# EDGAR Filing Document

**Accession Number:** 0001953021
**File Stem:** 0001213900-25-118711
**Filing Date:** 2025-12
**Character Count:** 165573
**Document Hash:** ea888315c52bb683b34b9d32bfd04d87
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-25-118711.hdr.sgml**: 20251205

**ACCESSION NUMBER**: 0001213900-25-118711

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 101

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251205

**DATE AS OF CHANGE**: 20251205

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Mega Matrix Inc
- **CENTRAL INDEX KEY:** 0001953021
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-MOTION PICTURE & VIDEO TAPE PRODUCTION [7812]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 000000000
- **STATE OF INCORPORATION:** E9

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-42370
- **FILM NUMBER:** 251552989

**BUSINESS ADDRESS:**
- **STREET 1:** 89 NEXUS WAY, CAMANA BAY
- **CITY:** GRAND CAYMAN
- **STATE:** E9
- **ZIP:** KY1-9009
- **BUSINESS PHONE:** 929-841-4670

**MAIL ADDRESS:**
- **STREET 1:** 89 NEXUS WAY, CAMANA BAY
- **CITY:** GRAND CAYMAN
- **STATE:** E9
- **ZIP:** KY1-9009

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MarsProtocol Inc.
- **DATE OF NAME CHANGE:** 20221101

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 6-K**

**REPORT OF FOREIGN PRIVATE ISSUER**

**PURSUANT TO RULE 13a-16 OR 15d-16**

**UNDER THE SECURITIES EXCHANGE ACT OF 1934**

**For the month of December 2025**

**Commission File Number: 001-42370**

**MEGA MATRIX INC.**

**Level 21, 88 Market Street**

**CapitaSpring**

**Singapore 048948**

**(Address of principal executive office)**

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ☒&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Form 40-F ☐

**Explanatory Note**

On December 5, 2025, Mega Matrix Inc. (the "Company") reported its financial results for the quarter ended September 30, 2025. and made available an updated corporate presentation on its website. A copy of the corporate presentation is attached hereto as Exhibit 99.3.

The fact that this corporate presentation is being made available and furnished herewith should not be deemed an admission as to the materiality of any information contained in the materials. The information contained in the corporate presentation is being provided as of December 5, 2025, and the Company does not undertake any obligation to update the presentation in the future or to update forward-looking statements to reflect subsequent actual results.

**Incorporation by Reference**

This report on Form 6-K (other than Exhibit 99.3), including Exhibits 99.1 and 99.2, shall be deemed to be incorporated by reference in the registration statements on [Form S-8](https://www.sec.gov/Archives/edgar/data/1036848/000121390024015811/ea0200362-s8_megamatrix.htm) (File No. 333-277227), [Form F-3](https://www.sec.gov/Archives/edgar/data/1953021/000121390024107949/ea0223995-f3_megamatrix.htm) (File No. 333-283739), [Form S-8](https://www.sec.gov/Archives/edgar/data/1953021/000121390025078560/ea0240832-s8_mega.htm) (File No. 333-289715), and [Form F-3](https://www.sec.gov/Archives/edgar/data/1953021/000121390025084287/ea0254090-f3_megamatrix.htm) (File No. 333-290026), each as filed with the Securities and Exchange Commission, to the extent not superseded by documents or reports subsequently filed.

**Exhibit Index**

---

| | |
|:---|:---|
| **Exhibit No.** | **Exhibit Description** |
| 99.1 | [Unaudited Interim Consolidated Financial Statements for the Three and Nine Months Ended September 30, 2025 and 2024.](ea026689601ex99-1_mega.htm) |
| 99.2 | [Management's Discussion and Analysis of Financial Condition and Results of Operations in connection with the Unaudited Interim Consolidated Financial Statements for the Three and Nine Months Ended September 30, 2025 and 2024.](ea026689601ex99-2_mega.htm) |
| 99.3 | [Corporate Presentation dated December 5, 2025](ea026689601ex99-3_mega.htm) |
| 101.INS | Inline XBRL Instance Document |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **Mega Matrix Inc.** | **Mega Matrix Inc.** |
|  | By: | /s/ Yucheng Hu |
|  |  | Yucheng Hu |
|  |  | Chief Executive Officer |
| Dated: December 5, 2025 |  |  |

---

## Exhibit 99.1

?xml version='1.0' encoding='ASCII'?

**Exhibit 99.1**

**MEGA MATRIX INC.**

**UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS**

**(Rounded to the Nearest Hundred US Dollar, except for share and per share data, unless otherwise stated)**

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
|  | **(Unaudited)** | **(Audited)** |
| **ASSETS** |  |  |
| **Current Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $9766100 | $8870800 |
| &nbsp;&nbsp;&nbsp;Trading securities | 4700 | 7000 |
| &nbsp;&nbsp;&nbsp;Digital assets | 8934300 | - |
| &nbsp;&nbsp;&nbsp;Loans receivable - a related party | 767100 | 866000 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 428800 | 422800 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | 16532400 | 3175100 |
| &nbsp;&nbsp;&nbsp;Current content assets, net | 1567600 | 1566800 |
| **Total current assets** | **38001000** | **14908500** |
| **Non-current Assets:** |  |  |
| Long-term investments | 1691700 | 1480800 |
| Goodwill | 2889200 | 2889200 |
| Content assets, net | 149800 | 183800 |
| **Total non-current assets** | **4730700** | **4553800** |
| **Total assets** | $**42731700** | $**19462300** |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $603700 | $1000500 |
| &nbsp;&nbsp;&nbsp;Contract liabilities | 2280600 | 2095500 |
| &nbsp;&nbsp;&nbsp;Income taxes payable | 4100 | 2700 |
| &nbsp;&nbsp;&nbsp;Other current liabilities and accrued expenses | 2405000 | 2255300 |
| **Total liabilities** | **5293400** | **5354000** |
| Commitments and contingencies (Note 11) |  |  |
| **Shareholders' Equity:** |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock, $0.001 par value, 2,000,000 shares authorized, no shares issued and outstanding | - | - |
| &nbsp;&nbsp;&nbsp;Class A Ordinary Shares, $0.001 par value, 1,000,000,000 and 100,000,000 shares authorized, 61,789,783 and 34,536,384 shares outstanding as of September 30, 2025 and December 31, 2024, respectively | 61800 | 34600 |
| &nbsp;&nbsp;&nbsp;Class B Ordinary Shares, $0.001 par value, 50,000,000 and 10,000,000 shares authorized, 2,809,977 and 5,933,700 shares outstanding as of September 30, 2025 and December 31, 2024, respectively | 2800 | 5900 |
| &nbsp;&nbsp;&nbsp;Class C Ordinary Shares, $0.001 par value, 10,000,000 and nil shares authorized, 3,123,723 and nil shares outstanding as of September 30, 2025 and December 31, 2024, respectively | 3100 | - |
| &nbsp;&nbsp;&nbsp;Paid-in capital | 78494200 | 40405400 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (41123600) | (26337600) |
| **Total shareholder's equity** | **37438300** | **14108300** |
| **Total liabilities and shareholder's equity** | $**42731700** | $**19462300** |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

**MEGA MATRIX INC.**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS**

**(Rounded to the Nearest Hundred US Dollar, except for share and per share data, unless otherwise stated)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended<br> September 30,** | **For the Three Months Ended<br> September 30,** | **For the Nine months ended<br> September 30,** | **For the Nine months ended<br> September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Revenues | $6111500 | $10345500 | $20908300 | $25953200 |
| Cost of revenues | (3196000) | (4293700) | (9546000) | (10502800) |
| Gross profit | **2915500** | **6051800** | **11362300** | **15450400** |
| **Operating expenses:** |  |  |  |  |
| Selling expenses | (2632200) | (6437900) | (10465300) | (18501000) |
| General and administrative expenses | (9836400) | (2301800) | (14513800) | (7416300) |
| **Total operating expenses** | **(12468600)** | **(8739700)** | **(24979100)** | **(25917300)** |
| **Loss from operations** | **(9553100)** | **(2687900)** | **(13616800)** | **(10466900)** |
| **Other income (expenses):** |  |  |  |  |
| Changes in fair value of digital assets | (1293700) | - | (1274700) | 2238700 |
| Share of equity income (loss) | 300 | - | (2100) | - |
| Impairment of long-term investments | - | (546000) | - | (770800) |
| Changes in fair value of trading securities | (2600) | - | (3800) | - |
| Interest income, net | 2200 | 84800 | 96600 | 58200 |
| Other income (expenses), net | 3800 | (5600) | 16200 | 1600 |
| **Total other (expenses) income, net** | **(1290000)** | **(466800)** | **(1167800)** | **1527700** |
| **Loss from operations before income tax** | **(10843100)** | **(3154700)** | **(14784600)** | **(8939200)** |
| Income tax (expenses) benefits | (800) | (400) | (1400) | 275800 |
| **Net loss and comprehensive loss** | **(10843900)** | **(3155100)** | **(14786000)** | **(8663400)** |
| Less: Net loss and comprehensive loss attributable to non-controlling interests | - | 382300 | - | 1620300 |
| **Net loss and comprehensive loss attributable to Mega Matrix Inc.'s stockholders** | $**(10843900)** | $**(2772800)** | $**(14786000)** | $**(7043100)** |
| **Loss per share:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic and Diluted | $(0.21) | $(0.08) | $(0.37) | $(0.23) |
| **Weighted average shares used in loss per share computations:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic and Diluted | 50955828 | 39207664 | 40349627 | 37176920 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

**MEGA MATRIX INC.**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY**

**(Rounded to the Nearest Hundred US Dollar, except for share data, unless otherwise stated)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Mega Matrix Inc.'s Shareholders' Equity** | **Mega Matrix Inc.'s Shareholders' Equity** | **Mega Matrix Inc.'s Shareholders' Equity** | **Mega Matrix Inc.'s Shareholders' Equity** | **Mega Matrix Inc.'s Shareholders' Equity** | **Mega Matrix Inc.'s Shareholders' Equity** | | | | |
|  | **Class A<br> Ordinary Shares** | **Class A<br> Ordinary Shares** | **Class B<br> Ordinary Shares** | **Class B<br> Ordinary Shares** | **Class C<br> Ordinary Shares** | **Class C<br> Ordinary Shares** | | | | |
|  | **Number of<br> Stocks** | **Amount** | **Number of<br> Stocks** | **Amount** | **Number of<br> Stocks** | **Amount** |<br>**Paid-in<br> Capital** |<br>**Accumulated<br> Deficits** |<br>**Non-**<br>**Controlling<br> Interests** |<br>**Total** |
| **Balance, December 31, 2023** | **31724631** | $**31800** | **-**  | $**-**  | **-**  | $**-**  | $**27822200** | $**(17454200)** | $**-**  | $**10399800** |
| Issuance of ordinary shares to certain investors in a private placement | 2490000 | 2500 |  | - |  | - | 3732500 | - | - | 3735000 |
| Issuance of ordinary shares to an underwriter | 124000 | 100 |  | - |  | - | (100) | - | - | - |
| Issuance of ordinary shares to acquire a subsidiary | 1500000 | 1500 |  | - |  | - | 2263500 | - | 1510000 | 3775000 |
| Share-based compensation | 102000 | 100 |  | - |  | - | 361000 | - | - | 361100 |
| Net loss | - | - | - | - | - | - | - | (866800) | (1068900) | (1935700) |
| **Balance, March 31, 2024** | **35940631** | $**36000** | **-**  | $**-**  | **-**  | $**-**  | $**34179100** | $**(18321000)** | $**441100** | $**16335200** |
| Issuance of common stocks to certain investors in a private placement | 1681817 | 1700 |  | - |  | - | 3698300 | - | - | **3700000** |
| Issuance of common stocks to an underwriter | 84091 | 100 |  | - |  | - | (100) | - | - | **-**  |
| Share-based compensation to employees | 359950 | 400 |  | - |  | - | 701900 | - | - | 702300 |
| Share-based compensation to non-employees | 57077 | - |  | - |  | - | 120000 | - | - | 120000 |
| Net loss | - | - | - | - | - | - | - | (3403500) | (169100) | (3572600) |
| **Balance, June 30, 2024** | **38123566** | $**38200** | - | $- | - | $- | $**38699200** | $**(21724500)** | $**272000** | $**17284900** |
| Issuance of common stocks to certain investors in a private placement | 681818 | 700 |  | - |  | - | 1499300 | - | - | 1500000 |
| Share-based compensation to employees | 110850 | 100 |  | - |  | - | 173900 | - | - | 174000 |
| Issuance of common stocks to acquire noncontrolling interest of a subsidiary (Note 4) | 1500000 | 1500 |  | - |  | - | (111800) | - | 110300 | - |
| Net loss | - | - | - | - | - | - | - | (2772800) | (382300) | (3155100) |
| **Balance, September 30, 2024** | **40416234** | $**40500** | - | $- | - | $- | $**40260600** | $**(24497300)** | $**-**  | $**15803800** |
| **Balance, December 31, 2024** | **34536384** | $**34600** | **5933700** | $**5900** | **-** | $**-**  | $**40405400** | $**(26337600)** | $**-**  | $**14108300** |
| Share-based compensation to employees | 132050 | 100 |  | - |  | - | 111000 | - | - | 111200 |
| Share-based compensation to non-employees | 115377 | 100 |  | - |  | - | 175700 | - | - | 175800 |
| Issuance of ordinary shares to Manager of ATM (Note 8) | 5800 | \* |  | - |  | - | 3400 | - | - | 3400 |
| Net loss | - | - | - | - | - | - | - | (2477900) | - | (2477900) |
| **Balance, March 31, 2025** | **34789611** | $**34800** | **5933700** | $**5900** | **5933700** | $**5900** | $**40695600** | $**(28815500)** | $**-**  | $**11920800** |
| Share-based compensation to employees | 50550 | 100 |  | - |  | - | 50400 | - | - | 50500 |
| Share-based compensation to non-employees | 66000 | \* |  | - |  | - | 52500 | - | - | 52500 |
| Issuance of ordinary shares to Manager of ATM (Note 8) | 392910 | 400 |  | - |  | - | 356600 | - | - | 357000 |
| Net loss | - | - | - | - | - | - | - | (1464200) | - | (1464200) |
| **Balance, June 30, 2025** | **35299071** | $**35300** | **5933700** | $**5900** | **-** | $**-**  | $**41155100** | $**(30279700)** | $**-**  | $**10916600** |
| Reclassification of Class B Ordinary Shares to Class C Ordinary Shares |  | - | (3123723) | (3100) | 3123723 | 3100 | - | - | - | - |
| Share-based compensation to employees | 3614150 | 3600 |  | - |  | - | 8453200 | - | - | 8456800 |
| Share-based compensation to non-employees | 4401000 | 4400 |  | - |  | - | 10443700 | - | - | 10448100 |
| Issuance of ordinary shares to Manager of ATM (Note 8) | 1690562 | 1700 |  | - |  | - | 2459000 | - | - | 2460700 |
| Issuance of ordinary shares pursuant to a private placement | 16000000 | 16000 |  | - |  | - | 15984000 | - | - | 16000000 |
| Issuance of ordinary shares to an underwriter of a private placement | 785000 | 800 |  | - |  | - | (800) | - | - | - |
| Net loss | - | - | - | - | - | - | - | (10843900) | - | (10843900) |
| **Balance, September 30, 2025** | **61789783** | $**61800** | **2809977** | $**2800** | **3123723** | **3100** | $**78494200** | $**(41123600)** | $**-**  | $**37438300** |

---

\* The amount of Class A Ordinary Shares issued for share-based compensation to non-employees was below 100.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

**MEGA MATRIX INC.**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Rounded to the Nearest Hundred US Dollar, unless otherwise stated)**

---

| | | |
|:---|:---|:---|
|  | **For the Nine months ended<br> September 30,** | **For the Nine months ended<br> September 30,** |
|  | **2025** | **2024** |
| **Net cash (used in) provided by operating activities** | $**(7475300)** | $**4915100** |
| **Investing activities:** |  |  |
| Purchases of digital assets | (1448200) | (610000) |
| Investment in trading securities | (19100) | - |
| Redemption of trading securities | 17600 | - |
| Investment in equity investees | (213100) | (500000) |
| Loans made to a related party | - | (610000) |
| Repayment of loans from a related party | 111900 | - |
| Acquisition of cash of a subsidiary | - | 118300 |
| **Net cash used in investing activities** | **(1550900)** | **(1601700)** |
| **Financing activities:** |  |  |
| Subscription fees from investors | 9921500 | 3504900 |
| **Net cash provided by financing activities** | **9921500** | **3504900** |
| Net changes in cash and cash equivalents | 895300 | 6818300 |
| Cash, cash equivalents, beginning of period | 8870800 | 3129800 |
| **Cash, cash equivalents, end of period** | $**9766100** | $**9948100** |
| **Supplemental Cash Flow Information** |  |  |
| Payment of interest expenses | $- | $- |
| Payment of income tax expenses | $**-**  | $1600 |
| **Non-cash Investing and Financing activities** |  |  |
| Purchase of digital assets in the form of USDT | $7398200 | $- |
| Subscription fee from investors in the form of USDT | $8900000 | $2675000 |
| Issuance of common stocks to settle advance from subscription fee from investors | $- | $2755100 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

**MEGA MATRIX INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Rounded to the Nearest Hundred US Dollar, except for share data, unless otherwise stated)**

**1. ORGANIZATION AND PRINCIPAL ACTIVITIES**

*Reorganization and reclassification of Class A, Class B and Class C ordinary shares*

On October 8, 2024, Mega Matrix Inc. ("MPU Cayman" or the "Company"), Mega Matrix Corp. ("MPU DE", formerly "AeroCentury Corp." and "ACY"), a Delaware corporation, and MPU Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of MPU Cayman ("MPU Merger Sub") effected a redomicile merger (the "Redomicile Merger"). As a result, MPU Merger Sub merged with and into MPU DE, with MPU DE surviving as a wholly-owned subsidiary of MPU Cayman, pursuant to the Third Amended and Restated Agreement and Plan of Merger, dated May 31, 2024 (the "Merger Agreement"), which Merger Agreement was approved by MPU DE stockholders on September 25, 2024. Pursuant to the Redomicile Merger (as defined below) and as approved by the NYSE American, MPU Cayman's Class A Shares are now listed on the NYSE American under the symbol "MPU." The CUSIP/ISIN number relating to the Class A Shares of MPU Cayman is G6005C 108/ KYG6005C1087. Prior to the Redomicile Merger, shares of MPU DE's common stock were registered pursuant to Section 12(b) of the Exchange Act, and listed on the NYSE American under the symbol "MPU." As a result of the Redomicile Merger, each issued and outstanding share of MPU DE's common stock acquired prior to October 8, 2024 has been exchanged for one MPU Cayman Class A Share.

MPU Cayman is authorized to issue shares totaling US$120,000, divided into (i) 100,000,000 Class A Shares of par value US$0.001 each, (ii) 10,000,000 Class B Shares of par value US$0.001 each and (iii) 10,000,000 Preferred Shares of par value US$0.001 each. The board of directors of MPU Cayman is authorized to issue the Preferred Shares in different classes and series and, with respect to each class or series, to determine the designations, powers, preferences, privileges and other rights, including dividend rights, conversion rights, terms of redemption and liquidation preferences, any or all of which may be greater than the powers and rights associated with the Ordinary Shares, at such times and on such other terms as they think proper.

Upon the completion of the Redomicile Merger, MPU Cayman issued approximately 40,470,084 Class A Shares in the Redomicile Merger and the one Class A Share issued and outstanding prior to the Redomicile Merger has been cancelled. There are no Class B Share or Preferred Shares outstanding. The Company believed that it was appropriate to reflect the above transactions on a retroactive basis pursuant to ASC 260, *Earnings Per Share*. The Company has retroactively adjusted all share and per share data for all periods presented. The consolidated financial statements are prepared on the basis as if the reorganization became effective as of the beginning of the first year presented in the consolidated financial statements.

On August 15, 2025, the Company's shareholders approved an increase of the share capital to US$1,110,000, divided into: (i) 1,000,000,000 class A ordinary shares of par value US$0.001 each, (ii) 50,000,000 class B ordinary shares of par value US$0.001 each, (iii) 50,000,000 class C ordinary shares of par value US$0.001 each, and (iv) 10,000,000 preferred shares of par value US$0.001 each, by an addition of 900,000,000 class A ordinary shares of par value US$0.001 each, and 40,000,000 class B ordinary shares of par value US$0.001 each, and the creation of a new share class comprising of 50,000,000 class C ordinary shares of par value US$0.001 each.

On September 2, 2025, Mr. Yucheng Hu, Chairman of the Board of Directors and a shareholder of the Company, submitted a notice of conversion pursuant to the Company's Third Amended and Restated Memorandum and Articles of Association ("MAA"), requesting to convert 3,123,723 Class B ordinary shares, par value $0.001 per share ("Class B Shares"), into 3,123,723 Class C ordinary shares, par value $0.001 per share ("Class C Shares") (the "Conversion"). Each Class B Share is convertible into one (1) Class A ordinary share, par value$0.001 ("Class A Share"), or one (1) Class C Share, at the option of the holder. Each Class C Share is convertible into one (1) Class A Share at the option of the holder. Each Class A Share shall be entitled to one (1) vote, each Class B Share shall be entitled to one hundred (100) votes, and each Class C Share shall be entitled to fifty (50) votes. On September 3, 2025, Mr. Hu entered into a share transfer agreement, pursuant to which he agreed to transfer 2,290,390 Class C Shares to Mr. Yaman Demir, a director of the Company, at par value and as permitted under the MAA (the "Transfer"). The Conversion and the Transfer closed on September 22, 2025.

**MEGA MATRIX INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Rounded to the Nearest Hundred US Dollar, except for share data, unless otherwise stated)**

**1. ORGANIZATION AND PRINCIPAL ACTIVITIES (CONTINUED)**

*Repurchase of Class A ordinary shares and issuance of Class B ordinary shares*

On December 10, 2024, the Company entered into a share repurchase agreement ("Repurchase Agreement") and a share subscription agreement ("Subscription Agreement") with Mr. Yucheng Hu, the Company's Chairman and Chief Executive Officer, pursuant to which the Company effected a reclassification ("Reclassification") through an issuance of 5,933,700 Class B ordinary shares, par value $0.001 ("Class B Shares") to Mr. Hu at par value concurrent with the repurchase of 5,933,700 Class A ordinary shares, par value $0.001 ("Class A Shares") held by Mr. Hu at par value in accordance with the Companies Act (As Revised) of the Cayman Islands and the applicable memorandum and articles of association. The repurchased Class A Shares shall be cancelled and available for future issuance, without affecting the Company's authorized share capital. The closing of the Repurchase occurred on December 10, 2024.

 

*Setup of subsidiaries*

On September 24, 2024, the Company set up Bona Box FZ LLC, a wholly owned subsidiary in Abu Dhabi. Bona Box FZ LLC is aiming to produce short dramas to customers based in Arabian area.

The Company is engaged in operation of FlexTV, a short drama streaming platform based in Singapore that produces English and Thai dramas through Yuder Pte. Ltd. and Bona Box FZ LLC, indirect and direct wholly owned subsidiaries of the Company, respectively.

On September 24, 2025, the Company set up FunVerse Holding Inc, a wholly owned subsidiary in Cayman Islands. FunVerse Holding Inc is a holding company.

*Digital asset treasury ("DAT") reserve strategies*

In May 2025, the Company's Board of Directors approved the purchase of Bitcoin and/or Ethereum to hold as a treasury reserve asset. This business strategy was updated on July 2, 2025, in which the Company's Board of Directors approved to restart its Ethereum ("ETH") staking business and the exploration of a broader Web3-focused strategy. Through staking, the Company earns rewards that can be reinvested into ETH or used for general corporate purposes. The Company believes that its strategy to reinstate its ETH staking business will enhance long-term shareholder value. On August 21, 2025, the Company further updated its DAT reserve strategies and focus on stablecoin governance token its primary treasury asset.

The major subsidiaries of the Company as of September 30, 2025 are summarized as below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Name of Subsidiaries** | **Later of date of**<br>**incorporation or**<br>**Acquisition** | <br>**Place of**<br>**Incorporation** |<br>**% of**<br>**Ownership** | <br>**Principal**<br>**Activities** |
| ***Major subsidiaries:*** |  |  |  |  |
| FunVerse Holding Limited | January 7, 2024 | BVI | 100% | Investment holding |
| Yuder Pte. Ltd. | January 7, 2024 | Singapore | 100% | Short drama streaming platform |
| Bona Box FZ LLC | September 24, 2024 | Abu Dhabi | 100% | Short drama streaming platform |
| Saving Digital Pte. Ltd. | August 31, 2022 | Singapore | 100% | ETH staking |
| Marsprotocol Technologies Pte. Ltd. | March 1, 2023 | Singapore | 100% | Investment holding |
| FunVerse Holding Inc | September 24, 2025 | Cayman | 100% | Investment holding |

---

**MEGA MATRIX INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Rounded to the Nearest Hundred US Dollar, except for share data, unless otherwise stated)**

**1. ORGANIZATION AND PRINCIPAL ACTIVITIES (CONTINUED)**

*<u>Acquisition of FunVerse Holding Limited ("FunVerse") and its subsidiary</u>*

On January 7, 2024, MPU DE entered into and closed a definitive Share Exchange Agreement with FunVerse, a company incorporated under the laws of the British Virgin Islands and the sole parent company of Yuder Pte. Ltd. ("Yuder"), and the shareholders of FunVerse. Following the transaction, MPU DE owns sixty percent (60%) of equity interest of FunVerse. FunVerse, through Yuder, operates FlexTV, a short drama streaming platform based in Singapore that produces English and Thai dramas that are also translated into different languages for the users that are spread across various parts of the world. In addition to creating original dramas, Yuder also acquires third party content copyrights which it then translates and distributes on its FlexTV platform.

On August 15, 2024, MPU DE closed its acquisition of 40% equity interest in FunVerse Holding Limited ("FunVerse") and its wholly owned subsidiary, Yuder Pte. Ltd. ("Yuder"), at share consideration of 1,500,000 Class A Ordinary Shares of the Company. Upon the acquisition, the Company, through MPU DE, indirectly owns 100% equity interest in FunVerse and Yuder.

 

*Deconsolidation of staking business and leasing of regional aircraft business*

 

On August 31, 2022, MPU DE acquired all of the equity interest in Saving Digital Pte, Ltd., a Singapore corporation ("SDP") from Mr. Yucheng Hu for a nominal consideration of $10,000. SDP was intended to operate solo-staking business.

On March 1, 2023, SDP and Bit Digital Singapore Pte. Ltd. ("Bit Digital"), entered into a shareholders' agreement (the "Shareholders Agreement") with Marsprotocol Technologies Pte. Ltd. ("MTP"), to provide proof-of-stake technology tools for digital assets through the staking platform "MarsProtocol", an institutional grade non-custodial staking technology. Pursuant to the Shareholders Agreement, SDP invested $300,000 and owned 60% equity inteterest of MTP. Through the MarsProtocol platform, MTP planned to provide non-custodial staking tools. In June 2023, the Company ceased provision of non-custodial staking tools to third party customers. In August 2023, Bit Digital exited its investment in MTP and withdrew its capital contribution of SGD$120,000 from MTP. As a result of the transaction, SDP owns all outstanding ordinary shares of MTP.

In March 2024, the Company ceased solo-staking business. SDP was intended to operate solo-staking business.

In August 2023, per the recommendation of board of JetFleet Management Corp. ("JMC"), MPU DE, as a holder of a majority of the voting stock of JMC, elected to approve the winding up and dissolution of JMC. JMC ceased providing aircraft advisory and management services upon winding up and the Company deconsolidated JMC and its subsidiaries in December 2023.

Upon the Company's deconsolidation of its staking business operated by SDP and leasing of regional aircraft business operated by JMC, the Company focused on its short drama streaming platform business.

The management believed the deconsolidation does not represent a strategic shift, in both operating and financing aspects, because it is not changing the way it is running its business. The Company has not shifted the nature of its operations or the major geographic market area. The management believed the deconsolidation of does not represent a strategic shift that has (or will have) a major effect on the Company's operations and financial results. The deconsolidation is not accounted as discontinued operations in accordance with ASC 205-20.

**MEGA MATRIX INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Rounded to the Nearest Hundred US Dollar, except for share data, unless otherwise stated)**

**2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES**

***Basis of presentation***

 ****

The accompanying unaudited condensed consolidated financial statements are presented on a consolidated basis in accordance with accounting principles generally accepted in the United States of America ("US GAAP") for interim financial information, the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025 or for any other period. All intercompany balances and transactions have been eliminated on consolidation.

 **

***Fair value Measurement***

 **

The Company applies ASC Topic 820, Fair Value Measurements and Disclosures which defines fair value, establishes a framework for measuring fair value and expands financial statement disclosure requirements for fair value measurements.

ASC Topic 820 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) on the measurement date in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability.

ASC Topic 820 specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows:

Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.

Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. Unobservable inputs are valuation technique inputs that reflect the Company's own assumptions about the assumptions that market participants would use in pricing an asset or liability.

Fair value of digital assets is based on Level 1 inputs as these were based on observable quoted prices in the Company's principal market for identical assets. Management of the Company considers the carrying amount of cash and cash equivalents, accounts receivable, loans receivable due from a related party, other receivables, accounts payable, other payables and income taxes payable based on the short-term maturity of these instruments to approximate their fair values because of their short-term nature. Warrants were measured at fair value using unobservable inputs and categorized in Level 3 of the fair value hierarchy (Note 8).

**MEGA MATRIX INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Rounded to the Nearest Hundred US Dollar, except for share data, unless otherwise stated)**

**2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED)**

***Accounts receivable***

Accounts receivable are recorded at the gross billing amount less an allowance for expected credit losses. Accounts receivable do not bear interest.

The Company adopted Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13") to measure expected credit losses of accounts receivable.

The Company maintains an allowance for credit losses and records the allowance for credit losses as an offset to accounts receivable and the estimated credit losses charged to the allowance is classified as "General and administrative expenses" in the unaudited condensed consolidated statements of income and comprehensive income. The Company assesses collectability by reviewing accounts receivable on aging schedules because the accounts receivable were primarily consisted of online advertising service fees from certain customers. In determining the amount of the allowance for credit losses, the Company considers historical collectability based on past due status, the age of the balances, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Company's ability to collect from customers. Delinquent account balances are written-off against the allowance for expected credit loss after management has determined that the likelihood of collection is not probable.

As of September 30, 2025 and December 31, 2024, the Company did not provide expected credit losses against accounts receivable.

***Digital assets***

 ****

For the nine months ended September 30, 2025, the Company purchased bitcoin from open market. As of September 30, 2025, digital assets (primarily include bitcoin ("BTC") and Ethena ("ENA")) are initially recorded at cost in current assets in the accompanying unaudited condensed consolidated balance sheets.

The Company adopted ASU 2023-08, which requires entities to measure certain cryptocurrencies at fair value, with changes in fair value recorded in net income in each reporting period. The Company's digital assets are within the scope of ASU 2023-08.

ASC 820 defines "principal market" as the market with the greatest volume and level of activity for the asset or liability. The determination of the principal market (and, as a result, the market participants in the principal market) is made from the perspective of the reporting entity. The digital assets held by the Company are traded on a number of active markets globally. The Company considered CoinMarketCap to be its principal market as it provides reliable and great volume and level of activity for bitcoin for which the Company can access.

Purchases of digital assets by the Company are included within investing activities on the accompanying unaudited condensed consolidated statements of cash flows. The changes of digital assets are included within investing activities in the accompanying unaudited condensed consolidated statements of cash flows. Changes in fair value are reported as "changes in fair value on digital assets" and realized gains or losses are reported as "realized gains (loss) on digital assets" in the consolidated statements of operations. The Company accounts for its gains or losses in accordance with the first-in first-out method of accounting.

**MEGA MATRIX INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Rounded to the Nearest Hundred US Dollar, except for share data, unless otherwise stated)**

**2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED)**

***Content assets, net***

Content assets are classified as current content assets and non-current content assets, based on their estimated useful lives. Content assets are stated at cost less accumulated amortization and impairment if any. Content assets are amortized in a way which reflect the pattern in which the economic benefits of the content assets are expected to be consumed or otherwise used up. When assets are retired or disposed of, the costs and accumulated amortization are removed from the accounts, and any resulting gains or losses are included in income/loss in the year of disposition. Estimated useful lives are as follows:

---

| | |
|:---|:---|
|  | **Estimated<br> Useful Life** |
| Software | 12 months |
| Produced contents | 6 – 12 months |
| Copyrights | 12 – 36 months |

---

***Revenue Recognition***

*Membership and top-up streaming services ("IAP")*

 

Membership and top-up streaming services are referred to as In-App Purchases ("IAP"). The Company offers membership streaming services to subscribing members from various countries and the features of the plan, which primarily include access to exclusive and ad-free streaming of short dramas, and accelerated downloads and others. It's optional for users to subscribe for weekly, monthly or annual membership on the short drama streaming platform. Users can also top up their accounts to acquire in-app coins on our platform, which are then used to continue viewing the short dramas. Users can also earn in-app coins to watch short dramas by completing daily and new user tasks.

Full membership and top-up charges are prepaid before provision of membership and top-up streaming services. The collection of membership and top-up charges are initially recorded as "contract liabilities" on the unaudited condensed consolidated balance sheets and revenue is recognized ratably over the membership period and consumption of in-app coins as services are rendered.

*Online advertising services ("IAA")*

Online advertising services are referred to as In-App Advertising ("IAA"). The Company sells advertising services by delivering brand advertising primarily to third-party advertising agencies. The Company provides advertisement placements on its short drama streaming platform in different formats, including but not limited to video, banners, links, logos, brand placement and buttons. The transaction prices are varied according to the scale of impressions and types of the advertisements in the contracts with customers. The contracts have one performance obligation. Revenues are recognized over time. The Company has a right to consideration from the customers in an amount that corresponds directly with the value the Company's performance obligations completed to date. The Company adopted practical expedient under ASC 606-10-55-18, and recognizes revenues from provision of online advertising services based on amounts invoiced to the customers.

**MEGA MATRIX INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Rounded to the Nearest Hundred US Dollar, except for share data, unless otherwise stated)**

**2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED)**

***Revenue Recognition (continued)***

*Content licensing business*

The Company launched its content licensing business for its self-produced short dramas to certain online media platform in the year ended December 31, 2024. The Company entered into license agreements with third party platform customers, pursuant to which the Company grants license of its self-produced short-dramas to the platforms and allow them to distribute the short dramas for an agreed period of time. The transaction price is comprised of a fixed price and variable price which is calculated at a percentage of the revenues generated by the customers. The Company recognized revenues at fixed price upon granting license to the customers, and will recognize the variable price once the fees are collected. For the three months ended September 30, 2025 and 2024, the Company generated revenues of $509,500 and $20,000, respectively, from its content licensing business. For the nine months ended September 30, 2025 and 2024, the Company generated revenues of $1,700,500 and $20,000, respectively, from its content licensing business.

*Contract balances*

Contract liabilities are recognized if the Company receives consideration prior to satisfying the performance obligations, which include customer advances and deferred revenue under service arrangements.

As of December 31, 2024, the Company had contract liabilities of $2,095,500, which were recognized as revenues in the nine months ended September 30, 2025

*Disaggregation of revenue*

For the three and nine months ended September 30, 2025 and 2024, the Company disaggregate revenue into three revenue streams, consisting of In-App Purchases services, In-App Advertising services and content licensing business, as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Three Months<br> Ended September 30,** | **For the Three Months<br> Ended September 30,** | **For the Nine months<br> ended September 30,** | **For the Nine months<br> ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| In-App Purchase services | $4876400 | $9294400 | $17331900 | $23614200 |
| In-App Advertising services | 725600 | 1031100 | 1875900 | 2319000 |
| Content licensing business | 509500 | 20000 | 1700500 | 20000 |
|  | $**6111500** | $**10345500** | $**20908300** | $**25953200** |

---

**MEGA MATRIX INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Rounded to the Nearest Hundred US Dollar, except for share data, unless otherwise stated)**

**2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED)**

***Segment reporting***

 ****

The Company uses the management approach to determine operating segment. The management approach considers the internal organization and reporting used by the Company's chief operating decision maker ("CODM") for making decisions, allocation of resource and assessing performance.

The Company operates and manages its business as a single operating and reportable segment. The Company's CODM has been identified as the Chief Executive Officer who reviews the consolidated net income (loss) when making decisions about allocating resources and assessing performances of the Company. Significant segment expenses are the same as these presented under the operating costs and expenses in the consolidated statements of operations, and the difference between net revenue less the significant segment expenses and consolidated net income are the other segment items. The CODM reviews and utilizes these financial metrics together with non-financial metrics to make operation decisions, such as the determination of the fee rate at which the Company charges for its services and the allocation of budget between operating costs and expense.

The following table disaggregates the Company's revenues by primary geographical markets based on the location of customers for the three months ended September 30, 2025 and 2024.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the three months ended September 30, 2025** | **For the three months ended September 30, 2025** | **For the three months ended September 30, 2025** | **For the three months ended September 30, 2025** | **For the three months ended September 30, 2025** |
|  | **United<br> States and**<br>**Canada** | **Asia-**<br>**Pacific** | **Europe, Middle East**<br>**and Africa** | **Latin**<br>**America** |<br>**Total** |
| Membership and top-up streaming services revenue | $1053000 | $2179700 | $1360000 | $283700 | $4876400 |
| Online advertising services | - | 725600 | - | - | 725600 |
| Content licensing | - | 509500 | - | - | 509500 |
| **Total** | $**1053000** | $**3414800** | $**1360000** | $**283700** | $**6111500** |

---

 ****

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the three months ended September 30, 2024** | **For the three months ended September 30, 2024** | **For the three months ended September 30, 2024** | **For the three months ended September 30, 2024** | **For the three months ended September 30, 2024** |
|  | **United<br> States and**<br>**Canada** | **Asia-**<br>**Pacific** | **Europe, Middle East**<br>**and Africa** | **Latin**<br>**America** |<br>**Total** |
| Membership and top-up streaming services revenue | $2840500 | $4580200 | $1177400 | $696300 | $9294400 |
| Online advertising services | - | 1031100 | - | - | 1031100 |
| Content licensing | - | 20000 | - | - | 20000 |
| **Total** | $**2840500** | $**5631300** | $**1177400** | $**696300** | $**10345500** |

---

**MEGA MATRIX INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Rounded to the Nearest Hundred US Dollar, except for share data, unless otherwise stated)**

**2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED)**

***Segment reporting (continued)***

 ****

The following table disaggregates the Company's revenues by primary geographical markets based on the location of customers for the nine months ended September 30, 2025 and 2024.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** |
|  | **United<br> States and**<br>**Canada** | **Asia-**<br>**Pacific** | **Europe, Middle East**<br>**and Africa** | **Latin**<br>**America** |<br>**Total** |
| Membership and top-up streaming services revenue | $5719800 | $6696500 | $3896000 | $1091600 | $17331900 |
| Online advertising services | - | 1875900 | - | - | 1875900 |
| Content licensing | - | 1700500 | - | - | 1700500 |
| **Total** | $**5719800** | $**10272900** | $**3896000** | $**1091600** | $**20908300** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the nine months ended September 30, 2024** | **For the nine months ended September 30, 2024** | **For the nine months ended September 30, 2024** | **For the nine months ended September 30, 2024** | **For the nine months ended September 30, 2024** |
|  | **United<br> States and**<br>**Canada** | **Asia-**<br>**Pacific** | **Europe, Middle East**<br>**and Africa** | **Latin**<br>**America** |<br>**Total** |
| Membership and top-up streaming services revenue | $10691000 | $8107900 | $3133800 | $1681500 | $23614200 |
| Online advertising services | - | 2319000 | - | - | 2319000 |
| Content licensing | - | 20000 | - | - | 20000 |
| **Total** | $**10691000** | $**10446900** | $**3133800** | $**1681500** | $**25953200** |

---

 ****

***Going concern***

For the three months ended September 30, 2025 and 2024, the Company reported net losses of approximately $10.8 million and $3.2 million, respectively. For the nine months ended September 30, 2025 and 2024, the Company reported net losses of approximately $14.8 million and $8.7 million, respectively. In addition, the Company had accumulated deficits of approximately $41.1 million and $26.3 million as of September 30, 2025 and December 31, 2024, respectively, but the Company had working capital of approximately $32.7 million among which the Company held cash of approximately $9.8 million as of September 30, 2025, which is expected to support our operating and investing activities for the next 12 months.

The Company's liquidity is based on its ability to generate cash from operating activities and obtain financing from investors to fund its general operations and capital expansion needs. The Company's ability to continue as a going concern is dependent on management's ability to successfully execute its business plan, which includes increasing revenue while controlling operating cost and expenses to generate positive operating cash flows and obtain financing from outside sources.

Given the financial condition of the Company and its operating performance, the Company assesses current working capital is sufficient to meet its obligations for the next 12 months from the issuance date of this report. Accordingly, management continues to prepare the Company's unaudited condensed consolidated financial statements on going concern basis.

**MEGA MATRIX INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Rounded to the Nearest Hundred US Dollar, except for share data, unless otherwise stated)**

**2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED)**

***Concentration and credit risks***

 ****

1) Credit risk

Assets that potentially subject the Company to significant concentration of credit risk primarily consist of cash and cash equivalents. The maximum exposure of such assets to credit risk is their carrying amount as at the balance sheet dates. As of September 30, 2025, approximately $9.8 million were deposited in financial institutions in Singapore, and each bank accounts is insured by the government authority with the maximum limit of S$100,000. To limit exposure to credit risk relating to deposits, the Company primarily place cash and cash equivalent deposits with large financial institutions in Singapore which management believes are of high credit quality and the Company also continually monitors their credit worthiness.

The risk with respect to accounts receivable and amounts due from related parties is mitigated by credit evaluations the Company performs on its customers and its ongoing monitoring processes of outstanding balances.

The Company's operations are carried out in Singapore. Accordingly, the Company's business, financial condition and results of operations may be influenced by the political, economic and legal environments in Singapore as well as by the general state of the Singapore's economy. In addition, the Company's business may be influenced by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, interest rates and methods of taxation among other factors.

2) Foreign currency risk

Substantially all of the Company's operating activities that were conducted through the subsidiaries in Singapore and related assets and liabilities are denominated in SGD, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the Monetary Authority of Singapore ("MAS") or other authorized financial institutions at exchange rates quoted by PBOC. Approval of foreign currency payments by the MAS or other regulatory institutions requires submitting a payment application form together with suppliers' invoices and signed contracts. The value of SGD is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the MAS market.

3) Concentration risks

Accounts receivable are typically unsecured and derived from goods sold and services rendered to customers, thereby exposed to credit risk. The risk is mitigated by the Company's assessment of customers' creditworthiness and its ongoing monitoring of outstanding balances. The Company has a concentration of its receivables and revenues with specific customers. For the three and nine months ended September 30, 2025 and 2024, the Company had no customers which accounted for more than 10% of revenues.

As of September 30, 2025, two customers accounted for 48.7% and 12.0% of accounts receivable, respectively. As of December 31, 2024, two customers accounted for 38.3% and 15.7% of accounts receivable, respectively.

**MEGA MATRIX INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Rounded to the Nearest Hundred US Dollar, except for share data, unless otherwise stated)**

**2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED)**

***Recent accounting pronouncements***

 ****

On July 30, 2025, the FASB issued ASU 2025-05, which amends ASC 326-20 to provide a practical expedient for all entities which elect a practical expedient that assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset in developing reasonable and supportable forecasts as part of estimating expected credit losses, and an accounting policy election for all entities, other than a public business entity, that elect the practical expedient related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606. Under ASU 2025-05, an entity is required to disclose whether it has elected to use the practical expedient and, if so, whether it has also applied the accounting policy election. An entity that makes the accounting policy election is required to disclose the date through which subsequent cash collections are evaluated. ASU 2025-05 is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early adoption permitted. Entities should apply the new guidance prospectively. The Company is currently evaluating these new disclosure requirements and does not expect the adoption to have a material impact.

In January 2025, the FASB issued ASU 2025-01, "Income Statement – Comprehensive Income – Expense Disaggregation Disclosure (Subtopic 220-40): Clarifying the Effective Date." This pronouncement revises the effective date of ASU 2024-03 and clarifies that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Entities within the ASU's scope are permitted to early adopt the accounting standard update. The Company is currently evaluating these new disclosure requirements and does not expect the adoption to have a material impact.

In November 2024, the FASB issued ASU 2024-03, "Income Statement—Reporting Comprehensive Income (Subtopic 220-40): Disaggregation of Income Statement Expenses." This pronouncement introduces new disclosure requirements aimed at enhancing transparency in financial reporting by requiring disaggregation of specific income statement expense captions. Under the new guidance, entities are required to disclose a breakdown of certain expense categories, such as employee compensation; depreciation; amortization, and other material components. The disaggregated information can be presented either on the face of the income statement or in the notes to the financial statements, often using a tabular format. The ASU is effective for fiscal years beginning after December 15, 2025, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating these new disclosure requirements and does not expect the adoption to have a material impact.

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements — codification amendments in response to SEC's disclosure Update and Simplification initiative which amend the disclosure or presentation requirements of codification subtopic 230-10 Statement of Cash Flows — Overall, 250-10 Accounting Changes and Error Corrections — Overall, 260-10 Earnings Per Share — Overall, 270-10 Interim Reporting — Overall, 440-10 Commitments — Overall, 470-10 Debt — Overall, 505-10 Equity — Overall, 815-10 Derivatives and Hedging — Overall, 860-30 Transfers and Servicing — Secured Borrowing and Collateral, 932-235 Extractive Activities — Oil and Gas — Notes to Financial Statements, 946-20 Financial Services — Investment Companies — Investment Company Activities, and 974-10 Real Estate — Real Estate Investment Trusts — Overall. The amendments represent changes to clarify or improve disclosure and presentation requirements of above subtopics. Many of the amendments allow users to more easily compare entities subject to the SEC's existing disclosures with those entities that were not previously subject to the SEC's requirements. Also, the amendments align the requirements in the Codification with the SEC's regulations. For entities subject to existing SEC disclosure requirements or those that must provide financial statements to the SEC for securities purposes without contractual transfer restrictions, the effective date aligns with the date when the SEC removes the related disclosure from Regulation S-X or Regulation S-K. Early adoption is not allowed. For all other entities, the amendments will be effective two years later from the date of the SEC's removal.

Recently issued ASUs by the FASB, except for the ones mentioned above, have no material impact on the Company's unaudited condensed consolidated statements of operations and comprehensive loss or unaudited condensed consolidated balance sheets.

**MEGA MATRIX INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Rounded to the Nearest Hundred US Dollar, except for share data, unless otherwise stated)**

**3. ACQUISITION OF FUNVERSE**

On January 7, 2024, the Company acquired 60% of the equity interest of FunVerse at the cost of issuance of 1,500,000 ordinary shares. The fair value of the share consideration was $2,265,000 by reference to the closing price on January 7, 2024.

The Company has allocated the purchase price of FunVerse based upon the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date. The Company estimated the fair values of the assets acquired and liabilities assumed at the acquisition date in accordance with the business combination standard issued by FASB. The Company used carrying amount of assets and liabilities as fair value, which approximate the fair value, and used cost approach to estimate the fair value of content assets which was primarily comprised software and copyrights. The Company engaged an independent appraiser firm to estimate the fair value of assets acquired, liabilities assumed and content assets identified as of the acquisition date. Acquisition-related costs incurred for the acquisitions are not material and have been expensed as incurred in other operating expenses. The following table summarizes the estimated fair values of the identifiable assets acquired at the acquisition date, which represents the net purchase price allocation at the date of the acquisition of FunVerse based on a valuation performed by an independent valuation firm engaged by the Company.

---

| | |
|:---|:---|
|  | **January 7,**<br>**2024** |
| **ASSETS** |  |
| &nbsp;&nbsp;&nbsp;Net tangible liabilities (1) | $(466400) |
| &nbsp;&nbsp;&nbsp;Copyrights (2) | 581000 |
| &nbsp;&nbsp;&nbsp;Software (2) | 1048200 |
| &nbsp;&nbsp;&nbsp;Goodwill | 2889200 |
| &nbsp;&nbsp;&nbsp;Deferred tax liabilities | (277000) |
| &nbsp;&nbsp;&nbsp;Non-controlling interest | (1510000) |
| **Total purchase consideration** | $**2265000** |

---

(1) The following is a reconciliation of the fair value of major classes of assets acquired and liabilities assumed which comprised of net tangible liabilities on January 7, 2024.

(2) The copyrights and software, collectively known as content assets, are both applied to produce short dramas. The useful lives of these content assets ranged between 6 and 12 months.

---

| | |
|:---|:---|
|  | **January 7,**<br>**2024** |
| **ASSETS** |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $118300 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 323500 |
| &nbsp;&nbsp;&nbsp;Prepayments | 25200 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | 359400 |
| &nbsp;&nbsp;&nbsp;Content assets | 165300 |
| **Total assets** | $**991700** |
| **LIABILITIES** |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $43400 |
| &nbsp;&nbsp;&nbsp;Contract liabilities | 395000 |
| &nbsp;&nbsp;&nbsp;Other current liabilities and accrued expenses | 1019700 |
| **Total liabilities** | $**1458100** |
| **Net tangible liabilities** | $**(466400)** |

---

**MEGA MATRIX INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Rounded to the Nearest Hundred US Dollar, except for share data, unless otherwise stated)**

**3. ACQUISITION OF FUNVERSE (CONTINUED)**

On August 15, 2024, the Company closed its acquisition of 40% equity interest in FunVerse and Yuder, at share consideration of 1,500,000 Class A Ordinary Shares of the Company, at per share price of $1.51. Upon the acquisition, the Company owned 100% equity interest in FunVerse and Yuder. The acquisition of 40% equity interest in FunVerse does not result in a change in control of FunVerse and Yuder, which was accounted for as equity transactions. The difference between the carrying amount of the non-controlling interest as of August 15, 2024 and the fair value of 1,500,000 share consideration was recognized in additional paid-in capital.

**4. DIGITAL ASSETS**

Digital asset holdings were comprised of the following:

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| BTC | $1368600 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - |
| ENA | 4983200 | - |
| USDT | 2082500 | - |
| USDe | 500000 | - |
|  | $**8934300** | $**-**  |

---

For the three months ended September 30, 2025, the Company purchased one BTC from open market. For the three months ended September 30, 2025, the Company exchanged 1 BTC into ENA and realized exchange loss of $400. For the three months ended September 30, 2025, the Company recognized an increase in fair value of BTC of $86,800. For the nine ended September 30, 2025, the Company purchased 13 BTC from open market. For the nine months ended September 30, 2025, the Company exchanged one BTC into ENA and realized exchange loss of $400. For the nine months ended September 30, 2025, the Company recognized an increase in fair value of BTC of $105,800. As of September 30, 2025, the Company held 12 BTC with fair value of $1,368,600.

For the three and nine months ended September 30, 2025, the Company purchased 8,916,805 ENA from open market. For the three and nine months ended September 30, 2025, the Company did not sell ENA or exchange ENA into other digital assets. For the three and nine months ended September 30, 2025, the Company recognized a decrease in fair value of ENA of $1,454,400. As of September 30, 2025, the Company held 8,916,805 ENA with fair value of $4,983,200.

For the three and nine months ended September 30, 2025, the Company purchased 40 ETH from open market and exchanged 40 ETH into ENA. For the three and nine months ended September 30, 2025, the Company recognized an increase in fair value of $73,900. As of September 30, 2025, the Company did not hold ETH.

As of September 30, 2025, the Company held 2,082,500 USDT and 500,000 USDe, respectively. The fair value of USDT and USDe was both kept at $1.00 because one USDT/USDe is pegged to one U.S. dollar.

**MEGA MATRIX INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Rounded to the Nearest Hundred US Dollar, except for share data, unless otherwise stated)**

**4. DIGITAL ASSETS (CONTINUED)**

*Additional information about digital assets*

 

The following table presents additional information about BTC for the nine months ended September 30, 2025:

---

| | |
|:---|:---|
|  | **For the<br> Nine months<br> ended<br> September 30,**<br>**2025** |
| Opening balance | $- |
| Purchases of BTC | 630300 |
| Purchases of BTC from exchange of USDT | 748200&nbsp;&nbsp;&nbsp;&nbsp; |
| Exchange of BTC into ENA | (115300) |
| Exchange loss | (400) |
| Changes in fair value of BTC | 105800 |
|  | $**1368600** |

---

The following table presents additional information about ENA for the nine months ended September 30, 2025:

---

| | |
|:---|:---|
|  | **For the<br> Nine months<br> ended <br> September 30,**<br>**2025** |
| Opening balance | $- |
| Purchases of ENA from exchange of USDT | 6149900 |
| Purchases of ENA from exchange of BTC | 115300 |
| Purchases of ENA from exchange of ETH | 172400 |
| Changes in fair value of ENA | (1454400) |
|  | $**4983200** |

---

The following table presents additional information about ETH for the nine months ended September 30, 2025:

---

| | |
|:---|:---|
|  | **For the<br> Nine months<br> ended <br> September 30,**<br>**2025** |
| Opening balance | $- |
| Purchases of ETH | 98500 |
| Purchases of ENA from exchange of ETH | (172400) |
| Changes in fair value of ETH | 73900 |
|  | $**-** |

---

**MEGA MATRIX INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Rounded to the Nearest Hundred US Dollar, except for share data, unless otherwise stated)**

**4. DIGITAL ASSETS (CONTINUED)**

The following table presents additional information about USDT for the nine months ended September 30, 2025:

---

| | |
|:---|:---|
|  | **For the<br> Nine months<br> ended <br> September 30,**<br>**2025** |
| Opening balance | $- |
| Purchases of USDT | 719400 |
| Addition of USDT from private placement | 8900000 |
| Exchange of USDT into BTC | (748200) |
| Exchange of USDT into ENA | (6149900) |
| Exchange of USDT into USDe | (500000) |
| Payment of operating expenses | (138800) |
|  | $**2082500** |

---

The following table presents additional information about USDe for the nine months ended September 30, 2025:

---

| | |
|:---|:---|
|  | **For the <br> Nine months<br> ended <br> September 30,**<br>**2025** |
| Opening balance | $- |
| Purchases of USDe from exchange of USDT | 500000 |
|  | $**500000** |

---

**5. LONG-TERM INVESTMENTS**

As of September 30, 2025 and December 31, 2024, long-term investments were comprised of the following:

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| Investment in Quleduo | $1500000 | $1500000 |
| Investment in AIFLIX LLC ("AIFlix") | 213000 | - |
| Less: share of equity loss in Quleduo | (21300) | (19200) |
|  | $**1691700** | $**1480800** |

---

**MEGA MATRIX INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Rounded to the Nearest Hundred US Dollar, except for share data, unless otherwise stated)**

**5. LONG-TERM INVESTMENTS (CONTINUED)**

Quleduo is a privately held company which is engaged in software design and development. In May and September 2023 and January 2024, the Company made a total cash consideration of $1,500,000 in three instalments to acquire 25% of equity interest in Quleduo. The Company used equity method to measure the investment in Quleduo. For the three months ended September 30, 2025, Quleduo reported net income of approximately $1,300 and the Company recorded share of equity loss of $300. For the nine months ended September 30, 2025, Quleduo incurred net loss of approximately $8,100 and the Company recorded share of equity loss of $2,100. The Company assessed indicators reflecting an other-than-temporary decline in fair value below the carrying value and did not provide impairment against the investment in Quleduo.

On March 17, 2025, the Company setup AIFlix with Wardour Studios Inc. ("Wardour Studios"), a leading Hollywood production and digital-effects studio specializing in next-generation content creation, for AI-generated short drama production. The Company and Wardour Studios owned equity interest of 50% and 50% in AIFlix, respectively. For the nine months ended September 30, 2025, the Company made investment of $213,000 to AIFlix, and AIFLIX has not generated revenue or net income. The Company assessed indicators reflecting an other-than-temporary decline in fair value below the carrying value and did not provide impairment against the investment in AIFlix.

As of September 30, 2025 and December 31, 204, the Company owned 30% equity interest in MarsLand Global Limited ("MarsLand"), over which the Company exercised significant influence. The Company used equity method to measure the investment in MarsLand. During the year ended December 31, 2024, Marsland reported an underperformance and a majority of the employees resigned from Marsland. The Company assessed indicators reflecting an other-than-temporary decline in fair value below the carrying value. As of December 31, 2024, the Company provided full impairment against the investment in Marsland. As of September 30, 2025 and December 31, 2024, the Company had investment of $nil in Marsland.

The Company owned 7.6% equity interest in DaoMax Technology Co., Ltd, ("DaoMax"), over which the Company neither had control nor significant influence through investment in ordinary shares. The Company accounted for the investment in DaoMax using the measurement alternative at cost, less impairment, with subsequent adjustments for observable price changes resulting from orderly transactions for identical or similar investments of the same issuer. In September 2024, DaoMax was closed as DaoMax assessed that it could generate profits from operations. For the year ended December 31, 2024, the Company provided full impairment of $546,000 against investment in DaoMax. As of September 30, 2025 and December 31, 2024, the Company had investment of $nil in DaoMax.

**MEGA MATRIX INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Rounded to the Nearest Hundred US Dollar, except for share data, unless otherwise stated)**

**6. CONTENT ASSETS, NET**

Content assets were comprised of current content assets and non-current content assets. The useful lives of current content assets were below 12 months, while the useful lives of non-current content assets were ranged between 18 months and 36 months.

Current content assets were comprised of the following:

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| Produced contents |  |  |
| - in development and production | $238000 | $321600 |
| - released | 5971500 | 3449400 |
| Copyrights | 3131700 | 1691700 |
|  | 9341200 | 5462700 |
| Less: accumulated amortization | (7770600) | (3892900) |
| Less: accumulated impairment | (3000) | (3000) |
| **Total** | $**1567600** | $**1566800** |

---

Non-current content assets were comprised of the following:

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| Produced contents | $581000 | $581000 |
| Copyrights | 425900 | 313000 |
|  | 1006900 | 894000 |
| Less: accumulated amortization | (857100) | (710200) |
| **Total** | $**149800** | $**183800** |

---

The following is a schedule, by fiscal years, of amortization amount of content asset as of September 30:

---

| | |
|:---|:---|
| For the three months ending December 31, 2025 | $1168900 |
| For the year ending December 31, 2026 | 536200 |
| For the year ending December 31, 2027 | 12300 |
| **Total** | $**1717400** |

---

For the three months ended September 30, 2025 and 2024, the Company recorded amortization expenses of $1,369,300 and $1,351,000 on content assets, respectively. For the nine months ended September 30, 2025 and 2024, the Company recorded amortization expenses of $4,024,700 and $2,590,900 on content assets, respectively.

**MEGA MATRIX INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Rounded to the Nearest Hundred US Dollar, except for share data, unless otherwise stated)**

**7. OPERATING LEASES**

As of September 30, 2025 and December 31, 2024, the Company leases office spaces in the United States and Singapore under non-cancelable operating leases, with terms ranging within 12 months. The Company considers those renewal or termination options that are reasonably certain to be exercised in the determination of the lease term and initial measurement of right of use assets and lease liabilities. Lease expense for lease payment is recognized on a straight-line basis over the lease term.

The Company determines whether a contract is or contains a lease at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease. For operating leases that include rent holidays and rent escalation clauses, the Company recognizes lease expense on a straight-line basis over the lease term from the date it takes possession of the leased property. The Company records the straight-line lease expense and any contingent rent, if applicable, in the account of "general and administrative expenses" on the consolidated statements of operations and comprehensive loss.

The lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company applied practical expedient to account for short-term leases with a lease term within 12 months. The Company records operating lease expense in its consolidated statements of operations and comprehensive loss on a straight-line basis over the lease term and record variable lease payments as incurred.

For the three months ended September 30, 2025 and 2024, the Company recorded rent expenses of $7,600 and $46,800, respectively. For the nine months ended September 30, 2025 and 2024, the Company recorded rent expenses of $23,500 and $56,600, respectively.

**8. EQUITY**

<u>Ordinary Shares</u>

As of December 31, 2024, the Company has been authorized to issue 100,000,000 shares of Class A Ordinary Shares and 10,000,000 Class B Ordinary Shares. As of December 31, 2024, the Company had 34,536,384 shares of Class A Ordinary Shares and 5,933,700 shares of Class B Ordinary Shares issued and outstanding.

On August 15, 2025, the Company's shareholders approved an increase of the share capital to US$1,110,000, divided into: (i) 1,000,000,000 class A ordinary shares of par value US$0.001 each, (ii) 50,000,000 class B ordinary shares of par value US$0.001 each, (iii) 50,000,000 class C ordinary shares of par value US$0.001 each, and (iv) 10,000,000 preferred shares of par value US$0.001 each, by an addition of 900,000,000 class A ordinary shares of par value US$0.001 each, and 40,000,000 class B ordinary shares of par value US$0.001 each, and the creation of a new share class comprising of 50,000,000 class C ordinary shares of par value US$0.001 each.

On September 2, 2025, Mr. Yucheng Hu, Chairman of the Board of Directors and a shareholder of the Company, submitted a notice of conversion pursuant to the Company's Third Amended and Restated Memorandum and Articles of Association ("MAA"), requesting to convert 3,123,723 Class B ordinary shares, par value $0.001 per share ("Class B Shares"), into 3,123,723 Class C ordinary shares, par value $0.001 per share ("Class C Shares") (the "Conversion"). Each Class B Share is convertible into one (1) Class A ordinary share, par value$0.001 ("Class A Share"), or one (1) Class C Share, at the option of the holder. Each Class C Share is convertible into one (1) Class A Share at the option of the holder. Each Class A Share shall be entitled to one (1) vote, each Class B Share shall be entitled to one hundred (100) votes, and each Class C Share shall be entitled to fifty (50) votes. On September 3, 2025, Mr. Hu entered into a share transfer agreement, pursuant to which he agreed to transfer 2,290,390 Class C Shares to Mr. Yaman Demir, a director of the Company, at par value and as permitted under the MAA (the "Transfer"). The Conversion and the Transfer closed on September 22, 2025.

**MEGA MATRIX INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Rounded to the Nearest Hundred US Dollar, except for share data, unless otherwise stated)**

**8. EQUITY (CONTINUED)**

<u>Ordinary Shares (continued)</u>

On February 18, 2025, the Company entered into an At The Market Offering Agreement (the "Agreement") with H.C. Wainwright& Co., LLC (the "Manager") pursuant to which the Company may offer and sell, from time to time, through the Manager, Class A Ordinary Shares, par value $0.001 per share (the "Shares"), having an aggregate offering price of up to $20,000,000. For the three months ended September 30, 2025, the Company sold 1,690,562 shares of Class A Ordinary Share and raised net proceeds of $2,460,700. For the nine months ended September 30, 2025, the Company sold 2,089,272 shares of Class A Ordinary Share and raised net proceeds of $2,821,100. On March 10, 2025, the Company sold 5,800 shares of Class A Ordinary Share to the Manager as reimbursement for Manager's counsel's fees in connection with each due diligence update session.

On July 24, 2025, the Company signed a Securities Purchase Agreement (the "Agreement") with certain accredited investors (collectively, the "Investors"), pursuant to which the Investors, severally and not jointly, agreed, subject to certain terms and conditions of the Agreement, to purchase an aggregate of 16,000,000 Class A ordinary shares, par value $0.001 (the "Class A Shares"), for an aggregate purchase price of $16,000,000, or $1.00 per Class A Share (the "Offering Purchase Price", the transactions contemplated under the Agreement, the "Offering"). The Offering closed on the same day and the proceeds therefrom will provide a solid capital foundation for the Company's proposed strategic expansion into the stable coin sector. In connection with preparation of the Offering, on July 17, 2025, the Company entered into a Finder's Agreement with Web3 Capital Limited, a company formed under the laws of Cayman Islands (the "Finder"). The Company has agreed to a fee, to be paid in Class A Shares, equal to 5% of the Class A Shares subscribed by the investors introduced by the Finder. Upon the closing of the Offering, the Company issued 785,000 Class A Shares to the Finder under the Finder's Agreement.

In addition, pursuant to a prior engagement letter with H.C. Wainwright & Co. ("Wainwright"), the Company agreed to pay Wainwright a cash fee equal to 3% of the aggregate gross proceeds raised in the Offering that is in excess of $5,000,000. Wainwright acted as financial advisor to the Company and has not been engaged in the solicitation or distribution of the Offering.

For the three months ended September 30, 2025, the Company issued an aggregated 4,401,000 shares of Class A Ordinary Shares stocks to certain service providers, among which 41,000 shares were vest immediately and 4,360,000 were vest in four months through December 2025. For the three months ended September 30, 2025, the Company recognized services expenses of $2,677,100 in the account of general and administrative expenses and deferred expenses of $7,771,000 in the account of prepaid expenses and other assets, respectively. For the nine months ended September 30, 2025, the Company issued an aggregated 4,582,377 shares of Class A Ordinary Shares stocks to certain service providers, among which 222,377 shares were vest immediately and 4,360,000 were vest in four months through December 2025. For the three months ended September 30, 2025, the Company recognized services expenses of $2,905,400 in the account of general and administrative expenses and deferred expenses of $7,771,000 in the account of prepaid expenses and other assets, respectively.

For the three months ended September 30, 2025, the Company issued 3,614,150 restricted stock units to the Company's management and staff under the Amended and Restated 2021 Equity Incentive Plan, , among which 24,150 shares were vest immediately and 3,590,000 were vest in four months through December 2025. For the three months ended September 30, 2025, the Company recognized share-based compensation expenses of $2,153,300 in the account of general and administrative expenses and deferred expenses of $6,303,500 in the account of prepaid expenses and other assets, respectively. For the nine months ended September 30, 2025, the Company issued 3,796,750 restricted stock units to the Company's management and staff under the Amended and Restated 2021 Equity Incentive Plan, among which 206,750 shares were vest immediately and 3,590,000 were vest in four months through December 2025. For the nine months ended September 30, 2025, the Company recognized share-based compensation expenses of $2,315,000 in the account of general and administrative expenses and deferred expenses of $6,303,500 in the account of prepaid expenses and other assets, respectively.

**MEGA MATRIX INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Rounded to the Nearest Hundred US Dollar, except for share data, unless otherwise stated)**

**8. EQUITY (CONTINUED)**

<u>Ordinary Shares (continued)</u>

As of September 30, 2025, the Company had 61,789,783 shares of Class A Ordinary Shares, 2,809,977 shares of Class B Ordinary Shares, and 3,123,723 shares of Class C Ordinary Shares issued and outstanding.

<u>Warrants</u>

In connection with the private placement closed on January 17, 2024, the Company issued 2,490,000 warrants to certain investors. Each warrant entitling the holder to purchase one share of common stock at an exercise price of $1.50 per share at any time for a period of up to five (5) years starting six (6) months from the issuance date at which time the warrants will expire. No fractional shares of warrants will be issued in connection with any exercise. The number of warrants and the price of warrant may be subject to adjustment in the event of (i) recapitalization, reorganization, reclassification, consolidation, merger or sale, or (ii) stock dividends, subdivisions and combinations, As the warrants meet the criteria for equity classification under ASC 480 and ASC 815, therefore, the warrants are classified as equity. On January 17, 2024, the relative fair value of the warrants was $1,867,400, calculated using the Black-Scholes pricing model with the following assumptions:

---

| | |
|:---|:---|
|  | **As of January 17,<br> 2024** |
| Risk-free rate of return | 4.02% |
| Estimated volatility rate | 99.86% |
| Dividend yield | 0% |
| Spot price of underling ordinary share | $2.8 |
| Exercise price | $1.5 |
| Relative fair value of warrant | $1867400 |

---

In connection with the private placement closed on August 5, 2024, the Company issued (i) Series A common stock warrants to purchase an aggregate of 681,818 shares of Common Stock at an exercise price of $2.20 per share; and (iv) Series B common stock warrants to purchase an aggregate of 681,818 shares of Common Stock at an exercise price of $2.20 per share. The Series A common stock warrants will expire twenty-four months following the issuance date and the Series B common stock warrants will expire five and one-half years following the issuance date. No fractional shares of warrants will be issued in connection with any exercise. The number of both series of warrants and the price of warrants may be subject to adjustment in the event of (i) recapitalization, reorganization, reclassification, consolidation, merger or sale, or (ii) stock dividends, subdivisions and combinations. As both series of warrants meet the criteria for equity classification under ASC 480 and ASC 815, therefore, the warrants are classified as equity. On August 5, 2024, the relative fair value of the Series A common stock warrants and Series B common stock warrants were $26,720 and $88,766, respectively, calculated using the Black-Scholes pricing model with the following assumptions:

---

| | | |
|:---|:---|:---|
|  | **August 5, 2024** | **August 5, 2024** |
|  | **Series A <br> Warrants** | **Series B <br> Warrants** |
| Risk-free rate of return | 3.89% | 3.62% |
| Estimated volatility rate | 136.12% | 166.01% |
| Dividend yield | 0% | 0% |
| Spot price of underling ordinary share | $2.07 | $2.07 |
| Exercise price | $2.20 | $2.20 |

---

**MEGA MATRIX INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Rounded to the Nearest Hundred US Dollar, except for share data, unless otherwise stated)**

**8. EQUITY (CONTINUED)**

<u>Warrants (continued)</u>

In addition, the Company also issued pre-funded warrants to purchase 340,909 shares at an exercise price of $0.001 per pre-funded warrant. The investors exercised the pre-funded warrants in September 2024 and the Company issued 340,909 shares of common stocks.

As of September 30, 2025, the Company had outstanding warrants to purchase up to 3,853,636 Class A Ordinary Shares.

**9. INCOME TAXES**

The Company recorded income tax expenses of $800 and $400 in the three months ended September 30, 2025 and 2024, respectively. The Company recorded income tax expenses of $1,400 and income tax benefits of $275,800 in the nine months ended September 30, 2025 and 2024, respectively. The difference in the effective federal income tax rate from the normal statutory rate in the first quarter of 2024 was primarily because we recognized tax benefits arising from the reduction of valuation allowance on its deferred tax assets from FunVerse.

In assessing the valuation of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income or availability to carryback the losses to taxable income during periods in which those temporary differences become deductible. The Company considered several factors when analyzing the need for a valuation allowance including the Company's current three-year cumulative loss through September 30, 2025, the current year operation forecast, the Company's recent filing for protection under Chapter 11 of the bankruptcy code, the operation uncertainty of the Company's new business. Based on this analysis, the Company has concluded that a valuation allowance is necessary for its U.S. and foreign deferred tax assets not supported by either future taxable income or availability of future reversals of existing taxable temporary differences and has recorded a full valuation allowance on its deferred tax assets.

**10. RELATED PARTIES**

As of December 31, 2024, the Company had balance of $866,000 due from Quleduo, which is an equity investee of the Company (Note 5). The balance due from Quleduo was comprised of loan principal of $850,000 and interest receivable of $16,000.

Among the loans of $850,000, $300,000 of the loans bore interest rate of 8% per annum and remaining $550,000 of the loans were interest free. The loans were repayable in 12 months from the lending. The loans were made to support the operating activities of the equity investee.

For the nine months ended September 30, 2025, the Company collected repayment of $111,900 from Quleduo, and recognized interest income of $29,000.

As of September 30, 2025, the Company had balance of $767,100 due from Quleduo, which was comprised of loan principal of $756,100 and interest receivable of $11,000.

For the three and nine months ended September 30, 2024, the Company did not enter into any related party transactions.

**11. COMMITMENTS AND CONTINGENCIES**

In the ordinary course of the Company's business, the Company may be subject to lawsuits, arbitrations and administrative proceedings from time to time. The Company believes that the outcome of any existing or known threatened proceedings, even if determined adversely, should not have a material adverse effect on the Company's business, financial condition, liquidity or results of operations.

**12. SUBSEQUENT EVENTS**

On October 20, 2025, the Company entered into a consulting agreement with MZHCI, LLC (the "Consultant"), pursuant to which the Consultant will receive an aggregate of 181,818 Class A ordinary shares with fair value of $200,000 and a monthly service fee of $15,000.

On November 9, 2025, Mr. Yucheng Hu transferred 1,000,000 Class B Shares to Mr. Demir at par value after the Board's approval, pursuant to the share transfer agreements and in accordance with the Company's Third Amended and Restated Memorandum and Articles of Association. (the "Transfer").

## Exhibit 99.2

**Exhibit 99.2**

**MEGA MATRIX INC.**

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF**

**FINANCIAL CONDITION AND RESULTS OF OPERATIONS** 

*You should read the following discussion in conjunction with our unaudited condensed consolidated financial statements and the related notes included in Exhibit 99.1, submitted on the Form 6-K filed with the Securities and Exchange Commission (SEC") the same day. We urge you to carefully review and consider the various disclosures made by us in this Exhibit 99.2 and in our other SEC filings, including our annual report on Form 20-F for our fiscal year ended December 31, 2024 and in our reports on Form 6-K, as amended and/or updated from time to time. Some of the statements in the following discussion are forward-looking statements. See "Special note regarding forward-looking statements."*

Unless otherwise stated herein, and except where the context otherwise requires and for the purposes of this Exhibit 99.2 only:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Company," "we," "MPU Cayman," "us," and "our" refer to the combined business of Mega Matrix Inc., formerly known as Marsprotocol Inc., an exempted company incorporated under the laws of the Cayman Islands, and its consolidated subsidiaries, except where expressly noted otherwise or the context otherwise requires;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Digital Asset" refers to any computer-generated math-based and/or cryptographic protocol that may, among other things, be used to buy and sell goods or pay for services. Cryptocurrency represent one type of digital asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Exchange Act" refers the Securities Exchange Act of 1934, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "FunVerse" refers to the MPU DE's wholly-owned subsidiary FunVerse Holding Limited, a company incorporated under the laws of British Virgin Islands company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "MPU DE" refers to Mega Matrix Corp., a Delaware corporation and wholly-owned subsidiary of MPU Cayman after the Redomicile Merger;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "MPU Merger Sub" refers to MPU Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of MPU Cayman before the Redomicile Merger;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "MTP" refers to the MPU DE's wholly-owned subsidiary Marsprotocol Technologies Pte. Ltd., a Singapore exempt private company limited by shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Ordinary Shares" means Class A Shares, and Class B Shares and Class C Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Redomicile Merger" means the redomicile merger consummated on October 8, 2024, pursuant to which MPU Merger Sub merged with and into MPU DE, with MPU DE surviving as a wholly owned subsidiary of MPU Cayman. The merger was conducted in accordance with the Third Amended and Restated Agreement and Plan of Merger, dated May 31, 2024, which was approved by MPU DE stockholders on September 25, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "SEC" refers to the Securities and Exchange Commission;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Securities Act" refers to the Securities Act of 1933, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "SDP" refers to the FunVerse's wholly-owned subsidiary Saving Digital Pte. Ltd., a Singapore exempt private company limited by shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Yuder" refers to FunVerse's wholly-owned subsidiary, Yuder Ptd, Ltd., a Company incorporated under the laws of Singapore.

In this Exhibit 99.2, discrepancies in any table between the amounts identified as total amounts and the sum of the amounts listed therein are due to rounding.

**SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This Exhibit 99.2 and the information incorporated by reference herein and therein may contain "forward-looking statements" within the meaning of, and intended to qualify for the safe harbor from liability established by, the United States Private Securities Litigation Reform Act of 1995. These statements are based on our management's beliefs and assumptions and on information currently available to us. These statements, which are not statements of historical fact, may contain estimates, assumptions, projections and/or expectations regarding future events, which may or may not occur. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Important factors, among others, are: the ability to manage growth; ability to identify and integrate future acquisitions; ability to grow and expand our FlexTV and short drama streaming business within and outside the United States; ability to purchase Bitcoin or Ethereum ("BTC"), Ethereum ("ETH" or "Ether") or Ethena governance token ("ENA") at prices acceptable to us; ability to obtain additional financing in the future to fund capital expenditures and digital asset treasury reserve strategy and ability to create value; fluctuations in general economic and business conditions; costs or other factors adversely affecting the Company's profitability; litigation involving patents, intellectual property, and other matters; compliance with evolving regulations in data protection, digital assets and short-form video industries across the jurisdictions in which we operate; a pandemic or epidemic; the possibility that the Company may not succeed in developing its new lines of businesses due to, among other things, changes in the business environment, competition, changes in regulation, or other economic and policy factors; and the possibility that the Company's new lines of business may be adversely affected by other economic, business, and/or competitive factors. Cybersecurity threats and incidents and their impact on our systems and operations; our ability to manage working capital requirements efficiently; volatility in the market price and trading volume of our Class A Ordinary Shares. In some cases, you can identify these forward-looking statements by words or phrases such as "aim," "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "should," "will," "would," or similar expressions, including their negatives. We have based these forward looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements include:

● future operating or financial results;

● future payments of dividends, if any, and the availability of cash for payment of dividends, if any;

● future acquisitions, business strategy and expected capital spending;

● assumptions regarding interest rates and inflation;

● ability to attract and retain senior management and other key employees;

● ability to manage our growth;

● ability to manage risks associated with our Bitcoin and/or Ethereum treasury reserve strategy;

● fluctuations in general economic and business conditions;

● financial condition and liquidity, including our ability to obtain additional financing in the future (from warrant exercises or outside services) to fund capital expenditures, acquisitions and other general corporate activities;

● estimated future capital expenditures needed to preserve our capital base;

● the ability to meet the NYSE American continuing listing standards, and the potential delisting of our securities from NYSE American;

● potential changes in the legislative and regulatory environments;

● a lower return on investment; and

● potential volatility in the market price of our securities.

These and other factors are more fully discussed in our other filings with the SEC, including in "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in our annual report on Form 20-F for our fiscal year ended December 31, 2024 and in our reports on Form 6-K, as amended and/or updated from time to time. In light of these and other uncertainties, you should not conclude that we will necessarily achieve any plans, objectives or projected financial results referred to in any of the forward-looking statements. Except as required by law, we do not undertake to release revisions of any of these forward-looking statements to reflect future events or circumstances.

***Overview***

We are a holding company incorporated in Cayman Islands and headquartered in Singapore. The Company wholly owns MPU DE which wholly-owns FunVerse Holding Limited, a British Virgin Islands company ("FunVerse"). FunVerse directly owns Yuder Pte, Ltd., a Singapore corporation ("Yuder") and Saving Digital Pte. Ltd., a Singapore corporation. Yuder operates FlexTV, a short drama streaming platform based in Singapore that produces English, Japanese and Thai dramas that are also translated into different languages for our users that are spread across various parts of the world such as Europe, America, and Southeast Asia. In addition to creating original dramas, Yuder also acquires third party content licenses which it then translates and distributes on its FlexTV platform. To deliver diverse and international content to our users, Yuder's production team has filmed in various parts of the world, including, but not limited to, the United States, Mexico, Australia, Thailand, and Philippines.

On September 24, 2025, a wholly owned subsidiary FunVerse Holding INC was established under the laws of Cayman Islands. As of the date hereof, the organizational chart is now as follows:

![](ex99-2_001.jpg)

***Recent Corporate Developments and Material Changes***

*Updates to Digital Asset Treasury Reserve Strategy and Web3 Strategy*

On May 30, 2025, the Board of Directors of the Company (the "Board") first adopted a digital assets treasury ("DAT") reserve strategy to hold BTC and ETH, which was adjusted on August 21, 2025 to focus on leading stablecoins (such as Ethena token USDe) and their governance tokens (such as Ethena governance token, or ENA) as our primary treasury assets. On September 30, 2025, the Board updated our DAT strategy from holding leading stablecoins tokens and their governance tokens to on a "dual-engine" approach consisting of:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Stable
Yield, through holding a basket of stablecoins and deploying them into low-risk decentralized finance ("DeFi") strategies
to generate recurring income; and

&nbsp;&nbsp;&nbsp;&nbsp;(b) Growth
Potential, through allocation to governance tokens of leading stablecoin protocols, aiming to capture long-term upside in the stablecoin
sector.

In addition, depending on market conditions, we may continue to purchase, hold, or sell BTC, ETH, and other Digital Assets. We may engage in protocol staking and liquid staking activities ("Staking Activities") with a portion of the Digital Assets we hold, to the extent such Digital Assets are unencumbered and eligible for such activities. Staking Activities typically involve delegating our eligible Digital Assets to one or more third-party validators of the applicable blockchain network through one or more custodians and/or other service providers, or deploying our eligible Digital Assets on one or more third-party DeFi protocols. Generally, when we engage in Staking Activities, we will earn protocol staking rewards or other compensation (e.g., a share of a DeFi protocol's revenue), net of service fees. In some instances, our staked Digital Assets may be subject to a bonding period, meaning, we will be unable to freely withdraw or otherwise un-bond our staked Digital Assets.

As a result of our updated DAT strategy, subject to market conditions and anticipated needs of our business, we may purchase and/or sell cryptocurrencies such as BTC, ETH, USDe, ENA, and other stablecoin and stablecoin governance tokens to adjust our holdings. However, we do not plan to integrate cryptocurrencies into our short drama streaming platform known as "FlexTV" operated by Funverse, our indirect wholly-owned subsidiary. Our DAT strategy and DAT reserve will also not be used to support our streaming business or customers, which will remain a separate segment operated by Funverse.

Amid increasingly clear regulatory frameworks for stablecoins, we believe that this sector is entering into a phase of accelerated development. As multiple countries introduce regulations and integrate stablecoins into their financial systems, the issuance volume of stablecoins is poised for exponential growth.

A key aspect of our DAT strategy is to raise capital to be used to increase our positions in stablecoins in a manner which is accretive to shareholders. This can come in the form of equity, equity-linked debt, or other forms of offerings designed to maximize shareholder exposure to stablecoins within a prudent risk management framework.

We intend to allocate existing funds and capital to purchase ENA, USDe, BTC and other qualified digital assets pursuant to our dual-engine DAT strategy. Capital deployment will be gradual and subject to position limits, liquidity buffers, and drawdown controls. We plan to generate profit from our dual-engine DAT strategy through (i) capital appreciation of long-term strategic holdings; and (ii) engaging in Staking Activities to generate income. Our goal is to acquire and grow our overall positions for the digital assets that we hold and generate recurring yield on our digital asset holdings. Although our DAT strategy is intended for long-term holding for growth, we may monetize or rebalance our digital asset portfolio from time to time to meet liquidity needs, manage risk, or support operational or strategic initiatives. All such actions are subject to management review and, where appropriate, board oversight.

Tokenomics considerations for assets we hold or may acquire, including supply, issuance and peg maintenance, are discussed below.

Our DAT asset strategy is not intended to materially alter our short drama streaming business.

***Our Digital Assets Holdings***

 ****

We intend to acquire and hold digital assets totaling approximately $6.5 million in ENA and $3 million in BTC through the use of proceeds of the private placement we closed in July 2025. As of September 30, 2025, we have used approximately $7.6 million of such proceeds to purchase 8,916,805 ENA and 12 BTC. The company has not identified what other digital assets we intend to acquire using the remaining proceeds of the private placement we closed in July 2025. The Board plans to discuss and identify other digital assets the Company will acquire and hold by the end of 2025.

During the period between May 30, 2025 and September 30, 2025, we purchased a total of approximately 12 BTC at an aggregate purchase price of approximately $1,263,348 for an average purchase price of approximately $105,279 per BTC, inclusive of fees and expenses. We did not sell any BTC during the period between May 30, 2025 and September 30, 2025. As of September 30, 2025, at 4:00 p.m. Eastern Time, the market price of one BTC reported on the CoinMarketCap (our principal market data provider) was $114,056.

During the period between May 30, 2025 and September 30, 2025, we purchased a total of approximately 40 ETH at an aggregate purchase price of approximately $98, 5000 for an average purchase price of approximately $2,462 per ETH, inclusive of fees and expenses. We sold all of our ETH during the period between May 30, 2025 and September 30, 2025 for an aggregate price of approximately $169,928 for an average price of approximately $4,248 per ETH. As of September 30, 2025, at 4:00 p.m. Eastern Time, the market price of one ETH reported on the CoinMarketCap (our principal market data provider) was $4,146.

During the period between August 21, 2025 and September 30, 2025, we purchased a total of approximately 500,000 USDe at an aggregate purchase price of approximately $500,000 for an average purchase price of approximately $1.00 per USDe, inclusive of fees and expenses. During the period between August 21, 2025 and September 30, 2025, we purchased a total of approximately 8,916,805 ENA at an aggregate purchase price of approximately $6,435,184 for an average purchase price of approximately $0.72 per ENA, inclusive of fees and expenses and reflecting $1,451,582 in cumulative impairment losses attributable to the digital assets trading price fluctuations. We did not sell any USDe or ENA during the period between August 21, 2025 and September 30, 2025. As of September 30, 2025, at 4:00 p.m. Eastern Time, the market price of one USDe reported on the CoinMarketCap (our principal market data provider) was $1.00, and the market price of one ENA reported on CoinMarketCap (our principal market data provider) was $0.56.

As of September 30, 2025, we carried $6,852,274 of digital assets on our balance sheet, consisting of approximately (i) 12 BTC, (ii) 0 ETH , (iii) 8,916,805 ENA, and (iv) 500,000 USDe, and reflecting $1,274,829 in cumulative impairment losses attributable to the digital assets trading price fluctuations.

Due in particular to the volatility in the price of Digital Assets such as USDe, ENA, BTC, and ETH, we expect our adoption of ASU 2023-08 to increase the volatility of our financial results and it could significantly affect the carrying value of our Digital Assets on our balance sheet. Because we intend to purchase Digital Assets in future periods and increase our overall holdings of Digital Assets, we expect that the proportion of our total assets represented by our digital assets will increase in the future. As a result, and in particular with respect to the quarterly periods and full fiscal year with respect to which ASU 2023-08 will apply, and for all future periods, volatility in our earnings may be significantly more than what we experienced in prior periods.

As a result of our adoption of ASU 2023-08, as of September 30, 2025, we are required to apply a cumulative-effect net decrease to the opening balance of our retained earnings of $1,274,829.

*Private placement*

On July 24, 2025, the Company signed a Securities Purchase Agreement (the "Agreement") with certain accredited investors (collectively, the "Investors"), pursuant to which the Investors, severally and not jointly, agreed, subject to certain terms and conditions of the Agreement, to purchase an aggregate of 16,000,000 Class A ordinary shares, par value $0.001 (the "Class A Shares"), for an aggregate purchase price of $16,000,000, or $1.00 per Class A Share (the "Offering Purchase Price", the transactions contemplated under the Agreement, the "Offering"). The Offering closed on the same day and the proceeds therefrom will provide a solid capital foundation for the Company's proposed strategic expansion into the stablecoin sector.

In connection with preparation of the Offering, on July 17, 2025, the Company entered into a Finder's Agreement with Web3 Capital Limited, a company formed under the laws of Cayman Islands (the "Finder"). The Company has agreed to a fee, to be paid in Class A Shares, equal to 5% of the Class A Shares subscribed by the investors introduced by the Finder. Upon the closing of the Offering, the Company issued 785,000 Class A Shares to the Finder under the Finder's Agreement.

In addition, pursuant to a prior engagement letter with H.C. Wainwright & Co. ("Wainwright"), the Company agreed to pay Wainwright a cash fee equal to 3% of the aggregate gross proceeds raised in the Offering that is in excess of $5,000,000. Wainwright acted as financial advisor to the Company and has not been engaged in the solicitation or distribution of the Offering.

*Increase of share capital*

On August 15, 2025, the Company's shareholders approved an increase of the share capital to US$1,110,000, , divided into: (i) 1,000,000,000 class A ordinary shares of par value US$0.001 each, (ii) 50,000,000 class B ordinary shares of par value US$0.001 each, (iii) 50,000,000 class C ordinary shares of par value US$0.001 each, and (iv) 10,000,000 preferred shares of par value US$0.001 each, by an addition of 900,000,000 class A ordinary shares of par value US$0.001 each, and 40,000,000 class B ordinary shares of par value US$0.001 each, and the creation of a new share class comprising of 50,000,000 class C ordinary shares of par value US$0.001 each.

*Conversion of Class B ordinary shares into Class C ordinary shares and grant Class C ordinary shares to a management*

On September 2, 2025, Mr. Yucheng Hu, Chairman of the Board of Directors and a shareholder of the Company, submitted a notice of conversion pursuant to the Company's Third Amended and Restated Memorandum and Articles of Association ("MAA"), requesting to convert 3,123,723 Class B ordinary shares, par value $0.001 per share ("Class B Shares"), into 3,123,723 Class C ordinary shares, par value $0.001 per share ("Class C Shares") (the "Conversion"). Each Class B Share is convertible into one (1) Class A ordinary share, par value$0.001 ("Class A Share"), or one (1) Class C Share, at the option of the holder. Each Class C Share is convertible into one (1) Class A Share at the option of the holder. Each Class A Share shall be entitled to one (1) vote, each Class B Share shall be entitled to one hundred (100) votes, and each Class C Share shall be entitled to fifty (50) votes.

On September 3, 2025, Mr. Hu entered into a share transfer agreement, pursuant to which he agreed to transfer 2,290,390 Class C Shares to Mr. Yaman Demir, a director of the Company, at par value and as permitted under the MAA (the "Transfer").

The Conversion and the Transfer closed on September 22, 2025.

*Corporate Updates*

 

On June 27, 2025, the Board appointed Mr. Yaman Demir as an executive director of the Board. Mr. Yaman Demir, age 44, is a seasoned digital asset investor with a proven track record of successful exits across 20+ crypto projects. His investment portfolio spans key sectors including DeFi, NFT infrastructure, Layer1 network and stable coins.

On October 14, 2025, Ms. Siyuan Zhu notified the Board of Directors of her decision to resign from any and all positions on the Board (including any committees thereof), effective as of the same date. Ms. Zhu's resignation is for personal reasons and not due to any disagreement with the Company's management team or the Company's Board on any matter relating to the operations, policies or practices of the Company or any issues regarding the Company's accounting policies or practices. On October 14 2025, as a result of Ms. Zhu's departure, the Board appointed Dr. Yunhao Chen as an independent director of the Board, a member of the Compensation Committee and Audit Committee, and chairperson of the Audit Committee, effective immediately.

On October 27, 2025, Mr. Yucheng Hu notified the Board of Directors of his decision to step down as Chairman of the Board, while continuing to serve as an executive director and the Chief Executive Officer of the Company. On the same day, the Board appointed Mr. Yaman Demir to serve as Chairman of the Board.

**Key Components of Results of Operations**

***Revenues***

 **

We generated revenue primarily from (i) membership and top-up streaming services, also known as in-App purchase services ("IAP"), (ii) online advertising services, also known as in-App advertising services ("IAA"), and (iii) content licensing business of our short dramas. For the three and nine months ended September 30, 2025 and 2024, our revenues were comprised of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended <br> September 30,** | **For the Three Months Ended <br> September 30,** | **For the Nine months ended<br> September 30,** | **For the Nine months ended<br> September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| In-App Purchase services | $4876400 | $9294400 | $17331900 | $23614200 |
| In-App Advertising services | 725600 | 1031100 | 1875900 | 2319000 |
| Content licensing business | 509500 | 20000 | 1700500 | 20000 |
|  | $**6111500** | $**10345500** | $**20908300** | $**25953200** |

---

*Membership and top-up streaming services ("IAP")*

 ****

Membership and top-up streaming services are referred to as In-App Purchases ("IAP"). We offer membership services to subscribers in various countries and provide the plans that primarily include access to exclusive and ad-free streaming of short dramas, accelerated downloads and more. Users can choose to become weekly, monthly or annual members on our short drama streaming platform. Users can also top up their accounts to acquire in-app coins on our platform, which are then used to continue viewing the short dramas. Users can also earn in-app coins by completing daily and new user tasks.

For the three months ended September 30, 2025 and 2024, we collected recharge amount of approximately $4.8 million and $9.5 million from In-App Purchases services, respectively. For the nine months ended September 30, 2025 and 2024, we collected recharge amount of approximately $17.5 million and $25.3 million from In-App Purchases services, respectively. We recognize revenues ratably over the membership period and consumption of in-app coins as services are rendered.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** |
|  | **United <br> States and**<br>**Canada** | **Asia-**<br>**Pacific** | **Europe, <br> Middle East**<br>**and Africa** | **Latin**<br>**America** |<br>**Total** |
| Revenues from In-App Purchases services | $5719800 | $6696500 | $3896000 | $1091600 | $17331900 |
| Period Active Users ("PAU")(1) | 697259 | 2237881 | 1611055 | 707035 | 5253230 |
| Average membership and top-up streaming services revenue per active user ("ARPU")(2) | $8.20 | $2.99 | $2.42 | $1.44 | $3.30 |
| Period Paying Users ("PPU") (3) | 123175 | 214764 | 134603 | 49429 | 521971 |
| Average membership and top-up streaming services revenue per paying user ("ARPPU")(4) | $46.44 | $31.18 | $28.94 | $20.63 | $33.20 |

---

(1) A PAU is defined as a user who has downloaded and opened FlexTV app at least once. For the nine months ended September 30, 2025, the PAU is calculated at the total of nine months PAU.

(2) ARPU is defined as average membership and top-up streaming services revenue generated by each active user in one period.

(3) A PPU is defined as a user who has registered for a membership or topping up, provided a method of payment, and is entitled to access FlexTV services. This membership or topping up does not include participation in free trials or other promotional offers extended by the company to new users. For the nine months ended September 30, 2025, the PPU is calculated at the total of nine monthly PPU.

(4) ARPPU is defined as average membership and top-up streaming services revenue generated by each paying user in one period.

*Online advertising services ("IAA")*

 ****

Online advertising services are referred to as In-App Advertising ("IAA"). We sell advertising services by delivering brand advertising primarily to third-party advertising agencies. We provide advertisement placements on our short drama streaming platform in different formats, including but not limited to video, banners, links, logos, brand placement and buttons. We identify one performance obligation in the contracts with customers. Revenues are recognized over time based on amounts invoiced to the customers.

 ****

*Content licensing business*

 ****

The Company launched its content licensing business for its self-produced short dramas to certain online media platforms in the year of 2024. The Company entered into license agreements with third party platform customers, pursuant to which the Company grants licenses of its self-produced short-dramas to the platforms and allows them to distribute the short dramas for an agreed period of time. The transaction price is comprised of a fixed price and variable price which is calculated at a percentage of the revenues generated by the customers. The Company recognized revenues at fixed price upon granting licenses to the customers, and will recognize the variable price once the fees are collected. For the three months ended September 30, 2025 and 2024, the Company generated revenues of approximately $0.5 million and $20,000, respectively, from its content licensing business. For the nine months ended September 30, 2025 and 2024, the Company generated revenues of approximately $1.7 million and $20,000, respectively, from its content licensing business.

 ****

***Cost of revenues***

For the three and nine months ended September 30, 2025 and 2024, the cost of revenues was primarily comprised of platform service fees charged by third party payment processors, amortization of produced contents and software and copyrights which were applied to produce short dramas and other expenses which were directly attributable to producing short dramas.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended<br> September 30,** | **For the Three Months Ended<br> September 30,** | **For the Nine months ended<br> September 30,** | **For the Nine months ended<br> September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Platform service fees charged by third party payment processors | $1596300 | $2795700 | $4896700 | $7339300 |
| Amortization of content assets | 1369300 | 1351000 | 4024700 | 2590900 |
| Others | 230400 | 147000 | 624600 | 572600 |
|  | $**3196000** | $**4293700** | $**9546000** | $**10502800** |

---

***Selling expenses***

Selling and marketing expenses primarily consist of advertising expenses, primarily composed of traffic expenses, and other miscellaneous expenses.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended<br> September 30,** | **For the Three Months Ended<br> September 30,** | **For the Nine months ended<br> September 30,** | **For the Nine months ended<br> September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Advertising expenses | $2604800 | $6404400 | $10384200 | $18332700 |
| Others | 27400 | 33500 | 81100 | 168300 |
|  | $**2632200** | $**6437900** | $**10465300** | $**18501000** |

---

***General and administrative expenses***

General and administrative expenses primarily consist of (i) IT expenses, (ii) payroll and welfare expenses advertising expenses; (iii) professional and consulting expenses including legal expenses, audit expenses and other consultants, and (iv) other miscellaneous expenses.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended<br> September 30,** | **For the Three Months Ended<br> September 30,** | **For the Nine months ended<br> September 30,** | **For the Nine months ended<br> September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| IT expenses | $1158400 | $724900 | $3187900 | $2177100 |
| Payroll and welfare expenses | 2837000 | 474700 | 3782500 | 2041600 |
| Consulting expenses | 5239400 | 629600 | 6600600 | 2261300 |
| Others | 601600 | 472600 | 942800 | 936300 |
|  | $**9836400** | $**2301800** | $**14513800** | $**7416300** |

---

***Income taxes***

 ****

We account for income taxes in accordance with the authoritative guidance, which requires income tax effects for changes in tax laws to be recognized in the period in which the law is enacted.

 ****

*Cayman Islands*

Under the current laws of the Cayman Islands, we are not subject to tax on income or capital gains. Additionally, upon payments of dividends by us our shareholders, no withholding tax will be imposed.

 

*United States*

 

The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state. Currently we are not under any audit examination from federal or state tax authority in the United States.

The tax expenses primarily come from the state minimum taxes and franchise taxes.

 

*Singapore*

We are subject to corporate income tax for its business operation in Singapore. Tax on corporate income is imposed at a flat rate of 17% based on the adjusted taxable income.

Deferred tax assets and liabilities are recognized using enacted tax rates for the effect of temporary differences between the book and tax bases of recorded assets and liabilities. The ASC 740 – Accounting for Income Tax guidance also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that a portion of the deferred tax asset will not be realized.

We have determined that a valuation allowance is necessary against the full population of the deferred tax assets as based on all available evidence, we do not anticipate that our future taxable income will be sufficient to recover our deferred tax assets. However, should there be a change in our ability to recover our deferred tax assets, we will re-valuate our position and release a portion or all the valuation allowance if required.

The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax regulations. In accordance with the authoritative guidance on accounting for uncertainty in income taxes, we recognize liabilities for uncertain tax positions based on the two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained in audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. As of September 30, 2025, we do not have any uncertain tax positions based on our analysis.

We reevaluate these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit and new audit activities. Any change in these factors could result in the recognition of a tax benefit or an additional charge to the tax provision.

**Results of Operations**

The following table represents our unaudited condensed consolidated statement of operations for the three and nine months ended September 30, 2025 and 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended<br> September 30,** | **For the Three Months Ended<br> September 30,** | **For the Nine Months Ended<br> September 30,** | **For the Nine Months Ended<br> September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Revenues | $6111500 | $10345500 | $20908300 | $25953200 |
| Cost of revenues | (3196000) | (4293700) | (9546000) | (10502800) |
| Gross profit | **2915500** | **6051800** | **11362300** | **15450400** |
| **Operating expenses:** |  |  |  |  |
| Selling expenses | (2632200) | (6437900) | (10465300) | (18501000) |
| General and administrative expenses | (9836400) | (2301800) | (14513800) | (7416300) |
| **Total operating expenses** | **(12468600)** | **(8739700)** | **(24979100)** | **(25917300)** |
| **Loss from operations** | **(9553100)** | **(2687900)** | **(13616800)** | **(10466900)** |
| **Other income (expenses):** |  |  |  |  |
| Changes in fair value of digital assets | (1293700) |  | (1274700) | 2238700 |
| Share of equity income (loss) | 300 |  | (2100) |  |
| Impairment of long-term investments |  | (546000) |  | (770800) |
| Changes in fair value of trading securities | (2600) |  | (3800) |  |
| Interest income, net | 2200 | 84800 | 96600 | 58200 |
| Other income (expenses), net | 3800 | (5600) | 16200 | 1600 |
| **Total other (expenses) income, net** | **(1290000)** | **(466800)** | **(1167800)** | **1527700** |
| **Loss from operations before income tax** | **(10843100)** | **(3154700)** | **(14784600)** | **(8939200)** |
| Income tax (expenses) benefits | (800) | (400) | (1400) | 275800 |
| **Net loss and comprehensive loss** | $**(10843900)** | **(3155100)** | **(14786000)** | **(8663400)** |

---

*For the three months ended September 30, 2025 and 2024*

 

*Revenues*

For the three months ended September 30, 2025, we collected recharge amount of approximately $4.8 million from membership and top-up streaming services, we generated revenues from membership and top-up streaming services of approximately $4.9 million, online advertising service of approximately $0.7 million and content licensing services of approximately $0.5 million, respectively. For the three months ended September 30, 2025, we had paying users of 157,371. We earned ARPPU of $30.99 for the three months ended September 30, 2025.

For the three months ended September 30, 2024, we collected recharge amount of approximately $9.5 million from membership and top-up streaming services, we generated revenues from membership and top-up streaming services of approximately $9.3 million, online advertising service of approximately $1.0 million and content licensing services of $20,000, respectively. For the three months ended September 30, 2024, we had paying users of 359,354. We earned ARPPU of $25.86 for the three months ended September 30, 2024.

For the three months ended September 30, 2025, our revenues were approximately $6.1 million, decreasing by approximately $4.2 million from $10.3 million for the three months ended September 30, 2024. The decrease was attributable to a decrease of approximately $4.4 million in revenues from membership and top-up streaming services and a decrease of approximately $0.3 million from online advertising services, partially offset by an increase of approximately $0.5 million in content licensing business.

*Revenues from membership and top-up streaming services.* Our revenues from membership and top-up streaming services for the three months ended September 30, 2025 decreased by approximately $4.4 million, or 47.5%. The decrease was primarily caused by a decrease in paying users from 359,354 for the three months ended September 30, 2024 to 157,371 for the same period of 2025, affected by the decrease in the release of new short-dramas on our platform and the reduced advertising efforts to attract new paying users, due to the sharp rise in the unit user acquisition cost, driven by intensified competition as a result of rapidly increasing new entrants into the short-drama industry. For the three months ended September 30, 2025, we focused on developing short-dramas for our content licensing business.

*Revenues from content licensing business.* Our revenues from content licensing business were approximately $0.5 million for the three months ended September 30, 2025. We commenced the content licensing business in the third quarter of 2024, and generated minimal revenues of $20,000 for the three months ended September 30, 2024.

 

*Cost of revenues*

For the three months ended September 30, 2025, our cost of revenues was approximately $3.2 million, decreasing by approximately $1.1 million from $4.3 million for the three months ended September 30, 2024. The changes in cost of revenues was primarily derived from a decrease of approximately $1.2 million in platform service fees charged by third party payment processors which was in line with a decrease in revenues from membership and top-up streaming services.

*Gross profit* 

As a result of the foregoing, we generated gross profit of approximately $2.9 million and $6.1 million, respectively, for the three months ended September 30, 2025 and 2024.

 

*Selling expenses*

Our selling expenses decreased by approximately $3.8 million, or 59.1%, from approximately $6.4 million for the three months ended September 30, 2024 to approximately $2.6 million for the same period of 2025. The decrease was primarily due to a decrease of approximately $3.8 million in advertising expenses which was in line with our decrease in revenues from membership and top-up streaming services.

*General and administrative expenses*

For the three months ended September 30, 2025, we incurred general and administrative expenses of approximately $9.8 million, representing an increase of approximately $7.5 million, or 327.3% from approximately $2.3 million for the three months ended September 30, 2024. The increase was primarily attributable to an increase of approximately $0.4 million in IT expenses because we incurred more IT support expenses for our short drama streaming platform, an increase of approximately $2.4 million in payroll expenses, which was because we issued more ordinary shares as compensation expenses to management, leading to an increase of share-based compensation expense of approximately $2.1 million, and an increase of approximately $4.6 million in consulting expenses, which was because we issued more ordinary shares with as compensation expenses to consultants leading to an increase of share-based compensation expense of approximately $2.4 million and an increase of consulting expenses of approximately $1.7 million, which was incurred in private placements.

*Net Loss*

As a result of the foregoing, net loss for the three months ended September 30, 2025 was approximately $10.8 million, increasing by approximately $7.6 million, or 243.7%, from approximately $3.2 million for the three months ended September 30, 2024.

*For the nine months ended September 30, 2025 and 2024*

 

*Revenues*

For the nine months ended September 30, 2025, we collected recharge amount of approximately $17.5 million from membership and top-up streaming services, we generated revenues from membership and top-up streaming services of approximately $17.3 million, online advertising service of approximately $1.9 million and content licensing services of approximately $1.7 million, respectively. For the nine months ended September 30, 2025, we had paying users of 521,971. We earned ARPPU of $33.20 for the nine months ended September 30, 2025.

For the nine months ended September 30, 2024, we generated revenues from membership and top-up streaming services of $23.6 million, online advertising service of $2.3 million and content licensing services of $20,000, respectively. For the nine months ended September 30, 2024, we had paying users of 856,672. We earned ARPPU of $27.57 for the nine months ended September 30, 2024.

Compared with revenues for the nine months ended September 30, 2024, our revenues for the nine months ended September 30, 2025 decreased by approximately $5.0 million, or 19.4%. The decrease was primarily due to a decrease of approximately $6.3 million in revenues from membership and top-up streaming services, partially offset by an increase of revenues from content licensing business of approximately $1.7 million.

*Revenues from membership and top-up streaming services.* Our revenues from membership and top-up streaming services for the nine months ended September 30, 2025 decreased by approximately $6.3 million, or 26.6%. The decrease was primarily caused by a decrease in paying users from 856,672 for the nine months ended September 30, 2024 to 521,971 for the same period of 2025, affected by a decrease in release of new short-dramas on our platform and the reduced advertising efforts to attract new paying users, due to the sharp rise in the unit user acquisition cost, driven by intensified competition as a result of rapidly increasing new entrants into the short-drama industry. For the nine months ended September 30, 2025, we focused on developing short-dramas for our content licensing business.

*Revenues from content licensing business.* Our revenues from content licensing business were approximately $1.7 million for the nine months ended September 30, 2025. We commenced the content licensing business in the third quarter of 2024, and generated minimal revenues of $20,000 for the nine months ended September 30, 2024.

 

*Cost of revenues*

For the nine months ended September 30, 2025 and 2024, the cost of revenues decreased by approximately $1.0 million, or 9.1%. The changes in cost of revenues was primarily derived from a decrease of approximately $2.4 million in platform service fees charged by third party payment processors which was in line with a decrease in revenues from membership and top-up streaming services, partially offset by an increase of approximately $1.4 million in amortization of content assets with an increase in content assets on our platform.

*Gross profit* 

As a result of the foregoing, we generated gross profit of approximately $11.4 million and $15.5 million, respectively, for the nine months ended September 30, 2025 and 2024.

 

*Selling expenses*

Our selling expenses decreased by approximately $8.0 million, or 43.4%, from approximately $18.5 million for the nine months ended September 30, 2024 to approximately $10.5 million for the same period of 2025. The decrease was primarily due to a decrease of approximately $7.9 million in advertising expenses which was in line with our decrease in revenues from membership and top-up streaming services.

*General and administrative expenses*

For the nine months ended September 30, 2025, we incurred general and administrative expenses of approximately $14.5 million, representing an increase of approximately $7.1 million, or 95.7% from approximately $7.6 million for the nine months ended September 30, 2024. The increase was primarily attributable to an increase of approximately $1.0 million in IT expenses because we incurred more IT support expenses for our short drama streaming platform, an increase of approximately $1.7 million in payroll expenses, which was because we issued more ordinary shares as compensation expenses to management, leading to an increase of share-based compensation expense of approximately $2.1 million, and an increase of approximately $4.3 million in consulting expenses, which was because we issued more ordinary shares as compensation expenses to consultants leading to an increase of share-based compensation expense of approximately $2.4 million and an increase of consulting expenses of approximately $1.7 million which was incurred in private placements.

*Income tax (expenses) benefits*

Income tax expenses were $1,400 for the nine months ended September 30, 2025, which was state tax incurred by one subsidiary.

Income tax benefits were approximately $0.3 million for the nine months ended September 30, 2024, which was mostly driven by a deferred tax liability of $0.3 million from intangible assets acquired from Yuder Pte Ltd.

*Net Loss*

As a result of the foregoing, net loss for the nine months ended September 30, 2025 was approximately $14.8 million, increasing by approximately $6.1 million, or 70.7%, from approximately $8.7 million for the nine months ended September 30, 2024.

 ****

***Liquidity and Capital Resources***

To date, we have financed our operating and investing activities primarily through cash generated from operating activities and equity financing through private placements. As of September 30, 2025, the Company held cash of approximately $9.8 million.

For the three months ended September 30, 2025 and 2024, the Company reported net losses of approximately $10.8 million and $3.2 million, respectively. For the nine months ended September 30, 2025 and 2024, the Company reported net losses of approximately $14.8 million and $8.7 million, respectively. In addition, the Company had accumulated deficits of approximately $41.1 million and $26.3 million as of September 30, 2025 and December 31, 2024, respectively, but the Company had working capital of approximately $32.7 million among which the Company held cash of approximately $9.8 million and digital assets of approximately $8.9 million as of September 30, 2025, which is expected to support our operating and investing activities for the next 12 months.

The Company's liquidity is based on its ability to generate cash from operating activities and obtain financing from investors to fund its general operations and capital expansion needs. The Company's ability to continue as a going concern is dependent on management's ability to successfully execute its business plan, which includes increasing revenue while controlling operating cost and expenses to generate positive operating cash flows and obtain financing from outside sources.

Given the financial condition of the Company and its operating performance, the Company assesses current working capital is sufficient to meet its obligations for the next 12 months from the issuance date of the Form 6-K of which this exhibit is a part of Accordingly, management continues to prepare the Company's unaudited condensed consolidated financial statements on going concern basis.

The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities at the date of the financial statements, (ii) the disclosure of contingent assets and liabilities, and (iii) the reported amounts of revenue and expenses during the reporting period. Actual results may differ from those estimates. Estimates and judgments are used when accounting for the amount and timing of future cash flows associated with each asset that are used to evaluate whether assets are impaired, accounting for income taxes, and the amounts recorded as allowances for credit losses.

*Cash Flow*

The following table sets forth a summary of our cash flows for the nine months ended September 30, 2025 and 2024 presented:

---

| | | |
|:---|:---|:---|
|  | **For the Nine months ended<br> September 30,** | **For the Nine months ended<br> September 30,** |
|  | **2025** | **2024** |
| Net cash (used in) provided by operating activities | $(7475300) | $4915100 |
| Net cash used in investing activities | (1550900) | (1601700) |
| Net cash provided by financing activities | 9921500 | 3504900 |
| Net changes in cash and cash equivalents | 895300 | 6818300 |
| Cash, cash equivalents, beginning of period | 8870800 | 3129800 |
| **Cash, cash equivalents, end of period** | $**9766100** | $**9948100** |

---

*Operating activities*

Net cash used in operating activities for the nine months ended September 30, 2025 was approximately $7.5 million, primarily attributable to net loss of approximately $14.8 million, adjusted for (a) non-cash items including amortization of content assets of approximately $4.0 million, changes in fair value of digital assets of approximately $1.2 million and share-based compensation expenses to certain management and non-employees of approximately $19.2 million, and (b) changes in operating assets and liabilities including (i) an increase of content assets of approximately $4.0 million as we invested in content assets since we acquired FunVerse in January 2024, and (ii) an increase of approximately $13.3 million in prepaid expenses and other current assets due to deferral of share-based compensation expenses.

Net cash provided by operating activities for the nine months ended September 30, 2024 was $4.9 million, primarily attributable to net loss of approximately $8.7 million, adjusted for (a) non-cash items including an increase in fair value of approximately $2.2 million in digital assets, amortization of content assets of approximately $2.6 million, impairment of long-term investments of approximately $0.8 million, and share-based compensation expenses to certain employees of approximately $1.3 million, and (b) changes in operating assets and liabilities including (i) a decrease of digital assets of approximately $12.3 million as we exchanged ETH and USDT into cash, (ii) an increase of content assets as we invested in content assets since we acquired FunVerse in January 2024, and (iii) an increase of approximately $1.4 million in contract liabilities and an increase of approximately $3.2 million in accrued and other current liabilities, which were caused by acquisition of Yuder in January 2024.

*Investing activities*

For the nine months ended September 30, 2025, the cash flow used in investing activities was approximately $1.6 million, which was primarily attributable to purchase of digital assets of approximately $1.4 million and investment of approximately $0.2 million in one equity investee, partially offset by collection of loans of approximately $0.1 million from a related party.

For the nine months ended September 30, 2024, the cash flow used in investing activities was approximately $1.6 million, which was primarily attributable to purchase of digital assets of approximately $0.6 million and investment in equity investees of approximately $0.5 million, loans of $0.6 million made to a related party, partially offset by acquisition of cash of approximately $0.1 million from acquisition of Yuder.

*Financing activities*

For the nine months ended September 30, 2025, we raised cash of approximately $9.9 million from private placements.

For the nine months ended September 30, 2024, we raised cash of approximately $3.5 million from private placement closed in January 2024, May 2024 and August 2024.

***Critical Accounting Estimates***

In preparing the unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the assets or liabilities in the future.

We consider an accounting estimate to be critical if: (i) the accounting estimate requires us to make assumptions about matters that were highly uncertain at the time the accounting estimate was made, and (ii) changes in the estimate that are reasonably likely to occur from period to period or use of different estimates that we reasonably could have used in the current period, would have a material impact on our financial condition or results of operations. The management determines there are no critical accounting estimates.

## Exhibit 99.3

**Exhibit 99.3**

![](ex99-3_001.jpg)

Mega Matrix Inc. (NYSE American: MPU) December 5 2025

![](ex99-3_002.jpg)

This presentation and other written or oral statements made from time to time by representatives of Mega Matrix Inc. (sometimes referred to as "Mega Matrix") contains forward - looking statements within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. All statements in this press release other than statements that are purely historical are forward looking statements. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose," and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward - looking statements. These forward - looking statements are not guarantees for future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward - looking statements. Important factors, among others, are the: ability to manage growth; ability to identify and integrate future acquisitions; ability to grow and expand our FlexTV business; ability to purchase Stablecoins and their Governance Token, Bitcoin or Ethereum at the price that we want; ability to reinitiate the ETH staking business, ability to implement the strategic expansion into the stablecoin sector, ability to obtain additional financing in the future to fund capital expenditures and our digital asset treasury reserve strategy and ability to create value; fluctuations in general economic and business conditions; costs or other factors adversely affecting the Company's profitability; litigation involving patents, intellectual property, and other matters; potential changes in the legislative and regulatory environment; a pandemic or epidemic; the possibility that the Company may not succeed in developing its new lines of businesses due to, among other things, changes in the business environment, competition, changes in regulation, or other economic and policy factors; and the possibility that the Company's new lines of business may be adversely affected by other economic, business, and/or competitive factors. The forward - looking statements in this press release and the Company's future results of operations are subject to additional risks and uncertainties set forth under the heading "Risk Factors" in documents filed by the Company with the Securities and Exchange Commission ("SEC"), including the Company's latest annual report on Form 20 - F, filed with the SEC on March 28, 2025, and are based on information available to the Company on the date hereof. In addition, such risks and uncertainties include the inherent risks with investing in $ENA, Bitcoin and/or Ethereum, including Stablecoin Governance Token, Bitcoin's and Ethereum's volatility; and risk of implementing a new digital asset treasury reserve strategy. The Company undertakes no obligation to update or revise any forward - looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Readers are cautioned not to place undue reliance on forward - looking statements, which speak only as of the date of this press release.

![](ex99-3_003.jpg)

Investor Notice Investing in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider the risks, uncertainties and forward - looking statements described under "Risk Factors" in our most recent annual report on Form 20 - F, filed with the SEC on March 28, 2025,and other SEC filings. If any of these risks were to occur, our business, financial condition or results of operations would likely suffer. In that event, the value of our securities could decline, and you could lose part or all of your investments. The risks and uncertainties we described are not the only ones facing us. Additional risks not presently known to us or that we currently deem immaterial may also impair our business operations. In addition, our past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to anticipate results in the future. Industry and Market Data This Presentation has been prepared by the Company and its Representatives and includes market data and other statistical information from third - party industry publications and sources as well as from research reports prepared for other purposes. Although the Company believes these third - party sources are reliable as of their respective dates, none of the Company or any of its respective Representatives has independently verified the accuracy or completeness of this information and cannot assure you of the data's accuracy or completeness. Some data are also based on the Company's good faith estimates, which are derived from both internal sources and the third - party sources. None of the Company or its Representatives make any representation or warranty with respect to the accuracy of such information. The Company expressly disclaims any responsibility or liability for any damages or losses in connection with the use of such information herein. Accordingly, such information and data may not be included in, may be adjusted in, or may be presented differently in, any registration statement, prospectus, proxy statement or other report or document to be filed or furnished by the Company. Trademarks and Intellectual Property All trademarks, service marks, and trade names of the Company and its respective affiliates used herein are trademarks, service marks, or registered trade names of the Company or its respective affiliate, respectively, as noted herein. Any other product, company names, or logos mentioned herein are the trademarks and/or intellectual property of their respective owners, and their use is not alone intended to, and does not alone imply, a relationship with the Company, or an endorsement or sponsorship by or of the Company. Solely for convenience, the trademarks, service marks and trade names referred to in this Presentation may appear without the®, TM or SM symbols, but such references are not intended to indicate, in any way, that the Company or the applicable rights owner will not assert, to the fullest extent under applicable law, their rights or the right of the applicable owner or licensor to these trademarks, service marks and trade names.

![](ex99-3_004.jpg)

Next - Gen Entertainment ð Stablecoin DAT One - stop short drama platform delivering binge - worthy, mobile - first entertainment to global audiences Strategic accumulation of high - quality digital assets including BTC and leading stablecoin's governance token

![](ex99-3_005.jpg)

Next - Gen Entertainment ð DAT

![](ex99-3_006.jpg)

FlexTV Original + Series 1 Total Revenue 2 Market Value of Digital Assets 2 Gross Margin 2 100+ $20.9M $8.9M 5M+ ~ 55% 7,600+ Short Drama Series 1 Period Active User 2, 3 Note: 1. As of Nov 30 th , 2025. 2. As of Sep 30 th , 2025, for the nine months ended September 30, 2025. 3. An active user is defined as a user who has downloaded and opened FlexTV app at least once in the period 2025 Q3 Operational Highlights

![](ex99-3_007.jpg)

2025 Q3 Financial Performance Briefing Note: 1. A Period Active User (PAU) is defined as a user who has downloaded and opened FlexTV app at least once. For the nine months ended September 30, 2025, the PAU is calculated at the total of nine months PAU. 2. Average Revenue per User (ARPU) is defined as average membership and top - up streaming services revenue generated by each active user in one period. 3. A Period Paying User (PPU) is defined as a user who has registered for a membership or topping up, provided a method of payment, and is entitled to access FlexTV services. This membership or topping up does not include participation in free trials or other promotional offers extended by the company to new users. For the nine months ended September 30, 2025, the PPU is calculated at the total of nine monthly PPU. 4. Average Revenue per Paying User (ARPPU) is defined as average membership and top - up streaming services revenue generated by each paying user in one period. Total Revenue Period Active Users (PAU) 1 Average Revenue per User (ARPU) 2 Average Revenue per Paying User (ARPPU) 4 Period Paying Users (PPU) 3 Content Licensing In - App Advertising In - App Purchase

![](ex99-3_008.jpg)

United States and Canada 32.9% Asia - Pacific 38.5% Europe, Middle East and Africa 22.4% Latin America 6.3% United States and Canada 13.3% Asia - Pacific 42.6% Europe, Middle East and Africa 30.7% Latin America 13.5% 2025 Q3 Revenue and User Regional Breakdown Note: For the nine months ended September 30, 2025, the PAU is calculated at the total of nine months PAU. A Period Active User (PAU) is defined as a user who has downloaded and opened FlexTV app at least once.

![](ex99-3_009.jpg)

Vertical Short Drama

![](ex99-3_010.jpg)

![](ex99-3_011.jpg)

Global Short Drama Market 5.5 8.0 56.6 2021 A 2022 A Source: WISE GUY Reports, YH Research 2023 A 2024 A 2025 E 2026 E 2027 E 2028 E 2029 E Global Short Drama Market Size ͣ $billion ͤ and . It is ▪ Global short drama market size was estimated at expected to reach , representing a five year

![](ex99-3_012.jpg)

FlexTV Overview FlexTV Home Page FlexTV Original+ FlexTV , the flagship product of Mega Matrix Inc. (NYSE American : MPU), is a global leader in short - form vertical drama technology . As the first short drama company publicly listed in the U . S . , MPU is advancing its growth through a dual - engine strategy of content production and global distribution, with the goal of building a full - stack content ecosystem encompassing original IP development, AI oriented efficient production, intelligent distribution, user acquisition, and IP commercialization . FlexTV features 7 , 600 + short - drama series and has produced 100 + original series , covering a wide range of high - demand genres and localized into 15 languages . Supported by robust in - house production capabilities, an efficient multi - language localization pipeline, and an expanding global distribution network, FlexTV reaches more than 10 million users across 100 + countries .

![](ex99-3_013.jpg)

FlexTV's Global Presence ▪ FlexTV App is available in globally, covering England Spanish

![](ex99-3_014.jpg)

Production x Distribution Growth Strategy Content Driven User Oriented FlexTV Flagship APP FlexTV app specifically designed for short dramas, optimized for vertical viewing and high frequency engagement Distribution Platform – Reaching Audiences at Scale FlexTV Original+ ONE - STOP SHORT DRAMA PLATFORM Data driven content recommendation engines ensure each user receives content that fits their preferences and behavior Tailored user interfaces, subtitles, and recommendation algorithms Supports diversified monetization through user recharges, ad revenue, subscription models and content licensing Dedicated scriptwriters, directors, and production teams focused on crafting short dramas with high emotional impact We create original intellectual properties with franchising and licensing potential across regions and formats Agile production model enables us to respond quickly to market trends and audience feedback From romance, suspense to fantasy and action, we produce a wide range of genres to appeal to different demographics Original Content Production – Creating High Quality Content

![](ex99-3_015.jpg)

Creative & Content Development User Acquisition & Content Promotion Production & Filming Post - Production Localization & Global Readiness • In house Scriptwriters – develop high retention storylines tailored to short drama format • Concept & Visual Design – mood boards, lookbooks, visual tone established internally We don't just create — we distribute • In house Producers & Line Producers – coordinate shoots with agility and cost control • On set Teams – efficient execution with trusted crews for fast turnaround • In house Editors skilled in short drama pacing — emphasize emotional beats and clean narrative arcs within 3 minutes constraints • Sound Design & Color Grading – provides quick - turn soundtracks, deliver polished masters optimized for different platforms • Subtitling & Translators – multilingual subtitling (EN/JP/ID/TH etc.), ready for global release • Cultural Adaptation – tailor content tone for different markets to ensure emotional resonance and viewer relatability • Media Buyers & Creative Marketers – produces performance creatives and manages ad buying across TikTok, Meta, YouTube, etc. • Data Driven Optimization – iterate on content style and user retention A One - stop Short Drama Production

![](ex99-3_016.jpg)

FlexTV Business Model z IAP Content Licensing IAA In - App Purchase ͣ IAP ͤ Subscription Episode Unlocking Pre - roll Ads Product Placement Banner Ads FlexTV Originals Remakes Rights Joint Premier In - App Advertising ͣ IAA ͤ Content Licensing

![](ex99-3_017.jpg)

FlexTV's Top Series

![](ex99-3_018.jpg)

FlexTV Public Relations and Awards The 6 th Global Internet CEO Conference (GICC) MPU FlexTV Wins "Outstanding Overseas Pan - Entertainment Product of the Year" and "Overseas Brand of the Year" The 5 th Global Internet CEO Summit FlexTV won the Gloden Sail Award for "Outstanding Pan - Entertainment Product 2024 " The 6 th Hainan International Film Festival FlexTV won the "Best Overseas Platform" award in the DataEye Short Drama Ranking List 45 th American Film Market (AFM) In Las Vegas, MPU Delivered a Speech at the 45th American Film Market FlexTV International Forum APOS 2024 , Hosted by Media Partners Asia In Indonesia, FlexTV offered insights about short drama industry in the session"The Rise of Short - Form Dramas : Business Models and Future Trends" The 2024 International Short Drama Festival In UC Irvine, FlexTV Wins Dual Short Drama Awards at the 2024 International Short Drama Festival, advocates for the flourishing of Short Drama

![](ex99-3_019.jpg)

Mega Matrix Aims to

![](ex99-3_020.jpg)

To Develop Digital Asset Treasury Strategy on Stablecoin and Governance Token Pairs

![](ex99-3_021.jpg)

Note: 1. Standard Chartered: Stablecoin Market Could Grow to $2T by End - 2028 Source: https:// www.coindesk.com/markets/2025/04/15/stablecoin - market - could - grow - to - usd2t - by - end - 2028 - standard - chartered Stablecoin : Future of Digital Dollar

![](ex99-3_022.jpg)

Market Cap 1 Monthly Transfer Volume 2 Monthly Active Addresses 3 Number of Holders Mass Adoption in Stablecoin Note: 1. Sum of circulating market cap of all tracked stablecoins as of Nov 30 th , 2025 2. Sum of value transferred on - chain across all tracked stablecoins in the past 30 days of Nov 30 th , 2025 3. Number of on - chain addresses that have transferred a tracked stablecoin in the past 30 days of Nov 30 th , 2025 Source: https://app.rwa.xyz/stablecoins

![](ex99-3_023.jpg)

With Huge Growth Potential Source: Standard Chartered "Stablecoins: The first killer app" (https://av.sc.com/corp - en/nr/content/docs/sc - stablecoins - the - first - killer - app.pdf) and just . As the sector becomes legitimized, a move to measure is feasible. Current Potential Current At present, stablecoins are equivalent in size to only 1% 1% Potential U.S. M2 Penetration FX Penetration

![](ex99-3_024.jpg)

Dual Engines for Stability & Growth

![](ex99-3_025.jpg)

$2.0B $ENA Market Cap 15B Total $ENA Supply $7.18B USDe Supply $1.34B USDtb Supply 19% sUSDe APY 2024 24 Chains Accepted 867K Users 5% sUSDe APY current Ethena is a Leading DeFi Protocol on Ethereum, Issuing Crypto - Native Digital Dollars, whose governance token is $ENA Source: CoinMarketCap, https://ethena.fi/ Note: as of Nov 30 th , 2025

![](ex99-3_026.jpg)

▪ Ethena is the issuer of USDe, the 3rd largest digital dollar behind Tether (USDT) and Circle (USDC), and manages the issuance of USDtb, the 8th largest digital dollar. Source: DefiLlama.com as of Nov 30 th , 2025 Note: 1. While USDtb is issued by a third party, Ethena Labs created the architecture enabling USDtb and manages the issuance and redemption of USDtb under a services agreement with the issuer. USDe: The Largest DeFi - Native Stablecoin

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- 3rd largest tokenized dollar asset - Offering relative stability to USD, without reliance on traditional banking - Peg stability supported via delta - neutral hedging of crypto assets - Revenue is generated from staking and funding rates - Collateral held in "Off - Exchange Settlement" solutions to minimize counterparty risk - 10th largest stablecoin - Backed by BlackRock's USD Institutional Digital Liquidity Fund Token, BUIDL. - Seeks to maintain a USD peg through cash or cash - equivalent reserves, with 90% allocated to BUIDL for high stability and liquidity - Expected to be fully GENIUS Act compliant by Q4 2025 Tokenized Digital Dollar BUIDL - Backed Digital Dollar Source: https://docs.ethena.fi/how - usde - works; https://docs.ethena.fi/usdtb Ethena Stablecoins: USDe & USDtb

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Web3 Wallets ▪ Ethena's USDe is a crypto - native synthetic dollar utilizing spot assets as backing, on - chain custody, and centralized liquidity venues Centralized Exchanges OES Providers USDe Redeem Receive USDT USDe Mint Deposit USDT Protocol Source: https://docs.ethena.fi/how - usde - works How USDe Works

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• Stablecoins and their Stablecoin Governance Tokens are a highly volatile asset, and MPU's operating results may significantly fluctuate, including due to the highly volatile nature of the price of Stablecoins and their Stablecoin Governance Token and erratic market movements. • MPU operates in a highly competitive environment and will compete against other companies and other entities with similar strategies, including companies with significant holdings in Stablecoin Governance Token and other digital assets, and MPU's business, operating results, and financial condition may be adversely affected if MPU is unable to compete effectively. • The emergence or growth of other digital assets, including those with significant private or public sector backing, including by governments, consortiums or financial institutions, could have a negative impact on the price of MPU and adversely affect MPU's securities. • MPU's Stablecoin Governance Token holdings will be less liquid than its cash and cash equivalents and may not be able to serve as a source of liquidity for MPU. • MPU will face risks relating to the custody of Stablecoins and their Stablecoin Governance Token. If MPU or third - party service providers experience a security breach or cyberattack and unauthorized parties obtain access to MPU's Stablecoins and Stablecoin Governance Tokens, MPU may lose some or all of its Stablecoins and Stablecoin Governance Tokens and MPU's financial condition and results of operations could be materially adversely affected. • MPU's Stablecoins and Stablecoin Governance Tokens acquisition strategy exposes MPU to risk of non - performance of counterparties, including in particular risks relating to Ethena, hyperliquid and sky including as a result of the inability or refusal of a counterparty to perform because of a deterioration in the relationship between MPU and such counterparty or the counterparty's financial condition and liquidity and for any other reason. • Stablecoins, Stablecoin Governance Tokens and other digital assets are novel assets, which will expose MPU to significant legal, commercial, regulatory and technical uncertainty, which could materially adversely affect MPU's financial position, operations and prospects. • The regulatory regime for digital assets in the U.S. is uncertain. MPU may be unable to effectively react to proposed legislation and regulation of digital assets, which could adversely affect its business. • Stablecoin's, Stablecoin Governance Token's and other digital asset's status as a "security" in any relevant jurisdiction, as well as the status of their related products and services in general is subject to a high degree of uncertainty and if MPU is unable to properly characterize such product or service offering, MPU may be subject to regulatory scrutiny, inquiries, investigations, fines and other penalties, which may adversely affect MPU's business, operating results, and financial condition. • Regulatory changes classifying Stablecoins, Stablecoin Governance Tokens and other digital assets as a "security" could lead MPU to be classified as an "investment company" under the Investment Company Act of 1940 , as amended, and could adversely affect the market price of such crypto assets and the market price of MPU's securities . • Changes in laws or regulations, or a failure to comply with any laws or regulations, including any applicable financial industry regulation, could have a material adverse impact on us and our activities .

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Mega Matrix Inc. (NYSE American: MPU) 21 Floor, 88 Market Street, CapitaSpring, Singapore 048948 ir@megamatrix.io