Company: HNIT
Filing Date: 2025-07-14
Form Type: 10-Q
Source: 0001641172-25-018889
Chunk: 12

Company: Huineng Technology Corp
Filing Date: 2025-07-14
Form: 10-Q
Item: Item 1
Chunk 12
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 impact it may have on its condensed consolidated financial statements.

In
November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03
Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) Disaggregation of Income
Statement Expenses. The guidance in ASU 2024-03 requires public business entities to disclose in the notes to the financial statements,
among other things, specific information about certain costs and expenses including purchases of inventory; employee compensation; and
depreciation, amortization and depletion expenses for each caption on the income statement where such expenses are included. ASU 2024-03
is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15,
2027. Early adoption is permitted, and the amendments may be applied prospectively to reporting periods after the effective date or retrospectively
to all periods presented in the financial statements. The Company is currently evaluating the provisions of this guidance and assessing
the potential impact on the Company’s financial statement disclosures.

In
March 2025, the FASB issued ASU 2025-02, Liabilities (Topic 405): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin
No. 122, which removes certain SEC guidance related to obligations to safeguard crypto-assets. The Company does not engage in activities
involving crypto-assets; therefore, the adoption of this ASU is not expected to have a material impact on its financial statements.

The
Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have
a significant impact on the Company’s financial statements.

    F-7

3.
GOING CONCERN UNCERTAINTIES

The
accompanying financial statements have been prepared assuming that the Company will continue as a going concern. For the six months ended
May 31, 2025, the Company incurred a net loss of $21,036 and used cash in operating activities of $1,584. As of May 31, 2025, the Company
had an accumulated deficit of $65,780.

The
Company’s cash position may not be significant enough to support the Company’s daily operations. While the Company believes
in the viability of its strategy and in its ability to raise additional funds, there can be no assurances to that effect. The Company’s
ability