Company: TOP
Filing Date: 2025-03-14
Form Type: POS AM
Source: 0001213900-25-024160
Chunk: 9

Company: TOP Financial Group Ltd
Filing Date: 2025-03-14
Form: POS AM
Chunk 9
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 INC. is headquartered in Irvine,
California and has been inspected by the PCAOB. Notwithstanding the foregoing, in the future, if there is any regulatory change or step
taken by PRC regulators or the SEC or Nasdaq applies additional and more stringent criteria, and if PCAOB determines that it is not able
to inspect YCM CPA INC. at such future time, Nasdaq may delist our Ordinary Shares and the value of our Ordinary Shares may significantly
decline or become worthless. See “Item 3. Key Information — 3.D. Risk Factors — Risks Relating to Our Ordinary Shares—
Our Ordinary Shares may be prohibited from being traded on a national exchange under the Holding Foreign Companies Accountable Act (the
“HFCA Act”), if the Public Company Accounting Oversight Board (the “PCAOB”) is unable to inspect our auditors
for two consecutive years beginning in 2021. The delisting of our Ordinary Shares, or the threat of their being delisted, may materially
and adversely affect the value of your investment” in our 2024 Annual Report.

Our management monitors the cash position
of each entity within our organization regularly and prepare budgets on a monthly basis to ensure each entity has the necessary funds
to fulfill its obligation for the foreseeable future and to ensure adequate liquidity. In the event that there is a need for cash or
a potential liquidity issue, it will be reported to our Chief Financial Officer and subject to approval by our board of directors, we
will enter into an intercompany loan for the subsidiary.

For TFGL to transfer cash to its subsidiaries,
TFGL is permitted under the laws of the Cayman Islands and its memorandum and articles of association to provide funding to our subsidiaries
incorporated in the British Virgin Islands and Hong Kong through loans or capital contributions without restrictions on the amount of
the funds. TFGL’s subsidiaries formed under the laws of the British Virgin Islands are permitted under the laws of the British
Virgin Islands to provide funding to their respective subsidiaries formed in Hong Kong through loans or capital contributions without
restrictions on the amount of the funds.

For the subsidiaries to transfer cash to TFGL,
according to the BVI Business Companies Act, Revised Edition 2020, a British Virgin Islands company may make dividends distribution to
the extent that immediately after the distribution, such company’s assets exceed its liabilities and that such company is able
to pay its debts as they fall due. According to the Companies Ordinance of Hong Kong, a Hong Kong company may