Company: WELNF
Filing Date: 2025-11-12
Form Type: DEFM14A
Source: 0001104659-25-109577
Chunk: 430

Company: Integrated Wellness Acquisition Corp
Filing Date: 2025-11-12
Form: DEFM14A
Chunk 430
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 June 30, 2025, would result in an additional cost of goods sold of approximately $16,077. Conversely, a 1% decrease in the allowance would reduce our cost of goods sold by approximately $16,077.

Risk and Uncertainty

Given the inherent uncertainties in predicting future demand, market conditions, and other factors affecting inventory valuation, our estimates are subject to a high degree of variability. We are also exposed to various risks, including changes in consumer preferences, supplier reliability, and economic volatility, which could impact our inventory management and valuation.

Quantitative and Qualitative Disclosures about Market Risk**

#### Foreign Currency Exchange Risk
While we generate the majority of our revenue in Australian dollars (AUD), a portion of our revenue is denominated in the Hong Kong dollar (HKD). For the quarter ended and six months ended June 30, 2025,

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100% of our revenue was denominated in AUD and 0% in HKD. As we expand globally, we will be further exposed to fluctuations in currency exchange rates.

Transaction (gains) and losses, were $(1,657) for the quarter ended June 30, 2025, compared to losses of $1,004 for the same period in 2024. For the six months ended June 30, 2025, transaction gains totaled $(2,171), compared to losses of $681 for the six months ended June 30, 2024.

We currently do not hedge foreign currency exposure. We may in the future hedge our foreign currency exposure and may use currency forward contracts, currency options or other common derivative financial instruments to reduce foreign currency risk. It is difficult to predict the effect that future hedging activities would have on our operating results.

#### Interest Rate Sensitivity
We had cash equivalents and loan receivables totaling $87,124 and $1,815,938, respectively as of June 30, 2025. Our cash equivalents are held for working capital purposes on accounts that do not bear interest. Our cash equivalents are not subject to changes interest rates and market conditions. Fixed rate loan receivable may have their market values adversely affected due to a rise in interest rates.

Borrowings under loan agreements are principally subject to a fixed interest rate between 6.48% – 23.26%. We currently do not hedge interest rate exposure. We may in the future hedge our interest rate exposure and may use swaps, caps, collars