Company: EUDAW
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001641172-25-006627
Chunk: 0

Company: EUDA Health Holdings Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 3
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ITEM
3. KEY INFORMATION

  [Reserved]  
 ──────────────

  Capitalization    
  and Indebtedness  
 ────────────────────

Not
Applicable.

  Reasons                            
  for the Offer and Use of Proceeds  
 ─────────────────────────────────────

Not
Applicable.

  Risk     
  Factors  
 ───────────

There is no assurance that the Company can achieve
the desired strategic and financial benefits from its acquisition of CK Health

On May 8, 2024, the Company
acquired all of the then issued and outstanding shares of Fortress Cove Limited, a British Virgin Islands business company (“ FCL”)
which was the sole legal and beneficial owner of the entire share capital of CK Health Plus Sdn. Bhd., a Malaysian company (“ CK
Health”) in the business of direct sales of wellness products, therapies and services, for an aggregate consideration of $15.0
million paid in the form of 8,571,428 shares (“ Consideration Shares”) based on the $1.75 per share price pursuant to a Share
Purchase Agreement dated May 6, 2024 (as amended and supplemented, the “ CK Health Share Purchase Agreement”). EUDA accounted
for the acquisition of FCL as the purchase of an asset under U. S. GAAP. The cost of the asset acquisition exceeds the fair value of FCL’s
assets acquired and liabilities assumed pursuant to the CK Health Share Purchase Agreement. Although the Company plans to generate material
sales revenue from CK Health’s holistic wellness consumer products and services (e. g., wellness therapies services, licensing services
of bioenergy cabins, and a wellness membership program), there is no assurance that the Company can achieve the desired strategic
and financial benefits from this acquisition. For the fiscal year ended December 31, 2024, CK Health has generated a total of $89,023
of revenue, representing approximately 2.2% of the Company’s total revenue. See “5A. Operating Results - Recent Development”
for details.

CK Health is a new company
that has no operations prior to April 1, 2024 other than start up activities. Its business model remains to be proven.

FCL incurred a net loss of
$19,788 and had a working capital deficit of $19,311 as of December 31, 2023. J& S Associate PLT’s audit report for
FCL’s financial statements for the period from November