Company: ILAG
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001493152-25-008362
Chunk: 48

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-02-26
Form: 424B5
Chunk 48
---
 branches. Under PRC law, Xingfa is also required to set aside at least 10% of its after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of its registered capital.

| 4 |

Summary of Risk Factors Investing in our securities involves significant risks. You should carefully consider all of the information in this prospectus before making an investment in our securities. Below please find a summary of the principal risks we face, organized under relevant headings. These risks are discussed more fully in “ Item 3. Key Information—D. Risk Factors” in the Company’s Annual Report on Form 20-F for the year ended December 31, 2022 filed on April 28, 2023(the “2022 Form 20-F”), which is incorporated herein by reference. Risks Related to Our Business

| ● | The                                                                                        
 global coronavirus COVID-19 pandemic has caused significant disruptions to our business,   
 which we expect will continue to have material negative impact on our business, results of 
 operations and financial condition.                                                        |

| ● | The                                                                                         
 Chinese government’s recent enforcement of “dual control of energy consumption”             
 policy has caused disruptions to Xingfa manufacturing and our business and might continue   
 to have negative impact on our business, results of operations and financial condition. The 
 enforcement was lifted by central government in 2022 with occasional enforcement by local   
 government when power consumption has reached peak capacity of local power plants.          |

| ● | We                                                                                        
 may not be successfully introducing smart lock products that are currently under research 
 and development.                                                                          |

| ● | We                                                                                              
 incurred net losses for the year ended December 31, 2022 and the past two years and may not     
 be able to generate sufficient operating cash flows and working capital. As we completed        
 our public offering with net proceeds approximately $16.86 million in July 2022, we believe     
 we have sufficient working capital to continue as a going concern over the next 12 months.      
 However, failure to manage our liquidity and cash flows may materially and adversely affect     
 our financial condition and results of operations. As a result, we may need additional capital, 
 and financing may not be available on terms acceptable to us, or at all.                        |

| ● | Fluctuations                                                                                          
 in the price, availability or quality of raw materials used in our products could cause manufacturing 
 delays, adversely affecting our ability to provide goods to our customers or increase costs