Company: IDVV
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008369
Chunk: 11

Company: ModuLink Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 8
Chunk 11
---
 corporation, and Zenith (Hong Kong) Engineering Limited, a Hong Kong corporation (“Zenith (HK)”),
200,000 shares of Preferred A shares, representing all of the issued and outstanding shares of Preferred A, and the transfer of certain
promissory notes of the Company held by third parties.

Pursuant to the Stock Purchase Agreement dated
January 22, 2025, the two convertible promissory notes of the Company in the principal amounts of $65,000 and $75,000, respectively were
purchased and assigned to Zenith (HK) on January 30, 2025. The notes were originally convertible into shares of the Company’s common
stock in accordance with the terms set forth therein. On February 28, 2025, Zenith (HK) waived all rights to convert the outstanding principal
amount and any accrued but unpaid interest under the two convertible promissory notes into equity securities of the Company. Both notes
have already become due and payable. However, Zenith (HK) has indicated a willingness to work with the Company regarding repayment of
such loans. These notes are interest bearing at a rate of 8% per annum. Thus, notes payable is classified as financial liabilities and
recognized at amortized cost.

    NOTE 15
    COMMITMENTS AND CONTINGENCIES

Contingencies

The Company accounts for loss contingencies in
accordance with ASC Topic 450 and other related guidelines.

At the end of the reporting period, there were
contingent liabilities of maximum USD 1.91 million (December 31, 2024: USD 1.91 million) in respect of the subsidiary providing a corporate
guarantee to a bank for securing the general banking facilities granted to both the subsidiary and a related company wholly owned by Mr.
Tam Hin Wah Anthony.

As of September 30, 2025 and December 31, 2024,
the Company’s management is of the opinion that there are no other commitments and contingencies to account for, except for those
mentioned above.

    NOTE 16
    STOCKHOLDERS’ EQUITY

(A) Common Stock and Series A Convertible Preferred Shares 

On February 9, 2025, the authorized capital stock
was increased to Four Billion Ten Million (4,010,000,000) shares, consisting of (a) Four Billion (4,000,000,000) shares of common stock,
par value $0.001 per share