Company: NTCL
Filing Date: 2025-10-20
Form Type: F-1
Source: 0001104659-25-100526
Chunk: 167

Company: NetClass Technology Inc
Filing Date: 2025-10-20
Form: F-1
Chunk 167
---
 plaintiff claimed NetClass China owed RMB 665,000 ($103,208) for purchasing online teaching products and software development services from the plaintiff. NetClass China argued that the plaintiff’s claim was baseless because the plaintiff only delivered defective online teaching products on December 13, 2017 and failed to deliver software development services. NetClass China also notified the plaintiff to terminate the agreement on March 9, 2018 and July 13, 2020. On July 19, 2022, Shenzhen Nanshan District People’s Court denied the plaintiff’s claim due to lack of evidence. The plaintiff appealed the case to Shenzhen Intermediate People’s Court, which upheld the final judgment from the Shenzhen Nanshan District People’s Court and dismissed all plaintiff’s claims in favor of NetClass.

<div align='center'>85</div>

#### Sales and MarketingCurrently, our main market is in Shanghai, Singapore and Hong Kong. Our market was mainly in Shanghai and eastern mainland China before 2022. However, due to the impact of the pandemic on the PRC’s economy, we expanded our services into Hong Kong and overseas markets in 2023, and we have made noticeable progress, especially in our Application development and IT solutions. Starting from 2025, we further expand our business to Singapore, to strengthen our access to the core markets of the Asia-Pacific region, and foster closer connections with the local innovation ecosystem, capital resources and top talents.We market our products through customer referrals, recommendations from industry associations, advertisements, WeChat official accounts, cold calls and other methods. For example, we have promoted our products and services to member companies when participating in various professional technology associations in the IT industry, and we have publicized our products and services through our company website and WeChat official accounts. WeChat users can subscribe to WeChat official accounts and access latest information on these accounts every day. The Company publishes articles on its’ WeChat official account and subscribers including our employees, employees’ family and friends can share these articles to their personal network on WeChat. We allow the WeChat account to grow organically without other external marketing effort.We believe the market demands for online educational technology services will continue to grow, driven by the rapid growth in the PRC online education market.Our marketing expense were $372,500 for the six months ended March 31, 2025 and 2024. Our marketing expenses accounted for approximately 79.45% and 77.65% of the total selling and marketing expenses