Company: PAVS
Filing Date: 2025-08-04
Form Type: 20-F
Source: 0001929980-25-000590
Chunk: 70

Company: Paranovus Entertainment Technology Ltd.
Filing Date: 2025-08-04
Form: 20-F
Item: Item 4
Chunk 70
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 of https://pavs. ai.

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Research and Development

Historical R& D Efforts

Historically, we relied on our in-house research and development team to upgrade and invent new products for our nutraceutical and dietary supplement business. A detailed development process of our new products is as following:

  Start-up of a project: feasibility study on the formula, production process and technical requirements of the new product;  

  Lab test of the formula and production process on small scale;  

  Pilot production test of the formula and production process on medium scale;  

  Make further modification on the formula and production process of the new product based on the results of lab test and pilot test to meet current technical requirements and quality standards o...  

  Assessment on safety and general health benefits of the new product: the assessment covers hygienic testing, toxicological testing and functional testing on safety, stability and health benefit...  

  Submit the materials to CFDA for registration or record-filing process of the new product (for a detailed discussion on the materials needed, see section “ Regulation”);  

  Approved by CFDA and get the official approval and “ Blue Cap” label of the new product: CFDA shall review the materials for registration or record-filing and perform on-site verification of th...  

Insurance

As required by applicable laws and regulations in the United States, we provide our full-time employees with workers’ compensation insurance and medical insurance coverage. We maintain these employee benefit programs in accordance with relevant federal and state requirements. In addition, we have obtained and maintain insurance policies to cover workplace injuries, disability, and healthcare needs of our eligible employees. We believe we are in compliance with all applicable regulations and have made adequate provision for such coverage in our financial statements. However, any failure to maintain sufficient insurance coverage or to comply with applicable legal requirements could result in penalties, additional costs, or other liabilities imposed by the relevant authorities.

Seasonality

There is no seasonality impact to the business of E-Commerce solutions or the AI entertainment business.

Employees

We currently have 25 full-time employees, based in the U. S. We have employment contracts with all of our employees in accordance with relevant U. S. laws. Our employees are not represented by a labor organization or covered by a collective bargaining agreement. We have not experienced any work stoppages.

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Competitive Advantage

For our e-commerce and e-commerce enablement solutions business, we believe our competitive