Company: NTCL
Filing Date: 2025-10-20
Form Type: F-1
Source: 0001104659-25-100526
Chunk: 31

Company: NetClass Technology Inc
Filing Date: 2025-10-20
Form: F-1
Chunk 31
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 domestic reporting companies or provide information at different times, making it more difficult for you to evaluate our performance and prospects. |

10

| ● | Because we are a foreign private issuer and are exempt from certain Nasdaq corporate governance standards applicable to U.S. issuers, you will have less protection than you would have if we were a domestic issuer. |

| ● | You may face difficulties in protecting your interests, and your ability to protect your rights through U.S. courts may be limited because we are incorporated under Cayman Islands law. |

| ● | Certain judgments obtained against us by our shareholders may not be enforceable. |

| ● | Nasdaq may apply additional and more stringent criteria for our continued listing and insiders currently hold a large portion of our listed securities. |

| ● | If we cannot continue to satisfy the continued listing requirements and other rules of Nasdaq Capital Market, although we exempt from certain corporate governance standards applicable to US issuers as a Foreign Private Issuer, our securities may be delisted, which could negatively impact the price of our securities and your ability to sell them. |

| ● | The market price of our Class A Ordinary Shares may be volatile or may decline regardless of our operating performance. |

| ● | Certain recent initial public offerings of companies with public floats comparable to the anticipated public float of the Company have experienced extreme volatility that was seemingly unrelated to the underlying performance of the respective company. We may experience similar volatility, which may make it difficult for prospective investors to assess the value of our Class A Ordinary Shares. |

| ● | We do not intend to pay dividends for the foreseeable future. |

| ● | We incur additional costs as a result of operating as a public company, which could negatively impact our net income and liquidity. |

Holding Foreign Company Accountable Act U.S. laws and regulations, including the Holding Foreign Companies Accountable Act, or HFCAA, may restrict or eliminate our ability to complete a business combination with certain companies, particularly those acquisition candidates with substantial operations in the PRC. On April 21, 2020, SEC Chairman Jay Clayton and PCAOB Chairman William D. Duhnke III, along with other senior SEC staff, released a joint statement highlighting the risks associated with investing in companies based in or have substantial operations in emerging markets including the PRC. The joint statement emphasized the risks associated with lack of access for the PCAOB to inspect auditors and audit work papers in the PRC and higher risks of fraud in emerging markets. On May 18, 2020