement, contracts containing a lease are further evaluated for classification as an operating or finance lease where the Company is a lessee.STATEMENTS

9(UNAUDITED)

~~LAKESIDE~~NOTE ~~HOLDING~~2 — SUMMARY ~~LIMITED~~OF SIGNIFICANT ~~NOTES~~ACCOUNTING ~~TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~POLICIES (cont.)

~~(UNAUDITED)~~Related parties

~~NOTE~~The ~~2 — SUMMARY~~Company OFadopted ~~SIGNIFICANT~~ASC 850, ~~ACCOUNTING~~Related ~~POLICIES (cont~~Party Disclosures, for the identification of related parties and disclosure of related party transactions.)

~~Operating~~Fair ~~Leases~~value of financial instruments

AASC 820, ~~lease for which substantially~~“Fair ~~all~~Value ~~the~~Measurements” ~~benefits~~(ASC 820) and ~~risks~~ASC 825, ~~incidental~~“Financial toInstruments” ~~ownership~~(ASC 825), ~~remain~~requires ~~with the lessor is classified by the lease as~~ an ~~operation~~entity ~~lease. Operating~~to ~~leases~~maximize ~~are included in~~ the ~~line~~use ~~items right-~~of~~-use (ROU)~~ ~~asset,~~observable ~~lease~~inputs ~~liabilities, current,~~ and ~~lease~~minimize ~~liabilities, non-current in~~ the ~~consolidated balance sheet. ROU assets represent the Company’s right to~~ use anof ~~underlying~~unobservable ~~asset~~inputs ~~for~~when ~~the~~measuring ~~lease~~fair ~~term and lease liabilities represent its obligation to make lease payments arising from the lease~~value. ~~For~~It ~~operating~~establishes ~~leases,~~a ~~the~~fair ~~Company measures its lease~~value ~~liabilities~~hierarchy based on the ~~present~~level ~~value~~ of ~~the total lease payments not yet paid discounted based on the more readily determinable of the rate implicit in the lease or its incremental borrowing rate~~independent, ~~which~~objective isevidence ~~the~~surrounding ~~estimated rate~~ the ~~Company~~inputs ~~would~~used ~~be required~~ to ~~pay~~measure ~~for~~fair ~~a collateralized borrowing equal to the total lease payments over the term of the lease~~value. ~~The~~A ~~Company~~financial ~~uses its incremental borrowing rate based on the information~~instrument’s ~~available~~categorization atwithin ~~lease commencement date in determining~~ the ~~present~~fair value ofhierarchy ~~lease~~is ~~payments. The Company measures ROU assets~~ based onupon the ~~corresponding~~ ~~lease~~lowest ~~liability~~level ~~adjusted~~of ~~for~~input ~~payments~~that ~~made~~is significant to the ~~lessor~~fair atvalue ~~or before the commencement date, and initial direct costs it~~measurement. ~~incurs~~It ~~under~~prioritizes the ~~lease.~~inputs ~~The~~into ~~Company~~three ~~begins~~levels ~~recognizing~~that ~~lease~~may ~~expense~~be ~~when~~used ~~the lessor makes the underlying asset available~~ to ~~the~~measure ~~Company. Lease~~fair ~~expenses for lease payments are recognized on a straight-line basis over the lease term.~~value:

For leases with lease term less than one year (short-term leases), the Company has elected not to recognize a lease liability or ROU asset on its consolidated balance sheet. Instead, it recognizes the lease payments as expenses on a straight-line basis over the lease term. Short-term lease costs are immaterial to its consolidated statements of operations and cash flows.

	Level 1 —	Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities

	Level 2 —	Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

	Level 3 —	Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

~~Finance~~The ~~leases~~carrying value of cash, accounts receivable from third parties and related parties, due to shareholders, other receivables, other receivable from related parties, contract assets, loan receivable balance from a third party, loan receivable from related parties, accounts payable, convertible debts - current, loan payable to a related party, other payables and accrued expenses and other current liabilities approximate fair value due to their short-term nature. For lease liabilities, loan payable to a related party and loans payable, their carrying value approximate the fair value at the year-end, as the interest rates used to discount the host contracts approximate market rates. The Company noted no transfers between levels during any of the periods presented. The Company did not have any instruments that were measured at fair value on a recurring nor non-recurring basis as of September 30, 2025 and June 30, 2025.

~~Leases~~Convertible that transfer substantially all of the benefits and risks incidental to the ownership of assets are accounted for as finance leases as if there was an acquisition of an asset and incurrence of an obligation at the inception of the lease. Lease cost for finance leases where the Company is the lessee includes the amortization of the ROU asset, which is amortized on a straight-line basis and recorded to “Depreciation of right-of-use finance asset” and interest expense on the finance lease liability, which is calculated using the interest method and recorded to “Interest expense”. Finance lease ROU assets are amortized over the shorter of their estimated useful lives or the terms of the respective leases. If the Company is reasonably certain to exercise the option to purchase the underlying asset at the end of lease term, the finance lease ROU assets are amortized to the end of useful life of the assets on a straight-line basis.debts

~~Related~~In ~~parties~~accordance with ASC 470, Debt (“ASC 470”) the Company records its 7% original issue discount secured convertible promissory notes (“Notes”) at the aggregate principal amount, less discount. The Company evaluated the loan portion of the Notes with the conversion feature and the detachable warrant under the guidance of ASC 470-20, “Debt with Conversion and Other Options, as amended by ASU 2020-06” and ASC 815, “Derivatives and Hedging.” The Company determined that the warrant met the criteria for equity classification under ASC 815-40. Accordingly, the fair value of the warrant was recorded as a component of additional paid-in capital. Following the adoption of ASU 2020-06, the Notes are recorded as a single unit within liabilities in the unaudited condensed consolidated balance sheets as the conversion features within the Notes are not derivatives that require bifurcation and the Notes do not involve a substantial premium. The Convertible debt is subsequently accounted for at amortized cost in accordance with the interest method described in ASC 835-30 (see Note 13).

~~The Company adopted ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions.~~F-11

10LAKESIDE HOLDING LIMITED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~LAKESIDE HOLDING LIMITED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~(UNAUDITED)

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (~~UNAUDITED~~cont.)

~~NOTE~~Convertible ~~2 — SUMMARY~~debts ~~OF SIGNIFICANT ACCOUNTING POLICIES~~ (cont.)

~~Fair~~Debt ~~value~~issuance ~~of financial instruments~~costs

~~ASC 820,~~Direct ~~“Fair Value~~and ~~Measurements”~~incremental ~~(ASC 820)~~costs and ~~ASC 825,~~original ~~“Financial~~issue ~~Instruments”~~discounts ~~(ASC 825),~~and ~~requires~~premiums incurred anin ~~entity~~connection towith ~~maximize~~ the ~~use~~issuance of ~~observable~~long-term ~~inputs~~debt ~~and~~are ~~minimize~~deferred ~~the~~and ~~use~~amortized ofto ~~unobservable~~interest ~~inputs~~expense ~~when~~using ~~measuring~~the ~~fair~~effective ~~value.~~interest method Itor, ~~establishes~~if athe ~~fair~~amounts ~~value~~approximate ~~hierarchy based on~~ the ~~level~~effective ofinterest ~~independent~~method, ~~objective~~on ~~evidence~~a ~~surrounding~~straight-line ~~the~~basis. ~~inputs~~All ~~used~~debt toissuance ~~measure~~costs ~~fair~~are ~~value.~~presented ~~A financial instrument’s~~as ~~categorization~~a ~~within~~direct ~~the~~reduction ~~fair~~of ~~value~~debt ~~hierarchy~~on ~~is based upon~~ the ~~lowest~~unaudited ~~level~~condensed ofconsolidated ~~input~~balance ~~that~~sheets. Approximately is$69,602 ~~significant~~were amortized to ~~the fair value measurement.~~interest Itexpense ~~prioritizes~~during the ~~inputs into~~ three ~~levels~~months ~~that~~ended ~~may~~September be30, ~~used to measure fair value:~~2025.

	Level 1 —	Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities
	Level 2 —	Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.
	Level 3 —	Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

Common stock warrants

The ~~carrying~~Company ~~value~~evaluates ~~of cash~~common ~~and~~stock ~~cash~~warrants ~~equivalent,~~under ~~accounts~~ASC ~~receivable~~815-40, Derivatives ~~from third parties~~ and ~~related~~Hedging—Contracts ~~parties,~~in ~~amount~~Entity’s ~~due~~Own ~~from~~Equity. The ~~related~~Company ~~parties, due to shareholders,~~assesses ~~other~~whether ~~receivables,~~common ~~contract~~stock ~~assets,~~warrants ~~loan~~are ~~receivable~~freestanding ~~balance~~financial ~~from~~instruments ~~a third party, accounts payable, convertible notes - current, loan to a related party, other payables, dividend payable~~ and ~~accrued~~whether ~~expenses~~they ~~and~~meet ~~other~~the ~~current~~criteria ~~liabilities approximate fair value due~~ to ~~their short-term nature.~~be ~~For~~classified ~~lease~~in ~~liabilities~~stockholders’ equity, ~~loan~~or ~~payable~~classified toas a ~~related~~liability. ~~party,~~Where ~~convertible~~common ~~notes~~stock ~~and~~warrants ~~loans~~do ~~payable,~~not ~~their~~meet ~~carrying value approximate~~ the ~~fair~~conditions ~~value~~to atbe ~~the~~classified ~~year-end~~in equity, as the ~~interest rates used to discount the host contracts approximate market rates. The~~ Company ~~noted~~assesses nowhether ~~transfers~~they ~~between~~meet ~~levels~~the ~~during~~definition ~~any~~ of ~~the periods presented. The Company did not have any instruments that were measured at fair value on~~ a ~~recurring~~liability ~~nor~~under ~~non-recurring basis~~ASC ~~as of March 31, 2025 and June 30, 2024~~815.

~~Convertible~~Revenue ~~notes~~recognition

InThe ~~accordance~~Company ~~with~~adopted ASC ~~470, Debt ("ASC 470") the Company~~ Topic ~~records~~606 ~~its~~“Revenue 7%from ~~original~~Contracts ~~issue~~with ~~discount secured convertible promissory notes (“Notes~~Customers”) atand ~~the~~all ~~aggregate~~subsequent ~~principal~~ASUs ~~amount,~~that ~~less discount~~modified ASC 606. The ~~Company~~core ~~evaluated~~principle of the guidance ~~loan~~is ~~portion~~that ofan ~~the~~entity ~~Notes~~should ~~and~~recognize ~~the~~revenue ~~accompanying~~to ~~warrant~~depict ~~under~~ the ~~guidance~~transfer of ~~ASC~~promised ~~470-20,~~goods ~~“Debt with~~or ~~Conversion~~services ~~and~~to ~~Other~~customers ~~Options,”~~in ~~and~~an ~~ASC~~amount ~~815, “Derivatives and Hedging.” The Company determined~~ that ~~the warrant~~ ~~met~~reflects the ~~criteria~~consideration ~~for~~to ~~equity~~which ~~classification under ASC 815-40. Accordingly,~~ the ~~fair~~entity ~~value~~expects ofto ~~the~~be ~~warrant~~entitled ~~was recorded as a component of additional paid-~~in ~~capital~~exchange ~~and~~for ~~convertible~~those ~~debt~~goods ~~instrument~~or asservices. aTo ~~liability~~achieve inthat ~~accordance~~core ~~with ASC 470-20 on~~ principle, the ~~issuance~~Company ~~date.~~applies ~~Convertible debt is subsequently accounted for at amortized cost in accordance with~~ the ~~interest~~following ~~method described in ASC 835-30 (see Note 12).~~steps:

~~Common~~Step ~~stock~~1: Identify ~~warrants~~the contract (s) with a customer

~~The~~Step ~~Company evaluates common stock warrants under ASC 815-40,~~2: ~~Derivatives~~Identify ~~and Hedging—Contracts in Entity’s Own Equity. The Company assesses whether common stock warrants are freestanding financial instruments and whether they meet~~ the ~~criteria to be classified in stockholders’~~ ~~equity,~~performance orobligations ~~classified as a liability. Where common stock warrants do not meet the conditions to be classified~~ in ~~equity,~~ the ~~Company assesses whether they meet the definition of a liability under ASC 815.~~contract

11Step 3: Determine the transaction price

~~LAKESIDE~~Step ~~HOLDING~~4: Allocate ~~LIMITED~~the ~~NOTES~~transaction TOprice ~~CONDENSED~~to ~~CONSOLIDATED~~the ~~FINANCIAL~~performance ~~STATEMENTS~~obligations in the contract

Step 5: Recognize revenue when (~~UNAUDITED~~or as) the entity satisfies a performance obligation

~~NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)~~F-12

~~Debt~~LAKESIDE ~~issuance~~HOLDING ~~costs~~LIMITED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Direct and incremental costs and original issue discounts and premiums incurred in connection with the issuance of long-term debt are deferred and amortized to interest expense using the effective interest method or, if the amounts approximate the effective interest method, on a straight-line basis. All debt issuance costs are presented as a direct reduction of debt on the unaudited condensed consolidated balance sheets. Approximately $24,517 was amortized to interest expense during the three months ended March 31, 2025.(UNAUDITED)

~~Revenue~~NOTE ~~recognition~~2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

~~The Company adopted ASC Topic 606 “~~Revenue ~~from~~recognition ~~Contracts with Customers” and all subsequent ASUs that modified ASC 606~~(cont. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the Company applies the following steps:)

~~Step~~The ~~1: Identify~~Company ~~the~~generates ~~contract~~revenue ~~(s)~~from providing cross-border ~~with~~ocean aand ~~customer~~airfreight solutions and distribution of pharmaceutical products. No practical expedients were used when adoption ASC606. Revenue recognition policies are as follows:

~~Step~~Revenue 2:from ~~Identify the~~cross-border freights ~~performance obligations in the contract~~solutions

~~Step~~The 3:Company provides comprehensive services in the United ~~Determine~~States for customers to transport goods from overseas to the United States and from the United States ~~transaction~~to ~~price~~overseas. Operating under service contracts, for goods entering the United States, after the goods arrive at a U.S. seaports or airports, the Company offers customs clearance, container unloading, storage, unpacking, packing, and transportation services to the locations specified by the customers. For customers shipping goods overseas, the Company provides cargo space arrangements, storage, packing, export customs clearance, and arranges transportation to seaports or airports for loading.

~~Step~~The ~~4: Allocate the~~ transaction price tois determined based on the range of services provided and the volume of goods. The Company considers these comprehensive services as one performance ~~obligations~~obligation insince these promises are not distinct within the context of the contract, and the bundle of integrated services represents a combined output. This performance obligation is satisfied over time as customers receive the benefits of these services during the process of transporting goods from one location to another.

~~Step~~For 5:goods entering the United ~~Recognize~~States, the Company determines that the performance period for revenue recognition is between the pickup date and the date of completing delivery. For customers shipping goods overseas with cargo space booking service, the Company determines that the performance period for revenue recognition is between the container or cargo space confirmed date and the date of arrival at destination. For customers shipping goods overseas without cargo space booking service, the Company determines that the performance period for revenue recognition is between pickup date and the date when (the goods depart from airport or ~~as)~~port. The performance period may be estimated if the ~~entity~~date ~~satisfies~~of completing delivery or the departure date or arrival date has not occurred by the reporting date. The Company has determined that revenue recognition over the time in transit provides a reasonable estimate of the transfer of services to its customers as it depicts the pattern of the Company’s performance ~~obligation~~under the contracts with its customers. Determining the performance period and the progress of the transportation as of the reporting date requires management’s estimation and judgement, which may impact the timing of revenue recognition.

~~The~~For ~~Company~~customers ~~generates~~with ~~revenue~~goods ~~from~~entering ~~providing~~the ~~cross-border ocean~~United ~~and~~States, ~~airfreight~~we ~~solutions~~offer customs clearance, container unloading, storage, unpacking, packing, and ~~distribution~~transportation ofservices to ~~pharmaceutical~~customer-specified ~~products~~locations after the goods arrive at a U.S. Noseaport ~~practical~~or ~~expedients~~airport. ~~were~~For customers shipping goods overseas, we provide ~~used~~cargo ~~when~~space ~~adoption~~arrangement, ~~ASC606~~storage, packing, export customs clearance, and transportation to the seaport or airport for loading. ~~Revenue~~The ~~recognition~~performance obligation ~~policies~~is ~~are~~satisfied over time as ~~follows:~~customers receive the benefits of these services during the process of transporting goods from one location to another. As a result, we recognize revenue over time. We believe that the methodology employed is comparable to that of other global logistics companies and offers faithful depiction of the services rendered to customers.

~~Revenue from cross~~F-~~border freights solutions~~13

~~The~~LAKESIDE ~~Company~~HOLDING ~~provides comprehensive~~LIMITED ~~services~~NOTES inTO ~~the~~CONDENSED ~~United States~~CONSOLIDATED ~~for~~FINANCIAL customers to transport goods from overseas to the United States and from the United States to overseas. Operating under service contracts, for goods entering the United States, after the goods arrive at a U.S. seaports or airports, the Company offers customs clearance, container unloading, storage, unpacking, packing, and transportation services to the locations specified by the customers. For customers shipping goods overseas, the Company provides cargo space arrangements, storage, packing, export customs clearance, and arranges transportation to seaports or airports for loading.STATEMENTS

The transaction price is determined based on the range of services provided and the volume of goods. The Company considers these comprehensive services as one performance obligation since these promises are not distinct within the context of the contract, and the bundle of integrated services represents a combined output. This performance obligation is satisfied over time as customers receive the benefits of these services during the process of transporting goods from one location to another.(UNAUDITED)

12NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

~~LAKESIDE~~Revenue ~~HOLDING~~recognition ~~LIMITED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~(cont.)

~~(UNAUDITED)~~Revenue from distribution of pharmaceutical products

~~NOTE~~The ~~2 — SUMMARY~~Company OFgenerates ~~SIGNIFICANT~~revenue ~~ACCOUNTING~~from ~~POLICIES (cont~~the distribution of pharmaceutical and medical products.) The Company orders products from the manufacturer, receives and carries the product at a designated warehouse, and delivers the product directly to its customers’ warehouses or designated locations. Revenue is recognized at a point in time when control of goods is transferred to the customers upon goods delivered to the customers and accepted by the customers.

~~Revenue~~Principal ~~recognition~~and ~~(cont.)~~agent considerations

~~Revenue~~In ~~from cross~~the Company’s transportation business, the Company utilizes independent contractors and third-~~border~~party ~~freights~~carriers and related party carriers in the performances of ~~solutions~~some transportation services as and when needed. U.S. GAAP requires us to evaluate, using a control model, whether the Company itself promises to provide services to the customers (~~cont~~as a principal) or to arrange for services to be provided by another party (as an agent). Based on the Company’s evaluation using a control model, the Company determined that in all of its major business activities, it serves as a principal rather than an agent within their revenue arrangements. Revenue and the associated purchased transportation costs are both reported on a gross basis within the unaudited condensed consolidated statements of income (loss) and comprehensive income (loss).

~~For~~In ~~goods entering~~ the ~~United States,~~Company’s distribution ~~the~~of ~~Company~~pharmaceutical ~~determines~~products ~~that~~business, the ~~performance~~Company ~~period~~determined ~~for~~that ~~revenue~~in ~~recognition~~all isof ~~between~~its ~~the~~major ~~pickup~~business ~~date~~activities, ~~and~~it ~~the~~serves ~~date~~as ofa ~~completing~~principal ~~delivery.~~rather ~~For~~than ~~customers~~an ~~shipping~~agent ~~goods~~within ~~overseas~~their ~~with~~revenue ~~cargo~~arrangements ~~space~~under ~~booking service,~~ the ~~Company~~fact ~~determines~~ that the ~~performance~~Company ~~period~~controls ~~for~~the ~~revenue recognition~~goods isbefore ~~between~~they ~~the~~are ~~container~~transferred orto ~~cargo~~customers, bears ~~space~~inventory ~~confirmed~~risk, ~~date~~ and ~~the~~has ~~date~~discretion ofin ~~arrival~~establishing ~~at destination~~pricing. ~~For~~As ~~customers~~a ~~shipping goods overseas without cargo space booking service~~principal, the Company ~~determines~~recognizes ~~that the performance period for~~ revenue ~~recognition~~on isa ~~between~~gross ~~pickup date~~basis ~~and the date when the goods depart from airport or port. The performance period may be estimated if the date of completing delivery~~within or the ~~departure~~unaudited ~~date~~condensed orconsolidated ~~arrival~~statements ~~date has not occurred by the reporting date. Determining the performance period and the progress~~ of ~~the transportation~~income as(loss) ~~of the reporting date requires management’s estimation~~ and ~~judgement,~~comprehensive ~~which~~income ~~may impact the timing of revenue recognition~~(loss).

~~Revenue~~Disaggregation ~~from distribution~~ of ~~pharmaceutical products~~revenues

~~During~~The ~~the nine months ended March 31, 2025, the~~ Company ~~started to~~disaggregates ~~generate~~its revenue from ~~the~~types ~~distribution~~ of ~~pharmaceutical~~services ~~and~~providing ~~medical products. The Company orders products from the manufacturer, receives~~ and ~~carries~~ the ~~product~~customer atgeographic aof ~~designated~~its ~~warehouse~~customers, ~~and~~as ~~delivers~~ the ~~product~~Company ~~directly~~believes toit ~~its~~best ~~customers’~~depicts ~~warehouses or designated~~how ~~locations.~~the ~~Revenue~~nature, isamount, ~~recognized~~timing ~~when~~and ~~control~~uncertainty of ~~goods is transferred to~~ the ~~customers~~revenue ~~upon~~and ~~goods~~cash ~~delivered~~flows toare ~~the~~affected ~~customers and acceptance~~ by ~~the~~economic ~~customers~~factors.

~~Principal and agent considerations~~F-14

InLAKESIDE ~~the~~HOLDING ~~Company’s transportation~~LIMITED ~~business,~~NOTES ~~the~~TO ~~Company~~CONDENSED ~~utilizes~~CONSOLIDATED ~~independent~~FINANCIAL contractors and third-party carriers and related party carriers in the performances of some transportation services as and when needed. U.S. GAAP requires us to evaluate, using a control model, whether the Company itself promises to provide services to the customers (as a principal) or to arrange for services to be provided by another party (as an agent). Based on the Company’s evaluation using a control model, the Company determined that in all of its major business activities, it serves as a principal rather than an agent within their revenue arrangements. Revenue and the associated purchased transportation costs are both reported on a gross basis within the unaudited condensed consolidated statements of income (loss) and comprehensive income (loss).STATEMENTS

In the Company’s distribution of pharmaceutical products business, the Company determined that in all of its major business activities, it serves as a principal rather than an agent within their revenue arrangements.(UNAUDITED)

~~Disaggregation~~NOTE of2 — SUMMARY ~~revenues~~OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

~~The~~Revenue ~~Company~~recognition disaggregates its revenue from types of services providing and the customer geographic of its customers, as the Company believes it best depicts how the nature, amount, timing and uncertainty of the revenue and cash flows are affected by economic factors(cont.)

The Company’s disaggregation of revenues for three months ended ~~March~~September 3130, 2025 and 2024 is disclosed as below:

13By service/product type

LAKESIDE HOLDING LIMITED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

	For the three months ended September 30,
	2025		2024
Cross-border ocean freights solutions	$	1,434,864	$	1,836,591
Cross-border airfreights solutions		3,327,010		2,244,963
Distribution of pharmaceutical products		1,338,015		-
Total revenue	$	6,099,889	$	4,081,554

(UNAUDITED)

	For the three months ended September 30,
	2025		2024
Timing of revenue recognition:
Service transferred over time	$	4,761,874	$	4,081,554
Product sales at a point in time		1,338,015		-
Total revenue	$	6,099,889	$	4,081,554

~~NOTE~~By ~~2 — SUMMARY~~customer OFgeographic ~~SIGNIFICANT ACCOUNTING POLICIES (cont.)~~location

Revenue recognition (cont.)

	For the three months ended September 30,
	2025		2024
Asia-based customers	$	5,354,874	$	2,809,636
U.S.-based customers		745,015		1,271,918
Total revenue	$	6,099,889	$	4,081,554

~~Disaggregation~~Contract ~~of revenues (cont.)~~assets

ByContract ~~service/product~~assets ~~type~~represent estimated amounts for which the Company has the right to consideration for the services provided while a delivery is still in-transit and has not yet invoiced the customer. The estimated contract asset is based on the estimated completion percentage of the performance obligation. We believe that customers simultaneously benefit from the comprehensive services we provided. Upon completion of the performance obligations, which can vary in duration based upon the method of transport and billing the customer, these amounts become classified within accounts receivable. As of September 30, 2025 and June 30, 2025, the Company recorded contract assets of $49,392 and $119,054 respectively.

	For the three months ended March 31,
	2025		2024
Cross-border ocean freights solutions	$	1,278,903	$	2,116,106
Cross-border airfreights solutions		2,026,961		2,344,657
Distribution of pharmaceutical products		497,276		—
Total revenue	$	3,803,140	$	4,460,763

F-15

	For the three months ended March 31,
	2025		2024
Timing of revenue recognition:
Service transferred over time	$	3,305,864	$	4,460,763
Product sales at a point in time		497,276		—
Total revenue	$	3,803,140	$	4,460,763

LAKESIDE HOLDING LIMITED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~By customer geographic location~~(UNAUDITED)

	For the three months ended March 31,
	2025		2024
Asia-based customers	$	3,348,413	$	3,822,169
U.S.-based customers		454,727		638,594
Total revenue	$	3,803,140	$	4,460,763

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

~~The~~Contract ~~Company’s disaggregation of revenues for the nine months ended March 31, 2025 and 2024 is disclosed as below:~~liabilities

ByContract ~~service~~liabilities ~~type~~represent estimated advances received from customers. The contract liabilities are reported in a net position on a customer-by-customer basis at the end of each reporting period. Contract liabilities are recognized when the Company receives prepayment from customers resulting from purchase order. Contract liabilities will be recognized as revenue when the products are delivered. As of September 30, 2025 and June 30, 2025, the Company recorded contract liabilities of $33,530 and $15,355, which will be recognized as revenue upon delivery of the products and the acceptance by the customers. For the three months ended September 30, 2025, the amounts transferred from contract liabilities to revenue at the beginning of the fiscal period were $15,355.

	For the nine months ended March 31,
	2025		2024
Cross-border ocean freights solutions	$	4,490,299	$	5,632,765
Cross-border airfreights solutions		6,274,622		7,892,577
Distribution of pharmaceutical products		715,362		—
Total revenue	$	11,480,283	$	13,525,342

Refund liabilities and right of returned assets

	For the nine months ended March 31,
	2025		2024
Timing of revenue recognition:
Services transferred over time	$	10,764,921	$	13,525,342
Product sales at a point in time		715,362		—
Total revenue	$	11,480,283	$	13,525,342

Refund liabilities represent the estimated amount of consideration expected to be refunded to customers and are recorded at the time revenue is recognized. Refund allowances are recorded as a reduction in sales with corresponding refund liabilities, and the estimated cost of refunded inventory is recorded as a reduction to cost of sales and an increase of right of return assets. The estimate is based on historical refund patterns, current trends, and contractual terms. If actual results differ from the estimates, the Company revises its estimated refund liabilities accordingly. Each period end, the Company reviews and reassesses the adequacy of its recorded refund liabilities and adjusts the amount as necessary. As of September 30, 2025 and June 30, 2025, the Company recorded refund liabilities of $198,806 and $77,235 respectively on the unaudited condensed consolidated balance sheet. As of September 30, 2025 and June 30, 2025, the Company recorded right of return asset of $80,554 and $141,687 respectively on the unaudited condensed consolidated balance sheet.

ByCost ~~customer~~of ~~geographic location~~revenues

	For the nine months ended March 31,
	2025		2024
Asia-based customers	$	9,126,336	$	8,119,137
U.S.-based customers		2,353,947		5,406,205
Total revenue	$	11,480,283	$	13,525,342

In the Company’s transportation business, cost of revenue primarily consists of the transportation and delivery costs, warehouse service charges, custom declaration and terminal charges, freight arrangement charges and other overhead cost allocation, which includes operating and financing lease-related costs, the depreciation expenses of property and equipment, and others miscellaneous items.

14In the Company’s distribution of pharmaceutical products business, cost of revenues primarily consists of cost of products.

~~LAKESIDE~~Selling ~~HOLDING LIMITED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~expenses

~~(UNAUDITED)~~Selling expenses primarily include salaries expense, advertising expense, software expense, and traveling expense of sales team engaged in developing potential customers and maintaining customer relationships and transportation cost for selling pharmaceutical products.

~~NOTE~~General ~~2 — SUMMARY~~and OFadministrative ~~SIGNIFICANT ACCOUNTING POLICIES (cont.)~~expenses

~~Contract~~General ~~assets~~and administrative expenses primarily include salaries and staff benefits, repair and maintenance expense, depreciation on property and equipment, lease expenses of warehouses used for administrative purpose and office premises, travelling and entertainment, bank charges, legal and professional fees, insurance expenses and other office expenses.

~~Contract assets represent estimated amounts for which the Company has the right to consideration for the services provided while a delivery is still in~~F-transit and has not yet invoiced the customer. Upon completion of the performance obligations, which can vary in duration based upon the method of transport and billing the customer, these amounts become classified within accounts receivable. 16

~~Contract~~LAKESIDE ~~liabilities~~HOLDING LIMITED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Contract liabilities represent estimated advances received from customers. The contract liabilities are reported in a net position on a customer-by-customer basis at the end of each reporting period. Contract liabilities are recognized when the Company receives prepayment from customers resulting from purchase order. Contract liabilities will be recognized as revenue when the products are delivered. As of March 31, 2025, the Company recorded contract liabilities of $42,168, which will be recognized as revenue upon delivery of the products sold. For the nine months ended March 31, 2025, the amounts transferred from contract liabilities to revenue at the beginning of the fiscal period were nil. (UNAUDITED)

~~Cost~~NOTE of2 — SUMMARY ~~revenues~~OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

In the Company’s transportation business, cost of revenue primarily consists of the transportation and delivery costs, warehouse service charges, custom declaration and terminal charges, freight arrangement charges and other overhead cost allocation, which includes operating and financing lease-related401(k) ~~costs, the~~benefit ~~depreciation expenses of property and equipment, and others miscellaneous items.~~plan

In401(k) benefit plan covers substantially all employees and allows voluntary employee contributions up to the ~~Company~~annually adjusted Inland Revenue Service (“IRS”) dollar limit. These voluntary contributions are matched equal to 100% of the first 3% of the employee’s ~~distribution~~compensation contributed and 50% of ~~pharmaceutical~~contributions ~~products~~exceeding ~~business~~3% of eligible compensation, ~~cost~~not to exceed 5% of ~~revenues~~the ~~primarily~~total ~~consists~~eligible ofcompensation. ~~cost~~The ofemployees’ voluntary ~~products,~~contributions ~~freights~~and ~~arrangement~~the ~~charges~~Company’s matching contributions are 100% vested immediately. The Company adopted the 401(k) benefit plan from April 2022. The expense related to matching employees’ contributions was $7,495 and ~~other~~$8,982 ~~overhead~~for the three months ended ~~cost~~September ~~allocation~~30, 2025 and 2024, respectively.

~~Selling~~Employee ~~expenses~~defined contribution plan

~~Selling~~Full-time ~~expenses~~employees ~~primarily~~of ~~include~~the Company ~~salaries~~in ~~expense~~the PRC participate in a government-mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and ~~traveling~~other ~~expense~~welfare benefits are provided to them. Chinese labor regulations require that the Company make contributions to the government for these benefits based on government prescribed percentage of ~~sales~~the ~~team~~employee’s salaries. ~~engaged~~The inCompany ~~developing~~has ~~potential~~no ~~customers~~legal ~~and~~obligation ~~maintaining~~for ~~customer~~the ~~relationships~~benefits beyond the contributions. The total amount was expensed as incurred. For the three months ended September 30, 2025 and ~~transportation~~2024, ~~cost~~employee ~~for~~welfare ~~selling~~contribution ~~pharmaceutical~~expenses amounted to approximately $14,323 ~~products~~and nil, respectively.

~~General~~Value ~~and~~added ~~administrative~~tax ~~expenses~~(“VAT”)

~~General~~Revenue ~~and~~represents ~~administrative~~the invoiced ~~expenses~~value ~~primarily~~of ~~include~~goods ~~salaries~~ and ~~staff benefits~~service, ~~repair~~net ~~and~~of ~~maintenance~~VAT. ~~expense,~~The ~~depreciation~~VAT is based on ~~property~~gross sales price and ~~equipment~~VAT rates range up to 13%, ~~lease~~depending on the type ~~expenses,~~of ~~travelling~~products ~~and~~sold ~~entertainment,~~or ~~bank~~services ~~charges,~~provided. ~~legal~~Entities ~~and~~that ~~professional~~are ~~fees,~~VAT ~~insurance~~general ~~expenses~~taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and ~~other~~output ~~office~~VAT ~~expenses~~is recorded in taxes payable. All of the VAT returns filed by the Company’s subsidiaries in PRC remain subject to examination by the tax authorities for five years from the date of filing.

~~401(k) benefit~~Rental ~~plan~~income

~~401(k) benefit~~The ~~plan~~Company ~~covers substantially~~subleased ~~all employees and allows voluntary employee contributions up to the annually adjusted Inland Revenue Service (“IRS”)~~portion ~~dollar limit. These voluntary contributions are matched equal to 100%~~ of ~~the~~its ~~first~~offices 3%area, ofwarehouse ~~the employee’s compensation contributed~~ and ~~50%~~parking oflots ~~contributions exceeding 3% of eligible compensation, not~~ to ~~exceed~~third 5%parties ofand ~~the~~related ~~total eligible compensation~~parties. The ~~employees’ voluntary contributions and the~~ Company’s ~~matching~~recognizes ~~contributions~~rental ~~are~~income ~~100%~~over ~~vested immediately. The Company adopted~~ the ~~401(k) benefit~~sublease ~~plan from April 2022~~period. ~~The~~For ~~expense related to matching employees’ contributions was $7,960 and $7,320 for~~ the three months ended ~~March~~ 31September 30, 2025 and 2024, ~~respectively.~~the ~~The~~Company ~~expense~~recognized ~~related~~rental toincome ~~matching~~amounted ~~employees’~~to ~~contributions was~~ $2386,~~838~~122 and $21 101,~~372~~067, respectively, ~~for~~included in other income, net on the ~~nine~~ ~~months~~unaudited ~~ended~~condensed ~~March~~consolidated ~~31,~~statements ~~2025~~of income (loss) and ~~2024,~~comprehensive ~~respectively~~income (loss).

15Income taxes

~~LAKESIDE~~The ~~HOLDING~~Company’s ~~LIMITED~~U.S. ~~NOTES~~subsidiaries TOare ~~CONDENSED~~subjected ~~CONSOLIDATED~~to ~~FINANCIAL~~U.S. federal ~~STATEMENTS~~income tax at 21% and the 7.0% state tax and the 2.5% replacement tax in the state of Illinois.

~~(UNAUDITED)~~F-17

~~NOTE~~LAKESIDE ~~2 — SUMMARY~~HOLDING ~~OF SIGNIFICANT~~LIMITED ~~ACCOUNTING~~NOTES ~~POLICIES (cont.)~~TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~Employee defined contribution plan~~(UNAUDITED)

~~Full-time~~NOTE ~~employees~~2 — SUMMARY ofOF ~~the~~SIGNIFICANT ~~Company~~ACCOUNTING in the PRC participate in a government-mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to themPOLICIES (cont. Chinese labor regulations require that the Company make contributions to the government for these benefits based on government prescribed percentage of the employee’s salaries. The Company has no legal obligation for the benefits beyond the contributions. The total amount was expensed as incurred. For the three months ended March 31, 2025 and 2024, employee welfare contribution expenses amounted to approximately $11,456 and nil, respectively. For the nine months ended March 31, 2025 and 2024, employee welfare contribution expenses amounted to approximately $$22,681 and nil, respectively.)

~~Value~~Income ~~added~~taxes ~~tax~~ (~~“VAT”~~cont.)

~~Revenue~~The ~~represents~~Company’s ~~the~~PRC ~~invoiced~~subsidiaries ~~value~~are ofgoverned ~~goods~~by ~~and~~the ~~service,~~income ~~net~~tax laws of ~~VAT.~~the ~~The~~PRC ~~VAT~~and isthe ~~based~~income ontax ~~gross~~provision ~~sales~~in ~~price~~respect ~~and~~to ~~VAT~~operations ~~rates~~in ~~range~~the upPRC ~~to 13%,~~is ~~depending~~calculated onat the ~~type~~ ofapplicable ~~products~~tax ~~sold~~rates oron ~~services~~the ~~provided.~~taxable ~~Entities~~income ~~that~~for ~~are~~the ~~VAT~~periods ~~general~~based ~~taxpayers~~on ~~are~~existing ~~allowed~~legislation, tointerpretations ~~offset~~and ~~qualified~~practices ~~input~~in ~~VAT~~respect ~~paid to suppliers~~thereof. ~~against~~Under ~~their~~the ~~output~~Enterprise ~~VAT~~Income ~~liabilities.~~Tax ~~Net~~Laws ~~VAT~~of ~~balance~~the ~~between~~PRC ~~input~~(the ~~VAT~~“EIT ~~and~~Laws”), ~~output~~domestic ~~VAT~~enterprises isand ~~recorded~~Foreign inInvestment ~~taxes payable. All of the VAT returns~~Enterprises ~~filed by~~ (the ~~Company’s~~“FIE”) ~~subsidiaries~~are inusually ~~PRC remain~~ subject to ~~examination~~25% byenterprise ~~the~~income tax ~~authorities for five years from the date of filing~~rate.

~~Rental~~Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

The Company ~~subleased~~accounts ~~portion~~for ofuncertain ~~its~~tax ~~offices~~positions ~~area~~in accordance with FASB ASC Topic No. 740, ~~warehouse~~Accounting ~~and~~for ~~parking~~Uncertainty ~~lots~~in toIncome ~~third~~Taxes. ~~parties~~A ~~and~~tax ~~related~~position ~~parties~~is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The ~~Company~~amount ~~recognizes~~recognized ~~rental~~is ~~income~~the ~~over~~largest ~~the~~amount ~~sublease~~of tax benefit that is greater than 50% likely of being ~~period~~realized on examination. For tax positions not meeting the ~~three~~“more ~~months~~likely ~~ended~~than ~~March~~not” 31test, no tax benefit is recorded. As of September 30, 2025 and ~~2024~~June 30, 2025, the Company ~~recognized~~did ~~rental~~not ~~income~~have ~~amounted~~a toliability ~~$95,279~~for ~~and~~unrecognized ~~$99,004,~~tax ~~respectively~~benefits. ~~For~~ ~~the~~It ~~nine~~is ~~months~~the ~~ended~~Company’s ~~March~~policy to ~~31,~~include ~~2025~~penalties and ~~2024,~~interest ~~the~~expense ~~Company~~related ~~recognized~~to ~~rental~~ income ~~amounted~~taxes toas ~~$283,573~~a component of other expense and ~~$179~~interest expense,~~687,~~ respectively, as necessary. The Company’s historical tax years will remain open for examination by the local authorities until the statute of limitations has passed.

~~Income~~Statutory ~~taxes~~reserves

~~Before~~The ~~the~~Company’s ~~Reorganization, the~~PRC ~~Company~~subsidiaries ~~has~~are ~~elected~~required to beallocate ~~taxed~~at asleast 10% anof Stheir ~~Corporation~~after-tax ~~for~~profit ~~federal~~to ~~and~~the ~~state~~general ~~income~~reserve ~~tax~~in ~~purposes.~~accordance Aswith ~~an S Corporation,~~ the ~~Company~~PRC ~~is not~~accounting ~~subject~~standards ~~to federal income tax~~ and ~~state tax in Illinois~~regulations. ~~However,~~The ~~Illinois~~allocation ~~allows subchapter S corporations~~ to ~~elect to pay~~ the ~~Pass-through Entity (PTE)~~general ~~tax~~reserve atwill ~~entity~~cease ~~level~~if ~~for~~such ~~tax years~~reserve ~~ending~~has onreached ~~or after December 31, 2021 and beginning prior~~ to ~~January 1, 2026. The PTE tax rate is equal to 4.95~~50% of the ~~taxpayer’s~~registered ~~net~~capital ~~income~~of ~~for~~respective ~~the taxation year~~company. ~~The~~These Sreserves ~~corporation~~can only ~~making~~be ~~the~~used ~~election is liable~~ for ~~paying~~specific ~~the~~purposes ~~PTE tax,~~ and ~~the~~are ~~shareholders~~not ~~will~~transferable ~~receive~~to ~~credit for~~ the ~~amount~~Company ofin ~~PTE~~form ~~tax credit paid but shall be liable to pay any remaining tax based on their share~~ of ~~the~~loans, ~~pass-through entity’s~~advances, ~~income~~or ~~and~~cash ~~credits~~dividends. ~~Illinois~~There ~~also~~is ~~taxes 1.5% replacement tax~~no onsuch Sregulation ~~corporation’s~~of ~~net~~providing ~~taxable~~statutory ~~income~~reserve ~~and franchise tax based on the corporation’s paid-~~in~~-capital for~~ ~~the~~United ~~12 months prior to the annual report filing date~~States. The ~~franchise~~statutory ~~tax~~reserve isas ~~not~~determined ~~applicable~~pursuant ~~for~~to ~~the~~PRC ~~Company.~~statutory ~~After~~laws ~~the~~totaled approximately ~~Reorganization~~$74,608 ~~the~~and ~~Company~~$63,416 ~~is subjected~~as toof ~~U.S. federal~~September ~~income~~30, ~~tax~~2025 ~~at 21%~~ and ~~the~~June ~~7.0%~~30, ~~state~~2025, ~~tax and the 2~~respectively.~~5% replacement tax in the state of Illinois.~~

~~The~~Comprehensive ~~Company’s PRC subsidiary is governed by the~~ income tax laws of the PRC and the income tax provision in respect to operations in the PRC is calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under the Enterprise Income Tax Laws of the PRC (~~the “EIT Laws”~~loss), domestic enterprises and Foreign Investment Enterprises (the “FIE”) are usually subject to a unified 25% enterprise income tax rate while preferential tax rates, tax holidays and even tax exemption may be granted on case-by-case basis.

~~Income~~Comprehensive ~~tax~~income ~~expense is the~~(loss) ~~total~~consists of ~~the~~two ~~current~~components, ~~year~~net income ~~tax~~(loss) ~~due or refundable~~ and ~~the~~other ~~change~~comprehensive inincome ~~deferred~~(loss). ~~tax~~Other ~~assets~~comprehensive ~~and~~income ~~liabilities.~~(loss) ~~Deferred~~refers ~~tax~~to ~~assets and~~revenue, ~~liabilities~~expenses, ~~are~~gains ~~the~~and ~~expected~~losses ~~future~~that ~~tax~~under ~~amounts~~GAAP ~~for~~are ~~the~~recorded ~~temporary~~as ~~differences~~an ~~between~~element ~~carrying~~of ~~amounts~~equity ~~and~~but ~~tax~~are ~~bases~~excluded offrom ~~assets~~net ~~and~~income. ~~liabilities~~Other comprehensive ~~computed~~income ~~using~~(loss) ~~enacted~~consists ~~tax~~of ~~rates.~~a Aforeign ~~valuation~~currency ~~allowance,~~translation ifadjustment ~~needed,~~resulting ~~reduces~~from ~~deferred~~the ~~tax~~Company ~~assets~~not tousing the ~~amount~~U.S. ~~expected~~dollar toas beits ~~realized~~functional currencies.

The Company accounts for uncertain tax positions in accordance with FASB ASC Topic No. 740, Accounting for Uncertainty in Income Taxes. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. As of March 31, 2025 and June 30, 2024, the Company did not have a liability for unrecognized tax benefits. It is the Company’s policy to includes penalties and interest expense related to income taxes as a component of other expense and interest expense, respectively, as necessary. The Company’s historical tax years will remain open for examination by the local authorities until the statute of limitations has passed.F-18

16LAKESIDE HOLDING LIMITED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~LAKESIDE HOLDING LIMITED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~(UNAUDITED)

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (~~UNAUDITED~~cont.)

~~NOTE~~Basic ~~2 — SUMMARY~~and OFdiluted ~~SIGNIFICANT ACCOUNTING~~earnings ~~POLICIES~~ (~~cont.~~loss) per share

~~Statutory~~The ~~reserves~~Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income (loss) divided by the weighted average common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. For the three months ended September 30, 2025 and 2024, the Company reported a net loss. As a result, all potentially dilutive securities, including the convertible debenture, were excluded from the calculation of diluted loss per share because their inclusion would have been antidilutive.

~~The~~Foreign ~~Company’s~~currency PRC subsidiaries are required to allocate at least 10% of their after-tax profit to the general reserve in accordance with the PRC accounting standards and regulations. The allocation to the general reserve will cease if such reserve has reached to 50% of the registered capital of respective company. These reserves can only be used for specific purposes and are not transferable to the Company in form of loans, advances, or cash dividends. There is no such regulation of providing statutory reserve in United States.transactions

~~Comprehensive~~Our ~~income~~reporting (currency is the U.S. dollar. The functional currency of our operations, except for Sichuan Hupan and Hupan Pharmaceutical, is the U.S. dollar. The functional currency of Sichuan Hupan and Hupan Pharmaceutical is the RMB. The assets, liabilities, revenues, and expenses of Sichuan Hupan and Hupan Pharmaceutical are remeasured in accordance with ASC 830. For the three months ended September 30, 2025, assets and liabilities of Sichuan Hupan and Hupan Pharmaceutical are translated into U.S. dollars based upon exchange rates prevailing at the end of the year. Revenues and expenses of Sichuan Hupan and Hupan Pharmaceutical are translated at average exchange rates during the reporting period. The resulting translation adjustment is included in accumulated other comprehensive loss).

~~Comprehensive~~The ~~income~~following ~~(loss) consists~~table ~~of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue,~~outlines ~~expenses,~~the ~~gains~~currency ~~and~~exchange ~~losses~~rates that ~~under~~were ~~GAAP~~used ~~are~~in ~~recorded~~creating ~~as an element of equity but are excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from~~ the ~~Company~~unaudited ~~not~~condensed ~~using~~consolidated ~~the~~financial ~~U.S.~~statements ~~dollar~~in asthis ~~its functional currencies.~~report:

Basic and diluted earnings (loss) per share

		September 30, 2025
Balance sheet items, except for equity accounts		US$1=RMB 7.1190
Items in the statements of income and cash flows		US$1=RMB 7.1570

The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income (loss) divided by the weighted average common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.

		September 30, 2024
Balance sheet items, except for equity accounts		US$1=RMB 7.0176
Items in the statements of income and cash flows		US$1=RMB 7.1641

~~Foreign~~Commitments ~~currency~~and ~~transactions~~contingencies

~~Our~~In ~~reporting currency is~~ the ~~U.S.~~normal ~~dollar.~~course ~~The functional currency~~ of ~~our operations~~business, the ~~except~~Company ~~for~~is ~~Lakeside~~subject ~~Sichuan~~to ~~and Hupan Pharmaceutical~~contingencies, issuch ~~the~~as ~~U.S. dollar. The~~legal ~~functional~~proceedings ~~currency of Lakeside Sichuan~~ and ~~Hupan~~claims ~~Pharmaceutical~~arising isout ~~the~~of ~~RMB.~~its ~~The assets~~business, ~~liabilities,~~which ~~revenues,~~cover ~~and~~a ~~expenses~~wide ofrange ~~Lakeside~~of ~~Sichuan~~matters. ~~and~~Liabilities ~~Hupan~~for ~~Pharmaceutical~~contingencies are ~~remeasured~~recorded inwhen ~~accordance~~it ~~with~~is ~~ASC 830.~~probable ~~For~~that ~~the~~a ~~period~~liability ~~ended~~has ~~March~~been ~~31,~~incurred ~~2025, assets~~ and ~~liabilities of Lakeside Sichuan and Hupan Pharmaceutical are translated into U.S. dollars based upon exchange rates prevailing at~~ the ~~end~~amount of ~~each~~ ~~period. Revenues and expenses of Lakeside Sichuan and Hupan Pharmaceutical are translated at average exchange rates during~~ the ~~reporting~~assessment ~~period.~~can ~~The~~be ~~resulting~~reasonably ~~translation adjustment is included in accumulated other comprehensive loss~~estimated.

~~The~~If ~~following~~the ~~table~~assessment ~~outlines~~of a contingency ~~the~~indicates ~~currency~~that ~~exchange~~it ~~rates~~is probable that ~~were~~a ~~used~~material inloss ~~creating~~is incurred and the ~~condensed~~amount ~~consolidated~~of the liability can be estimated, then the estimated liability is accrued in the Company’s financial statements. inIf ~~this~~the ~~report:~~assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingency liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed.

	March 31, 2025
Balance sheet items, except for equity accounts		US$1=RMB 7.2567
Items in the statements of income and cash flows		US$1=RMB 7.2080

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed.

17F-19

LAKESIDE HOLDING LIMITED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

~~Commitments~~Concentrations and ~~contingencies~~risks

~~In the normal course of business, the Company is subject to contingencies, such as legal proceedings and claims arising out of its business, which cover~~ a ~~wide range of matters~~. ~~Liabilities~~Concentration ~~for contingencies are recorded when it is probable that a liability has been incurred and the amount~~ of ~~the~~credit ~~assessment can be reasonably estimated.~~risk

IfThe ~~the~~Company ~~assessment~~estimates ~~of a contingency~~credit ~~indicates~~losses ~~that~~over itthe iscontractual ~~probable~~period ~~that~~in awhich ~~material~~the ~~loss~~Company is ~~incurred~~exposed ~~and~~to ~~the~~credit ~~amount~~risk ofvia ~~the~~a ~~liability~~contractual ~~can~~obligation beto ~~estimated~~extend credit, ~~then~~unless that ~~the~~obligation ~~estimated liability~~ is ~~accrued~~unconditionally incancellable by the Company’s. ~~financial~~Assets ~~statements.~~that Ifpotentially subject the ~~assessment~~Company ~~indicates~~to ~~that~~significant aconcentration of ~~potentially~~credit ~~material~~risk ~~loss~~primarily ~~contingency~~consist isof ~~not probable~~cash, ~~but~~accounts isreceivable, ~~reasonably~~contract ~~possible~~assets, orother isreceivable, ~~probable~~other ~~but~~receivable ~~cannot~~from berelated ~~estimated~~parties, loan ~~then~~receivable ~~the~~balance ~~nature~~from ofa ~~the~~third ~~contingency~~party ~~liability,~~and ~~together~~loans ~~with an~~receivable ~~estimate~~from ofrelated ~~the~~parties. ~~range~~The ofCompany ~~possible~~has ~~loss,~~designed iftheir ~~determinable~~credit ~~and~~policies with ~~material,~~an ~~would~~objective beto ~~disclosed~~minimize their exposure to credit risk.

~~Loss~~The ~~contingencies~~maximum ~~considered~~exposure of such ~~remote~~assets ~~are~~to ~~generally~~credit ~~not~~risk ~~disclosed~~is ~~unless~~their ~~they~~carrying ~~involve~~amounts ~~guarantees~~at the balance sheet dates. The Company maintains majority of bank accounts in mainland China, where there is a RMB 500,000 deposit insurance limit for a legal entity’s aggregated balance at each bank. As of September 30, 2025 and June 30, 2025, three and four banks account exceeded the insured limit in ~~which~~mainland ~~case~~China, respectively. To limit the ~~nature~~exposure to ofcredit risk relating to deposits, the ~~guarantee~~Company ~~would~~primarily beplaces ~~disclosed~~cash deposits with large financial institutions in the mainland China.

~~Concentrations~~The Company also has the bank accounts at financial institutions in the United States, where there is $250,000 standard deposit insurance coverage limit per depositor, per FDIC-insured bank and ~~risks~~per ownership category. As of September 30, 2025 and June 30, 2025, no bank balance exceeded the insured limit. To limit the exposure to credit risk relating to deposits, the Company primarily places cash deposits with large financial institutions in the United States.

The Company has adopted a. credit ~~Concentration~~policy of dealing with creditworthy counterparties to mitigate the credit risk from defaults. The management team conducts credit evaluations of its customers, and generally does not require collateral or other security from them. The Company establishes an accounting policy to provide for allowance for credit loss based on the individual customer’s financial condition, credit history, and the future economic conditions. Other receivable and loan receivable from related parties are monitored on an ongoing basis with the result that the Company’s exposure to impairment is not significant. As of September 30, 2025 and June 30, 2025, none of the Company’s other receivable and loan receivable from related parties are impaired.

The Company estimates credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Companyb. ~~Assets~~Foreign ~~that~~exchange ~~potentially subject the Company to significant concentration of credit~~ risk primarily consist of cash, accounts receivable, contract assets, other receivable, loan receivable balance from a third party and amounts due from related parties. The Company has designed their credit policies with an objective to minimize their exposure to credit risk.

~~The~~Our ~~maximum~~subsidiaries ~~exposure~~in ofPRC ~~such~~have ~~assets~~functional tocurrency ~~credit~~in ~~risk~~RMB. isPRC ~~their~~subsidiaries’ ~~carrying~~expense ~~amounts~~transactions atare ~~the~~denominated ~~balance~~in ~~sheet~~RMB ~~dates~~and their assets and liabilities are denominated in RMB. ~~The~~RMB ~~Company~~is ~~maintains~~not ~~majority~~freely ofconvertible ~~bank~~into ~~accounts~~foreign incurrencies. ~~mainland China,~~The ~~where~~value ~~there~~of isthe aChinese ~~RMB~~Yuan ~~500,000~~against ~~deposit~~the ~~insurance~~U.S. dollar is ~~limit~~affected ~~for~~by athe ~~legal~~changes ~~entity’s~~in ~~aggregated~~China ~~balance~~and atUnited States ~~each~~economic ~~bank~~conditions. AsWe ofdo ~~March~~not ~~31, 2025~~believe ~~and~~that ~~June~~we ~~30,~~currently ~~2024,~~have ~~three~~any ~~bank~~significant direct ~~account~~foreign ~~exceeded~~exchange ~~the~~risk ~~insured~~and ~~limit.~~have Tonot ~~limit~~used ~~the~~any ~~exposure~~derivative tofinancial ~~credit~~instruments ~~risk~~to ~~relating~~hedge exposure to ~~deposits~~such risk. Also, ~~the~~considering ~~Company~~the ~~primarily~~volume ~~places~~of ~~cash~~its ~~deposits~~business, ~~with~~the ~~large~~impact ~~financial~~of ~~institutions~~foreign inexchange ~~the~~risk ~~mainland~~is ~~China~~limited.

The Company also has the bank accounts at financial institutions in the United States, where there is $250,000 standard deposit insurance coverage limit per depositor, per FDIC-insured bank and per ownership categoryc. AsInterest ofrate ~~March 31, 2025 and June 30, 2024, no bank balance exceeded the insured limit. To limit the exposure to credit~~ risk ~~relating to deposits, the Company primarily places cash deposits with large financial institutions in the United States.~~

The ~~Company~~interest ~~has~~rate ~~adopted~~risk ais ~~credit~~the ~~policy~~risk ofthat ~~dealing~~future ~~with~~cash ~~creditworthy~~flows ~~counterparties~~will tofluctuate ~~mitigate~~as ~~the~~a ~~credit~~result ~~risk~~of ~~from~~changes ~~defaults~~in market interest rates. ~~The~~Our ~~management~~exposure ~~team~~to ~~conducts~~interest ~~credit evaluations~~rate ofrisk ~~its~~primarily relates ~~customers,~~to ~~and~~the ~~generally~~interest ~~does~~rates ~~not~~from ~~require~~our ~~collateral~~lessors, orconvertible ~~other~~debenture ~~security~~and ~~from~~our ~~them~~private lenders. The ~~Company~~shareholder ~~establishes~~loans anbear ~~accounting~~no interest. ~~policy~~We tohave ~~provide~~not ~~for~~been ~~allowance~~exposed ~~for~~to ~~credit~~material ~~loss~~risks ~~based~~due onto the ~~individual~~fact ~~customer’s~~that ~~financial~~our ~~condition,~~leasing ~~credit~~obligations’ ~~history,~~interest rate and the ~~future~~ ~~economic~~private ~~conditions. Due from related parties~~loan’s interest ~~balances~~are ~~and~~fixed ~~loan~~at ~~receivable~~commence ~~balance~~date ~~from~~of athe ~~third~~leases ~~party~~and ~~are~~loans ~~monitored~~and onwe ~~an ongoing~~have ~~basis~~not ~~with~~used ~~the~~any ~~result~~derivative ~~that~~financial ~~the~~instruments ~~Company’s exposure~~ to ~~impairment~~manage isour ~~not~~interest risk ~~significant~~exposure. ~~As of March 31~~However, ~~2025~~we ~~and~~cannot ~~June~~provide ~~30,~~assurance ~~2024, none~~that ofwe ~~the~~will ~~Company’s~~not ~~due~~be ~~from~~exposed ~~related~~to ~~parties~~material ~~and~~risks ~~loan~~due ~~receivable~~to ~~balance~~changes ~~from~~in amarket ~~third~~interest ~~party~~rate in ~~are~~the ~~impaired~~future.

18F-20

LAKESIDE HOLDING LIMITED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

Concentrations and risks (cont.)

bd. ~~Foreign~~Liquidity ~~exchange~~ risk

~~Our~~Liquidity ~~subsidiaries~~risk inarises ~~PRC have~~through ~~functional~~the ~~currency~~excess inof ~~RMB.~~financial ~~PRC~~obligations ~~subsidiaries’~~over ~~expense~~available ~~transactions~~financial ~~are~~assets ~~denominated~~due inat ~~RMB~~any ~~and~~point ~~their~~in ~~assets~~time. ~~and~~Our ~~liabilities~~objective ~~are denominated~~ in ~~RMB.~~managing ~~RMB~~liquidity risk is ~~not~~to ~~freely~~maintain ~~convertible~~sufficient ~~into~~readily ~~foreign~~available ~~currencies.~~reserves ~~The~~in ~~value~~order ofto ~~the~~meet ~~Chinese~~our ~~Yuan~~liquidity ~~against~~requirements ~~the~~at ~~U.S. dollar~~any ispoint ~~affected by~~in ~~the~~time. ~~changes~~The inCompany ~~China~~ monitors and ~~United States~~analyzes ~~economic~~its ~~conditions.~~cash Weflow doposition, ~~not~~its ~~believe~~ability ~~that~~to wegenerate ~~currently~~sufficient ~~have~~revenue ~~any~~sources ~~significant~~in ~~direct~~the ~~foreign exchange~~future ~~risk~~and its operating and ~~have~~capital ~~not~~expenditure commitments. ~~used~~The ~~any~~Company ~~derivative~~typically ~~financial~~funds ~~instruments~~the toworking ~~hedge~~capital ~~exposure~~needed toprimarily ~~such~~from ~~risk.~~operations, ~~Also~~loans, ~~considering~~shareholder ~~the~~advances ~~volume~~to ofthe ~~its business~~Company, as ~~the~~well ~~impact~~as ofthe ~~foreign~~external ~~exchange~~financing ~~risk is limited~~activities.

ce. ~~Interest~~Significant ~~rate~~customers ~~risk~~and suppliers

The ~~interest~~Company ~~rate~~had ~~risk~~two third-party isand ~~the~~no ~~risk~~related-party ~~that~~customer ~~future~~generated ~~cash~~over ~~flows~~10% ~~will fluctuate as a result~~ of ~~changes~~the inCompany’s ~~market~~total ~~interest~~revenue ~~rates.~~for ~~Our exposure to interest rate risk primarily relates to~~ the ~~interest~~three ~~rates~~months ~~from~~ended ~~our lessors~~September ~~and~~30, ~~our private lenders~~2025. The ~~shareholder~~Company ~~loans~~had ~~bear~~two nothird-party ~~interest.~~customers Weand ~~have~~no ~~not~~related-party ~~been~~customer ~~exposed~~generated toover ~~material~~10% ~~risks~~of ~~due to~~ the ~~fact that our leasing obligations~~Company’ ~~interest rates and private loan’~~s ~~interest~~accounts receivable ~~are~~as ~~fixed at commence date~~ of ~~the~~September ~~leases and loans and we have not used any derivative financial instruments to manage our interest risk exposure. However~~30, ~~we cannot provide assurance that we will not be exposed to material risks due to changes in market interest rate in the future~~2025.

dThe Company had two third-party customers and one related-party customer generated over 10% of the Company’s total revenue for the three months ended September 30, 2024. ~~Liquidity~~The ~~risk~~Company had three third-parties and no related-party customer customers generated over 10% of the Company’s accounts receivable as of June 30, 2025.

~~Liquidity~~The ~~risk~~Company ~~arises~~had ~~through~~one third-party ~~the~~supplier ~~excess~~and ofno ~~financial~~related-party ~~obligations~~supplier represented over ~~available~~10% ~~financial~~of ~~assets~~the ~~due~~Company’s atcost ~~any~~of ~~point~~revenue infor ~~time.~~the ~~Our~~three ~~objective~~months inended ~~managing liquidity risk~~September is30, ~~to maintain sufficient readily available reserves in order to meet our liquidity requirements at any point in time~~2025. The Company ~~monitors and~~had ~~analyzes~~one ~~its~~third-party ~~cash~~supplier ~~flow~~and ~~position,~~no ~~its~~related-party ~~ability~~supplier torepresented ~~generate~~over ~~sufficient~~10% ~~revenue~~of ~~sources in~~ the ~~future~~Company’s ~~and its operating and capital expenditure~~accounts ~~commitments.~~payable ~~The~~as ~~Company~~of ~~typically~~September ~~funds the working capital needs primarily from operations~~30, ~~loans, as well as shareholder advances to the Company~~2025.

~~Recent~~The ~~accounting~~Company ~~pronouncements~~had no third-party supplier and no related-party supplier represented over 10% of the Company’s cost of revenue for the three months ended September 30, 2024. The Company had one third-party supplier and no related-party supplier represented over 10% of the Company’s accounts payable as of June 30, 2025.

~~The~~Recent ~~Company considers the applicability and impact of all~~ accounting ~~standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued.~~pronouncements

InThe ~~November~~Company ~~2023,~~considers the ~~FASB~~ ~~issued~~applicability ~~ASU~~and ~~No.~~impact ~~2023-07,~~of ~~“Improvements~~all toaccounting ~~Reportable~~standards ~~Segment Disclosures” (Topic 280). This ASU~~ updates ~~reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker~~ (“~~CODM~~ASUs”) ~~and included within each reported measure of a segment’s profit or loss~~. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources. The ASU is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Adoption of the ASU should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is also permitted. This ASU will likely result in us including the additional required disclosures when adopted. Management isperiodically ~~currently~~reviews ~~evaluating~~new ~~the~~accounting ~~provisions~~standards ofthat ~~this~~are ~~ASU and expect to adopt them for the year ending June 30, 2025~~issued.

19In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. Under ASU 2020-06, the embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Derivatives and Hedging (Topic 815), or that do not result in substantial premiums accounted for as paid-in capital. Consequently, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. The guidance also requires the if-converted method to be applied for all convertible instruments. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted. Adoption of the standard requires using either a retrospective or a retrospective approach. The Company has adopted ASU 2020-06 using the retrospective approach during the three months ended September 30,2025.

~~LAKESIDE HOLDING LIMITED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~F-21

~~(UNAUDITED)~~LAKESIDE HOLDING LIMITED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES~~ (~~cont.~~UNAUDITED)

~~Recent~~NOTE ~~accounting~~2 — SUMMARY ~~pronouncements~~OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

InRecent ~~December~~accounting ~~2023, the FASB issued ASU No. 2023-09, “Improvements to Income Tax Disclosures”~~ pronouncements (~~Topic 740)~~cont. The ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income tax paid. The ASU is effective on a prospective basis for annual periods beginning after December 15, 2024. Early adoption is also permitted for annual financial statements that have not yet been issued or made available for issuance. This ASU will likely result in the required additional disclosures being included in the Company’s condensed consolidated financial statements, once adopted.)

~~The~~In April 2024, the Company adopted ~~does~~ASU ~~not~~2023-07, ~~believe~~“Segment ~~other~~Reporting ~~recently~~(Topic ~~issued~~280): ~~but~~Improvements ~~not~~to ~~yet~~Reportable ~~effective accounting~~Segment ~~standards~~Disclosures,” ifwhich ~~currently~~improves ~~adopted,~~reportable segment ~~would~~disclosure ~~have~~requirements. aThe ~~material~~amendments ~~effect~~require onthe disclosure of (1) significant segment expenses that are regularly provided to the ~~Company’s~~CODM ~~unaudited~~and ~~condensed~~included ~~consolidated~~within ~~balance~~each reported measure of segment profit or loss; (2) an amount for other segment items by reportable ~~sheets,~~segment ~~statements~~and a description of ~~income~~its composition; and (~~loss~~3) the title and ~~comprehensive~~position ~~income~~of the CODM and an explanation of how the CODM uses the reported measure(~~loss~~s). The amendments also provide disclosure requirements for interim periods and ~~statements~~entities that have a single reportable segment. Details of ~~cash~~segment ~~flows~~reporting are set out in Note 2 and Note 19.

~~NOTE~~In ~~3 — ACCOUNTS~~December ~~RECEIVABLE~~2023, ~~NET~~the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”, which improves income tax disclosures. The amendments require the disclosure of specific categories in rate reconciliation and additional information for reconciling items that meet a quantitative threshold. The amendments also require disaggregated information about the amount of income taxes paid (net of refunds received), Income (or loss) from continuing operations before income tax expense (or benefit) and Income tax expense (or benefit) from continuing operations. The new guidance is required to be applied either prospectively or retrospectively. This guidance is effective for the Company for the year ending June 30, 2026. Early adoption is permitted. The Company is evaluating the impact of the adoption of this guidance.

~~Accounts~~In ~~receivable~~November 2024, ~~net~~the ~~consists~~FASB issued ASU 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” and issued subsequent amendment within ASU 2025-01. The amendments require disaggregation disclosure for certain expense captions presented on the ~~following:~~face of income statement, as well as additional disclosure about selling expenses. This guidance is effective for the Company for the year ending June 30, 2028 and interim reporting periods during the year ending December 31, 2029. Early adoption is permitted. The Company is evaluating the impact of the adoption of this guidance on its disclosures.

	March 31, 2025			June 30, 2024
Accounts receivable – third-party customers	$	1,455,249		$	2,122,107
Less: allowance for credit loss – third-party customers		(57,750	)		(39,955	)
Accounts receivable from third-party customers, net	$	1,397,499		$	2,082,152
Accounts receivable – related party customers	$	310,632		$	777,396
Less: allowance for credit loss – related party customers		(4,337	)		(14,111	)
Total accounts receivable, net	$	306,295		$	763,285

In November 2024, the FASB issued ASU 2024-04, “Debt - Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments,” which clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. The amendments also clarify some specific applications of induced conversion guidance and that the guidance applies to a convertible debt instrument that is not currently convertible as long as it had a substantive conversion feature as of both its issuance date and the date the inducement offer is accepted. The new guidance is required to be applied either prospectively or retrospectively. This guidance is effective for the Company for the year ending June 30, 2027. Early adoption is permitted. The Company is evaluating the impact of the adoption of this guidance.

~~Approximately~~In $0May 2025, the FASB issued ASU 2025-03, “Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity,” which requires an entity involved in an acquisition transaction effected primarily by exchanging equity interests when the legal acquiree is a VIE that meets the definition of a business to consider specific factors to determine the accounting acquirer and removes the requirement that the primary beneficiary always is the acquirer for certain transactions.~~2 million~~ Under the amendments, acquisition transactions in which the legal acquiree is a VIE will, in more instances, result in the same accounting outcomes as economically similar transactions in which the legal acquiree is a voting interest entity. The amendments do not change the accounting for a transaction determined to be a reverse acquisition or 69a transaction in which the legal acquirer is not a business and is determined to be the accounting acquiree.7% ofThe new guidance is required to be applied prospectively to any acquisition transaction that occurs after the ~~accounts~~initial ~~receivable~~application ~~from~~date. ~~related~~This ~~party~~guidance ~~customers~~is ~~have~~effective ~~been~~for ~~collected~~the asCompany for the year ending June 30, 2028. Early adoption is permitted. The Company is evaluating the impact of the ~~report~~adoption ~~date~~of this guidance.

~~Approximately $1.1 million or 78.3% of the accounts receivable from third party customers have been collected as of the report date.~~F-22

~~The~~LAKESIDE ~~movement~~HOLDING ~~of allowance~~LIMITED ~~for~~NOTES ~~credit~~TO ~~loss~~CONDENSED ~~for~~CONSOLIDATED ~~the~~FINANCIAL ~~nine months ended March 31, 2025 and the year ended June 30, 2024 is as follows:~~STATEMENTS

	March 31, 2025		June 30, 2024
Beginning balance	$	54,066	$	25,909
Addition of provision		8,021		28,157
Ending balance	$	62,087	$	54,066

(UNAUDITED)

~~The~~NOTE ~~Company~~2 — SUMMARY ~~recorded~~OF ~~addition~~SIGNIFICANT ofACCOUNTING ~~allowance for credit loss of $6,065 and reversal of allowance for credit loss of $27,393 for the three months ended March 31, 2025 and 2024, respectively~~POLICIES (cont. ~~The Company recorded addition of allowance for credit loss of $8,021 and $22,198 for the nine months ended March 31, 2025 and 2024, respectively.~~)

20Recent accounting pronouncements (cont.)

~~LAKESIDE~~In ~~HOLDING~~September ~~LIMITED~~2025, the Financial ~~NOTES~~Accounting TOStandards ~~CONDENSED~~Board ~~CONSOLIDATED~~(FASB) ~~FINANCIAL~~issued ~~STATEMENTS~~Accounting Standards Update (ASU) 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Scope Refinements. This update clarifies the application of derivative accounting to certain contracts and refines the guidance for share-based noncash consideration received from customers. Specifically, ASU 2025-07 introduces a scope exception for contracts that are not exchange-traded and whose underlying is tied to operations or activities specific to one party. It also clarifies that share-based noncash consideration from a customer should initially be accounted for under Topic 606 until the right to receive or retain such consideration becomes unconditional, at which point financial instruments guidance may apply. The amendments are effective for the Company for the year ending June 30, 2028, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2025-07 on its unaudited condensed consolidated financial statements and related disclosures.

The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s unaudited condensed consolidated balance sheets, statements of income (~~UNAUDITED~~loss) and comprehensive income (loss) and statements of cash flows.

NOTE 43 — ~~INVENTORIES~~ACCOUNTS RECEIVABLE, NET

~~Inventories~~Accounts receivable, net consists of the following:

	March 31, 2025			June 30, 2024
	September 30, 2025			June 30, 2025
Finished goods	$	216,489		$	-
Accounts receivable – third-party customers	$	3,262,892		$	2,983,308
Less: inventory allowance		-			-
Less: allowance for credit loss – third-party customers		(171,613	)		(87,728	)
Inventories, net	$	216,489		$	-
Accounts receivable from third-party customers, net	$	3,091,279		$	2,895,580
Accounts receivable – related party customers	$	352,896		$	396,331
Less: allowance for credit loss – related party customers		-			-
Total accounts receivable, net	$	352,896		$	396,331

~~NOTE~~Approximately $1.5 ~~— LOAN~~ TOmillion Aor ~~THIRD~~44.9% ~~PARTY~~of the accounts receivable from third party customers have been collected as of November 13, 2025.

OnApproximately ~~October 8~~$280,000 ~~2024,~~or ~~the Company entered into a loan agreement with a third party for a principal amount up to $2 million at a fixed interest rate of 4~~79.351% ~~per annum with a maturity date~~ of ~~twelve~~the ~~months. There~~accounts isreceivable ~~no pledge and guarantee~~ from ~~the third~~ related party ~~and~~customers ~~the~~have ~~loan~~been iscollected ~~on demand and can be called by the Company. The loan balance was $573,546, including interest income receivable of $11,645,~~ as of ~~March~~November 3113, 2025.

~~NOTE 6 — PROPERTY AND EQUIPMENT, NET~~F-23

~~Property~~LAKESIDE ~~and~~HOLDING ~~equipment,~~LIMITED NOTES ~~net~~TO ~~consists~~CONDENSED ofCONSOLIDATED ~~the~~FINANCIAL ~~following:~~STATEMENTS

	March 31, 2025			June 30, 2024
Furniture and Fixtures	$	61,159		$	49,887
Machinery equipment		286,811			281,230
Vehicles		455,882			324,267
Software		5,317			-
Leasehold improvement		266,194			82,050
Subtotal		1,075,363			737,434
Less: accumulated depreciation		(541,370	)		(392,551	)
Property and equipment, net	$	533,993		$	344,883

(UNAUDITED)

~~Depreciation~~NOTE ~~expense recorded in general and administrative expense was $35,609 and $17,995 for the~~3 ~~three months ended March 31, 2025 and 2024, respectively. Depreciation expense recorded in cost of revenue was $26,113 and $18,165 for the~~— ~~three~~ACCOUNTS ~~months ended March 31~~RECEIVABLE, ~~2025~~NET ~~and 2024, respectively~~(cont.)

~~Depreciation~~The ~~expense~~movement ~~recorded~~of allowance infor ~~general~~credit ~~and~~loss ~~administrative expense was $86,413 and $53,985~~ for the ~~nine~~three months ended ~~March~~September 3130, 2025 and ~~2024, respectively. Depreciation expense recorded in cost of revenue was $62,441 and $54,493 for~~ the ~~nine~~year ~~months~~ ended ~~March~~June 3130, 2025 ~~and~~is ~~2024,~~as ~~respectively.~~follows:

	September 30, 2025		June 30, 2025
Beginning balance	$	87,728	$	54,066
Provision of expected credit loss allowance		83,325		33,432
Effect of foreign exchange translation		560		230
Ending balance	$	171,613	$	87,728

~~LAKESIDE~~The ~~HOLDING~~Company ~~LIMITED~~recorded addition ~~NOTES~~of TOallowance ~~CONDENSED~~for ~~CONSOLIDATED~~credit ~~FINANCIAL~~loss ~~STATEMENTS~~of $83,325 and $12,837 for the three months ended September 30, 2025 and 2024, respectively.

~~(UNAUDITED)~~NOTE 4 — INVENTORIES, NET

~~NOTE~~Inventories, ~~7 — INTANGIBLE~~net ~~ASSETS,~~consists ~~NET~~of the following:

Net intangible assets consists of the following:

	September 30, 2025		June 30, 2025
Finished goods	$	131,986	$	96,534
Less: inventory allowance		-		-
Inventories, net	$	131,986	$	96,534

	March 31, 2025			June 30, 2024
License	$	418,867		$	-
Less: accumulated amortization		(32,056	)		-
Intangible asset, net	$	386,811		$	-

The Company recorded inventory allowance of $nil for the three months ended September 30, 2025.

OnNOTE ~~November~~ 5, 2024, the Company purchased a license of pharmaceutical distribution in Mainland China through its acquisition of 100% equity interest in Hupan Pharmaceutical. The Company recognized the distribution license as an intangible asset of $418,867 based on the assessment of fair value at the purchase date (see Not 21), adjusted by deferred taxes recorded on temporary book/tax differences in an asset acquisition using the simultaneous equations method. The transaction was closed on November 21, 2024. No impairment expense was recognised for the three and nine months ended March 31, 2025 and 2024, respectively. ~~Amortization~~— LOAN ~~expense~~TO ofA ~~$32,056~~THIRD ~~and $32,056 was recognised for the three and nine months ended March 31, 2025, respectively.~~ PARTY

~~NOTE~~On October 8 ~~— LEASES~~, 2024, the Company entered into a loan agreement with a third party for a principal amount up to $2 million at a fixed interest rate of 4.35% per annum with a maturity date of twelve months. On July 3, 2025, the Company entered into an additional loan agreement with the same party, increasing the principal amount to up to $6 million, also bearing a fixed annual interest rate of 4.35% and maturing in twelve months. There is no pledge and guarantee from the third party and the loan is on demand and can be called by the Company. The loan balance was $253,107 and $11,380 as of September 30, 2025 and June 30, 2025. The Company recognized interest income of $60,561 in connection with this loan to a third party for the three months ended September 30, 2025.

~~The~~NOTE ~~Company has multiple lease agreements for warehouses~~6 — PREPAYMENT, ~~warehouse~~DEPOSIT ~~machinery~~AND ~~and~~OTHER ~~equipment~~RECEIVABLE ~~and offices. The Company’s lease agreements do not contain any material~~– ~~residual~~THIRD ~~value guarantees or material restrictive covenants.~~PARTY

As of March 31, 2025 and June 30, 2024, balance of lease liabilities was $4,205,176 and $3,693,211, respectively. The Company recognized additional operating lease liabilities of $511,965 as result of entering into three new operating lease agreements for the nine months ended March 31, 2025. The ROU asset was recognized at the discount rate of 10.25% for one lease with a lease term of 1.6 years in the U.S., 4.42% for another lease with a lease term of 2 years in China and 4.42% for another lease with a lease term of 5 years in China, resulting in a total of $1,447,494 on the commencement date.

	September 30, 2025			June 30, 2025
Prepayment and other deposits (a)	$	1,966,048		$	282,704
Rent deposits		271,279			271,207
Advance to suppliers (b)		2,809,382			-
Ending balance		5,046,709			553,911
Less: non-current portion		(98,327	)		(103,934	)
Current portion	$	4,948,382		$	449,977

As(a) The ofCompany ~~March 31, 2025, the~~entered ~~Company~~several ~~recognized~~consulting ~~additional~~agreements ~~finance~~with ~~lease~~third ~~liabilities~~parties ofand ~~$66,189~~issued asshares ~~result of entering into two new finance lease agreements~~ for the ~~nine~~ ~~months~~services ~~ended~~to ~~March~~be ~~31,~~provided ~~2025.~~from ~~The~~July ~~ROU~~2025 ~~asset~~to ~~was~~August ~~recognized at the discount rate of 9~~2026.~~75%~~ ~~and 10.75% for both two leases with a lease~~As ~~term~~ of 5September ~~years~~30, in2025, ~~the~~balance ~~U.S.,~~mainly ~~resulting~~represented inthe aprepaid ~~total~~consulting services of $~~89,003~~1.6 ~~on the commencement date~~million.

~~Total~~(b) The ~~operating~~Company ~~lease expenses~~entered ona ~~offices,~~purchase ~~warehouses,~~agreement ~~and~~with ~~warehouse~~a ~~equipment~~third ~~for~~party ~~the three~~to ~~months~~purchase ~~ended~~$2.8 ~~March~~million 31steel bar on September 15, 2025. ~~and~~As ~~2024~~of ~~were~~September ~~$526~~30,~~685~~ ~~and $219~~2025,~~571,~~ ~~respectively~~$2.8 million ~~Total~~has ~~operating~~been ~~lease~~paid ~~expenses~~to onthe ~~offices,~~supplier ~~warehouses,~~ and ~~warehouse equipment for~~ the ~~nine~~delivery ~~months~~is ~~ended~~expected ~~March~~to ~~31,~~be ~~2025~~completed ~~and~~within ~~2024~~180 ~~were $1,515,688~~days ~~and~~after ~~$658,713,~~the ~~respectively~~prepayment.

~~Total finance lease expenses on warehouse machinery and equipment for the three months ended March 31, 2025 and 2024 were $10,613 and $8,756, respectively. Depreciation of finance lease right~~F-~~of-use assets were $8,600 and $8,756 for the three months ended March 31, 2025 and 2024, respectively.~~24

~~Total~~LAKESIDE ~~finance~~HOLDING ~~lease expenses~~LIMITED onNOTES ~~warehouse~~TO ~~machinery~~CONDENSED ~~and~~CONSOLIDATED ~~equipment~~FINANCIAL for the nine months ended March 31, 2025 and 2024 were $28,044 and $23,854, respectively. Depreciation of finance lease right-of-use assets were $24,081 and $22,548 for the nine months ended March 31, 2025 and 2024, respectively.STATEMENTS

22(UNAUDITED)

~~LAKESIDE~~NOTE ~~HOLDING~~7 — PROPERTY ~~LIMITED NOTES~~AND TOEQUIPMENT, ~~CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~NET

~~(UNAUDITED)~~Property and equipment, net consists of the following:

NOTE 8 — LEASES (cont.)

	September 30, 2025			June 30, 2025
Furniture and Fixtures	$	76,064		$	75,901
Machinery equipment		290,878			290,818
Vehicles		393,855			324,267
Software		5,420			5,386
Leasehold improvement		268,782			267,933
Subtotal		1,034,999			964,305
Less: accumulated depreciation		(625,606	)		(574,884	)
Property and equipment, net	$	409,393		$	389,421

~~The~~Depreciation ~~following~~expense ~~table~~recorded in ~~includes~~general and administrative expense was $25,898 and $17,995 for the three months ended September 30, 2025 and 2024, respectively. Depreciation ~~supplemental~~expense ~~cash~~recorded ~~flow~~in cost of revenue was $24,667 and ~~non-cash information~~$18,164 ~~related~~for tothe ~~leases:~~three months ended September 30, 2025 and 2024, respectively.

	For the nine months ended March 31,
	2025		2024
Cash paid of amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,151,931	$	606,756
Operating cash flows from finance leases	$	3,963	$	1,306
Financing cash flows from finance leases	$	22,814	$	21,485
Right-of-use assets obtained in exchange for lease obligations:
Finance lease liabilities	$	89,003	$	19,982
Operating lease liabilities	$	1,447,494	$	—

NOTE 8 — INTANGIBLE ASSETS, NET

~~The~~Net ~~weighted~~intangible ~~average~~assets ~~remaining lease~~consists ~~terms and discount rates for all~~ of ~~operating~~the ~~lease and finance leases is as follows~~following:

	Mar 31, 2025			June 30, 2024
	September 30, 2025			June 30, 2025
Weighted-average remaining lease term (years):
License	$	418,867		$	418,867
Operating lease		2.7 years			3.05 years
Less: accumulated amortization		(74,798	)		(53,427	)
Finance lease		3.36 years			1.31 years
Intangible asset, net	$	344,069		$	365,440
Weighted average discount rate:
Operating lease		7.10	%		6.30	%
Finance lease		9.21	%		6.51	%

~~The~~On ~~following~~November is5, a2024, ~~schedule~~the Company purchased a license of ~~maturities~~pharmaceutical distribution in Mainland China through its acquisition of ~~operating~~100% ~~and~~equity ~~finance~~interest ~~lease~~in ~~liabilities~~Hupan Pharmaceutical. The Company recognized the distribution license as an intangible asset of ~~March~~$418,867 31based on the assessment of fair value at the purchase date, adjusted by deferred taxes impact on temporary tax differences in an asset acquisition using the simultaneous equations method. The transaction was closed on November 21, 2024. No impairment expense was recognized for the three months ended September 30, 2025:. Amortization expense of $21,371 was recognized for the three months ended September 30, 2025.

~~Operating~~NOTE ~~leases~~9 — LEASES

Twelve months ending March 31,	Repayment
2026	$	2,595,757
2027		718,284
2028		588,257
2029		609,985
2030		131,715
Total future minimum lease payments		4,643,998
Less: imputed interest		(438,822	)
Total operating lease liabilities	$	4,205,176

The Company has multiple lease agreements for warehouses, warehouse machinery and equipment and offices. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

~~Financing leases~~F-25

Twelve months ending March 31,	Repayment
2026	$	55,477
2027		27,189
2028		21,656
2029		21,656
2030		12,632
Total future minimum lease payments		138,610
Less: imputed interest		(17,342	)
Total finance lease liabilities	$	121,268

LAKESIDE HOLDING LIMITED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

23(UNAUDITED)

~~LAKESIDE~~NOTE ~~HOLDING LIMITED~~9 — LEASES ~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~(cont.)

~~(UNAUDITED)~~Total operating lease expenses on offices, warehouses, and warehouse equipment for the three months ended September 30, 2025 and 2024 were $527,261 and $466,723, respectively.

~~NOTE~~Total 9finance lease expenses on warehouse machinery and equipment for the three months ended September 30, 2025 and 2024 were $10,377 and $8,016, respectively. Depreciation of finance lease right-of-use ~~— ACCRUED~~assets ~~LIABILITIES~~were ~~AND~~$8,600 ~~OTHER~~and ~~PAYABLES~~$7,595 for the three months ended September 30, 2025 and 2024, respectively.

~~Accrued~~The ~~liabilities~~following ~~and~~table ~~other~~includes supplemental ~~payables~~cash ~~comprise the~~flow ~~following~~and ~~amounts~~non-cash information ~~relating~~related to ~~the operation of the Company~~leases:

	March 31, 2025		June 30, 2024
	For the three months ended September 30,
Credit card payables	$	381,829	$	235,673
	2025		2024
Payroll liabilities		301,208		120,379
Cash paid of amounts included in the measurement of lease liabilities:
Accrued expense (a)		430,390		435,019
Operating cash flows from operating leases	$	897,689	$	470,260
Other payables (b)		335,161		544,733
Operating cash flows from finance leases	$	1,777	$	422
Total	$	1,448,588	$	1,335,804
Financing cash flows from finance leases	$	8,085	$	7,632
Right-of-use assets obtained in exchange for lease obligations:
Operating lease liabilities	$	-	$	1,244,14

~~Note (a):~~ The ~~balance~~weighted ~~mainly~~average ~~consists~~remaining lease ofterms ~~accrued interest of $210,171~~ and ~~$175,019~~discount ~~and~~rates ~~accrued~~for ~~professional~~all ~~fee~~ of ~~$220,219~~operating ~~and~~lease ~~$260,000 as of March 31, 2025~~ and ~~June~~finance ~~30,~~leases ~~2024,~~is ~~respectively.~~as follows:

(b): The balance mainly consists of payable related to initial offering cost of nil and $541,819 as of March 31, 2025 and June 30, 2024, respectively.

	September 30, 2025			June 30, 2025
Weighted-average remaining lease term (years):
Operating lease		2.49 years			2.44 years
Finance lease		3.02 years			3.19 years

Weighted average discount rate:
Operating lease		7.14	%		7.00	%
Finance lease		9.45	%		9.32	%

~~NOTE 10 — LOANS PAYABLE~~F-26

~~The~~LAKESIDE ~~Company~~HOLDING ~~obtained multiple~~LIMITED ~~loans~~NOTES toTO ~~finance~~CONDENSED ~~the~~CONSOLIDATED ~~purchase~~FINANCIAL ~~of vehicles and warehouse machinery and obtained other loans to support its working capital needs.~~STATEMENTS

~~The loan balance consists of the following:~~(UNAUDITED)

	March 31, 2025			June 30, 2024
Equipment loans	$	46,850		$	84,357
Vehicle loans		200,433			146,283
Other loans		526,908			652,697
Total		774,191			883,337
Less: loan payable, current		(617,682	)		(746,962	)
Loan payable, non-current	$	156,509		$	136,375

NOTE 9 — LEASES (cont.)

~~Equipment~~The ~~loans~~following is a schedule of maturities of operating and finance lease liabilities as of September 30, 2025:

OnOperating December 7, 2020, the Company entered into an equipment loan with Toyota Commercial Finance for a principal amount of $48,033 at a fixed interest rate of 3.99% per annum with a maturity date of December 1, 2025. The loan balance was $7,829 and $15,427 as of March 31, 2025 and June 30, 2024, respectively.leases

On March 9, 2021, the Company entered into an equipment loan with Toyota Commercial Finance for a principal amount of $12,700 at a fixed interest rate of 3.99% per annum with a maturity date of July 6, 2025. The loan balance was $1,137 and $3,642 as of March 31, 2025 and June 30, 2024, respectively.

Twelve months ending September 30,	Repayment
2026	$	1,745,988
2027		579,656
2028		599,993
2029		426,315
2030		11,483
Total future minimum lease payments		3,363,435
Less: imputed interest		(321,188	)
Total operating lease liabilities	$	3,042,247

OnFinancing April 7, 2021, the Company entered into an equipment loan with Toyota Commercial Finance for a principal amount of $12,700 at a fixed interest rate of 3.99% per annum with a maturity date of July 6, 2025. The loan was guaranteed by Mr. Henry Liu, the CEO. The loan balance was $1,137 and $3,642 as of March 31, 2025 and June 30, 2024, respectively. leases

Twelve months ending September 30,	Repayment
2026	$	50,854
2027		22,917
2028		21,656
2029		21,656
2030		1,805
Total future minimum lease payments		118,888
Less: imputed interest		(13,671	)
Total finance lease liabilities	$	105,217

~~LAKESIDE~~NOTE ~~HOLDING~~10 — ACCRUED ~~LIMITED NOTES~~LIABILITIES TOAND ~~CONDENSED~~OTHER ~~CONSOLIDATED FINANCIAL STATEMENTS~~PAYABLES

~~(UNAUDITED)~~Accrued liabilities and other payables comprise the following amounts relating to the operation of the Company

NOTE 10 — LOANS PAYABLE (cont.)

	September 30, 2025		June 30, 2025
Credit card payables	$	348,156	$	370,766
Payroll liabilities		543,230		378,358
Accrued expense		876,258		806,324
Other payables		390,237		564,546
Total	$	2,157,881	$	2,119,994

On June 4, 2021, the Company entered into an equipment loan with Toyota Commercial Finance for a principal amount of $26,800 at a fixed interest rate of 3.79% per annum with a maturity date of June 3, 2025. The loan balance was $1,797 and $7,085 as of March 31, 2025 and June 30, 2024, respectively.F-27

OnLAKESIDE ~~June 14,~~HOLDING ~~2021, the~~LIMITED ~~Company~~NOTES ~~entered~~TO ~~into~~CONDENSED anCONSOLIDATED ~~equipment~~FINANCIAL loan with Toyota Commercial Finance for a principal amount of $20,724 at a fixed interest rate of 6% per annum with a maturity date of August 06, 2024. The loan balance was nil and $1,252 as of March 31, 2025 and June 30, 2024, respectively.STATEMENTS

On July 13, 2021, the Company entered into an equipment loan with Toyota Commercial Finance for a principal amount of $8,465 at a fixed interest rate of 6% per annum with a maturity date of June 30, 2024. The loan balance was nil and $256 as of March 31, 2025 and June 30, 2024, respectively.(UNAUDITED)

OnNOTE ~~September~~11 ~~28, 2021, the Company entered into another equipment loan with Toyota Commercial Finance for a principal amount of $23,600 at a fixed interest rate of 3.54% per annum with a maturity date of June~~— ~~30, 2024. The loan balance was nil and $690 as of March 31, 2025 and June 30, 2024,~~LOANS ~~respectively.~~PAYABLE

OnThe ~~February 21, 2023, the~~ Company ~~entered~~obtained ~~into an equipment loan with Toyota Commercial Finance for a principal amount of $29,705 at a fixed interest rate of~~multiple ~~7.90%~~loans ~~per~~to ~~annum~~finance ~~with~~the apurchase ~~maturity date~~ of ~~February 20,~~vehicles ~~2027.~~and ~~The~~warehouse ~~loan~~machinery ~~balance was $15,401~~ and ~~$20,823~~obtained asother ofloans ~~March~~to ~~31,~~support ~~2025~~its ~~and~~working ~~June 30,~~capital ~~2024, respectively~~needs.

On June 10, 2021, the Company entered into an equipment loan with Amur Equipment Finance for a principal amount of $41,239 at a fixed interest rate of 13.92% per annum with a maturity date of June 9, 2026. The loan ~~is personally guaranteed by Henry Liu, the CEO. The loan term was 5 years. The loan~~ balance ~~was~~consists ~~$12,113 and $18,972 as~~ of ~~March~~the ~~31, 2025 and June 30, 2024, respectively.~~following:

On September 9, 2021, the Company entered into an equipment loan with Hatachi Capital America Corp. for a principal amount of $28,450 at a fixed interest rate of 9.49% per annum with a maturity date of March 15, 2026. The loan balance was $7,436 and $12,569 as of March 31, 2025 and June 30, 2024, respectively.

	September 30, 2025			June 30, 2025
Equipment loans (a)	$	25,175		$	34,645
Vehicle loans (b)		147,035			88,762
Other loans		2,246,893			1,237,103
Total		2,419,103			1,360,510
Less: loan payable, current		(2,271,368	)		(1,300,112	)
Loan payable, non-current	$	147,735		$	60,398

~~The~~(a) ~~Company~~Equipment ~~made the total principal repayments of $11,984 and $16,052 in connection with the above equipment~~ loans during the three months ended March 31, 2025 and 2024, respectively. Interest expenses for the above-mentioned equipment loans amounted to $1,200 and $2,162 during the three months ended March 31, 2025 and 2024, respectively.

The Company made the total principal repayments of $379,~~507~~470 and $4713,~~958~~755 in connection with the ~~above~~ equipment loans during the ~~nine~~ three months ended ~~March 31~~ September 30, 2025, and 2024, respectively. Interest expenses for the above-mentioned equipment loans amounted to $~~4,256~~760 and $71,~~267~~640 during the ~~nine months~~three months ended ~~March~~September 3130, 2025 and 2024, respectively. The Company did not have any new equipment loan during the three months ended September 30, 2025.

(b) Vehicle loans

OnDuring ~~May 20~~the three months ended September 30, ~~2020~~2025, the Company entered into a new vehicle loan with ~~BMW~~Webank ~~Financial Services~~ for a principal amount of $7769,~~844~~862 at a fixed interest rate of 01.992% per annum ~~with~~and amatures ~~maturity~~in ~~date of June 4~~July, ~~2025~~2030. The loan ~~balance~~is ~~was~~secured ~~$3,974~~by ~~and~~the ~~$15,853~~related ~~as of March 31~~vehicle, ~~2025~~which ~~and~~has ~~June~~been ~~30,~~pledged ~~2024,~~as ~~respectively~~collateral.

OnThe ~~July 29,~~Company ~~2021,~~made the ~~Company~~ ~~entered into a vehicle loan with AutoNation Honda O’Hare for a~~ total principal ~~amount~~repayments of $4111,~~851~~950 atand a$14,235 ~~fixed~~in ~~interest~~connection ~~rate~~with ofthe ~~1.90% per~~above ~~annum~~vehicle ~~with~~loans aduring ~~maturity~~the ~~date~~three ofmonths ~~August 10~~ended September 30, 2025. and ~~The~~2024, ~~loan~~respectively. ~~was~~Interest ~~guaranteed~~expenses byfor ~~Mr. Henry Liu,~~ the ~~CEO.~~above-mentioned ~~The~~above ~~loan~~vehicle ~~balance was~~loans amounted to $41,~~507~~146 and $121,~~540~~308 asduring ofthe ~~March~~three months 31ended September 30, 2025 and ~~June 30,~~ 2024, respectively.

25F-28

LAKESIDE HOLDING LIMITED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 1011 — LOANS PAYABLE (cont.)

OnOther June 3, 2022, the Company entered into a vehicle loan with Tesla, Inc. for a principal amount of $101,050 at a fixed interest rate of 3.24% per annum with a maturity date of June 18, 2027. The loan balance was $47,529 and $62,630 as of March 31, 2025 and June 30, 2024, respectively.loans

On January 23, 2023, the Company entered into a vehicle loan with Tesla, Inc. for a principal amount of $68,540 at a fixed interest rate of 5.34% per annum with a maturity date of February 9, 2029. The loan balance was $47,277 and $55,259 as of March 31, 2025 and June 30, 2024, respectively.

	September 30, 2025		June 30, 2025
Loan A	$	120,000	$	120,000
Loan B		50,000		50,000
Loan C		50,000		50,000
Loan D		95,000		95,000
Loan E		-		12,009
Loan F		12,500		50,000
Loan G		8,181		19,995
Loan H		99,975		99,975
Loan I		890,359		317,252
Loan J		10,000		10,000
Loan K		100,000		100,000
Loan L		136,914		50,003
Loan M		23,493		23,347
Loan N		140,469		139,595
Loan O		82,981		99,927
Loan P		98,689		-
Loan Q		120,000		-
Loan R		208,332		-
Total	$	2,246,893	$	1,237,103

On(a) ~~October~~The ~~4, 2024, the~~ Company entered ~~into~~ a ~~vehicle~~ loan ~~with~~of ~~Tesla~~$300,000 ~~Inc.~~with ~~for~~ a ~~principal~~third ~~amount~~party ofon $March ~~102~~1,~~235~~ at2022. The loan is unsecured, with a fixed interest ~~rate~~ of ~~9.14~~15% per annum ~~with~~and apayable ~~maturity date~~on ofmonthly ~~October 18~~basis, ~~2030~~for 6 months period and matured on September 1, 2022. ~~The~~On September 1, 2022, both parties agreed to extend the loan’s ~~balance~~principal ~~was~~payment $term ~~97,146~~to ~~and~~on ~~$nil~~demand. asThe ofCompany ~~March~~did ~~31,~~not ~~2025~~make ~~and~~repayment ~~June~~during the three months ended September 30, ~~2024, respectively~~2025.

(b) The Company ~~made~~entered ~~the~~a ~~total principal~~loan ~~repayments~~ of $17200,~~731~~000 ~~and~~with ~~$14~~a third party on July 26,~~042~~ in2021. ~~connection~~The loan is unsecured, with ~~the~~no ~~above~~interest ~~vehicle~~bearing ~~loans~~for 6 months period and matured on January 25, 2022. The Company paid a principal of $100,000 during the three months ended ~~March~~September 3130, ~~2025~~2021 and both parties agreed to extend the remaining principal balance of $100,000 payment term to on demand. On April 8, 2024, ~~respectively~~the Company entered another loan of $100,000 with the same party. ~~Interest~~On ~~expenses~~June ~~for~~27, 2025, the ~~above-mentioned above~~Company ~~vehicle~~entered ~~loans~~another ~~amounted~~loan toof $350,~~383~~000 with the same party. The loan is unsecured, with no interest bearing for a 6-month period and $1matured on December 27,~~500~~ 2025. The Company did not made repayment during the three months ended ~~March 31,~~September ~~2025 and 2024~~30, ~~respectively~~2025.

(c) The Company ~~made~~entered ~~the~~a ~~total principal~~loan ~~repayments~~agreement of $4850,~~085~~000 ~~and $41,843 in connection~~ with ~~the~~an ~~above~~employee ~~vehicle~~on ~~loans~~October ~~during the nine months ended March 31~~27, ~~2025~~ ~~and 2024, respectively~~2021. ~~Interest~~The ~~expenses~~loan ~~for~~is ~~the above~~non-~~mentioned~~interest ~~equipment~~bearing, ~~loans~~for ~~amounted~~a to12-month $7period,~~827~~ and ~~$4,783~~matured ~~during~~on ~~the~~October ~~nine months ended March 31~~26, ~~2025 and 2024, respectively~~2022.

~~Other~~On ~~loans~~October 26, 2022, both parties agreed to extend the loan term to on demand.

	March 31, 2025		June 30, 2024
Loan A	$	120,000	$	150,000
Loan B		—		200,000
Loan C		50,000		50,000
Loan D		115,000		175,000
Loan E		23,303		77,697
Loan F		87,500		—
Loan G		31,130		—
Loan H		99,975		—
Total	$	526,908	$	652,697

F-29

~~(a)~~LAKESIDE ~~The~~HOLDING ~~Company~~LIMITED NOTES ~~entered~~TO aCONDENSED ~~loan~~CONSOLIDATED ofFINANCIAL $300,000 with an unrelated party on March 1, 2022. The loan is unsecured, with a fixed interest of 15% per annum and payable on monthly basis, for 6 months period and matured on September 1, 2022. On September 1, 2022, both parties agreed to extend the loan’s principal payment term to on demand. The Company has made repayment of $30,000 during the nine months ended March 31, 2025.STATEMENTS

(bUNAUDITED) The Company entered a loan of $200,000 with an unrelated party on July 26, 2021. The loan is unsecured, with no interest bearing for 6 months period and matured on January 25, 2022. The Company paid a principal of $100,000 during the year ended June 30, 2021 and both parties agreed to extend the remaining principal balance of $100,000 payment term to on demand. On April 8, 2024, the Company entered another loan of $100,000 with the same party. The loan is unsecured, with no interest bearing for a 6-month period and matured on September 7, 2024. The Company has made repayment of $200,000 during the nine months ended March 31, 2025.

26NOTE 11 — LOANS PAYABLE (cont.)

~~LAKESIDE~~Other ~~HOLDING~~loans ~~LIMITED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~(cont.)

(~~UNAUDITED~~d) The Company entered a loan agreement of $100,000 with a third party on July 3, 2023. The loan is non-interest bearing, for a 6-month period.

~~NOTE~~On April 10, 2024, the Company entered another loan agreement of $75,000 with same party. The loan is non-interest ~~— LOANS~~bearing, ~~PAYABLE~~for a 6-month period, and matured on September ~~(cont~~9, 2024.) Both parties agreed to extend the remaining principal balance payment term to on demand.

~~(c)~~ The Company ~~entered~~did anot ~~loan~~make ~~agreement~~repayment during ofthe ~~$50,000~~three ~~with~~months anended ~~employee~~September ~~on October 27~~30, ~~2021~~2025. ~~The~~Both ~~loan~~parties isagreed ~~non-interest~~to ~~bearing,~~extend ~~for~~the aremaining ~~12-month~~principal ~~period~~balance of $95,000 ~~and~~payment ~~matured~~term to on ~~October 26, 2022~~demand.

(e) The Company entered a loan of $125,000 with a third party on August 17, 2023. The loan is personally guaranteed by Henry Liu, the CEO, with a fixed interest of 16.00% per annum for 24 months period and matured on August 16, 2025. The monthly payment is $6,120 blending of interest and principal. (f) On October 26 16, ~~2022~~2024, the Company entered a loan of $150,000 with a third party. The loan is personally guaranteed by Henry Liu, the CEO, with a fixed interest of 33.37% per annum and payable on monthly basis, for 12 months period and matured on October 16, 2025. The monthly payment is $16,250 for the first six months and $13,250 for the remaining six months blending of interest and principal. (g) The Company entered a loan of $45,000 with a third party on November 5, 2024. The loan is personally guaranteed by Henry Liu, the CEO, with a fixed interest of 24.16% per annum and payable on monthly basis, for 12 months period and matured on November 5, 2025. The monthly payment is $4,259 blending of interest and principal. (h) The Company entered a loan of $99,975 with a third party on January 21, 2025. The loan is unsecured, with no interest bearing for 6 months period and matured on July 21, 2025. On July 21, 2025, both parties agreed to extend the ~~loan~~remaining principal balance payment term to on demand. (i) The Company entered a loan of $350,000 with a third party on May 17, 2025. The loan is personally guaranteed by Henry Liu, the CEO, and Shuai Li, the Shareholder, with a fixed interest of 45.7% per annum and payable on weekly basis, for 52 weeks and matured on May 16, 2026. The weekly payment is $8,413 blending of interest and principal. On August 11, 2025, the Company refinanced its existing loan, increasing the principal amount to $1,000,000 under a new loan agreement. The loan bears a fixed interest rate of 45.7% per annum, is payable in weekly installments over 52 weeks, and matures on August 13, 2026. The loan is personally guaranteed by Henry Liu, the Company’s Chief Executive Officer, and Shuai Li, a shareholder. The Company is required to make weekly blended payments of principal and interest of approximately $24,038.

(dj) The Company entered a loan ~~agreement~~of $10,000 with a third party on April 18, 2025. The loan is unsecured, with a fixed interest of 6% per annum for 6 months period and matured on October 18, 2025. (k) The Company entered a loan of $100,000 with an unrelated party on ~~July~~June 330, ~~2023~~2025. The loan is ~~non-~~unsecured, with no interest bearing for 6 months period and matured on December 30, 2025. (l) The Company entered a loan of $67,003 with a third party on April 10, 2025. The loan is unsecured, with no interest bearing for 6 months period and matured on October 10, 2025. The Company entered a new loan of $86,911 with same party on August 6~~-month~~, 2025. The loan is unsecured, with no interest bearing for 6 months period and matured on February 6, 2026.

~~On April 10, 2024, the Company entered another loan agreement of $75,000 with same party. The loan is non~~F-~~interest bearing, for a 6-month period, and matured on September 9, 2024.~~30

~~The~~LAKESIDE ~~Company~~HOLDING ~~made repayment of $60,000~~LIMITED ~~during~~NOTES ~~the~~TO ~~nine~~CONDENSED ~~months~~CONSOLIDATED ~~ended~~FINANCIAL ~~March 31, 2025. Both parties agreed to extend the remaining principal balance of $115,000 payment term to on demand.~~STATEMENTS

(eUNAUDITED) The Company entered a loan of $125,000 with an unrelated party on August 17, 2023. The loan is personally guaranteed by Henry Liu, the CEO, with a fixed interest of 16.00% per annum for 24 months period and matured on August 16, 2025. The monthly payment is $6,120 blending of interest and principal. (f) On October 16, 2024, the Company entered a loan of $150,000 with an unrelated party. The loan is personally guaranteed by Henry Liu, the CEO, with a fixed interest of 33.37% per annum and payable on monthly basis, for 12 months period and matured on October 16, 2025. The monthly payment is $16,250 for the first six months and $13,250 for the remaining six months blending of interest and principal. (g) The Company entered a loan of $45,000 with an unrelated party on November 5, 2024. The loan is personally guaranteed by Henry Liu, the CEO, with a fixed interest of 24.16% per annum and payable on monthly basis, for 12 months period and matured on November 5, 2025. The monthly payment is $4,259 blending of interest and principal. (h) The Company entered a loan of $99,975 with an unrelated party on January 21, 2025. The loan is unsecured, with no interest bearing for 6 months period and matured on July 21, 2025.

~~The~~NOTE Company made the total principal repayments of $80,851 and $108,362 in connection with the above other loans during the three months ended March 31, 2025 and 2024, respectively. Interest expenses for the above-mentioned11 ~~other~~— LOANS ~~loans amounted to $25,808 and $17,547 during the three months ended March 31, 2025 and 2024, respectively~~PAYABLE (cont. The Company made the total principal repayments of $420,765 and $150,620 in connection with the above other loans during the nine months ended March 31, 2025 and 2024, respectively. Interest expenses for the above-mentioned other loans amounted to $63,872 and $59,998 for the nine months ended March 31, 2025 and 2024, respectively.)

27Other loans (cont.)

~~LAKESIDE~~(m) ~~HOLDING~~The ~~LIMITED NOTES~~Company TOentered ~~CONDENSED~~a ~~CONSOLIDATED~~loan ~~FINANCIAL~~of ~~STATEMENTS~~$23,347 (RMB167,250) with a third party on August 9, 2024. The loan is unsecured, with no interest bearing and repayable on demand. (n) The Company entered a loan of $139,595 (RMB1,000,000) with a third party on June 6, 2025. The loan is unsecured, with no interest bearing for 12 months period and matured on May 31, 2026. (o) The Company entered a loan of $99,928 with a third party on June 27, 2025. The loan is at a fixed interest of 8.99% per annum and payable on monthly basis, for 11 months period and matured on May 27, 2026. The monthly payment is $9,498 blending of interest and principal. (p) The Company entered a loan of $105,263 with a third party on July 1, 2025. The loan is at a fixed interest of 34.0% per annum and payable on biweekly basis, for 24 months period and matured on July 1, 2027. The repayment is $3,037 blending of interest and principal. (q) The Company entered a loan of $120,000 with a third party on July 24, 2025, with a fixed interest of 10.0% per annum for 10 months period. (r) The Company entered a loan of $208,332 (RMB1,500,000) with a third party on July 12, 2025, with a fixed interest of 10.0% per annum for 10 months period. The loan was pledged by two residential properties owned by Henry Liu, the Company’s Chief Executive Officer, and Shuai Li, a shareholder

~~(UNAUDITED)~~The Company made the total principal repayments of $228,997 and $265,456 in connection with the above other loans during the three months ended September 30, 2025 and 2024, respectively. Interest expenses for the above-mentioned other loans amounted to $99,590 and $16,515 during the three months ended September 30, 2025 and 2024, respectively.

~~NOTE~~The ~~10 — LOANS~~repayment ~~PAYABLE (cont.)~~schedule for the Company’s loans is as follows:

The repayment schedule for the Company’s loans is as follows:

Twelve months ending September 30,	Vehicle loans			Equipment loans			Others			Total
2026	$	50,096		$	22,919		$	2,425,171		$	2,498,186
2027		44,610			3,619			48,598			96,827
2028		28,149			—			—			28,149
2029		20,394			—			—			20,394
2030		12,221			—			—			12,221
Total undiscounted borrowings		155,470			26,538			2,473,769			2,655,777
Less: imputed interest		(8,435	)		(1,363	)		(226,876	)		(236,674	)
Total	$	147,035		$	25,175		$	2,246,893		$	2,419,103

Twelve months ending March 31,	Vehicle loans			Equipment loans			Others			Total
2026	$	66,154			39,114			539,275			644,543
2027		57,636			10,838			—			68,474
2028		41,176			—			—			41,176
2029		34,571			—			—			34,571
2030		22,283			—			—			22,283
2031		13,000			—			—			13,000
Total undiscounted borrowings		234,820			49,952			539,275			824,047
Less: imputed interest		(34,387	)		(3,102	)		(12,367	)		(49,856	)
Total	$	200,433			46,850			526,908			774,191

NOTE 12 — LOAN FROM A RELATED PARTY

~~NOTE~~On ~~11 — LOAN~~March ~~FROM~~1, A2025, ~~RELATED~~the Company ~~PARTY~~entered into a loan agreement with a related party – ABL Shenzhen (see Note 15) for a principal amount up to $124,176, bearing interest at a fixed interest rate of 7.79% per annum, with a maturity date of March 1, 2028. The loan balance was $124,176 and $124,176 as of September 30, 2025 and June 30, 2025, respectively, and interest expense in connection with the loan for the three months ended September 30, 2025 was $2,418.

On March 1, 2025, the Company entered into a loan agreement with a related party for a principal amount up to $124,176, bearing interest at a fixed interest rate of 7.79% per annum, with a maturity date of March 1, 2028. There is no pledge and guarantee from the third part. The loan balance was $124,176 and nil as of March F-31~~, 2025 and June 30, 2024, respectively, and interest expense in connection with the loan for the three and nine months ended March 31, 2025 was nil for both periods.~~

~~NOTE~~LAKESIDE ~~12 — CONVERTIBLE~~HOLDING LIMITED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~On March 5, 2025, the Company entered into a securities purchase agreement~~ (~~the “Securities Purchase Agreement”~~UNAUDITED) ~~with an institutional investor (the “Investor”).~~

~~Under~~NOTE ~~the~~13 — CONVERTIBLE Securities Purchase Agreement, the Company agreed to issue 7% original issue discount secured convertible promissory notes (“Notes”) in the aggregate principal amount of up to $4.5 million and accompanying Warrants (as defined below), in up to three separate tranches that are each subject to certain closing conditions (the “Financing”). On March 5, 2025, the initial closing of the first tranche (the “First Closing of First Tranche”) occurred, pursuant to which the Company issued to the Investor a Note in a principal amount of $1,000,000 (the “First Tranche”). For the subsequent closing of the first tranche, the Investor agreed to purchase an additional Note in the principal amount of $500,000, subject to the satisfaction of certain closing conditions including the Equity Conditions (as defined in the Securities Purchase Agreement), after a resale Registration Statement on Form S-3 or S-1 (the “Resale Registration Statement”) has been declared effective by the Securities and Exchange Commission (the “Commission”) for the registration of common stock of the Company (the “Common Stock”) issuable upon conversion of the Notes and the Warrants (as defined below). The Company and the Investor may also, pursuant to the Securities Purchase Agreement, choose to consummate a second tranche and a third tranche of financing, subject to certain closing conditions.DEBTS

~~Pursuant~~On toMarch ~~the Securities Purchase Agreement~~5, ~~the Company agreed to issue~~2025, ~~upon~~ the ~~consummation of the closing of each tranche, common stock purchase warrants~~Company ~~(“Warrants”)~~entered tointo ~~the~~a ~~Investor,~~securities ~~in each case to~~ purchase aagreement ~~number of shares of common stock determined by dividing 40% of the applicable principal amount of the corresponding Note by the VWAP~~ (~~as defined in~~ the “Securities Purchase Agreement”) ~~immediately~~with ~~prior to~~an ~~the~~institutional ~~applicable~~investor ~~closing date. In~~ (the ~~First Closing of the First Tranche, the Company issued~~ “Investor ~~Warrants to purchase 318,827 shares of common stock at an initial exercise price of $1~~”).~~9098 per share, subject to certain adjustments set forth therein.~~

~~The~~Under ~~Note~~the isSecurities ~~convertible into~~Purchase ~~Common~~Agreement, ~~Stock~~the atCompany anagreed ~~initial~~to ~~conversion~~issue ~~price~~7% oforiginal ~~$1.9098,~~issue ~~subject~~discount tosecured ~~certain~~convertible ~~adjustments~~promissory ~~(the~~notes (“~~Conversion Price~~Notes”), ~~provided that~~in the ~~Conversion~~aggregate principal ~~Price~~amount ~~shall~~of ~~not~~up beto ~~reduced below~~ $04.~~234~~5 ~~(the~~million ~~“Floor~~and ~~Price”).~~accompanying ~~The~~Warrants ~~Note does not bear any interest absent an Event of Default~~ (as defined below), in ~~the~~up ~~Note)~~to ~~and~~three ~~matures~~separate ontranches ~~June~~that 5,are ~~2026.~~each ~~Commencing~~subject to oncertain ~~the~~closing ~~earlier~~conditions of (i) the ~~60-day~~“Financing”). ~~anniversary~~On ~~after the~~March ~~date~~5, ~~hereof~~2025, ~~and (ii)~~ the ~~date~~initial onclosing ~~which~~of the first ~~Resale~~tranche ~~Registration~~(the ~~Statement~~“First Closing ~~shall~~of ~~have~~First ~~been~~Tranche”) ~~declared~~occurred, ~~effective~~pursuant byto ~~the~~which ~~Commission,~~ the Company isissued ~~required~~ to ~~pay to~~ the Investor ~~the~~a ~~outstanding principal balance under the~~ Note in ~~monthly~~a ~~installments,~~principal onamount ~~such~~of ~~date~~$1,000,000 ~~and~~(the ~~each~~“First ~~one (1~~Tranche”). ~~month~~For ~~anniversary~~the ~~thereof,~~subsequent inclosing ~~an amount equal to 105%~~ of the ~~total~~first ~~principal~~tranche, ~~amount multiplied by~~ the ~~quotient~~Investor ~~determined by~~agreed ~~dividing~~to ~~one~~purchase byan ~~the~~additional ~~number of months remaining until the maturity date of the~~ Note, in ~~until~~ the ~~outstanding~~ principal amount ~~has~~of ~~been paid in full or~~$500, ~~if earlier~~000, ~~upon~~subject ~~acceleration,~~to ~~conversion~~the orsatisfaction ~~redemption~~ of ~~the~~certain ~~Note~~closing inconditions ~~accordance~~including ~~with~~the ~~its~~Equity ~~terms.~~Conditions ~~All~~(as ~~monthly payments~~defined ~~are~~in ~~payable by~~ the ~~Company,~~Securities inPurchase ~~cash~~Agreement), ~~provided~~after ~~that~~a ~~under~~resale ~~certain~~Registration ~~circumstances,~~Statement ason ~~provided~~Form inS-3 ~~the~~or ~~Note,~~S-1 (the ~~Company~~“Resale ~~may~~Registration ~~elect to pay~~Statement”) inhas ~~common~~been ~~stock.~~declared Ateffective ~~any~~by ~~time after~~ the ~~original~~Securities ~~issuance~~and ~~date,~~Exchange ~~the~~Commission ~~Note shall be convertible~~ (inthe ~~whole or in part~~“Commission”) atfor the ~~option~~registration of ~~the~~common stock ~~Investor~~of ~~into~~the ~~such~~Company ~~number~~(the of“Common ~~fully~~Stock”) ~~paid~~issuable ~~and~~upon ~~non-assessable~~conversion ~~shares~~ of ~~Common~~the ~~Stock~~Notes asand isthe ~~determined~~Warrants by(as ~~dividing~~defined (xbelow). ~~that~~The ~~portion~~Company and of the ~~outstanding~~ ~~Principal~~Investor ~~and~~may ~~any~~also, ~~accrued~~pursuant ~~and~~to ~~unpaid~~the ~~interest~~Securities ~~thereon~~Purchase ~~that~~Agreement, ~~Invest~~choose ~~elects~~ to ~~convert~~consummate bya ~~(y)~~second ~~the~~tranche ~~Applicable~~and ~~Conversion~~a ~~Price~~third tranche of ~~then~~financing, insubject ~~effect~~to oncertain ~~the~~closing ~~date~~conditions.

28Pursuant to the Securities Purchase Agreement, the Company agreed to issue, upon the consummation of the closing of each tranche, common stock purchase warrants (“Warrants”) to the Investor, in each case to purchase a number of shares of common stock determined by dividing 40% of the applicable principal amount of the corresponding Note by the VWAP (as defined in the Securities Purchase Agreement) immediately prior to the applicable closing date. In the First Closing of the First Tranche, the Company issued Investor Warrants to purchase 318,827 shares of common stock at an initial exercise price of $1.9098 per share, subject to certain adjustments set forth therein.

~~LAKESIDE~~The ~~HOLDING~~Note ~~LIMITED~~does not bear any ~~NOTES~~interest TOabsent ~~CONDENSED~~an ~~CONSOLIDATED~~Event ~~FINANCIAL~~of ~~STATEMENTS~~Default (as defined in the Note) and matures on June 5, 2026. Commencing on the earlier of (i) the 60-day anniversary after the date hereof and (ii) the date on which the first Resale Registration Statement shall have been declared effective by the Commission, the Company is required to pay to the Investor the outstanding principal balance under the Note in monthly installments, on such date and each one (1) month anniversary thereof, in an amount equal to 105% of the total principal amount multiplied by the quotient determined by dividing one by the number of months remaining until the maturity date of the Note, until the outstanding principal amount has been paid in full or, if earlier, upon acceleration, conversion or redemption of the Note in accordance with its terms. All monthly payments are payable by the Company, in cash, provided that under certain circumstances, as provided in the Note, the Company may elect to pay in common stock. The number of common shares to be converted shall be calculated by the monthly payment divided by the Conversion Price. The Conversion Price is the lesser of (i) the initial fixed conversion price of $1.9098 and (ii) 95% of the average of the four lowest daily VWAPs during the 20 trading day period immediately preceding the applicable payment date, provided that such price shall not be less than the Floor Price of $0.234. At any time after the original issuance date, the Note shall be convertible (in whole or in part) at the option of the Investor into such number of fully paid and non-assessable shares of Common Stock as is determined by dividing (x) that portion of the outstanding Principal and any accrued and unpaid interest thereon that Invest elects to convert by (y) the Applicable Conversion Price then in effect on the date.

~~(UNAUDITED)~~On April 22, 2025, the Second Closing of the First Tranche was consummated. The Company issued Investor Warrants to purchase 202,082 shares of common stock at an initial exercise price of $1.929 per share, subject to certain adjustments set forth therein.

~~NOTE 12 — CONVERTIBLE NOTES (cont.)~~F-32

~~The~~LAKESIDE ~~Company~~HOLDING ~~evaluated the~~LIMITED ~~loan~~NOTES ~~portion~~TO ofCONDENSED ~~the~~CONSOLIDATED ~~Note~~FINANCIAL and the accompanying warrant under the guidance of ASC 470-20, “Debt with Conversion and Other Options,” and ASC 815, “Derivatives and Hedging.” The Company determined that the warrant met the criteria for equity classification under ASC 815-40. Accordingly, the fair value of the warrant was recorded as a component of additional paid-in capital on the issuance date.STATEMENTS

The Company also evaluated the conversion feature embedded in its convertible note under ASC 815 and determined that embedded derivative is clearly and closely related to its host contract as its indexed to the Company's stock price and its underlying economic characteristics and risks. As such, bifurcation of the conversion feature as a derivative was not required. The Company accounted for the Note as a liability under ASC 470-20. The Note is subsequently accounted for at amortized cost in accordance with the interest method under ASC 835-30.(UNAUDITED)

~~The~~NOTE ~~debt~~13 — CONVERTIBLE ~~discount and issuance~~DEBTS ~~cost will be amortized to interest expense over the term of the Note using the effective interest method~~(cont.)

OnThe ~~the~~Company ~~issuance~~evaluated ~~date,~~ the ~~fair~~Note ~~value of note payable~~ with conversion ~~feature~~features ~~was estimated using discounted cash flow method with a discount rate of 30% for note payable without conversion feature~~ and ~~Black-Scholes~~the ~~pricing~~detachable ~~model~~warrant ~~for~~under the ~~embedded~~guidance ~~conversion feature. The fair value~~ of ~~warrants~~ASC ~~was estimated using the Black~~470-~~Scholes~~20, ~~pricing~~“Debt ~~model~~ with ~~the~~Conversion ~~following~~and ~~weighted-average~~Other ~~assumptions: market value of underlying share of $1.21~~Options, ~~risk~~as ~~free~~amended ~~rate~~by ofASU ~~4.08%,~~2020-06” ~~expected~~and ~~term~~ASC ~~of 5 years; exercise price of the warrants of $1.9098~~815, ~~volatility~~“Derivatives ~~of 120.4%;~~ and ~~expected future dividends of nil~~Hedging.” The ~~aggregate~~Company ~~fair~~determined ~~value~~that of the ~~debt~~warrant ~~and~~met ~~equity components exceeded~~ the criteria ~~face~~for ~~value~~equity ofclassification ~~the~~under ~~Note~~ASC 815-40. Accordingly, the ~~Company allocated the proceeds based on the~~ relative fair value ~~method.~~of ~~The~~the ~~note~~warrant ~~also~~was ~~included~~recorded anas ~~original~~a ~~issue discount and incurred total debt~~component ~~issuance~~of ~~costs,~~additional ~~which~~paid-in ~~were~~capital ~~allocated to the note payable and warrants~~ on the ~~relative fair value basis in accordance with ASC 835-30 and ASC 470-20. The debt discount and~~ issuance ~~cost will be amortized to interest expense over the term of the Convertible Bonds using the effective interest method~~date.

The Company ~~recorded~~determined ~~a relative~~that ~~fair~~embedded ~~value~~derivative ofmeets ~~note~~the ~~payable~~definition of ~~$774,033~~derivative ~~and~~instruments ~~relative~~under ~~fair~~ASC ~~value of warrants of $225~~815,~~967~~ onDerivatives ~~issuance~~and ~~date~~Hedging. ~~After~~Following ~~allocating~~ the ~~proceeds~~ adoption of ASU ~~the liability and equity component~~2020-06, the ~~Company~~Notes ~~allocated~~are ~~$244,488~~recorded ~~initial~~as ~~purchaser’s~~a ~~discount~~single ~~and~~unit ~~debt~~within ~~issuance~~liabilities ~~cost~~in ofthe ~~$70,000 and~~unaudited ~~$174,488,~~condensed ~~respectively.~~consolidated ~~The~~balance ~~initial~~sheets ~~purchaser’s~~as ~~discount and debt issuance costs primarily consisted of underwriting fees ,~~the ~~lawyers~~conversion ~~fee,~~features ~~investor~~within ~~legal~~the ~~fee,~~Notes ~~auditor~~are ~~fee~~not ~~and~~derivatives ~~SEC~~that ~~registration~~require ~~fee.~~bifurcation ~~These costs were allocated to the debt~~ and ~~equity component based on~~ the ~~allocation~~Notes ofdo ~~the~~not ~~proceeds~~involve asa ~~follows:~~substantial premium.

	Amount		Equity Component		Debt Component
Initial purchaser’s debt discount	$	70,000	$	15,818	$	54,182
Debt issuance cost		174,488		39,428		135,060
Total	$	244,488	$	55,246	$	189,242

The Company accounted for the host debt as a liability recorded at amortized cost under ASC 470-10, net of issuance costs and any discount that allocated to debt component.

The ~~portion~~debt ~~allocated~~discount toand ~~debt~~issuance cost ~~component~~will isbe amortized to interest expense ~~using~~ ~~the effective interest method~~ over the ~~effected~~term ~~life~~ of the ~~Notes,~~Note orusing ~~approximately~~the ~~15 months term. The~~ effective interest ~~rate on the liability component of the Notes for the period from date of issuance is 95~~method.~~52% , which remains unchanged from the date of issuance.~~

	March 31, 2025
Long Term Debt
Outstanding principal	$	774,033
Unamortized Initial Purchaser’s debt discount and debt issuance cost		(164,725	)
Accrued interest		16,025
Net carry amount	$	625,333
Convertible note, current	$	484,541
Convertible note, non-current		140,792
Total	$	625,333

The Company recorded $667,068, net of the discount and debt issuance cost of $215,867, as the balance of the debt component and $88,444, net of the discount and debt issuance cost of $28,621, as the equity for the warrants at the inception point of the first Closing date by assessing the fair value of each component.

The Company ~~recognized~~recorded ~~interest~~$361,661, ~~expense~~net of ~~$40,541~~the discount and debt issuance cost of $4074,~~541~~075, ~~for~~as the ~~three~~balance ~~and~~of ~~nine~~the ~~months~~debt ~~ended~~component ~~March~~and 31$53, ~~2025~~340, ~~which~~net ~~includes~~of the discount and debt issuance cost of $2410,~~517~~924, ~~related~~as tothe equity for the ~~amortization~~ warrants at the inception point of the ~~debt~~second ~~discount~~Closing date by assessing the fair value of each component.

29The relative fair value of warrants of first closing of the first tranche was estimated using the Black-Scholes pricing model with the following weighted-average assumptions: market value of underlying share of $1.21, risk free rate of 4.08%, expected term of 5 years; exercise price of the warrants of $1.9098, volatility of 46.09%; and expected future dividends of nil.

~~LAKESIDE~~The ~~HOLDING~~relative ~~LIMITED~~fair value of ~~NOTES~~warrants TOof ~~CONDENSED~~second ~~CONSOLIDATED~~closing ~~FINANCIAL~~of ~~STATEMENTS~~the first tranche was estimated using the Black-Scholes pricing model with the following weighted-average assumptions: market value of underlying share of $0.93, risk free rate of 3.98%, expected term of 5 years; exercise price of the warrants of $1.929, volatility of 46.37%; and expected future dividends of nil.

~~(UNAUDITED)~~The Company applied the relative fair value method to allocate the proceeds from the issuance of convertible debt. The Note’s original issue discount and incurred total issuance costs were allocated to the note payable and warrants on the relative fair value basis in accordance with ASC 835-30 and ASC 470-20. The debt discount and issuance cost allocated to the loan component will be amortized to interest expense over the term of the Convertible Debts using the effective interest method.

~~NOTE 13 — GENERAL AND ADMINISTRATIVE EXPENSES~~F-33

	For the nine months ended March 31,
	2025		2024
Payroll expense	$	2,482,917	$	1,646,558
Staff benefit expense		423,465		321,229
Professional expense		792,984		56,400
Travelling and entertainment		451,459		159,916
Office expense		358,638		259,750
Lease expense		248,398		57,286
Insurance		190,154		20,001
Other expense		146,234		72,107
Repair and maintenance		102,040		110,224
Depreciation expense		86,413		53,985
Advertising		95,485		27,329
Motor expense		13,341		17,415
Bank charges		2,703		1,111
Management fee		3,111		—
Amortization		32,056		—
Total	$	5,429,398	$	2,803,311

LAKESIDE HOLDING LIMITED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

	For the three months ended March 31,
	2025		2024
Payroll expense	$	770,807	$	624,230
Staff benefit expense		145,462		122,312
Professional expense		236,858		24,063
Travelling and entertainment		39,810		—
Other expense		46,821		17,632
Office expense		103,617		95,586
Lease expense		96,592		19,095
Insurance		65,023		13,053
Repair and maintenance		28,548		19,997
Depreciation expense		35,609		17,995
Advertising		72,715		3,000
Motor expense		3,616		5,048
Bank charges		823		470
Amortization		32,056		—
Management fee		1,982		—
Total	$	1,680,339	$	962,481

(UNAUDITED)

30NOTE 13 — CONVERTIBLE DEBTS (cont.)

~~LAKESIDE~~The ~~HOLDING~~initial ~~LIMITED~~purchaser’s ~~NOTES~~discount TOand ~~CONDENSED~~debt ~~CONSOLIDATED~~issuance ~~FINANCIAL~~costs ~~STATEMENTS~~primarily consisted of underwriting fees, lawyers fee, investor legal fee, auditor fee and SEC registration fee. These costs were allocated to the debt and equity component based on the allocation of the proceeds as follows:

(UNAUDITED)

	Amount		Equity Component		Debt Component
Initial purchaser’s debt discount	$	105,000		12,693		92,307
Debt issuance cost		224,488		26,852		197,636
Total	$	329,488		39,545		289,943

~~NOTE~~The ~~14 — RELATED~~portion ~~PARTY~~allocated ~~TRANSACTIONS~~to debt component is amortized to interest expense using the effective interest method over the effected life of the Notes, or approximately 13 and 15 months term. The effective interest rate on the liability component of the Notes for the period from date of issuance is 86.52% and 60.80% for the first closing and second closing, which remains unchanged from the date of issuance.

~~The~~During ~~relationship~~the three months ended September 30, 2025, the holder of ~~related~~the ~~parties~~Company’s isconvertible ~~summarized~~notes converted portions of the outstanding principal balance into asshares ~~follows:~~of the Company’s common stock pursuant to the original terms of the respective note agreements.

Name of Related Party		Relationship with the Company
Mr. Henry Liu		CEO, and an ultimate shareholder of the Company
Mr. Shuai Li		President, and an ultimate shareholder of the Company
Weship Transport Inc. (“Weship”)		Controlled by Mr. Henry Liu
American Bear Logistics (Wuhan) Co., Ltd. (“ABL Wuhan”)		The Company owns 5% of equity interest
American Bear Logistics (Shenzhen) Co., Ltd. (“ABL Shenzhen”)		100% owned subsidiary of ABL Wuhan
LLL Intermodal Inc. (“Intermodal”)		Controlled by Mr. Henry Liu
ABL LAX LLC. (“ABL LAX”)		Controlled by Mr. Henry Liu and Mr. Shuai Li

The conversions occurred on multiple dates throughout the period and resulted in the issuance of an aggregate of 820,330 shares of common stock in exchange for the conversion of $661,536 of outstanding principal.

a)The ~~Summary~~conversions ofwere ~~balances~~accounted for in accordance with ~~related~~ASC ~~parties~~470-20, Debt with Conversion and Other Options, as conversions under the original terms of the agreements. Accordingly, the carrying amount of the debt, including any unamortized discount, was reclassified to equity upon conversion, and no gain or loss was recognized.

~~Due~~As ~~from~~of ~~related~~September ~~parties~~30, ~~consists~~2025, the ofCompany ~~mainly~~had ~~the accumulated rent~~$133,198 ~~storage~~in ~~fees~~convertible ~~and~~notes ~~the~~outstanding, ~~salaries~~which ofremain ~~contractors~~convertible ~~charged~~under ~~from~~ the ~~following~~original ~~parties:~~ terms.

	March 31, 2025			June 30, 2024
	September 30, 2025			June 30, 2025
Due from Weship	$	635,139		$	422,742
Long term debt
Due from Intermodal		89,855			18,537
Outstanding principal	$	173,349		$	1,021,819
Due from ABL LAX		131,576			—
Unamortized Initial Purchaser’s debt discount and debt issuance cost		(40,151	)		(150,948	)
Total	$	856,570		$	441,279
Accrued interest		-			39,804
Net carrying amount	$	133,198		$	910,675
Convertible debts, current	$	133,198		$	910,675
Convertible debts, non-current		-			-
Total	$	133,198		$	910,675

The Company ~~has~~recognized ~~collected~~interest ~~approximately~~expense ~~$26,447~~of ~~from Weship and~~ $182,~~332~~295 ~~from~~for ~~ABL~~the ~~LAX~~three asmonths ended ofSeptember ~~the~~30, ~~report date~~2025, ~~and~~which isincludes ~~planning~~$69,602 related to ~~collect~~ the ~~remaining~~ ~~receivable~~amortization ~~balance~~of ~~from three related parties by~~ the ~~end~~debt ofdiscount ~~June~~and ~~2025~~issuance costs.

~~b) Summary of balances payable to related parties~~F-34

	March 31, 2025		June 30, 2024
Account payable to Weship	$	24,145	$	175,172
Account payable to ABL Wuhan		25,970		52,000
Account payable to Intermodal		18,780		550
Total	$	68,895	$	227,722

LAKESIDE HOLDING LIMITED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

c(UNAUDITED) ~~Summary of balances receivable from related parties~~

	March 31, 2025		June 30, 2024
Accounts receivable from Weship	$	7,385	$	32,435
Accounts receivable from ABL Shenzhen		147,336		—
Accounts receivable from ABL Wuhan		155,911		744,961
Total	$	310,632	$	777,396

NOTE 14 — GENERAL AND ADMINISTRATIVE EXPENSES

The Company has collected approximately $0.2 million from the related parties as of the report date.

	For the three months ended September 30,
	2025		2024
Payroll expense	$	828,791	$	759,142
Staff benefit expense		116,418		164,416
Professional expense		570,738		340,114
Travelling and entertainment		46,804		126,108
Office expense		151,986		165,481
Lease expense		99,161		64,125
Insurance		84,443		73,683
Other expense		91,988		68,094
Repair and maintenance		38,073		39,957
Depreciation on plant property and equipment		25,898		17,995
Advertising		21,104		11,686
Motor expense		9,541		5,791
Bank charges		1,339		614
Amortization on intangible assets		21,371		-
Total	$	2,107,655	$	1,837,206

31NOTE 15 — RELATED PARTY TRANSACTIONS

~~LAKESIDE~~The ~~HOLDING~~relationship ~~LIMITED NOTES~~of TOrelated ~~CONDENSED~~parties ~~CONSOLIDATED~~is ~~FINANCIAL~~summarized as ~~STATEMENTS~~follows:

(UNAUDITED)

Name of Related Party		Relationship with the Company
Mr. Henry Liu		CEO, and an ultimate shareholder of the Company
Mr. Shuai Li		President, and an ultimate shareholder of the Company
Weship Transport Inc. (“Weship”)		Controlled by Mr. Henry Liu
American Bear Logistics (Wuhan) Co., Ltd. (“ABL Wuhan”)		The Company owns 5% of equity interest
American Bear Logistics (Shenzhen) Co., Ltd. (“ABL Shenzhen”)		100% owned subsidiary of ABL Wuhan
LLL Intermodal Inc. (“Intermodal”)		Controlled by Mr. Henry Liu
ABL LAX LLC. (“ABL LAX”)		Controlled by Mr. Henry Liu and Mr. Shuai Li
ABWL Group		Controlled by Mr. Henry Liu and Mr. Shuai Li

~~NOTE 14 — RELATED PARTY TRANSACTIONS (cont.)~~F-35

d)LAKESIDE ~~Summary~~HOLDING ofLIMITED NOTES ~~related~~TO ~~parties’~~CONDENSED ~~transactions~~CONSOLIDATED FINANCIAL STATEMENTS

	For the three months ended March 31,
	2025		2024
Revenue from Weship (a)	$	3,579	$	29,295
Revenue from ABL Wuhan (a)	$	245,006	$	613,742
Revenue from ABL Shenzhen (a)	$	199,775	$	—
Cost of revenue charged by Weship (b)	$	146,650	$	297,769
Rental income from Weship (c)	$	76,629	$	91,063
Rental income from Intermodal (d)	$	11,963	$	—
Cost of revenue charged by Intermodal (e)	$	153,324	$	131,199
Cost of revenue charged by ABL Wuhan (f)	$	62,620	$	18,000

(UNAUDITED)

	For the nine months ended March 31,
	2025		2024
Revenue from Weship (a)	$	5,341	$	57,362
Revenue from ABL Wuhan (a)	$	692,212	$	1,010,271
Revenue from ABL Shenzhen (a)	$	507,801		—
Cost of revenue charged by Weship (b)	$	661,763	$	1,061,960
Rental income from Weship (c)	$	255,483	$	147,447
Rental income from Intermodal (d)	$	11,963	$	—
Cost of revenue charged by Intermodal (e)	$	494,333	$	378,160
Cost of revenue charged by ABL Wuhan (f)	$	127,548	$	29,725

NOTE 15 — RELATED PARTY TRANSACTIONS (cont.)

~~During the three and nine~~a) ~~months~~Other ~~ended~~receivable ~~March~~from ~~31, 2025 and 2024, the Company had the following transactions with its~~ related parties ~~— Weship, ABL Wuhan, ABL Shenzhen and Intermodal~~

~~(a)~~Other ~~The~~receivable ~~Company~~from ~~provides~~related parties ~~logistic~~consists ~~forwarding~~of ~~services~~balances towith ~~Weship,~~the ~~ABL~~parties ~~Wuhan~~listed ~~and~~below, ~~ABL~~arising ~~Shenzhen~~from ~~and~~interest ~~charges Weship~~receivable, ~~ABL~~storage ~~Wuhan~~income, ~~and~~rental ~~ABL~~income, ~~Shenzhen~~contractor salaries atcharged ~~its~~by ~~regular~~related ~~market~~parties, ~~rate~~other ~~for~~expenses ~~the~~paid ~~services~~on ~~provided.~~their behalf:

(b) Weship is one of the Company’s vendors for truck delivery service.

	September 30, 2025			June 30, 2025
Other receivable from Weship	$	845,095			753,116
Other receivable from Intermodal		83,929			99,635
Other receivable from ABL LAX		12,432			18,291
Other receivable from ABWL Group		207,000			-
Other payable to ABL Shenzhen		(1,612	)		(1,612	)
Total	$	1,146,844			869,430

~~(c)~~ The Company ~~subleased~~has ~~portion~~fully ofcollected ~~its~~receivable ~~warehouse~~from ~~space~~ABWL toGroup, ~~Weship~~and ~~for~~collected approximately ~~rental~~$35,000 ~~income.~~from ~~The~~Weship ~~Company~~as ~~subleased~~of ~~its~~November ~~warehouse~~13, in2025, ~~Chicago~~and tois ~~Weship~~planning into ~~July~~collect ~~2023~~the ~~and~~remaining ~~again~~receivable ~~for~~balance ~~the~~from ~~period~~three ~~from~~related parties ~~January~~by ~~2024~~the toend ~~March~~of December 2025.

(db) Summary ~~The Company subleased portion~~ of ~~its~~balances ~~warehouse~~payable ~~space~~ to ~~Intermodal~~related ~~for four months and another warehouse for twelve months. (e) Intermodal is one of the Company’s vendors for truck delivery service.~~parties

(f) ABL Wuhan provides labor force and certain cross-border freight consolidation and forwarding services and is one of our cross-border freight consolidation and forwarding service providers.

	September 30, 2025		June 30, 2025
Account payable to Weship	$	84,821		35,003
Account payable to ABL Wuhan		19,861		9,012
Account payable to Intermodal		-		21,222
Total	$	104,682		65,237

32c) Summary of balances receivable from related parties

LAKESIDE HOLDING LIMITED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

	September 30, 2025		June 30, 2025
Accounts receivable from Weship	$	8,853		8,853
Accounts receivable from ABL Shenzhen		145,215		129,588
Accounts receivable from ABL LAX		320		-
Accounts receivable from ABL Wuhan		198,508		257,890
Total	$	352,896		396,331

~~(UNAUDITED)~~Approximately $280,000 or 79.1% of the accounts receivable from related party customers have been collected as of November 13, 2025.

~~NOTE 14 — RELATED PARTY TRANSACTIONS (cont.)~~F-36

e)LAKESIDE ~~Due~~HOLDING toLIMITED NOTES ~~shareholders~~TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

		March 31, 2025				June 30, 2024
Due to shareholders, end		$	—			$	(1,018,281	)

(UNAUDITED)

~~The~~NOTE ~~balance~~15 — RELATED ~~with~~PARTY ~~the shareholders is unsecured, interest free, and due on demand~~TRANSACTIONS (cont. ~~The Company had balance of due to shareholder Henry Liu of nil and $986,923 and Shuai Li of nil and $31,358 as of March 31, 2025 and June 30, 2024, respectively.~~)

fd) Loan ~~Dividend~~receivable ~~payable~~from torelated ~~shareholders~~parties

	March 31, 2025		June 30, 2024
	September 30, 2025		June 30, 2025
Dividend payable to Mr. Henry Liu	$	—	$	(27,056	)
Loan receivable from Weship	$	148,000		148,000
Dividend payable to Mr. Shuai Li		—		(71,794	)
Loan receivable from ABL LAX		238,541		129,741
Total	$	—386,541	$	~~(98~~277,~~850~~741	)

NoThe ~~non-taxable dividend~~Company entered into ~~was~~a ~~declared~~loan agreement with related parties to ~~shareholders~~support ~~for~~working capital needs. The loan bears interest at an annual rate of 8.99%, with the outstanding ~~three~~principal ~~and~~not ~~nine~~exceeding US$1.0 million. The loan matures within twelve months from the date of execution. During the three months ended ~~March~~September 3130, 2025, the Company advanced a loan of $108,800 to ABL LAX. As of ~~March~~September 3130, 2025, ~~dividends~~the ~~payable~~total ofloan ~~$98,850 were~~receivable ~~offset~~from ~~against~~related ~~balances~~parties ~~due~~was ~~from~~$0.4 ~~shareholders~~million.

ge) ~~Salaries~~Other ~~and~~payable ~~employee benefits paid~~ to ~~major~~related ~~shareholders~~parties

	For the three months ended March 31,
	September 30, 2025			June 30, 2025
	2025			2024
Other payable to ABL Wuhan	$	(260,144	)	$	-
Mr. Henry Liu	$	19,707		$	25,318
Mr. Shuai Li		22,584			29,009
Total	$	42,291		$	54,327

	For the nine months ended March 31,
	2025		2024
Mr. Henry Liu	$	53,492	$	80,713
Mr. Shuai Li		61,299		85,217
Total	$	114,791	$	165,930

f) Summary of related parties’ transactions

	For the three months ended September 30,
	2025		2024
Revenue from Weship (a)	$	—	$	1,432
Revenue from ABL Wuhan (a)	$	325,612	$	424,827
Revenue from ABL Shenzhen (a)	$	251,963	$	55,508
Revenue from ABL LAX	$	2,585	$	—
Cost of revenue charged by Weship (b)	$	250,316	$	346,015
Rental income from Weship (c)	$	76,182	$	97,312
Rental income from Intermodal (d)	$	4,099	$	—
Cost of revenue charged by Intermodal (e)	$	154,336	$	172,465
Cost of revenue charged by ABL Wuhan (f)	$	61,854	$	46,250
Interest expense charge by ABL Shenzhen (see Note 12)	$	2,418	$	—

~~LAKESIDE~~During ~~HOLDING~~the ~~LIMITED~~three months ended ~~NOTES~~September TO30, ~~CONDENSED~~2025 ~~CONSOLIDATED~~and ~~FINANCIAL~~2024, ~~STATEMENTS~~the Company had the following transactions with its related parties — Weship, ABL Wuhan, ABL Shenzhen, ABL LAX and Intermodal

(~~UNAUDITED~~a) The Company provides logistic forwarding services to Weship, ABL Wuhan and ABL Shenzhen and charges Weship, ABL Wuhan and ABL Shenzhen at its regular market rate for the services provided.

~~NOTE~~(b) ~~15 — TAXES~~Weship is one of the Company’s vendors for truck delivery service.

~~Corporate~~(c) ~~Income~~The ~~Taxes~~Company subleased portion of its warehouse space to Weship for rental income. The Company subleased its warehouse in Chicago to Weship in July 2023 and again for the period from January 2024 to September 2025. The Company also subleased another warehouse with monthly rent of $6,500 from August 01, 2023 to October 31, 2024.

Before the Reorganization, the Company was elected to be taxed as an “S Corporation” under the provisions of the Internal Revenue Code and comparable state income tax law. As an S Corporation, the Company is not subject to Federal income tax and Illinois State tax. Taxable income “pass through” to the personal tax returns of the owners. However, Illinois allows subchapter S corporations to elect to pay the Pass-through Entity (“PTE”) tax at entity level for tax years ending on or after December 31, 2021 and beginning prior to January 1, 2026. The PTE tax rate is equal to 4.95% of the taxpayer’s net income for the taxable year. The S corporation making the election is liable for paying the PTE tax, and the shareholders will receive credit for the amount of PTE tax credit paid but shall be liable to pay any remaining tax based on their share of the pass-through entity’s income and credits. Illinois also taxes 1.5% replacement tax on S corporation’s net taxable income.

(d)	The Company subleased portion of its warehouse space to Intermodal for three months ended September 30, 2025.

(e)	Intermodal is one of the Company’s vendors, providing truck delivery service and provides labour forces.

~~The~~(f) ~~Company~~ABL ~~terminated~~Wuhan ~~its status~~provides aslabor aforce ~~Subchapter~~and Scertain ~~Corporation~~cross-border asfreight ofconsolidation ~~September~~and ~~23,~~forwarding ~~2023,~~services inand ~~connection with its Reorganization. As a C Corporation, the Company combined statutory income tax rate~~ is ~~28%~~one ~~in each period, representing a U.S. federal income tax rate~~ of ~~21.0%~~our ~~and~~cross-border 7%freight ~~state~~consolidation ~~income tax for Illinois. Also, as a C Corporation, the Company is subjected to Illinois State replacement tax at rate of 2.5%~~ and noforwarding ~~PTE~~service ~~tax is applicable~~providers.

~~The Company’s PRC subsidiary, is governed by the income tax laws of the PRC and is subjected to 25% of the preferential tax rate.~~F-37

InLAKESIDE ~~conjunction~~HOLDING ~~with the termination~~LIMITED ofNOTES ~~the~~TO ~~Subchapter~~CONDENSED SCONSOLIDATED ~~corporation~~FINANCIAL status, the C Corporation deferred tax assets and liabilities were estimated for future tax consequences attributable to difference between the financial statement carrying amounts of the Company’s existing assets and liabilities and their respective tax bases. The deferred tax assets and liabilities were measured using tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of the change in tax rates resulting from becoming a C Corporation was recognized as a $17,894 increase to the net deferred tax assets to $50,877 and an increase to the provision for income taxes of $17,894 during the nine months ended March 31, 2024.STATEMENTS

As of March 31, 2025 and June 30, 2024, the Company did not have an accrued liability for uncertain tax positions and does not anticipate recognition of any significant liabilities for uncertain tax positions during the next 12 months. For the period ended March 31, 2025 and 2024, no amounts were incurred for income tax uncertainties or interest and penalties. The Company is currently not aware of any issues under review that could result in significant payments, accruals, or material deviation from its position. The Company’s tax years since its formation remain subject to possible income tax examination by its major taxing authorities for all periods.(UNAUDITED)

~~The~~NOTE ~~provision~~15 — RELATED ~~for~~PARTY ~~income tax for the nine months ended March 31, 2025 and 2024 consists of the following:~~TRANSACTIONS (cont.)

	For the nine months ended March 31,
	2025		2024
Current income tax expense	$	26,608	$	94,471
Deferred income tax expense		81,567		18,370
Deferred state tax adjustment – change of tax rates		—		17,894
Total income tax expense	$	108,175	$	130,735

f) Due to shareholders

	September 30, 2025		June 30, 2025
Due to shareholders, beginning	$	-	$	-
Addition		142,826		-
Due to shareholders, end	$	142,826	$	-

~~LAKESIDE~~The ~~HOLDING~~balance ~~LIMITED~~with the shareholders ~~NOTES~~is TOunsecured, ~~CONDENSED~~interest ~~CONSOLIDATED~~free, ~~FINANCIAL~~and ~~STATEMENTS~~due on demand. The Company had balance of due to shareholder Henry Liu of $71,413 and nil and Shuai Li of $71,413 and nil as of September 30, 2025 and June 30, 2025, respectively.

~~(UNAUDITED~~ g) Salaries and employee benefits paid to major shareholders

NOTE 15 — TAXES (cont.)

	For the three months ended September 30,
	2025		2024
Mr. Henry Liu	$	22,523		22,523
Mr. Shuai Li		25,810		25,810
Total	$	48,333		48,333

~~The~~NOTE ~~following~~16 ~~table reconciles the statutory tax rate to the Company’s effective tax the nine months ended March 31, 2025 and 2024:~~— TAXES

	For the nine months ended March 31,
	2025			2024
Loss before tax	$	(4,244,848	)	$	(99,558	)
Statutory state tax rate		21	%		21	%
Income tax recovery at the federal statutory rate		(891,418	)		(20,907	)
Illinois state tax/PET tax recovery		(270,536	)		21,682
Illinois replacement tax recovery		(96,620	)		7,743
Non-deductible expense		21,153			—
Change in valuation allowance		1,360,798			—
Tax benefit as S corporate		—			65,045
Tax effect on other tax jurisdiction		(15,202	)		57,172
Total income tax expense	$	108,175		$	130,735

Corporate Income Taxes

~~The~~Before ~~provision~~the ~~for~~Reorganization, the Company was elected to be taxed as an “S Corporation” under the provisions of the Internal Revenue Code and comparable state income tax law. As an S Corporation, the Company is not subject to Federal income tax and Illinois State tax. Taxable income “pass ~~for~~through” to the ~~three~~personal ~~months~~tax ~~ended~~returns ~~March~~of the owners. However, Illinois allows subchapter S corporations to elect to pay the Pass-through Entity (“PTE”) tax at entity level for tax years ending on or after December 31, ~~2025~~2021 and ~~2024~~beginning ~~consists~~prior to January 1, 2026. The PTE tax rate is equal to 4.95% of the ~~following:~~taxpayer’s net income for the taxable year. The S corporation making the election is liable for paying the PTE tax, and the shareholders will receive credit for the amount of PTE tax credit paid but shall be liable to pay any remaining tax based on their share of the pass-through entity’s income and credits. Illinois also taxes 1.5% replacement tax on S corporation’s net taxable income.

	For the three months ended March 31,
	2025			2024
Current income tax expense	$	26,608		$	94,471
Deferred income tax expense		(8,014	)		10,139
Total income tax expense	$	18,594		$	104,610

The Company terminated its status as a Subchapter S Corporation as of September 23, 2023, in connection with its Reorganization. As a C Corporation, the Company combined statutory income tax rate is 28% in each period, representing a U.S. federal income tax rate of 21.0% and 7% state income tax for Illinois. Also, as a C Corporation, the Company is subjected to Illinois State replacement tax at rate of 2.5% and no PTE tax is applicable.

~~The~~Under ~~following~~the ~~table~~PRC ~~reconciles~~Enterprise ~~the~~Income ~~statutory~~Tax ~~tax~~Law ~~rate~~(the to“EIT Law”), the ~~Company’s~~standard ~~effective~~enterprise income tax ~~the~~rate ~~three~~for ~~months~~domestic ~~ended~~enterprises ~~March~~and ~~31,~~foreign ~~2025~~invested ~~and~~enterprises is ~~2024:~~25%.

	For the three months ended March 31,
	2025			2024
(Loss) income before tax	$	(1,052,202	)	$	117,378
Statutory state tax rate		21	%		21	%
Income tax (recovery) expense at the federal statutory rate		(220,962	)		24,649
Illinois state tax/PET tax (recovery) expense		(70,470	)		21,682
Illinois replacement tax (recovery) expense		(25,168	)		7,743
Non-deductible expense		21,153			—
Change in valuation allowance		312,122			65,045
Tax effect on other tax jurisdiction		1,919			(14,509	)
Total income tax expense	$	18,594		$	104,610

F-38

35LAKESIDE HOLDING LIMITED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~LAKESIDE HOLDING LIMITED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~(UNAUDITED)

NOTE 16 — TAXES (~~UNAUDITED~~cont.)

~~NOTE~~Corporate ~~15 — TAXES~~ Income Taxes (cont.)

~~The~~In conjunction with the termination of the Subchapter S corporation status, the C Corporation deferred tax assets and liabilities were estimated for future tax consequences attributable to difference between the financial statement carrying amounts of the Company’s ~~deferred~~existing assets and liabilities and their respective tax bases. The deferred tax assets and liabilities ~~consist~~were measured using tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of the ~~following:~~change in tax rates resulting from becoming a C Corporation was recognized as a $72,152 decrease to the net deferred tax assets to $89,581 and an decrease to the provision for income taxes of $186,485 during the three months ended September 30, 2024.

	March 31, 2025			June 30, 2024
Deferred tax assets:
Allowance for credit loss	$	18,937		$	16,490
Lease liability – operating		1,201,611			1,126,429
Lease liability – financing		36,987			16,799
Non-capital loss carried forward		1,148,608			-
Valuation allowance		(1,360,798	)		-
Total deferred tax assets	$	1,045,343		$	1,159,718
Deferred tax liabilities:
Right of use assets – operating		(1,014,112	)		(1,058,707	)
Right of use assets – financing		(31,231	)		(11,430	)
Intangible asset – license		(96,703	)		-
Total deferred tax liabilities		(1,142,046	)		(1,070,137	)
Deferred tax (liability) assets, net	$	(96,703	)	$	89,581

As of September 30, 2025 and June 30, 2025, the Company did not have an accrued liability for uncertain tax positions and does not anticipate recognition of any significant liabilities for uncertain tax positions during the next 12 months. For the period ended September 30, 2025 and 2024, no amounts were incurred for income tax uncertainties or interest and penalties. The Company is currently not aware of any issues under review that could result in significant payments, accruals, or material deviation from its position. The Company’s tax years since its formation remain subject to possible income tax examination by its major taxing authorities for all periods.

~~NOTE~~The 16provision ~~— STOCKHOLDERS’~~for ~~EQUITY~~income tax for the three months ended September 30, 2025 and 2024 consists of the following:

Common Stocks

	For the three months Ended September 30,
	2025			2024
Current income tax expense	$	57,979			-
Deferred income tax recovery		(21,989	)		89,581
Total income tax expense	$	35,990			89,581

The ~~Company~~following ~~was~~table ~~incorporated~~reconciles ~~under~~ the ~~laws~~statutory oftax ~~the~~rate ~~State~~to ~~of Nevada on August 28, 2023. In accordance with~~ the Company’s ~~Articles~~effective oftax ~~Incorporation,~~ the ~~Company is~~three ~~authorized~~months toended ~~issue~~September 5030,~~000 shares~~ of2025 ~~common~~and ~~stock with par value of $0.0001. 50,000 shares of common stocks of the Company were issued on August 28, 2023.~~2024:

On October 25, 2023, the Company amended its Articles of Incorporation to increase its number of authorized common stocks from 50,000 shares to 200,000,000 shares.

	For the three months Ended September 30,
	2025			2024
Loss before tax	$	(1,321,226	)		(1,245,826	)
Statutory state tax rate		21	%		21	%
Income tax recovery at the federal statutory rate		(277,457	)		(261,623	)

Illinois state tax/PET tax recovery		(94,066	)		(79,470	)
Illinois replacement tax recovery		(33,595	)		(28,382	)
Non-deductible expense		6,919			—
Federal income tax		—			—
Change in valuation allowance		433,286			463,478
Foreign tax rate differential		903			(4,422	)
Total income tax expense	$	35,990			89,581

~~On March 29, 2024, a 120~~F-for-1 share split was conducted by the Company. After the share split and as of the date of this report, the issued share capital of the Company consists of $600 divided into 6,000,000 common shares, par value of $0.0001 each.39

OnLAKESIDE ~~July~~HOLDING ~~1, 2024, the Company~~LIMITED ~~closed~~NOTES ~~its~~TO ~~IPO~~CONDENSED ofCONSOLIDATED ~~1,500,000~~FINANCIAL shares of its common stock at an IPO price of $4.50 per share for aggregate gross proceeds of approximately $6.75 million from the offering. The total net proceeds to the Company from the IPO, after deducting discounts, expense allowance, and issuance expenses of a total of $1.0 million, were approximately $5.35 million.STATEMENTS

~~As of March 31, 2025 and June 30, 2024, 7,500,000 and 6,000,000 common shares were issued and outstanding, respectively, with par value of $0.0001.~~(UNAUDITED)

36NOTE 16 — TAXES (cont.)

~~LAKESIDE~~Corporate ~~HOLDING~~Income ~~LIMITED~~Taxes ~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~(cont.)

~~(UNAUDITED)~~The Company’s deferred tax assets and liabilities consist of the following:

NOTE 16 — STOCKHOLDERS’ EQUITY (cont.)

	September 30, 2025			June 30, 2025
Deferred tax assets:
Allowance for credit loss	$	46,863		$	24,940
Lease liability – operating		861,780			1,105,147
Lease liability – financing		32,091			34,557
Non-capital loss carried forward		2,104,596			1,569,089
Valuation allowance		(2,249,639	)		(1,816,352	)
Total deferred tax assets	$	795,691		$	917,381
Deferred tax liabilities:
Right of use assets – operating	$	(744,800	)	$	(880,513	)
Right of use assets – financing		(25,985	)		(28,608	)
Intangible asset – license		(86,017	)		(91,360	)
Total deferred tax liabilities		(856,802	)		(1,000,481	)
Deferred tax (liability) assets, net	$	(61,111	)	$	(83,100	)

~~Additional Paid~~As of September 30, 2025 and June 30, 2025, the accumulated tax losses of subsidiaries incorporated in the U.S. of approximately $6,332,000 and $4,673,000, are allowed to be carried forward to offset against future taxable profits. The carry forward of non-capital losses in ~~Capital~~ the U.S. generally has no time limit, but the loss could be only offset up to 80% of taxable income in a given year. The carry forward of net operating loss generated by the subsidiaries incorporated in the PRC, subject to the agreement of the PRC tax authorities, of approximately $693,000 and $637,000 as of September 30, 2025 and June 30, 2025 can be carried forward for 5 years.

~~The~~NOTE ~~Company~~17 ~~transferred its accumulated retained earnings as of September~~— ~~23, 2023 from retained earnings to additional paid-in capital as the original owners~~STOCKHOLDERS’ contribution to the capital of the Company upon the Reorganization and the termination of S corporation for ABL Chicago. For the period ended March 31, 2025, the Company closed its IPO and net proceed from offering, deducted by the IPO deferring cost and par value was transferred to additional paid-in capital.EQUITY

OnCommon the issuance date of the Notes, the Company recorded the relative fair value of the warrant of $170,720 after allocation of discount and issuance cost (see Note12) as a component of additional paid-in capital, using the Black-Scholes pricing model.Stocks

~~Representative~~The Company was incorporated under the laws of the State of Nevada on August 28, 2023. In accordance with the Company’s Articles of Incorporation, the ~~Warrants~~Company is authorized to issue 50,000 shares of common stock with par value of $0.0001. 50,000 shares of common stocks of the Company were issued on August 28, 2023.

~~Pursuant~~On ~~to the Underwriting Agreement~~October 25, 2023, the Company ~~issued~~amended ~~to the Representative and~~ its ~~designee~~Articles ~~warrants~~of ~~(the~~Incorporation ~~“Representative’s Warrants”)~~ to ~~purchase 75,000~~increase ~~shares~~its ofnumber ~~common stock. The Representative’s Warrants are exercisable at a per share exercise price~~ of ~~$4.50~~authorized ~~equal~~common tostocks ~~IPO price and are exercisable at any time and~~ from ~~time to time~~50, ~~in whole or in part, during the period commencing on December 30, 2024 and terminating on June 30, 2029. Neither the Representative’s Warrants nor any of the~~ 000 shares ~~issued~~to ~~upon exercise of the Representative’s Warrants may be sold~~200, ~~transferred~~000, assigned, pledged or hypothecated, or be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective economic disposition of such securities by any person, for a period of six months immediately following the commencement of sales of the offering000 shares.

~~Management~~On ~~determined~~March 29, ~~that these~~2024, ~~warrants meet the requirements~~ a 120-for ~~equity classification under ASC 815~~-401 share ~~because~~split ~~they~~was ~~are~~conducted ~~indexed~~by ~~to their own shares and meet~~ the ~~requirements for equity classification~~Company. ~~The~~After ~~warrants were recorded at their fair value on~~ the ~~date~~share ofsplit ~~grant~~and as ~~a component~~ of ~~shareholders’ equity.~~the ~~The~~date ~~fair value~~ of ~~these~~this ~~warrants was $159~~report,~~000,~~ ~~which~~the ~~was~~issued ~~considered~~share ~~a direct cost of IPO and included in additional paid-in~~ capital. ~~The~~of ~~fair value has been estimated using~~ the ~~Black-Scholes~~Company ~~pricing~~consists ~~model with the following weighted-average assumptions: market value~~ of ~~underlying~~$600 ~~share~~divided ofinto ~~$4.00~~6,000,000 ~~risk~~common ~~free rate of 4.3%~~shares, ~~expected~~par ~~term~~value of ~~five years; exercise price of the warrants of~~ $40.5,0001 ~~volatility of 61%; and expected future dividends of nil~~each.

AsOn ofJuly ~~March 31~~1, ~~2025~~2024, ~~75,000~~the Company ~~warrants~~closed inits ~~connection~~IPO ~~with~~of ~~IPO~~1,500,000 ~~funding~~shares ~~was~~of ~~outstanding,~~its ~~with~~common stock at an ~~exercise~~IPO price of $4.550 per share for aggregate gross proceeds of approximately $6.75 million from the offering. The total net proceeds to the Company from the IPO, after deducting discounts, expense allowance, and issuance ~~remaining~~expenses ~~life~~of a total of 4$1.500 ~~years~~million, were approximately $5.35 million.

~~Common stock purchase warrants~~F-40

~~Pursuant~~LAKESIDE toHOLDING ~~the Securities~~LIMITED ~~Purchase~~NOTES ~~Agreement,~~TO ~~the~~CONDENSED ~~Company~~CONSOLIDATED ~~agreed~~FINANCIAL ~~to issue, upon the consummation of the closing of each tranche, common stock purchase warrants (“Warrants”) to the Investor (see Note 12).~~STATEMENTS

~~As of March 31, 2025, 318,827 warrants in connection with the Notes were outstanding, with an exercise price of $1.9098 and remaining life of 4.93 years.~~(UNAUDITED)

~~Statutory~~NOTE ~~reserves~~17 — STOCKHOLDERS’ EQUITY (cont.)

~~The~~Common ~~Company~~Stocks is required to make appropriations to certain reserve funds, comprising the statutory surplus reserve and the discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (~~“PRC GAAP”)~~cont. Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entity’s registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the Board of Directors. The statutory reserve as determined pursuant to PRC statutory laws totaled approximately $7,014 and nil as of March 31, 2025 and June 30, 2024, respectively.)

~~NOTE~~Private ~~17 — EARNINGS (LOSS) PER SHARE~~offering

~~For~~On ~~the~~June ~~three and nine months ended March 31~~24, 2025, the Company entered ~~has~~into noa ~~stock~~Securities ~~option~~Purchase ~~issued~~Agreement with certain investors for the issuance and ~~its~~sale ~~warrants~~of ~~are~~an ~~considered~~aggregate toof be3,000,000 ~~antidilutive~~shares of its common stock, par value $0.0001 ~~Thus~~per share (the “Shares”), nothrough ~~impact~~a private offering. The Shares were sold at a purchase onprice ~~diluted~~of ~~earnings~~$1.00 per share., ~~For~~resulting ~~the three~~in ~~and~~total ~~nine~~gross ~~months~~proceeds ~~ended~~of ~~March 31~~approximately $3,000,000. ~~2024~~Upon closing of the private offering, the Company issued ~~has~~3,000,000 nocommon shares and recorded as an increase to common stock ~~options~~of $300 and ~~warrants issued~~additional ~~and~~paid-in nocapital ~~impact~~of $2,999,700 on ~~diluted~~the unaudited ~~earnings~~condensed ~~per~~consolidated ~~share~~balance sheet.

	For the three months ended March 31,
	2025			2024
Net (loss) income attributable to the Company	$	(1,070,796	)	$	12,768
Weighted average number of common shares outstanding – Basic and Diluted		7,500,000			6,000,000
Loss per share – Basic and Diluted	$	(0.14	)	$	—

On July 16, 2025, the Company entered into Securities Purchase Agreements with certain investors for the issuance and sale of an aggregate of 2,000,000 shares of its common stock, par value $0.0001 per share (the “Shares”), through a private offering. The Shares were sold at a purchase price of $0.75 per share, resulting in total gross proceeds of approximately $1,500,000. Upon closing of the private offering, the Company issued 2,000,000 common shares and recorded as an increase to common stock of $200 and additional paid-in capital of $1,499,800 on the unaudited condensed consolidated balance sheet.

37On August 4, 2025, the Company entered into Securities Purchase Agreements with certain investors for the issuance and sale of an aggregate of 1,807,229 shares of its common stock, par value $0.0001 per share (the “Shares”), through a private offering. The Shares were sold at a purchase price of $0.83 per share, resulting in total gross proceeds of approximately $1,500,000. Upon closing of the private offering, the Company issued 1,807,229 common shares and recorded as an increase to common stock of $181 and additional paid-in capital of $1,499,819 on the unaudited condensed consolidated balance sheet.

~~LAKESIDE~~Convertible ~~HOLDING~~debts ~~LIMITED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~conversion

During the three months ended September 30, 2025, holders of the Company’s convertible notes elected to convert an aggregate principal amount of $661,536 into 820,330 shares of the Company’s common stock pursuant to the original terms of the note agreements. The conversions resulted in a reduction of the carrying amount of convertible debt by $512,733, which was reclassified to stockholders’ equity. Accordingly, the Company recorded an increase to common stock of $82 (~~UNAUDITED~~reflecting the par value of shares issued) and an increase to additional paid-in capital of $512,651.

~~NOTE~~Common ~~17 — EARNINGS~~Shares ~~(LOSS)~~Issued ~~PER~~for ~~SHARE (cont.)~~Service

	For the nine months ended March 31,
	2025			2024
Net loss attributable to the Company	$	(4,353,023	)	$	(227,268	)
Weighted average number of common shares outstanding – Basic and Diluted		7,500,000			6,000,000
Loss per share – Basic and Diluted	$	(0.58	)	$	(0.04	)

On July 4, 2025, the Company signed a consulting agreement (the “Consulting Agreement”) with FirsTrust China Ltd. (“FirsTrust”) to provide professional consulting and advisory services to the Company for twelve months from July 7, 2025 in exchange for 600,000 the Company’s shares of common stock.

~~NOTE~~On ~~18 — CONCENTRATIONS~~July ~~RISK~~4, 2025, the Company entered into a consulting agreement (the “Consulting Agreement”) with SNC Investment Group Limited (“SNC”), under which SNC will provide strategic planning and corporate communication services to the Company for a twelve-month period beginning August 7, 2025. As compensation for these services, the Company agreed to issue 600,000 shares of its common stock in settlement of the service fees.

~~The~~On ~~Company~~July ~~had~~21, ~~two~~2025, ~~and~~the ~~two third-party~~Company ~~customers~~entered ~~individually~~into ~~generated~~a ~~over~~consulting ~~10%~~agreement of (the “Consulting ~~Company’s~~Agreement”) ~~total~~with ~~revenue~~China ~~for~~PINX ~~the~~International ~~nine~~Investment ~~months~~Group ~~ended~~Limited ~~March~~(“China ~~31,~~PINX”) ~~2025~~to ~~and~~provide merger ~~2024,~~and ~~respectively.~~acquisition ~~The~~consulting ~~Company had no~~ and noother related~~-party~~ ~~customer~~service ~~individually~~to ~~generated over 10% of~~ the Company’s ~~total revenue~~ for ~~the~~a ~~nine~~twelve-month ~~months~~period ~~ended~~beginning ~~March~~July 3121, 2025 ~~and 2024, respectively~~. AsUpon ofsigning ~~March 31~~the agreement, ~~2025 and June 30, 2024,~~ the Company ~~had~~issued ~~one~~500,000 ~~and~~restricted nocommon ~~third-party customers~~shares, ~~and~~valued noat ~~and~~the ~~one~~closing ~~related-party~~price ~~customer~~on ~~individually~~the ~~represented~~issuance ~~over 10% of account receivables, respectively~~date.

~~The~~On ~~Company~~August ~~had~~1, no2025, ~~and no third-party suppliers individually represented over 10% of~~ the Company’s entered ~~cost~~into ofa ~~revenue~~consulting ~~for~~agreement (the ~~nine~~“Consulting ~~months~~Agreement”) ~~ended~~with ~~March~~Jolly ~~31,~~Good ~~2025~~River ~~and~~Group ~~2024,~~Limited ~~respectively. The Company had no and~~(“Jolly”) noto ~~related-party~~provide ~~suppliers~~strategic ~~individually~~consulting ~~represented~~services ~~over~~to ~~10% of~~ the Company’s ~~cost of revenue~~ for ~~the~~a ~~nine~~twelve-month ~~months~~period ~~ended~~beginning ~~March~~August 311, ~~2025~~ ~~and 2024, respectively~~2025. ~~The~~As ~~Company~~compensation ~~had~~for ~~one~~these services, ~~and~~the ~~one~~Company ~~third-party supplier~~agreed ~~and~~to noissue ~~and~~600,000 ~~one~~shares ~~related-party supplier represented over 10%~~ of ~~the~~its ~~Company’s~~common ~~accounts~~stock ~~payable~~in assettlement of ~~March~~an ~~31,~~annual ~~2025~~service ~~and June 30, 2024, respectively~~fee.

~~NOTE~~For ~~19 — SEGMENT~~the ~~REPORTING~~three months ended September 30, 2025, the Company issued 2,300,000 shares of its common stock in connection with consulting agreements. In connection with these issuances, the Company recognized consulting expense of $359,239, recorded prepaid consulting services of $1,556,961, and increased additional paid-in capital by $1,915,970 during the period.

AnAs ~~operating segment is a component~~ of ~~the~~September ~~Company~~30, ~~that~~2025 ~~engages~~and inJune ~~business~~30, ~~activities~~2025, ~~from which it may earn revenues and incur expenses~~17,427,559 and ~~is identified on~~10,500,000 ~~the~~common ~~basis~~shares ofwere ~~the~~issued ~~internal financial reports that are provided to~~ and ~~regularly~~outstanding, ~~reviewed~~respectively, bywith ~~the~~par ~~Company’s~~value ~~chief operating decision maker in order to allocate resources and assess performance~~ of ~~the segment~~$0.0001.

Management of the Company concludes that it has two reporting segments listed as below for the nine months ended March 31, 2025. The Company and its subsidiaries are located either in the U.S. or China. The Company is primarily engaged in the business of providing customized crossF-~~border freight solutions in the U.S. and distribution of pharmaceutical products in China.~~41

~~For~~LAKESIDE ~~the~~HOLDING ~~nine months ended~~LIMITED ~~March~~NOTES ~~31,~~TO ~~2024,~~CONDENSED ~~the~~CONSOLIDATED ~~Company’s~~FINANCIAL CEO reviews consolidated results when making decisions about allocating resources and assessing performance of the Company, rather than by service types or customer geographic location; hence the Company concluded it has only one reporting segment.STATEMENTS

38(UNAUDITED)

~~LAKESIDE~~NOTE ~~HOLDING~~17 ~~LIMITED NOTES~~— STOCKHOLDERS’ TOEQUITY ~~CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~(cont.)

~~(UNAUDITED)~~Representative’s Warrants

~~NOTE~~Pursuant ~~19 — SEGMENT~~to ~~REPORTING~~the Underwriting Agreement, the Company issued to the Representative and its designee warrants (~~cont.~~the “Representative’s Warrants”) to purchase 75,000 shares of common stock. The Representative’s Warrants are exercisable at a per share exercise price of $4.50 equal to IPO price and are exercisable at any time and from time to time, in whole or in part, during the period commencing on December 30, 2024 and terminating on June 30, 2029. Neither the Representative’s Warrants nor any of the shares issued upon exercise of the Representative’s Warrants may be sold, transferred, assigned, pledged or hypothecated, or be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective economic disposition of such securities by any person, for a period of six months immediately following the commencement of sales of the offering.

~~The~~Management ~~summary~~determined ofthat these ~~key~~warrants ~~information~~meet the requirements for equity classification under ASC 815-40 because they are indexed to their own shares and meet bythe ~~segments~~requirements for equity classification. The warrants were recorded at their fair value on the ~~nine~~date ~~months~~of ~~ended~~grant ~~March~~as 31a component of shareholders’ equity. The fair value of these warrants was $159,000, ~~2025~~which was asconsidered ~~follows~~a direct cost of IPO and included in additional paid-in capital. The fair value has been estimated using the Black-Scholes pricing model with the following weighted-average assumptions: market value of underlying share of $4.00, risk free rate of 4.3%, expected term of five years; exercise price of the warrants of $4.5, volatility of 61%; and expected future dividends of nil.

	Cross-border freight solutions (U.S.)			Pharmaceutical distribution (China)			Others			Total for the nine months ended March 31, 2025
Revenue from external customers	$	9,559,567		$	715,362		$	–		$	10,274,929
Revenue from related parties	$	1,205,354		$	–		$	–		$	1,205,354
Cost of revenue	$	10,043,158		$	240,966		$	–		$	10,284,124
Gross profit	$	721,763		$	474,396		$	–		$	1,196,159
Depreciation & amortization	$	143,702		$	37,208		$	–		$	180,910
Income tax provision	$	89,581		$	18,594		$	–		$	108,175
Capital expenditure	$	181,963		$	155,991		$	–		$	337,954
Long-lived assets	$	4,086,014		$	841,336		$	–		$	4,927,350
Segment assets	$	6,622,288		$	2,326,550		$	990,925		$	9,939,763
Segment loss	$	(2,823,421	)	$	(398,645	)	$	(1,130,957	)	$	(4,353,023	)

As of September 30, 2025, 75,000 warrants in connection with IPO funding was outstanding, with an exercise price of $4.5 and remaining life of 3.75 years.

~~NOTE~~Common ~~20 — COMMITMENTS~~stock ~~AND~~purchase ~~CONTINGENCIES~~warrants

~~Contractual~~Pursuant ~~Commitments~~to the Securities Purchase Agreement, the Company agreed to issue, upon the consummation of the closing of each tranche, common stock purchase warrants (“Warrants”) to the Investor (see Note 13).

As of ~~March~~September 3130, 2025, 318,827 warrants in connection with the ~~Company’s~~first ~~contractual obligations~~closing ~~consist~~of the first tranche of the ~~following:~~Notes were outstanding, with an exercise price of $1.9098 and remaining life of 4.43 years.

Contractual Obligations	Total		Less than 1 year		1 – 3 years		3 – 5 years		More than 5 years
Operating lease obligations	$	4,643,998	$	2,595,757	$	1,306,541	$	741,700	$	—
Finance lease obligations		138,610		55,477		48,845		34,288		—
Vehicle loans		234,820		66,154		98,812		56,854		13,000
Equipment loans		49,952		39,114		10,838		—		—
Other loans		539,275		539,275		—		—		—
Convertible note		1,000,000		840,000		160,000		—		—
Loan payable to a related party		124,176		—		124,176		—		—
Total	$	6,730,831	$	4,135,777	$	1,749,212	$	832,842	$	13,000

As of September 30, 2025, 202,082 warrants in connection with the second closing of the first tranche of the Notes were outstanding, with an exercise price of $1.929 and remaining life of 4.56 years.

~~Contingencies~~Statutory reserves

The Company ~~may~~is berequired ~~involved in~~to make appropriations to certain ~~legal~~reserve ~~proceedings~~funds, comprising ~~claims~~the ~~and~~statutory ~~disputes~~surplus ~~arising~~reserve ~~from~~and the ~~commercial~~discretionary ~~operations,~~surplus ~~which~~reserve, inbased ~~general,~~on ~~are~~after-tax ~~subject~~net toincome ~~uncertainties and~~determined in ~~which~~accordance with ~~the~~generally ~~outcomes~~accepted ~~are~~accounting ~~not~~principles ~~predictable.~~of ~~The~~the ~~Company~~PRC ~~determines~~(“PRC ~~whether~~GAAP”). anAppropriations ~~estimated~~to ~~loss~~the ~~from~~statutory asurplus ~~contingency~~reserve ~~should be accrued by~~are ~~assessing~~required ~~whether~~to abe ~~loss~~at isleast ~~deemed~~10% ~~probable~~of ~~and~~the ~~can~~after-tax benet ~~reasonably~~income ~~estimated.~~determined ~~Although~~in ~~the~~accordance ~~Company~~with ~~can~~PRC ~~give~~GAAP nountil ~~assurances about~~ the ~~resolution of~~reserve ~~pending~~is ~~claims,~~equal ~~litigation~~to or50% ~~other~~of ~~disputes and~~ the entity’s ~~effect~~registered ~~such~~capital. ~~outcomes~~Appropriations ~~may~~to ~~have on~~ the ~~Company,~~discretionary ~~the~~surplus ~~Company~~reserve ~~believes~~are ~~that~~made ~~any~~at ~~ultimate liability resulting from~~ the ~~outcome~~discretion of ~~such proceedings, to~~ the ~~extent~~Board ~~not~~of ~~otherwise provided or covered by insurance, will not have~~Directors. aThe ~~material~~statutory ~~adverse~~reserve ~~effect~~as ondetermined ~~the~~pursuant ~~Company’s~~to ~~consolidated~~PRC ~~financial~~statutory ~~position~~laws ortotaled ~~results~~approximately of$74,608 ~~operations~~and or$63,416 ~~liquidity~~ as of ~~March~~September 3130, 2025 and June 30, 2025, respectively.

39F-42

LAKESIDE HOLDING LIMITED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 21 18 — ~~ASSETS~~LOSS ~~ACQUISITION~~PER SHARE

~~Hupan~~For ~~Pharmaceutical~~the ~~(Hubei)~~three ~~Co.~~months ended September 30, ~~Ltd~~2025 ~~acquisition~~and 2024, all potentially dilutive securities, including the convertible debenture and warrants, were excluded from the calculation of diluted loss per share because the Company was in a loss position. Their inclusion would have been antidilutive

On November 5, 2024, the Company entered into an equity transfer agreement (the “Equity Transfer Agreement”) with Hubei Haoyaoshi Zhenghe Pharmacy Chain Co., Ltd and Hubei Huayao Pharmaceutical Co., Ltd to acquire 100% of the equity interests in Hupan Pharmaceutical (Hubei) Co., Ltd (“Hupan Pharmaceutical”), a pharmaceutical distribution and supply chain service provider headquartered in Wuhan, China.

	For the three months ended September 30,
	2025			2024
Net loss attributable to the Company	$	(1,357,216	)		(1,335,407	)
Weighted average number of common shares outstanding – Basic and Diluted		14,733,489			7,500,000
Loss per share – Basic and Diluted	$	(0.09	)		(0.18	)

~~Pursuant~~NOTE to19 — SEGMENT the Equity Transfer Agreement, Sichuan Hupan will acquire the entirety of the equity interests that Hubei Haoyaoshi Zhenghe Pharmacy Chain Co., Ltd and Hubei Huayao Pharmaceutical Co., Ltd. hold in Hupan Pharmaceutical, for a total consideration of RMB4.0 million (US$552,730).REPORTING

The ~~acquisition~~Company ~~was~~follows ~~accounted~~Financial ~~for~~Accounting Standards Board (FASB”) Accounting Standards codification “ASC”) Topic 280, Segment Reporting, as anamended by ~~asset~~Accounting ~~acquisition~~Standards ~~because~~Update (“ASU”) No.2023-07. Segment Reporting Topic 280: Improvements to Reportable Segment Disclosures, the ~~acquisition~~Company ~~was~~continually ~~related~~monitors the reportable segments for changes in fact and circumstances to determine whether changes in the ~~pharmaceutical~~identification or ~~distribution~~aggregation ~~license,~~of aoperating ~~single~~segments ~~asset~~are necessary. ~~The~~An ~~acquisition~~operating segment is a component of the Company that engages in business activities ~~was~~from ~~closed~~which onit ~~November~~may 21earn revenues and incur expenses, ~~2024.~~and ~~The~~is ~~following~~identified ~~table~~on ~~summarizes~~the basis of the ~~fair~~internal ~~value~~financial ofreports that are provided to and regularly reviewed by the ~~identifiable~~Company’s ~~assets:~~chief operating decision maker in order to allocate resources and assess performance of the segment.

	Amount
Cash	$	552,730
Payable to Hupan Pharmaceutical		(276,365	)
Net consideration	$	276,365
Assets acquired and liabilities assumed:
Cash acquired		9
Intangible assets – license of pharmaceutical distribution		418,867
Other payables		(37,794	)
Deferred tax liabilities		(104,717	)
Total net assets acquired	$	276,365

The Company’s chief operating decision maker (“CODM”) is Mr. Henry Liu, the CEO. The CODM regularly reviews financial information, including segment revenue, gross profit, significant segment expenses (selling expenses and general and administrative expenses), segment net income (loss), and segment assets to evaluate segment performance and allocate resources accordingly.

Based on internal management reporting and assessment, the Company concludes that it has two reporting segments listed as below for the three months ended September 30, 2025 and one reporting segment for the three months ended September 30, 2024. The Company ~~recorded~~and ~~impairment~~its subsidiaries are located either in the U.S. or China. The Company is primarily engaged in the business of ~~intangible~~providing ~~assets~~customized cross-border freight solutions in the U.S. and distribution of ~~nil~~pharmaceutical products in China. Segment net income (loss) excludes general corporate administrative expenses and ~~nil~~selling expenses including corporate functional costs relating to professional expenses, ~~respectively~~ payroll expense of management, ~~for~~and interest expenses in connection with convertible debt that are managed centrally at the ~~three~~corporate level and ~~nine~~are ~~months~~excluded ~~ended~~from ~~March~~the ~~31,~~measure ~~2025~~of segment performance reviewed by the CODM.

~~NOTE~~The 22summary ~~— SUBSEQUENT~~of ~~EVENTS~~key information by segments for the three months ended September 30, 2025 was as follows:

The Company evaluated all events and transactions that occurred after March 31, 2025 up through the date the Company issued these condensed consolidated financial statements, and unless disclosed below, there are not any material subsequent events that require disclosure in these condensed consolidated financial statements.

	Cross-border freight solutions (U.S.)			Pharmaceutical distribution (China)		Holding			Total for year ended September 30, 2025
Revenue from external customers	$	4,181,714			1,338,015		-			5,519,729
Revenue from related parties	$	580,160			-		-			580,160
Cost of revenue	$	4,200,352			790,770		-			4,991,122
Gross profit	$	561,522			547,245		-			1,108,767
Selling expense	$	-			170,548		18,863			189,411
General and administrative expense	$	1,174,196			157,815		775,644			2,107,655
Depreciation & amortization	$	39,966			10,151		21,819			71,936
Income tax provision (credit)	$	-			41,333		(5,343	)		35,990
Long-lived assets	$	2,796,757			432,186		411,756			3,640,699
Segment assets	$	6,532,241			3,284,854		8,818,094			18,635,189
Segment profit (loss)	$	(655,618	)	$	111,325	$	(812,923	)	$	(1,357,216	)

~~Subsequent closing of the first tranche of the Notes~~F-43

OnLAKESIDE ~~April~~HOLDING ~~22, 2025, the subsequent~~LIMITED ~~closing~~NOTES ofTO ~~the~~CONDENSED ~~first~~CONSOLIDATED ~~tranche~~FINANCIAL (the “Subsequent Closing”) was consummated, pursuant to which the Company issued to the Investor a Note in a principal amount of $500,000 and certain Warrants to purchase 202,082 shares of common stock at an initial exercise price of $1.1929 per share, subject to adjustments in the Warrants. The Note issued in the Subsequent Closing is convertible into Common Stock at an initial conversion price of $1.1929, subject to certain adjustments (the “Conversion Price”), provided that the Conversion Price shall not be reduced below $0.2 (the “Floor Price”). The Note does not bear any interest absent an Event of Default (as defined in the Note) and matures on July 22, 2026.STATEMENTS

40(UNAUDITED)

~~Item~~NOTE 2.20 — COMMITMENTS ~~Management’s~~AND ~~Discussion and Analysis of Financial Condition and Results of Operations~~CONTINGENCIES

~~You~~Contractual should read the following discussion and analysis of our financial condition and results of operations in conjunction with our consolidated financial statements and related notes included in Part I, Item 1 of this Quarterly Report. This discussion and other parts of this report contain forward-looking statements that involve risks and uncertainties, such as statements of our plans, objectives, expectations and intentions. Our actual results could differ materially from those discussed in these forward-looking statements. Commitments

~~Overview~~As of September 30, 2025, the Company’s contractual obligations consist of the following:

We are a U.S.-based integrated cross-border supply chain solution provider with a strategic focus on the Asian market including China and South Korea. We primarily provide customized cross-border ocean freight solutions and airfreight solutions in the U.S. that specifically cater to our customers’ requirements and needs in transporting goods into the U.S. We offer a wide variety of integrated services under our cross-border ocean freight solutions and cross-border airfreight solutions, including (i) cross-border freight consolidation and forwarding services, (ii) customs clearance services, (iii) warehousing and distribution services and (iv) U.S. domestic ground transportation services.

Contractual Obligations	Total		Less than 1 year		1 – 3 years		3 – 5 years		More than 5 years
Operating lease obligations	$	3,363,435	$	1,745,988		1,179,649		437,798		—
Finance lease obligations		118,888		50,854		44,573		23,461		—
Vehicle loans		155,470		50,096		72,759		32,615		—
Equipment loans		26,538		22,919		3,619		—		—
Other loans		2,473,769		2,425,171		48,598		—		—
Convertible debts		175,000		175,000		—		—		—
Loan payable to a related party		124,176		-		124,176		—		—
Total	$	6,437,276	$	4,470,028		1,473,374		493,874		—

Founded in Chicago, Illinois in 2018, we are an Asian American-owned business rooted in the U.S. with in-depth understanding of both the U.S. and Asian international trading and logistics service markets. Our customers are typically Asia- and U.S.-based logistics service companies serving large e-commerce platforms, social commerce platforms and manufacturers to sell and transport consumer and industrial goods made in Asia into the U.S. Since inception and as of March 31, 2025, we had served over 400 customers to fulfill over 51,500 cross-border supply chain solution orders.Contingencies

WeThe ~~have~~Company ~~established~~may anbe ~~extensive~~involved ~~collaboration~~in ~~network~~certain oflegal ~~service providers~~proceedings, ~~including~~claims ~~global~~and ~~freight~~disputes ~~carriers~~arising ~~for~~from ~~our~~the ~~cross-border~~commercial ~~freight~~operations, ~~consolidation~~which, ~~and~~in ~~forwarding services~~general, asare ~~well~~subject asto ~~domestic~~uncertainties and ~~ground~~in ~~transportation~~which ~~carriers~~the ~~for~~outcomes ~~our~~are Unot predictable.~~S. domestic~~ ~~transportation~~The ~~services.~~Company ~~Since~~determines ~~inception~~whether ~~and~~an ~~as of~~estimated ~~March~~loss ~~31,~~from ~~2025,~~a wecontingency ~~had~~should ~~collaborated~~be ~~with~~accrued by ~~almost~~assessing ~~all~~whether ~~major~~a ~~global~~loss ~~ocean~~is deemed probable and ~~air~~can ~~carriers~~be toreasonably ~~forward~~estimated. ~~34,900~~Although ~~TEU~~the ofCompany ~~container~~can ~~loads~~give ~~and~~no assurances about the 63resolution of pending claims,~~300~~ ~~tons~~litigation ofor ~~air~~other ~~cargo.~~disputes Asand ofthe ~~March~~effect ~~31,~~such ~~2025~~outcomes may have on the Company, wethe ~~had~~Company ~~also~~believes that ~~cooperated~~any ~~with~~ultimate ~~over~~liability ~~200~~resulting ~~domestic~~from ~~ground~~the ~~transportation~~outcome ~~carriers~~of such proceedings, ~~including almost~~to ~~all~~the ~~major~~extent ~~U.S. domestic~~not ~~ground~~otherwise ~~transportation~~provided ~~carriers~~or covered by insurance, will onnot have a ~~long-term,~~material ~~short-term~~adverse effect on the Company’s unaudited consolidated financial position or ~~order~~results ~~basis,~~of operations or liquidity as ~~the~~of ~~case~~September ~~may~~30, be2025.

WeNOTE ~~operate~~21 ~~three massive and hyper-busy regional warehousing and distribution centers in the U.S., in Illinois and Texas. With an aggregate gross feet area of approximately 142,484 square feet and 52~~— ~~docks,~~ASSETS our regional warehousing and distribution centers have an aggregate daily floor load of up to 3,000 cubic meters of freight. In addition to our self-operated regional centers, we maintain close contact with over 150 warehouses and distribution terminals in almost all transportation hubs in the U.S. which we have cooperated in the past to support the warehousing and distributing services of our cross-border freight in case such freight requires storage, fulfilment, transloading, palletizing, packaging or distribution in states other than Illinois and Texas. As of March 31, 2025, we had assisted with the customs clearance, in conjunction with our other service offerings, of cross-border freight of an aggregate assessed value of over $50.0 million.ACQUISITION

~~Leveraging~~Hupan ~~our~~Pharmaceutical ~~strong~~(Hubei) ~~cross-border supply chain service capabilities, extensive service provider network of cross-border freight carriers and U~~Co.~~S. domestic ground transportation carriers~~, ~~massive~~Ltd and hyper-busy regional warehousing and distribution centers as well as deep understanding of the Asian market, we have been able to build up our brand and reputation and have achieved fast growth since our inception. As of March 31, 2025, we had fulfilled over 51,500 cross-border supply chain solution orders for freight of an aggregate assessed value of $1.0 billion, delivered to thousands of business and residential addresses in approximately 48 U.S. states.acquisition

~~During~~On ~~the~~November ~~nine~~5, ~~months~~2024, ~~ended~~the ~~March~~Company ~~31,~~entered ~~2025,~~into wean ~~had~~equity atransfer ~~new~~agreement ~~business~~(the ~~segment~~“Equity ~~through~~Transfer ~~acquired~~Agreement”) ~~100%~~with ~~equity~~Hubei ~~interest~~Haoyaoshi ofZhenghe ~~Hupan~~Pharmacy Chain ~~Pharmaceutical~~Co., aLtd ~~comprehensive~~and ~~pharmaceutical distribution~~Hubei ~~and~~Huayao ~~supply~~Pharmaceutical ~~chain~~Co., ~~service~~Ltd ~~provider~~to ~~headquartered~~acquire in100% ~~Wuhan,~~of ~~China~~the ~~with~~equity ~~verticals~~interests in ~~brand~~Hupan ~~promotion~~Pharmaceutical ~~and~~(Hubei) ~~healthcare technology support~~Co., Ltd We(“Hupan ~~have~~Pharmaceutical”), ~~partnered~~a ~~with some~~ pharmaceutical ~~manufacturers~~distribution toand supply ~~infusion~~chain ~~fluids,~~service ~~which~~provider ~~are~~headquartered ~~our~~in ~~major~~Wuhan, ~~pharmaceutical products sold and distributed during this quarter~~China.

41Pursuant to the Equity Transfer Agreement, Sichuan Hupan will acquire the entirety of the equity interests that Hubei Haoyaoshi Zhenghe Pharmacy Chain Co., Ltd and Hubei Huayao Pharmaceutical Co., Ltd. hold in Hupan Pharmaceutical, for a total consideration of RMB4.0 million (US$552,730).

~~For~~The ~~the~~acquisition ~~nine~~was ~~months ended~~accounted ~~March~~for ~~31,~~as ~~2025~~an ~~and~~asset ~~2024,~~acquisition ~~our~~because ~~total~~the ~~revenues~~acquisition ~~amounted~~was related to ~~$11.5~~the ~~million~~pharmaceutical ~~and~~distribution ~~$13.5 million~~license, ~~respectively,~~a ~~and~~single ~~our~~asset. ~~gross~~The ~~profit amounted to~~acquisition ~~$1.2~~was ~~million~~closed ~~and~~on ~~$2.7~~November ~~million during the same periods~~21, ~~respectively. For the three months ended March 31, 2025 and~~ 2024~~, our revenues amounted to $3~~.8 ~~million~~The ~~and~~following ~~$4.5~~table ~~million,~~summarizes ~~respectively,~~the ~~and~~fair ~~our~~value ~~gross~~of ~~profit amounted to negative $0.7 million and $1.0 million during~~ the ~~same~~identifiable ~~periods, respectively.~~assets:

Key Factors Affecting Our Results of Operations

	Amount

Total consideration in cash	$	552,730

Assets acquired and liabilities assumed:
Cash acquired		9
Original paid in capital paid to Hupan Pharmaceutical		276,365
Intangible assets – license of pharmaceutical distribution		418,867
Other payables		(37,794	)
Deferred tax liabilities		(104,717	)
Total assets acquired	$	552,730

WeThe ~~believe~~Company ~~the~~recorded ~~most significant~~impairment ~~factors~~of ~~that~~intangible ~~affect~~assets ~~our~~of ~~business~~nil ~~and~~for ~~results~~the ofthree ~~operations~~months ~~include~~ended ~~the~~September ~~following:~~30, 2025.

~~Our Ability to Expand Our Customer Base~~F-44

~~Our~~LAKESIDE ~~results~~HOLDING ~~of operations~~LIMITED ~~are~~NOTES ~~dependent~~TO ~~upon~~CONDENSED ~~our~~CONSOLIDATED ~~ability~~FINANCIAL to expand and maintain our customer base. Since inception and as of March 31, 2025, we had served over 400 customers to fulfill over 51,500 cross-border supply chain solution orders. We will continue to expand our customer base to achieve a sustainable business growth. We aim to attract new customers and maintain our existing customers. We plan to improve the quality and expand the variety of our services to obtain more customers.STATEMENTS

~~Our Ability to Control Costs~~(UNAUDITED)

~~Our~~NOTE ~~results~~22 of operations are affected by our ability to control costs including transportation and delivery costs, warehouse service charges, custom declaration and terminal charges, freight arrangement charges and other overhead cost allocation, which may be subject to factors, including, among other things, fluctuations in wage rates, fuel prices, toll fees, and leasing costs. Effective cost-control measures have a direct impact on our financial condition and results of operations. For example, our cross-border freight carrier and U.S.— ~~domestic~~SUBSEQUENT ground transportation carrier services providers use large quantities of fuel to operate vehicles, and therefore, hence the higher fuel cost incurred by them may causes our higher fee rates cost charged on us by such the service providers. The availability and price of fuel and third-party transportation capacity are subject to political, economic, and market factors that are beyond our control. We also incur a significant amount of costs in relation to transportation and labor. Any unexpected increase in these costs, which is subject to factors beyond our control, could adversely impact our profitability. We have adopted, and expect to adopt, additional cost control measures. However, the measures we have adopted or will adopt in the future may not be as effective as expected. If we are not able to effectively control our costs and adjust the level of fee rates based on operating costs and market conditions, our profitability and cash flow may be adversely affected.EVENTS

~~Our~~The ~~Ability~~Company toevaluated ~~Provide~~all events ~~High-quality~~and ~~Services~~transactions that occurred after September 30, 2025 up through the date the unaudited condensed consolidated financial statements were issued, and unless disclosed below, there are not any material subsequent events that require disclosure in these unaudited condensed consolidated financial statements.

~~Our results of operations~~On ~~depend~~October ~~on our ability to maintain and further enhance our service quality. Together with our network of service providers~~16, we provide integrated cross-border ocean and air freight supply chain solutions and services to our customers. If we or our service providers are unable to provide express delivery services in a timely2025, ~~reliable,~~the ~~safe~~Company’s ~~and~~Board ~~secure~~of ~~manner,~~Directors ~~our~~unanimously ~~reputation~~approved ~~and~~the ~~customer~~following ~~loyalty could be negatively affected. In additional~~matters, ifeach ~~our~~of ~~customer~~which ~~service~~is ~~personnel~~subject ~~fail~~ to ~~satisfy customer needs or respond effectively to customer~~approval ~~complaints,~~by wethe ~~may~~Company’s ~~lose~~stockholders ~~potential~~at ~~or existing customers and experience~~ a ~~decrease~~Special inMeeting ~~customer~~to ~~orders,~~be ~~which~~held ~~could~~after ~~have~~the areporting ~~material~~date ~~adverse effect~~of onthese ~~our business,~~ financial ~~condition and results of operations.~~statements:

~~Strategic~~Amendments to ~~Acquisitions~~the Articles of Incorporation and ~~Investments~~Bylaws

~~Our~~i. ~~results~~To ofincrease ~~operations also depend on our ability to pursue strategic acquisitions and investments~~ in ~~expanding~~Authorized ~~our~~Common ~~global~~Stock ~~footprints,~~from ~~diversifying our service offerings~~200, ~~and advancing our technologies. We may selectively pursue mergers~~000,000 ~~acquisitions~~shares, ~~investments,~~par ~~joint~~value ~~ventures and partnerships that we believe are strategic and complementary to our operations and technology~~$0.0001 ~~However~~per share, ~~we cannot assure you that we will make prudent decisions at all times. Our ability~~ to ~~successfully execute or effectively operate~~2, ~~integrate~~000,000,000 ~~leverage and grow these investments or strategic partnerships could impact our results of operations and financial conditions.~~shares;

42ii. To authorize of Preferred Stock: Creation of 1,000,000,000 shares of “blank check” preferred stock, par value $0.0001 per share, with rights and preferences to be determined by the Board of Directors;

~~In response to governmental directives and recommended safety measures, we have implemented personal safety measures at all of our facilities~~iii. ~~However,~~To ~~these~~effect ~~measures may not be sufficient to mitigate the risk of infection by COVID-19. If~~ a ~~significant~~name ~~number~~change of ~~our~~the ~~employees, or third parties performing key functions, including our chief executive officer and members of our board of directors, become ill, our business may be further adversely impacted.~~Company;

The impact of COVID-19 pandemic on us in the future will depend on future developments which are highly unpredictable and beyond our control, such as the frequency, duration and severity of the resurgence of COVID-19 and the emergence of new variants, as well as the measures that may be taken by governments around the world in response to these developments, the impact of the pandemic on the global economy and the measures taken by governments to stimulate the general economyiv. ~~Therefore,~~To wereduce ~~cannot guarantee that~~ the ~~pandemic~~voting ~~will~~thresholds ~~not~~required ~~continue~~for tostockholder ~~have an adverse effect on our business and results of operations in the future, which may be material.~~proposals

Wev. ~~will~~To ~~continue~~reduce tostockholder ~~actively monitor~~meeting ~~the~~quorum ~~situation~~requirement and ~~may~~informal ~~take~~action ~~further~~requirement ~~actions~~under ~~that~~Company’s ~~alter~~Bylaws ~~our business operations as may be required by federal, state, local or foreign authorities, or that we determine are in~~ (the ~~best interests of our employees, customers, service providers and stockholders.~~“Bylaws”)

~~Uncertainty and Impacts on the Recent U.S.~~2025 ~~Tarriff~~Equity ~~Policies~~Incentive ~~and Regulations~~Plan

~~Our results of operations also depend on our ability~~ Subsequent to ~~respond with~~ the ~~recent~~balance ~~tariff~~sheet ~~and~~date, ~~other restrictions placed on imports. The U.S. government recently increased U.S. special tariffs and proposed amendments to~~ the deBoard ~~minimis~~approved ~~rule significantly impacts companies operating in~~ the ~~cross-border~~Company’s ~~freight~~2025 ~~forwarding industry. The heightened tariffs—particularly those targeting Chinese~~Long-~~origin~~Term ~~goods~~Incentive ~~and extending globally—raise the cost of imported goods~~Plan, ~~prompting~~subject ~~clients~~ to ~~reduce~~stockholder ~~shipment volumes, shift sourcing strategies, or consolidate cargo to offset rising expenses~~approval. ~~On March 4, 2025, the U.S. imposed 25% tariffs on~~The ~~imports~~plan ~~from~~authorizes ~~Mexico~~up ~~and Canada and enacted an extra 10% tariff on Chinese imports, therefore doubling the previously levied tariff from February~~ to ~~an additional 20% on existing tariffs. On March 6~~5, ~~2025~~000,000 ~~President~~shares ~~Trump~~for ~~announced that the U.S. will pause the 25% tariffs on U.S. imports from Mexico and Canada that are covered under a 2020 United States~~equity-~~Mexico-Canada~~based ~~Agreement~~awards, orincluding ~~USMCA,~~stock ~~trade agreement until April 2~~options, ~~2025.~~stock ~~Goods~~appreciation ~~that are not covered by the agreement remain subject to tariffs. On April 2~~rights, ~~2025,~~restricted ~~President Trump announced~~shares, ~~new~~and ~~tariffs~~restricted onshare ~~many U.S. trading partners~~units, ~~including~~and ais ~~34%~~intended ~~tax~~to onsupport ~~imports from China, a 20% tax on products from~~ the ~~E.U.,~~attraction and aretention ~~baseline 10% tax on imports from many countries. These tariffs were in addition to the previous announcements~~ of ~~25% taxes on auto imports~~employees, ~~tariffs implemented against China~~directors, ~~Canada~~ and ~~Mexico, and trade penalties on steel and aluminum~~consultants. ~~However,~~The ~~the 20% charge on imports from China~~plan ~~was~~will inremain ~~addition~~effective tothrough ~~the~~December ~~34% import tax announced. On April 9~~31, ~~2025~~2035, ~~President~~if ~~Trump~~approved. ~~has~~The ~~increased~~approval ~~the tariffs on Chinese imports to a total tariff rate~~ of ~~145%.~~the ~~This~~plan ~~included~~has ano ~~20%~~impact ~~"fentanyl tariff" and a 125% "reciprocal tariff" aimed at addressing trade imbalances and other concerns. On April 10, 2025, China raised tariff~~ on ~~all U.S. goods to 84% and further increased to 125% on April 12, 2025. Meanwhile, amendments to~~ the definancial ~~minimis~~statements ~~rule,~~as ~~which previously allowed low-value shipments (under $800) to enter the U.S. duty-free, now impose tighter restrictions, including exclusion~~ of ~~certain countries like China and increased scrutiny or disqualification of bulk~~ ~~shipments. These changes increase customs complexity, slow clearance times, and reduce~~ the ~~volume~~reporting ~~of low-value parcels traditionally handled by freight forwarders~~date.

~~In May 2025, the US and China have agreed a truce to lower import taxes on goods being traded between the two countries for 90 days. Under~~Treasury ~~the~~Reserve terms of the agreement, both countries committed to pausing the imposition of new tariffs and partially rolling back existing duties on select goods, primarily in the technology, agricultural, and consumer product sectors. Although the agreement marks a major de-escalation of the trade war between the two countries, there is still a high degree of uncertainty surrounding U.S. tariff policy, how it will be implemented, and how other countries will react to it. It also remains uncertain whether increased tariffs and trade tensions will create further disruptions and uncertainties to the international trade and lead to a downturn to the global economy.Strategy

~~Moreover, increasing trade~~The ~~protectionism~~strategy ~~may~~would ~~cause~~allow anthe ~~increase~~Company into ~~(i)~~use ~~the~~Bitcoin ~~cost~~and ofEthereum ~~goods~~as ~~exported~~primary ~~from~~treasury ~~regions~~reserve ~~globally~~assets, ~~particularly~~with ~~from~~holdings ~~the~~of ~~Asia-Pacific~~each ~~region,~~cryptocurrency ~~(ii)~~limited ~~the~~to ~~length~~no ofmore ~~time~~than ~~required~~5% toof ~~transport~~its ~~goods~~total ~~and~~market ~~(iii)~~capitalization at the ~~risks~~time ~~associated~~of ~~with exporting goods~~acquisition. ~~Such~~If ~~increases~~approved, ~~may further reduce~~ the ~~quantity~~Board ofwould ~~goods~~be authorized to ~~be shipped~~purchase, ~~shipping time schedules~~hold, ~~voyage~~or ~~costs~~sell Bitcoin and ~~other~~Ethereum ~~associated~~in ~~costs~~its discretion, ~~which~~taking ~~could~~into ~~have~~account anmarket ~~adverse~~conditions ~~impact on~~and ~~our~~the ~~customers~~Company’s liquidity and business, ~~operating~~needs. ~~results~~The ~~and~~Company ~~financial~~may ~~condition~~also ~~and~~raise ~~could~~capital, ~~thereby~~including ~~affect~~through ~~their~~equity ~~ability~~or toequity-linked ~~make~~offerings, ~~timely payments~~ to usfund ~~and~~such ~~their orders quantity~~acquisitions. The ~~This~~proposal ~~could~~has ~~have~~no aimpact ~~material adverse effect~~ on ~~our~~the ~~business,~~Company’s ~~operating~~financial ~~results,~~statements ~~cash~~as ~~flows~~of ~~and~~the ~~financial condition~~reporting date.

~~We will continue to actively~~Capital ~~monitor~~Raising ~~the situation and actively consider strategic adaptation to maintain service levels and profitability.~~Authorization

43The Board approves the Company to issue 20% or more of its outstanding Common Stock (including convertible or exercisable securities) in one or more non-public transactions at a price below the Nasdaq “Minimum Price,” but not less than 80% of the Minimum Price, as defined under Nasdaq Rule 5635(d). This authorization is intended to provide the Company with flexibility to raise capital outside of public offerings. The proposal has no impact on the financial statements as of the reporting date.

~~Key Components of Results of Operations~~F-45

~~Revenues~~Item 2. ~~We generate~~ ~~revenues~~Management’s ~~primarily~~Discussion ~~by providing customized cross-border ocean freight solutions~~ and ~~airfreight~~Analysis ~~solutions~~of toFinancial ~~customers~~Condition ~~that specifically cater to their requirements~~ and ~~needs~~Results ~~in transporting goods into the U.S. Under the service agreements with our customers, we offer a wide variety~~ of integrated services under our cross-border ocean freight solutions and cross-border airfreight solutions, including (i) cross-border freight consolidation and forwarding services, (ii) customs clearance services, (iii) warehousing and distribution services and (iv) UOperations.~~S. domestic ground transportation services.~~

~~From~~The ~~December~~following ~~2024,~~discussion and weanalysis ~~started~~of toour ~~generate~~financial ~~revenues~~condition ~~from~~and ~~the~~results ~~distribution~~ of ~~pharmaceutical~~operations should be read in conjunction with our consolidated financial statements and ~~medical~~the ~~products~~related notes included elsewhere in this Report. WeIn ~~order~~addition ~~from~~to ~~the~~historical ~~manufacturer~~consolidated financial information, ~~receive~~the ~~and~~following discussion ~~carry~~contains ~~the~~forward-looking ~~products~~statements atthat areflect ~~designated~~our ~~warehouse~~plans, estimates, and beliefs. Our actual results could differ materially ~~deliver~~from those discussed in the ~~products~~forward-looking statements. All amounts included herein with respect to the ~~customers’~~three ~~warehouses~~months orended ~~designated~~September 30, ~~locations~~2025 and 2024 are derived from our audited consolidated financial statements included elsewhere in this Report. Our financial statements have been prepared in accordance with the U.S. GAAP.

Cost of Revenues. Our cost of revenues from customized cross-border ocean and air freight solutions mainly comprises transportation and delivery costs, warehouse service charges, custom declaration and terminal charges, freight arrangement charges and other overhead cost allocation which includes operating and financing lease-related costs, depreciation expenses of property and equipment and other miscellaneous expenses.Overview

~~Our~~We ~~cost~~are ofa ~~revenues~~U.S.-based ~~from~~integrated cross-border supply chain solution provider with a strategic focus on the ~~distribution~~Asian ofmarket ~~pharmaceutical~~including China and ~~medical~~South Korea. We primarily ~~products~~provide ~~comprises~~customized ~~cost~~cross-border ocean freight solutions and airfreight solutions in the U.S. that specifically cater to our customers’ requirements and needs in transporting goods into the U.S. We offer a wide variety of ~~pharmaceutical~~integrated ~~products~~services ~~from~~under ~~manufacturers~~our cross-border ocean freight solutions and cross-border airfreight solutions, including (i) cross-border freight ~~arrangement~~consolidation ~~charges~~and forwarding services, (ii) customs clearance services, (iii) warehousing and ~~other~~distribution ~~overhead~~services ~~costs~~and (iv) U.S. domestic ground transportation services.

~~Selling~~Founded ~~Expenses~~in Chicago, Illinois in 2018, we are an Asian American-owned business rooted in the U.S. ~~Our selling~~with ~~expenses~~in-depth ~~primarily~~understanding ~~include~~of ~~salaries~~both ~~expense~~the U.S. and ~~traveling~~Asian ~~expense~~international oftrading ~~sales~~and ~~team~~logistics ~~engaged~~service markets. inOur ~~developing~~customers ~~potential~~are ~~customers~~typically Asia- and U.S.-based logistics service companies serving large e-commerce platforms, social commerce ~~maintaining~~platforms ~~customer~~and ~~relationships~~manufacturers to sell and ~~transportation~~transport ~~cost~~consumer ~~for~~and ~~selling~~industrial ~~pharmaceutical~~goods ~~products~~made in Asia into the U.S. As of September 30, 2025, we had served over 400 customers to fulfill over 58,500 cross-border supply chain solution orders.

~~General~~We have established an extensive collaboration network of service providers, including global freight carriers for our cross-border freight consolidation and ~~Administrative~~forwarding services as well as domestic ground transportation ~~Expenses~~carriers for our U.S. ~~Our~~domestic ~~general~~transportation ~~and~~services. ~~administrative~~As ~~expenses~~of ~~primarily~~September ~~include~~30, ~~salaries~~2025, we had collaborated with almost all major global ocean and ~~staff~~air ~~benefits~~carriers to forward 37,300 ~~repair~~TEU of container loads and ~~maintenance~~75,100 ~~expenses~~tons of air cargo. As of September 30, 2025, we had also cooperated ~~depreciation~~with onover ~~property~~200 ~~and~~domestic ~~equipment,~~ground ~~lease~~transportation ~~expenses~~carriers, ~~travelling~~including ~~and~~almost ~~entertainment~~all ~~expenses~~major U.S. domestic ground transportation carriers, ~~bank~~on a ~~charges~~long-term, ~~legal~~short-term ~~and~~or ~~professional~~order ~~fees~~basis, ~~insurance~~ ~~expenses~~as ~~and~~the ~~other~~case ~~office~~may ~~expenses~~be.

~~Other~~We ~~Income~~operate three massive and hyper-busy regional warehousing and distribution centers in the U.S., in Illinois and Texas. With an aggregate gross feet area of approximately 142,484 square feet and 52 ~~Our~~docks, our regional warehousing and distribution centers have an aggregate daily floor load of up to 3,000 cubic meters of freight. In addition to our self-operated regional centers, we maintain close contact with over 150 warehouses and distribution terminals in almost all transportation hubs in the U.S. which we have cooperated in the past to support the warehousing and distributing services of our cross-border freight in case such freight requires storage, fulfilment, transloading, palletizing, packaging or distribution in states other ~~income~~than ~~primarily~~Illinois and ~~consists~~Texas. As of ~~rental~~September ~~income~~30, if2025, ~~any~~we had assisted with the customs clearance, in conjunction with our other service offerings, of cross-border freight of an aggregate assessed value of over $63.0 million.

~~Interest~~Leveraging ~~Expenses~~our strong cross-border supply chain service capabilities, extensive service provider network of cross-border freight carriers and U.S. ~~Our~~domestic ground transportation carriers, massive and ~~interest~~hyper-busy ~~expenses~~regional ~~primarily~~warehousing ~~consist~~and distribution centers as well as deep understanding of the ~~interest~~Asian ~~expenses~~market, ~~incurred~~we ~~for~~have ~~finance~~been ~~leases~~able to build up our brand and reputation and have achieved fast growth since our inception. As of September 30, ~~convertible~~2025, ~~notes~~we had fulfilled over 58,500 cross-border ~~equipment~~supply ~~loans~~chain solution orders for freight of an aggregate assessed value of $1.0 billion, ~~vehicle loans~~delivered ~~and~~to ~~other~~thousands ~~loans~~of business and ~~interest~~residential ~~for~~addresses ~~late~~in ~~credit~~approximately ~~card~~48 ~~payment~~U.S. states.

~~Income~~For ~~Tax~~the ~~Expenses. Our~~three months ended ~~income~~30, ~~tax~~2025 ~~expenses~~and ~~consist~~2024, ~~primarily~~our ofrevenues Uamounted to $6.~~S. federal,~~1 ~~state~~million ~~income~~and ~~taxes~~$4.1 million, ~~replacement~~respectively, ~~tax~~and inour ~~the~~gross ~~state~~profit ofamounted ~~Illinois~~to $1.1 million and ~~PRC~~$0.5 ~~enterprise income~~million ~~tax~~during the same periods, respectively.

441

Key Factors Affecting Our Results of Operations

~~The~~We ~~following~~believe ~~table summarizes~~ the ~~results~~most ofsignificant factors ~~condensed~~that ~~consolidated~~affect ~~statements~~our ofbusiness ~~operations~~ and ~~comprehensive~~results ~~income~~of ~~(unaudited)~~operations ~~for~~include the ~~three and nine months ended March 31, 2025 and 2024 in U.S. dollars.~~following:

	Nine Months Ended March 31,						Three Months Ended March 31,
	2025			2024			2025			2024
Revenue from cross-border freight solutions – third party	$	9,559,567		$	12,457,709		$	2,857,504		$	3,817,726
Revenue from cross-border freight solutions – related parties		1,205,354			1,067,633			448,360			643,037
Revenue from distribution of pharmaceutical products – third parties		715,362			—			497,276			—
Total revenue		11,480,283			13,525,342			3,803,140			4,460,763
Cost of revenue from cross-border freight solutions – third party		8,756,778			9,367,882			2,602,784			3,038,231
Cost of revenue from cross-border freight solutions – related party		1,286,380			1,469,845			365,330			446,968
Cost of revenue from pharmaceutical products – third parties		240,966			—			119,175			—
Total cost of revenue		10,284,124			10,837,727			3,087,289			3,485,199
Gross profit		1,196,159			2,687,615			715,851			975,564
Operating expenses:
Selling expenses		158,118			—			103,630			—
General and administrative expenses		5,429,398			2,803,311			1,680,339			962,481
Loss from deconsolidation of a subsidiary		—			73,151			—			—
Provision (reversal) of allowance for expected credit loss		8,021			22,198			6,065			(27,393	)
Total operating expenses		5,595,537			2,898,660			1,790,034			935,088
(Loss) income from operations		(4,399,378	)		(211,045	)		(1,074,183	)		40,476
Other income
Other income, net		310,796			190,887			109,255			102,438
Interest expense		(156,266	)		(79,400	)		(87,274	)		(25,536	)
Total other income		154,530			111,487			21,981			76,902
(Loss) income before income taxes		(4,244,848	)		(99,558	)		(1,052,202	)		117,378
Income tax expense		108,175			130,735			18,594			104,610
Net (loss) income		(4,353,023	)		(230,293	)		(1,070,796	)		12,768
Less: net loss attributable to non-controlling interest		—			(3,025	)		—			—
Net (loss) income attributable to the Company		(4,353,023	)		(227,268	)		(1,070,796	)		12,768
Other comprehensive (loss) income:
Foreign currency translation (loss) income		(8,603	)		3,122			3,583			—
Comprehensive (loss) income		(4,361,626	)		(227,171	)		(1,067,213	)		12,768
Less: comprehensive loss attributable to non-controlling interest		—			(3,119	)		—			—
Comprehensive (loss) income attributable to the Company	$	(4,361,626	)	$	(224,052	)	$	(1,067,213	)	$	12,768
Loss per share – basic and diluted	$	(0.58	)	$	(0.04	)	$	(0.14	)	$	—
Weighted Average Shares Outstanding – basic and diluted		7,500,000			6,000,000			7,500,000			6,000,000

Our Ability to Expand Our Customer Base

45Our results of operations are dependent upon our ability to expand and maintain our customer base. As of September 30, 2025, we had served over 400 customers to fulfill over 58,500 cross-border supply chain solution orders. We will continue to expand our customer base to achieve a sustainable business growth. We aim to attract new customers and maintain our existing customers. We plan to improve the quality and expand the variety of our services to obtain more customers.

~~Three~~During ~~Months~~fiscal ~~Ended~~year ~~March~~2025, we 31introduced a new revenue stream through the distribution of pharmaceutical and medical products. Under this model, ~~2025~~we ~~Compared~~purchase products directly from manufacturers, store them in designated warehouses, and deliver them to customers’ warehouses or other specified locations. While this business expansion creates opportunities to reach new customers in the ~~Three~~healthcare ~~Months~~sector. ~~Ended~~It ~~March~~also 31exposes us to additional risks compared with our traditional cross-border logistics services. These risks include heightened regulatory and compliance requirements for the handling and distribution of medical products, ~~2024~~increased working capital exposure from holding inventory, and greater operational complexity in maintaining product quality and safety. Successfully expanding our customer base in this new segment will depend on our ability to manage these risks effectively while maintaining high service standards and compliance with applicable regulations.

~~The~~Our ~~following~~Ability ~~table summarizes our consolidated results of operations and percentages of certain items in relation~~ to ~~total~~Control revenues for the three months ended March 31, 2025 and 2024, and provides information regarding the dollar and percentage increase or (decrease) during such periods. The operating results in any historical period are not necessarily indicative of the results that may be expected for any future period.Costs

	For the three months ended March 31,
	2025					2024
Revenues	Amount		% of total Revenues			Amount		% of total Revenues			Amount Increase (Decrease)			Percentage Increase (Decrease)
Revenue from cross-border freight solutions
Cross-border ocean freight solutions	$	1,278,903		33.6	%	$	2,116,106		47.4	%	$	(837,203	)		(39.6	)%
Cross-border airfreight solutions		2,026,961		53.3	%		2,344,657		52.6	%		(317,696	)		(13.5	)%
Subtotal		3,305,864		86.9	%		4,460,763		100.0	%		(1,154,899	)		(25.9	)%
Revenue from distribution of pharmaceutical products		497,276		13.1	%		-		-			497,276			NA
Total revenues		3,803,140		100.0	%		4,460,763		100.0	%		(657,623	)		(14.7	)%
Cost of revenues – cross-border freight solution		2,968,114		78.0	%		3,485,199		78.1	%		(517,085	)		(14.8	)%
Cost of revenues – pharmaceutical products		119,175		3.1	%		-		-			119,175			NA
Total cost of revenues		3,087,289		81.1	%		3,485,199		78.1	%		(397,910	)		(11.4	)%
Gross profit – cross-border freight solution		337,750		10.2	%		975,564		21.9	%		(637,814	)		(65.4	)%
Gross profit – pharmaceutical products		378,101		76.0	%		-		-			378,101			NA
Total gross profit	$	715,851		18.8	%	$	975,564		21.9	%	$	(259,713	)		(26.6	)%

Our results of operations are affected by our ability to control costs including transportation and delivery costs, warehouse service charges, custom declaration and terminal charges, freight arrangement charges and other overhead cost allocation, which may be subject to factors, including, among other things, fluctuations in wage rates, fuel prices, toll fees, and leasing costs. Effective cost-control measures have a direct impact on our financial condition and results of operations. For example, our cross-border freight carrier and U.S. domestic ground transportation carrier services providers use large quantities of fuel to operate vehicles, and therefore, hence the higher fuel cost incurred by them may causes our higher fee rates cost charged on us by such the service providers. The availability and price of fuel and third-party transportation capacity are subject to political, economic, and market factors that are beyond our control. We also incur a significant amount of costs in relation to transportation and labor. Any unexpected increase in these costs, which is subject to factors beyond our control, could adversely impact our profitability. We have adopted, and expect to adopt, additional cost control measures. However, the measures we have adopted or will adopt in the future may not be as effective as expected. If we are not able to effectively control our costs and adjust the level of fee rates based on operating costs and market conditions, our profitability and cash flow may be adversely affected.

~~Revenues~~With the introduction of our new pharmaceutical and medical product distribution business in fiscal year 2025, our cost structure has become more complex. Unlike our traditional cross-border logistics services, which are largely variable in nature, the new business requires us to hold inventory, maintain specialized warehouse conditions, and comply with more stringent product handling standards. These factors may increase fixed operating costs, including storage, insurance, and quality control expenses. Consequently, our ability to control costs in this new business segment will depend not only on fuel and labor trends but also on our efficiency in managing inventory turnover and compliance-related expenses.

~~Our~~We ~~total~~have ~~revenues~~implemented, ~~from cross-border~~and ~~freight~~expect ~~solutions~~to ~~decreased~~continue ~~by $1.2 million~~adopting, oradditional ~~25.9%,~~cost-control ~~from~~measures ~~$4.5~~to ~~million~~mitigate ~~for~~these ~~the~~risks. ~~three~~However, ~~months~~such ~~ended~~measures ~~March~~may ~~31,~~not ~~2024,~~always tobe ~~$3.3~~as ~~million for~~effective ~~the~~as ~~three~~anticipated. ~~months~~If ~~ended~~we ~~March~~are ~~31,~~unable ~~2025.~~to ~~The~~effectively ~~decrease~~control ~~was~~our ~~primarily~~operating ~~driven~~costs byor aadjust ~~significant~~our ~~decline~~pricing in ~~volume~~response weto ~~handled~~changing ~~from~~market conditions, our ~~cross-border airfreight~~profitability ~~solutions~~and cash flows may be adversely affected.

~~Revenues~~Our ~~from~~Ability ~~our cross-border ocean freight solutions decreased by $0.8 million, or 39.6%, from $2.1 million for the three months ended March 31, 2024,~~ to ~~$1.3~~Provide ~~million for the three months ended March 31, 2025. This reduction was primarily due to a decrease in the volume of cross~~High-~~border~~quality ocean freights processed and forwarded, dropping from 1,355 TEU in the three months ended March 31, 2024, to 1,118 TEU for the three months ended March 31, 2025. Additionally, a slowdown in consumer spending and business investments, impacted by the overall economic downturn, reduced the demand for imported goods, leading to lower container volumes. Furthermore, due to a reduction in market volume and increased competition, the service price charged to customers also decreased.Services

~~Revenues~~Our ~~from~~results of operations depend on our ~~cross-border~~ability ~~airfreight~~to ~~solutions~~maintain ~~decreased~~and byfurther ~~$0.3 million~~enhance orour 13service quality.~~5%,~~ ~~from~~Together ~~$2.3~~with ~~million~~our ~~for~~network ~~the~~of ~~three~~service ~~months~~providers, ~~ended~~we ~~March~~provide integrated ~~31,~~cross-border ~~2024,~~ocean toand ~~$2.0~~air ~~million~~freight ~~for~~supply ~~the~~chain ~~three~~solutions ~~months~~and ~~ended~~services ~~March~~to ~~31,~~our ~~2025~~customers. ~~The~~ ~~decrease~~If ~~was~~we ~~primarily~~or ~~due~~our toservice aproviders ~~decrease~~are unable into ~~the~~provide ~~volume~~express ofdelivery ~~cross-border air~~services ~~freight~~in ~~processed~~a timely, ~~from~~reliable, ~~approximately~~safe ~~4,040~~and ~~tons~~secure ~~for the~~manner, ~~three~~our ~~months~~reputation ~~ended~~and ~~March~~customer ~~31,~~loyalty ~~2024,~~could be tonegatively ~~approximately~~affected. 3In additional,~~775~~ ~~tons~~if ~~for~~our ~~the~~customer ~~three~~service ~~months~~personnel ~~ended~~fail ~~March~~to ~~31,~~satisfy ~~2025.~~customer ~~Some~~needs ofor ~~our~~respond ~~customers~~effectively ~~reduced~~to customer ~~their~~complaints, ~~orders~~we ~~due~~may tolose ~~the~~potential ~~uncertainty~~or inexisting ~~trade~~customers ~~policies~~ and ~~higher~~experience ~~tariffs~~a ~~since~~decrease ~~March~~in 4,customer ~~2025~~orders, ~~leading~~which tocould have a ~~decline~~material inadverse effect on our ~~revenue~~business, financial condition and results of operations.

462

~~Starting~~As ~~from~~we ~~December~~expand ~~2024,~~into wepharmaceutical and ~~established~~medical aproduct ~~new~~distribution, ~~revenue~~maintaining ~~stream~~high-quality ~~through the~~service ~~distribution~~standards ofbecomes ~~pharmaceutical~~even ~~products~~more critical. WeThis ~~procured~~new ~~pharmaceuticals—primarily~~business ~~pharmaceutical~~line ~~solutions—directly from~~involves ~~manufacturers~~additional ~~and~~operational ~~supplied~~requirements, ~~them~~such toas ~~distributors~~temperature-controlled storage, ~~hospitals~~specialized handling, and ~~clinics~~compliance with healthcare product regulations. ~~For~~Any ~~the~~lapse ~~three~~in ~~months~~these ~~ended~~areas ~~March~~could ~~31,~~result ~~2025~~in regulatory penalties, ~~our~~product ~~total~~spoilage, ~~revenue from~~or ~~pharmaceutical~~loss ~~product~~of ~~distribution~~customer ~~amounted~~trust. Compared to our ~~$0.5~~existing ~~million.~~logistics Weoperations, ~~did~~the ~~not~~consequences ~~generate~~of ~~any~~service ~~revenue~~failures ~~from~~in this segment incould be more severe, given the ~~same~~sensitive ~~period~~nature of medical products and the ~~prior~~higher ~~year~~expectations of healthcare customers. Ensuring consistent service quality will therefore require enhanced employee training, strengthened supplier oversight, and continuous monitoring of compliance procedures.

WeStrategic ~~anticipate~~Acquisitions ~~further revenue declines in the next quarter due the competitive~~ and uncertain economic environment. In addition to decreasing air freight volumes and new regulations that became effective in May 2025 and aimed at curtailing small-package and low-value shipments from China to the U.S., newly imposed tariffs on Chinese imports introduced in April 2025 are expected to further disrupt cross-border trade. These measures may significantly reduce the volume of goods imported into the U.S. and moving through e-commerce channels due to increased import costs. Despite these headwinds, we remain committed to exploring new customer opportunities while maintaining strong relationships with our existing clients.Investments

~~Revenues~~Our byresults ~~Customer~~of ~~Geographic~~operations also depend on our ability to pursue strategic acquisitions and investments in expanding our global footprints, diversifying our service offerings, and advancing our technologies. We may selectively pursue mergers, acquisitions, investments, joint ventures and partnerships that we believe are strategic and complementary to our operations and technology. However, we cannot assure you that we will make prudent decisions at all times. Our ability to successfully execute or effectively operate, integrate, leverage and grow these investments or strategic partnerships could impact our results of operations and financial conditions.

	For the three months ended March 31,
	2025					2024
Revenues	Amount		% of total Revenues			Amount		% of total Revenues			Amount Increase (Decrease)			Percentage Increase (Decrease)
Revenue from cross-border freight solutions
Asia-based customers	$	2,851,137		75.0	%		3,822,169		85.7	%	$	(971,032	)		(25.4	)%
U.S.-based customers		454,727		12.0	%		638,594		14.3	%		(183,867	)		(28.8	)%
		3,305,864		87.0	%		4,460,763		100.0	%		(1,154,899	)		(25.9	)%
Revenue from distribution of pharmaceuticals
Asia-based customers		497,276		13.0	%		-		-			497,276			N/A
Total revenues	$	3,803,140		100.0	%	$	4,460,763		100.0	%	$	(657,623	)		(14.7	)%

In response to governmental directives and recommended safety measures, we have implemented personal safety measures at all of our facilities. However, these measures may not be sufficient to mitigate the risk of infection by COVID-19. If a significant number of our employees, or third parties performing key functions, including our chief executive officer and members of our board of directors, become ill, our business may be further adversely impacted.

~~Revenues~~The ~~from~~impact ~~cross~~of COVID-~~border~~19 ~~freight~~pandemic on ~~solutions~~us ~~for~~in the ~~Asia-based~~future ~~customers decreased~~will bydepend ~~$1.0~~on ~~million,~~future ordevelopments ~~25.4%~~which are highly unpredictable and beyond our control, ~~from~~such ~~$3.8~~as ~~million~~the ~~for~~frequency, duration and severity of the ~~three~~resurgence ~~months~~of ~~ended~~COVID-19 ~~March~~and ~~31,~~the ~~2024,~~emergence toof ~~$2.8~~new ~~million~~variants, ~~for~~as well as the ~~three~~measures ~~months~~that may be taken by governments ~~ended~~around ~~March~~the 31world in response to these developments, ~~2025.~~the ~~Revenues~~impact ~~from~~of ~~cross-border~~the ~~freight~~pandemic ~~solutions~~on ~~for~~the global economy and the ~~U.S.-based customers~~measures ~~decreased~~taken by ~~$0.1~~governments to ~~million,~~stimulate orthe 28general economy.8% Therefore, ~~from~~ ~~$0.6~~we ~~million~~cannot ~~for~~guarantee that the ~~three~~pandemic ~~months~~will ~~ended~~not ~~March~~continue ~~31,~~to ~~2024~~have toan ~~$0.5~~adverse ~~million~~effect ~~for~~on ~~the~~our business ~~same~~and ~~period~~results of operations in ~~2025~~the future, which may be material.

~~The~~We ~~decrease~~will incontinue ~~revenues~~to ~~from~~actively ~~Asia-based~~monitor ~~customers for~~ the ~~three~~situation ~~months~~and ~~ended~~may ~~March~~take ~~31,~~further ~~2025,~~actions ~~was~~that ~~contributed~~alter byour abusiness ~~decrease~~operations inas ~~shipments~~may ~~volume~~be ~~from~~required ~~Asia-based~~by ~~customers serving~~federal, ~~large~~state, ~~e-commerce~~local ~~platforms~~or foreign ~~due~~authorities, toor ~~the~~that ~~discussion~~we ondetermine ~~the~~are ~~amendments~~in to the debest ~~minimis~~interests ~~rule~~of ~~and~~our ~~the~~employees, ~~imposition~~customers, ofservice ~~higher~~providers ~~tariffs on~~and ~~Chinese goods~~stockholders.

~~The~~Uncertainty ~~decrease~~and inImpacts ~~revenue~~on ~~from~~ the Recent U.S.~~-based customers for the three months ended March 31, 2025, compared to the same period in 2024, was primarily driven by concerns~~ ~~over~~Tarriff aPolicies ~~potential economic downturn~~ and ~~reduced consumer spending power in the U.S., which led to a decrease in shipment volumes.~~Regulations

Our ~~customers~~results ~~for~~of operations also depend on our ability to respond with the ~~distribution~~recent oftariff ~~pharmaceutical~~and ~~products~~other ~~are~~restrictions ~~based~~placed on imports. Since February 2025, trade between inthe U.S. and China has remained under tight restrictions and elevated trade barriers. While some temporary relief measures and exemptions were granted, most U.S. tariffs on Chinese goods remain in place, particularly affecting key sectors such as weagriculture, ~~specifically~~automobiles, industrial ~~target~~materials, ~~the~~and ~~Chinese~~consumer ~~market~~goods. ~~For~~ ~~the~~These ~~three~~trade ~~months~~measures ~~ended~~have ~~March~~significantly ~~31,~~disrupted ~~2025~~U.S.-China commerce, ~~our~~reducing ~~total~~exports ~~revenue~~in ~~from~~certain ~~pharmaceutical~~categories ~~product~~and ~~distribution~~forcing ~~amounted~~companies on both sides to ~~$0.5~~adjust ~~million~~supply chains, pricing, and sourcing strategies. WeDespite ~~did~~some ~~not~~ongoing negotiations, ~~generate~~the ~~any~~overall ~~revenue~~trade ~~from~~environment ~~this~~remains ~~segment~~challenging inand ~~the~~uncertain, ~~same~~with ~~period~~cross-border business continuing to face heightened ofcosts ~~the~~and ~~prior~~operational ~~year~~complexities.

47In May 2025, the US and China agreed to a truce to lower import taxes on goods being traded between the two countries for 90 days. Under the terms of the agreement, both countries committed to pausing the imposition of new tariffs and partially rolling back existing duties on select goods, primarily in the technology, agricultural, and consumer product sectors. Although the agreement marks a major de-escalation of the trade war between the two countries, there is still a high degree of uncertainty surrounding U.S. tariff policy, how it will be implemented, and how other countries will react to it. It also remains uncertain whether increased tariffs and trade tensions will create further disruptions and uncertainties to the international trade and lead to a downturn in the global economy.

~~Cost of Revenues~~3

AAs ~~breakdown~~ of ~~our~~August ~~cost~~29, of2025, the ~~revenues~~United ~~for~~States has permanently eliminated the ~~three~~$800 ~~months~~de ~~ended~~minimis ~~March~~threshold 31that previously allowed low-value shipments to enter the country duty-free. This change applies to all international shipments, ~~2025~~regardless of value, origin, or shipping method. The decision was made to strengthen trade enforcement and ~~2024~~address isconcerns asover ~~follows:~~illicit trade practices. All imports, including those valued under $800, are now subject to applicable duties and taxes. These changes increase the complexity of customs processing, slow clearance times, and reduce the volume of low-value parcels traditionally handled by freight forwarders.

	For the three months ended March 31,				Amount Increase			Percentage Increase
	2025		2024		(Decrease)			(Decrease)
Cost of revenue from cross-border freight solutions
Transportation and delivery costs	$	1,144,508	$	1,691,940	$	(547,432	)		(32.4	)%
Warehouse service charges		667,073		858,489		(191,416	)		(22.3	)%
Custom declaration and terminal charges		438,237		513,180		(74,943	)		(14.6	)%
Freight arrangement charges		102,806		129,580		(26,774	)		(20.7	)%
Overhead cost		615,490		292,010		323,480			110.8	%
Subtotal		2,968,114		3,485,199		(517,085	)		(14.8	)%
Cost of revenue from distribution of pharmaceuticals
Cost of goods sold		119,175		-		119,175			NA
Total cost of revenue	$	3,087,289	$	3,485,199	$	(397,910	)		(11.4	)%

Moreover, increasing trade protectionism may cause an increase in (i) the cost of goods exported from regions globally, particularly from the Asia-Pacific region, (ii) the length of time required to transport goods and (iii) the risks associated with exporting goods. Such increases may further reduce the quantity of goods to be shipped, extend shipping schedules, increase voyage costs, and other associated costs, which could have an adverse impact on our customers’ business, operating results and financial condition and could thereby affect their ability to make timely payments to us and their order quantities. This could have a material adverse effect on our business, operating results, cash flows and financial condition.

~~Our~~We ~~cost~~will ofcontinue ~~revenues~~to ~~from cross-border freight solutions decreased~~actively bymonitor ~~$0.5 million, or 14.8%, from $3.5 million for~~ the ~~three~~situation ~~months~~and ~~ended~~consider ~~March~~strategic ~~31,~~adaptation ~~2024,~~ to ~~$3.0~~maintain ~~million~~service ~~for~~levels ~~the~~and ~~three months ended March 31, 2025~~profitability. ~~The decrease in cost of revenues was mainly due to the combined effects of:~~

~~(i)~~Key aComponents ~~decrease~~of inResults transportation and delivery costs, including trucking, drayage, chassis rental, freight and delivery cost during the three months ended March 31, 2025, which was primarily due to a reduction in delivery service provided to customers. Our transportation and delivery costs decreased more significantly than our revenue decline, due to high inflation in gasoline and labor cost over past year. Additionally, the forwarding service for airfreights has strict timing requirements, which often prevents us from fully utilizing truck capacity of ~~each delivery, often resulting in vehicles operating at partial loads;~~Operations

~~(ii)~~Revenues. We generate arevenues ~~decrease~~primarily inby ~~custom~~providing ~~declaration~~customized cross-border ocean freight solutions and ~~terminal~~airfreight ~~charges,~~solutions ~~consisting~~to ofcustomers ~~customs~~that ~~fees,~~specifically cater ~~handling~~to ~~charges,~~their requirements and ~~entry~~needs in transporting goods into the U.S. Under the service ~~fees~~agreements ~~charged~~with byour ~~ports~~customers, ~~and~~we ~~terminals~~offer a ~~during~~wide ~~the~~variety ~~three~~of ~~months~~integrated ~~ended~~services ~~March~~under ~~31,~~our ~~2025,~~cross-border ~~resulting~~ocean ~~from~~freight asolutions ~~drop~~and incross-border ~~volume~~airfreight ofsolutions, including (i) cross-border freight weconsolidation ~~handled~~and forwarding services, ~~particularly~~(ii) customs ~~airfreight~~clearance services, ~~during~~(iii) warehousing ~~the~~and distribution ~~same~~services ~~period;~~and (iv) U.S. domestic ground transportation services.

	(iii)	a decrease in our warehouse service charges, mainly representing labor costs at our regional warehousing and distribution centers during the three months ended March 31, 2025. This was due to a reduction in staffing costs related to unpacking shipments into smaller packages;
	(iv)	a decrease in freight arrangement charges, mainly representing scheduling and booking fees for cross-border ocean freight during the three months ended March 31, 2025, primarily due to decreased business volumes for cross boarder shipping from the U.S. to China; and

From December 2024, we started to generate revenues from the distribution of pharmaceutical and medical products. We order from the manufacturer, receive and carry the products at a designated warehouse, and deliver the products to the customers’ warehouses or designated locations.

~~(v)~~Cost anof ~~increase~~Revenues. Our cost inof ~~overhead~~revenues ~~costs,~~from ~~mainly~~customized ~~comprising~~cross-border ~~warehouse~~ocean and ~~equipment~~air ~~lease~~freight ~~expenses,~~solutions ~~utilities,~~mainly ~~depreciation~~comprises oftransportation ~~property~~ and ~~equipment,~~delivery ~~and other direct~~ costs ~~during the three months ended March 31~~, ~~2025. The~~ warehouse service ~~and equipment lease expenses increased significantly~~charges, ~~from~~custom ~~$258,219~~declaration ~~for~~and ~~the~~terminal ~~three months ended March 31~~charges, ~~2024,~~freight toarrangement ~~$555,278~~charges ~~for~~and ~~the~~other ~~three~~overhead ~~months~~cost ~~ended~~allocation ~~March~~which ~~31,~~includes operating ~~2025.~~and ~~The~~financing ~~increase was primarily because we had two more warehouse~~ lease-related ~~agreements during the three months ended March 31, 2025, compared to the same period last year. These agreements were negotiated before the significant decline in our revenue. To mitigate~~ costs ~~and improve our gross profit margin~~, wedepreciation ~~plan~~expenses ~~to sublease one~~ of ~~the~~property ~~warehouse~~and atequipment ~~Chicago~~and inother ~~the~~miscellaneous ~~next fiscal quarter~~expenses.

48Our cost of revenues from the distribution of pharmaceutical and medical products comprises cost of pharmaceutical products from manufacturers.

~~Gross~~Selling ~~Profit~~Expenses. Our selling expenses primarily include salaries expense, advertising expenses, software expense, and traveling expense of sales team engaged in developing potential customers and maintaining customer relationships and transportation cost for selling pharmaceutical products.

General and Administrative Expenses. Our ~~overall~~general ~~gross~~and ~~profit~~administrative ~~was~~expenses primarily include salaries and staff benefits, repair and maintenance ~~$0.8~~expenses, ~~for~~depreciation ~~the~~on ~~three~~property ~~months~~and ~~ended~~equipment, ~~March~~amortization 31on intangible assets, ~~2025~~lease expenses warehouses used for administrative purpose and office premises, ~~compared~~travelling toand ~~gross~~entertainment ~~profit~~expenses, ofbank ~~$1.0~~charges, inlegal ~~same~~and ~~period~~professional ~~last~~fees, ~~year~~insurance expenses and other office expenses.

~~Our~~Other ~~gross margin of cross-border freight solution was 10~~Income.~~2% for the~~ Our ~~three~~other ~~months~~income ~~ended March 31, 2025, compared to 21.9% for the three months ended March 31, 2024. The decline in gross margin was~~ primarily ~~attributable~~ toconsists ~~(i) disproportionate decrease in our revenue from the airfreight and ocean freight solution compared to the decrease in our cost~~ of ~~revenue,~~rental ~~such as transportation and delivery cost, warehouse services, custom declaration and terminal charges, and (ii) increased overhead costs allocated, as discussed above~~income.

~~Our~~Interest ~~gross margin of distribution of pharmaceutical was 76~~Expenses.~~0% for the~~ Our ~~three~~interest ~~months~~expenses ~~ended March 31, 2025. This comparatively high margin was~~ primarily ~~due~~consist ~~to favorable purchase discounts offered by our suppliers, who extended these incentives to support the establishment~~ of ~~a long-term partnership as we entered this market as a new customer. Excluding~~ the ~~favorable~~interest ~~purchase~~expenses ~~discounts~~incurred ~~of $171,274, the gross margin~~ for ~~pharmaceutical~~finance ~~distribution~~leases, ~~would~~convertible bedebts, ~~approximately~~equipment ~~42%~~loans, ~~for the current~~vehicle ~~quarter.~~loans Itand isother aloans ~~new~~and ~~business~~interest ~~segment~~ for ~~the~~late ~~current~~credit ~~quarter~~card ~~and thus no gross margin was noted compared to the same period of the prior year~~payment.

~~Selling~~Income Tax Expenses. Our income tax expenses consist primarily of U.S. federal, state income taxes, replacement tax in the state of Illinois and PRC enterprise income tax.

Our selling expenses amounted to $0.1 million for the three months ended March 31, 2025, compared to nil for the same period in 2024. The increase was primarily driven by salaries for our sales team, which were incurred as part of the new pharmaceutical distribution service launched during the last quarter.4

~~General~~Results ~~and~~of ~~Administrative Expenses~~Operations

~~Our~~The ~~general~~following ~~and~~table ~~administrative~~summarizes ~~expenses increased by $0.7 million, or 74.6%, from $1.0 million for~~ the ~~three~~results ~~months~~of ~~ended~~consolidated ~~March~~statements ~~31,~~of ~~2024,~~operations ~~to $1.7 million for the three months ended March 31, 2025. These expenses represented 44.2%~~ and ~~21.6%~~comprehensive ofincome ~~our~~(loss) ~~total revenues~~ for the three months ended ~~March~~September 3130, 2025 ~~and~~ ~~2024, respectively. The increase was primarily attributed to higher salary~~ and ~~employee benefit expenses and professional fees operating~~ as2024 ain ~~listed company~~U.S. ~~Additionally, the launch of our new pharmaceutical distribution segment in the second quarter of the fiscal year contributed to the rise in operating costs~~dollars.

Our salaries and employee benefits expenses increased by $0.2 million, or 22.7%, from $0.7 million for the three months ended March 31, 2024, to $0.9 million for the three months ended March 31, 2025. Our salaries and employee benefits expenses represented 54.5% and 77.6% of our total general and administrative expenses for the three months ended March 31, 2025 and 2024, respectively. The increase was mainly due to the salary expenses associated with the two new subsidiaries to support our operation in new business segment starting from second quarter of the fiscal year in China. For our salaries and employee benefits expenses, (i) our payroll expenses increased by $0.2 million, or 23.5% from $0.6 million for the three months ended March 31, 2024, to $0.8 million for the three months ended March 31, 2025, and (ii) our employee benefit expenses, which mainly consist of 401(k) company contribution, employee defined contribution plan in China, meal allowance and health insurance expenses, increased by $23,150, or 18.9%, from $122,312 for the three months ended March 31, 2024, to $145,462 for the three months ended March 31, 2025, representing 8.7% and 12.7% of our total general and administrative expenses for the three months ended March 31, 2025 and 2024, respectively. The increase was mainly due to rising employee health insurance premiums.

	For the Three Months Ended September 30,
	2025						2024
	Amount			As % of revenue			Amount			As % of revenue			Amount Increase (Decrease)			Percentage Increase (Decrease)

Revenue from cross border freight solutions	$	4,761,874			78.1	%	$	4,081,554			100.0	%	$	680,320			16.7	%
Revenue from distribution of pharmaceutical products		1,338,015			21.9	%		-			-			1,338,015			N/A
Total revenue		6,099,889			100.0	%		4,081,554			100.0	%		2,018,335			49.5	%

Cost of revenue from cross border freight solutions		4,200,352			68.9	%		3,559,015			87.2	%		641,337			18.0	%
Cost of revenue from pharmaceutical products		790,770			13.0	%		-			-			790,770			N/A
Total cost of revenue		4,991,122			81.8	%		3,559,015			87.2	%		1,432,107			40.2	%

Gross profit from cross border freight solutions		561,522			11.8	%		522,539			12.8	%		38,983			7.5	%
Gross profit from pharmaceutical products		547,245			40.9	%		-			-			547,245			N/A
Gross profit		1,108,767			18.2	%		522,539			12.8	%		586,228			112.2	%

Operating expenses
Selling expenses		189,411			3.1	%		-			-			189,411			N/A
General and administrative expenses		2,107,655			34.6	%		1,837,206			45.0	%		270,449			14.7	%
Provision of allowance for expected credit loss		83,325			1.4	%		12,837			0.3	%		70,488			549.1	%
Total operating expenses		2,380,391			39.0	%		1,850,043			45.3	%		530,348			28.7	%
Loss from operations		(1,271,624	)		(20.8	)%		(1,327,504	)		(32.5	)%		55,880			(4.2	)%
Other income (expenses)
Other income, net		146,839			2.4	%		109,788			2.7	%		37,051			33.7	%
Interest expense		(196,441	)		(3.2	)%		(28,110	)		(0.7	)%		(168,331	)		598.8	%
Total other (expenses) income, net		(49,602	)		(0.8	)%		81,678			2.0	%		(131,280	)		(160.7	)%
Loss before income taxes		(1,321,226	)		(21.7	)%		(1,245,826	)		(30.5	)%		(75,400	)		6.1	%
Income taxes expense		35,990			0.6	%		89,581			2.2	%		(53,591	)		(59.8	)%
Net loss	$	(1,357,216	)		(22.2	)%	$	(1,335,407	)		(32.7	)%	$	(21,809	)		1.6	%

Our professional fee increased by $0.2 million, or 884.3%, from $24,063 for the three months ended March 31, 2024, to $235,858 for the three months ended March 31, 2025. Our professional fee represented 14.1% and 2.5% of our total general and administrative expenses for the three months ended March 31, 2025 and 2024, respectively. The increase was primarily due to audit fees, legal fees, consulting expenses, investor-related expenses and financial reporting service fees for the three months ended March 31, 2025. For the three months ended March 31, 2024, most expenses directly related to offering that were not included in professional fees, as they were accounted for as deferred initial public offering assets.

49For the Three Months Ended September 30, 2025 Compared to the Three Months Ended September 30, 2024

~~Other~~The ~~Income~~following table summarizes our consolidated results of operations and percentages of certain items in relation to total revenues for the three months ended September 30, ~~net~~2025 and 2024, and provides information regarding the dollar and percentage increase or (decrease) during such periods. The operating results in any historical period are not necessarily indicative of the results that may be expected for any future period.

Our other income, net, decreased by $6,817, or 6.7%, from $102,438 for the three months ended March 31, 2024, to $109,255 for the three months ended March 31, 2025, remained relatively stable compared to same period in last year.

	For the three months ended September 30,
	2025					2024
Revenues	Amount		% of total Revenues			Amount		% of total Revenues			Amount Increase (Decrease)			Percentage Increase (Decrease)
Revenue from cross-border freight solutions
Cross-border ocean freight solutions	$	1,434,864		23.5	%	$	1,836,591		45.0	%	$	(401,727	)		(21.9	)%
Cross-border airfreight solutions		3,327,010		54.5	%		2,244,963		55.0	%		1,082,047			48.2	%
Subtotal		4,761,874		78.1	%		4,081,554		100.0	%		680,320			16.7	%
Revenue from distribution of pharmaceutical products		1,338,015		21.9	%		-		-			1,338,015			100.0	%
Total revenues		6,099,889		100.0	%		4,081,554		100.0	%		2,018,335			49.5	%

Cost of revenues – cross-border freight solution		4,200,352		68.9	%		3,559,015		87.2	%		641,337			18.0	%
Cost of revenues – pharmaceutical products		790,770		13.0	%		-		-			790,770			100.0	%
Total cost of revenues		4,991,122		81.8	%		3,559,015		87.2	%		1,432,107			40.2	%

Gross profit – cross-border freight solution		561,522		11.8	%		522,539		12.8	%		38,983			7.5	%
Gross profit – pharmaceutical products		547,245		40.9	%		-		-			547,245			100.0	%
Total gross profit	$	1,108,767		18.2	%	$	522,539		12.8	%	$	586,228			112.2	%

~~Interest Expenses~~Revenues

Our ~~interest~~total ~~expenses~~revenues ~~decreased~~from cross-border freight solutions increased by $610.7 million,~~738,~~ or ~~241~~16.87%, from $~~25,536~~ 4.1 million for the three months ended ~~March~~September 3130, 2024, to $~~87,274~~4.8 million for the three months ended ~~March~~September 3130, 2025. ~~Increase~~The inincrease ~~interest expense~~ was mainly due to ~~late~~increase ~~credit card payments and interest expense~~ in ~~connection~~revenue ~~with~~from ~~convertible~~cross-border ~~note~~airfreight ~~for the three months ended March 31, 2025~~solutions.

~~Income~~Revenues ~~(Loss)~~from ~~Before~~our ~~Income~~cross-border ~~Taxes~~ocean freight solutions decreased by $0.4 million, or 21.9%, from $1.8 million for the three months ended September 30, 2024, to $1.4 million for the three months ended September 30, 2025. This reduction was primarily due to a decrease in the volume of cross-border ocean freight processed and forwarded, dropping from 1,430 TEU in the three months ended September 30, 2024, to 1,331 TEU for the three months ended September 30, 2025.

We had a net loss before income taxes of $1.1 million for the three months ended March 31, 2025, compared to a net income before income taxes of $0.1 million for the three months ended March 31, 2024. We were in a loss position before income taxes for the three months ended March 31, 2025, primarily attributable to the net effects of: (i) the decrease in gross profit, (ii) the rise in operating expenses, and (iii) the increase in interest expense for the three months ended March 31, 2025 as mentioned above.6

~~Income~~Revenues ~~Tax~~from ~~Expense~~our cross-border airfreight solutions increased by $1.1 million or 48.2%, from $2.2 million for the three months ended September 30, 2024, to $3.3 million for the three months ended September 30, 2025. Despite our volume of cross-border air freight processed decreased, from approximately 7,273 tons for the three months ended September 30, 2024, to approximately 5,776 tons for the three months ended September 30, 2025, our revenue increased primarily due to we experienced stronger demand of value-added services, such as warehouse repackaging and related handling services, which generates higher revenue per shipment and more than offset the impact of lower freight volumes. revenue. For the three months ended September 30, 2025, revenues generated per tons increased by $267, or 86.6%, to $576 per tons, from $309 per tons for the same period in 2024.

WeStarting ~~had~~from ~~income~~December ~~tax expenses~~2024, ofwe ~~$18,594~~established ~~and~~a ~~$104,610~~new ~~for~~revenue ~~the~~stream ~~three~~through ~~months~~the ~~ended~~distribution ~~March~~of ~~31,~~pharmaceutical ~~2025 and 2024, respectively~~products. AWe ~~current~~procured ~~income tax provision of $26,608 was~~pharmaceuticals—primarily ~~recognized~~pharmaceutical ~~for~~solutions—directly afrom ~~subsidiary~~manufacturers ~~with~~and ~~net~~supplied ~~assessable~~them ~~income~~to ~~while~~distributors, nohospitals, ~~current~~and ~~income~~clinics. ~~tax~~For ~~provision was recognized for subsidiaries in net operating loss for~~ the three months ended ~~March~~September 3130, 2025., Weour ~~recognized~~total arevenue ~~recovery~~from ofpharmaceutical ~~deferred~~product ~~income~~distribution ~~tax~~amounted ofto $~~8,014~~1.3 ~~due~~million. toWe ~~amortization~~did ofnot ~~intangible~~generate any ~~assets,~~revenue ~~resulting~~from inthis asegment ~~net~~in ~~income~~the ~~tax~~same ~~expense~~period of ~~$18,594 for~~ the ~~three~~prior ~~months ended March 31, 2025~~year.

WeRevenues ~~recognized~~by aCustomer current income tax provision of 94,471 for the three months ended March 31, 2024 due to income before income tax of $117,378 for the three months ended March 31, 2024 and we recognized a deferred income tax expense of $10,139 due to temporary differences recognized.Geographic

Net Income (Loss)

	For the three months ended September 30,
	2025					2024
Revenues	Amount		% of total Revenues			Amount		% of total Revenues			Amount Increase (Decrease)			Percentage Increase (Decrease)
Revenue from cross-border freight solutions
Asia-based customers	$	4,016,859		65.9	%	$	2,809,636		68.8	%	$	1,207,223			43.0	%
U.S.-based customers		745,015		12.2	%		1,271,918		31.2	%		(526,903	)		(41.4	)%
		4,761,874		78.1	%		4,081,554		100.0	%		680,320			16.7	%
Revenue from distribution of pharmaceuticals
Asia-based customers		1,338,015		21.9	%		-		-			1,338,015			100.0	%
Total revenues	$	6,099,889		100.0	%	$	4,081,554		100.0	%	$	2,018,335			52.4	%

AsRevenues afrom ~~result~~cross-border freight ofsolutions for the ~~foregoing,~~Asia-based customers increased by we$1.2 ~~had~~million, aor ~~net~~43.0%, ~~loss~~from of$2.8 million for the three months ended September 30, 2024, to $14.10 million ~~and~~for athe ~~net~~three ~~income~~months ofended September 30, 2025. Revenues from cross-border freight solutions for the U.S.-based customers decreased by $120.5 million,~~768~~ or 41.4%, from $1.2 million for the three months ended ~~March~~September 3130, ~~2025~~2024 ~~and~~to ~~2024,~~$0.7 ~~respectively~~million for the same period in 2025.

50The increase in revenues from Asia-based customers for the three months ended September 30, 2025 was primarily driven by strengthened relationships with key clients. The company assigned dedicated teams to manage high-value accounts, which led to an increase in their shipment volumes. In addition, revenue growth was supported by an expansion of value-added logistics services, reflecting higher demand for services such as repackaging, handling, and customized solutions.

~~For~~The decrease in revenue from the ~~Nine~~U.S.-based ~~Months~~customers ~~Ended~~for ~~March~~the 31three months ended September 30, 2025 ~~Compared~~, compared to the ~~Nine~~same ~~Months~~period ~~Ended~~in ~~March~~2024, 31was primarily driven by a decrease in shipment volumes serving e-commerce platforms and concerns over a potential economic downturn and reduced consumer spending power in the U.S., ~~2024~~which led to lower shipment volumes.

The following table summarizes our consolidated results of operations and percentages of certain items in relation to total revenues for the nine months ended March 31, 2025 and 2024, and provides information regarding the dollar and percentage increase or (decrease) during such periods. The operating results in any historical period are not necessarily indicative of the results that may be expected for any future period.7

	For the nine months ended March 31,
	2025					2024
Revenues	Amount		% of total Revenues			Amount		% of total Revenues			Amount Increase (Decrease)			Percentage Increase (Decrease)
Revenue from cross-border freight solutions
Cross-border ocean freight solutions	$	4,490,299		39.1	%	$	5,632,765		41.6	%	$	(1,142,466	)		(20.3	)%
Cross-border airfreight solutions		6,274,622		54.7	%		7,892,577		58.4	%		(1,617,955	)		(20.5	)%
Subtotal		10,764,921		93.8	%		13,525,342		100.0	%		(2,760,421	)		(20.4	)%
Revenue from distribution of pharmaceutical products		715,362		6.2	%		-		-			715,362			NA
Total revenues		11,480,283		100.0	%		13,525,342		100.0	%		(2,045,059	)		(15.1	)%
Cost of revenues – cross-border solution		10,043,158		87.5	%		10,837,727		80.1	%		(794,569	)		(7.3	)%
Cost of revenues – pharmaceutical products		240,966		2.1	%		-		-			240,966			NA
Total cost of revenues		10,284,124		89.6	%		10,837,727		80.1	%		(553,603	)		(5.1	)%
Gross profit – cross-border freight solution		721,763		6.7	%		2,687,615		19.9	%		(1,965,852	)		(73.1	)%
Gross profit – pharmaceutical products		474,396		66.3	%		-		-			474,396			NA
Gross profit	$	1,196,159		10.4	%	$	2,687,615		19.9	%	$	(1,491,456	)		(55.5	)%

Our customers for the distribution of pharmaceutical products are located in China, as we specifically target the Chinese market. For the three months ended September 30, 2025, our total revenue from pharmaceutical product distribution amounted to $1.3 million. We did not generate any revenue from this segment in the same period of the prior year.

Cost of Revenues

~~Our~~A ~~total~~breakdown ~~revenues~~of ~~from~~our ~~cross-border~~cost ~~freight solution decreased by~~of ~~$2.8~~revenues ~~million, or 20.4%, from $13.5 million~~ for the ~~nine~~three months ended ~~March~~September 3130, ~~2024, to $10.7 million for the nine months ended March 31,~~ 2025. ~~The~~and ~~decrease~~2024 ~~was~~is ~~primarily~~as ~~driven by a decline in volume we handled from our cross-border airfreight solutions.~~follows:

Revenues from our cross-border ocean freight solutions decreased by $1.1 million, or 20.3%, from $5.6 million for the nine months ended March 31, 2024, to $4.5 million for the nine months ended March 31, 2025. It was primarily due to a decrease in the volume of cross-border ocean freights processed and forwarded, dropping from 3,895 TEU for the nine months ended March 31, 2024, to 3,594 TEU for the nine months ended March 31, 2025. Additionally, a slowdown in consumer spending and business investments, impacted by overall economic downturn, reduced the demand for imported goods, leading to lower container volumes. Furthermore, due to a reduction in market volume and increased competition, the service price charged to customers also decreased.

	For the three months ended September 30,				Amount Increase			Percentage Increase
	2025		2024		(Decrease)			(Decrease)
Cost of revenue from cross-border freight solutions
Transportation and delivery costs	$	1,476,989	$	1,633,890	$	(156,901	)		(9.6	)%
Warehouse service charges		898,262		770,102		128,160			16.6	%
Custom declaration and terminal charges		1,127,988		441,624		686,364			155.4	%
Freight arrangement charges		121,687		164,340		(42,653	)		(26.0	)%
Overhead cost		575,426		549,059		26,367			4.8	%
Subtotal		4,200,352		3,559,015		641,337			18.0	%
Cost of revenue from distribution of pharmaceuticals
Cost of goods sold		790,770		-		790,770			100.0	%
Total cost of revenue	$	4,991,122	$	3,559,015	$	1,432,107			40.2	%

~~Revenues~~Our ~~from~~cost ~~our~~of revenues from cross-border ~~airfreight~~ freight solutions decreased by $10.76 million, or 20 18.50%, from $73.96 million for the ~~nine~~three months ended ~~March~~September 3130, 2024, to $64.32 million for the ~~nine~~three months ended ~~March~~September 3130, 2025. The decrease ~~was primarily due to a decrease~~ in ~~the~~cost ~~volume~~ of ~~cross-border air~~revenues ~~freight~~was ~~processed, from~~mainly ~~approximately 20,074 tons for the nine months ended March 31, 2024, to approximately 15,507 tons for the nine months ended March 31, 2025. Some of our customers reduced their orders~~ due to the ~~uncertainty~~combined ineffects ~~political regulations and higher tariffs since March 2025, leading to a significant decline in our revenue.~~of:

~~Starting~~(i) ~~from~~an ~~December~~increase ~~2025,~~in wecustoms

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