Company: QSJC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008383
Chunk: 31

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with
early adoption permitted. ASU 2025-05 should be applied on a prospective basis. The Company is currently evaluating the adoption of this
guidance whether or not a material impact on the Company’s condensed consolidated financial statements.

The Company has considered all other recently issued
accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its condensed consolidated
financial statements.

ITEM 3. QUANTITATIVE AND
QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not applicable.

 24 

ITEM 4. CONTROLS AND PROCEDURES.

Evaluation of Disclosure
Controls and Procedures

Our management is responsible
for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e)) under the Exchange Act)
that is designed to ensure that information required to be disclosed by the Company in the reports that we file or submit under the Exchange
Act is recorded, processed, summarized and reported, within the time specified in the Commission’s rules and forms. Disclosure controls
and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an
issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management,
including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions,
as appropriate to allow timely decisions regarding required disclosure.

Pursuant to Rule 13a-15(b)
under the Exchange Act, the Company carried out an evaluation with the participation of the Company’s management, including the
Company’s chief executive officer (“CEO”) and the Company’s chief financial officer (“CFO”), of the
effectiveness of the Company’s disclosure controls and procedures (as defined under Rule 13a-15(e) under the Exchange Act) as of
September 30, 2025. Based upon that evaluation, the Company’s CEO and CFO concluded that the Company’s disclosure controls
and procedures were not effective as of September 30, 2025 due to the Company’s limited internal resources and lack of ability to
have multiple levels of transaction review.

Management is in the process
of determining how best to change our current system and implement a more effective system to ensure that information required to be disclosed
in the reports that we file or submit under the Exchange Act have been recorded, processed, summarized