Company: NTCL
Filing Date: 2025-10-20
Form Type: F-1
Source: 0001104659-25-100526
Chunk: 35

Company: NetClass Technology Inc
Filing Date: 2025-10-20
Form: F-1
Chunk 35
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 relates to our audit. If the PCAOB determines that it is unable to inspect or investigate our auditor for two consecutive years, the trading of our securities will be prohibited under the HFCAA and Nasdaq may determine to delist our securities. We will be required to engage a new audit firm, which would require significant expense and management time. The value of our securities may significantly decline or become worthless.

See “Risk Factors— Risks Related to Doing Business in the PRC – The recent joint statement by the SEC and PCAOB, proposed rule changes submitted by Nasdaq, and the Holding Foreign Companies Accountable Act all call for additional and more stringent criteria to be applied to emerging market companies upon assessing the qualification of their auditors, especially the non-U.S. auditors who are not inspected by the PCAOB. These developments could add uncertainties to our continued listing on Nasdaq.”

#### Cash and Asset Flows through Our Organization
Our equity structure is a direct holding structure, that is, the overseas holding company, NetClass, directly controls NetClass HK, NetClass International, NetClass Singapore, NetClass Asia and and NetClass Japan, and indirectly controls WOFE, Shanghai Netwide, and NetClass China, NetClass Training, NetClass Education, NetClass Management, and NetClass HR.

Within our direct holding structure, the cross-border transfer of funds within our corporate group is legal and compliant with the laws and regulations of the PRC and Hong Kong.

If the Company intends to distribute dividends, NetClass International, NetClass HK, NetClass Singapore, NetClass Asia and NetClass Japan will transfer the dividends to NetClass. In addition, NetClass Training, NetClass Education, NetClass Management and NetClass HR will transfer dividends to NetClass China, which then will transfer the dividends to WOFE, which then will transfer the dividends to NetClass HK in accordance with the laws and regulations of the PRC, and then NetClass HK will transfer the dividends to NetClass, and the dividends will be distributed from NetClass to all shareholders respectively in proportion to the shares they hold, regardless of whether the shareholders are U.S. investors or investors in other countries or regions.

For the six months ended March 31, 2025 and during the fiscal years ended September 30, 2024, 2023 and 2022, no transfers, dividends, or distributions were made to date between the holding company and its subsidiaries, or to investors. For the foreseeable future, the Company intends to use the earnings for