Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 51

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 51
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 practice in lieu of additional requirements under the Nasdaq Listing Rules
with respect to certain corporate governance standards in the future which may afford less protection to investors.

We will incur increased costs as a result of
being a public company, particularly after we cease to qualify as an “emerging growth company.”

As a public company, we incur legal, accounting
and other expenses that we did not incur as a private company. The Sarbanes-Oxley Act of 2002, as well as rules subsequently implemented
by the SEC and NASDAQ Capital Market, impose various requirements on the corporate governance practices of public companies. We are an
“emerging growth company,” as defined in the JOBS Act and will remain an emerging growth company until the earlier of (1)
the last day of the fiscal year (a) following the fifth anniversary of the completion of our initial public offering, (b) in which we
have total annual gross revenue of at least $1.235 billion, or (c) in which we are deemed to be a large accelerated filer, which means
the market value of our Ordinary Shares that is held by non-affiliates exceeds $700 million as of the prior June 30th, and (2) the date
on which we have issued more than $1.0 billion in non-convertible debt during the prior three-year period. An emerging growth company
may take advantage of specified reduced reporting and other requirements that are otherwise applicable generally to public companies.
These provisions include exemption from the auditor attestation requirement under Section 404 in the assessment of the emerging growth
company’s internal control over financial reporting and permission to delay adopting new or revised accounting standards until such
time as those standards apply to private companies.

Compliance with these rules and regulations increases
our legal and financial compliance costs and makes some corporate activities more time-consuming and costly. After we are no longer an
“emerging growth company,” or until five years following the completion of our initial public offering, whichever is earlier,
we expect to incur significant expenses and devote substantial management effort toward ensuring compliance with the requirements of Section
404 and the other rules and regulations of the SEC. For example, as a public company, we have increased the number of independent directors
and adopt policies regarding internal controls and disclosure controls and procedures to become a public company. We have incurred additional
costs in obtaining director and officer liability insurance. In addition, we incur additional costs associated with our public company
reporting requirements. It may also be