Company: NTCL
Filing Date: 2025-12-29
Form Type: F-3
Source: 0001104659-25-124826
Chunk: 45

Company: NetClass Technology Inc
Filing Date: 2025-12-29
Form: F-3
Chunk 45
---
 Language Model (LLM) will play an important role in various industries. In order to maintain
the technical advantage in online education and related areas, we are dedicated to long-term R&D in AI applications, aiming to run
a vertical LLM in the field of smart education. Believing that AI technology can help the Company provide better products and services
to our customers, we decided to develop and provide AI assisted English learning systems to our education clients, and NetClass HK
entered into an AI technical development service agreement with one AI development supplier in Hong Kong (an independent third party)
on October 2, 2023 for vertical LLM for English learning system to its education clients. Under the agreement, the developer agreed
to conduct pre-training and necessary fine-tuning of a general-purpose open-source AI large language framework model for the Company’s
sole use for a total fee of $2,000,000. The Company made a payment $1,900,000 in 2023. The agreement stipulated a training period of four months,
and required the technical supplier to provide the computing power for this training, and thereafter, the vertical LLM shall be inspected
and confirmed by the company after the training is completed. The trained vertical LLM shall then be deployed according to the company’s
requirements and support of language teaching and other services. NetClass HK shall own all intellectual properties, if any, as a
result of the agreement. The agreement is governed by the laws of Hong Kong. In January 2024, the program was delivered to NetClass HK
and has been successfully used in our AI-assisted English learning system, which has already attracted some college users. We believe
that AI technology can bring new opportunities to our Company, especially in upgrading the Company’s online education system to
be more intelligent and efficient.

NetClass Epidemic Prevention and Control System

Our epidemic prevention and control system provides
an integrated solution for the health management of schools during the COVID-19 Pandemic. The epidemic prevention and control system records
the user’s information including body temperature, ID card verification, face recognition, travel code, COVID-19 test result,
and vaccination records. Because of its identity authentication function, the system is also applicable to different scenarios such as
temporary passes at work, student identity verification at school, etc. All the data and information obtained on epidemic prevention
and control are accessible nationwide through one code. Therefore, it provides our customers with an easier solution to health management.

Application Development Services