Company: SOS
Filing Date: 2025-07-31
Form Type: 424B5
Source: 0001213900-25-069766
Chunk: 37

Company: SOS Ltd
Filing Date: 2025-07-31
Form: 424B5
Chunk 37
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 PRC laws also require a foreign-invested enterprise to set aside
at least 10% of its after-tax profits as the statutory common reserve fund until the cumulative amount of the statutory common reserve
fund reaches 50% or more of such enterprise’s registered capital, if any, to fund its statutory common reserves, which are not
available for distribution as cash dividends. Remittance of dividends by a wholly foreign-owned enterprise out of mainland China is also
subject to examination by the banks designated by the PRC State Administration of Foreign Exchange (“SAFE”). These restrictions
are benchmarked against the paid-up capital and the statutory reserve funds of our PRC subsidiaries. To the extent cash in our business
is in China or in an entity in mainland China, the funds may not be available to fund operations or for other use outside of mainland
China due to interventions in or the imposition of restrictions and limitations by the PRC government on our ability to transfer cash.
As a result, our ability to grow, make investments or acquisitions that could be beneficial to our business, pay dividends, or otherwise
fund and conduct our business may be materially and adversely affected. We have also presented financial information to illustrate the
consolidated cash flows for the years ended December 31, 2024 for (i) SOS Limited; (ii) China SOS Limited; (iii) Qingdao SOS Investment,
one of our WFOEs; (iv) the VIE; (v) Subsidiaries outside China; and (vi) Subsidiaries inside China. The financial information of SOS
Limited has been extracted from SOS Limited’s audited consolidated statements of cash flows for the year ended December 31, 2024
and the related notes, included elsewhere in this prospectus or incorporated by reference herein. For a detailed description of how cash
is transferred through our organization, see “Prospectus Summary—Cash and Asset Flows through Our Organization.”

For the fiscal year ended December 31, 2024, SOS Limited transferred nil to its subsidiaries inside China and transferred $16,379,378 to its subsidiaries outside China. $2,460,000 was transferred from the subsidiary named Future Digital Trade Limited of SOS Limited to SOS Limited. Since January 1, 2025 and until the date of this prospectus, SOS Limited has transferred, as intercompany borrowing, an aggregate of nil to its subsidiaries outside China, and SOS Information Technology New York Inc. transferred $46,101,001.73 to SOS Limited