UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

(Mark One)

☒ ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, ~~2024~~2025

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

For the transition period from_________ to __________

BIO ESSENCE CORP.

(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)

California		000-56263		94-3349551
(STATE OR OTHER JURISDICTION OF INCORPORATION OR ORGANIZATION)		(COMMISSION FILE NO.)		(IRS EMPLOYEE IDENTIFICATION NO.)

2955 Main Street, Suite 300, Irvine CA 92618
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)

(949) 706-9966
(ISSUER TELEPHONE NUMBER)

Securities registered under Section 12(b) of the Exchange Act:
None.

Securities registered under Section 12(g) of the Exchange Act:

Common Stock, $0.0001 par value per share
(Title of Class)

Check whether the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Check whether the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act. Yes ☒ No ☐

Check whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act 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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-K (§229.405 of this chapter) contained herein, and no disclosure will be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ☒

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,” “non-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 has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Check whether the issuer is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The aggregate market value of the common stock held by non-affiliates of the issuer (based on a valuation of $0.50 per share) was $26,844,590 as of ~~June 30~~December 31, ~~2024~~2025.

As of March 2827, ~~2025~~2026, there were 38,009,000 shares of common stock issued and outstanding, with a par value $0.0001.

TABLE OF CONTENTS

		Page
PART I
Item 1.	Business	21
Item 1A.	Risk Factors	2
Item 2.	Properties	2
Item 3.	Legal Proceedings	2
Item 4.	Mine Safety Disclosures	2
PART II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	3
Item 6.	[Reserved]	3
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	4
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	1012
Item 8.	Financial Statements and Supplementary Data	1012
Item 9.	Changes In and Disagreements With Accountants on Accounting and Financial Disclosure	1012
Item 9A.	Controls and Procedures	1012
Item 9B.	Other Information	1113
Item 9C.	Disclosure Regarding Foreign that Jurisdiction that Prevent Inspections	1113
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	1214
Item 11.	Executive Compensation	1416
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	1618
Item 13.	Certain Relationships and Related Transactions, and Director Independence	1719
Item 14.	Principal Accountant Fees and Services	1719
PART IV
Item 15.	Exhibits, Financial Statement Schedules	1820

PART I

Special Note Regarding Forward-Looking Statements

Information included or incorporated by reference in this Annual Report on Form 10-K contains forward-looking statements. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Forward-looking statements may contain the words “believes,” “project,” “expects,” “anticipates,” “estimates,” “forecasts,” “intends,” “strategy,” “plan,” “may,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions, and are subject to numerous known and unknown risks and uncertainties. Additionally, statements relating to implementation of business strategy, future financial performance, acquisition strategies, capital raising transactions, performance of contractual obligations, and similar statements may contain forward-looking statements. In evaluating such statements, prospective investors and shareholders should carefully review various risks and uncertainties identified in this Report, including the matters set forth under the captions “Risk Factors” and in the Company’s other SEC filings. These risks and uncertainties could cause the Company’s actual results to differ materially from those indicated in the forward-looking statements. The Company disclaims any obligation to update or publicly announce revisions to any forward-looking statements to reflect future events or developments.

Although forward-looking statements in this Annual Report on Form 10-K reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by us. Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in or anticipated by the forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include, without limitation, those specifically addressed under the heading “Risk Factors Related to Our Business” below, as well as those discussed elsewhere in this Annual Report on Form 10-K. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this Annual Report on Form 10-K. We file reports with the Securities and Exchange Commission (“SEC”). You can read and copy any materials we file with the SEC at the SEC’s Public Reference Room, 100 F. Street, NE, Washington, D.C. 20549. You can obtain additional information about the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. In addition, the SEC maintains an Internet site (www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC, including us.

We disclaim any obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this Annual Report on Form 10-K. Readers are urged to carefully review and consider the various disclosures made throughout the entirety of this Annual Report, which attempt to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations and prospects.

Item 1. Business

General Corporate History

Bio Essence Corp. (“we,” “us,” “Bio Essence,” or the “Company”) is an herbal health, diet, and nutrition company. The Company’s mission is to provide herbal health, diet, and vitamin nutritional supplements, as explained below.

The Company was incorporated in the State of California on January 1, 2000. On January 27, 2016, the Company entered into a change of control whereby our controlling shareholder, Jian Yang, purchased a controlling interest in the Company. On that same date, Jian Yang entered into a stock purchase agreement with Fusion Diet Systems, Inc. a Utah corporation dba, Fusion Naturals (“Fusion Naturals”). Fusion Naturals was originally incorporated in Utah on April 20, 2010. On January 9, 2017, the Company created a new corporation in the State of California called Bio Essence Pharmaceutical, Inc. to serve as a health supplements manufacturer (“BEP”). Then, on January 12, 2017, the Company created its third subsidiary, Bio Essence Herbal Essentials Inc. (“BEH”). The Company serves as a holding corporation for these subsidiaries. On November 13, 2021, the Company dissolved Fusion Naturals and formed a new wholly owned subsidiary, McBE Pharma, Inc. (“McBE”).

~~Item~~The 1primary focus of BEP was producing products for BEH and McBE, along with providing original equipment manufacturing and private label services to other companies. ~~Business~~BEH targeted and developed traditional Chinese medicines (“TCM”) in the form of single herbs, granules, pills, and tablets. It also offered special formulated dietary supplements and medical food. On December 12, 2023, the Company entered into an agreement with Newway Inc to sell the 100% equity ownership of BEP for $300,000, which subsequently closed. On March 28, 2024, the Company entered into an agreement with Health Up Inc., to sell the 100% equity ownership of BEH for $400,000. On April 15, 2024, the Company dissolved McBE. The Company continues to operate in the ordinary course of business, despite the sale and dissolution of its subsidiaries. The Company’s operations are now managed through the Company itself, rather than wholly owned entities, for selling the healthy supplement products, and providing OEM services. However, the Company currently outsources manufacture / OEM service after disposal of BEP in December 2023.

~~General~~The ~~Corporate~~Company ~~History~~is headquartered at 2955 Main Street, Suite 300, Irvine, CA 92618 and the Company’s website is http://www.bioessencecorp.com. Our telephone number is (949) 706-9966.

The Company ~~was incorporated in the State of California~~currently onhas ~~January~~4 1,full-time ~~2000~~employees. On January 27, 2016, the Company entered into a change of control whereby our controlling shareholder, Jian Yang, purchased a controlling interest in the Company. On that same date, Jian Yang entered into a stock purchase agreement with Fusion Diet Systems, Inc. a Utah corporation dba, Fusion Naturals (“Fusion Naturals”). Fusion Naturals was originally incorporated in Utah on April 20, 2010. On January 9, 2017, the Company created a new corporation in the State of California called Bio Essence Pharmaceutical, Inc. to serve as a health supplements manufacturer (“BEP”). Then, on January 12, 2017, the Company created its third subsidiary, Bio Essence Herbal Essentials Inc. (“BEH”). The Company serves as a holding corporation for these subsidiaries. On November 13, 2021, the Company dissolved Fusion Naturals and formed a new wholly owned subsidiary, McBE Pharma, Inc. (“McBE”).

~~The~~Item ~~primary focus of BEP was producing products for BEH and McBE, along with providing original equipment manufacturing and private label services to other companies~~1A. ~~BEH~~Risk ~~targeted and developed traditional Chinese medicines (“TCM”) in the form of single herbs, granules, pills, and tablets~~Factors. It also offered special formulated dietary supplements and medical food. On December 12, 2023, the Company entered into an agreement with Newway Inc to sell the 100% equity ownership of BEP for $300,000, which subsequently closed. On March 28, 2024, the Company entered into an agreement with Health Up Inc., to sell the 100% equity ownership of BEH for $400,000. On April 15, 2024, the Company dissolved McBE. The Company continues to operate in the ordinary course of business, despite the sale and dissolution of its subsidiaries. The Company’s operations are now managed through the Company itself, rather than wholly owned entities, for selling the healthy supplement products, and providing OEM services. However, the Company currently outsources manufacture / OEM service after disposal of BEP in December 2023..

~~The~~As ~~Company~~a is“smaller ~~headquartered~~reporting atcompany” as ~~2955~~defined ~~Main~~by ~~Street, Suite~~Item ~~300,~~10 ~~Irvine,~~of CARegulation ~~92618~~S-K, ~~and~~ the Company’s ~~website~~ is ~~http://www.bioessencecorp.com.~~not ~~Our~~required ~~telephone~~to ~~number~~provide isthis ~~(949) 706-9966~~information.

~~Employees~~Item 1B. Unresolved Staff Comments.

~~The~~Not ~~Company currently has 2 full-time employees~~applicable.

Item 1A2. ~~Risk~~Description of ~~Factors~~Property.

AsThe aCompany ~~“smaller~~maintains an ~~reporting~~office ~~company”~~at as2955 ~~defined~~Main byStreet, ~~Item~~Suite ~~10 of~~300, ~~Regulation S-K~~Irvine, CA 92618. This location serves as the Company’s ismain headquarters. We do not own ~~required~~any properties. We currently have no policy with respect to ~~provide~~investments ~~this~~or ~~information~~interests in real estate, real estate mortgages or securities of, or interests in, persons primarily engaged in real estate activities.

Item 1B3. ~~Unresolved~~Legal ~~Staff Comments~~Proceedings.

~~Not~~On ~~applicable~~or about February 27, 2026, Stason Industrial Corporation (“SIC”) and Stason Pharmaceuticals, Inc. (“SPI,” collectively “Stason”) filed a Complaint in the Superior Court of Orange County, in California (the “Complaint”), alleging that the Company breached its contract and lease obligations relating to a large commercial space previously utilized by the Company. The Company and ten (10) unidentified individuals are defendants of the case. The Complaint alleges that the Company (1) breached rental payment obligations, and accrued late fees and other penalties pursuant to the operative agreements, and (2) breached a separate contract whereby the Company allegedly failed to perform certain laboratory and pharmaceutical processing services. The Complaint seeks $1,504,823.81 in damages as of January of 2026, relating to unpaid rent, lost revenue, and other damages. The Company denies the allegations and is in the process of retaining legal counsel. The Company intends on bringing counterclaims and affirmative defenses relating to first material breaches committed by Stason.

Item 24. ~~Description~~Mine ~~of Property~~Safety Disclosures.

~~The~~Not ~~Company maintains an office at 2955 Main Street, Suite 300, Irvine, CA 92618~~applicable. This location serves as the Company’s main headquarters. We do not own any properties. We currently have no policy with respect to investments or interests in real estate, real estate mortgages or securities of, or interests in, persons primarily engaged in real estate activities.

~~Item 3. Legal Proceedings.~~2

~~None.~~PART II

Item 4 5. ~~Mine~~Market ~~Safety~~for ~~Disclosures~~Common Equity, Related Stockholder Matters and Small Business Issuer Purchases of Equity Securities.

~~Not~~Common ~~applicable.~~ Stock

2The Company has 100,000,000 shares of authorized common stock (CUSIP# 09090C105), of which, as of the end of our 2025 fiscal year, had 38,009,000 issued and outstanding. The Company’s stock trades on the OTC Markets, under the symbol BIOE.

~~PART~~As IIof the most recent practicable date, there are 44 record holders of our common stock. The Company has not paid any cash dividends to date and may consider but no final decision has been made in paying dividends in the foreseeable future. We have no securities authorized for issuance under any Equity Compensation Plans.

~~Item~~Preferred ~~5. Market for Common Equity, Related Stockholder Matters and Small Business Issuer Purchases of Equity Securities.~~Stock

~~Common~~We ~~Stock~~do not have a class of preferred stock.

The Company has 100,000,000 shares of authorized common stock (CUSIP# 09090C105), of which, as of the end of our 2024 fiscal year, had 38,009,000 issued and outstanding. The Company’s stock trades on the OTC Markets, under the symbol BIOE.Dividends

AsWe ofhave ~~the~~not ~~most~~paid ~~recent~~any dividends ~~practicable~~on ~~date,~~our ~~there are~~common 44stock ~~record~~to ~~holders~~date. The payment of ~~our~~dividends ~~common~~in ~~stock.~~the ~~The~~future ~~Company~~will ~~has~~be ~~not~~contingent ~~paid~~upon our revenues and earnings, if any, capital ~~cash~~requirements ~~dividends~~and general financial condition subsequent to ~~date~~completion ~~and~~of ~~may~~a ~~consider~~business ~~but~~combination. noThe ~~final~~payment ~~decision~~of any will be within ~~has~~the ~~been~~discretion ~~made~~of inour ~~paying~~then ~~dividends~~Board inof Directors. It is the ~~foreseeable~~present ~~future.~~intention Weof ~~have~~our noBoard ~~securities~~of ~~authorized~~Directors ~~for~~to ~~issuance~~retain ~~under~~earnings, if any, ~~Equity Compensation~~for ~~Plans~~use in our business operations.

~~Preferred~~Securities ~~Stock~~Authorized for Issuance under Equity Compensation Plans

WeThe doCompany ~~not~~does not have aany ~~class~~current equity compensation plans or any individual compensation arrangements with respect to its common stock or preferred stock. The issuance of any of our common or preferred stock is within the discretion of our Board of Directors, which has the power to issue any or all of our authorized but unissued shares without stockholder approval.

~~Dividends~~Recent Sales of Unregistered Securities

~~We have not paid any dividends on our common stock to date~~None. The payment of dividends in the future will be contingent upon our revenues and earnings, if any, capital requirements and general financial condition subsequent to completion of a business combination. The payment of any will be within the discretion of our then Board of Directors. It is the present intention of our Board of Directors to retain earnings, if any, for use in our business operations.

~~Securities~~Issuer ~~Authorized~~Purchases ~~for~~of ~~Issuance under~~ Equity ~~Compensation Plans~~Securities

~~The Company does not have any current equity compensation plans or any individual compensation arrangements with respect to its common stock or preferred stock~~None. The issuance of any of our common or preferred stock is within the discretion of our Board of Directors, which has the power to issue any or all of our authorized but unissued shares without stockholder approval.

~~Recent~~Item ~~Sales~~6. ~~of Unregistered Securities~~[Reserved]

~~None.~~3

~~Issuer~~Item ~~Purchases~~7. Management’s Discussion and Analysis of ~~Equity~~Financial ~~Securities~~Condition and Results of Operation.

~~None.~~ Business Overview

~~Item~~The 6Company was incorporated in 2000 in the state of California. ~~[Reserved]~~Fusion Diet Systems (“FDS”) was incorporated in 2010 in the state of Utah. Bio Essence and FDS have been owned under common control since 2016. Bio Essence and FDS are mainly engaged in manufacturing and distributing health supplement products. In January 2017, Bio Essence incorporated two subsidiaries in the state of California: BEP and BEH, Bio Essence transferred its manufacturing operation into BEP and transferred its distributing operation into BEH. On March 1, 2017, the 100% shareholder of FDS transferred all her ownership in FDS into Bio Essence. On December 7, 2021, the Company dissolved FDS. On November 12, 2021, Bio Essence incorporated a wholly owned subsidiary McBE Pharma Inc. (“McBE”) in the state of California, McBE will be engaged in research and development and manufacture of prescription medicine. As a result of the ownership restructure, BEP, BEH, and MCBE became wholly owned subsidiaries of Bio Essence, and Bio Essence serves as a holding corporation for these subsidiaries. McBE has not engaged in any operations since its inception. On December 12, 2023, the Company entered into an agreement with Newway Inc. to sell the 100% equity ownership of BEP for $300,000. On March 28, 2024, the Company entered into an agreement with Health Up Inc to sell the 100% equity ownership of BEH for $400,000. On April 15, 2024, the Company dissolved McBE.

3The Company is mainly engaged in selling health supplements and providing OEM services. However, the Company currently outsources manufacture / OEM service after disposal of BEP in December 2023.

~~Item~~Related ~~7. Management’s Discussion and Analysis of Financial Condition and Results of Operation.~~Party Transactions

~~Business~~Loans ~~Overview~~ from Shareholders

~~The~~As ~~Company was incorporated in 2000 in the state~~ of ~~California.~~December ~~Fusion Diet Systems (“FDS”) was incorporated in 2010 in the state of Utah. Bio Essence~~31, ~~and FDS have been owned under common control since 2016. Bio Essence and FDS are mainly engaged in manufacturing and distributing health supplement products. In January 2017~~2024, ~~Bio Essence incorporated two subsidiaries in~~ the ~~state~~Company ofhad ~~California:~~loans ~~BEP~~from ~~and~~one ~~BEH,~~major ~~Bio Essence transferred its manufacturing operation into BEP and transferred its distributing operation into BEH. On March 1, 2017, the 100%~~ shareholder of ~~FDS~~(also ~~transferred all her ownership in FDS into Bio Essence. On December 7, 2021,~~ the Company’s ~~dissolved~~senior ~~FDS. On November 12, 2021, Bio Essence incorporated a wholly owned subsidiary McBE Pharma Inc. (“McBE”~~officer) ~~in the state~~ of ~~California~~$1, ~~McBE will be engaged in research and development and manufacture of prescription medicine. As a result of the ownership restructure~~186, ~~BEP~~177, ~~BEH,~~including ~~and MCBE became wholly owned subsidiaries of Bio Essence~~$608,631 ~~and Bio Essence serves as a holding corporation~~ for ~~these subsidiaries. McBE has not engaged~~ insettling ~~any~~a ~~operations since its inception. On December 12~~litigation, ~~2023,~~which the Company ~~entered~~also ~~into~~repaid anthe ~~agreement~~outstanding ~~with~~balance ~~Newway~~in ~~Inc~~full toduring ~~sell~~ the ~~100% equity~~year ~~ownership~~ended ofDecember ~~BEP for $300~~31,~~000~~ 2025. OnThese ~~March~~loans are 28unsecured, ~~2024,~~non-interest ~~the~~bearing ~~Company~~and ~~entered~~have ~~into~~no anfixed ~~agreement~~terms ~~with Health Up Inc to sell the 100% equity ownership~~ of ~~BEH for $400~~repayment,~~000.~~ Onand ~~April 15~~therefore, ~~2024,~~deemed ~~the~~payable ~~Company~~on ~~dissolved McBE~~demand.

~~The~~Loan ~~Company~~to ~~is mainly engaged in selling the health supplements and providing OEM services. However, the Company currently outsources manufacture / OEM service after disposal of BEP in December 2023.~~Shareholder

~~Related~~As ~~Party~~of ~~Transactions~~ December 31, 2025, the Company had loans to one major shareholder (also the Company’s senior officer) of $385,173. There are no written loan agreements for these loans. These loans are unsecured, non-interest bearing and have no fixed terms of repayment, and therefore, deemed receivable on demand. Subsequently, $380,000 was repaid on March 20, 2026.

~~Loans~~Critical ~~from~~Accounting Policies ~~Officer~~ and Estimates

OnOur ~~December~~management’s discussion ~~31,~~and ~~2024~~ analysis of our financial condition and ~~2023,~~results ~~the~~of ~~Company~~operations ~~had~~are ~~loans~~based ~~from~~on ~~one~~our ~~major~~consolidated ~~shareholder~~financial statements (~~also~~“CFS”), which were prepared in accordance with accounting principles generally accepted in the ~~Company’s~~United ~~senior~~States ~~officer~~of America (“US GAAP”). The preparation of ~~$577,546~~these financial statements requires us to make estimates and ~~$1,180,046,~~assumptions ~~respectively.~~that affect the reported amounts of assets Onand ~~December~~liabilities ~~31,~~and ~~2024~~the disclosure of contingent assets and ~~2023,~~liabilities at the ~~Company~~date ~~had~~of ~~loan~~the ~~from~~financial ~~another~~statements ~~major~~as ~~shareholder~~well ~~for~~as ~~$608,631~~the ~~for~~reported net ~~settling~~sales and expenses during the ~~litigation~~reporting periods. ~~There~~On ~~are no~~an ~~written~~ongoing ~~loan~~basis, ~~agreements~~we ~~for~~evaluate ~~these~~our ~~loans~~estimates and assumptions. ~~These~~We ~~loans~~base our estimates on historical experience and various other factors that we believe are ~~unsecured~~reasonable under the circumstances, ~~non-interest~~the ~~bearing~~results ~~and~~of ~~have~~which noform the ~~fixed~~basis ~~terms~~for making judgments about the carrying value of ~~repayment,~~assets and liabilities that are not readily apparent from other sources. Actual ~~therefore,~~results ~~deemed~~may ~~payable~~differ onfrom ~~demand~~these estimates under different assumptions or conditions.

OnWhile ~~May~~our ~~31, 2023, the~~significant ~~Board~~accounting ofpolicies ~~Directors~~are ofmore ~~the~~fully ~~Company,~~described ~~approved~~in aNote ~~debt-to-equity~~2 ~~conversion. The Company and Ms. Yan (the Company’s Chief Executive Officer also the major shareholder) agreed~~ to aour ~~debt conversion whereby Ms. Yan receives 5~~CFS,~~000,000~~ ~~shares~~we ofbelieve the ~~Company’s common~~following ~~stock~~accounting inpolicies ~~exchange~~are ~~for retirement of~~ the ~~$2,500,000~~most ~~debt. The Board of Directors of the Company executed the Consent Resolution~~critical onto ~~June~~assist 2,you ~~2023.~~in Onfully ~~June~~understanding 2,and ~~2023,~~evaluating ~~the~~this ~~closing~~management ~~price~~discussion ofand ~~the Company’s common stocks trading on OTC Market was $0~~analysis.~~51 per share. The Company incurred a $50,000 loss on this conversion.~~

~~Critical Accounting Policies and Estimates~~ 4

~~Our~~Basis ~~management’s discussion and analysis~~ of our financial condition and results of operations are based on our consolidated financial statements (“CFS”), which were prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported net sales and expenses during the reporting periods. On an ongoing basis, we evaluate our estimates and assumptions. We base our estimates on historical experience and various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Presentation

~~While~~The ~~our~~accompanying ~~significant~~consolidated ~~accounting~~financial ~~policies~~statements (“CFS”) are ~~more~~prepared ~~fully~~in ~~described~~conformity inwith ~~Note~~U.S. 2Generally toAccepted ~~our~~Accounting ~~CFS,~~Principles we(“US ~~believe~~GAAP”) and applicable rules and regulations of the ~~following~~Securities ~~accounting~~and ~~policies~~Exchange ~~are~~Commission ~~the~~(“SEC”). ~~most~~The ~~critical~~functional currency of Bio Essence tois ~~assist~~U.S. ~~you~~dollars (“$’’). The accompanying financial statements are presented in ~~fully~~U.S. ~~understanding~~dollars (“$”). The consolidated financial statements include the financial statements of the Company and ~~evaluating~~its ~~this~~subsidiaries, ~~management~~BEH ~~discussion~~(up to disposal date), and McBE ~~analysis~~(up to dissolution date). All significant inter-company transactions and balances were eliminated in consolidation.

4Going Concern

~~Basis~~The Company incurred a net income of ~~Presentation~~$896,197 and a net loss $1,565,721 from the company’s continuing operations for the years ended December 31, 2025 and 2024, respectively. The Company also had an accumulated deficit of $9,553,073 from the company’s continuing operations as of December 31, 2025. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company plans to increase its income by strengthening its sales force, providing attractive sales incentive programs, and increasing marketing and promotion activities. Management also intends to raise additional funds by way of a private or public offering, or by obtaining loans from banks or others. While the Company believes in the viability of its strategy to generate sufficient revenue and in its ability to raise additional funds on reasonable terms and conditions, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds by way of a public or private offering. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

~~The~~Use ~~accompanying consolidated financial statements (“CFS”) are prepared in conformity with U.S. Generally Accepted Accounting Principles (“US GAAP”) and applicable rules and regulations~~ of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The functional currency of Bio Essence is U.S. dollars (“$’’). The accompanying financial statements are presented in U.S. dollars (“$”). The consolidated financial statements include the financial statements of the Company and its subsidiaries, BEH (up to disposal date), and McBE (up to dissolution date). All significant inter-company transactions and balances were eliminated in consolidation. Estimates

~~Going~~In ~~Concern~~preparing financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period.

~~The~~Significant ~~Company incurred net losses of $1~~estimates,~~565,721 and $404,604 from the company’s continuing operations for the years ended December 31, 2024 and 2023, respectively.~~ ~~The~~required ~~Company~~by ~~also had an accumulated deficit of $10~~management,~~449,270~~ ~~from~~include the ~~company’s~~recoverability ~~continuing operations as~~ of ~~December~~long-lived 31assets, ~~2024. These~~assumptions ~~conditions~~used ~~raise~~in ~~substantial doubt about~~ the ~~Company’s~~accounting ~~ability~~for ~~to continue as a going concern. The Company plans to increase its income by strengthening its sales force~~leases, ~~providing attractive sales incentive programs,~~ and ~~increasing marketing and promotion activities. Management also intends to raise additional funds by way of a private or public offering, or by obtaining loans from banks or others. While~~ the ~~Company believes in the viability of its strategy to generate sufficient revenue and in its ability to raise additional funds~~evaluation ~~on reasonable terms and conditions, there can be no assurances to that effect. The ability~~ of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds by way of a public or private offeringcontingencies. ~~The~~Actual ~~financial~~results ~~statements~~could dodiffer ~~not include any adjustments that might result~~ from ~~the~~those ~~outcome of this uncertainty~~estimates.

~~Use~~Credit ~~of Estimates~~Losses

InOn ~~preparing~~January1, ~~financial~~2023, ~~statements~~the inCompany ~~conformity~~adopted ~~with~~Accounting USStandards ~~GAAP,~~Update 2016-13 “Financial ~~management~~Instruments — Credit ~~makes~~Losses ~~estimates~~(Topic 326), Measurement ~~and~~of ~~assumptions~~Credit ~~that~~Losses ~~affect~~on ~~the~~Financial ~~reported~~Instruments,” ~~amounts~~which ofreplaces ~~assets~~the ~~and~~incurred ~~liabilities and~~loss ~~disclosures~~methodology ofwith ~~contingent~~an ~~assets~~expected ~~and~~loss ~~liabilities~~methodology that atis ~~the~~referred ~~dates~~to ~~of the financial statements,~~ as ~~well as~~ the ~~reported~~current ~~amounts~~expected ofcredit ~~revenues and~~loss ~~expenses~~(“CECL”) ~~during the reporting period~~methodology.

~~Significant~~The ~~estimates~~Company’s account receivables and other receivables in the balance sheet are within the scope of ASC Topic 326. As the Company has limited customers and debtors, the Company uses the loss-rate method to evaluates the expected credit losses on an individual basis. When ~~required~~establishing bythe ~~management~~loss rate, ~~include~~the Company makes the ~~recoverability~~assessment ofon ~~long~~various factors, including historical experience, credit-~~lived~~worthiness of customers ~~assets~~and debtors, ~~allowance~~current ~~for~~economic ~~doubtful~~conditions, ~~accounts~~reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from the ~~reserve~~customers and debtors. The Company also provides specific provisions for ~~obsolete~~allowance when facts and ~~slow-moving~~circumstances ~~inventories.~~indicate ~~Actual~~that ~~results~~the ~~could~~receivable ~~differ~~is ~~from~~unlikely ~~those~~to ~~estimates~~be collected.

~~Credit Losses~~5

OnExpected ~~January1,~~credit ~~2023, the~~losses ~~Company~~are ~~adopted~~recorded ~~Accounting~~as ~~Standards~~allowance ~~Update 2016-13 “Financial~~for ~~Instruments — Credit~~credit ~~Losses~~losses ~~(Topic 326), Measurement of Credit Losses~~ on ~~Financial~~the ~~Instruments,”~~consolidated ~~which~~statements ~~replaces~~of ~~the~~operations. ~~incurred~~After ~~loss~~all ~~methodology~~attempts ~~with~~to ancollect ~~expected~~a ~~loss methodology~~receivable ~~that~~have isfailed, ~~referred to as~~ the ~~current~~receivable ~~expected~~is ~~credit~~written ~~loss~~off ~~(“CECL”)~~against ~~methodology~~the allowance. ~~The~~In ~~adoption~~the ofevent the ~~credit~~Company ~~loss~~recovers ~~accounting~~amount ~~standard has~~that nois ~~material~~previously ~~impact~~reserved for, on the Company’s ~~consolidated~~will ~~financial~~reduce ~~statements~~the asspecific ofallowance ~~January 1,~~for ~~2023~~credit losses.

~~The~~Accounts ~~Company’s account receivables and other receivables in the balance sheet are within the scope of ASC Topic 326. As the Company has limited customers and debtors~~Receivable, ~~the Company uses the loss-rate~~ method to evaluates the expected credit losses on an individual basis. When establishing the loss rate, the Company makes the assessment on various factors, including historical experience, credit-worthiness of customers and debtors, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from the customers and debtors. The Company also provides specific provisions for allowance when facts and circumstances indicate that the receivable is unlikely to be collected.Net

~~Expected~~The ~~credit losses~~Company’s ~~are~~policy ~~recorded~~is asto maintain an allowance for potential credit losses on ~~the~~accounts ~~consolidated~~receivable. ~~statements~~Management ofreviews ~~operations.~~the ~~After~~composition ~~all~~of ~~attempts~~accounts receivable toand ~~collect~~analyzes ahistorical ~~receivable~~bad ~~have failed~~debts, ~~the~~customer ~~receivable~~concentrations, iscustomer ~~written~~credit ~~off~~worthiness, ~~against~~current ~~the~~economic ~~allowance.~~trends Inand ~~the~~changes in ~~event~~customer payment patterns to evaluate the ~~Company~~adequacy ~~recovers~~of ~~amount~~these ~~that~~reserves. isAs ~~previously~~of ~~reserved~~December ~~for~~31, ~~the~~ ~~Company~~2025 ~~will~~and ~~reduce~~2024, ~~the~~there ~~specific~~was ~~allowance~~no ~~for~~bad ~~credit~~debt ~~losses~~allowance.

~~Accounts~~Revenue ~~Receivable, Net~~Recognition

The Company’s ~~policy~~recognizes isrevenues tofollowing ~~maintain~~the anfive-step ~~allowance~~model ~~for~~prescribed ~~potential~~under ~~credit~~ASC ~~losses~~606: on(i) ~~accounts~~identify ~~receivable.~~contract(s) ~~Management~~with ~~reviews~~a ~~the~~customer; ~~composition~~(ii) ofidentify ~~accounts~~the ~~receivable~~performance ~~and~~obligations ~~analyzes~~in ~~historical~~the ~~bad~~contract; ~~debts,~~(iii) ~~customer~~determine ~~concentrations,~~the ~~customer~~transaction ~~credit~~price; ~~worthiness,~~(iv) ~~current~~allocate ~~economic~~the ~~trends~~transaction ~~and~~price ~~changes in customer payment patterns~~ to ~~evaluate~~ the ~~adequacy~~performance ofobligations in ~~these~~the ~~reserves.~~contract; ~~As of December 31, 2024~~ and ~~2023,~~(v) ~~there~~recognize ~~was~~revenues nowhen ~~bad~~(or ~~debt~~as) ~~allowance.~~we Assatisfy ~~of December 31, 2023,~~ the ~~bad~~performance ~~debt allowance from discontinued operation (BEH) was $2,252~~obligation.

5Revenue is measured at the amount of consideration we expect to receive in exchange for the sale of our product, which occurs at a point in time, typically upon delivery to the customer. The Company expenses incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that it would have recognized is one year or less or the amount is immaterial.

~~Revenue~~Revenues ~~Recognition~~ from sales of goods are measured at net of reserves established for applicable discounts and allowances that are offered within contracts with the Company’s customers, and are recognized when the goods are delivered to the customers.

~~The~~Product ~~Company~~revenue ~~recognizes~~reserves, ~~revenues~~which ~~following~~are ~~the~~classified ~~five-step~~as ~~model~~a ~~prescribed~~reduction ~~under~~in ~~ASC~~product ~~606:~~revenues, ~~(i)~~are ~~identify~~generally ~~contract(s)~~characterized ~~with~~in athe ~~customer;~~following ~~(ii)~~categories: ~~identify~~discounts, ~~the performance~~returns ~~obligations~~and inrebates. ~~the~~These ~~contract;~~reserves ~~(iii)~~are ~~determine~~based ~~the~~on ~~transaction~~estimates ~~price;~~of ~~(iv) allocate~~ the ~~transaction~~amounts ~~price~~earned or to ~~the~~be ~~performance~~claimed ~~obligations in~~on the ~~contract;~~related sales and ~~(v)~~are ~~recognize~~classified ~~revenues~~as reductions ~~when~~of ~~(or~~accounts receivable as) wethe ~~satisfy~~amount is payable to the ~~performance~~Company’s ~~obligation~~customers.

~~Revenue~~Revenues isfrom ~~measured at~~manufacture ~~the~~services ~~amount~~are ofrecognized ~~consideration~~when ~~we expect to receive in exchange for~~ the ~~sale~~manufacture ofprocess ~~our~~is ~~product,~~completed ~~which~~pursuant ~~occurs at a point in time, typically upon delivery~~ to the ~~customer.~~customers’ ~~The~~requirement ~~Company expenses incremental costs of obtaining a contract as~~ and ~~when incurred if~~ the ~~expected~~finished ~~amortization~~goods ~~period~~were ofdelivered ~~the~~to ~~asset that it would have recognized is one year or less or~~ the ~~amount is immaterial~~customers.

~~Revenues~~The ~~from~~Company’s return ~~sales~~policy allows for the return of ~~goods~~ ~~are~~damaged ~~measured~~or atdefective ~~net~~products ofand ~~reserves~~shipment ~~established~~errors. ~~for~~A ~~applicable~~notice ~~discounts~~of ~~and~~damage ~~allowances~~or ~~that~~wrong ~~are~~items ~~offered~~should make within ~~contracts~~five ~~with~~days from receiving the ~~Company’s customers~~goods, and ~~are~~actual ~~recognized~~return ~~when~~of the products must be completed within 30 days from the date of receiving the goods. Delayed notification for damaged or wrong products will not be accepted for return or exchange. Custom formulas and capsules are ~~delivered~~not toreturnable. The amount for return of products was immaterial for the ~~customers~~years ended December 31, 2025 and 2024.

Product revenue reserves, which are classified as a reduction in product revenues, are generally characterized in the following categories: discounts, returns and rebates. These reserves are based on estimates of the amounts earned or to be claimed on the related sales and are classified as reductions of accounts receivable as the amount is payable to the Company’s customers. 6

~~Revenues~~Results ~~from~~of ~~manufacture services are recognized when the manufacture process is completed pursuant to the customers’ requirement and the finished goods were delivered to the customers.~~ operations

~~The~~Comparison ~~Company’s return policy allows for the return~~ of ~~damaged or defective products and shipment errors. A notice of damage or wrong items should make within~~ ~~five~~continuing ~~days~~operations ~~from receiving the goods, and actual return of the products must be completed within 30 days from the date of receiving the goods. Delayed notification~~ for ~~damaged or wrong products will not be accepted for return or exchange. Custom formulas and capsules are not returnable. The amount for return of products was immaterial for~~ the years ended December 31, ~~2024~~2025 and ~~2023.~~2024

~~Results~~The following table sets forth the results of our operations for the periods indicated as a percentage of net sales. Certain columns may not add due to rounding.

Comparison of continuing operations for the years ended December 31, 2024 and 2023

	2025			% of Sales			2024			% of Sales			Dollar Increase (Decrease)			Percent Increase (Decrease)
Sales of goods	$	-			-	%	$	37,415			11.55	%	$	(37,415	)		(100.00	)%
Revenue from OEM services		1,896,350			99.94	%		282,752			87.29	%		1,613,598			570.68	%
Shipping and delivery income		1,216			0.06	%		3,773			1.16	%		(2,557	)		(67.77	)%
Total revenues		1,897,566			100.00	%		323,940			100.00	%		1,573,626			485.78	%
Cost of goods sold		-			-	%		20,513			6.33	%		(20,513	)		(100.00	)%
Cost of OEM services		469,153			24.72	%		86,350			26.66	%		382,803			443.32	%
Total cost of revenues		469,153			24.72	%		106,863			32.99	%		362,290			339.02	%
Gross profit		1,428,413			75.28	%		217,077			67.01	%		1,211,336			558.02	%
Selling expenses		30,593			1.61	%		-			-	%		30,593			100.00	%
General and administrative expenses		497,809			26.23	%		676,515			208.84	%		(178,706	)		(26.42	)%
Operating expenses		528,402			27.85	%		676,515			208.84	%		(148,113	)		(21.89	)%
Income (loss) from operations		900,011			47.43	%		(459,438	)		(141.83	)%		1,359,449			295,89	%
Other income (expenses), net		(3,014	)		(0.16	)%		(1,105,483	)		(341.26	)%		(1,102,469	)		(99.73	)%
Income (loss) before income taxes		896,997			47.27	%		(1,564,921	)		(483.09	)%		2,461,918			157.32	%
Income tax expense		800			0.04	%		800			0.25	%		-			-	%
Net income (loss) from continuing operations		896,197			47.23	%		(1,565,721	)		(483.34	)%		2,461,918			157.24	%
Loss from discontinued operations		-			-	%		(120,827	)		(37.30	)%		120,827			100.00	%
Gain from disposal of discontinued operations		-			-	%		377,752			116.61	%		(377,752	)		(100.00	)%
Net income	$	896,197			47.23	%	$	(1,308,796	)		(404.02	)%	$	2,204,993			168.47	%

~~The following table sets forth the results of our operations for the periods indicated as a percentage of net sales. Certain columns may not be added due to rounding.~~7

	2024			% of Sales			2023			% of Sales			Dollar Increase (Decrease)			Percent Increase (Decrease)
Revenues	$	323,940			100.00	%	$	-			-	%	$	323,940			100.00	%
Cost of revenues		106,863			32.99	%		-			-	%		106,863			100.00	%
Gross profit		217,077			67.01	%		-				%		217,077			100.00	%
Selling expenses		-			-	%		-			-	%		-			-	%
General and administrative expenses		676,515			208.84	%		345,590			-	%		330,925			95.76	%
Total operating expenses		676,515			208.84	%		345,590			-	%		330,925			95.76	%
Loss from operations		(459,438	)		(141.83	)%		(345,590	)		-	%		(113,848	)		32.94	%
Other expenses, net		(1,105,483	)		(341.26	)%		(57,414	)		-	%		(1,048,069	)		1825.45	%
Loss before income taxes		(1,564,921	)		(483.09	)%		(403,004	)		-	%		(1,161,917	)		288.31	%
Income tax expense		800			0.25	%		1,600			-	%		(800	)		(50.00	)%
Net loss from continuing operations		(1,565,721	)		(483.34	)%		(404,604	)		-	%		(1,161,117	)		286.98	%
Loss from discontinued operations		(120,827	)		(37.30	)%		(634,726	)		-	%		513,899			(80.96	)%
Gain from disposal of discontinued operations		377,752			116.61	%		67,451			-	%		310,301			460.04	%
Net loss	$	(1,308,796	)		(404.02	)%	$	(971,879	)		-	%	$	(336,917	)		(34.67	)%

Revenues

6Revenues from the company’s continuing operations for the years ended December 31, 2025 and 2024 were $1,897,566 and $323,940, respectively. We had nil product sales, $1,896,350 OEM service revenue, and $1,216 shipping and delivery income for the year ended December 31, 2025. We had $37,415 product sales, $282,752 OEM service revenue, and $3,773 shipping and delivery income for the year ended December 31, 2024. Revenue from the company’s discontinued operations for the year ended December 31, 2024 was $153,865. The significant increase in revenue during the year ended December 31, 2025, compared to the same period in 2024, was primarily attributable to a higher volume of OEM service orders, including large orders from three new major customers. The Company’s strategic emphasis on OEM service revenue rather than product sales contributed to the overall growth in revenue and an improvement in the revenues.

~~Revenues~~ Costs of revenues

~~Revenues~~Costs of revenues from ~~the~~ the company’s continuing operations for the years ended December 31, ~~2024~~2025 and ~~2023~~2024 were $~~323~~469,~~940~~153 and $~~nil~~106,863, respectively. We had ~~$37,415~~nil ~~product~~cost of sales, for products and $~~282~~469,~~752~~153 cost for OEM service revenue for the year ended December 31, ~~and~~2025. We had $320,~~773~~513 cost ~~shipping~~of sales for products and ~~delivery~~$86,350 ~~income~~cost for OEM service revenue for the year ended December 31, 2024. The increase in cost of revenues ~~Revenues~~was mainly due to increase in revenues. Costs of revenues from the company’s discontinued operations for the ~~years~~year ended December 31, 2024 ~~and~~was ~~2023 were~~ $~~153~~76,~~865 and $1,048,597, respectively~~592.

~~Costs~~Gross ~~of revenues~~ profit

~~Costs~~For ofthe ~~revenues~~factors mentioned above, the gross profits from the company’s continuing operations for the years ended December 31, ~~2024~~2025 and ~~2023~~2024 were $~~106~~1,~~863~~428,413 and $~~nil~~217,077, respectively. ~~We had~~The ~~$20,513~~increase ~~cost~~in ofgross ~~sales~~profit ~~for~~was ~~products~~mainly ~~and$86,350~~due ~~cost~~to ~~for~~increase ~~OEM~~in ~~service revenue for the year ended December 31, 2024~~revenues. ~~Costs~~The ofgross ~~revenues~~ profits from ~~the~~ the company’s discontinued operations for the ~~years~~year ended December 31, 2024 ~~and~~was ~~2023 were~~ $7677,~~592 and $632,120, respectively~~273.

~~Gross~~Operating ~~profit~~ expenses

~~For~~Selling ~~the~~expenses ~~factors mentioned~~consisted ~~above~~mainly of advertising, ~~the~~show ~~gross~~expenses, ~~profits~~products marketing, shipping expenses, and promotion expenses. Selling expenses from the company’s continuing operations for the years ended December 31, ~~2024~~2025 and ~~2023~~2024 were $~~217~~30,~~077~~593 and $nil, respectively. ~~The~~Selling ~~gross~~expense ~~profits~~ from the company’s discontinued operations for the ~~years~~year ended December 31, 2024 ~~and~~ ~~2023~~was ~~were~~ $7713,~~273 and $416,477, respectively~~716.

~~Operating~~General and administrative expenses consisted mainly of employee salaries and welfare, business meeting, utilities, accounting, consulting, and legal expenses. General and administrative expenses from the company’s continuing operations were $497,809 for the year ended December 31, 2025, compared to $676,515 for the year ended December 31, 2024, a decrease of $178,706 or 26.42%, the decrease was mainly due to decreased office rent and office CAM fee by $400,034, decreased property tax expense by $4,699, which was partly offset by increased salary expense by $115,332, increased professional fee by $34,607, and increased consulting fee by $75,033. General and administrative expenses from the company’s discontinued operations was $178,936 for the year ended December 31, 2024.

~~Selling~~Other ~~expenses consisted~~income ~~mainly of advertising, show~~ (expenses), ~~products marketing, shipping expenses, and promotion expenses. There were no selling~~ expenses from the company’s continuing operations for the years ended December 31, 2024 and 2023. Selling expense from the company’s discontinued operations was $13,716 for the year ended December 31, 2024, compared to $111,696 for the year ended December 31, 2023.net

~~General and administrative~~ Other expenses from the ~~consisted~~company’s ~~mainly~~continuing ofoperations was ~~employee~~$3,014 ~~salaries~~ and ~~welfare~~$1,105,483 ~~business~~for ~~meeting,~~the ~~utilities,~~years ~~accounting,~~ended ~~consulting~~December 31, 2025 and ~~legal~~2024, ~~expenses~~respectively. ~~General~~ ~~and~~For ~~administrative expenses from~~ the ~~company’s~~year ~~continuing~~ended ~~operations were~~December ~~$676~~31,~~515~~ ~~for~~2025, ~~the~~other ~~year~~expenses ~~ended~~mainly ~~December~~consisted ~~31,~~of ~~2024, compared~~interest toexpense of $~~345~~2,~~590~~186 ~~for~~and ~~the~~other expenses of $828. For the year ended December 31, ~~2023~~2024, another ~~increase~~expenses mainly consisted of interest expense of $~~330~~2,~~925~~153, orimpairment ~~95.76%,~~of ~~the~~ROU ~~increase~~asset ~~was~~of ~~mainly~~$1,050,940 due to ~~increased office~~early ~~rent~~termination byof ~~$272~~the lease,~~504,~~ ~~increased~~and ~~consulting~~other ~~fee~~expenses byof $6753,~~620~~091, which was partly offset by ~~decreased~~other ~~accounting~~income ~~fee~~ of $~~8,690~~701. ~~General~~Other ~~and administrative~~ expenses from the company’s discontinued operations was $~~178~~5,~~936~~448 for the year ended December 31, 2024~~, compared to $1,004,784 for the year ended December 31, 2023~~.

~~Other expenses, net~~ 8

~~Other expenses from the~~Net company’s continuing operations were $1,105,483 and $57,414 for the years ended December 31, 2024 and 2023, respectively. For the year ended December 31, 2024, other expenses mainly consisted of interest expense of $2,153, impairment of ROU asset of $1,050,940 due to early termination of the lease, and other expenses of $53,091, which was partly offset by other income ~~of $701. For the year ended~~(loss) ~~December 31, 2023, other expenses mainly consisted of interest expense of $2,197, other expenses of $73,058, which was partly offset by net other income of $17,841. Other expenses~~ from ~~the~~continuing ~~company’s discontinued~~ operations ~~were $5,448 for the year ended December 31, 2024, compared to other income of $66,877 for the year ended December 31, 2023.~~

7We had a net income of $896,197 from the company’s continuing operations for the year ended December 31, 2025, compared to a net loss $1,565,721 from the company’s continuing operations for the year ended December 31, 2024, a increase of $2,461,918 or 157.24%. The increase in revenue was mainly due to increased gross profit and decreased other expenses as describe above.

Net ~~loss~~income from ~~continuing~~ discontinued operations

We had a net ~~loss of~~income of $1256,~~565,721~~ 925 from the company’s ~~continuing~~discontinued operations for the year ended December 31, 2024~~, compared to $404,604 for the year ended December 31, 2023, an increase of $1,161,117 or 286~~.~~98%.~~

~~Net~~Liquidity ~~loss from discontinued~~and ~~operations~~ Capital Resources

WeAs ~~had net gain~~ of ~~$256~~December 31,~~925~~ 2025, from the company’s ~~discontinued~~continuing operations, we ~~for~~had ~~the~~none ~~year~~cash ~~ended~~and equivalents, other current assets of $422,377, other current liabilities of $2,439,211, working capital deficit of $2,016,834, a current ratio of 0.0.17:1. As of December 31, 2024, from the ~~compared~~company’s tocontinuing ~~net~~operations, we ~~loss~~had cash and equivalents of $~~567~~1,~~275~~371, ~~for~~other ~~the~~current ~~year~~assets ~~end~~of $279,321, other current ~~ended~~liabilities ~~December~~of 31$2,802,700, ~~2023~~working capital deficit of $2,522,008, a current ratio of 0. 10:1.

~~Liquidity~~The following is a summary of cash provided by or used in each of the indicated types of activities during the years ended December 31, 2025, and ~~Capital~~2024, ~~Resources~~ respectively.

As of December 31, 2024, from the company’s continuing operations, we had cash and equivalents of $1,371, other current assets of $279,321, other current liabilities of $2,802,700, working capital deficit of $2,522,008, a current ratio of 0.10:1. As of December 31, 2023, from the company’s continuing operations, we had cash and equivalents of $nil, bank overdraft of $9,436, other current assets of $300,000, other current liabilities (excluding bank overdraft) of $2,441,020, working capital deficit of $2,150,456, a current ratio of 0.12:1.

	2025			2024
Net cash provided by operating activities for continuing operations	$	1,569,753		$	639,817
Net cash used in operating activities for discontinued operations		-			(15,952	)
Net cash provided by operating activities		1,569,753			623,865

Net cash provided by investing activities for continuing operations		-			(114	)
Net cash provided by investing activities for discontinued operations		-			-
Net cash provided by investing activities		-			(114	)

Net cash used in financing activities for continuing operations		(1,571,124	)		(613,171	)
Net cash used in financing activities for discontinued operations		-			(9,323	)
Net cash used in provided by financing activities	$	(1,571,124	)	$	(622,494	)

~~The~~Net ~~following is a summary of~~ cash provided by oroperating ~~used in each of the indicated types of~~ activities ~~during~~for ~~the~~continuing ~~years ended December 31, 2024, and 2023, respectively.~~operations

	2024			2023
Net cash provided by (used in) operating activities for continuing operations	$	639,817		$	(981,459	)
Net cash used in operating activities for discontinued operations		(15,952	)		(44,214	)
Net cash provided by (used in) operating activities		623,865			(1,025,673	)
Net cash used in investing activities for continuing operations		(114	)		(3,614	)
Net cash used in investing activities for discontinued operations		-			(87,870	)
Net cash used in investing activities		(114	)		(91, 484	)
Net cash provided by (used in) financing activities for continuing operations		(613,171	)		1,179,137
Net cash used in financing activities for discontinued operations		(9,323	)		(68,128	)
Net cash (used in) provided by financing activities	$	(622,494	)	$	1,111,009

Net cash provided by operating activities for continuing operations was $1,569,753 for the year ended December 31, 2025, compared to net cash provided by operating activities for continuing operations of $639,817 for the year ended December 31, 2024. The increase of cash inflow of $929,936 from operating activities of continuing operations for the year ended December 31, 2025 was principally attributable increased net income from continuing operations by $2,204,993, increased cash inflow from prepaid expenses and other receivables by $390,838, increased cash inflow from customer deposits by $474,370, increased cash inflow from prepayment and deposits by $91,261, increased cash inflow from account payable by $24,855, and increased cash inflow on payment of lease liability by $47,100, partly offset by decreased cash inflow from receivable from sale of BEP by $700,00 as the payment was received in 2025, and decreased cash inflow from accrued liability and other payables by $502,474.

~~Net cash provided by (used in) operating activities for continuing operations~~9

Net cash ~~provided~~used byin ~~operating~~investing activities ~~for~~ ~~continuing operations was $639,817~~ for ~~the year ended December 31, 2024, compared to net cash used in operating activities of $981,459 in 2023. The increase of cash inflow of $1,621,276 from operating activities of~~ continuing operations for the year ended December 31, 2024 was principally attributable to $700,000 payment received from sale of BEP and BEH, decreased cash outflow of prepayment and deposits to vendors by $28,187, decreased payment on accounts payable by $15,363, increased payment from customer deposit by $187,115, decreased payment of lease liability by $141,301, decreased payment on accrued labilities and other payables by $213,062, and change of adjustments to reconcile net loss to net cash provided by (used in) operating activities by $879,262; which was partly offset by increased net loss by $336,917 and decreased payment collected on other receivables by $200,969.

Net cash used in investing activities for continuing operations was nil for the year ended December 31, 2025, compared to net cash used in investing activities for continuing operations of $114 in 2024. The net cash used in investing activities for the year ended December 31, 2024 mainly consisted of $114 cash loss due to disposal of subsidiaries.

Net cash used in ~~investing~~ financing activities for continuing operations was $114 for the year ended December 31, 2024, compared to net cash used in investing activities for continuing operations of $91,484 in 2023. The net cash used in investing activities for the year ended December 31, 2024 mainly consisted of $114 cash loss due to disposal of subsidiaries. The net cash used in investing activities for the year ended December 31, 2023 was mainly for $3,614 leasehold improvements.

8Net cash used in financing activities for continuing operations was $1,571,124 for the year ended December 31, 2025, compared to net cash used in financing activities for continuing operations of $613,171 for the year ended December 31, 2024. The net cash used in financing activities for the year ended December 31, 2025 mainly consisted of $1,853,800 loan repayment to major shareholders, loan to the shareholder of $ 485,173, and payment of government loan of $1,305, partly offset by proceeds of $667,623 from loan from the major shareholder (also the senior officer), repayment from the shareholder of $100,000, and increased bank overdraft by $1,531. The net cash used in financing activities for year ended December 31, 2024 mainly consisted of $602,500 loan repayment to one major shareholder (also the senior officer), decreased bank overdraft of $9,436, and repayment of government loan of $1,235.

~~Net~~Our current liabilities exceed current assets at December 31, 2025, however, we incurred a net income of $896,197 during the year ended December 31, 2025. We may have difficulty meeting upcoming cash ~~provided~~requirements. As of December 31, 2025, our principal source of funds was loans from an officer by(also is the Company’s major shareholder). As of December 31, 2025, we believe we will need $1.2 million cash to continue our current business for the next 12 months. In addition to our continuous effort to improve our sales and net profits, we have explored and continue to explore other options to provide additional financing to fund future operations as well as other possible courses of action. Such actions may include, but are not limited to, securing lines of credit, sales of debt or equity securities (~~used~~which may result in dilution to existing shareholders), ~~financing~~loans ~~activities~~and ~~for~~cash ~~continuing~~advances from other third parties or banks, and other similar actions. There can be no assurance that we will be able to obtain additional funding (if needed), on acceptable terms or at all, through a sale of our common stock, loans from financial institutions, or other third parties, or any of the actions discussed above. If we cannot sustain profitable operations , and additional capital is unavailable, lack of liquidity could have a material adverse effect on our business viability, financial position, results of operations and cash flows.

~~Net~~Contractual cash used in financing activities for continuing operations was $613,171 for the year ended December 31, 2024, compared to net cash provided by financing activities for continuing operations of $1,179,137 in 2023. The net cash used in financing activities for the year ended December 31, 2024 mainly consisted of $602,500 loan repayment to one major shareholder (also the senior officer), decreased bank overdraft of $9,436, and payment of government loan of $1,235. The net cash provided by financing activities for the year ended December 31, 2023 consisted of proceeds of $1,170,891 from loan from one major shareholder (also the senior officer), and increased bank overdraft of $9,436, partly offset by repayment of SBA loan of $1,190. Obligations

~~Our~~Long-Term current liabilities exceed current assets at December 31, 2024, and we incurred substantial losses. We may have difficulty meeting upcoming cash requirements. As of December 31, 2024, our principal source of funds was loans from an officer (also is the Company’s major shareholder). As of December 31, 2024, we believe we will need $1.2 million cash to continue our current business for the next 12 months. In addition to our continuous effort to improve our sales and net profits, we have explored and continue to explore other options to provide additional financing to fund future operations as well as other possible courses of action. Such actions may include, but are not limited to, securing lines of credit, sales of debt or equity securities (which may result in dilution to existing shareholders), loans and cash advances from other third parties or banks, and other similar actions. There can be no assurance that we will be able to obtain additional funding (if needed), on acceptable terms or at all, through a sale of our common stock, loans from financial institutions, or other third parties, or any of the actions discussed above. If we cannot sustain profitable operations, and additional capital is unavailable, lack of liquidity could have a material adverse effect on our business viability, financial position, results of operations and cash flows. Debts

~~Contractual~~Government ~~Obligations~~ Loans

~~Long~~In May and June 2020, BEH, BEP and FDS received total of $215,600 from the Economic Injury Disaster Loan (“EIDL loan”) from the SBA after deducting $100 Uniform Commercial Code (“UCC”) handling charge and filing fee for each company. This is a low-~~Term~~interest federal ~~Debts~~disaster loan for working capital to small businesses and non-profit organizations of any size suffering substantial economic injury as a result of the Coronavirus (COVID-19), to help the businesses to meet financial obligations and operating expenses that could have been met had the disaster not occurred. This loan has interest of 3.75% and is not forgivable. The maturity of the loan is 30 years, installment payments including principal and interest of $288 monthly will begin 12 months from the date of the promissory note. On March 4, 2022, The FDS transferred its EIDL loan to BEC due to the dissolution of FDS. The SBA extended the deferment period to allow small businesses and not-for-profits that received EIDL funds do not have to begin payments on the loan until 30 months after the date of the note. Accordingly, the company began to make installment payments in the fourth quarter 2022.

~~Government loans~~ 10

InAs ~~May~~of ~~and~~December ~~June 2020~~31, ~~BEH~~2025, ~~BEP and FDS received total of $215,600 from~~ the ~~Economic~~future ~~Injury~~minimum ~~Disaster Loan (“~~EIDL loan”) payments from the ~~SBA after deducting $100 Uniform Commercial Code (“UCC”) handling charge and filing fee for each~~ company.’s ~~This~~continuing ~~is a low-interest federal disaster loan~~operations ~~for working capital~~ to ~~small~~be ~~businesses~~paid ~~and~~by ~~non-profit~~year ~~organizations~~are ~~of any size suffering substantial economic injury~~ as a result of the Coronavirus (COVID-19), to help the businesses to meet financial obligations and operating expenses that could have been met had the disaster not occurred. This loan has interest of 3.75% and is not forgivable. The maturity of the loan is 30 years, installment payments including principal and interest of $515 monthly will begin 12 months from the date of the promissory note. On March 4, 2022, The FDS transferred its EIDL loan to BEC due to the dissolution of FDS. The SBA extended the deferment period to allow small businesses and not-for-profits that received EIDL funds do not have to begin payments on the loan until 30 months after the date of the note. Accordingly, the company began to make installment payments in the fourth quarter 2022. follows:

As of December 31, 2024, the future minimum EIDL loan payments from the company’s continuing operations to be paid by year are as follows:

Year Ending	Amount

December 31, 2026	$	1,326
December 31, 2027		1,404
December 31, 2028		1,457
December 31, 2029		1,512
December 31, 2030		1,569
Thereafter		50,214
Total	$	57,482

Year Ending	Amount
	(unaudited)
December 31, 2025	$	1,357
December 31, 2026		1,408
December 31, 2027		1,462
December 31, 2028		1,518
December 31, 2029		1,576
Thereafter		49,160
Total	$	56,481

Commitments and Contingencies

9From time to time, the Company may be a party to various legal actions arising in the ordinary course of business. The Company accrues costs associated with these matters when they become probable and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred.

~~Off-Balance Sheet Arrangements~~ Contingencies

WeOn ~~have~~March ~~not~~9, ~~entered into~~2026, ~~any financial guarantees or other commitments to guarantee~~ the ~~obligations~~Company ofwas ~~any~~served ~~third~~with ~~parties.~~a Wesummons ~~have not entered into any derivative contracts that are indexed to our shares~~ and ~~classified~~complaint asfiled ~~shareholder’s~~by ~~equity~~Stason orIndustrial ~~that~~Corporation ~~are~~(the ~~not reflected in our consolidated financial statements~~“Plaintiff”). ~~Furthermore,~~The ~~we do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves~~complaint asalleges ~~credit,~~breach ~~liquidity~~of orcontract ~~market risk support to such entity. We do not have any variable interest~~ in ~~any~~connection ~~unconsolidated~~with ~~entity~~the ~~that~~Company’s ~~provides financing,~~early ~~liquidity,~~vacation ~~market~~of ~~risk~~the orIrvine ~~credit~~facility ~~support to us or engages in leasing, hedging or research~~ and ~~development~~seeks ~~services~~damages ~~with~~of usapproximately $1.5 million.

~~Item~~As 7Aof December 31, 2025, the Company had accrued approximately $1.5 ~~Quantitative~~million related to this matter under lease liabilities. Management has evaluated the claim and ~~Qualitative~~determined ~~Disclosures~~that ~~about~~a ~~Market~~loss ~~Risk~~is probable. While the Company intends to participate in the legal process, management believes the liability recorded as of December 31, 2025 representing the most likely outcome of this matter. Management does not believe it is reasonably possible that a loss materially in excess of the amount accrued will be incurred.

AsThe complaint also asserts an additional cause of action alleging breach of a ~~“smaller~~Statement ~~reporting~~of ~~company~~Work (“SOW”). asThe Plaintiff alleges that the Company ~~defined~~failed byto ~~Item~~perform 10certain laboratory and pharmaceutical processing services and seeks recovery of ~~Regulation~~alleged ~~S-K,~~unreturned ~~the~~service ~~Company~~payments as iswell ~~not~~as ~~required~~alleged tolost ~~provide~~revenues ~~this~~associated ~~information~~with a third-party agreement.

~~Item~~The 8Company is currently evaluating these allegations. ~~Financial~~The ~~Statements~~ultimate outcome of this claim is inherently uncertain, and ~~Supplementary~~management ~~Data~~is presently unable to predict whether the Company will prevail. The Company intends to defend its position and may also engage in settlement discussions; however, the litigation remains in its early stages. As of December 31, 2025, management concluded that a loss related to the SOW claim was neither probable nor reasonably estimable; accordingly, no accrual has been recorded for this matter.

~~Please see the financial statements beginning on page F-1 located in this annual report on Form 10-K and incorporated herein by reference.~~11

~~Item~~Off-Balance Sheet ~~9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.~~Arrangements

~~There~~We ~~are~~have not ~~and~~entered into any financial guarantees or other commitments to guarantee the obligations of any third parties. We have not ~~been~~entered into any ~~changes~~derivative contracts that are indexed to our shares and classified as shareholder’s equity or that are not reflected in our consolidated financial statements. Furthermore, we do not have any retained or ~~disagreements~~contingent ~~between~~interest ~~the~~in ~~Company~~assets ~~and~~transferred ~~its~~to ~~accountants~~an onunconsolidated entity that serves as credit, liquidity or market risk support to such entity. We do not have any ~~matter~~variable ofinterest ~~accounting~~in ~~principles~~any unconsolidated entity that provides financing, ~~practices~~liquidity, market risk or ~~financial~~credit ~~statement~~support ~~disclosure~~to us or engages in leasing, hedging or research and development services with us.

Item 9A7A. ~~Controls~~ Quantitative and ~~Procedures~~Qualitative Disclosures about Market Risk.

~~The~~As ~~Company’s~~a ~~Chief Executive, Yin Yan,~~“smaller ~~and~~reporting ~~Chief~~company” ~~Financial~~as ~~Officer,~~defined ~~William~~by ~~Sluss,~~Item ~~are~~10 ~~responsible~~of ~~for~~Regulation ~~establishing~~S-K, ~~and~~the ~~maintaining~~Company ~~disclosure~~is ~~controls~~not ~~and~~required ~~procedures~~to ~~for~~provide ~~the Company~~this information.

~~Evaluation~~Item of8. ~~Disclosure~~Financial Statements ~~Controls~~ and ~~Procedures~~Supplementary Data.

~~For~~Please ~~purposes~~see ~~of this Item 9A,~~ the ~~term disclosure~~financial ~~controls~~statements ~~and~~beginning ~~procedures means~~on ~~controls~~page ~~and~~F-1 ~~other~~located ~~procedures of the Company (i) that are designed to ensure that information required to be disclosed by the Company~~ in ~~the~~this ~~reports~~annual ~~that~~report iton ~~files~~Form or10-K ~~submits under the Securities Exchange Act of 1934, as amended (15 U.S.C. 78a et seq.~~ and ~~hereinafter~~incorporated ~~the~~herein “Exchange Act”) is recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the SEC, and (ii) include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosurereference.

OnItem ~~December 31, 2024, Ms~~9. ~~Yan and Mr. Sluss reviewed~~Changes ~~the effectiveness of our disclosure controls and procedures (as defined~~ in ~~Rules 13a-15(e)~~ and ~~15d-15(e)~~Disagreements ofwith ~~the~~Accountants ~~Exchange~~on ~~Act)~~Accounting ~~as of the end of the period covered by this report~~ and ~~has~~Financial concluded that the Company’s disclosure controls and procedures are not effective to ensure that material information relating to the Company is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the SECDisclosure. ~~Ms. Yan and Mr. Sluss are working to develop and implement controls and procedures.~~

10There are not and have not been any changes in or disagreements between the Company and its accountants on any matter of accounting principles, practices, or financial statement disclosure.

~~Report~~Item of9A. ~~Management on Internal Control over~~Controls ~~Financial~~and ~~Reporting~~Procedures.

~~Our~~The ~~management is responsible for establishing~~Company’s ~~and~~Chief ~~maintaining~~Executive, ~~adequate~~Yin ~~internal control over financial reporting (“ICFR”)~~Yan, ~~as defined in Exchange Act Rule 13a-15. Our ICFR is designed to provide reasonable assurance to our management~~ and ~~BOD~~Chief ~~regarding~~Financial the preparation and fair presentation of published financial statements. Management conducted an assessment of our ICFR based on the framework and criteria established by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control-Integrated Framework (2013). Based on the assessmentOfficer, ~~management~~ ~~concluded~~William ~~that~~Sluss, asare ofresponsible ~~December~~for ~~31,~~establishing ~~2024,~~and ~~our~~maintaining ~~ICFR~~disclosure ~~were not effective at the reasonable assurance level based on those criteria.~~controls ~~Management~~and isprocedures ~~working~~for ~~to implement ICFR standards within~~ the Company.

~~Our~~Evaluation ~~independent public accountant has not conducted an audit~~ of ~~our controls and procedures regarding ICFR and therefore expresses no opinion with regards to the effectiveness or implementation~~ ofDisclosure ~~our~~Controls ~~controls~~ and ~~procedures with regards to ICFR.~~Procedures

~~Changes~~For purposes of this Item 9A, the term disclosure controls and procedures means controls and other procedures of the Company (i) that are designed to ensure that information required to be disclosed by the Company in ~~Internal~~the ~~Controls~~reports ~~over~~that ~~Financial~~it files or submits under the Securities Exchange ~~Reporting~~Act of 1934, as amended (15 U.S.C. 78a et seq. and hereinafter the “Exchange Act”) is recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the SEC, and (ii) include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

~~There~~On ~~were~~December no31, ~~changes~~2025, Ms. inYan ~~our~~and ~~ICFR~~Mr. ~~identified~~Sluss ~~in connection~~reviewed ~~with~~the ~~our~~effectiveness ~~evaluation~~ of ~~these~~our disclosure controls and procedures (as ofdefined ~~the~~in ~~end~~Rules 13a-15(e) and 15d-15(e) of the ~~fiscal~~Exchange ~~year,~~Act) ~~December~~as ~~31,~~of ~~2024,~~the asend of the period covered by this report ~~that~~and has concluded that the Company’s disclosure controls ~~materially~~and ~~affected,~~procedures orare isnot ~~reasonably~~effective ~~likely~~to ensure that material information relating to ~~materially~~the ~~affect~~Company is recorded, ~~our~~processed, ~~ICFR~~summarized, and reported within the time periods specified in the rules and forms of the SEC. Ms. Yan and Mr. Sluss are working to develop and implement controls and procedures.

~~Inherent Limitations on Effectiveness of Controls~~ 12

~~The~~Report Company’s management does not expect that its disclosure controls or its ICFR will prevent or detect all error and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. The design of ~~a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative~~Management to their costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision making can be faulty and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or management override of the controls. The design of any system of controls is based in part on ~~certain~~Internal ~~assumptions about~~Control ~~the~~over ~~likelihood~~Financial of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of controls effectiveness to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.Reporting

~~Item~~Our 9Bmanagement is responsible for establishing and maintaining adequate internal control over financial reporting (“ICFR”), as defined in Exchange Act Rule 13a-15. ~~Other~~Our ~~Information~~ICFR is designed to provide reasonable assurance to our management and BOD regarding the preparation and fair presentation of published financial statements. Management conducted an assessment of our ICFR based on the framework and criteria established by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control-Integrated Framework (2013). Based on the assessment, management concluded that, as of December 31, 2025, our ICFR were not effective at the reasonable assurance level based on those criteria. Management is working to implement ICFR standards within the Company.

~~Not~~Our ~~applicable~~independent public accountant has not conducted an audit of our controls and procedures regarding ICFR and therefore expresses no opinion with regards to the effectiveness or implementation of our controls and procedures with regards to ICFR.

~~Item~~Changes ~~9C.~~in ~~Disclosure~~Internal Controls ~~Regarding~~over ~~Foreign~~Financial ~~that Jurisdiction that Prevent Inspections~~Reporting

~~Not~~There ~~applicable~~were no changes in our ICFR identified in connection with our evaluation of these controls as of the end of the fiscal year, December 31, 2025, as covered by this report that has materially affected, or is reasonably likely to materially affect, our ICFR.

11Inherent Limitations on Effectiveness of Controls

~~PART~~The ~~III~~Company’s management does not expect that its disclosure controls or its ICFR will prevent or detect all error and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision making can be faulty and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or management override of the controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of controls effectiveness to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

Item 109B. ~~Directors,~~Other ~~Executive Officers and Corporate Governance~~Information.

~~Pursuant~~Not ~~to Item 401 of Regulation S-K, the names and ages of the directors and executive officers and directors of the Company, and their positions with the Company, are detailed in the table below~~applicable.

Name	Age	Position	Familial Relationships
Yin Yan	49	Chief Executive Officer and Chairman of the Board of Directors	None
William Sluss	70	Chief Financial Officer and Director	None
Dr. Siyavash Fooladian	53	Director	None

Item 9C. Disclosure Regarding Foreign that Jurisdiction that Prevent Inspections

~~Yin~~Not ~~Yan, Chief Executive Officer and Chairman of the Board of Directors~~applicable.

Ms. Yan serves as the Company’s Chief Executive Officer, Chief Financial Officer, and Chairman of the Board of Directors. She began her career in 2002 at Intel Corp., a semiconductor designer and manufacturing company as automation project manager. From 2002 to 2004, Ms. Yan managed manufacturing automation and software as well as database development in computer infrastructure applications. From 2004 to present, she has been president of H&Y International, LLC, a real estate investment and brokerage company. Ms. Yan spends 20 hours per week on the affairs of H&Y International, LLC.13

~~William Sluss, Chief Financial~~PART ~~Officer and Director~~III

~~Mr. Sluss has~~Item ~~served as a financial executive for both private and publicly traded companies over the last thirty years~~10. ~~Most recently~~Directors, ~~he has served as director and Chief~~ Financial Officer for Black Bird Biotech, Inc. located in Flower Mound, Texas. Prior to joining Black Bird Biotech, Inc., Mr. Sluss was the Chief Financial Officer and Secretary for EFT Holdings, Inc., a manufacturer and distributor of beauty and nutritional products headquartered in Los Angeles California. Prior to relocating to Los Angeles, California in 2010, Mr. Sluss served as the Chief Financial Officer for AccuForce Staffing Services in Kingsport, Tennessee. Prior to this role, Mr. Sluss was the Chief Financial Officer and Treasurer for Studsvik, Inc., a nuclear services company based in Erwin, Tennessee. In addition to serving as a Financial Executive, ~~Mr. Sluss has worked~~Officers ~~as an attorney at Ecoff Campain Tilles & Kay, LLP in Beverly Hills, California where he oversaw corporate~~ and ~~civil~~Corporate ~~litigation.~~Governance

HePursuant isto aItem ~~licensed~~401 of ~~Certified~~Regulation ~~Public~~S-K, ~~Accountant~~the names and ~~received~~ ~~his~~ages ~~Bachelor~~ of ~~Science~~the ~~degree~~directors inand ~~accounting~~executive ~~from~~officers ~~the~~and ~~University~~directors of ~~Virginia’s~~the ~~College~~Company, atand ~~Wise~~their inpositions ~~1990. Mr. Sluss received~~with ~~his~~the ~~Juris~~Company, ~~Doctorate~~are ~~degree~~detailed ~~from Irvine University College of Law~~ in ~~2020. Mr. Sluss is a licensed attorney and member of~~ the ~~California~~ ~~Bar~~table below.

Name	Age	Position	Familial Relationships
Yin Yan	51	Chief Executive Officer and Chair of the Board of Directors	None
William Sluss	71	Chief Financial Officer and Director	None
Dr. Siyavash Fooladian	54	Director	None

~~Dr.~~Yin ~~Siyavash Fooladian~~Yan, ~~Director~~Chief Executive Officer and Chairman of the Board of Directors

~~Siyavash~~Ms. ~~Fooladian,~~Yan ~~MD,~~serves ~~MPH~~as the isCompany’s aChief ~~board-certified Cardiac~~Executive ~~Anesthesiologist~~Officer, ~~Ironman~~Chief ~~triathlete~~Financial Officer, and aChairman ~~passionate~~of ~~advocate~~the ~~for~~Board aof ~~holistic,~~Directors. ~~integrative~~She ~~approach~~began toher ~~health~~career ~~and~~in 2002 ~~wellness.~~at ~~With over~~Intel ~~ten~~Corp., ~~years~~a ofsemiconductor ~~clinical~~designer ~~experience~~and ~~caring~~manufacturing ~~for~~company ~~patients~~as ~~with~~automation anproject ~~array~~manager. ofFrom ~~medical~~2002 ~~ailments~~to 2004, DrMs. ~~Fooladian~~Yan ~~understands~~managed manufacturing ~~the~~automation ~~need~~and ~~for~~software ~~an integrative~~as ~~approach~~well toas ~~health.~~database Hedevelopment ~~believes~~in ~~that~~computer ~~optimal~~infrastructure ~~health~~applications. ~~can~~From be2004 ~~achieved~~to ~~and~~present, she ~~maintained~~has bybeen ~~holistic~~president ~~understanding~~ of aH&Y ~~patient’s mind~~International, ~~body~~LLC, ~~and~~a ~~spirit~~real ~~and~~estate ~~thereby,~~investment ~~merging~~and ~~the~~brokerage ~~best~~company. ofMs. ~~Eastern~~Yan ~~and~~spends ~~Western~~20 ~~modalities~~hours toper ~~treat~~week on the ~~root~~affairs ~~cause~~ of ~~disease~~H&Y International, LLC.

~~Dr.~~William ~~Fooladian has seen firsthand how opioid addiction and the opioid crisis have affected the well-being of his patients. He has also witnessed complications~~Sluss, ~~in both young and elderly patients,~~ ~~such~~Chief asFinancial ~~reversible~~Officer and irreversible kidney failure, gastrointestinal bleeding, and liver dysfunction from pharmaceutical alternatives to opioids—NSAIDS (ibuprofen, Motrin, Alleve, etc.) and Tylenol. An expert in alleviating his patients’ pain during and after surgery, Dr. Sia leveraged his medical knowledge and passion for creating impact to support integrative wellness. Dr. Fooladian maintains a daily practice of meditation and mindfulness, alongside nutraceutical supplementation and cold therapy in order to promote peak performance in his active lifestyle.Director

DrMr. Sluss has served ~~Fooladian~~as ~~holds~~ a BAfinancial inexecutive ~~history~~for both private and ~~education from~~publicly ~~UCLA~~traded companies over the last thirty years. HeMost ~~received~~recently, ~~his~~he MDhas served as director and ~~MPH~~Chief Financial Officer for Black Bird Biotech, Inc. located in ~~health~~Flower ~~management~~Mound, ~~from~~Texas. ~~The~~Prior ~~George~~to ~~Washington~~joining ~~University~~Black ~~School~~Bird ofBiotech, Inc., ~~Medicine~~Mr. Sluss was the Chief Financial Officer and ~~Health~~Secretary ~~Sciences~~for EFT Holdings, Inc. He, ~~completed~~a ~~his~~manufacturer ~~residency~~and distributor of beauty and ~~fellowship~~nutritional ~~training~~products atheadquartered ~~UCLA~~in ~~Medical~~Los ~~Center~~Angeles California. Prior to relocating to Los Angeles, ~~where~~California hein ~~served~~2010, Mr. Sluss served as the Chief ~~Resident~~Financial Officer for AccuForce Staffing Services in Kingsport, Tennessee. HePrior ~~currently~~to ~~resides~~this ~~and~~role, Mr. Sluss was the ~~practices~~Chief inFinancial ~~Orange~~Officer ~~County~~and Treasurer for Studsvik, ~~California~~Inc., ~~and~~a ~~has~~nuclear ~~done~~services socompany ~~for~~based ~~the~~in ~~past~~Erwin, 10Tennessee. ~~years~~In addition to serving as a Financial Executive, Mr. ~~The~~Sluss has ~~Company~~worked ~~believes~~as ~~Dr.~~an ~~Fooladian’s~~attorney ~~experience in~~at ~~the~~Ecoff ~~medical~~Campain ~~field~~Tilles ~~will~~& ~~greatly~~Kay, ~~benefit~~LLP ~~the~~in ~~Company~~Beverly asHills, itCalifornia where ~~expands~~he isoversaw ~~business~~corporate ~~model~~and civil litigation.

~~Tuan~~He ~~Tran,~~is VPa licensed Certified Public Accountant and received his Bachelor of ~~Operations~~Science degree in accounting from the University of Virginia’s College at Wise in 1990. Mr. Sluss received his Juris Doctorate degree from Irvine University College of Law in 2020. Mr. Sluss is a licensed attorney and member of the California Bar.

MrDr. ~~Tuan Tran has over 20 years of experience~~Siyavash ~~in quality and operations working in the Nutrition~~Fooladian, Dietary Supplements and OTC industries. Mr. Tran current responsibilities includes but are not limited Production, Warehouse & Distribution, Quality, Customer Service, R&D, Procurement, Human Resources, and Safety.Director

~~Mr.~~Siyavash ~~Tran~~Fooladian, MD, ~~has~~MPH ~~extensive~~is ~~knowledge~~a inboard-certified ~~FDA~~Cardiac ~~regulations~~Anesthesiologist, ~~GMPs,~~ ~~food~~Ironman ~~safety~~triathlete, ~~auditing,~~and ~~quality~~a ~~system,~~passionate ~~HACCP,~~advocate ~~Process~~for ~~Analytical~~a ~~Technology~~holistic, ~~CAPA,~~integrative approach to health and ~~Lean~~wellness. ~~Manufacturing~~With over ten years of clinical experience caring for patients with an array of medical ailments, Dr. MrFooladian understands the need for an integrative approach to health. ~~Tran~~He ~~also~~believes ~~specializes~~that optimal health can be achieved and maintained by holistic inunderstanding ~~crisis~~of ~~management,~~a ~~regulatory~~patient’s ~~compliance~~mind, ~~quality~~body, ~~systems~~and ~~implementation~~spirit and thereby, merging the best of Eastern and ~~supplier~~Western ~~qualification~~modalities to treat the root cause of disease.

Mr. Tran received his Bachelors of Science Degree in Public Health from Southern Connecticut State University. He holds certifications in Pharmaceutical Engineering, Six Sigma Green Belt, Food Safety, Technical Writing and HACCP. Mr. Tran is a senior member with the American Society for Quality.14

13Dr. Fooladian has seen firsthand how opioid addiction and the opioid crisis have affected the well-being of his patients. He has also witnessed complications, in both young and elderly patients, such as reversible and irreversible kidney failure, gastrointestinal bleeding, and liver dysfunction from pharmaceutical alternatives to opioids—NSAIDS (ibuprofen, Motrin, Alleve, etc.) and Tylenol. An expert in alleviating his patients’ pain during and after surgery, Dr. Sia leveraged his medical knowledge and passion for creating impact to support integrative wellness. Dr. Fooladian maintains a daily practice of meditation and mindfulness, alongside nutraceutical supplementation and cold therapy in order to promote peak performance in his active lifestyle.

BDr. ~~Significant~~Fooladian ~~Employees~~holds a BA in history and education from UCLA. He received his MD and MPH in health management from The George Washington University School of Medicine and Health Sciences. He completed his residency and fellowship training at UCLA Medical Center, where he served as Chief Resident. He currently resides and practices in Orange County, California, and has done so for the past 10 years. The Company believes Dr. Fooladian’s experience in the medical field will greatly benefit the Company as it expands is business model.

~~None~~Tuan Tran, VP of Operations

CMr. ~~Family~~Tuan ~~Relationships~~Tran has over 20 years of experience in quality and operations working in the Nutrition, Dietary Supplements and OTC industries. Mr. Tran current responsibilities includes but are not limited Production, Warehouse & Distribution, Quality, Customer Service, R&D, Procurement, Human Resources, and Safety.

~~None~~Mr. Tran has extensive knowledge in FDA regulations, GMPs, food safety, auditing, quality system, HACCP, Process Analytical Technology, CAPA, and Lean Manufacturing. Mr. Tran also specializes in crisis management, regulatory compliance, quality systems implementation, and supplier qualification.

DMr. ~~Involvement~~Tran received his Bachelors of Science Degree in ~~Certain~~Public ~~Legal~~Health ~~Proceedings~~from Southern Connecticut State University. He holds certifications in Pharmaceutical Engineering, Six Sigma Green Belt, Food Safety, Technical Writing and HACCP. Mr. Tran is a senior member with the American Society for Quality.

~~Except~~B. ~~as otherwise disclosed, no officer, director,~~Significant ~~or persons nominated for such positions, promoter or significant employee has been involved in the last ten years in any of the following:~~Employees.

● Any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time; ● Any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);None

●C. ~~Being~~Family subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities; and ● Being found by a court of competent jurisdiction (in a civil action), the Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacatedRelationships.

~~Audit Committee~~None.

~~The Company has no separate audit committees~~D. ~~The~~ ~~Company has no qualified financial expert at this time because it has not been able to hire a qualified candidate. Further, the Company~~Involvement ~~believes~~in ~~that~~Certain itLegal ~~has inadequate financial resources at this time to hire such an expert~~Proceedings. ~~The Company intends to continue to search for a qualified individual for hire.~~

~~Code~~Except as otherwise disclosed, no officer, director, or persons nominated for such positions, promoter or significant employee has been involved in the last ten years in any of ~~Ethics~~the following:

We● doAny ~~not~~bankruptcy ~~currently~~petition ~~have~~filed aby ~~code~~or against any business of ~~ethics.~~which ~~The company~~such isperson inwas ~~the~~a ~~early~~general ~~stages~~partner or executive officer either at the time of ~~development~~the ~~and~~bankruptcy ~~its~~or ~~chief~~within ~~executive~~two ~~officer,~~years ~~Ms.~~prior ~~Yan,~~to ~~has~~that ~~not~~time; ~~yet~~● ~~developed~~Any conviction in a ~~code~~criminal ofproceeding ~~ethics.~~or ~~The~~being ~~Company intends~~subject onto ~~developing~~a ~~one~~pending ascriminal ~~the~~proceeding ~~Company’s~~(excluding ~~business~~traffic ~~expands.~~violations and other minor offenses);

~~Nominating Committee~~15

We● ~~have~~Being subject to any order, judgment, or decree, not ~~adopted~~subsequently reversed, suspended or vacated, of any ~~procedures~~court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities; and ● Being found by ~~which~~a ~~security holders~~court ~~may~~of ~~recommend~~competent ~~nominees~~jurisdiction (in a civil action), the Commission or the Commodity Futures Trading Commission to ~~our~~have ~~Board~~violated ofa ~~Directors~~federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated.

~~Item~~Audit ~~11. Executive Compensation.~~Committee

The Company ~~does~~has ~~not have employment contracts~~no ~~with~~separate ~~its~~audit ~~officers or directors~~committees. ~~All employees of the Company are at-will employees.~~ The Company’s ~~principal~~has ~~executive~~no ~~and~~qualified financial ~~officer,~~ ~~Yin~~expert ~~Yan~~at ~~and~~this ~~William~~time ~~Sluss,~~because ~~respectively,~~it dohas not ~~have~~been ~~written~~able ~~employment~~to ~~agreements~~hire ~~and do not earn~~ a ~~salary. Compensation for~~qualified Mscandidate. ~~Yan~~Further, ~~and~~the ~~Mr.~~Company ~~Sluss,~~believes ~~and~~that ~~the~~it ~~Company’s~~has ~~highest~~inadequate ~~paid~~financial ~~employee~~resources ~~are~~at ~~detailed~~this intime ~~the~~to ~~Summary~~hire ~~Compensation~~such ~~table~~an ~~below~~expert. ~~Wenwen~~The ~~He earns~~Company ~~$37,400~~intends ~~annually~~to ascontinue ~~the~~to ~~Company’s~~search ~~accounting~~for ~~assistant~~a qualified individual for hire.

14Code of Ethics

~~Summary~~We do not currently ~~Compensation~~have ~~Table~~a code of ethics. The company is in the early stages of development and its chief executive officer, Ms. Yan, has not yet developed a code of ethics. The Company intends on developing one as the Company’s business expands.

Name and Principal Position	Year	Salary		Bonus		Stock Awards		Option Awards		Nonequity Incentive Plan Compensation		Change in pension value and nonqualified deferred compensation earnings		All Other Compensation		Total
Yin Yan (PEO)	2024	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
William Sluss (PFO)	2024	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Wenwen He	2024	$	37,400.00	$	-	$	-	$	-	$	-	$	-	$	-	$	34,700.00

Nominating Committee

~~Outstanding~~We ~~Equity~~have ~~Awards~~not atadopted any ~~Fiscal~~procedures ~~Year-End~~by which security holders may recommend nominees to our Board of Directors.

~~Option~~Item ~~awards~~11. Stock awards Name Number of securities underlying unexercised options (#) exercisable Number of securities underlying unexercised options (#) unexercisable Equity incentive plan awards: Number of securities underlying unexercised unearned options (#) Option exercise price ($) Option expiration date Number of shares or units of stock that have not vested (#) Market value of shares of units of stock that have not vested ($) Equity incentive plan awards: Number of unearned shares, units or other rights that have not vested (#) Equity incentive plan awards: Market or payout value of unearned shares, units or other rights that have not vested ($) - - - - - - - - - -Executive Compensation.

The Company does not have employment contracts with its officers or directors. All employees of the Company are at-will employees. The Company’s principal executive and financial officer, Yin Yan and William Sluss, respectively, do not have ~~any~~written ~~outstanding~~employment ~~equity~~agreements ~~awards~~and do not earn a salary. Compensation for ~~its~~Ms. ~~employees~~Yan and Mr. Sluss, and the Company’s highest paid employee are detailed in the Summary Compensation table below. Wenwen He earns $37,400 annually as the Company’s accounting assistant.

~~Director~~Summary Compensation Table

The following table provides information regarding the compensation of our named directors for the fiscal year ending on December 31, 2024.

Name and Principal Position	Year		Salary		Bonus		Stock Awards		Option Awards		Nonequity Incentive Plan Compensation		Change in pension value and nonqualified deferred compensation earnings		All Other Compensation		Total
Yin Yan (PEO)		2025	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
William Sluss (PFO)		2025	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Name and Principal Position Salary Bonus Stock Awards Option Awards Non-Equity Incentive Plan Compensation Nonqualified Deferred Compensation Earnings All Other Compensation Total Yin Yan (Chief Executive Officer and Director) $ — $ — $ — $ — $ — $ — $ — $ — William Sluss (Chief Financial Officer and Director) $ — $ — $ — $ — $ — $ — $ — $ — Dr. Siyavash Fooladian $ — $ — $ — $ — $ — $ — $ — $ — Tuan Tran $ — $ — $ — $ — $ — $ — $ — $ —16

~~The~~Outstanding ~~Company’s directors serve in unpaid~~Equity ~~positions~~Awards ~~and~~at doFiscal ~~not receive an annual salary, bonus, or other compensation for their role as board members.~~Year-End

15Option awards Stock awards Name Number of securities underlying unexercised options (#) exercisable Number of securities underlying unexercised options (#) unexercisable Equity incentive plan awards: Number of securities underlying unexercised unearned options (#) Option exercise price ($) Option expiration date Number of shares or units of stock that have not vested (#) Market value of shares of units of stock that have not vested ($) Equity incentive plan awards: Number of unearned shares, units or other rights that have not vested (#) Equity incentive plan awards: Market or payout value of unearned shares, units or other rights that have not vested ($) - - - - - - - - - -

~~Item~~The ~~12.~~Company ~~Security~~does ~~Ownership~~not ofhave ~~Certain~~any ~~Beneficial~~outstanding equity ~~Owners~~awards ~~and~~for ~~Management~~its ~~and Related Stockholder Matters~~employees.

~~The following table sets forth the ownership of~~Director our common stock by each person known by us to be the beneficial owner of more than 5% of our outstanding common stock as a group as of December 31, 2024. There are no pending arrangements that may cause a change in control. The information presented below has been presented in accordance with the rules of the SEC and is not necessarily indicative of ownership for any other purpose.Compensation

A person is deemed to be a “beneficial owner” of a security if that person has or shares the power to vote or direct the voting of the security or the power to dispose or direct the disposition of the security. A person is deemed to own beneficially any security as to which such person has the right to acquire sole or shared voting or investment power within 60 days through the conversion or exercise of any convertible security, warrant, option or other right. More than one person may be deemed to be a beneficial owner of the same securities. The ~~percentage~~following ~~of beneficial ownership~~table byprovides ~~any~~information ~~person~~regarding ~~as of a particular date is calculated by dividing~~ the ~~number~~compensation of ~~shares~~our ~~beneficially~~named ~~owned~~directors byfor ~~such person, which includes~~ the ~~number~~fiscal ofyear ~~shares~~ending ason toDecember ~~which such person has the right to acquire voting or investment power within 60 days~~31, ~~by the sum of the number of shares outstanding as of such date plus the number of shares as to which such person has the right to acquire voting or investment power within 60 days~~2025. ~~Consequently, the denominator used for calculating such percentage may be different for each beneficial owner.~~

Title of Class	Name and Address of Beneficial Owner	Amount and Nature of Beneficial Ownership	Percent of Class
Common Stock	Yin Yan(1) – 31921 Apuesto Way, Trabuco Canyon CA, 92679	13,396,000 shares— directly owned		35.2	%
Common Stock	Jian Yang(2) – 2012 Paseo Del Mar, Palos Verdes Estates, CA 90274	21,000,000 shares— directly owned		55.3	%

Name and Principal Position

Salary

Bonus

Stock
Awards

Option
Awards

Non-Equity
Incentive
Plan
Compensation

Nonqualified
Deferred
Compensation
Earnings

All Other
Compensation

Total

Yin Yan (Chief Executive Officer and Director)

—

William Sluss (Chief Financial Officer and Director)

—

Dr. Siyavash Fooladian

—

Tuan Tran

—

~~(1)~~The ~~Yin Yan is the~~ Company’s directors ~~Chief~~serve ~~Executive~~in ~~Officer~~unpaid positions and ~~Chairman~~do ofnot ~~the~~receive ~~Board~~an ofannual ~~Directors~~salary, bonus, or other compensation for their role as board members.

~~(2) Jain Yang is the Company’s controlling shareholder and former director~~17

~~This table is based upon information derived from~~Item ~~our stock records~~12. WeSecurity ~~believe~~Ownership ~~that each~~ of ~~the~~Certain ~~shareholders~~Beneficial ~~named~~Owners inand ~~this~~Management ~~table has sole or shared voting~~ and ~~investment~~Related ~~power~~Stockholder ~~with respect to the shares indicated as beneficially owned~~Matters.

~~Securities~~The ~~Authorized~~following ~~for~~table sets ~~Issuance~~forth ~~Under~~the ~~Equity~~ownership ~~Compensation~~of ~~Plans~~our common stock by each person known by us to be the beneficial owner of more than 5% of our outstanding common stock as a group as of December 31, 2025. There are no pending arrangements that may cause a change in control. The information presented below has been presented in accordance with the rules of the SEC and is not necessarily indicative of ownership for any other purpose.

A person is deemed to be a “beneficial owner” of a security if that person has or shares the power to vote or direct the voting of the security or the power to dispose or direct the disposition of the security. A person is deemed to own beneficially any security as to which such person has the right to acquire sole or shared voting or investment power within 60 days through the conversion or exercise of any convertible security, warrant, option or other right. More than one person may be deemed to be a beneficial owner of the same securities. The ~~following~~percentage ~~chart~~of beneficial ownership by any person as of a particular date is ~~provided~~calculated ~~pursuant~~by dividing the number of shares beneficially owned by such person, which includes the number of shares as to ~~Item~~which such person has the right to acquire voting or investment power ~~201(d)~~within 60 days, by the sum of ~~Regulation~~the ~~S-K:~~number of shares outstanding as of such date plus the number of shares as to which such person has the right to acquire voting or investment power within 60 days. Consequently, the denominator used for calculating such percentage may be different for each beneficial owner.

Plan Category

Number of securities to be issued upon exercise of outstanding options, warrants, and rights

Weighted- average exercise price of outstanding options, warrants and rights

Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))

Title of Class

Name and Address of Beneficial Owner

Amount and Nature of Beneficial Ownership

Percent of Class

Equity compensation plans approved by security holders

N/A

Common Stock

Yin Yan(1) – 31921 Apuesto Way, Trabuco Canyon CA, 92679

13,396,000 shares— directly owned

35.2

Equity compensation plans not approved by security holders

N/A

Common Stock

Jian Yang(2) – 2012 Paseo Del Mar, Palos Verdes Estates, CA 90274

21,000,000 shares— directly owned

55.3

TOTAL

16(1) Yin Yan is the Company’s Chief Executive Officer and Chairman of the Board of Directors

~~Item~~(2) ~~13.~~Jain ~~Certain~~Yang ~~Relationships~~is the Company’s controlling shareholder and ~~Related~~former ~~Transactions.~~director

~~Except~~This astable ~~otherwise~~is ~~indicated~~based upon ~~herein,~~information ~~there~~derived ~~have been~~from noour ~~related~~stock ~~party~~records. ~~transactions,~~We orbelieve ~~any~~that ~~other~~each ~~transactions~~of the shareholders named in this table has sole or ~~relationships~~shared ~~required~~voting and toinvestment bepower ~~disclosed~~with ~~pursuant~~respect to ~~Item~~the ~~404~~shares ofindicated ~~Regulation S-K~~as beneficially owned.

~~Item~~Securities ~~14.~~Authorized ~~Principal~~for ~~Accounting~~Issuance ~~Fees~~Under Equity ~~and~~Compensation ~~Services.~~Plans

~~Simon~~The &following ~~Edward, LLP (“SE LLP”)is~~chart ~~the~~is ~~Company’s~~provided ~~independent~~pursuant ~~registered~~to ~~public~~Item ~~accounting~~201(d) ~~firm.~~of ~~Below~~Regulation ~~are aggregate fees billed by SE LLP for professional services rendered for the year ended December 31, 2024.~~S-K:

Audit Fees

Plan Category

Number of
securities
to be
issued upon
exercise of
outstanding
options,
warrants,
and rights

Weighted-
average
exercise
price of
outstanding
options,
warrants
and rights

Number of
securities
remaining
available
for future
issuance
under equity
compensation
plans
(excluding
securities
reflected in
column (a))

Equity compensation plans approved by security holders

N/A

Equity compensation plans not approved by security holders

N/A

TOTAL

~~The fees for the audit services billed and to be billed by SE LLP for the year ended December 31, 2024 amounted to $5,000. SE LLP has charged the Company $20,000 for the fiscal year 2024 audit.~~18

~~Audit-~~Item 13. Certain Relationships and Related ~~Fees~~Transactions.

~~None~~Except as otherwise indicated herein, there have been no related party transactions, or any other transactions or relationships required to be disclosed pursuant to Item 404 of Regulation S-K.

~~Tax~~Item 14. Principal Accounting Fees and Services.

~~There~~Simon ~~were~~& noEdward, LLP (“SE LLP”) is the Company’s independent registered public accounting firm. Below are aggregate fees billed by SE LLP for professional services rendered for ~~tax~~the ~~compliance,~~year ~~tax~~ended ~~advice~~December 31, ~~and tax planning for 2023~~2025.

~~All~~Audit ~~Other~~ Fees

~~There~~The ~~were~~fees nofor ~~fees~~the audit services billed and to be billed by SE LLP for ~~other~~the ~~products~~year ~~and~~ended ~~services~~December 31, 2025 amounted to $29,500. SE LLP has charged the Company $12,000 for ~~2024~~the fiscal year 2025 audit.

Audit ~~Committee’s Pre~~-~~Approval~~Related ~~Process~~Fees

~~The Board of Directors acts as the audit committee of the Company, and accordingly, all services are approved by all the members of the Board of Directors~~None.

17Tax Fees

~~Item~~There ~~15.~~were ~~Exhibits~~no fees billed by SE LLP for professional services for tax compliance, ~~Financial~~tax ~~Statement~~advice, ~~Schedules~~and tax planning for 2025.

~~(a)~~All ~~Exhibits:~~Other Fees

Exhibit

Exhibit Description

Filed herewith

Form

Period ending

Exhibit

Filing date

3.1

Certificate of Incorporation

S-1

3.1

7/26/19

3.2

By-Laws

S-1

3.2

7/26/19

3.3

Certificate of Amendment

S-1

3.3

7/26/19

4.1

Specimen Stock Certificate

S-1

4.1

7/26/19

4.2

Description of Securities

31.1

Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2

Certification of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1

Certification pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2

Certification pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

101.INS

Inline XBRL Instance Document.

101.SCH

Inline XBRL Taxonomy Extension Schema Document.

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

There were no fees billed by SE LLP for other products and services for 2025.

~~(b)~~Audit ~~The~~Committee’s ~~following documents are filed as part of the report:~~Pre-Approval Process

1.The ~~Financial~~Board ~~Statements:~~of ~~Balance~~Directors acts ~~Sheet,~~as ~~Statement of~~the ~~Operations,~~audit ~~Statement~~committee of ~~Stockholder’s~~the ~~Equity~~Company, ~~Statement~~and ofaccordingly, ~~Cash~~all ~~Flows,~~services ~~and~~are ~~Notes~~approved toby ~~Financial~~all ~~Statements~~the members of the Board of Directors.

1819

~~SIGNATURES~~PART IV

InItem ~~accordance~~15. ~~with the requirements of the Exchange Act~~Exhibits, Financial ~~the~~Statement ~~Registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized~~Schedules.

~~Bio~~(a) ~~Essence Corp.~~Exhibits:

Dated: March 28, 2025

Exhibit

Exhibit Description

Filed herewith

Form

Period ending

Exhibit

Filing date

By:

/s/ Yin Yan

3.1

Certificate of Incorporation

S-1

3.1

7/26/19

Yin Yan, Chief Executive Officer

3.2

By-Laws

S-1

3.2

7/26/19

(Principal Executive Officer)

3.3

Certificate of Amendment

S-1

3.3

7/26/19

4.1

Specimen Stock Certificate

S-1

4.1

7/26/19

4.2

Description of Securities

31.1

Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2

Certification of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1

Certification pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2

Certification pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

101.INS

Inline XBRL Instance Document.

101.SCH

Inline XBRL Taxonomy Extension Schema Document.

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

Dated: March 28, 2025
	By:	/s/ William Sluss
		William Sluss, Chief Financial Officer
		(Principal Financial Officer)

(b) The following documents are filed as part of the report:

In1. ~~accordance~~Financial ~~with Section 13 or 15(d) of the~~Statements: ~~Securities~~Balance ~~Exchange~~Sheet, ~~Act~~Statement of ~~1934~~Operations, ~~this~~Statement ~~report~~of ~~has~~Stockholder’s ~~been~~Equity, ~~signed~~Statement ~~below by the following persons on behalf~~ of ~~the~~Cash ~~registrant~~Flows, and inNotes ~~the~~to ~~capacities and~~Financial ~~on the dates indicated~~Statements.

NAME	POSITION	DATE
/s/ Yin Yan	Chief Executive Officer	March 28, 2025
Yin Yan	(Principal Executive Officer), Chief Accounting Officer (Controller or Principal Accounting Officer), and Director
/s/ William Sluss	Chief Financial Officer	March 28, 2025
William Sluss	(Principal Executive Officer) and Director
/s/ Siyavash Fooladian	Director	March 28, 2025
Dr. Siyavash Fooladian

19SIGNATURES

~~17506~~In ~~Colima~~accordance ~~Road,~~with the ~~Ste~~requirements ~~101,~~of ~~City~~the ofExchange ~~Industry~~Act, CAthe ~~91748~~Registrant ~~Tel:~~caused +1this ~~(626)~~report ~~581-0818~~to ~~Fax:~~be +1signed ~~(626)~~on ~~581-0809~~its behalf by the undersigned, thereunto duly authorized.

~~Report~~Bio ofEssence ~~Independent Registered Public Accounting Firm~~Corp.

Shareholders and Board of Directors

Dated: March 27, 2026

	By:	/s/ Yin Yan
		Yin Yan, Chief Executive Officer
		(Principal Executive Officer)

Bio Essence Corporation

Dated: March 27, 2026

	By:	/s/ William Sluss
		William Sluss, Chief Financial Officer
		(Principal Financial Officer)

~~Opinion~~In onaccordance with Section 13 or 15(d) of the ~~financial~~Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the ~~statements~~registrant and in the capacities and on the dates indicated.

We have audited the accompanying balance sheet of Bio Essence Corporation (the “Company”) as of December 31, 2024, the related statements of income, stockholders’ equity, and cash flows for the year then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

NAME	POSITION	DATE

/s/ Yin Yan	Chief Executive Officer	March 27, 2026
Yin Yan	(Principal Executive Officer), Chief Accounting Officer (Controller or Principal Accounting Officer), and Director

/s/ William Sluss	Chief Financial Officer	March 27, 2026
William Sluss	(Principal Executive Officer) and Director

/s/ Siyavash Fooladian	Director	March 27, 2026
Dr. Siyavash Fooladian

~~Going Concern Uncertainty~~21

~~The~~17506 ~~accompanying~~Colima ~~financial~~Road, ~~statements~~Ste ~~have been prepared assuming that the Company will continue as a going concern. As described in Note 2 to the financial statements~~101, ~~the~~City ~~Company has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. Management’s evaluation~~ of ~~the~~Industry, ~~events and~~CA ~~conditions~~91748 ~~and~~Tel: ~~management’s~~+1 ~~plans~~(626) ~~regarding~~581-0818 ~~these~~Fax: ~~matters~~+1 ~~are~~(626) ~~also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.~~581-0809

~~Basis~~Report of ~~for~~Independent ~~Opinion~~Registered Public Accounting Firm

~~These financial statements are the responsibility~~Shareholders ofand the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board ~~(United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations~~ of ~~the Securities and Exchange Commission and the PCAOB.~~Directors

~~We conducted our audits in accordance with the~~Bio ~~standards~~Essence of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.Corporation

~~Our audits included performing procedures to assess~~Opinion ~~the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining,~~ on ~~a test basis, evidence regarding~~ the ~~amounts and disclosures in the~~ financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

~~Critical~~We have ~~Audit~~audited ~~Matter~~the accompanying balance sheet of Bio Essence Corporation (the “Company”) as of December 31, 2025 and 2024, the related statements of income, stockholders’ equity, and cash flows for the year then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

~~Critical audit matters are matters arising from~~Going ~~the~~Concern current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involve our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.Uncertainty

~~PCAOB~~The accompanying ~~ID: 2485~~financial statements have been prepared assuming that the Company will continue as a going concern. As described in Note 2 to the financial statements, the Company has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. Management’s evaluation of the events and conditions and management’s plans regarding these matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

~~We have served as the Company’s auditor since~~Basis ~~2024.~~for Opinion

~~Rowland~~These financial ~~Heights,~~statements CAare the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

~~March~~We conducted 28our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, ~~2025~~whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

~~F-1~~Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

~~REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING~~Critical ~~FIRM~~Audit Matter

ToCritical audit matters are matters arising from the ~~Board~~current period audit of ~~Directors~~the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involve ~~Stockholders~~our ofespecially ~~Bio~~challenging, ~~Essence~~subjective, ~~Corp~~or complex judgments. We determined that there are no critical audit matters.

~~Opinion~~PCAOB ~~on the Financial Statements~~ID: 2485

We have ~~audited~~served ~~the accompanying consolidated balance sheets of Bio Essence Corp. and subsidiaries (the Company)~~ as ~~of December 31, 2023 and 2022, and~~ the ~~related consolidated statements~~ of income, comprehensive income, stockholders’ equity (deficit), and cash flows for each of the years in the two-year period ended December 31, 2023, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company's asauditor ofsince December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America2024.

~~Going~~Rowland Heights, ~~Concern Matter~~CA

~~The accompanying financial statements have been~~March ~~prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements~~27, the Company has incurred recurring net losses with significant accumulated deficit, and negative cash flows from operations. These conditions raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.2026

~~Basis for Opinion~~F-1

~~These financial statements are the responsibility~~BIO ofESSENCE the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.CORPORATION

~~We conducted our audits in accordance with the~~BALANCE standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.SHEETS

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

	As of December 31, 2025			As of December 31, 2024

ASSETS

Current Assets
Cash	$	-		$	1,371
Accounts receivable		23,454			5,124
Advances to vendors		10,000			69,959
Prepaid expenses and other receivables		3,750			202,238
Security deposits		-			2,000
Loan to shareholder		385,173			-
Total Current Assets		422,377			280,692

Non-current Assets
Intangible assets, net		97			332
Total Non-current Assets		97			332

Total Assets	$	422,474		$	281,024

LIABILITIES AND STOCKHOLDERS’ DEFICIT

Current Liabilities
Bank overdraft	$	1,531		$	-
Accounts payable		47,879			17,738
Customer deposit		848,601			187,115
Accrued liabilities and other payables		35,854			338,136
Operating lease liabilities - current		1,504,020			1,069,871
Government loans payable - current		1,326			3,663
Loan from shareholders		-			1,186,177
Total Current Liabilities		2,439,211			2,802,700

Non-current Liabilities
Operating lease liabilities - non-current		-			392,290
Government loans payable		56,156			55,124
Total Non-current Liabilities		56,156			447,414

Total Liabilities		2,495,367			3,250,114

Commitment and contingencies

Stockholders’ Deficit
Preferred stock $0.0001 par value; authorized shares 10,000,000, no shares issued and outstanding		-			-
Common stock $0.0001 par value; authorized shares 100,000,000; issued and outstanding shares 38,009,000		3,801			3,801
Paid in capital		7,476,379			7,476,379
Accumulated deficit		(9,553,073	)		(10,449,270	)
Total Stockholders’ Deficit		(2,072,893	)		(2,969,090	)

Total Liabilities and Stockholders’ Deficit	$	422,474		$	281,024

~~Critical~~The ~~Audit~~accompanying ~~Matters~~notes are an integral part of these financial statements

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (F-2~~) involved our especially challenging, subjective, or complex judgments. We determined that there were no critical audit matters.~~

~~/S/~~BIO ESSENCE ~~Keith K Zhen CPA Keith K Zhen CPA~~CORPORATION

~~PCAOB~~STATEMENTS OF ~~ID 6673~~OPERATIONS

Brooklyn, NY

	Years ended December 31,
	2025			2024

Revenues
Sales of goods	$	-		$	37,415
Revenue from OEM services		1,896,350			282,752
Shipping and delivery Income		1,216			3,773
Total revenues		1,897,566			323,940

Cost of revenues
Sales of goods		-			20,513
Cost of OEM services		469,153			86,350
Total cost of revenues		469,153			106,863

Gross profit		1,428,413			217,077

Operating expenses
Selling		30,593			-
General and administrative		497,809			676,515

Total operating expenses		528,402			676,515

Income (loss) from operations		900,011			(459,438	)

Other income (expenses)
Impairment loss of ROU asset		-			(1,050,940	)
Interest expense		(2,186	)		(2,153	)
Other income		-			701
Other expenses		(828	)		(53,091	)

Other expenses, net		(3,014	)		(1,105,483	)

Income (loss) before income tax		896,997			(1,564,921	)

Income tax expense		800			800

Net income (loss) from continuing operations		896,197			(1,565,721	)

Loss from discontinued operations		-			(120,827	)
Gain from disposal of discontinued operations		-			377,752
Net income (loss)	$	896,197		$	(1,308,796	)

Basic and diluted weighted average shares outstanding		38,009,000			38,009,000

Basic and diluted net loss per share	$	0.02		$	(0.03	)

~~April~~The ~~15,~~accompanying ~~2024 (March 28,~~notes ~~2025~~are asan tointegral ~~the~~part ~~effects~~ of ~~the~~these ~~discontinued~~financial ~~operations as described in Note 3)~~statements

~~We have served as the Company’s auditor since 2020. In 2024, we became the predecessor auditor~~F-3

~~F-2~~BIO ESSENCE CORPORATION

~~BIO~~STATEMENTS ~~ESSENCE~~OF ~~CORPORATION~~CHANGES IN STOCKHOLDERS’ DEFICIT

~~BALANCE~~FOR ~~SHEETS~~THE YEARS ENDED DECEMBER 31, 2025 AND 2024

As of December 31, 2024

	Common Stock				Paid-in		Accumulated			Total Stockholders’ Equity
	Shares		Amount		Capital		Deficit			(Deficit)

Balance at January 1, 2024		38,009,000	$	3,801	$	7,476,379	$	(9,140,474	)	$	(1,660,294	)

Net loss for the period		-		-		-		(1,308,796	)		(1,308,796	)

Balance at December 31, 2024		38,009,000		3,801		7,476,379		(10,449,270	)		(2,969,090	)

Net income for the period		-		-		-		896,197			896,197

Balance at December 31, 2025		38,009,000	$	3,801	$	7,476,379	$	(9,553,073	)	$	(2,072,893	)

	As of December 31, 2024			As of December 31, 2023
ASSETS
Current Assets
Cash and equivalents	$	1,371		$	-
Accounts receivable		5,124			-
Receivable due from disposal of discontinued operations		-			300,000	*
Prepayment to vendors		69,959			-
Prepaid expenses and other receivables		202,238			-
Security deposits		2,000			-
Total Current Assets		280,692			300,000
Non-current Assets
Security deposits		-			52,545
Operating lease right-of-use assets, net		-			1,427,918
Property and equipment, net		-			3,688
Intangible assets, net		332			567
Total Non-current Assets		332			1,484,718
Assets classified as held for sale		-			973,862
Total Assets	$	281,024		$	2,758,580
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities
Bank overdraft	$	-		$	9,436
Accounts payable		17,738			12,453
Customer deposit		187,115			-
Accrued liabilities and other payables		338,136			137,700	*
Accrued interest on government loans		2,306			2,377
Operating lease liabilities - current		1,069,871			495,217
Government loans payable - current portion		1,357			4,596
Loan from shareholders		1,186,177			1,788,677
Total Current Liabilities		2,802,700			2,450,456
Non-current Liabilities
Operating lease liabilities - non-current		392,290			938,409
Government loans payable		55,124			53,120
Total Non-current Liabilities		447,414			991,529
Liabilities classified as held for sale		-			976,889
Total Liabilities		3,250,114			4,418,874
Commitment and contingencies
Stockholders’ Equity
Preferred stock $0.0001 par value; authorized shares 10,000,000, no shares issued and outstanding as of December 31, 2024 and 2023		-			-
Common stock $0.0001 par value; authorized shares 100,000,000; issued and outstanding shares 38,009,000 as of December 31, 2024 and 2023		3,801			3,801
Paid in capital		7,476,379			7,476,379
Accumulated deficit		(10,449,270	)		(9,140,474	)
Total Stockholders’ Deficit		(2,969,090	)		(1,660,294	)
Total Liabilities and Stockholders’ Equity	$	281,024		$	2,758,580

The accompanying notes are an integral part of these financial statements

* included a reclassification of $96,803 from other payables to receivable due from disposal of discontinued operations as of December 31, 2023.F-4

~~F-3~~BIO ESSENCE CORPORATION

~~BIO~~STATEMENTS OF ~~ESSENCE~~CASH ~~CORPORATION~~FLOWS

STATEMENTS OF OPERATIONS

	Years Ended December 31,
	2025			2024

CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) from continuing operations		896,197		$	(1,308,796	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization expense		235			911
Loss on disposal of fixed assets		-			3,012
Gain from disposal of discontinued operations		-			(377,752	)
Operating lease expense		41,858			452,612
Impairment loss of ROU asset		-			1,050,940
Changes in assets/liabilities:
Accounts receivable		(18,329	)		(5,124	)
Receivable from sale of BEP		-			700,000
Prepaid expenses and other receivables		193,544			(197,294	)
Prepayment and deposits		66,903			(24,358	)
Accounts payable		30,141			5,286
Customer deposit		661,485			187,115
Tax payable		(244	)		-
Accrued interest		-			(72	)
Accrued liability and other payables		(302,037	)		200,437
Payment of lease liability		-			(47,100	)
Net cash provided by operating activities from continuing operations		1,569,753			639,817
Net cash used in operating activities from discontinued operations		-			(15,952	)

Net cash provided by operating activities		1,569,753			623,865

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets		-			-
Cash loss due to disposal of subsidiary		-			(114	)
Net cash used in investing activities from continue operations		-			(114	)
Net cash used in investing activities from discontinued operations		-			-

Net cash used in investing activities		-			(114	)

CASH FLOWS FROM FINANCING ACTIVITIES
Change in bank overdraft		1,531			(9,436	)
Loan from shareholder		667,623			-
Repayment to shareholder		(1,853,800	)		(602,500	)
Loan to shareholder		(485,173	)		-
Repayment from shareholder		100,000			-
Repayment of SBA loan		(1,305	)		(1,235	)
Net cash used in financing activities from continuing operations		(1,571,124	)		(613,171	)
Net cash used in financing activities from discontinued operations		-			(9,323	)

Net cash used in financing activities		(1,571,124	)		(622,494	)

NET INCREASE IN CASH		(1,371	)		1,257

CASH AT THE BEGINNING OF PERIOD		1,371			114

CASH AT THE END OF PERIOD	$	-		$	1,371

Supplemental Cash flow data:
Cash paid for interest	$	2,186		$	6,307
Cash paid for income taxes	$	800		$	800

	Years Ended December 31,
	2024			2023
Revenues
Sales of goods, net	$	37,415		$	-
Manufacture service revenue		282,752			-
Shipping and Delivery Income		3,773			-
Total revenues		323,940			-
Cost of Goods Sold
Sales of goods		20,513			-
Cost of Goods manufacture		86,350			-
Total cost of revenues		106,863			-
Gross Profit		217,077			-
Operating Expenses
Selling		-			-
General and administrative		676,515			345,590
Total operating Expenses		676,515			345,590
Loss from Operations		(459,438	)		(345,590	)
Other income (expenses)
Impairment loss of ROU asset		(1,050,940	)		-
Interest expense		(2,153	)		(2,197	)
Other income		701			17,841
Other expense		(53,091	)		(73,058	)
Other expenses, net		(1,105,483	)		(57,414	)
Loss before income tax		(1,564,921	)		(403,004	)
Income tax expense		800			1,600
Net loss from continuing operations		(1,565,721	)		(404,604	)
Loss from discontinued operations		(120,827	)		(634,726	)
Gain from disposal of discontinued operations		377,752			67,451
Net loss	$	(1,308,796	)	$	(971,879	)
Basic weighted average shares outstanding		38,009,000			33,954,205
Basic and diluted net loss per share		(0.03	)		(0.03	)

The accompanying notes are an integral part of these financial statements

F-45

BIO ESSENCE CORPORATION

~~CONSOLIDATED~~NOTES TO ~~STATEMENTS~~FINANCIAL ~~OF CHANGES IN STOCKHOLDERS’ EQUITY~~STATEMENTS

~~FOR THE YEARS ENDED~~ DECEMBER 31, ~~2024~~2025 AND ~~2023~~2024

	Common Stock				Paid-in		Accumulated			Total Stockholders’ Equity
	Shares		Amount		Capital		Deficit			(Deficit)
Balance at January 1, 2023		33,009,000	$	3,301	$	4,926,879	$	(8,168,595	)	$	(3,238,415	)
Shares issued for shareholder’s loan settlement		5,000,000		500		2,549,500		-			2,550,000
Net loss for the year		-		-		-		(971,879	)		(971,879	)
Balance at December 31, 2023		38,009,000		3,801		7,476,379		(9,140,474	)		(1,660,294	)
Net loss for the year		-		-		-		(1,308,796	)		(1,308,796	)
Balance at December 31, 2024		38,009,000	$	3,801	$	7,476,379	$	(10,449,270	)	$	(2,969,090	)

1. ORGANIZATION AND DESCRIPTION OF BUSINESS

~~F-5~~Bio Essence Corporation (“the Company” or “Bio Essence”) was incorporated in 2000 in the state of California. Bio Essence is mainly engaged in manufacturing and distributing health supplement products.

~~BIO~~In ~~ESSENCE~~January ~~CORPORATION~~2017, Bio Essence incorporated two subsidiaries in the state of California: Bio Essence Pharmaceutical Inc. (“BEP”) and Bio Essence Herbal Essentials, Inc. (“BEH”), Bio Essence transferred its manufacturing operation to BEP and transferred its distributing operation to BEH. On December 12, 2023, the Company entered into an agreement with Newways Inc. to sell the 100% equity ownership of BEP for $300,000. On March 28, 2024, the Company entered into an agreement with Health Up Inc. to sell the 100% equity ownership of BEH for $400,000.

~~STATEMENTS~~Bio OFEssence ~~CASH~~incorporated ~~FLOWS~~a wholly owned subsidiary McBE Pharma Inc. (“McBE”) in the state of California, McBE will be engaged in developing, manufacturing and sales of prescription medicine. McBE has not engaged in any operations since its inception. On April 15, 2024, the Company dissolved McBE.

	Years Ended December 31,
	2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(1,308,796	)	$	(971,879	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization expense		911			4,793
Loss on note conversion		-			50,000
Loss on disposal of fixed assets		3,012			7,165
Gain from disposal of discontinued operations		(377,752	)		(67,451	)
Operating lease expense		452,612			255,954
Impairment loss of ROU asset		1,050,940			-
Changes in assets/liabilities:
Accounts receivable		(5,124	)		-
Other receivables		(197,294	)		3,675
Receivable from sales of BEP and BEH		700,000			-
Prepayment and deposits		(24,358	)		(52,545	)
Accounts payable		5,286			(10,077	)
Customer deposit		187,115			-
Accrued interest		(72	)		(68	)
Accrued liability and other payables		200,437			(12,625	)
Payment of lease liability		(47,100	)		(188,401	)
Net cash provided by (used in) operating activities from continuing operations		639,817			(981,459	)
Net cash used in operating activities from discontinued operations		(15,952	)		(44,214	)
Net cash provided by (used in) operating activities		623,865			(1,025,673	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets		-			(3,614	)
Cash loss due to disposal of subsidiary		(114	)		-
Net cash used in investing activities from continue operations		(114	)		(3,614	)
Net cash used in investing activities from discontinued operations		-			(87,870	)
Net cash used in investing activities		(114	)		(91,484	)
CASH FLOWS FROM FINANCING ACTIVITIES
Bank overdraft		(9,436	)		9,436
Loan from / repayment to shareholders		(602,500	)		1,170,891
Repayment of SBA loan		(1,235	)		(1,190	)
Net cash (used in) provided by financing activities from continuing operations		(613,171	)		1,179,137
Net cash used in financing activities from discontinued operations		(9,323	)		(68,128	)
Net cash (used in) provided by financing activities		(622,494	)		1,111,009
NET INCREASE (DECREASE) IN CASH		1,257			(6,148	)
CASH AT THE BEGINNING OF YEAR		114			6,262
CASH AT THE END OF YEAR	$	1,371		$	114
ANALYSIS OF BALANCES OF CASH AND CASH EQUIVALENTS:
Cash and equivalents	$	1,371		$	-
Cash and equivalents included in discontinued operations	$	-		$	114
Supplemental Cash flow data:
Cash paid for interest	$	6,307		$	23,809
Cash paid for income taxes	$	800		$	3,200
Supplemental disclosures of non-cash financing activities:
Conversion of loan from shareholders to common shares	$	-		$	2,500,000
Recognition of ROU asset and operating lease liability	$	-		$	1,589,863
Termination of ROU asset and operating lease liability	$	-		$	935,073

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

~~F-6~~Basis of Presentation and Consolidation

~~BIO~~The ~~ESSENCE~~accompanying ~~CORPORATION~~consolidated financial statements (“CFS”) are prepared in conformity with U.S. Generally Accepted Accounting Principles (“US GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”). The functional currency of Bio Essence is U.S. dollars (“$’’). The accompanying financial statements are presented in U.S. dollars (“$”). The consolidated financial statements for the years ended December 31, 2025 and 2024 and as of December 31, 2025 and 2024, include the financial statements of the Company and its subsidiaries, BEH (up to disposal date), and McBE (up to dissolution date). All significant inter-company transactions and balances were eliminated in consolidation.

~~NOTES~~Going ~~TO FINANCIAL STATEMENTS~~Concern

~~DECEMBER31~~The Company incurred net income of $896,197 and net loss of $1,565,721 from continuing operations for the years ended December 31, 2025 and 2024, ~~AND~~respectively. The Company also had an accumulated deficit of $9,553,073 as of December 31, 2025. These conditions raise substantial ~~2023~~doubt about the Company’s ability to continue as a going concern. The Company disposed non-profitable subsidiaries BEH and BEP, and is actively seeking other business opportunities including expanding OEM business and looking for potential acquisition targets. Management also intends to raise funds by way of a private or public offering, or by obtaining loans from banks or others. While the Company believes in the viability of its strategy to generate sufficient revenue and in its ability to raise additional funds on reasonable terms and conditions, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds by way of a public or private offering. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

~~1. ORGANIZATION AND DESCRIPTION OF BUSINESS~~F-6

~~Bio~~Use ~~Essence Corporation (“the Company” or “Bio Essence”) was incorporated in 2000 in the state~~ of California. Fusion Diet Systems (“FDS”) was incorporated in 2010 in the state of Utah. Bio Essence and FDS have been under common control since 2016. Bio Essence and FDS are mainly engaged in manufacturing and distributing health supplement products. On March 1, 2017, the 100% shareholder of FDS transferred all of her ownership in FDS to Bio Essence. On December 7, 2021, the Company dissolved FDS.Estimates

In ~~January~~preparing financial ~~2017,~~statements ~~Bio Essence incorporated two subsidiaries~~ in ~~the~~conformity ~~state~~with ofUS ~~California:~~GAAP, ~~Bio~~management ~~Essence~~makes ~~Pharmaceutical~~estimates ~~Inc. (“BEP”)~~ and ~~Bio Essence~~assumptions ~~Herbal~~that ~~Essentials,~~affect ~~Inc.~~the ~~(“BEH”),~~reported ~~Bio~~amounts ~~Essence~~of ~~transferred~~assets ~~its manufacturing operation to BEP~~ and ~~transferred its distributing~~liabilities ~~operation~~and todisclosures ~~BEH.~~of Oncontingent ~~December~~assets ~~12,~~and ~~2023,~~liabilities ~~the~~at ~~Company entered into an agreement with Newways Inc. to sell~~ the ~~100%~~ ~~equity~~dates ~~ownership~~ of ~~BEP~~the ~~for~~financial ~~$300~~statements,~~000.~~ Onas ~~March~~well ~~28,~~as ~~2024,~~ the ~~Company~~reported ~~entered~~amounts ~~into~~of anrevenues and ~~agreement~~expenses ~~with~~during ~~Health Up Inc. to sell~~ the ~~100%~~ ~~equity~~reporting ~~ownership of BEH for $400,000~~period.

~~Bio~~Significant ~~Essence~~estimates, ~~incorporated~~required aby ~~wholly~~management, ~~owned~~include ~~subsidiary McBE Pharma Inc. (“McBE”) in~~ the ~~state~~recoverability of ~~California~~long-lived assets, ~~McBE~~assumptions ~~will~~used bein ~~engaged~~the inaccounting ~~developing~~for leases, ~~manufacturing~~ and ~~sales~~the evaluation of ~~prescription medicine~~contingencies. ~~McBE~~Actual ~~has~~results ~~not~~could ~~engaged~~differ infrom ~~any~~those ~~operations since its inception~~estimates. ~~On April 15, 2024, the Company dissolved McBE.~~

~~2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES~~Leases

~~Basis~~The Company follows ASC 842 and determines if an arrangement is a lease or contains a lease at inception. Operating leases are included in operating lease right-of-use ~~Presentation~~(“ROU”) assets, and operating lease liabilities (current and non-current) in the Company’s consolidated ~~Consolidation~~balance sheets. Finance leases are included in property and equipment, and finance lease liabilities (current and non-current) in the Company’s consolidated balance sheets.

~~The~~ROU ~~accompanying~~assets represent ~~consolidated~~the ~~financial~~right ~~statements~~to ~~(“CFS”)~~use ~~are~~an ~~prepared~~underlying inasset ~~conformity~~for ~~with~~the ~~U.S.~~lease ~~Generally~~term ~~Accepted~~and ~~Accounting~~lease ~~Principles~~liabilities ~~(“US GAAP”) and~~represent ~~applicable~~the ~~rules~~obligation ~~and~~to ~~regulations~~make oflease payments arising from the ~~Securities~~lease. Operating lease ROU assets and ~~Exchange~~liabilities ~~Commission~~are ~~(“SEC”)~~recognized ~~regarding~~at ~~interim financial~~commencement ~~reporting.~~date ~~The~~based ~~functional~~on ~~currency~~the present value of ~~Bio~~lease ~~Essence~~payments over isthe Ulease term.S. ~~dollars~~As ~~(“$~~most of the Company’~~’).~~s ~~The~~leases ~~accompanying~~do ~~financial~~not ~~statements are~~provide ~~presented~~an inimplicit ~~U.S.~~rate, ~~dollars~~the ~~(“$”). The~~Company ~~consolidated~~generally ~~financial~~uses ~~statements~~the ~~for~~incremental borrowing rate based on the ~~year~~estimated ~~ended~~rate ~~December~~of ~~31,~~interest ~~2024,~~for ~~include the~~collateralized ~~financial~~borrowing ~~statements~~over a similar term of the ~~Company~~lease ~~and~~payments ~~its~~at ~~subsidiaries,~~commencement date. ~~BEH~~The ~~(up~~operating tolease ~~disposal~~ROU ~~date),~~asset also includes any lease payments made and ~~McBE~~excludes ~~(up~~lease incentives. The Company’s lease terms may include options to ~~dissolution~~extend ~~date).~~or ~~All~~terminate ~~significant~~the lease when it is reasonably certain that the Company will exercise that option. Lease ~~inter-company~~expense ~~transactions~~for ~~and~~lease ~~balances~~payments ~~were~~is ~~eliminated~~recognized inon ~~consolidation~~a straight-line basis over the lease term.

~~Reclassification~~The Company elected the package of practical expedients permitted under the transition guidance to combine the lease and non-lease components as a single lease component for operating leases associated with the Company’s office space lease, and to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term.

~~Certain~~ROU assets are reviewed ~~prior~~for ~~period~~impairment ~~accounts~~when ~~have~~indicators ~~been~~of ~~reclassified~~impairment inare ~~conformity~~present. ~~with~~ROU assets from operating and finance leases are subject to the ~~current~~impairment guidance ~~period’s~~in ~~presentation~~ASC 360, Property, Plant, and Equipment, as ROU assets are long-lived non-financial assets. ~~These~~The ~~reclassifications~~Company ~~had~~recognized no$1,050,940 impairment ~~impact~~loss onof ~~the~~ROU ~~reported~~assets ~~results~~during ofthe ~~operations~~year ~~and~~ended ~~cash~~December ~~flows~~31, 2024.

~~Going~~Cash ~~Concern~~and Cash Equivalents

~~The~~For ~~Company incurred~~financial ~~net loss of $1,308,796 and $971,879 for the years ended December 31, 2024 and 2023, respectively. The Company also~~statement ~~had an accumulated deficit of $10~~purposes,~~449,270 as~~ ~~of December 31, 2024. These conditions raise substantial doubt about~~ the Company~~’s ability~~ toconsiders ~~continue~~all ashighly aliquid ~~going~~investments ~~concern.~~with ~~The~~an ~~Company~~original ~~disposed~~maturity non-profitable subsidiaries BEH and BEP, and is actively seeking other business opportunities including expanding OEM business and looking for potential acquisition targets. Management also intends to raise funds by way of athree ~~private~~months or ~~public~~less ~~offering, or by obtaining loans from banks or others. While the Company believes in the viability of its strategy~~ to ~~generate sufficient revenue and in its ability to raise additional funds on reasonable terms and conditions, there can~~ be nocash ~~assurances to that effect~~equivalents. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds by way of a public or private offering. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

F-7

~~Use~~Credit ~~of Estimates~~Losses

InOn ~~preparing financial~~January1, ~~statements in conformity with US GAAP~~2023, the ~~management~~Company ~~makes~~adopted ~~estimates~~Accounting ~~and~~Standards ~~assumptions~~Update 2016-13 “Financial ~~that~~Instruments — Credit ~~affect~~Losses ~~the~~(Topic 326), Measurement ~~reported amounts~~ of ~~assets and~~Credit ~~liabilities~~Losses ~~and~~on ~~disclosures~~Financial ofInstruments,” ~~contingent~~which ~~assets~~replaces ~~and~~the ~~liabilities~~incurred atloss ~~the~~methodology ~~dates~~with ofan ~~the~~expected ~~financial~~loss ~~statements,~~methodology that asis ~~well~~referred to as the ~~reported amounts~~current ofexpected ~~revenues~~credit ~~and~~loss ~~expenses~~(“CECL”) ~~during the reporting period~~methodology.

~~Significant~~The Company’s ~~estimates,~~account ~~required~~receivables byand ~~management,~~other ~~include~~receivables in the ~~recoverability~~balance sheet are within the scope of ~~long~~ASC Topic 326. As the Company has limited customers and debtors, the Company uses the loss-~~lived~~rate method ~~assets~~to evaluate the expected credit losses on an individual basis. When establishing the loss rate, ~~allowance~~the ~~for~~Company ~~doubtful~~makes ~~accounts~~an assessment on various factors, including historical experience, credit-worthiness of customers and debtors, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from the ~~reserve~~customers and debtors. The Company also provides specific provisions for allowance when ~~obsolete~~facts and ~~slow-moving~~circumstances ~~inventories.~~indicate ~~Actual~~that ~~results~~the ~~could~~receivable ~~differ~~is ~~from~~unlikely ~~those~~to ~~estimates~~be collected.

~~Leases~~Expected credit losses are recorded as allowance for credit losses on the consolidated statements of operations. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. In the event the Company recovers amount that is previously reserved for, the Company will reduce the specific allowance for credit losses.

~~The~~Accounts Company follows ASC 842 and determines if an arrangement is a lease or contains a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, and operating lease liabilities (current and non-current) in the Company’s consolidated balance sheets. Finance leases are included in property and equipment, and finance lease liabilities (current and non-current) in the Company’s consolidated balance sheets.Receivable

~~ROU~~The ~~assets~~Company’s ~~represent~~policy ~~the~~is ~~right~~ to ~~use~~maintain an ~~underlying~~allowance ~~asset~~ for ~~the~~potential ~~lease~~credit ~~term~~losses ~~and~~on ~~lease~~accounts ~~liabilities represent the obligation to make lease payments arising from the lease~~receivable. ~~Operating~~Management ~~lease~~reviews ~~ROU assets and liabilities are recognized at commencement date based on~~ the ~~present~~composition ~~value~~ of ~~lease~~accounts ~~payments~~receivable ~~over~~and ~~the~~analyzes ~~lease~~historical ~~term.~~bad Asdebts, ~~most~~customer ofconcentrations, ~~the~~customer ~~Company’s~~credit ~~leases do not provide an implicit rate~~worthiness, ~~the~~current ~~Company~~economic ~~generally~~trends ~~uses~~and ~~the incremental~~changes ~~borrowing~~in ~~rate~~customer ~~based~~payment onpatterns ~~the~~to ~~estimated~~evaluate ~~rate~~the ofadequacy ~~interest for collateralized borrowing over a similar term~~ of ~~the~~these ~~lease payments at commencement date~~reserves. ~~The~~As ~~operating~~of ~~lease~~December ~~ROU~~31, ~~asset~~2025 ~~also includes any lease payments made~~ and ~~excludes~~2024, ~~lease~~there ~~incentives.~~was ~~The~~no ~~Company’s~~bad ~~lease~~debt ~~terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option~~allowance. ~~Lease expense for lease payments is recognized on a straight-line basis over the lease term.~~

~~The Company elected the package of practical expedients permitted under the transition guidance to combine the lease and non~~F-lease components as a single lease component for operating leases associated with the Company’s office space lease, and to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term.8

~~ROU~~Impairment ~~assets are reviewed for impairment when indicators~~ of ~~impairment are present. ROU assets from operating and finance leases are subject to the impairment guidance in ASC 360, Property, Plant, and Equipment, as ROU assets are long~~Long-~~lived~~Lived ~~non-financial assets. The Company recognized $1,050,940 and $nil impairment loss of ROU assets during the years ended December 31, 2024 and 2023, respectively.~~Assets

~~Cash~~Long-lived ~~and~~assets, which ~~Cash~~include ~~Equivalents~~intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

~~For~~Recoverability ~~financial~~of ~~statement~~long-lived ~~purposes,~~assets ~~the~~to ~~Company~~be ~~considers~~held ~~all~~and ~~highly~~used ~~liquid~~is ~~investments~~measured ~~with~~by ancomparing ~~original~~of ~~maturity~~the carrying amount of ~~three~~an ~~months~~asset orto ~~less~~the estimated undiscounted future cash flows expected to be generated by it. If the carrying amount of an asset exceeds its estimated undiscounted future cash ~~equivalents~~flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds its fair value (“FV”). FV is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Based on its review, the Company believes that, as of December 31, 2025 and 2024, there were no significant impairments of its long-lived assets except $1,050,940 impairment of ROU assets during 2024.

~~Credit~~Income ~~Losses~~Taxes

OnIncome ~~January1~~taxes are accounted for using an asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” ~~2023~~Under this method, income tax expense is recognized for the ~~Company~~amount ~~adopted~~of: ~~Accounting~~(i) ~~Standards~~taxes ~~Update 2016-13 “Financial~~payable ~~Instruments — Credit~~or ~~Losses~~refundable for the current period and (~~Topic 326~~ii), ~~Measurement~~deferred tax consequences of ~~Credit~~temporary ~~Losses~~differences onresulting ~~Financial~~from matters ~~Instruments,”~~that ~~which~~have ~~replaces~~been recognized in an entity’s financial statements or tax returns. Deferred tax assets also include the ~~incurred~~prior ~~loss~~years’ ~~methodology~~net ~~with~~operating anlosses ~~expected~~carried ~~loss~~forward. ~~methodology~~Deferred tax ~~that~~assets isand ~~referred~~liabilities are measured using enacted tax rates expected to asapply to taxable income in the ~~current~~years in which those temporary differences are expected ~~credit~~to ~~loss~~be ~~(“CECL”)~~recovered ~~methodology~~or settled. The ~~adoption~~effect on deferred tax assets and liabilities of a change in tax rates is recognized in the ~~credit~~results ~~loss~~of ~~accounting~~operations ~~standard~~in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred ~~has~~tax noassets ~~material~~reported ~~impact~~if based on the ~~Company’s~~weight ~~consolidated~~of ~~financial~~the ~~statements~~available aspositive ofand ~~January 1~~negative evidence, ~~2023~~it is more likely than not some portion or all of the deferred tax assets will not be realized.

The Company’s follows ~~account~~ASC ~~receivables~~Topic ~~and~~740, ~~other~~which ~~receivables~~prescribes ina ~~the~~more-likely-than-not ~~balance~~threshold ~~sheet~~for ~~are~~financial ~~within~~statement ~~the~~recognition ~~scope~~and measurement of ~~ASC~~a ~~Topic 326.~~tax ~~As the Company has limited~~position ~~customers~~taken ~~and~~or ~~debtors,~~expected ~~the Company uses the loss-rate method~~ to ~~evaluates~~be ~~the~~taken ~~expected~~in ~~credit~~a ~~losses~~tax ~~on an individual basis~~return. ~~When establishing~~ASC ~~the~~Topic ~~loss~~740 ~~rate,~~also ~~the~~provides ~~Company~~guidance ~~makes an assessment~~ on ~~various~~recognition ~~factors,~~of ~~including~~income ~~historical~~tax ~~experience,~~assets ~~credit-worthiness of customers~~ and ~~debtors~~liabilities, classification of current ~~economic conditions, reasonable~~ and ~~supportable~~deferred ~~forecasts~~income oftax ~~future~~assets ~~economic~~and ~~conditions~~liabilities, ~~and~~accounting ~~other~~for ~~factors that~~interest ~~may affect its ability to collect from the customers~~ and ~~debtors.~~penalties ~~The~~associated ~~Company~~with ~~also~~tax ~~provides~~positions, accounting ~~specific provisions~~ for ~~allowance~~income ~~when facts~~taxes ~~and~~in ~~circumstances~~interim ~~indicate~~periods, ~~that~~and ~~the~~income ~~receivable~~tax ~~is unlikely to be collected~~disclosures.

FUnder the provisions of ASC Topic 740, when tax returns are filed, it is likely that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-8likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in selling, general and administrative expenses in the statement of income.

~~Expected~~At December 31, 2025 ~~credit~~and ~~losses~~2024, ~~are~~the ~~recorded~~Company asdid ~~allowance~~not ~~for~~take ~~credit~~any ~~losses~~uncertain onpositions ~~the~~that ~~consolidated~~would ~~statements~~necessitate ofrecording ~~operations.~~a ~~After~~tax ~~all~~related ~~attempts~~liability. toThe ~~collect~~Company files a ~~receivable~~U.S. ~~have~~income ~~failed,~~tax ~~the~~return. ~~receivable~~With isfew ~~written~~exceptions, ~~off against~~ the ~~allowance~~Company’s U.S. Inincome ~~the~~tax ~~event~~return ~~the~~filed ~~Company~~for ~~recovers~~the ~~amount~~years ~~that~~ending ison ~~previously reserved~~December ~~for~~31, 2022 ~~the~~and ~~Company~~thereafter ~~will~~are ~~reduce~~subject ~~the~~to ~~specific~~examination ~~allowance~~by ~~for~~the ~~credit~~relevant ~~losses~~taxing authorities.

~~Accounts Receivable, Net~~F-9

The Company’s accounts ~~policy~~for isincome totaxes ~~maintain~~in aninterim ~~allowance~~periods ~~for~~in ~~potential~~accordance ~~credit~~with ~~losses~~FASB onASC ~~accounts~~740-270, ~~receivable~~“Interim Reporting.” ~~Management~~The ~~reviews~~Company ~~the~~has ~~composition of accounts~~determined ~~receivable~~an ~~and~~estimated ~~analyzes~~annual ~~historical~~effective ~~bad~~tax ~~debts,~~rate. ~~customer~~The ~~concentrations,~~rate ~~customer~~will ~~credit~~be ~~worthiness~~revised, ~~current~~if ~~economic~~necessary, ~~trends~~as ~~and~~of ~~changes in~~the ~~customer~~end ~~payment~~of ~~patterns~~each tosuccessive ~~evaluate~~interim period during the ~~adequacy~~Company’s offiscal ~~these~~year ~~reserves.~~to Asits ofbest ~~December~~current ~~31,~~estimate. ~~2024,~~The ~~there~~estimated ~~was~~annual noeffective ~~bad~~tax ~~debt~~rate ~~allowance.~~is ~~As of~~applied ~~December~~to ~~31,~~the ~~2023,~~year-to-date ordinary ~~the~~income ~~bad~~(or ~~debt~~loss) ~~allowance~~at ~~from~~the ~~discontinued~~end ~~operation~~of ~~(BEH)~~the ~~was~~interim ~~$2,252~~period.

~~Property~~Revenue ~~and Equipment. Net~~Recognition

~~Property and~~The ~~equipment~~Company ~~are~~recognizes revenues ~~stated~~following atthe ~~cost,~~five-step ~~less~~model ~~accumulated~~prescribed ~~depreciation,~~under ~~and~~ASC ~~impairment~~606: ~~losses,~~(i) ifidentify ~~any.~~contract(s) ~~Major~~with ~~repairs~~a ~~and~~customer; ~~betterments~~(ii) ~~that~~identify ~~significantly extend original useful lives or improve productivity are capitalized and depreciated over~~ the ~~period benefited. Maintenance and repairs~~performance ~~are~~obligations ~~expensed~~in asthe ~~incurred.~~contract; ~~When~~(iii) ~~property~~determine ~~and~~the ~~equipment~~transaction ~~are~~price; ~~retired~~(iv) orallocate ~~otherwise disposed of,~~ the ~~related~~transaction ~~cost~~price ~~and~~to ~~accumulated~~the ~~depreciation~~performance obligations ~~are~~in ~~removed from~~ the ~~respective~~contract; ~~accounts,~~ and ~~any~~(v) ~~gain~~recognize orrevenues ~~loss~~when is(or ~~included~~as) inwe ~~operations. Depreciation~~satisfy ~~of property and equipment is provided using~~ the ~~straight-line~~performance ~~method for substantially all assets as follows:~~obligation.

Leasehold improvements		7-10 years
Office furniture		5 years

Revenue is measured at the amount of consideration we expect to receive in exchange for the sale of our product, which occurs at a point in time, typically upon delivery to customers. The Company expenses incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that it would have recognized is one year or less or the amount is immaterial.

~~Impairment~~Revenues from manufacture or OEM services are recognized when the manufacture process is completed pursuant to the customers’ requirements and the manufactured goods are delivered to the customers. The Company currently outsources manufacture service after disposal of ~~Long-Lived~~BEP ~~Assets~~in December 2023.

~~Long-lived assets,~~Revenues ~~which~~from ~~include~~sales of ~~property~~goods ~~and~~are ~~equipment~~measured ~~and~~at ~~intangible~~net ~~assets,~~of ~~are~~reserves ~~reviewed~~established for ~~impairment~~applicable ~~whenever~~discounts ~~events~~and orallowances ~~changes~~that inare ~~circumstances indicate~~offered ~~that~~within contracts with the Company’s ~~carrying~~customers, ~~amount~~and ofare anrecognized ~~asset~~when ~~may~~the ~~not~~goods beare ~~recoverable~~delivered to customers.

~~Recoverability of~~Product ~~long-lived~~revenue ~~assets~~reserves, which toare beclassified ~~held~~as ~~and~~a ~~used~~reduction isin ~~measured~~product byrevenues, ~~comparing~~are ofgenerally ~~the~~characterized ~~carrying~~in ~~amount of an asset to~~ the ~~estimated~~following ~~undiscounted~~categories: ~~future cash flows expected to be generated by it. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows~~discounts, anreturns ~~impairment~~and ~~charge~~rebates. isThese ~~recognized~~reserves byare ~~the~~based ~~amount~~on byestimates ~~which the carrying amount~~ of the ~~asset~~amounts ~~exceeds~~earned ~~its fair value (“FV”). FV is generally determined using the asset’s expected future discounted cash flows~~ or ~~market~~to ~~value,~~be ifclaimed ~~readily determinable. Based~~ on ~~its review,~~ the ~~Company~~related ~~believes~~sales ~~that, as of December 31, 2024~~ and ~~2023,~~are ~~there~~classified ~~was~~as reductions ~~no significant impairments~~ of ~~its~~accounts ~~long-lived~~receivable ~~assets except~~as ~~$1,050,940~~the ~~impairment~~amount ofis ~~ROU~~payable ~~assets~~to ~~during~~the ~~2024~~Company’s customers.

~~Income~~The ~~Taxes~~Company’s return policy allows for the return of damaged or defective products and shipment errors. A notice of damage or wrong items should be made within five days from receiving the goods, and actual return of the products must be completed within 30 days from the date of receiving the goods. Delayed notification for damaged or wrong products will not be accepted for return or exchange. Custom formulas and capsules are not returnable. The amounts for return of products were immaterial for the years ended December 31, 2025 and 2024.

~~Income~~Cost ~~taxes are accounted for using an asset and liability method~~ of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current period and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets also include the prior years’ net operating losses carried forward. Deferred tax assets and liabilities are measured using enacted 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 a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized.Revenue

~~The~~Cost ~~Company follows ASC Topic 740, which prescribes a more-likely-than-not threshold for financial statement recognition and measurement~~ of ~~a tax~~manufacture ~~position~~service/OEM ~~taken~~consists orprimarily ~~expected to be taken in a tax return. ASC Topic 740 also provides guidance on recognition~~ of ~~income~~direct ~~tax~~labor ~~assets~~costs and ~~liabilities, classification~~related ofoverhead ~~current~~that ~~and~~are ~~deferred~~directly ~~income~~attributable ~~tax~~to ~~assets~~the ~~and~~manufacture ~~liabilities~~process. However, ~~accounting~~the ~~for~~Company ~~interest~~has ~~and~~been ~~penalties~~outsourcing ~~associated~~manufacture ~~with~~service ~~tax~~since ~~positions, accounting~~disposal ~~for~~of ~~income~~BEP ~~taxes~~ in ~~interim~~December ~~periods, and income tax disclosures~~2023.

FCost of goods sold (“COGS”) consists primarily of finished goods purchased from other manufacturers, material costs, labor costs and related overhead that are directly attributable to the production of the products. Write-9down of inventory to lower of cost or net realizable value is also recorded in COGS.

Under the provisions of ASC Topic 740, when tax returns are filed, it is likely that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the moreF-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in selling, general and administrative expenses in the statement of income.10

AtShipping ~~December 31, 2024~~ and ~~2023, the Company did not take any uncertain positions that would necessitate recording a tax related liability. The Company~~Handling files a U.S. income tax return. With few exceptions, the Company’s U.S. income tax return filed for the years ending on December 31, 2021 and thereafter are subject to examination by the relevant taxing authorities.Costs

~~The~~Shipping ~~Company~~and handling ~~accounts~~costs ~~for~~related ~~income~~to ~~taxes~~delivery inof ~~interim~~finished ~~periods~~goods inare ~~accordance~~included ~~with~~in ~~FASB~~selling ~~ASC 740-270, “Interim Reporting~~expenses.” ~~The~~During ~~Company~~the ~~has~~years ~~determined an~~ended ~~estimated~~December ~~annual~~31, ~~effective~~2025 ~~tax~~and ~~rate. The rate will be revised~~2024, ~~if necessary, as of the end of each successive interim period during~~shipping ~~the~~and ~~Company’s~~handling ~~fiscal~~costs ~~year~~from tocontinuing ~~its~~operations ~~best~~were $1,193 and ~~current~~$1,286, ~~estimate~~respectively. During ~~The~~year ~~estimated~~ended ~~annual~~December ~~effective~~31, ~~tax rate is applied to the year-to-date ordinary~~2024, ~~income~~shipping ~~(or~~and ~~loss)~~handling atcost ~~the~~from ~~end~~discontinued ofoperations ~~the~~were ~~interim period~~$8,009.

~~Revenue Recognition~~Advertising

~~The~~Advertising ~~Company~~expenses ~~recognizes~~consist ~~revenues~~primarily ~~following~~of ~~the~~costs ~~five-step~~of ~~model~~promotion ~~prescribed~~and ~~under~~marketing ~~ASC~~for ~~606:~~the ~~(i)~~Company’s ~~identify~~image ~~contract(s)~~and ~~with~~products, aand ~~customer;~~costs ~~(ii)~~of ~~identify~~direct ~~the~~advertising, and ~~performance~~are ~~obligations~~included in ~~the~~selling ~~contract;~~expenses. ~~(iii)~~The ~~determine~~Company ~~the~~expenses ~~transaction~~all ~~price;~~advertising ~~(iv)~~costs ~~allocate~~as incurred. During the ~~transaction~~year ~~price~~ended toDecember ~~the~~31, ~~performance~~2025 there ~~obligations~~were inno ~~the~~advertising ~~contract;~~expenses ~~and~~from ~~(v)~~continuing ~~recognize~~operations ~~revenues~~incurred. During ~~when~~the ~~(or~~year ~~as)~~ended weDecember ~~satisfy~~31, ~~the~~2024, ~~performance~~advertising ~~obligation~~expenses from discontinued operations were $1,228.

~~Revenue is~~Fair ~~measured~~Value ~~at the amount of consideration we expect to receive in exchange for the sale of our product, which occurs at a point in time,~~(“FV”) ~~typically upon delivery to customers. The Company expenses incremental costs~~ of ~~obtaining~~Financial ~~a contract as and when incurred if the expected amortization period of the asset that it would have recognized is one year or less or the amount is immaterial.~~Instruments

~~Revenues~~Certain of the Company’s ~~from~~financial ~~sales~~instruments, ofincluding ~~goods~~cash ~~are~~and ~~measured~~equivalents, ataccrued ~~net~~liabilities ofand ~~reserves~~accounts ~~established~~payable, ~~for~~carrying ~~applicable~~amounts ~~discounts~~approximate ~~and~~their ~~allowances~~FV due ~~that~~to ~~are~~their ~~offered~~short ~~within~~maturities. ~~contracts~~FASB ASC Topic 825, “Financial Instruments,” requires disclosure of the FV of financial instruments ~~with~~held by the Company’s. ~~customers,~~The carrying amounts reported in the balance sheets for current liabilities each qualify as financial instruments and are ~~recognized~~a ~~when~~reasonable estimate of their FV because of the ~~goods~~short ~~are~~period ~~delivered~~of totime ~~customers~~between the origination of such instruments and their expected realization and the current market rate of interest.

~~Product revenue~~Fair ~~reserves,~~Value ~~which are classified as a reduction in product revenues, are generally characterized in the following categories: discounts,~~Measurements ~~returns~~ and rebates. These reserves are based on estimates of the amounts earned or to be claimed on the related sales and are classified as reductions of accounts receivable as the amount is payable to the Company’s customers.Disclosures

~~Revenues from~~ASC ~~manufacture~~Topic or820, ~~OEM~~“Fair Value ~~services~~Measurements ~~are~~and ~~recognized~~Disclosures,” ~~when~~defines ~~the~~FV, ~~manufacture~~and ~~process~~establishes isa ~~completed~~three-level ~~pursuant~~valuation tohierarchy ~~the~~for ~~customers’~~disclosures ~~requirements and~~of ~~the~~FV ~~manufactured~~measurement that ~~goods~~enhances ~~are~~disclosure ~~delivered~~requirements tofor ~~the~~FV ~~customers~~measures. The ~~Company~~three ~~currently~~levels ~~outsources~~are ~~manufacture~~defined ~~service~~as ~~after disposal of BEP in December 2023.~~follow:

~~The~~● ~~Company’s return~~Level ~~policy~~1 ~~allows~~inputs ~~for~~to the ~~return~~valuation ofmethodology ~~damaged~~are orquoted ~~defective~~prices ~~products~~(unadjusted) and shipment errors. A notice of damage or wrong items should make within five days from receiving the goods, and actual return of the products must be completed within 30 days from the date of receiving the goods. Delayed notification for ~~damaged~~identical orassets ~~wrong products will not be accepted for return~~ or ~~exchange.~~liabilities ~~Custom~~in ~~formulas~~active ~~and capsules are not returnable~~markets. ~~The amount for return of products was immaterial for the years ended December 31, 2024 and 2023.~~

~~F-10~~● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

~~Cost~~● ofLevel ~~Revenue~~3 inputs to the valuation methodology are unobservable and significant to the FV measurement.

~~Cost~~As of ~~goods~~ ~~sold~~December ~~(“COGS”)~~31, 2025 ~~consists~~and ~~primarily~~2024, ofthe ~~finished~~Company ~~goods~~did ~~purchased~~not ~~from~~identify ~~other~~any ~~manufacturers,~~assets ~~material costs, labor costs~~ and ~~related~~ ~~overhead~~liabilities that are ~~directly~~required ~~attributable~~ to ~~the~~be ~~production~~presented ofon the ~~products~~balance sheet at FV. The ~~Write-down~~carrying value of ~~inventory~~cash, accounts receivable, prepaid expenses, advances to ~~lower~~suppliers, ofaccounts ~~cost~~payable, ortaxes ~~net~~payable, ~~realizable~~other payables ~~value~~and isaccrued ~~also~~liabilities ~~recorded~~approximate inestimated ~~COGS~~fair values because of their short maturities.

Cost of manufacture service/OEM consists primarily of direct labor costs and related overhead that are directly attributable to the manufacture process. However, the Company has been outsourcing manufacture service since disposal of BEP in December 2023.F-11

~~Shipping~~Earnings ~~and~~(Loss) per ~~Handling~~Share ~~Costs~~(EPS)

~~Shipping~~Basic EPS is computed ~~and~~by ~~handling~~dividing ~~costs~~net ~~related~~income by the weighted average number of common shares outstanding for the period. Diluted EPS is computed similar to basic ~~delivery~~net income per share except that the denominator is increased to include the number of ~~finished~~additional ~~goods~~common shares that would have been outstanding if all the potential common shares pertaining to warrants, stock options, and similar instruments had been issued and if the additional common shares were dilutive. Diluted EPS are ~~included~~based inon ~~selling~~the ~~expenses~~assumption that all dilutive convertible shares and stock options and warrants were converted or exercised. ~~During~~Dilution is computed by applying the ~~years~~treasury ~~ended~~stock ~~December~~method 31for the outstanding unvested restricted stock, ~~2024~~options and warrants, and the if-converted method for the outstanding convertible instruments. Under the treasury stock ~~2023~~method, ~~shipping~~options and ~~handling~~warrants ~~costs~~are ~~from~~assumed ~~continuing~~to ~~operations~~be exercised at the beginning of the period (or at the time of issuance, if later) and as if funds obtained thereby were $1used to purchase common stock at the average market price during the period. Under the if-converted method,~~286~~ outstanding convertible instruments are assumed to be converted into common stock at the beginning of the period (or at the time of issuance, if later). There were no potentially dilutive securities outstanding (options and ~~$nil~~warrants) for the years ended December 31, ~~respectively~~2025 and 2024.

~~During~~Commitments ~~the years ended December31, 2024~~ and ~~2023, shipping and handling costs from discontinued operations were $8,009 and $45,071, respectively.~~ Contingencies

~~Advertising~~Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed. As of December 31, 2025, the Company has potential legal contingencies described in Note 13.

~~Advertising expenses~~Concentration ~~consist primarily~~ of ~~costs of promotion and marketing for the Company’s image and products, and costs of direct advertising,~~ ~~and~~Credit are included in selling expenses. The Company expenses all advertising costs as incurred. During the years ended December 31, 2024 and 2023, there was no advertising expenses from continuing operations incurred. Risk

~~During~~Financial ~~the~~instruments ~~years~~that ~~ended~~potentially ~~December31,~~subject ~~2024~~the Company to credit risk consist primarily of accounts and ~~2023,~~other ~~advertising~~receivables. ~~expenses~~The ~~from~~Company ~~discontinued~~does ~~operations~~not ~~were~~require collateral ~~$1,228~~ or other security to support these receivables. The Company conducts periodic reviews of the financial condition and ~~$66,625,~~payment practices ~~respectively~~of its customers to minimize collection risk on accounts receivable.

~~Fair~~For ~~Value~~the ~~(“FV”)~~year ended December 31, 2025, the Company had four major customers accounted for 21.6%, 12.7%, 10.1% and 10.0%, respectively, of ~~Financial~~the ~~Instruments~~Company’s total sales. For the year ended December 31, 2024, the Company had four customers accounted for 19.70%, 13.71%, 11.88% and 10.00% of the Company’s total sales.

~~Certain of~~For the ~~Company’s~~year ~~financial~~ended December ~~instruments~~31, ~~including~~2025, ~~cash~~the ~~and~~Company ~~equivalents,~~had ~~accrued~~three ~~liabilities~~major ~~and~~vendors ~~accounts~~accounted ~~payable~~for 49.21%, ~~carrying~~34.01% ~~amounts approximate~~and 14.18% ~~their~~of FVthe ~~due~~Company’s tototal manufacturing ~~their~~service, ~~short maturities~~respectively. ~~FASB~~For ~~ASC~~year ~~Topic~~ended ~~825~~December 31, ~~“Financial Instruments~~2024,” ~~requires~~the ~~disclosure~~Company ofhad ~~the FV~~one ofmajor ~~financial~~vendor ~~instruments~~accounted ~~held~~for 100% byof the Company.’s ~~The~~total ~~carrying~~purchases ~~amounts~~for ~~reported in~~ the ~~balance~~goods ~~sheets~~sold ~~for current liabilities each qualify as financial instruments~~ and ~~are~~one amajor ~~reasonable~~vendor ~~estimate~~accounted offor ~~their~~100% ~~FV because~~ of the ~~short~~Company’s ~~period~~total ~~of time between the origination of such~~manufacturing ~~instruments and their expected realization and the current market rate of interest~~service.

~~Fair Value Measurements and Disclosures~~F-12

~~ASC~~Segment Topic 820, “Fair Value Measurements and Disclosures,” defines FV, and establishes a three-level valuation hierarchy for disclosures of FV measurement that enhances disclosure requirements for FV measures. The three levels are defined as follow:Reporting

●ASC ~~Level~~Topic 1280, ~~inputs~~“Segment Reporting,” torequires ~~the~~use ~~valuation~~of ~~methodology~~the ~~are~~“management ~~quoted~~approach” ~~prices~~model ~~(unadjusted)~~ for ~~identical~~segment ~~assets~~reporting. The ormanagement ~~liabilities~~approach inmodel is ~~active~~based ~~markets.~~on ●the ~~Level~~way 2a ~~inputs~~company’s chief tooperating ~~the~~decision ~~valuation~~maker organizes ~~methodology~~segments ~~include~~within ~~quoted~~the ~~prices~~Company for ~~similar~~making ~~assets~~operating decisions ~~and~~assessing ~~liabilities~~performance inand ~~active~~allocating ~~markets,~~resources. ~~and~~Reportable ~~inputs~~segments ~~that~~ are ~~observable~~based ~~for~~on ~~the~~products ~~asset~~and orservices, ~~liability~~geography, ~~either~~legal ~~directly~~structure, management ~~or indirectly~~structure, ~~for~~or ~~substantially~~any ~~the~~other ~~full~~manner ~~term~~in ofwhich ~~the~~management ~~financial~~disaggregates ~~instrument.~~a ~~● Level 3 inputs to the valuation methodology are unobservable and significant to the FV measurement~~company.

~~F-11~~Management determined the Company’s operations constitute a single reportable segment in accordance with ASC 280. The Company operates exclusively in one business and industry segment: manufacture / OEM and sale of health supplement products.

AsNew ~~of December~~Accounting 31, 2024 and 2023, the Company did not identify any assets and liabilities that are required to be presented on the balance sheet at FV. The carrying value of cash, accounts receivable, prepaid expenses, advances to suppliers, accounts payable, taxes payable, other payables and accrued liabilities approximate estimated fair values because of their short maturities.Pronouncements

~~Share~~In October 2023, the FASB issued ASU No. 2023-~~based~~06, ~~Compensation~~“Disclosure Improvements — Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative.” The ASU amends the disclosure or presentation requirements related to various subtopics in the FASB ASC. The ASU was issued in response to the SEC’s August 2018 final amendments in Release No. 33-10532, Disclosure Update and Simplification that updated and simplified disclosure requirements that the SEC believed were duplicative, overlapping, or outdated. The guidance in ASU 2023-06 is intended to align GAAP requirements with those of the SEC and to facilitate the application of GAAP for all entities. The amendments introduced by ASU 2023-06 are effective if the SEC removes the related disclosure or presentation requirement from its existing regulations by June 30, 2027. If, by June 30, 2027, the SEC has not removed the applicable requirements from its existing regulations, the pending content of the associated amendment will be removed from the ASC and will not become effective for any entities. Early adoption is permitted. The adoption of ASU 2023-06 is not expected to have a material impact on the Company’s consolidated financial statements or related disclosures.

~~The~~On ~~Company~~November 4, 2024, ~~accounts~~the ~~for~~FASB ~~share~~issued an ASU No. 2024-~~based~~03, ~~compensation~~Disaggregation ~~awards~~of Income Statement Expenses (“ASU 2024 03”) to improve the disclosures about a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses in ~~accordance~~commonly ~~with~~presented ~~ASC~~expense ~~718~~captions (such as cost of sales; selling, ~~“Compensation~~general, –and ~~Stock~~administrative ~~Compensation”~~expenses; and research and development). The ~~cost~~amendments in the ASU require disclosure in the notes to financial statements of specified information about certain costs and expenses. The amendments require that at each interim and annual reporting period an entity: 1.Disclose the amounts of ~~services~~(a) purchases ~~received~~of ~~from~~inventory, ~~employees~~(b) employee compensation, (c) depreciation, (d) intangible asset amortization, and ~~non~~(e) depreciation, depletion, and amortization recognized as part of oil-~~employees~~ inand ~~exchange~~gas-producing ~~for~~activities ~~awards~~(or other amounts of ~~equity~~depletion ~~instruments~~expense) included in each relevant expense caption. A relevant expense caption is ~~recognized~~an inexpense caption presented on the ~~consolidated~~face of the income statement within continuing operations that contains any of ~~operations~~the ~~based~~expense oncategories listed in (a)–(e). 2. Include certain amounts that are already required to be disclosed under current generally accepted accounting principles in the ~~estimated~~same ~~fair~~tabular ~~value~~disclosure as the other disaggregation requirements. 3. Disclose a qualitative description of ~~those~~the ~~awards~~amounts onremaining in relevant expense captions that are not separately disaggregated quantitatively. 4) Disclose the ~~grant~~total ~~date~~amount of selling expenses and, ~~amortized~~in onannual areporting ~~straight-line~~periods, ~~basis~~an ~~over~~entity’s definition of selling expenses. In January 2025, the ~~requisite~~FASB issued ASU No. 2025-01, Clarifying the Effective Date (“ASU 2025-01”). The amendments, as clarified ~~service~~by ~~period~~ASU 2025-01, are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The amendments in this ASU should be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of the ASU or ~~vesting~~(2) ~~period~~retrospectively to any or all prior periods presented in the financial statements. The Company ~~records~~is ~~forfeitures~~currently asevaluating ~~they~~the ~~occur~~impact that the adoption of ASU 2024-03 will have on its consolidated financial statement presentation or disclosures.

~~Earnings (Loss) per Share (EPS)~~F-13

~~Basic~~In ~~EPS is~~January ~~computed~~2025, bythe FASB ~~dividing~~issued ~~net~~ASU ~~income~~2025-01 byIncome ~~the~~Statement-Reporting ~~weighted~~Comprehensive ~~average~~Income ~~number~~– ofExpense ~~common~~Disaggregation ~~shares~~Disclosures ~~outstanding~~(Subtopic ~~for the period~~220-40). The ~~Diluted~~FASB ~~EPS~~issued isASU ~~computed similar~~2024-03 toon ~~basic~~November ~~net~~4, ~~income~~2024-03 ~~per~~states ~~share except~~ that the ~~denominator~~amendments isare ~~increased~~effective tofor ~~include~~public ~~the~~business ~~number~~entities offor ~~additional~~annual ~~common shares that~~reporting ~~would~~periods ~~have~~beginning ~~been~~after ~~outstanding~~December if15, ~~all~~2026, ~~the~~and ~~potential~~interim ~~common~~reporting ~~shares~~periods ~~pertaining~~beginning toafter ~~warrants,~~December ~~stock options~~15, ~~and~~2027. ~~similar~~Following ~~instruments~~the ~~had~~issuance ~~been~~of ~~issued~~ASU ~~and~~2024-03, if the ~~additional~~FASB ~~common~~was ~~shares~~asked ~~were~~to ~~dilutive.~~clarify ~~Diluted~~the ~~EPS~~initial ~~are~~effective ~~based~~date onfor ~~the~~entities ~~assumption~~ that ~~all~~do ~~dilutive~~not ~~convertible~~have ~~shares and~~an ~~stock~~annual ~~options~~reporting ~~and~~period ~~warrants~~that ~~were~~ends on ~~converted~~December or31 ~~exercised.~~(referred ~~Dilution~~to isas ~~computed~~non-calendar byyear-end ~~applying~~entities). ~~the~~Because ~~treasury~~of ~~stock~~how ~~method~~the ~~for~~effective ~~the~~date ~~outstanding unvested~~guidance ~~restricted~~was ~~stock~~written, ~~options~~a ~~and~~non-calendar year-end ~~warrants,~~entity ~~and~~may ~~the~~have ~~if-converted~~concluded ~~method~~that ~~for~~it ~~the~~would ~~outstanding~~be ~~convertible~~required ~~instruments.~~to ~~Under~~initially adopt the ~~treasury stock~~disclosure ~~method,~~requirements ~~options~~in ~~and~~ASU ~~warrants~~2024-03 ~~are~~in ~~assumed~~an tointerim reporting beperiod, ~~exercised~~rather atthan ~~the~~in ~~beginning~~annual ofreporting ~~the~~ period. ~~(or~~The atFASB’s intent in the ~~time~~basis for conclusions of ~~issuance,~~ASU if2024-03 ~~later)~~is ~~and~~clear asthat ifall ~~funds~~public ~~obtained~~business ~~thereby~~entities ~~were~~should ~~used~~initially toadopt ~~purchase~~the ~~common~~disclosure ~~stock~~requirements atin the ~~average~~first ~~market~~annual ~~price~~reporting ~~during the~~ period. ~~Under~~beginning ~~the if-converted~~after ~~method~~December 15, ~~outstanding~~2026, ~~convertible~~and ~~instruments~~interim ~~are~~reporting ~~assumed~~periods towithin beannual ~~converted~~reporting ~~into~~periods ~~common~~beginning ~~stock~~after atDecember ~~the~~15, ~~beginning~~2027. ofThe ~~the~~Company ~~period~~is ~~(or~~currently evaluating at the ~~time of~~impact ~~issuance,~~that ifthe ~~later).~~adoption ~~There~~of ~~were~~ASU no2025-01 ~~potentially~~will ~~dilutive~~have ~~securities~~on ~~outstanding~~its ~~(options~~consolidated ~~and~~financial ~~warrants)~~statement ~~for~~presentation ~~the~~or ~~years ended December 31, 2024 and 2023~~disclosures.

~~Concentration~~In March 2025, the FASB issued ASU 2025-02—Liabilities (405): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 122. The amendments in this Update are effective immediately and on a fully retrospective basis to annual periods beginning after December 15, 2024. The Company is currently evaluating the effect of ~~Credit~~adoption ~~Risk~~of this standard to its consolidated financial statements and disclosures.

~~Financial~~In July 2025, the ~~instruments~~FASB ~~that~~issued ~~potentially~~ASU ~~subject~~2025-05, ~~the~~Financial ~~Company~~Instruments to– ~~credit~~Credit ~~risk~~Losses ~~consist~~(Topic ~~primarily~~326): Measurement of ~~accounts~~Credit Losses for Accounts Receivable and ~~other~~Contract Assets. The amendments provide a practical expedient and, if applicable, an accounting policy election to simplify the measurement of credit losses for certain receivables and contract assets. The ~~Company~~amendments ~~does~~are effective for annual reporting periods beginning after ~~not~~December ~~require~~15, ~~collateral~~2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted in any interim or annual ~~other~~period ~~security~~in towhich ~~support~~financial ~~these~~statements ~~receivables~~have not been issued or made available for issuance. The Company ~~conducts~~is ~~periodic~~currently ~~reviews~~evaluating the impact of ~~the~~this ~~financial~~amendment ~~condition~~ and ~~payment~~does ~~practices~~not expect that the adoption of ~~its~~this ~~customers~~guidance towill ~~minimize~~have ~~collection~~a ~~risk~~material impact on ~~accounts~~its ~~receivable~~financial position, results of operations, or cash flows.

~~For~~The ~~the year~~Company ~~ended~~does ~~December~~not believe ~~31,~~other ~~2024,~~recently ~~the~~issued ~~Company~~but ~~had~~not ~~four~~yet ~~major~~effective ~~customers~~accounting ~~accounted for 19.70%~~standards, ~~13.71%, 11.88%~~ ~~and~~if ~~10.00%,~~currently ~~respectively~~adopted, of ~~the~~would ~~Company’s~~have ~~total~~a ~~sales.~~material ~~For~~effect on the ~~year~~Company’s consolidated ~~ended~~financial ~~December 31~~position, ~~2023,~~statements ~~one~~of ~~major~~comprehensive ~~customer~~income ~~accounted~~and ~~for 17%~~cash ~~of the Company’s total sales~~flows.

For the year ended December 31, 2024, the Company had one major vendor accounted for 100% of the Company’s total purchases for the goods sold and one major vendor accounted for 100% of the Company’s total manufacturing service. The Company had three major vendors accounted for 24%, 19%, and F-14~~%, respectively, of total purchases during the year ended December 31, 2023.~~

~~Segment Reporting~~3. DISCONTINUED OPERATIONS

~~ASC~~Disposal ~~Topic 280, “Segment Reporting,” requires use~~ of ~~the “management approach” model for segment reporting. The management~~ approach model is based on the way a company’s chief operating decision maker organizes segments within the Company for making operating decisions assessing performance and allocating resources. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company.BEH

~~Management determined~~On March 28, 2024, the Company’s ~~operations~~entered ~~constitute~~into a ~~single~~Stock ~~reportable~~Purchase ~~segment~~Agreement (“SPA”) with Health Up Inc., a California corporation (“HUT”), an unrelated party whereby the Company agreed to sell to HUT its wholly owned subsidiary, BEH, in ~~accordance~~exchange ~~with~~for ~~ASC~~cash ~~280~~consideration of $400,000. The transaction was closed on April 1, 2024. The Company ~~operates~~recorded ~~exclusively~~$377,752 gain on disposal of the subsidiary, which was inthe difference between the selling price of $400,000 ~~one~~and the carrying value of the net assets of $22,248 ~~business~~of ~~and~~the ~~industry~~disposal ~~segment:~~entity. The following ~~manufacture~~table /summarizes ~~OEM~~the carrying value of the assets and ~~sale~~liabilities of ~~health~~BEH ~~supplement~~at ~~products~~March 31, 2024.

F-12

	As of March 31, 2024
ASSETS
CURRENT ASSETS
Cash and equivalents	$	114
Accounts receivable, net		43,164
Other receivables		877,749
Prepaid expenses		52,419
Security deposit		5,364
Inventory, net		184,590
Property and equipment, net		92,274
ROU, Net		112,213
TOTAL ASSETS	$	1,367,887

LIABILITIES AND STOCKHOLDERS’ DEFICIT
CURRENT LIABILITIES
Bank overdraft	$	2,532
Accounts payable		183,170
Taxes payable		14,515
Accrued liabilities and other payables		841,390
Accrued interest on government loans		13,603
Finance lease liabilities		2,694
Operating lease liability		50,331
Loan from officer		29,000
Finance lease liabilities		695
Operating lease liability		61,996
Government loans payable		145,714
TOTAL LIABILITIES	$	1,345,640
Net Assets		22,248
Consideration		400,000
Gain on disposal	$	377,752

~~New Accounting Pronouncements~~F-15

InThe ~~December~~operations of ~~2023,~~BEH ~~the~~was ~~FASB~~accounted ~~issued~~for ~~ASU~~as ~~2023-09,~~discontinued ~~Income~~operations ~~Taxes~~in ~~(Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which requires disclosure of incremental income tax information within~~ the ~~rate~~accompanying ~~reconciliation~~consolidated ~~and~~financial ~~expanded~~statements ~~disclosures of income taxes paid, among other disclosure requirements. ASU 2023-09 is effective~~ for ~~fiscal~~all ~~years~~periods ~~beginning after December 15, 2024~~presented. ~~Early adoption is permitted.~~ The ~~Company’s~~ ~~management~~following ~~does~~table ~~not~~presents ~~believe~~ the ~~adoption~~components of ~~ASU~~discontinued ~~2023-09~~operations ~~will~~reported ~~have~~in athe ~~material~~consolidated ~~impact on its financial~~ statements ~~and~~of ~~disclosures.~~operations:

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 consolidated financial position, statements of comprehensive income and cash flows.

	For the Year Ended December 31, 2024

Revenue, Net	$	153,865
Cost of Revenues		76,592
Gross Profit		77,273
Operating Expenses		192,652

Loss from Operations		(115,379	)
Other Income (Expenses)
Interest expense		(4,154	)
Other expenses		(1,294	)

Total Other Expenses		(5,448	)
Loss Before Income Taxes		(120,827	)
Income Tax Expense		-
Net Loss from Discontinued Operations	$	(120,827	)

34. ~~DISCONTINUED~~ ~~OPERATIONS~~PREPAID EXPENSE AND OTHER RECEIVABLES

~~Disposal~~As of ~~BEP~~December 31, 2025 and 2024, prepaid expense and other receivables were $3,750 and $202,238, respectively. As of December 31, 2025, prepaid expense and other receivables mainly consisted of prepaid professional fee. As of December 31, 2024, other receivables mainly consisted of outstanding receivables from BEH. On May 9, 2025, the Company collected the payment in full for other receivables from BEH.

On December 12, 2023, the Company entered into a Stock Purchase Agreement (“SPA”) with Newways, Inc., a California corporation (“Newways”) whereby the Company agreed to sell to Newways its wholly owned subsidiary, BEP, in exchange for cash consideration of $300,000. Newways is not a related party of the Company. The transaction was closed on December 31, 2023. The Company recorded $67,451 gain on disposal of the subsidiary, which was the difference between the selling price of $300,000 and the carrying value of the net assets of $232,549 of the disposal entity. The following table summarizes the carrying value of the assets and liabilities of BEP at December 31, 2023.F-16

	AS OF DECEMBER 31,
	2023
ASSETS
CURRENT ASSETS
Accounts receivable, net	$	143,164
Other receivables		710,084
Prepaid expenses		7,288
Inventory, net		5,266
Property and equipment, net		208,241
Intangible assets, net		-
TOTAL ASSETS	$	1,074,043
LIABILITIES AND STOCKHOLDERS’ DEFICIT
CURRENT LIABILITIES
Bank overdraft	$	7,806
Accounts payable		27,884
Taxes payable		9,993
Accrued liabilities and other payables		727,657
Accrued interest on government loans		592
Finance lease liabilities		11,003
Loan payables		10,340
Finance lease liabilities		24,643
Loan payables		15,221
Government loans payable		6,355
TOTAL LIABILITIES	$	841,494
Net Assets		232,549
Consideration		300,000
Gain on disposal	$	67,451

5. INTANGIBLE ASSETS, NET

~~F-13~~Intangible assets from the company’s continuing operations consisted of the following as of December 31, 2025 and 2024:

Disposal of BEH

	December 31, 2025			December 31, 2024

Computer Software	$	36,928		$	36,928
Trademark		2,350			2,350
Total		39,278			39,278
Less: accumulated amortization		(39,181	)		(38,946	)
Net	$	97		$	332

OnAmortization ~~March 28,~~of ~~2024, the Company entered into a Stock Purchase Agreement (“SPA”) with Health Up Inc., a California corporation (“HUT”),~~intangible anassets ~~unrelated~~from ~~party whereby~~ the ~~Company~~company’s ~~agreed~~continuing tooperations ~~sell~~were ~~to HUT its wholly owned subsidiary, BEH, in exchange for cash consideration of~~ $~~400,000. The~~235 and ~~transaction was closed on April 1, 2024. The Company recorded~~ $~~377,752~~235 ~~gain~~for ~~on disposal of~~ the ~~subsidiary,~~years ~~which~~ended ~~was~~December ~~the difference between the selling price of $400~~31,~~000 and~~ ~~the~~2025and ~~carrying value of the net assets of $22~~2024,~~248 of~~ ~~the disposal entity~~respectively. The ~~following table~~remaining ~~summarizes~~intangible ~~the carrying value of the~~ assets ~~and~~will ~~liabilities~~be offully ~~BEH~~amortized atduring ~~December 31, 2023 and March 31, 2024, respectively~~2026.

	AS OF DECEMBER 31, 2023
ASSETS
CURRENT ASSETS
Cash and equivalents	$	114
Accounts receivable, net		35,093
Other receivable		877,749
Prepaid expenses		5,633
Security deposit		41,841
Inventory, net		143,259
Total current assets		1,103,689
NONCURRENT ASSETS
Property and equipment, net		94,454
ROU, Net		-
Total non-current assets		94,454
Intercompany receivable between BEC and BEH		(161,469	)
Intercompany fixed assets sales between BEC and BEH		(62,812	)
TOTAL ASSETS	$	973,862
LIABILITIES AND STOCKHOLDERS’ DEFICIT
CURRENT LIABILITIES
Bank overdraft		5,429
Accounts payable		157,475
Taxes payable		6,909
Accrued liabilities and other payables		833,911
Accrued interest on government loans		13,647
Finance lease liabilities		2,660
Loan payables		-
Loan from officer		34,000
Total current liabilities		1,054,031
NONCURRENT LIABILITIES
Finance lease liabilities		1,381
Operating Lease liability		-
Government loans payable		146,487
Total non-current liabilities		147,868
Intercompany payable between BEC and BEH		(225,010	)
TOTAL LIABILITIES	$	976,889

6. ACCRUED LIABILITIES AND OTHER PAYABLES

~~F-14~~As of December 31, 2025, accrued liabilities and other payables from the company’s continuing operations consisted of payroll tax payable of $1,591 and accrued expense $34,263.

	AS OF MARCH 31, 2024
ASSETS
CURRENT ASSETS
Cash and equivalents	$	114
Accounts receivable, net		43,164
Other receivables		877,749
Prepaid expenses		52,419
Security deposit		5,364
Inventory, net		184,590
Property and equipment, net		92,274
ROU, Net		112,213
TOTAL ASSETS	$	1,367,887
LIABILITIES AND STOCKHOLDERS’ DEFICIT
CURRENT LIABILITIES
Bank overdraft	$	2,532
Accounts payable		183,170
Taxes payable		14,515
Accrued liabilities and other payables		841,390
Accrued interest on government loans		13,603
Finance lease liabilities		2,694
Operating lease liability		50,331
Loan from officer		29,000
Finance lease liabilities		695
Operating lease liability		61,996
Government loans payable		145,714
TOTAL LIABILITIES	$	1,345,640
Net Assets		22,248
Consideration		400,000
Gain on disposal	$	377,752

As of December 31, 2024, accrued liabilities and other payables from the company’s continuing operations consisted of 1) the payables to BEP of $256,741 and payables to BEH of $78,255, and 2) payroll and payroll tax payable of $3,140.

The operations of BEP and BEH was accounted for as discontinued operations in the accompanying consolidated financial statements for all periods presented. The following table presents the components of discontinued operations reported in the consolidated statements of operations:F-17

	For the years ended December 31,
	2024			2023
Revenue, Net	$	153,865		$	996,418
Cost of Revenues		76,592			579,941
Gross Profit		77,273			416,477
Operating Expenses		192,652			1,116,480
Loss from Operations		(115,379	)		(700,003	)
Other Income (Expenses)
Interest expense		(4,154	)		(21,506	)
Other income (expenses)		(1,294	)		88,383
Total Other Income (Expenses)		(5,448	)		66,877
Loss Before Income Taxes		(120,827	)		(633,126	)
Income Tax Expense		-			1,600
Net Loss from Discontinued Operations	$	(120,827	)	$	(634,726	)

7. GOVERNMENT LOANS PAYABLE

FIn May and June 2020, BEH, BEP and FDS received total of $215,600 from the Economic Injury Disaster Loan (“EIDL loan”) from the SBA after deducting $100 Uniform Commercial Code (“UCC”) handling charge and filing fee for each company. This is a low-15interest federal disaster loan for working capital to small businesses and non-profit organizations of any size suffering substantial economic injury as a result of the Coronavirus (COVID-19), to help the businesses to meet financial obligations and operating expenses that could have been met had the disaster not occurred. This loan has interest of 3.75% and is not forgivable. The maturity of the loan is 30 years, installment payments including principal and interest of $288 monthly will begin 12 months from the date of the promissory note. On March 4, 2022, FDS transferred its EIDL loan to BEC due to the dissolution of FDS. The SBA extended the deferment period to allow small businesses and not-for-profits that received EIDL funds do not have to begin payments on the loan until 30 months after the date of the note. Accordingly, the company began to make installment payments in the fourth quarter 2022.

4.As ~~PREPAID~~of ~~EXPENSE~~December ~~AND OTHER~~31, ~~RECEIVABLES~~2025, the future minimum EIDL loan payments from the company’s continuing operations to be paid by year are as follows:

As of December 31, 2024 and 2023, prepaid expense and other receivable were $202,238 and $nil, respectively. Other receivables mainly consisted of outstanding receivables from BEH.

Year Ending	Amount
December 31, 2026	$	1,326
December 31, 2027		1,404
December 31, 2028		1,457
December 31, 2029		1,512
December 31, 2030		1,569
Thereafter		50,214
Total	$	57,482

58. ~~SECURITY~~RELATED ~~DEPOSIT~~PARTY TRANSACTIONS

AsLoans ofto ~~December 31, 2024, deposit mainly consisted of the office rent deposit of $2,000~~ (~~one-year operating lease effective on June 1, 2024~~from). ~~As of December 31, 2023, security deposit mainly consisted of the office rent deposit of $50,000 and gas company deposit of $2,545.~~Shareholder

~~The~~As ~~Company~~of December 31, ~~made~~2025, athe ~~security~~Company ~~deposit~~had ofloans ~~$50,000~~ to one major shareholder (~~non-current~~also ~~security~~the ~~deposit) for~~Company’s asenior ~~lease~~officer) of ~~BEC~~$385,173. ~~that~~There ~~was~~are ~~effective~~no onwritten ~~September~~loan agreements 1,for ~~2023. On February~~these 29loans, ~~2024~~which are unsecured, ~~the~~non-interest ~~Management~~bearing ~~early~~without ~~terminated~~fixed ~~this~~terms ~~lease;~~of asrepayment, aand ~~result~~therefore, ~~the~~deemed ~~landlord~~receivable on ~~didn’t~~demand. ~~return~~Subsequently, ~~the~~$380,000 ~~security~~was ~~deposit~~repaid ~~and expensed~~on ~~during~~March ~~2024~~20, 2026.

6As of December 31, 2024, the Company held loans from the same shareholder (also the Company’s senior officer) for $1,186,177, including $608,631 resulting for settling a litigation. ~~PROPERTY~~There ~~AND~~are ~~EQUIPMENT~~no written loan agreements for these loans. These loans are unsecured, non-interest bearing and ~~NET~~have no fixed terms of repayment, and therefore, deemed payable on demand. Cash flows from loans from shareholder are classified as cash flows from financing activities. As of November 30, 2025, all outstanding loans from shareholders had been repaid in full.

~~Property and equipment from the company’s continuing operations consisted of the following at December 31, 2024 and 2023:~~F-18

	December31, 2024			December 31, 2023
Leasehold improvements	$	-		$	3,614
Office furniture and equipment		56,505			56,505
Total		56,505			60,119
Less: accumulated depreciation		(56,505	)		(56,431	)
Net	$	-		$	3,688

9. INCOME TAXES

~~Depreciation expense~~The ~~for~~Company ~~the years ended December 31, 2024~~ and ~~2023~~its subsidiaries ~~from~~are ~~the~~subject ~~Company’s~~to 21% ~~continuing~~federal ~~operations~~corporate ~~were~~income ~~$911~~tax ~~and~~in ~~$4,558, respectively~~US.

~~F-16~~At December 31, 2025 and 2024, the Company had net operating loss (“NOL”) for income tax purposes; for federal income tax purposes, the NOL arising in tax years beginning after 2017 may only offset 80% of a taxpayer’s taxable income, and may be carried forward indefinitely; for California income tax purposes, the entire NOL can be carried forward up to 20 years.

7The Company has NOL carry-forwards for Federal and California income tax purposes of $3.71 million ~~INTANGIBLE~~and ~~ASSETS~~$2.35 million at December 31, ~~NET~~2025 and 2024, respectively. No tax benefit was reported with respect to these NOL carry-forwards in the accompanying consolidated financial statements because the Company believes the realization of the Company’s net deferred tax assets for the NOL for both federal and California State of approximately $1.04 million as of December 31, 2025, was not considered more likely than not and accordingly, the potential tax benefits of the net loss carry-forwards are fully offset by a full valuation allowance.

~~Intangible~~Components of the Company’s deferred tax assets from the company’s continuing operations ~~consisted of the following~~ as of December 31, ~~2024~~2025 and ~~2023~~2024 are as follows:

	December 31, 2024			December 31, 2023
	December 31, 2025			December 31, 2024
Computer Software	$	36,928		$	36,928
Net deferred tax assets (liability):
Trademark		2,350			2,350
Depreciation and amortization expense	$	111		$	794
Total		39,278			39,278
Expected income tax benefit from NOL carry-forwards		1,037,704			658,441
Less: accumulated amortization		(38,946	)		(38,711	)
Less: valuation allowance		(1,037,815	)		(659,235	)
Net	$	332		$	567
Deferred tax assets, net of valuation allowance	$	-		$	-

~~Amortization of~~Income ~~intangible~~Tax ~~assets from the company’s continuing operations were $235~~Provision ~~and~~in ~~$235 for years ended December 31, 2024 and~~the ~~2023,~~Statements ~~respectively.~~ of Operations

~~Estimated~~A reconciliation of ~~amortization for~~the consolidated federal statutory income tax rate and the ~~existing~~effective ~~intangible~~income ~~assets~~tax ~~with~~rate ~~finite~~as ~~lives~~a ~~from~~percentage of income before income taxes from the company’s continuing operations for ~~each of the next five~~ years at ended December 31, 2025 and 2024 is as follows: ~~$235, $97, $nil, $nil and $nil.~~

8. ACCRUED LIABILITIES AND OTHER PAYABLES

	2025			2024

Federal statutory income tax expense (benefit) rate		(21.00	)%		(21.00	)%
State statutory income tax (benefit) rate, net of effect of state income tax deductible to federal income tax		(6.98	)%		(6.98	)%
Permanent difference		-	%		21.08	%
Change in valuation allowance		27.89	%		6.95	%
Effective income tax rate		0.09	%		0.05	%

AsThe ofprovision ~~December~~for ~~31,~~income ~~2023,~~tax ~~accrued~~expense ~~liabilities~~for ~~and~~the ~~other~~continuing ~~payables~~operations ~~from~~for the ~~company’s~~years ~~continuing~~ended ~~operations~~December ~~consisted~~31, of2025 ~~the~~and ~~payables~~2024 toconsisted ~~BEP~~of ~~and~~the ~~BEH totaling $137,700.~~following:

9. GOVERNMENT LOANS PAYABLE

	2025		2024

Income tax expense – current	$	800	$	800
Income tax benefit – current		-		-
Total income tax expense	$	800	$	800

In May and June 2020, BEH, BEP and FDS received total of $215,600 from the Economic Injury Disaster Loan (“EIDL loan”) from the SBA after deducting $100 Uniform Commercial Code (“UCC”) handling charge and filing fee for each company10. This is a low-interest federal disaster loan for working capital to small businesses and non-profit organizations of any size suffering substantial economic injury as a result of the Coronavirus (COVID-19), to help the businesses to meet financial obligations and operating expenses that could have been met had the disaster not occurred. This loan has interest of 3.75% and is not forgivable. The maturity of the loan is 30 years, installment payments including principal and interest of $515 monthly will begin 12 months from the date of the promissory note. On March 4, 2022, The FDS transferred its EIDL loan to BEC due to the dissolution of FDS. The SBA extended the deferment period to allow small businesses and not-for-profits that received EIDL funds do not have to begin payments on the loan until 30 months after the date of the note. Accordingly, the company began to make installment payments in the fourth quarter 2022.LEASES

AsOperating ~~of December 31, 2024, the future minimum EIDL loan payments from the company’s continuing operations to be paid by year are as follows:~~Leases

Year Ending	Amount
December 31, 2025	$	1,357
December 1, 2026		1,408
December 31, 2027		1,462
December 31, 2028		1,518
December 31, 2029		1,576
Thereafter		49,160
Total	$	56,481

On May 18, 2023, the Company entered a 36-month lease with Stason Industrial Corporation for a facility including warehouse and office in the City of Irvine, California, with a security deposit of $50,000, effective on September 1, 2023. The monthly rent is approximately $47,100 with a 3% increase each year. On February 29, 2024 the Management moved out from the facilities and decided to seek early termination of this lease. The $50,000 security deposit was not returned to the Company and the negotiation of early termination is still ongoing as of the reporting date. During 2024, the Company recorded the full impairment of ROU asset of $1.05 million and kept $1.50 million lease liabilities associated with this lease in the Company’s consolidated financial statements due to uncertainty of the negotiation result with the landlord. The Company recently received a formal summons regarding a breach of contract lawsuit filed by the landlord. See Note 14 – Commitments and Contingencies for further information regarding this litigation.

FOn March 3, 2025, the Company entered a 12-17month lease with THE PROPITIOUS IRVINE LLC for office space located in Irvine, California, commencing on June 1, 2025. The lease requires monthly rental payments of $3,000.

~~10.~~The ~~RELATED~~components ~~PARTY~~of lease ~~TRANSACTIONS~~costs for continuing operations, lease term and discount rate with respect of warehouse and office lease with an initial term of more than 12 months are as follows:

Loans from Shareholder

	Year Ended December 31, 2025			Year Ended December 31, 2024

Operating lease cost	$	41,858		$	452,612
Weighted Average Remaining Lease Term - Operating leases including options to renew		-			-
Weighted Average Discount Rate - Operating leases		5	%		5	%

As of December 31, 2024, and 2023, the Company held loans from one major shareholder (also the Company’s senior officer) for $577,546 and $1,180,046, respectively. As of December 31, 2024 and 2023, the Company held the loan from another major shareholder for $608,631 for settling the litigation. There are no written loan agreements for these loans. These loans are unsecured, nonF-~~interest bearing and have no fixed terms of repayment, and therefore, deemed payable on demand. Cash flows from loans from shareholder are classified as cash flows from financing activities.~~20

~~On May 31, 2023, the Board of Directors of Bio Essence Corp~~11. ~~(the~~COMMITMENT ~~“Company”),~~AND approved a debt-to-equity conversion. The Company and Ms. Yan (the Company’s Chief Executive Officer also the Company’s major shareholder) agreed to a debt conversion whereby Ms. Yan receives 5,000,000 shares of the Company’s common stock in exchange for retirement of the $2,500,000 debt. The Board of Directors of the Company executed the Consent Resolution on June 2, 2023. On June 2, 2023, the closing price of the Company’s common stocks trading on OTC Market was $0.51 per share. The Company incurred $50,000 loss from this conversion.CONTINGENCIES

11From time to time, the Company may be a party to various legal actions arising in the ordinary course of business. ~~INCOME~~The ~~TAXES~~Company accrues costs associated with these matters when they become probable and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred.

~~The Company and its subsidiaries are subject to 21% federal corporate income tax in US.~~Contingencies

AtOn ~~December 31,~~March ~~2024 and 2023~~9, 2026, the Company ~~had~~ ~~net~~was ~~operating~~served ~~loss~~with ~~(“NOL”)~~a ~~for~~summons ~~income~~and ~~tax~~complaint ~~purposes;~~filed ~~for~~by ~~federal~~Stason ~~income~~Industrial ~~tax~~Corporation ~~purposes,~~ (the ~~NOL~~ ~~arising~~“Plaintiff”). inThe ~~tax~~complaint alleges ~~years~~breach ~~beginning~~of ~~after~~contract ~~2017~~in ~~may~~connection ~~only~~with ~~reduce 80%~~the ~~of a taxpayer~~Company’s ~~taxable~~early ~~income,~~vacation ~~and~~of ~~may be carried forward indefinitely; for California income tax purposes,~~ the ~~entire~~Irvine ~~NOL~~facility ~~can~~and beseeks ~~carried~~damages ~~forward~~of upapproximately $1.5 ~~to 20 years~~million.

~~The~~As ~~Company has NOL carry-forwards for Federal and California income tax purposes~~ of ~~$2.35 million and $2.27 million at~~ December 31, ~~2024 and 2023~~2025, ~~respectively.~~the NoCompany ~~tax~~had ~~benefit~~accrued ~~was~~approximately ~~reported~~$1.5 ~~with~~million ~~respect~~related to ~~these~~this ~~NOL~~matter ~~carry-forwards~~under inlease ~~the~~liabilities. ~~accompanying~~Management ~~consolidated~~has ~~financial~~evaluated the ~~statements~~claim ~~because~~and ~~the~~determined ~~Company~~that ~~believes~~a ~~the~~loss ~~realization~~is ofprobable. While the Company’s ~~net~~intends ~~deferred~~to ~~tax~~participate in ~~assets~~the ~~for~~legal ~~the~~process, ~~NOL~~management ~~for~~believes the ~~both~~$1.5 ~~federal~~million ~~and California~~operating ~~State~~lease ofliabilities ~~approximately~~recorded ~~$0.66 million~~ as of December 31, ~~2024,~~2025 ~~was~~and ~~not~~2024 ~~considered~~represents ~~more~~the most likely ~~than~~outcome ~~not~~of ~~and~~this ~~accordingly,~~matter. ~~the~~Management ~~potential~~does ~~tax~~not ~~benefits~~believe ofit ~~the~~is ~~net~~reasonably possible that a loss ~~carry-forwards~~materially ~~are~~in ~~fully~~excess ~~offset~~of bythe aamount ~~full~~accrued ~~valuation allowance~~will be incurred.

~~Components~~The complaint also asserts an additional cause of action alleging breach of a Statement of Work (“SOW”). The Plaintiff alleges that the Company’s failed ~~deferred~~to ~~tax~~perform ~~assets~~certain ~~from~~laboratory ~~the~~and ~~company’s~~pharmaceutical ~~continuing~~processing ~~operations~~services asand seeks recovery of ~~December~~alleged ~~31,~~unreturned ~~2024~~service ~~and~~payments as ~~2023~~well ~~are~~ as ~~follows:~~ alleged lost revenues associated with a third-party agreement.

	December 31, 2024			December 31, 2023
Net deferred tax assets (liability):
Depreciation and amortization expense	$	794		$	794
Expected income tax benefit from NOL carry-forwards		658,441			635,598
Less: valuation allowance		(659,235	)		(636,392	)
Deferred tax assets, net of valuation allowance	$	-		$	-

The Company is currently evaluating these allegations. The ultimate outcome of this claim is inherently uncertain, and management is presently unable to predict whether the Company will prevail. The Company intends to defend its position and may also engage in settlement discussions; however, the litigation remains in its early stages. As of December 31, 2025 and the reporting date, management concluded that a loss related to the SOW claim was neither probable nor reasonably estimable; accordingly, no accrual has been recorded for this matter.

~~Income~~12. ~~Tax~~SUBSEQUENT ~~Provision in the Statements of Operations~~EVENTS

AThe ~~reconciliation of~~Company follows the ~~consolidated~~guidance ~~federal~~in ~~statutory~~FASB ~~income~~ASC ~~tax~~855-10 ~~rate~~for ~~and~~ the ~~effective~~disclosure ~~income~~of ~~tax~~subsequent ~~rate~~events. asThe aCompany ~~percentage~~evaluated ofsubsequent ~~income~~events ~~before~~through ~~income~~the ~~taxes from~~date the financial ~~company’s~~statements ~~continuing~~were ~~operations~~issued ~~for~~and determined the ~~years~~Company ~~ended December 31,~~did ~~2024~~not ~~and~~have ~~2023~~any ismaterial assubsequent ~~follows:~~event.

	2024			2023
Federal statutory income tax expense (benefit) rate		(21.00	)%		(21.00	)%
State statutory income tax (benefit) rate, net of effect of state income tax deductible to federal income tax		(6.98	)%		(6.98	)%
Permanent difference		21.08	%		-	%
Change in valuation allowance		6.95	%		28.38	%
Effective income tax rate		0.05	%		0.40	%

F-21

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The provision for income tax expense for the continuing operations for the years ended December 31, 2024 and 2023 consisted of the following:

	2024		2023
Income tax expense – current	$	800	$	1,600
Income tax benefit – current		-		-
Total income tax expense	$	800	$	1,600

12. LEASES

Operating Leases

Effective October 1, 2018, the Company entered a 62.5 month lease for a facility including warehouse and office in the City of Irvine, California, with a security deposit of $41,841. The monthly rent is approximately $16,200 with a 3% increase each year. The lease provided an option to extend at lease maturity for another five-years, with six months prior written notice of lessee’s intention to extend the lease. The Company’s CEO is the guarantor of this lease. Lessor will have the right to proceed against guarantor following any breach or default by lessee without first proceeding against lessee and without previous notice to or demand upon either lessee or guarantor. At the commence of the lease, the Management intended to use the option to extend 3 more years in the lease term. Lately, the Management decided to let the lease expire without renew on September 30, 2023.

On May 18, 2023, the Company entered a 36-month lease for a facility including warehouse and office in the City of Irvine, California, with a security deposit of $50,000, effective on September 1, 2023. The monthly rent is approximately $47,100 with a 3% increase each year. On February 29, the Management moved out from the facilities and decided to seek early termination of this lease. The $50,000 security deposit was not returned to the Company and the negotiation of early termination is still ongoing as of the reporting date. As of December 31, 2024, the Company recorded the full impairment of ROU asset of $1.05 million and kept $1.46 million lease liabilities associated with this lease in the Company’s consolidated financial statements due to uncertainty of the negotiation result with the landlord.

The components of lease costs for continuing operations, lease term and discount rate with respect of warehouse and office lease with an initial term of more than 12 months are as follows:

	Year Ended December 31, 2024			Year Ended December 31, 2023
Operating lease cost	$	452,612		$	255,954
Weighted Average Remaining Lease Term - Operating leases including options to renew		-			-
Weighted Average Discount Rate - Operating leases		5	%		5	%

13. LOAN PAYABLES

In June 2021, BEP, the discontinued entity entered a loan agreement of $14,549 for purchasing a videojet with interest rate of 14.11% and a term of three-years. In September 2021, BEP entered another loan agreement of $39,218 for purchasing a spectrophotometer workstation with interest rate of 10.26% and a term of five-years. The Company recorded interest expense of $3,524 during the year ended December 31, 2023. The loan was disposed as a result of disposal of BEP on December 31, 2023.

14. SUBSEQUENT EVENTS

The Company follows the guidance in FASB ASC 855-10 for the disclosure of subsequent events. The Company evaluated subsequent events through the date the financial statements were issued and determined the Company did not have any material subsequent event.

F-19

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Filing Compare · Bio Essence Corp