Components of investments in equity method investees are as follows as of June 30:

2. Summary of Significant Accounting Policies

Basis of Presentation and Consolidation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).

The consolidated financial statements include the financial statements of the Company and its subsidiaries. All intercompany transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation.

Discontinued Operations

When the Company has abandoned, or classified as held for sale, a business component that represents a strategic shift with a major effect on the Company’s operations and financial results, it classifies that business component as a discontinued operation and retrospectively presents discontinued operations for the comparable periods. The post-tax income or loss of discontinued operations is shown as a single line on the face of the consolidated statements of operations and comprehensive loss. The disposition of the discontinued operation would also result in a gain or loss upon final disposition.

On May 7, 2026, the Company completed the sale (the “Disposition”) of 100% of the Company’s holdings of issued share capital in OPS HK for consideration of $2,396,507 (equivalent to HK$18,764,649). This disposition represented a strategic shift with a major effect on the Company’s operations and financial results, and as a result, the legacy interior design business carried by OPS HK has been presented as discontinued operations and excluded from both continuing operations and segment results for all periods presented. In connection with the Disposition, the Company recognized a gain on disposal of $562,135 during the year ended June 30, 2026, which includes the reclassification (recycling) of $354 of cumulative foreign currency translation adjustments from accumulated other comprehensive income into earnings as part of the disposal gain. The results of the legacy interior design business, including the gain on disposition, are instead presented as discontinued operations in the consolidated statements of operations and comprehensive loss for the years ended June 30, 2026, 2025 and 2024. Further, the assets and liabilities of the legacy interior design business have been reclassified as current and non-current assets and liabilities of discontinued operations in the consolidated balance sheets as of June 30, 2025 (with no remaining balances as of June 30, 2026 due to the completion of the sale). The cash flows from the legacy interior design business are presented as cash flows from discontinued operations within the consolidated statements of cash flows. The Company has not historically allocated any general corporate overhead to the legacy interior design business. See Notes 20 and 23 for further discussion.

Use of Estimates and Assumptions

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and judgments are based on historical information, information that is currently available to the Company and on various other assumptions that the Company believes to be reasonable under the circumstances. Significant estimates required to be made by management include, but are not limited to, the allowance for expected credit losses, the allocation of transaction prices to distinct performance obligations based on relative standalone selling prices, write-downs for inventory obsolescence and net realizable value, impairment testing of long-lived assets, the valuation allowance for deferred tax assets, incremental borrowing rates used in calculation of the operating lease right-of-use assets and operating lease liabilities, valuation of contingent consideration payable, valuation of investments in equity securities and short-term investments and valuation for share-based compensation. Actual results could differ from those estimates, and as such, differences could be material to the consolidated financial statements.

Functional Currency, Foreign Currency Translation and Transaction

Change in functional currency

Effective from January 1, 2025, the Company adopted the United States dollar (“US$” or “$”) as its functional currency. Prior to January 1, 2025, the functional currency of the Company was the Hong Kong dollar (“HK$”). The change in functional currency of the Company is due to the increased exposure to the US$, as the main purpose of the Company is to seek financing which is mainly denominated in US$. As a result, the Company determined that the functional currency of the Company changed from HK$ to US$. The change in functional currency was accounted for prospectively from January 1, 2025 in accordance with ASC 830, Foreign Currency Matters, and consolidated financial statements prior to and including the period ended December 31, 2024 were not restated for the change in functional currency. Management is of the opinion that the exposure arising from the change in functional currency is minimal as the HK$ is pegged to the US$.

The Company’s subsidiaries determined their functional currencies based on the criteria of ASC 830, Foreign Currency Matters. The Company uses the US$ as its reporting currency.

The results of operations and the consolidated statements of cash flows denominated in foreign currency are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the foreign currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss) included in consolidated statements of changes in shareholders’ equity. Gains and losses from foreign currency transactions are included in the Company’s consolidated statements of operations and comprehensive loss.

The following table outlines the currency exchange rates that were used in preparing the consolidated financial statements:

Fair Value of Financial Instruments

ASC 825-10 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

The Company considers that the carrying amounts of its financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable, net, amounts due from related parties, loans receivable, net, deposits and other receivables, accounts payable, amounts due to related parties, other borrowings and other payables, approximate their fair values as of June 30, 2026 and 2025 due to their short-term nature or market rates of interest.

The following table sets forth the financial assets and liabilities, measured at fair value, by level within the fair value hierarchy as of June 30, 2026 and 2025:

Cash and Cash Equivalents

Cash and cash equivalents primarily represent cash on hand, bank deposits and fixed deposits with original maturities of less than three months. The Company maintains bank accounts in Hong Kong, Singapore, Australia, the PRC, Japan, the United States and Malaysia. Cash balances in bank accounts in Hong Kong are insured under the Deposit Protection Scheme introduced by the Hong Kong Government for a maximum amount of $102,041 (HK$800,000). Balances maintained with banks in Singapore are insured under the Deposit Insurance Scheme introduced by the Singapore Deposit Insurance Corporation Limited for the maximum insured amount of $77,519 (SG$100,000) for each depositor at one bank. Balances maintained with banks in Australia are insured under the Financial Claims Scheme introduced by the Australian Government for the maximum insured amount of $176,056 (AUD250,000) for each account holder at any bank, building society, credit union or other authorized deposit-taking institution that is incorporated in Australia and authorized by the Australian Prudential Regulation Authority. The bank deposits with financial institutions in the PRC are insured by the government authority up to $73,746 (RMB500,000) for each depositor at one bank. Balances maintained with banks in Japan are generally insured by the Deposit Insurance Corporation of Japan for a maximum amount of $62,208 (JPY10 million) for each depositor at one bank. The bank deposits with financial institutions in the United States are insured by the government authority up to US$250,000 per depositor, per insured bank, for each ownership category. Balances maintained with banks in Malaysia are insured under the Deposit Insurance System introduced by Perbadanan Insurans Deposit Malaysia for a maximum amount of $61,425 (RM250,000) per depositor, per member bank. These balances maintained by the Company may at times exceed the insured limits. Otherwise, these balances are not insured by the Federal Deposit Insurance Corporation or other programs.

Accounts Receivable, net

Accounts receivable, net, are recognized and carried at original invoiced amount less an allowance for current expected credit losses (“CECL”).

Accounts receivable are recognized in the period when the Company has provided services to its customers and when its right to consideration is unconditional. The Company adopted ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, including certain subsequent amendments, transitional guidance and other interpretive guidance within ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-11, ASU 2020-02 and ASU 2020-03 (collectively, including ASU 2016-13, “ASC 326”). ASC 326 introduces an approach based on expected losses to estimate the allowance for CECL, which replaces the previous incurred loss impairment model. The Company has adopted the loss rate methodology to estimate historical losses on accounts receivable and the Company uses the aging schedule method in the current expected credit losses model (“CECL model”) to estimate the CECL. The Company’s estimation of allowance for CECL considers factors such as historical credit loss experience, age of receivable balances, current market conditions, reasonable and supportable forecasts of future economic conditions, in combination with assessing receivable collectability on an individual basis, and applying current situation adjustment. Accounts receivable balances are written off after all collection efforts have been exhausted. For the years ended June 30, 2026, 2025 and 2024, no allowance for CECL related to accounts receivable was recorded.

Prepayments, Deposits and Other Receivables

Current prepayments represent advance payments made to service providers for future services and are short-term in nature. Non-current prepayments represent advance payments made to suppliers for the purchase of property and equipment and operating lease right-of-use assets. The Company initially recognizes prepayments for property and equipment and operating lease right-of-use assets when cash is advanced to the suppliers. Subsequently, the Company derecognizes and reclassifies the prepayments for property and equipment and operating lease right-of-use assets to property and equipment and operating lease right-of-use assets, respectively, when control over the property and equipment and operating lease right-of-use assets is transferred to and obtained by the Company. Prepayments are reviewed periodically to determine whether their carrying value has become impaired. The Company considers the assets to be impaired if the realizability of the prepayments becomes doubtful. For the years ended June 30, 2026, 2025 and 2024, there was no impairment recorded as the Company considers all of the prepayments fully realizable.

Deposits primarily include rental deposits and utility deposits. Other receivables primarily represent advances to third parties. Deposits and other receivables are subject to the measurement of CECL within the scope of ASC Topic 326.

Consumption Tax

Japanese consumption tax, including local consumption tax, is levied on taxable transactions at a standard rate of 10%, with a reduced rate of 8% applicable to certain qualifying items. Creditable input consumption tax on eligible purchases and imports is offset against output consumption tax on taxable sales in accordance with applicable tax regulations. The resulting net amount recoverable from or payable to the tax authorities is recognized as consumption tax receivables or consumption tax payables, respectively. All of the consumption tax returns filed by the Company’s subsidiaries in Japan remain subject to examination by the tax authorities for seven years from the date of filing.

Loans Receivable, net

Loans receivable, net consist of term loans to third parties. The term loans are recorded at amortized cost, net of allowances for CECL. The Company maintains an allowance for CECL to reserve for potentially uncollectible loans receivable. The Company measures interest income for all loans receivable using the interest method, which is based on the effective yield of the loans rather than the stated coupon rate. Loans receivable with collection periods of less than one year are included in loans receivable, net, current, and loans receivable with collection periods of more than one year are included in loans receivable, net, non-current, in the consolidated balance sheets.

Allowance for CECL

Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments requires entities to use a current lifetime expected credit losses methodology to measure impairments of certain financial assets. The Company applies this methodology to its financial assets measured at amortized cost, including accounts receivable, loans receivable, deposits and other receivables and amounts due from related parties, as described in the respective policies in this note.

Deferred IPO costs

Deferred IPO costs consist primarily of direct expenses paid to attorneys, consultants, underwriters, and other parties related to the Company’s IPO. Pursuant to ASC 340-10-S99-1, IPO costs directly attributable to an offering of equity securities are deferred and are charged against the gross proceeds of the offering as a reduction of capital.

Inventories

Inventories, which primarily consist of AI servers and related IT equipment, are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. The cost of inventory includes the actual purchase price of the equipment from suppliers plus directly attributable inbound freight and handling charges required to bring the inventory to its present location. The Company evaluates the carrying value of its inventory at each reporting date. If the net realizable value falls below the recorded cost due to obsolescence, damage, or declining market prices, the Company records a write-down as a charge to the cost of revenue. Once recorded, these write-downs are not reversed in future periods, establishing a new cost basis for the equipment.

Lease

The Company accounts for its leases in accordance with FASB ASC Topic 842, Leases. The Company determines if an arrangement is or contains a lease at contract inception. Operating lease right-of-use (“ROU”) assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. The initial measurement of ROU assets also includes any qualifying initial direct costs incurred defined under ASC 842, and lease payments made at or before commencement, less any lease incentives received. All other pre-execution or negotiation costs are expensed as incurred.

Operating leases are included in operating lease right-of-use assets, operating lease liabilities, current, and operating lease liabilities, non-current in the Company’s consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. The operating lease ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The Company’s lease terms may include options to extend or terminate the lease. Renewal options are considered within the ROU assets and lease liabilities when it is reasonably certain that the Company will exercise that option. Lease expenses for lease payments are recognized on a straight-line basis over the lease term.

For operating leases with a term of one year or less, the Company has elected not to recognize a lease liability or ROU asset on its consolidated balance sheets. Instead, it recognizes the lease payments as expenses on a straight-line basis over the lease term.

The Company reviews the impairment of its ROU assets consistent with the approach applied for its other long-lived assets. The Company reviews the recoverability of its long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on its ability to recover the carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations. The Company has elected to include the carrying amount of operating lease liabilities in any tested asset group and include the associated operating lease payments in the undiscounted future pre-tax cash flows. For the years ended June 30, 2026, 2025 and 2024, the Company did not have any impairment loss against its operating lease ROU assets.

Property and Equipment, net

Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization are provided for on a straight-line basis over the estimated useful lives of the related assets with no residual value. The estimated useful lives are as follows:

Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in other income (expense) in the consolidated statements of operations and comprehensive loss.

The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives.

Impairment of Long-Lived Assets

The Company reviews the recoverability of its long-lived assets, such as property and equipment, finite-lived intangible assets and operating lease right-of-use assets, whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of an asset or asset group may no longer be recoverable. When these events occur, the Company measures impairment by comparing the carrying value of the asset group to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss, which is the excess of carrying amount over the fair value of the assets, using the expected future discounted cash flows. For the years ended June 30, 2026, 2025 and 2024, no impairment of long-lived assets was recognized.

Investments in Equity Securities and Short-Term Investments

Investments in equity securities and short-term investments mainly comprise equity investments in publicly traded companies, privately-held companies and structured equity-linked notes.

Equity investments in publicly traded companies are reported at fair value as equity investment with readily determinable fair value. Realized and unrealized gains and losses from fair value changes for the years ended June 30, 2026, 2025 and 2024 are recognized in other income (expense) in the consolidated statements of operations and comprehensive loss.

Structured equity-linked notes consist of hybrid financial instruments (such as fixed coupon notes) whose return and principal repayment are tied to the performance of underlying equity securities. The Company has elected the fair value option under ASC 825 for these structured notes to mitigate accounting complexity. Accordingly, these notes are recorded at fair value at each reporting date based on observable market inputs, and all realized and unrealized gains and losses resulting from changes in fair value, as well as periodic coupon interest earned, are recognized in other income (expense), net in the consolidated statements of operations and comprehensive loss.

For investments in common stock issued by privately-held companies over which the Company does not have significant influence, as these equity securities do not have readily determinable fair values, the Company measures these equity investments at cost, less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer (referred to as the measurement alternative). All gains and losses on these equity securities without readily determinable fair value, realized and unrealized, are recognized in other income (expense) in the consolidated statements of operations and comprehensive loss.

Management evaluates the investments in privately-held companies without readily determinable fair value for impairment periodically, or when events or circumstances indicate that the carrying amount may not be recoverable. For investments without readily determinable fair values, management performs a qualitative assessment of the fair value of the equity interest in comparison to its carrying amount to determine if there is an indication of potential impairment. If such indication exists, management estimates the fair value of the investment, and records an impairment in the consolidated statements of operations and comprehensive loss to the extent the carrying amount exceeds the fair value. Management applies significant judgments in the impairment assessment for these equity investments when: (i) determining as to whether any impairment indicators exist during the year; and (ii) estimating the impairment amount if an impairment exists. These judgments consider various factors and events including: a) significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of the investees; b) significant adverse change in the regulatory, economic, or technological environment of the investees; c) significant adverse change in the general market condition of either the geographical area or the industry in which the investees operate; d) bona fide offer to purchase, an offer by the investee to sell, or a completed auction process for the same or similar investment for an amount less than the carrying amount of that investment; e) factors that raise significant concerns about the investees’ ability to continue as a going concern; f) factors that raise significant concerns about the performance of new products and g) valuation methods and key estimates in the determination of the impairment amounts based on the severity and duration of the impairment indicator and the existence of any positive or mitigating factors.

Investments in equity method investees

The Company applies the equity method to account for equity investments in common stock or in-substance common stock, according to ASC 323 “Investments — Equity Method and Joint Ventures,” over which it has significant influence but does not own a controlling financial interest, unless the fair value option is elected for an investment.

An investment in in-substance common stock is an investment in an entity that has risk and reward characteristics that are substantially similar to that entity’s common stock. The Company considers subordination, risks and rewards of ownership and obligation to transfer value when determining whether an investment in an entity is substantially similar to an investment in that entity’s common stock.

Under the equity method, the Company’s share of the post-acquisition profits or losses of the equity method investees is recognized in “share of results of equity method investees” in the consolidated statements of operations and comprehensive loss and its share of post-acquisition movements in accumulated other comprehensive income is recognized in other comprehensive income. The excess of the carrying amount of the investment over the underlying equity in net assets of the equity method investee generally represents goodwill and intangible assets acquired. When the Company’s share of losses of the equity method investee equals or exceeds its interest in the equity method investee, the Company does not recognize further losses, unless the Company has incurred obligations or made payments or guarantees on behalf of the equity method investee.

The Company continually reviews its investments in equity method investees to determine whether a decline in fair value below the carrying value is other-than-temporary. The primary factors the Company considers in its determination include the severity and the length of time that the fair value of the investment is below its carrying value; the financial condition, the operating performance and the prospects of the equity method investee; the geographic region, market and industry in which the equity method investee operates; and other company specific information such as recent financing rounds completed by the equity method investee. If the decline in fair value is deemed to be other-than-temporary, the carrying value of the investment in the equity method investee is written down to its fair value.

 Intangible assets

Intangible assets consist of a distribution license and an inventory system.

Finite-lived intangible assets consist of the Company’s inventory system. This asset is amortized using the straight-line method over its estimated useful life of three years. The Company reviews finite-lived intangible assets for impairment as part of its long-lived assets policy described above.

Indefinite-lived intangible assets consist of a distribution license acquired through an asset acquisition. This asset is not subject to amortization as there are no legal, regulatory, or contractual factors that limit its useful life. The Company evaluates indefinite-lived intangible assets for impairment on an annual basis as of June 30, or more frequently if events or changes in circumstances suggest that the fair value of the asset is below its carrying value.

The Company has the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount. If the Company concludes from this qualitative assessment that it is more likely than not that the asset is impaired, or if the Company elects to bypass the qualitative assessment, a quantitative impairment test is performed. The quantitative test compares the fair value of the asset with its carrying amount. If the carrying amount exceeds its fair value, an impairment loss equal to the difference is recognized in the consolidated statements of operations.

Application of the indefinite-lived intangible asset impairment test requires significant management judgment to estimate fair value. These judgments include projecting future cash flows, determining appropriate discount rates, and making other market assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value and the resulting impairment conclusions.

Accounts Payable

Accounts payable primarily represent amounts payable to suppliers for the purchase of inventories and materials.

Accrued Expenses and Other Payables

Accrued expenses and other payables primarily include accrued payroll and employee benefits expenses and accrued expenses for operations in the ordinary course of business.

Contingent Consideration Payable

The Company’s acquisition agreements included contingent consideration arrangements, which were based on the repayments of loans receivable from the seller within 365 days from the date of the respective acquisition agreements. For each transaction, the Company estimated the fair value of contingent consideration payable as part of the initial purchase price and recorded the estimated fair value of contingent consideration payable as a liability. The fair value of contingent consideration payable was remeasured at each reporting date based on changes to key inputs. Fair value changes of contingent consideration payable were recognized in other income (expense) in the consolidated statements of operations and comprehensive loss. See Note 13 for the subsequent settlement and conclusion of these arrangements.

Other Borrowings

Borrowings are initially recognized at fair value, net of upfront fees incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in the consolidated statements of operations and comprehensive loss over the period of the borrowings using the effective interest method.

Contract liabilities

Contract liabilities primarily include advances received from customers related to unsatisfied performance obligations, which will be recognized as revenues upon the satisfaction of performance obligations through the transfer of the related promised goods or services to customers.

Revenue Recognition

The Company adopted the revenue standard Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers. The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle:

Sales of AI server and related IT equipment and related warranties and maintenance services

For contracts that contain multiple performance obligations (such as bundled sales of AI servers and related IT equipment and service-type maintenance agreements), the Company allocates the transaction price to each distinct performance obligation based on its relative standalone selling price. Standalone selling prices are generally determined based on the prices at which the Company sells those goods or services separately in stand-alone transactions.

The Company generally recognizes the revenue from the sales of AI server and related IT equipment on a gross basis as the Company has control of the products before they are delivered to the Company’s customers. In drawing this conclusion, the Company considered various factors, including latitude in establishing the sales price, discretion in the supplier selection and that the Company is normally the primary obligor in the Company’s sales arrangements.

Revenue from the sales of AI server and related IT equipment is recognized at a point in time when the Company’s customers obtain control of the AI server and related IT equipment, which is typically upon delivery of the promised goods to an agreed-upon delivery point. Shipping, handling and standard installation activities are performed concurrently upon delivery and are considered to be fulfillment activities rather than separate performance obligations. The Company consistently elects to treat these post-transfer activities as fulfillment costs across all contracts. The Company’s sales terms provide no right of return outside of a standard quality policy and returns have not been significant.

The Company evaluates its product warranties and maintenance commitments under ASC 606 to determine whether they represent assurance-type or service-type warranties.

As of June 30, 2026, the aggregate transaction price allocated to remaining unfulfilled performance obligations under long-term service-type warranties and maintenance agreements was $853,590. The Company expects to recognize this remaining transaction price over the passage of time on a straight-line basis as the underlying maintenance stand-by commitments are systematically satisfied, with $296,493 to be recognized over the next 12 months (fiscal year 2027) and $557,097 to be recognized over subsequent periods (fiscal years 2028-2029).

Provision of cloud computing and AI model API services

The Company generally recognizes the revenue from the provision of cloud computing and AI model API services on a gross basis as the Company acts as the principal service provider and has control over the service scope, pricing, and technical architecture before the services are delivered to the Company’s customers. Revenue from the provision of cloud computing and AI model API services is recognized over time as the Company’s customers simultaneously receive and consume the benefits provided by the Company’s performance and measured by actual usage. Contractual arrangements typically feature usage-based pricing subject to a contractually mandated monthly minimum consumption commitment. For contracts containing tiered discount thresholds, variable consideration is estimated and recognized based on expected usage, and applicable discounts or volume rebates reduce revenue for the related services when recognized, with estimates updated at each period end.

Routine account provisioning, technical support, and value-added configuration services are considered to be fulfillment activities integrated within the core service delivery ecosystem and are not, therefore, considered to be separate performance obligations. Refundable security deposits received from customers are recorded as deposits received included in other payables. Upfront advances or prepayments received from customers for future service consumption are recorded as contract liabilities and recognized as revenue when the performance obligations are satisfied.

Design and fit-out services for discontinued operations

The Company enters into agreements with clients that create enforceable rights and obligations and for which it is probable that the Company will collect the consideration to which it will be entitled as services transfer to the customer. It is customary practice for the Company to have the agreements with its customers in writing, orally, or in accordance with other customary business practices. The Company recognizes revenue based on the consideration specified in the applicable agreement.

The contracts which the Company enters into with the clients are fixed price and provide for milestone billings based upon the attainment of specific project objectives to ensure the Company meets its contractual requirements. Additionally, contracts may include retentions or holdbacks paid at the end of a project to ensure that the Company meets the contract requirements. However, since the customer does not have the option to purchase the warranty separately and there are no additional services to the customer during the retention period but to ensure all goods and services meet the criteria as specified in the contract, such warranty shall not be accounted for as a separate performance obligation. The Company historically incurred minimal costs during the retention period; accordingly, the Company did not expect any significant liability to be incurred and no provision was made. The Company does not assess whether a contract contains a significant financing component if the Company expects, at contract inception, that the period between payment by the customers and the transfer of promised services to the customers will be less than one year.

The Company identifies the delivery of design and fit-out services to the customer to be the performance obligation in the contract. Since the Company has concluded that the promises to be delivered on the contract would be one single performance obligation, no allocation of the transaction price is required and expected. As a professional interior design and fit-out service provider, the Company recognizes revenue based on the Company’s effort or inputs to the satisfaction of a performance obligation over time as work progresses because of the continuous transfer of control to the customer and the Company’s right to bill the customer as costs are incurred.

The Company’s contract with the customer has payment terms specified based upon certain conditions completed. The Company generally requires an initial payment from the customer upon signing of the contract prior to the commencement of the project, which usually represents approximately 20% to 50% of the total contract sum. The Company issues invoices for interim payments at different stages of the project. The final invoice is generally issued shortly before or immediately after project completion. The Company’s customers are required to pay the Company at different billing stages over the contract period, as such, the Company believes the progress payments limit the Company’s exposure to credit risk and that the Company would be able to collect substantially all of the consideration gradually at different stages. The timing of the satisfaction of the Company’s performance obligations is based upon the cost-to-cost measure of progress method, which is generally different than the timing of unconditional right of payment, and is based upon certain conditions completed as specified in the contract. The timing between the satisfaction of the Company’s performance obligations and the unconditional right of payment would contribute to contract assets and contract liabilities.

The Company uses the ratio of actual costs incurred to total estimated costs since costs incurred (an input method) represent a reasonable measure of progress towards the satisfaction of a performance obligation in order to estimate the portion of revenue earned. This method faithfully depicts the transfer of value to the customer when the Company is satisfying a performance obligation that entails a number of interrelated tasks or activities for a combined output that requires the Company to coordinate the work of employees and subcontractors. Contract costs typically include direct labor, subcontract and consultant costs, materials and indirect costs related to contract performance. Changes in estimated costs to complete these obligations result in adjustments to revenue on a cumulative catch-up basis, which causes the effect of revised estimates to be recognized in the current period. Changes in estimates can routinely occur over the contract term for a variety of reasons including, changes in scope, unanticipated costs, delays or favorable or unfavorable progress than original expectations. When the outcome of the contract cannot be reasonably measured, revenue is recognized only to the extent of contract costs incurred that are expected to be recovered. In situations where the estimated costs to perform exceed the consideration to be received, the Company accrues the entire estimated loss during the period the loss becomes known.

The Company’s contracts may contain variable consideration in the form of unpriced or pending change orders or claims that either increase or decrease the contract price. Variable consideration is generally estimated using the expected value method but may from time to time be estimated using the most likely amount method depending on the circumstance. Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur or when the uncertainty associated with the variable consideration is resolved. Estimates of variable consideration are based upon historical experience and known trends.

The Company recognizes claims against vendors, sub-consultants, subcontractors and others as a reduction in costs when the contract establishes enforceability, and the amounts of recovery are reasonably estimable and probable. Reductions in costs are recognized at the lesser of the amount management expects to recover or costs incurred.

Cost of Revenue

Cost of revenue consists primarily of expenses directly related to the procurement and assembly of AI servers and related IT equipment and the direct business service fees. The Company capitalizes the purchase price of components from suppliers and associated inbound freight charges into the asset value of inventory. The costs directly utilized in production facilities and the business service fees are recognized within cost of revenue as incurred based on normal operating capacity. Capitalized product inventory costs are recognized as cost of revenue on the consolidated statements of operations and comprehensive loss at the point in time when control of the finished goods transfers to the customer, typically upon delivery. Shipping, handling, and other direct fulfillment expenses incurred are classified as fulfillment costs under ASC 606 and recognized within cost of revenue in the same period as the corresponding revenue. Inventory write-downs or provisions for obsolescence are charged directly to cost of revenue in accordance with ASC 330. Cost of service revenue consists of business service fees, which are recognized within cost of revenue as incurred as the services are rendered.

Borrowing Costs

All borrowing costs are recognized in interest expense in the consolidated statements of operations and comprehensive loss in the period in which they are incurred.

Advertising Costs

The Company expenses advertising costs as incurred, and such costs are included in selling and marketing expenses. Advertising costs for the years ended June 30, 2026, 2025 and 2024 totaled $313,179, $584,137 and nil, respectively.

Employee Benefit Plan

Employees of the Company located in Hong Kong, Singapore, Japan and the PRC participate in a compulsory saving scheme (pension fund) for the retirement of residents in Hong Kong, Singapore, Japan and the PRC. Employees are required to contribute monthly to fund schemes provided by approved private or governmental organizations, according to their salaries and the period of employment. The Company is required to contribute to the plan based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government.

Share-based compensation

Share-based awards granted are measured at fair value on grant date and share-based compensation expense is recognized (i) immediately at the grant date if no vesting conditions are required, or (ii) using the straight-line attribution method over the requisite service period. The fair values of restricted stock units (“RSUs”) and restricted shares are determined with reference to the fair value of the underlying shares and the fair value of share options is generally determined using the binomial option pricing model. The Company accounts for forfeitures of unvested awards as they occur. Accordingly, when an employee terminates service prior to the vesting date, any previously recognized share-based compensation expense associated with the unvested portion of the award is fully reversed in the period of termination. Share-based compensation expense, when recognized, is charged to the consolidated statements of operations and comprehensive loss with the corresponding credit to share capital for the RSUs and additional paid-in capital for the share options to the extent that such awards are to be settled only in stock.

On each measurement date, the Company reviews internal and external sources of information to assist in the estimation of various attributes to determine the fair value of the share-based awards granted by the Company, including the fair value of the underlying shares, expected life and expected volatility.

Share-based compensation with cash settlement features is classified as liability awards recorded in accrued expenses and other payables in the consolidated balance sheets. The percentage of the fair value that is accrued as compensation cost at the end of each period is based on the percentage of the requisite service that has been rendered at that date. Changes in the fair value of liability-classified awards that occur during the requisite service period are recognized as compensation cost under general and administrative expenses in the consolidated statements of operations and comprehensive loss over that period. 

Income Taxes

The Company accounts for income taxes under ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases.

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 income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This guidance also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures.

Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred.

The Company believes there were no uncertain tax positions as of June 30, 2026 and 2025, respectively. The Company does not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months. The Company is not currently under examination by an income tax authority, nor has it been notified that an examination is contemplated.

Loss Per Share

The Company computes loss per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is computed by dividing income available to ordinary shareholders of the Company by the weighted average ordinary shares outstanding during the period. Accretion of the redeemable noncontrolling interests is deducted from the net loss to arrive at net loss attributable to the Company’s ordinary shareholders.  Diluted EPS takes into account the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised and converted into ordinary shares. As of June 30, 2026, potentially dilutive securities (including share options, warrants and restricted share units (June 30, 2025: share options, warrants and restricted share units); see Notes 18 and 19) were excluded from the computation of diluted EPS because their inclusion would be anti-dilutive due to the net loss for the periods. As a result, basic and diluted EPS are the same for the years ended June 30, 2026 and 2025. As of June 30, 2024, there were no potentially dilutive securities outstanding.

Comprehensive Loss

Comprehensive loss consists of two components, net loss and other comprehensive income. Other comprehensive income refers to revenue, expenses, gains and losses that under U.S. GAAP are recorded as an element of shareholders’ equity but are excluded from net income. Other comprehensive income consists of foreign currency translation adjustments resulting from the Company translating its financial statements from functional currency into reporting currency.

Commitments and Contingencies

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

If the assessment of a contingency indicates that it is probable that a material loss is incurred and the amount of the liability can be estimated, then the estimated liability is accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed.

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

Related parties

Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence, such as a family member or relative, shareholder, or a related corporation.

Business combination

The Company accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations. Transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable assets and liabilities acquired or assumed are measured separately at their fair values as of the acquisition date, irrespective of the extent of any noncontrolling interests. The excess of (i) the total costs of acquisition, fair value of the noncontrolling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. During the measurement period, which can be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded as gain or loss on the consolidated statements of operations and comprehensive loss.

In a business combination achieved in stages, the Company re-measures the previously held equity interests in the acquiree when obtaining control at its acquisition date fair value and the re-measurement gain or loss, if any, is recognized in the consolidated statements of operations and comprehensive loss.

Noncontrolling interests acquired through a business combination are recognized at fair value at the acquisition date, which is estimated with reference to the purchase price per share as of the acquisition date.

When there is a change in ownership interests or a change in contractual arrangements that results in a loss of control of a subsidiary, the Company deconsolidates the subsidiary from the date control is lost. Any retained noncontrolling investment in the former subsidiary is measured at fair value and is included in the calculation of the gain or loss upon deconsolidation of the subsidiary.

Asset acquisition

When the Company acquires other entities, if the assets acquired and liabilities assumed do not constitute a business, the transaction is accounted for as an asset acquisition. Assets are recognized based on their cost, which generally includes the transaction costs of the asset acquisition. The cost of a group of assets acquired in an asset acquisition is allocated to the individual identifiable assets acquired or liabilities assumed based on their relative fair values and does not give rise to goodwill.

Noncontrolling interests

For the Company’s non-wholly owned subsidiaries, noncontrolling interests are recognized to reflect the portion of the equity, which is not attributable, directly or indirectly, to the Company as the controlling shareholder. When the noncontrolling interest is contingently redeemable upon the occurrence of a conditional event, which is not solely within the control of the Company, the noncontrolling interest is classified as mezzanine equity. The Company recognizes changes in the redemption value immediately as they occur and adjusts the carrying amount of the redeemable noncontrolling interests to equal the redemption value at the end of each reporting period. The accretions are recorded against retained earnings, or in the absence of retained earnings, by charges against additional paid-in capital. Once additional paid-in capital has been exhausted, additional charges are recorded by increasing the accumulated deficit. Consolidated net loss in the consolidated statements of operations and comprehensive loss includes net loss attributable to noncontrolling interests and mezzanine equity holders when applicable.

Net loss and total comprehensive loss attributable to mezzanine equity holders are included in net loss and total comprehensive loss attributable to noncontrolling interests in the consolidated statements of operations and comprehensive loss, while it is excluded from the consolidated statements of changes in shareholders’ equity. During the years ended June 30, 2026, 2025 and 2024, net loss attributable to mezzanine equity holders amounted to $1,812,473, nil and nil, respectively, and the total comprehensive loss attributable to mezzanine equity holders amounted to $1,815,362, nil and nil, respectively. Cash flows related to transactions with noncontrolling interests are presented under financing activities in the consolidated statements of cash flows.  

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired in a business combination.

Goodwill is not depreciated or amortized but is tested for impairment on an annual basis as of June 30, and in between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. In accordance with ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, issued by the Financial Accounting Standards Board (“FASB”), the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, as a result of its qualitative assessment, the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise, no further testing is required. The quantitative impairment test consists of a comparison of the fair value of each reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss equal to the difference between the fair value of the reporting unit and its carrying amount will be recorded.

Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit.

Significant Risks

Currency Risk

The Company’s operating activities are transacted in US$, HK$, RMB, JPY and SG$. Foreign exchange risk arises from future commercial transactions, recognized assets and liabilities and net investments in foreign operations. The Company considers that the foreign exchange risk in relation to transactions denominated in HK$ with respect to the US$ is not significant as the HK$ is pegged to the US$. However, the Company is exposed to market-driven foreign exchange volatility arising from its operations in the PRC, Japan and Singapore, which are denominated in RMB, JPY and SG$, respectively. The Company does not currently enter into any derivative financial instruments or hedging arrangements to mitigate these specific foreign currency exposures. Management monitors foreign exchange rates closely across all active operating jurisdictions and will consider implementing formal hedging strategies should such risks materially impact the Company’s liquidity.

In the PRC, foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (the “PBOC”). Remittances in currencies other than RMB by the Company in the PRC must be processed through the PBOC or other PRC foreign exchange regulatory bodies and require certain supporting documentation in order to effect the remittance. If the foreign exchange control system prevents the Company from obtaining sufficient foreign currencies to satisfy its currency demands, the Company may not be able to pay dividends in foreign currencies and the Company’s ability to fund its business activities that are conducted in foreign currencies could be adversely affected.

Concentration and Credit Risk

Financial instruments that potentially subject the Company to the concentration of credit risks consist of cash and cash equivalents, accounts receivable, loans receivable and other receivables. The maximum exposures of such assets to credit risk are their carrying amounts as of the balance sheet dates.

The Company deposits its cash and cash equivalents with reputable banks located in Hong Kong, Singapore, Australia, the PRC, Japan, the United States and Malaysia. As of June 30, 2026 and 2025, $98,936,510 and $17,000,813 were deposited with these banks. The Deposit Protection Scheme introduced by the Hong Kong Government insured each depositor at one bank for a maximum amount of $102,041 (HK$800,000). Balances maintained with banks in Singapore are insured under the Deposit Insurance Scheme introduced by the Singapore Deposit Insurance Corporation Limited for the maximum insured amount of $77,519 (SG$100,000) for each depositor at one bank. Balances maintained with banks in Australia are insured under the Financial Claims Scheme introduced by the Australian Government for the maximum insured amount of $176,056 (AUD250,000) for each account holder at any bank, building society, credit union or other authorized deposit-taking institution that is incorporated in Australia and authorized by the Australian Prudential Regulation Authority. The bank deposits with financial institutions in the PRC are insured by the government authority up to $73,746 (RMB500,000) for each depositor at one bank. Balances maintained with banks in Japan are generally insured by the Deposit Insurance Corporation of Japan for a maximum amount of $62,208 (JPY10 million) for each depositor at one bank. The bank deposits with financial institutions in the United States are insured by the government authority up to US$250,000 per depositor, per insured bank, for each ownership category. Balances maintained with banks in Malaysia are insured under the Deposit Insurance System introduced by Perbadanan Insurans Deposit Malaysia for a maximum amount of $61,425 (RM250,000) per depositor, per member bank. These balances maintained by the Company may at times exceed the insured limits. Otherwise, these balances are not insured by the Federal Deposit Insurance Corporation or other programs. As of June 30, 2026 and 2025, the Company had cash balance of $78,194,038 and $11,345,007 which was maintained at banks covered by Deposit Protection Scheme in Hong Kong, and of $77,646,451 and $10,939,077 which was subject to credit risk, respectively. As of June 30, 2026 and 2025, the Company had cash balance of $17,481,201 and $5,655,774 which was maintained at banks covered by Deposit Insurance Scheme in Singapore, and of $17,023,497 and $5,421,774 which was subject to credit risk, respectively. As of June 30, 2026 and 2025, the Company had cash balance of nil and $32, which was maintained at banks covered by Financial Claims Scheme in Australia, and of nil and nil which was subject to credit risk, respectively. As of June 30, 2026 and 2025, the Company had cash balance of $625,320 and nil, which was maintained at banks covered by the government authority in the PRC, and of $394,178 and nil which was subject to credit risk, respectively. As of June 30, 2026 and 2025, the Company had cash balance of $2,135,320 and nil, which was maintained at banks covered by Deposit Insurance Corporation of Japan in Japan, and of $2,073,112 and nil which was subject to credit risk, respectively. As of June 30, 2026 and 2025, the Company had cash balance of $500,114 and nil, which was maintained at banks covered by Federal Deposit Insurance Corporation in the United States, and of $250,114 and nil which was subject to credit risk, respectively. As of June 30, 2026 and 2025, the Company had cash balance of $517 and nil, which was maintained at banks covered by Deposit Insurance System introduced by Perbadanan Insurans Deposit Malaysia, and of nil and nil which was subject to credit risk, respectively. The Company believes that no significant credit risk exists as these banks have high credit quality and the Company has not incurred any losses related to such deposits.

For the credit risk related to accounts receivable, loans receivable and other receivables, the Company adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The Company performs periodic credit evaluations of its customers’ and counterparties’ financial condition and generally does not require collateral. The Company establishes an allowance for CECL based upon estimates, factors surrounding the credit risk of specific customers and counterparties and other information. The allowance amounts for the accounts receivable were immaterial for all periods presented. Management believes that its contract acceptance, billing, and collection policies are adequate to minimize material credit risk to accounts receivable. During the year ended June 30, 2026, management conducted a comprehensive credit risk and forward-looking economic assessment of the loan receivable portfolio and recognized credit loss expense on loans receivable of $9,157,815, including the seller loan acquired in the SuperX Industries acquisition. See Notes 6 and 13 for the assessment, the full and final seller loan and contingent consideration settlement and the related non-cash write-off, and Note 27 for the subsequent collection of most of the other loans receivable. The Company seeks to maintain strict control over its outstanding receivables. Overdue balances are reviewed regularly by the Directors.

The Company has a concentration of its revenue and accounts receivable with specific customers.

For the year ended June 30, 2026, one customer accounted for approximately 90.3% of the Company’s total revenue. For the year ended June 30, 2025, one customer accounted for approximately 100.0% of the Company’s total revenue. For the year ended June 30, 2024, the Company did not record any revenue.

As of June 30, 2026, three customers’ accounts receivable accounted for 32.5%, 31.1% and 28.4% of the total accounts receivable, net, respectively. As of June 30, 2025, the Company did not record any accounts receivable.

For the year ended June 30, 2026, one supplier accounted for approximately 56.5% of the Company’s total purchases. For the year ended June 30, 2025, one supplier accounted for 100.0% of the Company’s total purchases. For the year ended June 30, 2024, the Company did not record any purchases.

As of June 30, 2026, one supplier’s accounts payable accounted for 93.7% of the total accounts payable. As of June 30, 2025, the Company did not record any accounts payable.

Interest rate risk

Fluctuations in market interest rates may negatively affect the Company’s financial condition and results of operations. The Company is exposed to cash flow interest rate risk on cash deposit and fair value interest rate risk on loans receivable and fixed rate other borrowings and these risks due to changes in interest rates are not material to the Company. The Company has not used any derivative financial instruments to manage the interest rate risk exposure.

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

Typically, the Company ensures that it has sufficient cash on demand to meet expected operational expenses for a period of twelve months, including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.

Recent Accounting Pronouncements

The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. Under the Jumpstart Our Business Startups Act of 2012, as amended (the “JOBS Act”), the Company meets the definition of an emerging growth company, or EGC, and has elected the extended transition period for complying with new or revised accounting standards, which delays the adoption of these accounting standards until they would apply to private companies.

Recently adopted accounting pronouncements

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which requires disclosure of incremental income tax information within the rate reconciliation and expanded disclosures of income taxes paid, among other disclosure requirements. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. The Company adopted this ASU from July 1, 2025, which did not have a material impact on the Company’s consolidated financial statements.

Recent accounting pronouncements not yet adopted

In November 2024, the FASB issued ASU No. 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, and issued subsequent amendment within ASU No. 2025-01. The amendments in this update enhance disclosures about a public business entity’s expense and provide more detailed information about the types of expenses included in certain notes in the consolidated financial statements. ASU No. 2024-03 and ASU No. 2025-01 are effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The amendments may be applied prospectively to reporting periods after the effective date or retrospectively to all periods presented in the consolidated financial statements. The Company’s management is currently evaluating any new disclosures that may be required upon adoption of ASU No. 2024-03 and ASU No. 2025-01.

In May 2025, the FASB issued ASU No. 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810): Accounting Acquirer in a Business Combination Involving a Variable Interest Entity. This ASU clarifies that when a business that is a variable interest entity (“VIE”) is acquired primarily with equity interests, the determination of the accounting acquirer should follow ASC 805 rather than defaulting to the primary beneficiary under ASC 810. The standard is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. Early adoption is permitted. The Company’s management is currently evaluating the impact of adopting this ASU 2025-03 on its consolidated financial statements.

In May 2025, the FASB issued ASU No. 2025-04, Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Clarifications to Share-Based Consideration Payable to a Customer. This ASU clarifies how entities account for share-based consideration payable to a customer. The ASU requires customer awards with vesting conditions tied to purchases to be treated as performance conditions, eliminates the forfeiture policy election, and states that the variable consideration constraint under ASC 606 does not apply to these awards. The standard is effective for annual periods beginning after December 15, 2026, with early adoption permitted. The Company’s management is currently evaluating the impact of adopting this ASU 2025-04 on its consolidated financial statements.

In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This ASU provides a practical expedient for all entities related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under Topic 606. The standard is effective for annual periods beginning after December 15, 2025. Early adoption of ASU 2025-05 is permitted and should be applied prospectively. The Company’s management is currently evaluating the impact of adopting this ASU 2025-05 on its consolidated financial statements.

Except for the above-mentioned pronouncements, there are no other recently issued accounting standards that will have a material impact on the consolidated financial position, statements of operations and cash flows.

1. Organization and Business Description

Organization and Nature of Operations

SuperX AI Technology Limited (the “Company”) is a limited liability company established under the laws of the British Virgin Islands on August 25, 2021. It is a holding company with no business operations of its own. The Company changed its name from Junee Limited to Super X AI Technology Limited on June 2, 2025. The Company changed its name from Super X AI Technology Limited to SuperX AI Technology Limited on October 10, 2025. Unless the context otherwise requires, references to the “Company” in these consolidated financial statements include SuperX AI Technology Limited and its subsidiaries.

The Company, through its subsidiaries, is a global AI infrastructure solutions provider. The Company’s products and services comprise high-performance AI servers and related IT equipment, related deployment and maintenance services, and AI cloud computing and AI model API services, together with AI data center solutions, including 800 volt direct current (800VDC) power and high-density liquid cooling solutions, which are offered through its joint ventures and remained under development as of June 30, 2026. During the year ended June 30, 2026, the Company has been in a strategic transition period, shifting its core business from a legacy Hong Kong interior fit-out services provider to a full-stack global AI infrastructure solutions provider and maintaining a dual-business structure while phasing out its legacy interior design business, which has been divested through the full disposal of OPS Interior Design Consultant Limited (“OPS HK”) on May 7, 2026.

The ordinary shares began trading on April 17, 2024 on the Nasdaq Capital Market and commenced trading under the ticker symbol “JUNE”, and the ticker symbol subsequently changed to “SUPX” on June 2, 2025.

As of June 30, 2026, the accompanying consolidated financial statements reflect the activities of the Company and the following entities: