Company: RHNO
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001493152-25-022052
Chunk: 561

Company: RHINO BITCOIN INC.
Filing Date: 2025-11-13
Form: 10-K
Item: Item 7A
Chunk 561
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 whether due to error
or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding
the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits
provide a reasonable basis for our opinion. 

Critical
Audit Matters

The
critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated
or required to be communicated to Board of Directors (Those Charged with Governance) and that: (1) relate to accounts or disclosures
that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgements. The communication
of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating
the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which
they relate.

Impairment
of investment 

The
Company has significant investment, which as disclosed in Note 5 to the financial statements, the Company had security investments in
company without readily determinable market value. The Company adopted the guidance of ASC 321, Investments – Equity Securities,
which allows an entity to measure investments in equity securities without a readily determinable fair value using a measurement alternative
that measures these securities at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly
transactions for identical or similar investment of same issuer (the “Measurement Alternative”). The Company made qualitative
assessments to evaluate whether the investments are impairment and concluded that the investments will be impaired.

We
identified the impairment valuation of investments as a critical audit matter due to the significance of the balance to the financial
statements as a whole. These investments require significant judgements as they are equity securities without a readily determinable
fair value and require the Company to assess if there are any changes in circumstances that indicate that the carrying amount of an investment
may require impairment. There were significant judgements made by management to identify the indicators of impairment and estimating
the fair value of the investments which led to a high degree of auditor judgement, subjectivity and effort in evaluating management’s
estimation of the fair value of the investment including management’s assessment of the equity investment financial condition,
operating performance, prospects and other company-specific information.