Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 6

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 6
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 liquidity and cash flows may materially and adversely affect our financial condition and results
of operations. As a result, we may need additional capital, and financing may not be available on terms acceptable to us, or at all.

We incurred net losses of $3.7 million, $3.5 million and $1.7 million for the years ended December 31, 2024, 2023 and 2022, respectively. As a result, we had negative cash
flows from operating activities of approximately $3.0 million, $3.2million and approximately $4.1 million for the years ended
December 31, 2024, 2023 and 2022. We can offer no assurance that we will operate profitably or that we will generate positive cash flows in the next twelve months, given our substantial expenses in relation to our revenue at this stage of our Company. Inability to collect our accounts receivable in a timely and sufficient manner, or the inability to offset our expenses with adequate revenue, may adversely affect our liquidity, financial condition and results of operations. Although we believe that our cash on hand and anticipated cash flows from operating activities will be sufficient to meet our anticipated working capital requirements and capital expenditures in the ordinary course of business for the next 12 months, we cannot assure you this will be the case.

If and when we are unable to generate sufficient cash flows from operations to meet our working capital requirements
and various operating needs, we may need to raise additional funds for our operations and such funds may not be available on commercially
acceptable terms, if at all. If we are unable to raise funds on acceptable terms, we may not be able to execute our business plan, take
advantage of future opportunities, or respond to competitive pressures or unanticipated requirements. This may seriously harm our business,
financial condition and results of operations. If we are unable to achieve or maintain profitability, the market price of our shares may
significantly decrease. In the event that the Company requires additional funding to finance its operations, the Company’s major
shareholders have indicated their intent and ability to provide such financial support, however, there is no assurance such funding will
be available when the Company needs it in the future.

Any damage to our reputation or our brand may
materially adversely affect our business, financial condition and results of operations.

We have long business relationships with our customers
by maintaining high quality and quick service response. Maintaining our strong reputation with consumers and our suppliers is critical
to our