Company: NTCL
Filing Date: 2025-12-29
Form Type: F-3
Source: 0001104659-25-124826
Chunk: 30

Company: NetClass Technology Inc
Filing Date: 2025-12-29
Form: F-3
Chunk 30
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 based on the qualifications of the company’s
auditors.

| 7 |

On May 20, 2020, the U.S. Senate passed the
Holding Foreign Companies Accountable Act, or the HFCAA, requiring a foreign company to certify it is not owned or controlled by a foreign
government if the PCAOB is unable to audit specified reports because the company uses a foreign auditor not subject to PCAOB inspection.
If the PCAOB is unable to inspect the company’s auditors for three consecutive years, the issuer’s securities are prohibited
to trade on a U.S. stock exchange. On December 2, 2020, the U.S. House of Representatives approved the Holding Foreign Companies
Accountable Act. On December 18, 2020, the Holding Foreign Companies Accountable Act was signed into law.

On March 24, 2021, the SEC announced it adopted
interim final amendments to implement congressionally mandated submission and disclosure requirements of the Act. The interim final
amendments apply to registrants that the SEC identifies as having filed an annual report on Forms 10-K, 20-F, 40-F or N-CSR with an audit
report issued by a registered public accounting firm that is located in a foreign jurisdiction and that the PCAOB has determined it is
unable to inspect or investigate completely because of a position taken by an authority in that jurisdiction. The SEC will implement a
process for identifying such a registrant and any such identified registrant will be required to submit documentation to the SEC establishing
that it is not owned or controlled by a governmental entity in that foreign jurisdiction, and will also require disclosure in the registrant’s
annual report regarding the audit arrangements of, and governmental influence on, such a registrant.

On June 22, 2021, United States Senate has
passed the Accelerating Holding Foreign Companies Accountable Act, which was signed into law on December 29, 2022, amending the HFCAA
and requiring the SEC to prohibit an issuer’s securities from trading on any U.S. stock exchange if its auditor is not subject to
PCAOB inspections for two consecutive years instead of three consecutive years, which could reduce the time before our securities
may be prohibited from trading or delisted should it be later determined that the PCAOB is unable to inspect or investigate our auditor
completely.

On September 22, 2021, the PCAOB adopted
a final rule implementing the HFCAA, which provides a framework