# EDGAR Filing Document

**Accession Number:** 0001866518
**File Stem:** 0001683168-23-000242
**Filing Date:** 2023-1
**Character Count:** 894959
**Document Hash:** 91e327f0b21fb6ba9fae8df911dd01e4
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001683168-23-000242.hdr.sgml**: 20230120

**ACCESSION NUMBER**: 0001683168-23-000242

**CONFORMED SUBMISSION TYPE**: F-1/A

**PUBLIC DOCUMENT COUNT**: 10

**FILED AS OF DATE**: 20230120

**DATE AS OF CHANGE**: 20230119

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SolarJuice Co., Ltd.
- **CENTRAL INDEX KEY:** 0001866518
- **STANDARD INDUSTRIAL CLASSIFICATION:** SEMICONDUCTORS & RELATED DEVICES [3674]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** E9
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** F-1/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-267486
- **FILM NUMBER:** 23538402

**BUSINESS ADDRESS:**
- **STREET 1:** 6950 PRESTON AVENUE
- **CITY:** LIVERMORE
- **STATE:** CA
- **ZIP:** 94551
- **BUSINESS PHONE:** 888-57S-1940

**MAIL ADDRESS:**
- **STREET 1:** 6950 PRESTON AVENUE
- **CITY:** LIVERMORE
- **STATE:** CA
- **ZIP:** 94551

[**Table of Contents**](#a26)

***As filed with the Securities and Exchange Commission on January 19, 2023.***

 **Registration No. 333-267486**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM F-1**

 **(Amendment No. 4)**

**REGISTRATION STATEMENT**

**UNDER<br> THE SECURITIES ACT OF 1933**

**SOLARJUICE CO., LTD.**

*(Exact name of Registrant as specified in its charter)*

 

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| | | |
|:---|:---|:---|
| **Cayman Islands**<br> *(State or other jurisdiction of*<br> *incorporation or organization)* | **4931**<br> *(Primary Standard Industrial<br> Classification Code Number)* | **Not Applicable**<br> *(I.R.S. Employer<br> Identification Number)* |

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**1/10-12 Forsyth Close**

**Wetherill Park, Sydney, NSW, Australia**

**+61 2 9725 1111**

*(Address, including zip code, and telephone number, including area code, of Registrant's principal executive offices)*

**Randolph Conone**

**Chief Financial Officer**

**4741 Urbani Avenue**

**McClellan Park, California 95652**

**888-575-1940**

*(Name, address, including zip code, and telephone number, including area code, of agent for service)*

**Copies to:**

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| | |
|:---|:---|
| **Mitchell S. Nussbaum, Esq.**<br> **David J. Levine, Esq.**<br> **James A. Prestiano, Esq.**<br> **New York, New York 10154**<br> **Telephone: (212) 407-4000**<br> **Facsimile: (212) 407-4990**  | **M. Ali Panjwani, Esq.**<br> **Pryor Cashman LLP**<br> **7 Times Square**<br> **New York, New York 10036**<br> **Telephone: (212) 421-4100**<br> **Facsimile: (212) 326-0806** |

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Approximate date of commencement of proposed sale to the public: As soon as practicable after the effective date of this Registration Statement.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. ⌧

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ◻

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ◻

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ◻

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933.

Emerging growth company ⌧

If an emerging growth company that prepares its financial statements in accordance with US GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 7(a)(2)(B) of the Securities Act. ◻

† The term "new or revised financial accounting standard" refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

**The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall hereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Commission, acting pursuant to such Section 8(a), may determine.**

**The information in this prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.**

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| | |
|:---|:---|
| **PRELIMINARY PROSPECTUS** | SUBJECT TO COMPLETION, DATED JANUARY 19, 2023  |

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**SOLARJUICE CO., LTD.**

 **2,500,000 Ordinary Shares**

This is the initial public offering of ordinary shares of SolarJuice Co., Ltd. ("SolarJuice" or the "Company"), a Cayman Islands exempted company with limited liability. We are offering ordinary shares in this offering on a firm commitment basis. We expect the estimated initial public offering price to be between $7.00 and $9.00 per share.

Prior to this offering, there was no public market for our ordinary shares. We have applied to list our ordinary shares on the Nasdaq Capital Market under the symbol "SJA." There is no assurance that this application will be approved, and, if our application is not approved, we will not complete this offering.

Linton Crystal Technologies Corp. has indicated a non-binding interest that it may purchase an aggregate of up to $5,100,000 worth of ordinary shares in this offering at the initial public offering price. Assuming an initial offering prices of $8.00 per share, which is the midpoint of the estimated offering price range, the number of ordinary shares which may be purchased by this potential purchaser would be up to 637,500 ordinary shares. However, because this indication of interest is not a binding agreements or commitments to purchase, the underwriters could determine to sell more, fewer or no ordinary shares to any of this potential purchasers, and this potential purchaser could determine to purchase more, fewer or no ordinary shares in this offering. The underwriters will receive the same underwriting discounts and commissions on any ordinary shares purchased by this party as they will on any other ordinary shares sold to the public in this offering. See "[Underwriting](#a21)."

We are, and, upon completion of this offering, we will continue to be a "controlled company," as defined under the Nasdaq Stock Market rules, because SPI Energy Co., Ltd. ("SPI") holds, and will continue to own, more than 50% of our voting power. For as long as we remain a controlled company under that definition, we are permitted to elect to rely, and may rely, on certain exemptions from certain Nasdaq corporate governance requirements.

**We are an "emerging growth company" under applicable US federal securities laws and may elect to comply with reduced public company reporting requirements. See "[Prospectus Summary](#a1) — Emerging Growth Company Status" for additional information.**

**Investing in our ordinary shares involves a high degree of risk. You should read carefully the discussion of material risks of investing in our ordinary shares in "[Risk Factors](#a4)" beginning on page 13 of this prospectus before investing in our ordinary shares that are the subject of this offering.**

**Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense.**

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| | | |
|:---|:---|:---|
|  | **Per Share**<br> **($)** | **Total<br> ($)** |
| Initial public offering price | $8.00 | $20000000 |
| Underwriting discounts and commissions(1) | $0.56 | $1400000 |
| Proceeds, before expenses, to us | $7.44 | $18600000 |

---

(1) Does not include an expense reimbursement of up to $200,000, payable to Maxim Group, LLC, the representative of the underwriters, for the reimbursement of certain expenses of the underwriters. Maxim Group, LLC will receive compensation, in addition to the underwriting discounts and commissions and non-accountable expense allowance, as set forth in the section entitled "[Underwriting](#a21)" beginning on page 115, upon the closing of this offering, including warrants, or, the "representative's warrants," in an amount equal to 5% of the aggregate number of ordinary shares sold by us in this offering, including any shares issued pursuant to the exercise of the underwriters' over-allotment option. For a description of other terms of the representative's warrants and a description of the other compensation to be received by the underwriters, see "[Underwriting](#a21)".

We have granted the underwriters an option to purchase up to an additional 375,000 ordinary shares (equal to 15% of the ordinary shares sold in this offering) from us at the initial public offering price, less underwriting discounts and commissions, to cover over-allotments, if any. The underwriters can exercise this option at any time within 45 days after the date of this prospectus. If the underwriters exercise the option in full, the total underwriting discounts and commissions payable will be $1,610,000, and the total gross proceeds to us, before underwriting discounts and commissions and expenses, will be $23,000,000. If we complete this offering, net proceeds will be delivered to us on the closing date. See "[Use of Proceeds](#a6)" beginning on page 43.

**The underwriters expect to deliver the ordinary shares to purchasers in this offering on or about __________ ____, 2023.** 

**Maxim Group LLC**

**The date of this prospectus is , 2023.** 

**TABLE OF CONTENTS**

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| | |
|:---|:---|
|  | **Page** |
| [PROSPECTUS SUMMARY](#a1) | 1 |
| [RISK FACTORS](#a4) | 13 |
| [SPECIAL NOTE ON FORWARD-LOOKING STATEMENTS](#a5) | 42 |
| [USE OF PROCEEDS](#a6) | 43 |
| [DIVIDEND POLICY](#a7) | 43 |
| [CAPITALIZATION](#a8) | 44 |
| [DILUTION](#a9) | 45 |
| [EXCHANGE RATE INFORMATION](#a10) | 46 |
| [ENFORCEABILITY OF CIVIL LIABILITIES](#a11) | 46 |
| [SELECTED CONSOLIDATED FINANCIAL INFORMATION](#a12) | 48 |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#a13) | 50 |
| [BUSINESS](#a14) | 68 |
| [MANAGEMENT](#a15) | 89 |
| [RELATED PARTY TRANSACTIONS](#a16) | 97 |
| [PRINCIPAL SHAREHOLDERS](#a17) | 98 |
| [DESCRIPTION OF SHARES AND GOVERNING DOCUMENTS](#a18) | 100 |
| [SHARES ELIGIBLE FOR FUTURE SALE](#a19) | 108 |
| [TAXATION](#a20) | 109 |
| [UNDERWRITING](#a21) | 115 |
| [LEGAL MATTERS](#a22) | 124 |
| [EXPERTS](#a23) | 124 |
| [WHERE YOU CAN FIND ADDITIONAL INFORMATION](#a24) | 124 |
| [EXPENSES RELATING TO THIS OFFERING](#a25) | 125 |
| [INDEX TO CONSOLIDATED FINANCIAL STATEMENTS](#indexfs) | F-1 |

---

i

**You should rely only on the information contained in this prospectus, any amendment or supplement to this prospectus, or any free writing prospectus prepared by us or on our behalf. Neither we nor the underwriters have authorized anyone to provide you with different information. If anyone provides you with different or inconsistent information, you should not rely on it. Neither we nor the underwriters are making an offer of these securities, or soliciting any offers to buy these securities, in any jurisdiction where the offer or solicitation is not permitted. You should not assume that the information contained in this prospectus is accurate as of any date other than the date on the front of this prospectus, regardless of the time of delivery of this prospectus or of any sale of our ordinary shares.** 

**Neither we, nor the underwriters, have done anything that would permit this offering or possession or distribution of this prospectus in any jurisdiction where action for that purpose is required, other than the United States. Persons outside the United States who come into possession of this prospectus must inform themselves about, and observe any restrictions relating to, the offering of our ordinary shares set forth in, and the possession and distribution of, this prospectus outside of the United States.**

**We are incorporated under the laws of the Cayman Islands as an exempted company with limited liability, and a majority of our outstanding securities are owned by non-US residents. Under the rules of the US Securities and Exchange Commission, or the "SEC," we currently qualify for treatment as a "foreign private issuer." As a foreign private issuer, we will not be required to file periodic reports and financial statements with the SEC as frequently or promptly as domestic registrants whose securities are registered under the Securities Exchange Act of 1934, as amended, or the Exchange Act.**

**Until and including __________ [\*], 2023 (25 days after the date of this prospectus), all dealers that buy, sell or trade our ordinary shares, whether or not participating in this offering, may be required to deliver a prospectus. This delivery requirement is in addition to the obligation of dealers to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.**

We obtained statistical data, market data and other industry data and forecasts used throughout this prospectus from market research, publicly available information and industry publications. While we believe that the statistical data, industry data and forecasts and market research are reliable, we have not independently verified the data, and we do not make any representation as to the accuracy of the information.

**CONVENTIONS WHICH APPLY TO THIS PROSPECTUS**

Except where the context requires otherwise and for purposes of this prospectus only:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· "A$," "AUD," or "Australian dollar"
 refers to the legal currency of Australia.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· "$", "US$" or "US dollars" refers
 to the legal currency of the United States.

· "SolarJuice," "we," "us," "our company," "the
 company," "the Group" and "our" refers to the issuer, SolarJuice Co., Ltd., a Cayman Islands company
 limited by shares and its subsidiaries and, in the context of describing our operations and consolidated financial data.

· "SJ Australia" means Solar Juice Pty Ltd, an Australian company, 80% owned by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· "SJ America" means SolarJuice American, Inc., a Delaware
 corporation, d/b/a Roofs 4 America and d/b/a Solar4America all of which are wholly owned by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· "SJ Technology" means Solar4America Technology, Inc.
 formerly known as SolarJuice Technology Inc., a Delaware corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· "US GAAP" refers to the Generally Accepted Accounting Principles
 in the United States.

This prospectus contains translations of certain AUD amounts into US dollars at specified rates solely for the convenience of the reader. All translations from AUD to US dollars were made at the noon buying rate as set forth in the H.10 statistical release of the US Federal Reserve Board. Unless otherwise stated, the translation of AUD into US dollars has been made at the exchange rate on December 30, 2021 which was AUD 1.3774 to US$1.00. We make no representation that the AUD or US dollar amounts referred to in this prospectus could have been converted into US dollars or AUD, as the case may be, at any particular rate or at all. See "[Risk Factors](#a4)—Risks Relating to Doing Business in China—Fluctuations in the exchange rates may result in foreign currency exchange losses and have a material adverse effect on your investment."

ii

**PROSPECTUS SUMMARY**

 

*The following summary does not contain all of the information you should consider before investing in our ordinary shares. You should read the following summary together with the entire prospectus carefully, including the "[Risk Factors](#a4)" section beginning on page 13 and the financial statements and the accompanying notes to those financial statements beginning on page F-1 before making an investment decision. Unless otherwise indicated, all information in this prospectus assumes no exercise of the underwriters' over-allotment option.*

**Our Business**

SolarJuice provides solar photovoltaic (PV) based energy solutions for residential and small commercial building markets in Australia and the United States. Through three main business units, SJ Australia, SJ America and SJ Technology, we wholesale and distribute PV modules, solar energy inverters, batteries and storage devices, other solar "balance of system" ("BOS") components, and accessories to commercial customers located in every state and territory of Australia; we are a roofing contractor and we resell and install solar energy systems to residential and commercial customers in five states in the US and we design, manufacture, and sell PV modules and related products to customers. SJ Australia is a leading wholesaler of PV systems and components in Australia. SJ America installs solar energy systems, energy storage solutions, and roofing products in California, Colorado, Florida, Nevada, and Texas. SJ Technology produces and sells solar PV modules in the US.

**SJ Australia – Wholesale Distribution**

Our 80%-owned Australian subsidiary, Solar Juice Pty Ltd, or "SJ Australia," distributes the most popular brands of solar photovoltaic ("PV") modules, solar energy inverters, batteries and storage devices, other solar BOS components, and accessories to commercial customers located in every state and territory of Australia. SJ Australia also designs and sells its own private brand of PV products under the trade name "Opal," including Opal solar modules and "Opal Storage" batteries. Established in September 2009 by founders Rami Fedda and Andrew Burgess, who combined their industry knowledge, supplier networks and sales management skills, SJ Australia has grown into one of Australia's leading distributors of PV and solar-related products.

Most of SJ Australia's customers are small installers for rooftop solar energy systems or energy storage units for residential and small commercial buildings. The residential PV installation market in Australia is highly fragmented, comprised of over 7,000 installers with fewer than five employees. To date over 5,000 installers have opened accounts with SJ Australia, and we have over 900 active accounts with installers that have made purchases over the last three months. SJ Australia has established itself as a PV industry leader and hub for installers, so that new entrants to the Australian market come to SJ Australia to support their businesses across the entire country. SJ Australia has embarked upon a significant geographic expansion initiative to New Zealand and other Pacific island nations.

**SJ America – Roofing and Solar Modules Installation**

Our U.S. residential roofing and solar installation business, operated by SolarJuice American Inc., or, SJ America, d/b/a Roofs 4 America, performs residential installations and commercial projects for some of the nation's largest home builders and real estate developers. SJ America holds contractor licenses, as required, in the five states in which it operates, California, Nevada, Texas, Colorado and Florida. For solar and re-roofing projects, we manage the entire process from surveying, design, permitting, installation, final inspection, and connection to the power grid; we may choose to outsource part of this process to third party service providers. With hundreds of installation employees, SJ America is one of only a few residential solar companies with extensive roofing experience.

SJ America entered the installation business in February 2021, upon acquiring certain assets of Petersen-Dean, Inc. and affiliated companies (together, "Petersen-Dean" or "PDI") in bankruptcy. SJ America had no operations in the United States before acquiring the PDI assets. Petersen-Dean was founded in 1984 and specialized in installing tile or shingle roofs for single family, multi-family or small commercial buildings. PDI entered the rooftop solar panel installation market in 2009 and became a leading roofing products and solar panel installation company in California, partnering with some of the nation's largest builders and developers for their roofing products and solar panel installations. PDI filed for protection under Chapter 11 of the US Bankruptcy Code in June 2020, after the onset of the COVID-19 pandemic, and during the bankruptcy process, SJ America purchased certain PDI assets relating to roofing products and solar panel installation, including vehicles and equipment, inventory, work-in-progress contracts, and trademarks and trade names, service marks, and books and records. We also hired, subject to a 90-day observation period, 321 former PDI employees experienced in the roofing and solar energy system installation business, and as of August 19, 2022, approximately 148 former PDI employees work for the Company. SJ America has subsequently built a new consumer solar team, with a focus on selling to home owners and owners/lessees of small commercial buildings. Our new consumer solar team is developing capabilities to vertically integrate across system design and engineering, procurement, permitting, construction, grid connection, warranty, system monitoring and maintenance.

In June 2021, we began offering to consumers free cloud-based monitoring and maintenance software services to manage the roofing product and solar panel systems that we install, which can increase customer engagement and our overall online presence.

With the California mandate for pre-installation of solar energy systems on new homes, our roofing and solar businesses with our homebuilder clients sometimes overlap. SJ America has approximately 100 active roof installation commercial clients, of which 18 clients in California engage us for solar pre-installations. Our consumer re-roofing services include design, permitting, procurement, and installation services, similar to those provided to solar consumers.

In July 2022, SolarJuice made a decision that its SJ America subsidiary would pause its roofing and solar energy system installation business in the states of Florida, Texas, Nevada and Colorado, due to insufficient business volume and profitability in those four states. The Company continually assesses the market demand, the scale and geographic scope of its business lines, especially the roofing and solar energy system installation business, which includes the installation of solar panels, batteries and EV chargers, for profitability, and we plan that we will continue to do so in the future.

**SJ Technology - Manufacturing**

SJ Technology produces "Made-in-America" solar modules under its Solar4America brand.

SJ Technology opened our first US solar module assembly factory in January 2022 in McClellan Park, California, which commenced pilot production in the second quarter of 2022 and began delivering Solar4America brand modules to customers weekly during the third quarter of 2022. We expect to achieve installed capacity of 650MW per year by the end of 2022, assuming the installed production line is running at full shift. SJ Technology intends to sell most of our American-made solar modules under our own "Solar4America" brand, to distributors, project developers and system integrators, and a small portion of solar modules on an OEM basis. We subleased existing solar module manufacturing facilities with a total floor area of 139,100 square feet located in McClellan Park, acquired certain pieces of solar module assembly equipment from Sunergy California LLC, and additional solar module assembly equipment from YingKou JinChen Machinery Co Ltd and Wuxi Autowell Supply Chain Management Co Ltd. to expand our capacity at the McClellan Park facility. In August 2022, we subleased additional space with a total floor area of 56,000 square feet, adjacent to SJ Technology's current solar module manufacturing facility at McClellan Park. The expansion will enable us to meet the strong demand for its American-made solar modules. We expect that our production capacity will be further increased to 2.4 GW per year by the end of 2023 as the result acquiring and putting into operation additional solar module assembly equipment and coupled with the utilization of the additional 56,000 square foot facility in McClellan Park, California and well as opening a new facility on the East Coast of the United States.

 **Inflation Reduction Act of 2022 - New and Expanded Production and Tax Credits for Manufacturers and Projects to Support Clean Energy**

On August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022 (the "IRA"). The IRA contains provisions which we expect will have a significant impact on the development and financing of clean energy projects in the United States over the next ten years. The IRA includes a number of key changes relevant to clean energy in the United States, among them the extension of the Investment Tax Credit and Production Tax Credit and the addition of expanded tax credits for other technologies and for manufacturing of clean energy equipment as well as terms allowing parties to more easily monetize the tax credits. The IRA also includes some targeted incentives intended to encourage development in low-income communities and the use of domestically produced materials and compliance with certain prevailing wage requirements. The IRA contains a two-tiered credit-amount structure for many applicable tax credits. Specifically, many of the credits have a lower base credit amount that can be increased up to five times if the taxpayer can satisfy applicable prevailing wage or apprenticeship requirements. In general, under the prevailing wage requirements, the IRA requires all laborers, mechanics and workers to be paid the prevailing wage during project construction (and, during the credit term, for repairs and alterations). Separately and subject to certain exceptions, to meet the apprenticeship requirements, qualified apprentices have to perform an applicable percentage of total labor hours for project construction. Further, the IRA establishes certain options to cure the failure to meet either the prevailing wage or apprenticeship requirements.

We believe that two areas of the IRA will have direct significant benefits for us. First, the impact of the new Section 45X of the IRA will be significant to us, especially our SJ Technology business. Under Section 45X, production credits will be available for each eligible solar component that is produced domestically and sold to an unrelated party. Section 45X credits are based on the type of equipment or material manufactured, how much equipment or material is produced, and certain other criteria. We anticipate that Section 45X will spur United States solar manufacturing to a degree that may not yet be fully appreciated. According to Section 45X of the IRA, the Advanced Manufacturing Production Credit (AMPTC) is available for the production of eligible components which includes solar modules, solar wafers, solar cells produced in the United States and sold after December 31, 2022. The amount of the AMPTC for solar modules are mandated to be $0.07 per module capacity in Wdc. SJ Technology produces "Made-in-America" solar modules under its Solar4America brand. The Section 45X production credit encourages innovation and efficiency because, for example, with respect to certain solar components, credits are tied to the productivity of a solar panel rather than its cost, encouraging companies to manufacture higher-efficiency panels rather than raise prices to increase credits.

Secondly, the Residential Clean Energy Credit under the IRA allows residential customers to subtract 30 percent of solar costs off their federal taxes as a tax credit through 2032. If residential customers install solar energy equipment in their residence any time from 2022 through the end of 2032, they are entitled to a nonrefundable tax credit off their federal income taxes, equal to 30 percent of eligible expenses. There's no dollar limit on those expenses. We believe this increase to a 30% tax credit under the IRA will significantly enhance SJ America's U.S. residential roofing and solar installation business . According to the Department of Energy, the new IRA's language covers the same expenses to be eligible for this new solar tax credit, as those that were declining under the expiring old law, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Solar photovoltaic (PV) panels.

· PV cells used to power an attic fan (but not the fan itself).

· Contractor labor for onsite preparation, assembly, or original installation.

· Permitting fees, inspection costs, and developer fees.

· All equipment needed to get the solar system running, including wiring, inverters, and mounting equipment.

· Storage batteries. (You can claim the tax credit for these even if you buy and install them a year or more after you install
 the solar system.)

· Sales taxes on eligible expenses.

We believe having our own branded products provides greater opportunities to differentiate us in a competitive market. especially when certain products are in short supply in the market, such as current market conditions for made-in-America solar modules, which we expect will accelerate our brand and product penetration into the U.S. domestic market. We do not expect to manufacture significant amounts of panels for our installation business.

Our solar modules utilize advanced solar technologies, such as the Passive Emitter and Rear Contact or "PERC" technology and full cell technology. We expect that our high-quality manufacturing capabilities will enable us to produce solar modules meeting the industry's highest performance standards, and all of our American-made solar modules sold in North America are UL certified.

**Market Opportunity**

***Wholesale Distribution***

Australia is the world's leading solar country in cumulative solar installation per capita, and an estimated $3.2 billion of solar panels will be installed there in 2022, according to a November 2021 IBISWorld report. The Clean Energy Council renewable energy association for Australia reported that in 2020, Australia added over 378,000 roof-top solar energy systems, totaling over 3GW in capacity, as well as nearly 24,000 storage units totaling 238 MW. Mordor Intelligence estimates that approximately one-fifth of the country's residential buildings have roof-top solar and expects this roof-top solar market to grow at a CAGR of 10% between 2020 and 2025.

We believe the following factors will be favorable to our planned growth of our solar power business:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Declining cost of residential solar energy systems and energy storage, which make the technology
 more competitive with local electricity rates

· Consumer demand for energy storage systems to increase energy resiliency and provide backup power
 during natural disasters

· Consumer demand for environmentally friendly, renewable energy solutions

· Government support and incentives for renewable energy solutions

***Roofing***

The residential roofing business is cyclical, as is the overall home building industry. The single-family new construction market has recently been on a largely consistent upward trend, outside of a short downturn at the early stages of the COVID pandemic.

The US Department of Housing and Urban Development ("HUD") reported in January 2022 that total US housing starts for 2021 were approximately 1.60 million, which was a 15.6% increase over the 1.38 million comparable figure for 2020. Single family housing starts comprised 1.12 million of the 1.60 million total according to HUD, which was an increase of 13.4% over the comparable 2020 figure. The US Census Bureau further reported in June 2022 that US housing starts for May 2022 were reported at a seasonally adjusted annual rate of 1.55 million, and the same report disclosed that seasonally adjusted annual US housing completions for May 2022 were 1.47 million homes, a 9.3% increase over the comparable figure for May 2021.

***Solar Module Installation***

The Q1 2022 Solar Energy Industries Association ("SEIA") website discloses that over 121 Gigawatts ("GW") of solar power capacity has been installed in the US in utility, residential and commercial applications. The overall US solar power market installed 23.6 GW of capacity in 2021, which was a record figure despite sustained obstacles due to supply chain constraints and the COVID virus.

A March 2021 SEIA report states that the US residential solar market is expected to enjoy continued robust growth, with the share of homes having solar power systems predicted to increase from 4% in 2021 to over 13% in 2030. The SEIA also disclosed that the residential solar power market grew a significant 30% to 4.2GW installed in 2021 versus the 2020 figure, and SEIA further estimates that annual residential solar energy installation volume will increase from 3.2GW in 2020 to 4.7GW in 2023, which represents a compound annual growth rate of approximately 14%. Several of the states in SJ America's current focal region of geographic footprint, California, Texas and Florida, has been and is expected to continue to be among the most active US residential solar power markets.

A March 7, 2022 report by the US Energy Information Administration ("EIA") highlights the increasing overall contribution of solar power to planned new US electric generation capacity. The EIA reports that 41GW of new utility-scale solar and battery storage projects are planned over the next two years, and approximately 51GW of the total 85GW of new power plant electric generating capacity, or 60%, is expected to be solar. SJ America is poised to exploit this utility solar expansion opportunity, since significant new utility solar capacity is slated to occur in California. A separate EIA report from November 2021 discloses that although solar power only accounted for about 3% of 2020 electricity generation, the comparable figure is expected to increase to 20% by 2050, which will include both utility scale and smaller scale solar installations.

The official website of the White House disclosed on June 6, 2022 that President Biden has authorized the use of the Defense Production Act ("DPA") to accelerate the domestic production of solar modules and other clean energy technologies. The White House also stated its intention to facilitate a two-year bridge period, during which domestic solar manufacturers will be allowed to source solar modules and cell components from countries in Southeast Asia, without certain import duties, to ensure that domestic solar producers have adequate supplies to increase scale. President Biden is also authorizing the Department of Energy ("DOE") to rapidly expand domestic manufacturing of solar modules and other critical clean energy technologies under the DPA. The White House intends to employ the power of federal government procurement means to stimulate incremental domestic solar manufacturing capacity, and accelerate the growth of "Made-in-America" clean energy with the goal of over 100 Gigawatts (GW) in the next decade.

The White House also reported in the same June 2022 release that the United States is on track to triple domestic solar manufacturing capacity by 2024. The White House reports that the current 7.5 GW of solar manufacturing capacity is projected to increase to 22.5 GW by the end of President Biden's first term in 2025, constituting 15GW of incremental capacity and a trebling of domestic solar capacity in under five years. The release notes that such an increase would enable over 3.3 million new homes to annually convert to solar energy. See June 6, 2022 FACT SHEET: President Biden Takes Bold Executive Action to Spur Domestic Clean Energy Manufacturing \|www.whitehouse.gov.

In July 2022, SolarJuice made a decision that its SJ America subsidiary would pause its roofing and solar energy system installation business in the states of Florida, Texas, Nevada and Colorado, due to insufficient business volume and profitability in those four states. The Company continually assesses the market demand, the scale and geographic scope of its business lines, especially the roofing and solar energy system installation business, which includes the installation of solar panels, batteries and EV chargers, for profitability, and we plan that we will continue to do so in the future.

***Manufacturing***

The general domestic market for solar energy grew at an estimated annual rate of 15% from 2017-2022 according to a September 2021 IBISWorld report, and is estimated to be $12.0 billion in 2022. The domestic solar energy power market has been increasing as business and individual consumers both demand more energy in general and increasingly seek green energy alternatives such as solar power. A January 2022 IBISWorld analysis of domestic solar industry manufacturing and market size reports that an estimated $3.8 billion worth of solar panels will be manufactured in the U.S. in 2022, and the domestic solar panel output increased by 35.9% over the preceding five-year period from 2017-2022. Growth in the domestic solar industry is expected to continue its strong growth over the next five years. See Solar Power in the US - Market Size \| IBISWorld (September 2021 IBIS report)

We believe that SJ Technology is poised to exploit this growth trend in domestic solar energy power demand with our newly expanded facility in McClellan Park, California as we intend to build annual solar module production capacity of 650MW by the end of 2022. We expect that our production capacity will be further increased to 2.4 GW per year by the end of 2023 as the result acquiring and putting into operation additional solar module assembly equipment and coupled with the utilization of the additional 56,000 square feet of floor space at our McClellan Park, California facility and well as bringing on a new facility on the East Coast of the United States. Our U.S.-based manufacturing capabilities for solar modules provides tremendous scale advantages to meet the strong demand for its American-made solar modules. We further believe that the "Made-in-America" solar modules that we intend to produce at the McClellan facility and possibly elsewhere in the U.S. will be particularly desired by commercial and residential consumers in the U.S. as both a green energy and domestically-produced energy solution.

See *https://www.ibisworld.com/industry-statistics/market-size/solar-panel-manufacturing-united-states*/ (January 2022 IBIS report)

**Our Competitive Strengths**

We believe that the following competitive strengths significantly contribute to our success and differentiate us from our competitors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We can offer end-to-end clean energy solutions for residential and
 small commercial clients. We believe that we are well positioned to combine the product sourcing and design capacity of SJ Australia
 with the commencement of "Made-in-America" solar module manufacturing and the installation expertise of SJ America, to
 offer the best solutions to our residential and small commercial customers. Because our Australian team knows the products and manufacturers
 well, and our SJ America team knows the roofing and solar energy system installation business and the end users of these products,
 we can review the whole value chain for opportunities to lower cost and improve performance for our customers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· SJ Australia has a well-established history and the scale to be viewed
 as a preferred supplier for roof top installers in Australia. We also believe that our nationwide customer base and educational programs
 make SJ Australia a preferred distributor to introduce new products into the highly fragmented Australia market. For example, we
 have become a large distributor for Tesla's Powerwall energy storage units, selling 2,447 units with total 37 MW capacity in
 Australia in 2020. SJ Australia sold a total of 43MWh batteries in 2021, which capacity is equivalent to 12.4% of all residential
 storage capacity installed in Australia in 2021 as noted above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Among rooftop PV installers in the US, our SJ America subsidiary has
 extensive knowledge in roofing and solar installation, enabling us to minimize the risks of defective designs or improper installations
 and to increase our addressable market and margin opportunities. Our customers avoid having to determine whether the roofer or solar
 installer is responsible for a faulty installation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We have introduced private label battery and other PV products to residential
 and commercial customers. With our existing distribution and installation sales networks, we can sell our private label products
 at minimum extra sales and marketing costs. Approximately 20% of our B2C solar clients also express interests in batteries; with
 OEM batteries in short supply, we have been able to accelerate the introduction of our Opal Storage battery, despite having just
 recently launched the product. We have also introduced our commercial battery products to some of our B2B clients looking at backup
 power options for hotels, hospitals, clinics and laboratories.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our large and growing U.S.-based manufacturing capabilities for solar
 modules provides tremendous scale advantages to
 meet the strong demand for its American-made solar modules. We manufacture our solar modules at our
 facility in California with additional expansion plan in 2023 in east coast of US. Our California
 module production capacity is expected to 2.4GW per year by the end of 2023, and coupled with new
 sites that we expect to procure on the east coast will further increase our module production capacity
 to 5.0GW per year by 2024.We believe the location of our facility provides us with a cost of production
 advantage versus our competitors who produce solar modules in higher cost regions. In addition, we
 believe our state-of-the art fully automated technology and manufacturing processes, which requires
 relatively minimal labor, enable us to improve our manufacturing yields, cost, quality and product
 ramp predictability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our ability
 to generate net sales and profits is subject, in the near term, to variability based on the availability and size of government
 subsidies and economic incentives, such as quotas, renewable portfolio standards, and tendering systems. In addition to these
 support programs, financial incentives for PV solar energy may include tax and production incentives. In the United States,
 tax incentive programs exist at both the federal and state levels and can take the form of investment and production tax credits,
 accelerated depreciation, and sales and property tax exemptions and abatements. At the federal level, investment tax credits for
 business and residential solar energy systems have gone through several cycles of enactment and expiration since the 1980s. The current
 federal energy investment tax credit ("ITC") for both residential and commercial solar installations requires projects
 to have commenced construction by a certain date, which may be achieved by certain qualifying procurement activities. In 2020, the
 US Congress extended the 26% ITC through 2022 as part of its COVID-19 relief efforts. Such credit is currently scheduled to step
 down to 22% for projects that commence construction in 2023 and 10% for projects that commence construction thereafter. The current
 federal ITCs for residential and commercial solar projects have specific time limits regarding the commencement of construction and
 procurement activities. The US Congress passed an extension of the ITC in December 2020 providing for a 26% ITC for 2020-2022 solar
 installations and 22% for 2023 solar installations according to the energy.gov site. The current ITC is set to expire in 2024. Congressional
 legislation was introduced in 2021 to incentivize domestic solar manufacturing and the transition to clean energy by providing tax
 credits to domestic solar manufacturers and project developers, including proposed provisions which would extend the ITC at up to
 40% for a decade for solar projects meeting certain content and labor requirements. At this time, it is unclear whether and to what
 extent such measures will be enacted into law. The ITC has been an important economic driver of solar installations and qualifying
 procurement activities in the United States, and its extension is expected to contribute to greater medium-term demand. The positive
 impact of the ITC depends to a large degree on the availability of tax equity for project financing, and any significant reduction
 in the availability of tax equity in the future could make it more difficult to develop and construct projects requiring financing. The majority of
 states in the United States have also enacted legislation adopting Renewable Portfolio Standard ("RPS") mechanisms. Under
 an RPS, regulated utilities and other load serving entities are required to procure a specified percentage of their total retail
 electricity sales to end-user customers from eligible renewable resources, such as solar energy generation facilities, by a specified
 date. For example, California's RPS program, which is one of the most significant in the United States in terms of the volume
 of renewable electricity required to meet its RPS mandate, currently requires utilities and other obligated load serving entities
 to procure 60% of their total retail electricity demand from eligible renewable resources by 2030 and 100% of such electricity demand
 from carbon-free resources by 2045. Some programs may further require that a specified portion of the total percentage of renewable
 energy must come from solar generation facilities or other technologies. RPS mechanisms and other legislation vary significantly
 from state to state, particularly with respect to the percentage of renewable energy required to achieve the state's RPS, the
 definition of eligible renewable energy resources, and the extent to which renewable energy credits qualify for RPS compliance.

**Going Concern**

The Company has incurred significant losses and needs to raise additional funds to sustain its operations. As a result of these conditions, our auditor's opinion on our December 31, 2021 financial statements include an explanatory paragraph in respect to there being substantial doubt about our ability to continue as a going concern. As disclosed in Note 3 Going concern to the Company's unaudited condensed consolidated interim financial statements, the Company has incurred a net loss of $0.6 million during the six months ended June 30, 2022. The cash flow used in the operation activities for the six months ended June 30, 2022 was $4.3 million, the accumulated deficit as of June 30, 2022 was $31.8 million and working capital deficit as of June 30, 2022 was $1.1 million. These conditions raise substantial doubt about the Company's ability to continue as a going concern. While management believes that its plans will be adequate to allow the Company to meet its liquidity and cash flow requirements within one year after September 16, 2022, the date that the condensed consolidated interim financial statements were issued, there is no assurance that the plans will be successfully implemented. If the Company fails to achieve these goals, the Company may need additional financing to repay debt obligations and execute its business plan, and the Company may not be able to obtain the necessary additional capital on a timely basis, on acceptable terms, or at all. The inclusion of a going concern explanatory paragraph may negatively impact the trading price of our ordinary shares, have an adverse impact on our relationship with third parties with whom we do business, including our customers, vendors and employees, and could make it challenging and difficult for us to raise additional debt or equity financing to the extent needed, all of which could have a material adverse impact on our business, results of operations, financial condition and prospects.

The company expects to begin generating operating cash flow from its solar module assembly facility in California in Q4 2022, which operating cash flow we expect will further increase throughout 2023 and beyond as our McClellan Park facility progresses toward full capacity and its goal of producing an aggregate number of solar modules capable of generating 1.1 GW of electricity. We further plan to replicate the McClellan Park operation at one or more other locations in the United States over the next few years. In the short term can access capital from our parent company SPI Energy, and from certain of our officers and directors, and have done so in the recent past to fund what we believe is a compelling opportunity to be a pioneer and leader in the "Made in America" solar module industry. The Company has also had discussions with third parties regarding both debt financing and equity capital financing for the Company to help fund our solar module manufacturing business and other operations, especially during the current period in which we are scaling up solar module production toward the stated 1.1GW goal.

**Foreign Private Issuer Status**

We are a foreign private issuer within the meaning of the rules under the Securities Exchange Act of 1934, as amended (which we refer to as the Exchange Act). As such, we are exempt from certain provisions applicable to United States domestic public companies. For example:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· we are not required to provide as many Exchange Act reports, or as
 frequently, as a domestic public company;

· for interim reporting, we are permitted to comply solely with our home
 country requirements, which are less rigorous than the rules that apply to domestic public companies;

· we are not required to provide the same level of disclosure on certain
 issues, such as executive compensation;

· we are exempt from provisions of Regulation FD aimed at preventing
 issuers from making selective disclosures of material information;

· we are not required to comply with the sections of the Exchange Act
 regulating the solicitation of proxies, consents or authorizations in respect of a security registered under the Exchange Act; and

· we are not required to comply with Section 16 of the Exchange Act requiring
 insiders to file public reports of their share ownership and trading activities and establishing insider liability for profits realized
 from any "short-swing" trading transaction.

**Emerging Growth Company Status**

We are an "emerging growth company," as defined in the Jumpstart Our Business Startups Act (or JOBS Act), and we are eligible to take advantage of certain exemptions from various reporting and financial disclosure requirements that are applicable to other public companies, that are not emerging growth companies, including, but not limited to, (1) presenting only two years of audited financial statements and only two years of related management's discussion and analysis of financial condition and results of operations in this prospectus, (2) not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act"), (3) reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and (4) exemptions from the requirements of holding a non-binding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. We intend to take advantage of these exemptions, and investors might find investing in our ordinary shares less attractive.

In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended (which we refer to as the Securities Act), for complying with new or revised accounting standards. As a result, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies, and we intend to take advantage of this extended transaction period.

We could remain an emerging growth company for up to five years, or until the earliest of (1) the last day of the first fiscal year in which our annual gross revenues exceed $1.07 billion, (2) the date that we become a "large accelerated filer" as defined in Rule 12b-2 under the Exchange Act, which would occur if the market value of our ordinary shares that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter and we have been publicly reporting for at least 12 months, or (3) the date on which we have issued more than $1 billion in non-convertible debt during the preceding three-year period.

**Our Corporate Structure**

SolarJuice was incorporated in the Cayman Islands, in February 2017, by SPI Energy Co., Ltd. ("SPI") to hold 80% of Solar Juice Pty Ltd. ("SJ Australia"). The other 20% of SJ Australia is beneficially owned by SJ Australia's founders Rami Fedda (7%) and Andrew Burgess (7%), and by Allied Energy Holding Pte Ltd. (6%), a Singapore based privately-owned company which was an original investor to SJ Australia when it was founded in 2009. SPI is a Cayman Island company that is listed on the Nasdaq Global Select Market, trading under the symbol "SPI" since January 2016. SJ Australia was incorporated in September 2009 to be a wholesaler of solar components in Australia. In May 2015, SPI China (HK) Ltd., a company then related to SPI, acquired 80% of SJ Australia. In August 2018, SPI sold SPI China (HK) Ltd., and, as part of this transaction, SPI China (HK) Ltd. transferred its 80% interest in SJ Australia to SPI. SolarJuice American Inc. ("SJ America") was incorporated in July 2019, and SolarJuice Technology Inc., now known as Solar4America Technology, Inc. ("SJ Technology"), Solar4America Inc., Roofs4America Inc., SolarJuice Distribution Inc. and SolarJuice Franchise Inc. were incorporated in 2021 to hold, respectively, our solar module, roofing, battery, e-commerce, and other technology related operations. SolarJuice (HK) Ltd has had very limited activities in the last two fiscal years.

![](image_048.jpg)

**Corporate Information**

Our global headquarters is located at 1/10-12 Forsyth Close, Wetherill Park, Sydney, NSW, Australia. Our principal executive office in the US is located at 4741 Urbani Avenue, McClellan Park, California 95652. Our telephone number at this address is 888 575-1940. Our registered office in the Cayman Islands is located at the offices of Vistra (Cayman) Limited, P.O. Box 31119 Grand Pavilion, Hibiscus Way, 802 West Bay Road, Grand Cayman, KY1-1205 Cayman Islands.

Our website is http://www.solar4america.com. Information contained on, or that can be accessed through, our websites is not part of, and shall not be incorporated by reference into, this prospectus. Our agent for service of process in the United States is Randolph Conone, 4741 Urbani Avenue, McClellan Park, California 95652.

**Our Challenges and Risks**

Investing in our ordinary shares involves risks that relate to, among other things, our business, our recent asset purchase and integration in the US, market factors, governmental policies and regulation, competition, the pace of technological innovations, our ability to raise financing and foreign exchange fluctuations, and the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Risks in re-establishing a viable business from assets
 purchased in bankruptcy

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Risks in operating both an Australian solar components
 wholesale operation and a US roofing and PV installation business

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Risks related to long-term viability of a PV business,
 including regulatory risks, reductions in or loss of government subsidies or incentives, and competition

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Risks related to our debt financings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Risks of PV/supply shortages

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Risks relating to environmental and occupational hazards
 and safety regulations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Risks relating to the roofing business

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Risks relating to the installation of solar energy
 systems

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Risks of labor shortages

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Risks related to the Holding Foreign Companies Accountable
 Act

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Risks related to the Russian invasion of Ukraine

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Risks related to our ability to continue as a going
 concern

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Risks relating to our development of an assembly factory
 in the US

· Our management has identified material weaknesses in our internal control over financial
 reporting and we may not be able to remediate these weaknesses. Additionally, our management may identify material weaknesses in
 the future that could adversely affect investor confidence, impair the value of our securities and increase our cost of raising capital.

See "[Risk Factors](#a4)."

**The Offering (1)**

---

| | |
|:---|:---|
| Ordinary shares offered by us | 2,500,000 shares.  |
| Ordinary shares outstanding before this offering | 25,000,000 shares. |
| Ordinary shares outstanding after this offering | 27,500,000 shares.  |
| Price per ordinary share | We currently estimate that the initial public offering price will be between $7.00 and $9.00 per ordinary share. |
| Use of proceeds | We intend to use the net proceeds from this offering for working capital and general corporate purposes.<br>|
| Representative's warrants | Upon the closing of this offering, we will issue to Maxim Group, LLC, as representative of the underwriters, the representative's warrants entitling the representative to purchase 5% of the aggregate number of ordinary shares issued in this offering, including any shares issued pursuant to exercise of the underwriters' over-allotment option. The representative's warrants will be exercisable for a period of five years from the effective date of the registration statement of which this prospectus forms a part and may be exercised on a cash or cashless basis. |
| Lock-up | All of our directors, officers and shareholders have agreed with the underwriters, subject to certain exceptions, not to sell, transfer or dispose of, directly or indirectly, any of our ordinary shares or securities convertible into or exercisable or exchangeable for our ordinary shares for a period of six months after the date of this prospectus. See "[Shares Eligible for Future Sale](#a19)" and "[Underwriting](#a21)" for more information. |
| Risk factors | **Investment in the ordinary shares involves a high degree of risk. See "[Risk Factors](#a4)" in this prospectus beginning on page 13 for a discussion of factors and uncertainties that you should consider in evaluating an investment in our securities.** |
| Proposed Nasdaq symbol | We have applied to list our ordinary shares on the Nasdaq Capital Market under the symbol "SJA". |

---

(1) Unless otherwise indicated, all information contained in this prospectus assumes no exercise of the underwriters' over-allotment option or the representative's warrants, and the number of ordinary shares that will be outstanding after this offering is based on 25,000,000 ordinary shares outstanding as of July 18, 2022.

**Summary Consolidated Financial Information**

 

*You should read the following summary consolidated financial information in conjunction with our consolidated financial statements and related notes, "Selected Consolidated Financial Information" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" included elsewhere in this prospectus.*

The following tables summarize our consolidated financial data for the periods and as of the dates indicated. The unaudited historical interim financial data as of June 30, 2022 and for each of the six months ended June 30, 2022 and 2021 have been derived from our unaudited condensed consolidated financial statements and should be read in conjunction with the Company's consolidated financial statements as of December 31, 2021 and 2020. Historical results are not necessarily indicative of results to be expected in any future period.

 **For the six months ended June 30, 2022 and 2021:**

---

| | | |
|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2022** | **2021** |
|  | **Unaudited** | **Unaudited** |
| In $ thousands |  |  |
| **Consolidated Statements of Operation Data:** |  |  |
| Sales | $81517 | $75798 |
| Cost of revenue | 77546 | 70435 |
| &nbsp;&nbsp;&nbsp; Gross profit | 3971 | 5363 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp; General and administrative | 7000 | 9236 |
| &nbsp;&nbsp;&nbsp; Sales, marketing and customer service | 1617 | 2584 |
| &nbsp;&nbsp;&nbsp; (Reversal of) provision for credit losses | (209) | 319 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 8408 | 12139 |
| Operating Loss | (4437) | (6776) |
| Other income (expense): |  |  |
| &nbsp;&nbsp;&nbsp; Interest expense, net | (373) | (607) |
| &nbsp;&nbsp;&nbsp; Net foreign exchange gain/(loss) | 19 | (777) |
| &nbsp;&nbsp;&nbsp; Others | 4784 | 586 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other income (expense), net | 4430 | (798) |
| Loss before income taxes | (7) | (7574) |
| &nbsp;&nbsp;&nbsp; Income tax expense | (579) | (566) |
| Net Loss | (586) | (8140) |
| &nbsp;&nbsp;&nbsp; Less: Net income attributable to non-controlling interests | 192 | 376 |
| Net Loss attributable to shareholder of SolarJuice Co., Ltd. | $(778) | $(8516) |

---

The summary consolidated statement of operations for the years ended December 31, 2021 and 2020 and the summary consolidated balance sheet as of December 31, 2021 and 2020 have been derived from our consolidated financial statements included elsewhere in this prospectus, which were prepared in accordance with US GAAP. Historical results are not necessarily indicative of results to be expected in any future period.

 **For the year ended December 31, 2021 and 2020:**

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2021** | **2020** |
| In $ thousands |  |  |
| **Consolidated Statements of Operation Data:** |  |  |
| &nbsp;&nbsp;&nbsp; Net sales | $153276 | $113505 |
| Cost of revenue | 145896 | 104313 |
| &nbsp;&nbsp;&nbsp; Gross profit | 7380 | 9192 |
| &nbsp;&nbsp;&nbsp; Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp; General and administrative | 18593 | 3889 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales, marketing and customer service | 6128 | 1939 |
| Provision for credit losses | 2635 | 145 |
| Total operating expenses | 27356 | 5973 |
| &nbsp;&nbsp;&nbsp; Operating (loss) income | (19976) | 3219 |
| &nbsp;&nbsp;&nbsp; Other income (expense): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense, net | (887) | (329) |
| Net foreign exchange loss | (858) | (1390) |
| &nbsp;&nbsp;&nbsp; Others | 524 | (129) |
| Total other expense, net | (1221) | (1848) |
| &nbsp;&nbsp;&nbsp; (Loss) income before income taxes | (21197) | 1371 |
| Income tax expense | (1427) | (424) |
| Net (loss) income including noncontrolling interests | $(22624) | $947 |
| &nbsp;&nbsp;&nbsp; Less: Net income attributable to noncontrolling interests | 657 | 184 |
| Net (loss) income attributable to shareholder of SolarJuice | $(23281) | $763 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30,**<br> **2022** | **December 31,**<br> **2021** | **December 31,**<br> **2020** |
| In $ thousands | (Unaudited) |  |  |
| **Summary Consolidated Balance Sheet Data:** |  |  |  |
| &nbsp;&nbsp;&nbsp; Cash and cash equivalents | $3241 | $1342 | $14824 |
| &nbsp;&nbsp;&nbsp; Current assets | 46766 | 45012 | 42251 |
| &nbsp;&nbsp;&nbsp; Total assets | 56410 | 52610 | 44285 |
| &nbsp;&nbsp;&nbsp; Current liabilities | 47856 | 38234 | 16955 |
| &nbsp;&nbsp;&nbsp; Total liabilities | 50256 | 45242 | 17113 |
| &nbsp;&nbsp;&nbsp; Total equity | 6154 | 7368 | 27172 |
| &nbsp;&nbsp;&nbsp; Total liabilities and equity | 56410 | 52610 | 44285 |

---

**RISK FACTORS**

 

*Investment in our ordinary shares involves a high degree of risk. You should consider carefully the following information about these risks, together with other information contained in this prospectus, before investing in our ordinary shares. If any of the following risks actually occurs, our business, financial condition and results of operations could suffer. If this happens, the trading price of our ordinary shares could decline and you may lose all or part of your investment.*

**RISKS RELATED TO OUR COMPANY**

***SJ America purchased certain assets from Petersen-Dean, Inc. and its affiliates (collectively "Petersen-Dean" or "PDI") in February 2021 to launch its domestic roofing and solar products installation business through a bankruptcy proceeding commenced by PDI in June 2020. SJ America has incurred losses operating these assets since acquiring them. Although we have focused on reducing expenses and increasing sales, there is no assurance that profitability can be achieved or sustained.***

 ****

Due to the impact of the COVID pandemic and significant outstanding debt, on June 11, 2020 PDI filed a petition for relief under Chapter 11 of the United States Bankruptcy Code, and, subsequently, the bankruptcy court organized several rounds of asset auctions to raise cash for PDI. SJ America participated in two of those asset auctions.

We entered the winning bid at an auction held in December 2020 and the following month paid $875,000 for assets related to PDI's consumer business, which consisted mainly of approximately 1,200 unfinished contracts for solar and/or roofing products installation.

The PDI bankruptcy court also auctioned substantially all of PDI's commercial division assets in December 2020, which consisted mainly of vehicles, forklifts, work-in-progress contracts, inventories, furniture, fixtures and equipment. SJ America won this auction, ultimately paying $6,875,000 in cash and assuming $11,000,000 of debtor-in-possession financing ("DIP Facility") on February 25, 2021, which is pledged by the accounts receivable of PDI factored as of the acquisition date. SJ America is responsible to repay the remaining part of the facility if the collection of the factored accounts receivable is not able to cover the loan balance, and if there is any excess amount on the factored accounts receivable after the LSQ factoring facility is fully repaid, remaining factored accounts receivable will be released to SJ America. The assets purchased from PDI are the basis for SJ America's current roofing and solar panel installation business.

SJ America incurred a loss of $25.9 million on $29.0 million in revenue for the 10 months ended December 31, 2021.

We note that if SJ America cannot achieve or maintain profitability in our domestic residential roofing and solar product installation business, the value of our ordinary shares could decline, or you could lose your entire investment.

***A potential failure to maintain effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act could have a material adverse effect on our business, financial condition, and results of operations. We may be unable to accurately report our financial results or prevent fraud if we cannot maintain an effective system of internal controls over our financial reporting.***

 ****

We are subject to reporting obligations under the US securities laws. The Securities and Exchange Commission, or the "SEC," as required by Section 404 of the Sarbanes-Oxley Act of 2002, or the "Sarbanes-Oxley Act," adopted rules requiring every public company to include a management report on such company's internal controls over financial reporting in its annual report, which contains management's assessment of the effectiveness of the company's internal controls over financial reporting. We are an "emerging growth company," and are expected to first include a management report on our internal controls over financial reporting in our annual report in the second fiscal year end following the effectiveness of our initial public offering. Such requirements are expected to first apply to our annual report on Form 20-F for the year ending on December 31, 2022. Our management may conclude that our internal controls over our financial reporting are not effective, and our reporting obligations as a public company will place a significant strain on our management, operational and financial resources and systems for the foreseeable future, which will increase our operating expenses.

We identified deficiencies in our internal control that we consider to be material weaknesses in our internal control over financial reporting which existed as of December 31, 2021. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our consolidated financial statements will not be prevented or detected on a timely basis. We determined that we have the following six material weaknesses in our internal controls: (1) failure to maintain an effective control environment of internal control over financial reporting; (2) failure to develop an effective risk assessment process to identify and evaluate at a sufficient level of detail all relevant risks of material misstatement, including business, operational, and fraud risks; (3) ineffective monitoring activities to assess the operation of internal control over financial reporting; (4) ineffective process-level controls associated with the revenue, purchasing and inventory, treasury, property and equipment, tax, and payroll processes that (a) addressed relevant risks, (b) provided sufficient evidence of performance, and (c) established appropriate segregation of duties, during the financial reporting processes; (5) lack of sufficient controls designed and implemented for financial information processing and reporting and lacked resources with requisite skills for the financial reporting under US GAAP; and (6) lack of sufficient controls designed and implemented in IT environment and IT general control activities, which mainly associated with areas of logical access security, system change, computer operation and service organization control monitoring activities. Certain process-level automated controls and manual controls that are dependent on the completeness and accuracy of information derived from the affected information technology systems were also ineffective.

To remediate the material weaknesses described above, we plan to continue to establish a comprehensive and effective internal control system with the assistance from third party consulting firm which shall provide relevant professional advisory services to us. We plan to continue to assess our standardized processes to further enhance the effectiveness of our financial review, including the analysis and monitoring of financial information in a consistent and thorough manner. The Company's remediation actions to be taken were highlighted as follows: (1). strengthen overview and monitoring from the Company's governance, and set up the Company's internal audit department who reports to the audit committee directly, to ensure enhanced oversight over the Company's financial reporting function; (2) engage a professional adviser to review, test and optimize the Company's internal control system, particularly focusing on the material weaknesses identified as above, (3) launch and improve the internal control execution plan to supervise and monitor the operational functions; (4) establish a formal and systematic risk assessment program and involve upper management to identify and analyze risks; (5) provide our accounting team and other relevant personnel with more comprehensive guidelines and training on the policies and controls over financial reporting under US GAAP and SEC rules and requirements; (6) strengthen the review controls on journal entries and accounting treatments and adjustment by providing our accounting team with more comprehensive guidelines on the policies and controls over financial reporting under US GAAP and SEC rules and Requirements; (7) enhance management monitoring and review of key processes with more comprehensive guidelines on the policies and controls over financial reporting; and (8) strengthen the monitoring and evaluation of the independent and competent tax and accounting agencies and strengthen the supervision and controls on the IT functions, including the enhancement of logical security and monitor service provider.

The establishment of effective internal controls over financial reporting are necessary for us to produce reliable financial reports and are important to help prevent fraud. Our failure to achieve and maintain effective internal controls over financial reporting could consequently result in the loss of investor confidence in the reliability of our financial statements, which in turn could harm our business and negatively impact the trading price of our stock. We anticipate that we will incur considerable costs and devote significant management time and efforts and other resources to comply with Section 404 of the Sarbanes-Oxley Act.

***Our management has identified material weaknesses in our internal control over financial reporting and we may not be able to remediate these weaknesses. Additionally, our management may identify material weaknesses in the future that could adversely affect investor confidence, impair the value of our securities and increase our cost of raising capital.***

There can be no assurance as to how quickly or effectively we can remediate the material weaknesses in our internal control over financial reporting or that additional material weaknesses will not be identified in the future. Any failure to remedy additional weaknesses or deficiencies in our internal control over financial reporting that may be discovered in the future or to implement new or improved controls, or difficulties encountered in the implementation of such controls, could harm our operating results, cause us to fail to meet our reporting obligations or result in material misstatements in our financial statements. Any such failure could, in turn, affect the future ability of our management to certify that our internal control over financial reporting is effective. Ineffective internal control over financial reporting could also subject us to the scrutiny of the SEC and other regulatory bodies which could cause investors to lose confidence in our reported financial information and subject us to civil or criminal penalties or shareholder litigation, which could have an adverse effect on the trading price of our securities. In addition, if we identify additional deficiencies in our internal control over financial reporting, the disclosure of that fact, even if quickly remedied, could reduce the market's confidence in our financial statements and harm our share price. Furthermore, additional deficiencies could result in future non-compliance with Section 404 of the Sarbanes-Oxley Act of 2002 ("Sarbanes-Oxley"). Such non-compliance could subject us to a variety of administrative sanctions, including review by the SEC or other regulatory authorities.

***Our corporate strategy includes growth through the acquisition of assets and companies, which might involve risk to investors.***

These risks include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· difficulties integrating the operations and personnel of purchased assets or acquired
 companies;

· diversion of management's attention from ongoing operations;

· potential difficulties and increased costs associated with completion of any assumed
 construction projects;

· insufficient revenues to offset increased expenses associated
 with acquisitions and the potential loss of key employees or customers of the acquired companies;

· assumption of liabilities of an acquired business, including
 liabilities that were unknown at the time the acquisition was negotiated;

· difficulties relating to assimilating the personnel, services,
 and systems of an acquired business and to assimilating marketing and other operational capabilities;

· increased burdens on our staff and on our administrative,
 internal control and operating systems, which may hinder our legal and regulatory compliance activities;

· difficulties in applying and integrating our system of internal controls to an acquired
 business;

· if we issue additional equity securities, such issuances
 could have the effect of diluting our earnings per share, as well as our shareholders' individual ownership percentages in the
 Company;

· the recording of goodwill or other non-amortizable intangible
 assets that will be subject to subsequent impairment testing and potential impairment charges, as well as amortization expenses related
 to certain other intangible assets; and

· while we often obtain indemnification rights from the sellers of acquired
 businesses, such rights may be difficult to enforce and the indemnitors may not have the ability to financially support the indemnity.
 Failure to manage and successfully integrate acquisitions could harm our financial position, results of operations, cash flows and
 liquidity.

 ****

***We may be unable to successfully manage and integrate our Australian and US businesses.***

We operate a domestic roofing products and solar module installation business under SJ America and a solar module assembly plant under SJ Technology. SJ Australia conducts a PV products wholesale business very different from SJ American and SJ Technology. Our US solar module manufacturing, roofing and solar installations business operates in five states and has approximately 320 employees, not including independent contractors and sub-contractors. We are headquartered in Australia and need to successfully manage, oversee and integrate our US businesses, which may impose certain challenges due to geographic and time differences and different applicable rules and regulations. The Company will also need to manage and integrate the IT and accounting systems of our US business with SJ Australia and implement internal controls over financial reporting and disclosure procedures. Our domestic operations will also be required to comply with all licensing and applicable laws, rules and regulations that are applicable to the Solar4America and Roofs 4 America brand products in each of the jurisdictions in which we conduct business. Our inability to successfully manage and integrate the Australian and US businesses could significantly impair the Company's prospects and the value of your investment.

***Our three business units, SJ Australia, SJ America and SJ Technology, conduct distinct businesses. Although we believe that there are significant synergies to be derived if we are able integrate the three operations in terms of supply chain management, product design, manufacturing and overall PV industry branding, we cannot guarantee that we can successfully integrate the three businesses to optimize the management costs for a global holding company structure.***

SJ Australia, SJ America and SJ Technology are dissimilar businesses. The three business units also operate under different managerial systems, including different CRM/ERP systems. While we have paid attention to the need to integrate the ERP systems, as we revamp the ERP system for SJ America, there is no guarantee that the overall IT configurations for the three business units will be fully integrated in the future. The three business units operate in different jurisdictions and different industries, and different requirements for payroll, personnel, benefits, licensing and other regulatory requirements. We cannot guarantee that we can integrate back office supporting functions other than the ERP. The three business units also face distinctive cash conversion cycles and working capital needs. As SJ America engages in a business turnaround, forecasting its liquidity needs is more challenging, and there is no assurance that the three business units will be able to efficiently share their resources for liquidity requirements. Our management team might not be able to successfully operate all three businesses.

 ****

***We may not have sufficient cash flow from our business to timely pay our interest and principal obligations under our existing indebtedness with banks or other financial institutions, which might force us to take other actions to satisfy our obligations.***

SJ America entered into an Amended and Restated Invoice Purchase Agreement ("AIPA") with LSQ Funding Group L.C. and LS DE LLC ("LSQ") on February 24, 2021 in connection with the PDI asset acquisition, which provided the DIP Facility pursuant to which SJ America entered into a factoring agreement with LSQ and SJ America assumed PDI's obligations under a prior DIP Facility ("DIP Obligations"). SJ America's obligations under the AIPA are additionally collateralized by all of the assets of SJ America. The interest rate charged to SJ America under the AIPA was 0.333% per day, but reduced to 0.25% per day, once the aggregate DIP Obligations were below $10,000,000, and once the aggregate DIP Obligations are below $5,000,000 the interest rate will be reduced to 0.222% per day. In March 2021, SJ America used the proceeds of a term line of credit from a bank to pay an additional $3,000,000 to LSQ thereby reducing the balance of the DIP Obligations to below $8,000,000. The interest rate on this line of credit is 3.25% per annum. Using weekly collections proceeds, we reduced the balance of the DIP Obligations to below $4,000,000 in June 2022. We expect to continue to pay LSQ from accounts receivable collections, from prior PDI clients and from operating cash flow.

On March 18, 2019, SJ Australia entered into debtor finance agreements with Scottish Pacific (BFS) Pty Ltd. ("Scottish Pacific"), whereby Scottish Pacific provided SJ Australia an invoice discounting facility. As of December 31, 2021, all the outstanding accounts receivable of SolarJuice were pledged to Scottish Pacific, for a total gross amount of $11,899,000. As of December 31, 2021, SJ Australia had restricted bank deposits of $374,000, mainly established for paying the obligations of SJ Australia for the invoice discounting facility. The effective interest rate under this facility was 7.0% per annum in 2021. The current balance under the Scottish Pacific facility is approximately $0.243 million, and the current interest rate under the facility is 6.16%. SJ Australia expects to keep this discounting facility or similar financing in the future to support its growth, and, if necessary, repay such financing through refinancing.

Servicing these lines of financing requires a significant amount of cash. Our ability to make scheduled payments of the principal and interest on our indebtedness, depends on our future performance, which is subject to economic, financial, competitive and other factors beyond our control. Our business may not generate cash flow from operations sufficient to service our debt and make necessary capital expenditures to operate our business. If we are unable to generate such cash flow, we may be required to adopt one or more alternatives, such as slowing our business, selling assets, restructuring debt or obtaining additional debt and equity capital on terms that may be onerous or highly dilutive. Our ability to timely repay or otherwise refinance our indebtedness will depend on the capital markets and our financial condition at such time. We may not be able to engage in any of these activities or engage in these activities on desirable terms, which could result in a default on our debt obligations.

We also expect to incur additional debt in the future, subject to the restrictions contained in our debt instruments. Increases in our existing debt obligations would further heighten the debt related risks discussed above, and we may not be able to enter into new debt instruments on acceptable terms or at all. Our business might be adversely affected if we are unable to satisfy financial covenants and other terms under existing or new instruments, or obtain waivers or forbearance from our lenders, or if we are unable to obtain refinancing or new financings for our working capital, equipment and other needs on acceptable terms if and when needed.

 ****

***We face risks associated with the international manufacturing, marketing, distribution and sale of our products and the construction and operation of our US manufacturing facilities, and if we are unable to effectively manage these risks, our business and operations abroad may be adversely affected and our ability to maintain, develop and expand our business in the US may be restricted.***

We commenced pilot production of "Made-in-America" solar modules under the Solar4America brand in June 2022. Currently, we sublease existing solar module manufacturing facilities with a total floor area of 195,100 square feet located in McClellan Park, California. We acquired solar module manufacturing equipment assets from Sunergy California LLC, and we have assembled a manufacturing team to commence production. We have entered into purchase and other agreements for purchase of additional manufacturing equipment and expansion of our production capacities, and expect that our production capacity will expand to approximately 650MW solar modules per year by the end of 2022 once all of the solar module assembly equipment is fully assembled and operational. We expect the production capacity will be further increased to 1,100MW per year by the end of 2023. We plan to promote our products from this factory, as "Made-in-America," which we expect to appeal to certain customers and to qualify for government "Buy America" programs.

The manufacturing, marketing, distribution and sale of our products in the US, as well as the construction and operation of our manufacturing facilities in the US may expose us to a number of risks, including those associated with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· costs associated
 with understanding local markets and trends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· costs associated
 with establishment of US manufacturing facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· marketing and
 distribution costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· customer services
 and support costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· risk management
 and internal control structures for our US operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· compliance with
 the different commercial, operational, environmental and legal requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· obtaining or
 maintaining certifications for production, marketing, distribution and sales of our products
 and services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· maintaining our
 reputation as an environmentally friendly enterprise for our products or services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· obtaining, maintaining
 or enforcing intellectual property rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· changes in prevailing
 economic conditions and regulatory requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· transportation
 and freight costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· employing and
 retaining manufacturing, technology, sales and other personnel who can function effectively
 in US markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· trade barriers
 such as trade remedies, which could increase the prices of the raw materials for our solar
 products, and export requirements, tariffs, taxes and other restrictions and expenses, which
 could increase the prices of our products and make us less competitive in some countries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· challenges due
 to our unfamiliarity with local laws, regulations and policies, our absence of significant
 operating experience in local market, increased costs associated with establishment of overseas
 operations and maintaining a multinational organizational structure; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· other risks that
 are beyond our control.

Our management team has no experience in operating a module manufacturing factory in the US, which will be a unique business line in addition to the distribution, installation and product development businesses that we operate. The new CRM/ERP systems that we are implementing in the US may not be suitable for a manufacturing factory. We cannot assure that the management team will be able to operate the manufacturing factory successfully or generate enough profit or cash flow from it to justify the capital investments.

We will face different business environments and industry conditions in the domestic solar module assembly and sale business, and we may spend substantial resources familiarizing ourselves with the new environment and conditions. Our business operations might be affected by unexpected and adverse economic, regulatory, social and political conditions in the jurisdictions in which we have operations, we may experience project disruptions, loss of assets and personnel, and other indirect losses that could adversely affect our business, financial condition and results of operations. Our manufacturing facility in the United States might expose us to various risks, including, among others, failure to obtain the required approvals, permits or licenses, or to comply with the conditions associated therewith, failure to procure economic incentives or financing on satisfactory terms, and failure to procure construction materials, production equipment and qualified personnel for the manufacturing facility in a timely and cost-effective manner. Any of these events may increase the related costs, or impair our ability to run our operations in the future on a cost-effective basis, which could in turn have a material adverse effect on our business and results of operations.

***Risk Factors Relating to our Roofing and Solar Power Businesses***

***The solar energy industry is a new and evolving market, which may not grow to the size or at the rate we expect.***

The solar energy industry is a new and rapidly growing market opportunity. We believe the solar energy industry will continue still take several years to fully develop and mature, but we cannot be certain that the market will grow to the size or at the rate that we expect. Any future growth of the solar energy market and the success of our solar service offerings depend on many factors beyond our control, including recognition and acceptance of the solar service market by consumers, the pricing of alternative sources of energy, a favorable regulatory environment, the continuation of expected tax benefits and other incentives, and our ability to provide our solar service offerings cost-effectively, and our business might be adversely affected should the markets for solar energy do not develop to the size or at the rate we expect.

Solar energy has yet to achieve broad market acceptance and depends in part on continued support in the form of rebates, tax credits, and other incentives from federal, state and local governments. If this support diminishes materially, our ability to attract customers for our products and services could be adversely affected. Growth in residential solar energy also depends on dynamic macroeconomic conditions, retail prices of electricity and customer preferences. Declining macroeconomic conditions, including labor markets and residential real estate markets, could contribute to instability and uncertainty among customers and impact their financial ability, credit scores or interest in entering into long-term contracts, even if such contracts would generate immediate and long-term savings.

Market prices of retail electricity generated by utilities or other energy sources also could decline for a variety of reasons, as discussed further below. Any such declines in macroeconomic conditions, changes in retail prices of electricity or changes in customer preferences would adversely impact our business.

We have historically benefited from declining costs in our industry, and our business and financial results might be harmed not only as a result of any increases in costs associated with our solar service offerings, but, also, by any failure of these costs to continue to decline as we currently expect. If we do not reduce our cost structure in the future, we may not achieve profitability.

Declining costs related to raw materials, manufacturing and the sale and installation of our solar service offerings have been a key driver in the pricing of our solar service offerings and customer adoption of solar energy. The prices of solar modules and raw materials have declined, however the cost of solar modules and raw materials could increase in the future, and such products' availability could decrease, due to a variety of factors, including restrictions stemming from the COVID-19 pandemic, tariffs and trade barriers, export regulations, regulatory or contractual limitations, industry market requirements, and changes in technology and industry standards.

Other factors may also impact costs, such as our choice to make significant investments to drive growth in the future.

***Competition and Price Cutting***

The roofing industry is very competitive based on the large number of contractors, and there is intense competition over the pricing of roof repairs and installations, and our business might suffer if our competitors reduce their prices to where we can no longer profitably operate.

***We might lose business to competitors that underbid us and might be unable to compete favorably in our highly competitive industry.***

Most of our project awards are determined through a competitive bidding process in which price is the determining factor, and we compete against multiple competitors in many of the markets in which we operate. Some of our competitors are larger than we and are vertically integrated, and competitors larger than us may be able to better exploit economies of scale to receive higher discounts or rebates when purchasing materials. An increase in competition may result in decreases in new project awards to us at acceptable profit margins, and a downturn in private residential and commercial construction could materially and adversely impact our financial condition, results of operations or liquidity.

 ****

***Our business is seasonal and subject to adverse weather conditions, which can adversely impact our business.***

Some of our construction operations occur outdoors in areas in which hurricanes, tornadoes, tropical storms, and/or wild fires are common. Seasonal changes and adverse weather conditions, such as extended snowy, rainy or cold weather, can adversely affect our business operations through delays in our construction schedules, and reduced efficiencies in our contracting operations, resulting in under-utilization of crews and equipment and lower contract profitability. Climate change may lead to increased extreme weather and changes in precipitation and temperature, including natural disasters. Should the impact of climate change be significant or occur for lengthy periods of time, our financial condition or results of operations would be adversely affected.

***The reduction, modification, delay or discontinuation of government subsidies and other economic incentives for the solar industry might reduce the profitability or viability of our solar projects and materially adversely affect our business.***

Solar energy is not currently cost competitive with other energy sources in our existing markets and the new markets into which we plan to expand. For a variety of technological and economic reasons, the cost of generating electricity from solar energy in these markets currently exceeds and, absent significant changes in technological or economic circumstances, will continue to exceed the cost of generating electricity from conventional and certain other competing energy sources. Government subsidies and incentives, primarily in the form of tax credits, net metering, and other incentives to end users and distributors of solar products are generally required to enable companies such as us to successfully operate in these markets.

Government subsidies and incentives vary by geographic market. The availability and size of such subsidies and incentives depend, to a large extent, on political and policy developments relating to environmental concerns, and other macro-economic factors. These government subsidies and incentives are expected to gradually decrease in scope or be discontinued as solar energy technology improves and becomes more affordable relative to other types of energy. Reductions have occurred in certain areas where we have operations, and subsidies and incentives may be further reduced or discontinued in areas where we currently or intend to operate. A significant reduction in the scope or discontinuation of government incentive programs in our existing and target markets could have a material adverse effect on our business, financial condition, results of operations, and prospects.

***Existing rules, regulations and policies pertaining to electricity pricing and technical interconnection of customer-owned electricity generation and changes to these regulations and policies might deter the purchase and use of solar energy systems and negatively impact development of the solar energy industry.***

The market for solar energy systems is heavily influenced by foreign, federal, state and local government regulations and policies concerning the electric utility industry, as well as policies adopted by electric utilities. These regulations and policies often relate to electricity pricing and technical interconnection of customer-owned electricity generation. For example, the vast majority of states have a regulatory policy known as net energy metering, or "net metering", which allows our customers to interconnect their on-site solar energy systems to the utility grid and offset their utility electricity purchases by receiving a bill credit at the utility's retail rate for energy generated by their solar energy system that is exported to the grid and not consumed on-site. The customer consequently pays for the net energy used or receives a credit at the retail rate if more electricity is produced than consumed. Net metering, in some states, is being replaced with lower credits for the excess electricity sent onto the grid from solar energy systems, and utilities are imposing minimum or fixed monthly charges on owners of solar energy systems. These regulations and policies have been modified in the past and may be modified in the future in ways that can restrict the interconnection of solar energy systems and deter purchases of solar energy systems by customers. Electricity generated by solar energy systems also competes most favorably in markets with tiered rate structures or peak hour pricing that increase the price of electricity when more is consumed. Modifications to these rate structures by utilities, such as reducing peak hour or tiered pricing or adopting flat rate pricing, could require the price of solar energy systems to be reduced in order to compete with the price of utility generated electricity.

Large California utilities have, for instance, started transitioning customers to time-of-use rates and also have adopted a shift in the peak period for time-of-use rates to later in the day. Unless grandfathered under a different rate, residential customers with solar energy systems are required to take service under time-of-use rates with the later peak period. Moving utility customers to time-of-use rates or the shift in the timing of peak rates for utility-generated electricity to include times of day when solar energy generation is less efficient or non-operable could also make our offerings less competitive. Time-of-use rates could also result in higher costs for our customers whose electricity requirements are not fully met by our offerings during peak periods. The price of electricity from utilities also may grow less quickly than the escalator feature in certain of our solar service agreements, which could also make our systems less competitive with the price of electricity from the electrical grid and result in a material adverse effect on our business, financial condition and results of operations.

***The reduction, elimination or expiration of government subsidies and economic incentives for solar energy systems could reduce the demand for our products and services.***

National, state and local government bodies and utilities, in Australia and the US, provide incentives to end-users, distributors, system integrators and manufacturers of solar energy systems to promote solar electricity in the form of rebates, tax credits and other financial incentives such as system performance payments and payments for renewable energy credits associated with renewable energy generation. These incentives enable us to lower the price we charge our customers for solar energy systems, but might expire on a particular date, end when the allocated funding is exhausted, or be reduced or terminated as solar energy adoption rates increase and often occur without warning. Applicable authorities might also adjust or decrease incentives or include provisions for minimum domestic content requirements or other requirements to qualify for these incentives. The reduction, elimination or expiration of such incentives or delays or interruptions in the implementation of favorable federal or state laws could substantially increase the cost of our systems to our customers, resulting in a significant reduction in demand for our solar energy systems, which would negatively impact our business.

***Existing regulations, and changes to such regulations, might present technical, regulatory and economic barriers to the installation of solar energy systems, which may significantly reduce demand for our solar energy systems.***

The installation of solar energy systems is subject to oversight and regulation under local ordinances; building, zoning and fire codes; utility interconnection requirements for metering; and other rules and regulations. We attempt to keep apprised on these requirements on a national, state and local level and must design and install our solar energy systems to comply with varying standards. Certain jurisdictions may have ordinances that prevent or increase the cost of installation of our solar energy systems. New government regulations or utility policies pertaining to the installation of solar energy systems are unpredictable and might result in significant additional expenses or delays, which could cause a significant reduction in demand for solar energy systems.

***An increase in our cost of materials could arise as a result of US trade restrictions or tariffs on imported solar modules, cells, inverters, batteries or other products related to our business.***

The US and China in 2018 began a new round of mutual tariffs on various products imported from each other's country. The initial US tariffs on products from China include an additional 25% tariff on solar modules and cells made in China, as well as a 25% tariff on inverters, batteries and electrical equipment made in China beginning in January 2019. The US has also imposed or announced tariffs on products imported from other countries that might provide products that we use. President Biden announced in a May 10, 2022 speech that he would consider ending tariffs on certain goods produced in China to help reduce the prices of domestic goods, and his US Trade Representative earlier that month initiated a procedural review of US tariffs on goods made in China leading up to the four-year anniversary of the Trump Administration's passage of July and August 2018 tariffs on certain goods made in China. We cannot predict future tariffs or trade laws between the US and other countries, which products might be subject to tariffs or other actions, or retaliatory actions against the US by such other countries. The adoption and expansion of trade restrictions, the occurrence of a trade war, or other governmental action related to tariffs or trade agreements or policies has the potential to adversely impact our supply chain, our costs, our suppliers, and the US economy, which could in turn adversely affect our business, financial condition and results of operation.

For example, in January 2018, in response to a petition filed under Section 201 of the Trade Act of 1974, President Trump imposed four-year tariffs on imported solar modules and imported solar cells not assembled into other products (the "Section 201 Module Tariffs") that apply to all imports above a 2.5 gigawatts (GW) annual threshold. The Section 201 Module Tariffs were 30% in 2018 and stepped down by 5% annually in the second, third and fourth years. In October 2020, President Trump issued a proclamation increasing the tariff from 15% to 18% for 2021, the final year under the original Sec. 201 proclamation imposing the tariffs.

The Peterson Institute for International Economics or PIIE reported in April 2022 that Chinese exports to the U.S. currently incur an average 19.3% tariff, which amount is more than 600% of the prevailing domestic tariff before trade tensions escalated, and much higher than the current 3.0% average U.S. tariff on products originating in other countries. The PIIE report also indicated that on February 7, 2022, the U.S. reduced its Section 201 tariffs on solar panels among other products, which indicates a potential easing of U.S.-China trade tariffs under the current administration.

***Our business prospects could be harmed if solar energy is not widely adopted or sufficient demand for solar energy systems does not develop or takes longer to develop than we anticipate.***

The solar energy market is at a relatively early stage of development. The extent to which solar energy will be widely adopted and the extent to which demand for solar energy systems will increase are uncertain. If solar energy does not achieve widespread adoption or demand for solar energy systems fails to develop sufficiently, we might be unable to achieve our revenue and profit targets. Demand for solar energy systems in our targeted markets might not develop as we anticipate. Many factors may affect the demand for solar energy systems, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· availability of government and utility company subsidies and incentives
 to support the development of the solar energy industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· government and utility policies regarding the interconnection of solar
 energy systems to the utility grid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· fluctuations in economic and market conditions that affect the viability
 of conventional and non-solar renewable energy sources, such as changes in the price of natural gas and other fossil fuels;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· cost-effectiveness (including the cost of solar modules), performance
 and reliability of solar energy systems compared with conventional and other non-solar renewable energy sources and products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· success of other renewable energy generation technologies, such as
 hydroelectric, wind, geothermal, solar thermal, concentrated solar and biomass;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· availability of customer financing with economically attractive terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· fluctuations in expenditures by purchasers of solar energy systems,
 which tend to decrease in slower economic environments and periods of rising interest rates and tighter credit; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· deregulation of the electric power industry and the broader energy
 industry.

***Our business has benefited from the declining cost of solar energy system components, and might be harmed to the extent that declines in the cost of such components stabilize or that such costs increase in the future.***

Our business has benefited from the declining cost of solar energy system components and to the extent such costs stabilize or decline at a slower rate, or, in fact, increase, our future growth rate may be negatively impacted. The declining cost of solar energy system components and the raw materials necessary to manufacture them has been a key driver in the price of solar energy systems we own, the prices charged for electricity and customer adoption of solar energy. Solar energy system component and raw material prices might not continue to decline at the same rate as they have over the past several years or at all, and growth in the solar industry and the resulting increase in demand for solar energy system components and the raw materials necessary to manufacture them might also put upward pressure on prices. An increase of solar energy system components and raw materials prices could slow our growth and cause our business and results of operations to suffer, and the cost of solar energy system components and raw materials has and could continue to increase due to scarcity of materials, tariff penalties, duties, the loss of or changes in economic governmental incentives or other factors.

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***Although average selling prices of solar modules in many global markets have declined for several years, recent spot pricing for solar modules has increased, in part, due to elevated commodity and freight costs***

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While average selling prices of solar modules in many global markets have declined for several years, recent spot pricing for solar modules has increased, in part, due to elevated commodity and freight costs. The price of polysilicon has significantly increased in recent months due to a coal shortage in China, which resulted in higher energy prices and the Chinese government's mandating power restrictions that led to curtailments of silicon metal production. Given that the majority of global polysilicon capacity is located in China, such higher energy prices and reduced operating capacities have adversely affected the supply of polysilicon, contributing to an increase in polysilicon pricing. In response to such supply shortage, certain other Chinese-based producers of polysilicon are in the process of expanding their production capacity, which is expected to reduce the price of polysilicon in future periods. While the duration of this elevated period of spot pricing is uncertain, module average selling prices in global markets are expected to decline in the long-term, and we believe manufacturers of solar cells and modules, particularly those in China, have significant installed production capacity, relative to global demand, and the ability for additional capacity expansion. We believe the solar industry might experience periods of structural imbalance between supply and demand (i.e., where production capacity exceeds global demand), and that excess capacity will put pressure on pricing, and intense competition at the system level may result in an environment in which pricing falls rapidly, thereby potentially increasing demand for solar energy solutions but constraining the ability for project developers and module manufacturers to sustain meaningful and consistent profitability. We consequently continue to focus on our strategies and points of differentiation, which include our advanced module technology, our manufacturing process, our research and development capabilities, and the sustainability advantage of our modules.

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***Shortages in the supply of silicon could adversely affect the availability and cost of the solar photovoltaic modules used in our solar energy systems.***

Shortages of silicon or supply chain issues could adversely affect the availability and cost of our solar energy systems. Manufacturers of photovoltaic modules depend upon the availability and pricing of silicon, one of the primary materials used in photovoltaic modules. The worldwide market for silicon from time to time experiences a shortage of supply, which can cause the prices for photovoltaic modules to increase and supplies of photovoltaic modules become difficult to obtain. While we have been able to obtain sufficient supplies of solar photovoltaic modules to satisfy our needs to date, this may not be the case in the future. Future increases in the price of silicon or other materials and components could result in an increase in costs to us, price increases to our customers or reduced margins. Other international trade conditions such as work slowdowns and labor strikes at port facilities or major weather events can also adversely impact the availability and price of solar photovoltaic modules.

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***Due to the lingering effects of the COVID-19 pandemic the solar industry is experiencing supply constraints, which are resulting in an increase in the cost of solar modules and inverters. If the supply constraints and price increases continue our solar business might be affected.***

The primary driver of current supply constraints in the solar industry is material shortages. In 2020, the solar industry experienced record growth in the United States, despite the COVID-19 pandemic, compared to 2019, and installations increased by 43 percent, according to the Solar Energy Industries Association (SEIA). This record demand, coupled with decreased supply, has impacted many key materials throughout the solar supply chain, including polysilicon, solar glass, and semiconductor chips. Polycrystalline silicon, commonly referred to as polysilicon, is a key raw material used in many solar cells, which are responsible for capturing the energy from the sun and turning it into electricity in solar energy systems. Polysilicon is largely produced in China, but factory shutdowns related to the COVID-19 pandemic caused the price of the raw material to spike. Solar modules also include glass casing at the front of the module, which protects the solar cells, there has been recent growing demand for bifacial solar modules, which produce energy from both sides of the module, requiring glass on both sides of the solar module, as opposed to just on the front. In 2018, China, the largest producer of solar glass, imposed restrictions on glass production due to concerns about the required energy consumption. With increasing demand for solar modules, and for solar glass specifically, the restricted production of glass has been unable to meet the demand, causing the cost of solar glass to soar. In December 2020, China's Ministry of Industry and Information Technology (MIIT) indicated that it would ease restrictions on the production of solar glass. While solar glass supply is expected to remain constrained short-term, increased capacity due to these eased restrictions should expand supply later this year and reduce prices. Semiconductor chips are a key component of inverters, which convert the direct current (DC) energy produced by solar modules into usable alternating current (AC) energy. Inverters are also used for battery storage systems to convert storable DC energy to usable AC energy and vice versa. The use of semiconductor chips is not isolated to the solar industry; they are also crucial components of many other technologies, including cars, computers, and smartphones. Due to COVID-19 related factory shutdowns, manufacturing of semiconductor chips decreased in early 2020, and as factories began to reopen, demand for products containing semiconductor chips surged. The shortages of these materials and attendant price increases may affect our distribution of solar products and our installation of solar energy systems, and future increases in the price of silicon or other materials and components could result in an increase in costs to us, price increases to our customers or reduced margins.

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***Due to the COVID-19 pandemic, global spending on goods significantly increased global shipping resulting in increased costs and delays. Our company depends on international shipping to obtain our solar products used in our distribution and installation businesses, and if such shipping constraints and price increases continue, our solar business might be affected.***

The solar industry has also faced constraints related to shipping. Pandemic-related spending on goods increased global shipping, leading to shortages in containers and port congestion in the United States, impacting virtually every sector, including the solar industry. National lockdowns restricted both manufacturing and shipping as the pandemic began, and many shipping containers, such as those used to hold goods such as solar modules, became stranded and started to accumulate in the United States. Lockdowns continued in the United States as restrictions in China eased, and containers could not be returned to China, which caused a container shortage in China where containers were needed to continue exporting goods. Production of containers also decreased in 2020, further contributing to the shortage and causing prices of shipping containers to escalate. Increased imports, resulting from pandemic spending, has also increased port congestion in the United States, which congestion is exacerbated by significant recent increases in the size of container ships leading to longer unloading times, since each ship can now carry tens of thousands of shipping containers. If the shipping constraints and the increases in shipping costs continue for a long period of time our solar business might be affected. Future delays in shipping and increases in shipping costs or other materials could result in an increase in costs to us, price increases to our customers or reduced margins.

A May 2022 IHS Markit article noted that COVID-19 related supply chain challenges and issues in shipping products from China to the U.S. have continued due to sustained congestion and other delays at both U.S and Chinese ports, as well as an insufficient number of shipping containers. The shipping challenges have also contributed to higher container shipping rates between China and the U.S., and the article reports that the rate in May 2022 of a typical 40-foot container from China to the U.S. West Coast was $14,226, several thousand dollars more than the comparable rate from China to ports in Northern Europe. The article also noted that in increasing number of ships which are operating at only partial capacity is magnifying the port congestion and delays in unloading cargo.

***Due to the lingering effects of the COVID-19 pandemic the roofing industry is experiencing supply constraints, which are resulting in scarcity and an increase in the cost of lumber. If the supply constraints and price increases of lumber continue our roofing business may be affected.***

Significant supply constraints and price increases in the lumber SJ America uses in its roofing business have occurred due to COVID-19 driven layoffs and plant closings. Lumber prices have been highly volatile since the onset of the COVID-19 pandemic and the following supply chain disruptions. In the event our ability to source lumber continues to be restricted or the prices of lumber continue to increase, the roofing business of SJ America may be affected. We hope these supply issues are only short term, but there can be no assurance as to the timing when these supply constraints will end. Future increases in the price of lumber or scarcity of lumber could result in an increase in costs to us, price increases to our customers or reduced margins.

 

***Our inability to respond to changing technologies and issues presented by new technologies could harm our business.***

The solar energy industry is subject to technological change, and should we rely on products and technologies that cease to be attractive to customers, or if we are unable to respond appropriately to changing technologies and changes in product function or quality, we might not be successful in capturing or retaining significant market share. Any new technologies utilized in our solar energy systems might also not perform as expected or as desired, in which event our adoption of such products or technologies might harm our business

***Our solar business operates in a highly competitive market with low barriers to entry and, accordingly, we may face the loss of business or reduced margins.***

The solar energy system installation market is highly competitive with low barriers to entry. We currently compete with significantly larger companies and many small installers and developers. Larger companies might have greater financial, technical and marketing resources and greater name recognition than we us, and smaller companies might benefit from lower cost structures and be able to offer lower prices.

The competitive position of our solar business depends on factors outside of our control, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the availability of solar financing solutions;

· the price at which competitors offer comparable products;

· marketing efforts undertaken by our competitors;

· the extent of our competitors' responsiveness to customer needs; and

· access to materials, labor and installation services.

Competition in the solar energy system installation market might increase in the future as a result of low barriers to entry, and increased competition could result in reductions in price, margins, and market share and in greater competition for qualified personnel. Our business and operating results would be adversely affected if we are unable to compete effectively.

 

***Our solar business installs solar energy systems, and many factors can prevent us from completing installations on time or on budget.***

 

Factors that might prevent us from completing installations on time or on budget include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· shortages of materials;

· shortages of skilled labor;

· unforeseen installation scheduling, engineering, excavation, environmental or geological problems;

· job site issues that were not apparent during site inspection;

· natural disasters, hurricanes, weather interference, fires, earthquakes or other casualty losses
 or delays;

· delays in obtaining or inability to obtain or maintain necessary licenses or permits;

· changes to plans or specifications;

· performance by subcontractors;

· disputes with subcontractors; and

· unanticipated cost increases in materials, labor or other elements of our projects beyond budgets
 and allowances for contingencies.

Our installation projects expose us to risks of cost overruns due to typical uncertainties associated with any project or changes in the designs, plans or concepts of such projects, and installation costs might exceed estimated costs of completion.

***We might require substantial additional funding which might not be available to us on acceptable terms, or at all. If we fail to raise the necessary additional capital, we might be unable to execute our growth strategies.***

We plan to expand our American made module manufacturing and consumer roofing and solar installation business in the US and the distribution business in Australia. The expansions would require substantial amounts of cash to fund working capital. We will require additional capital for the further development and commercialization of our products and projects, as well as to fund our other operating expenses and capital expenditures. To carry out our business plan and implement our strategy, we anticipate that we will need to obtain additional financing from time to time and may choose to raise additional funds through strategic collaborations, public or private equity or debt financing, bank lines of credit, asset sales, government grants, or other arrangements. Any of these events could significantly harm our business, financial condition and prospects. We cannot be sure that any additional funding, when needed, will be available on terms favorable to us or at all. Any additional equity or equity-related financing might be dilutive to our stockholders, and debt or equity financing, if available, might subject us to restrictive covenants and significant interest costs. If we are unable to raise additional capital on acceptable terms, we might have to delay, reduce or discontinue our growth strategy.

***A material reduction in the retail price of electricity charged by electric utilities or other retail electricity providers would harm our business, financial condition and results of operations.***

Decreases in the retail price of electricity from electric utilities or from other retail electric providers, including other renewable energy sources such as larger-scale solar energy systems, could make our offerings less economically attractive. The price of electricity from utilities could decrease as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the construction of a significant number of new power generation plants, whether generated by natural
 gas, nuclear power, coal, or renewable energy technologies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the construction of additional electric transmission and distribution lines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a reduction in the price of natural gas or other natural resources as a result of increased supply
 due to new drilling techniques or other technological developments, relaxation of associated regulatory standards, or broader economic
 or policy developments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· less demand for electricity due to energy conservation technologies and public initiatives to reduce
 electricity consumption or to recessionary economic conditions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· development of competing energy technologies that provide less expensive energy.

A reduction in electric utilities' rates or changes to peak hour pricing policies or rate design (such as the adoption of a fixed or flat rate) could also make our offerings less competitive with the price of electricity from the electrical grid. If the cost of energy available from electric utilities or other providers were to decrease relative to solar energy generated from residential systems or if similar events impacting the economics of our offerings were to occur, we might have difficulty attracting new customers or existing customers might default or seek to terminate, cancel or otherwise avoid the obligations under their solar service agreements.

***Our ability to provide our solar product and service offerings to homeowners in the US on an economically viable basis depends in part on our ability to arrange financing for these systems. Failure to find partners to provide such financing to our consumers would pose a significant obstacle for us to sustain the US consumer business.***

We currently have only indirect partnership relationships with consumer financing providers, through a third-party platform. We are in the process of establishing direct relationships with several financing providers; however, we can give no assurance whether or when we can establish such relationships. Historically, there have been a limited number of investors that generate sufficient profits and possess the requisite financial sophistication to provide financing for solar energy systems for homeowners, and a lack of depth in this market might limit our ability to find partners which can provide financing for our consumers. Our larger competitors might be able far more readily than we to offer financing options to customers, including PPAs, pursuant to which solar energy systems are installed at little cost to the consumer.

Certain types of home solar energy system financing also depend on the existing tax regulatory environment. We are uncertain whether this type of financing will continue to be available to us, as the legal and regulatory landscape may shift in a manner that reduces or eliminates the attractiveness of such financing opportunities.

***We have limited insurance coverage in business operation, which may prevent us from obtaining insurance to cover all risks of losses, and could have an adverse effect on our results of operations.***

Our insurance policies cover employee-related accidents and injuries, property damage, machinery breakdowns, fixed assets, facilities and liability deriving from our activities, including environmental liability. We consider our current insurance coverage to be adequate, but we cannot assure you that our insurance will be sufficient or effective under all circumstances and against all hazards or liabilities to which we may be subject. Our insurance coverage is also subject to deductibles, caps, exclusions and other limitations. A loss for which we are not fully insured could have a material adverse effect on our business, financial condition, results of operations and cash flows. Because of rising insurance costs and changes in the insurance markets, we cannot assure you that our insurance coverage will continue to be available at comparable rates or on similar terms, if at all. We might also reduce or cancel our insurance coverage at any time, and might not be able to maintain or obtain insurance of the type and amount we desire at reasonable rates and we may elect to self-insure a portion of our solar project portfolio. Any losses not covered by insurance could have a material adverse effect on our business, financial condition, results of operations and cash flows.

***SJ Australia depends on a limited number of suppliers of solar energy system components. The acquisition of any of these suppliers by a competitor or any shortage, delay, price change, imposition of tariffs or duties or other limitation in our or our dealers' ability to obtain components or technologies that we use could result in sales and installation delays, cancellations and loss of customers.***

SJ Australia purchases solar modules, inverters, energy storage systems and other system components and instruments from a limited number of suppliers, making us susceptible to quality issues, shortages and price changes. If one or more of the suppliers that we and our dealers rely upon to meet anticipated demand ceases or reduces production due to its financial condition, acquisition by a competitor or otherwise, is unable to increase production as industry demand increases or is otherwise unable to allocate sufficient production to us and our dealers, it might be difficult to quickly identify alternative suppliers or to qualify alternative products on commercially reasonable terms and our ability and the ability of our dealers to satisfy this demand might be adversely affected.

We highlight the limited number of suppliers of inverters, which are components that convert electricity generated by solar modules into electricity that can be used to power the home. Once we design a system for use with a particular inverter, if that type of inverter is not readily available at an anticipated price, we might incur delays and additional expenses to redesign the system, and the inverters on our solar energy systems generally carry only ten-year warranties. If there is an inverter equipment shortage in a year when a substantial number of inverters on our systems need to be replaced, we might not be able to replace the inverters to maintain proper system functioning or might be forced to do so at higher than anticipated prices, either of which would adversely impact our business.

We also note the limited number of suppliers of batteries. Once we design a system for use with a particular battery, if that type of battery is not readily available from our supplier, we might incur delays and additional expenses to install the system or be forced to redesign the system.

***SJ America depends on a limited number of suppliers of solar energy system components. Due to the limited number of suppliers in our industry, the acquisition of any of these suppliers by a competitor or any shortage, delay, price change, imposition of tariffs or duties or other limitation in our or our dealers' ability to obtain components or technologies we use could result in sales and installation delays, cancellations and loss of customers.***

SJ America purchases solar modules, inverters, energy storage systems and other system components and instruments from a limited number of suppliers, making us susceptible to quality issues, shortages and price changes. Currently SJ America obtains solar energy components from distributors like Independent Electric Supply, or from manufacturers like SunPower, Enphase, or SolarX.

If one or more of the suppliers that SJ America relies upon to meet anticipated demand ceases or reduces production due to its financial condition, acquisition by a competitor or otherwise, is unable to increase production as industry demand increases or is otherwise unable to allocate sufficient production to us, it may be difficult to quickly identify alternative suppliers or to qualify alternative products on commercially reasonable terms and our ability and the ability of our dealers to satisfy this demand may be adversely affected.

If we fail to develop, maintain and expand our relationships with these or other suppliers, we may be unable to adequately meet anticipated demand for our solar service offerings, or we may only be able to offer our systems at higher costs or after delays. If one or more of the suppliers that we or our solar partners rely upon to meet anticipated demand ceases or reduces production, we may be unable to quickly identify alternate suppliers or to qualify alternative products on commercially reasonable terms, and we may be unable to satisfy this demand.

In particular, there is a limited number of suppliers of inverters, which are components that convert electricity generated by solar modules into electricity that can be used to power the home. For example, once we design a system for use with a particular inverter, if that type of inverter is not readily available at an anticipated price, we may incur delays and additional expenses to redesign the system. Further, the inverters on our solar energy systems generally carry only ten-year warranties. If there is an inverter equipment shortage in a year when a substantial number of inverters on our systems need to be replaced, we may not be able to replace the inverters to maintain proper system functioning or may be forced to do so at higher than anticipated prices, either of which would adversely impact our business.

Similarly, there is a limited number of suppliers of batteries. Once we design a system for use with a particular battery, if that type of battery is not readily available from our supplier, we may incur delays and additional expenses to install the system or be forced to redesign the system.

***Our continued success requires us to hire, train and retain qualified personnel and subcontractors in a competitive industry.***

The success of our business depends on our ability to attract, train and retain qualified, reliable personnel, including, but not limited to, our executive officers and key management personnel. We also rely on engineers, project management personnel, and other employees and qualified subcontractors who possess the necessary and required experience and expertise to perform their respective services at a reasonable and competitive rate. Competition for these and other experienced personnel is intense, and it might be difficult to attract and retain qualified individuals with the requisite expertise and within the time frame demanded by our customers. We might not be able to satisfy the demand for our services in certain regions because of our inability to successfully hire, train and retain qualified personnel, and we might find it difficult to replace personnel who hold credentials that might be required to perform certain government projects and/or who have significant government contract experience.

We note that the cost of providing our services, including the extent to which we utilize our workforce, affects our profitability. The uncertainty of contract award timing can present difficulties in matching our workforce size with our contracts, and should an expected contract award be delayed or not received, we could incur costs resulting from excess staff or redundancy of facilities that could have a material adverse impact on our business, financial condition and results of operations.

***If we are unable to attract, train and retain technical personnel, our business may be materially and adversely affected.***

Our future success depends, to a significant extent, on our ability to attract, train and retain technical personnel. Recruiting and retaining qualified technical personnel, particularly those with expertise in the solar power industry, is vital to our success. There is substantial competition for qualified technical personnel, and there can be no assurance that we will be able to attract or retain sufficient qualified technical personnel, and if we are unable to attract and retain qualified employees, our business might be materially and adversely affected.

Changes in general or local economic conditions and the resulting impact on the labor market and on our joint venture partners might make it difficult to attract or retain qualified individuals in the geographic areas where we perform our work, and if we are unable to provide competitive compensation packages, high-quality training programs and attractive work environments or to establish and maintain successful partnerships, our reputation, relationships and/or ability to profitably execute our work could be adversely impacted.

***Failure to maintain safe work sites could result in significant losses***.

Construction and maintenance sites are potentially dangerous workplaces and often put our employees and others in close proximity with mechanized equipment, moving vehicles, chemical and manufacturing processes, and highly regulated materials. We are often responsible for safety and must implement safety procedures. Should our safety procedures prove ineffective or incomplete, we might suffer injury to our employees, and expose the company to litigation. Our failure to maintain adequate safety standards through our safety programs could result in reduced profitability or the loss of projects or clients, and could have a material adverse impact on our financial position, results of operations, cash flows and liquidity.

***Failure of our subcontractors to perform as anticipated could have a negative impact on our results.***

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We subcontract portions of some of our contracts to specialty subcontractors, but we are ultimately responsible for the successful completion of their work. Although we seek to require bonding or other forms of guarantees, we are not always successful in obtaining those bonds or guarantees from our higher-risk subcontractors. We might be responsible for the failures on the part of our subcontractors to perform as anticipated, resulting in a potentially adverse impact on our cash flows and liquidity, and the total costs of a project could exceed our original estimates and we could experience reduced profits or a loss for that project, which could have an adverse impact on our financial position, results of operations, cash flows and liquidity.

***Our operations subject us to risks associated with currency fluctuations.***

A significant part of our revenue and profit is derived from our SJ Australia subsidiary. Our future international operations might subject us to further risks relating to currency fluctuations. Foreign currencies periodically experience rapid and/or large fluctuations in value against the US dollar. A weakened US dollar could increase the cost of procurement of raw materials, by our suppliers, from foreign jurisdictions and operating expenses in foreign locations, which could have a material adverse effect on our business and results of operations.

A significant portion of our products are provided by manufacturers who incur costs purchasing raw materials and generating operating expenses in foreign currencies. If the value of the US dollar depreciates against these other currencies significantly or for a prolonged period, those suppliers might raise the prices to us, which in turn could harm our business and results of operations. Although the value of the US dollar has been high relative to other currencies in recent periods, there is no guarantee that this trend will continue.

***SJ America is subject to risks associated with installations and other contingencies.***

SJ America installs roofing and solar energy system products and energy storage systems. We might be liable to our customers for any damage that we cause to buildings or other property during installations.

We might install the roofing products improperly, and causes water leaks, or we might penetrate our customers' roofs during the solar system installation process, and incur liability for the failure to adequately weatherproof such penetrations following the completion of installation of solar energy systems. Because our solar energy systems and energy storage systems are high-voltage energy systems, we might incur liability for our failure to comply with electrical standards and manufacturer recommendations, and prior to obtaining permission to operate our solar energy systems and energy storage systems, the systems must pass various inspections. Any delay in passing, or inability to pass, such inspections, would adversely affect our results of operations. Because our profit on a particular solar energy system and energy storage system, if applicable, is based in part on assumptions as to the ongoing cost of the related solar energy system and energy storage system, if applicable, cost overruns, delays or other execution issues might cause us to not achieve our expected results.

***SJ America is subject to risks associated with construction, regulatory compliance and other contingencies.***

SJ America's ability to market, design, construct and install roofing products, roof top solar energy systems and energy storage systems is dependent on its ability to obtain the required licenses to perform such installation. There is no guarantee that SJ America will be able to consistently apply for, obtain and maintain such licenses in all the jurisdictions that it operates, as well as other authorizations from various regulatory authorities and abide by their respective conditions and requirements. The marketing and installation of roofing, solar energy systems and energy storage systems is subject to oversight and regulation in accordance with national, state and local laws and ordinances relating to consumer protection, building, fire and electrical codes, professional codes, safety, environmental protection, utility interconnection and metering, and related matters. We also rely on certain of our dealers and third-party contractors to obtain and maintain permits and professional licenses, including as contractors. A failure by us to obtain necessary permits or encounter delays in obtaining or renewing such permits, or to use properly licensed employees or third party contractors could adversely affect our operations in those jurisdictions. We might also become subject to similar regulatory requirements in some jurisdictions in which we operate, and note that it is difficult and costly to track the requirements of every authority with jurisdiction over our operations. Regulatory authorities might impose new government regulations or utility policies, change existing government regulations or utility policies, might seek expansive interpretations of existing regulations or policies pertaining to our services or might initiate associated investigations or enforcement actions or impose penalties or reject our systems. Any of these factors might result in regulatory and/or civil litigation, significant additional expenses to us or our customers or cause delays in our ability to originate new sales, which could cause a significant reduction in demand for our services or otherwise adversely affect our business, financial condition and results of operations.

***Compliance with occupational safety and health requirements and best practices can be costly, and noncompliance with such requirements might result in potentially significant monetary penalties, operational delays and adverse publicity.***

The installation and ongoing operations and maintenance of roofing products or roof-top solar energy systems requires individuals hired by us or third-party contractors, including our employees, to work at heights with complicated and potentially dangerous electrical systems.

The evaluation and modification of buildings as part of the installation process requires these individuals to work in locations that may contain potentially dangerous levels of asbestos, lead, mold or other materials known or believed to be hazardous to human health. There is substantial risk of serious injury or death if proper safety procedures are not followed. Our operations are subject to regulation OSHA and equivalent state and local laws, and changes to OSHA requirements, or stricter interpretation or enforcement of existing laws or regulations, could result in increased costs. If we fail to comply with applicable OSHA, even if no work-related serious injury or death occurs, we might be subject to civil or criminal enforcement and be required to pay substantial penalties, incur significant capital expenditures or suspend or limit operations. Because individuals hired by us or on our behalf to perform installation and ongoing operations and maintenance of our solar energy systems and energy storage systems, including our dealers and third-party contractors, are compensated on a per project basis, they are incentivized to work more quickly than installers that are compensated on an hourly basis. While we have not experienced a high level of injuries to date, this incentive structure may result in higher injury rates than others in the industry and could accordingly expose us to increased liability. Individuals hired by or on behalf of us may have workplace accidents and receive citations from OSHA regulators for alleged safety violations, resulting in fines. Any such accidents, citations, violations, injuries or failure to comply with industry best practices may subject us to adverse publicity, damage our reputation and competitive position and adversely affect our business. A failure to comply with laws and regulations relating to interactions by us or our dealers with current or prospective residential customers could result in negative publicity, claims, investigations and litigation, and adversely affect our financial performance.

Our business substantially focuses on transactions with residential customers. We must comply with numerous federal, state and local laws and regulations that govern matters relating to interactions with residential consumers, including those pertaining to consumer protection, marketing and sales, privacy and data security, consumer financial and credit transactions, mortgages and refinancing, home improvement contracts, warranties and various means of customer solicitation. These laws and regulations are dynamic and subject to potentially differing interpretations, and various federal, state and local legislative and regulatory bodies may initiate investigations, expand current laws or regulations, or enact new laws and regulations, regarding these matters. Changes in these laws or regulations or their interpretation could dramatically affect how we and our dealers do business, acquire customers, and manage and use information collected from and about current and prospective customers and the costs associated therewith.

We strive to comply with all applicable laws and regulations relating to interactions with residential customers. It is possible, however, that these requirements might be interpreted and applied in a manner that is inconsistent from one jurisdiction to another and may conflict with other rules or our customary practices.

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***Damage to our brands and reputation, or change or loss of use of our brands, could harm our business and results of operations.***

We depend significantly on our reputation for high-quality products, excellent customer service and the brand names "Solar Juice," "Opal," "Solar4America," and "Roofs 4 America" to attract new customers and grow our business. If SJ Australia fails to continue to deliver solar and other energy components timely, or if SJ America damages any of our customers' properties or delays or cancels projects, our brand and reputation could be significantly impaired. Future technological improvements might allow us to offer lower prices or offer new technology to new customers; however, technical limitations in our current solar energy systems and energy storage systems might prevent us from offering such lower prices or new technology to our existing customers. The inability of our current customers to benefit from technological improvements could cause our existing customers to lower the value they perceive our existing products offer and impair our brand and reputation.

We note that given the sheer number of interactions our consumer business has with customers and potential customers, it is inevitable that some customer interactions with our company or dealers operating on our behalf will be perceived as less than satisfactory. These could lead to instances of customer complaints which could affect our ratings on websites and social media platforms, and if we cannot manage our hiring and training processes to avoid or minimize these issues to the extent possible, our reputation might be harmed and our ability to attract new customers would suffer.

***We face competition from traditional energy companies as well as solar and other renewable energy companies.***

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The solar energy industry is highly competitive and continually evolving, as participants strive to distinguish themselves within their markets and compete with large utilities. We believe that our competitors include established utilities that supply energy to homeowners by traditional means, and we compete with these utilities primarily based on price, predictability of price, and the ease by which homeowners can switch to electricity generated by our solar service offerings. If we cannot offer compelling value to customers based on these factors, then our business and revenue will not grow. We also compete with traditional installers who face similar challenges.

The production of solar energy depends heavily on suitable meteorological and environmental conditions. If meteorological or environmental conditions are unexpectedly unfavorable, the electricity production from our solar service offerings might be below our customers' expectations, reducing the attractiveness of our offerings compared with traditional energy suppliers.

We also face competition from other residential solar service providers. Many of these competitors have a higher degree of brand name recognition, differing business and pricing strategies, and greater capital resources than we have, as well as extensive knowledge of our target markets. If we are unable to establish or maintain a consumer brand that resonates with customers, maintain high customer satisfaction, or compete with the pricing offered by our competitors, our sales and market share position might be adversely affected, as our growth is dependent on originating new customers. We also face competitive pressure from companies that might offer lower-priced consumer offerings than we do.

We compete with companies that are not regulated like traditional utilities but that have access to the traditional utility electricity transmission and distribution infrastructure. These power service companies are able to offer customers electricity supply-only solutions that are competitive with our solar service offerings on both price and usage of solar energy technology, which might limit our ability to attract customers, particularly those who wish to avoid long-term contracts or have an aesthetic or other objection to putting solar modules on their roofs.

We also face competition from purely finance-driven nonintegrated competitors that subcontract out the installation of solar energy systems, from installation businesses (including solar partners) that seek financing from external parties, from large construction companies, and from electrical and other roofing companies. Local installers that might otherwise be viewed as potential solar partners might gain market share by being able to be the first providers in new local markets, and some of these competitors might provide energy at lower costs than we do. We also face competition from companies offering consumer loans for solar module products, since declining prices for solar modules and related equipment has resulted in an increase in consumers' purchasing, instead of leasing, solar energy systems.

As the solar industry grows and evolves, we will continue to face existing competitors as well as new competitors who are not currently in the market (including those resulting from the consolidation of existing competitors) that achieve significant developments in alternative technologies or new products such as storage solutions, loan products, or other programs related to third-party ownership. Our failure to adapt to changing market conditions, to compete successfully with existing or new competitors and to adopt new or enhanced technologies could limit our growth and have a material adverse effect on our business and prospects.

***A material drop in the retail price of utility-generated electricity or electricity from other sources could reduce the desirability of our solar power products, potentially our prospects.***

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Customer decisions to buy our solar energy systems are impacted by electricity costs. Decreases in the retail prices of electricity from utilities or other energy sources would harm our ability to offer competitive pricing and could harm our business. The price of electricity from utilities could decrease as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the construction of a significant number of new power generation plants, including nuclear, coal,
 natural gas or renewable energy technologies;

· the construction of additional electric transmission and distribution lines;

· reductions in prices of natural gas or other natural resources;

· energy conservation technologies and public initiatives to reduce electricity consumption;

· development of new energy technologies that provide less expensive energy, including storage; or

· utility rate adjustments and customer class cost reallocation.

A reduction in utility electricity prices would make the purchase of our solar service offerings less attractive, and if the retail price of energy available from utilities were to decrease due to any of these or other reasons, we would be at a competitive disadvantage, and we might be unable to attract new customers and our growth would be limited.

***Changes to net metering and related policies might significantly reduce demand for electricity from our solar service offerings.***

A substantial majority of states have adopted net metering policies, which are designed to allow homeowners to serve their own energy loads using on-site generation. Electricity that is generated by a solar energy system and consumed on-site avoids a retail energy purchase from the applicable utility, and excess electricity that is exported back to the electric grid generates a retail credit within a homeowner's monthly billing period. At the end of the monthly billing period, if the homeowner has generated excess electricity within that month, the homeowner typically carries forward a credit for any excess electricity to be offset against future utility energy purchases. At the end of an annual billing period or calendar year, utilities either continue to carry forward a credit, or reconcile the homeowner's final annual or calendar year bill using different rates (including zero credit) for the exported electricity.

Utilities, their trade associations, and fossil fuel interests in the country are currently challenging net metering policies, and seeking to eliminate them, cap them, reduce the value of the credit provided to homeowners for excess generation, or impose charges on homeowners that have net metering.

California's Public Utilities Commission ("CPUC") has made changes to rate design for solar customers, such as adopting "time of use" rates with different electricity prices during peak and off peak hours, as well as modifications to the minimum bill for solar customers. The CPUC is revisiting its net metering policy in a proceeding that began in the third quarter of 2020 and is expected to conclude near the end of 2021 and not take effect until sometime in 2022. The California investor-owned utilities, along with other parties, are seeking to reduce the level of compensation for customer-owned generation and to impose grid access fees on solar customers. Similarly, certain California municipal utilities, which are not regulated by the CPUC and would not be governed by the CPUC's net metering policy, have also announced they plan to review their net metering policies.

***Electric utility statutes and regulations and changes to such statutes or regulations might present technical, regulatory and economic barriers to the purchase and use of our solar service offerings that may significantly reduce demand for such offerings.***

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Federal, state and local government statutes and regulations concerning electricity heavily influence the market for our solar service offerings and are constantly evolving. These statutes, regulations, and administrative rulings relate to electricity pricing, net metering, consumer protection, incentives, taxation, competition with utilities, and the interconnection of homeowner-owned and third party-owned solar energy systems to the electrical grid. Governments, often acting through state utility or public service commissions, change and adopt different rates for residential customers on a regular basis and these changes can have a negative impact on our ability to deliver savings, or energy bill management, to customers.

Many utilities, their trade associations, and fossil fuel interests, which have significantly greater economic, technical, operational, and political resources than the residential solar industry, are currently challenging solar-related policies to reduce the competitiveness of residential solar energy. Any adverse changes in solar-related policies could have a negative impact on our business and prospects.

***Regulations and policies related to rate design could deter potential customers from purchasing our solar service offerings, reduce the value of the electricity our systems produce, and reduce any savings that our customers could realize from our solar service offerings.***

All states regulate investor-owned utility retail electricity pricing, and there are numerous publicly owned utilities and electric cooperatives that establish their own retail electricity pricing through some form of regulation or internal process. These regulations and policies could deter potential customers from purchasing our solar service offerings. California, our primary state of operations, has one of the most aggressive rate design pricing regimes, which includes high electricity rates and incentives for consumers to transition to solar energy and other types of renewable energy. Texas is another state in which we operate, and in contrast has electricity pricing which is much lower than the national average, as its policy emphasizes cheaper power rather than green energy incentives. Nevada is a third state in which we operate, and has an electricity rate regime more similar to that of Texas than California. Utilities in still other states such as Arizona and Utah have sought and secured rate design changes that reduce credit for residential solar exports to below the retail rate and impose new charges for rooftop solar customers, and other state utilities might follow suit. Such rate changes can include changing rates to charge lower volume-based rates—the rates charged for kilowatt hours of electricity purchased by a residential customer—while raising unavoidable fixed charges that homeowners are subject to when they purchase solar energy from third parties and levying charges on homeowners based on their point of maximum demand during a month (referred to as "demand charge"). Such forms of rate design could adversely impact our business by reducing the value of the electricity our solar energy systems produce compared to retail net metering, and reducing any savings customers realize by purchasing our solar service offerings. In addition to changes in general electricity rates charged to all residential customers, utilities are increasingly seeking solar-specific charges (which may be fixed charges, capacity-based charges, or other rate charges). Any of these changes could materially reduce the demand for our offerings and could limit the number of markets in which our offerings are competitive with electricity provided by the utilities.

***Interconnection limits or circuit-level caps imposed by regulators might significantly reduce our ability to sell our solar service offerings in certain markets or slow interconnections.***

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Interconnection rules establish the circumstances in which rooftop solar will be connected to the electricity grid, and interconnection limits or circuit-level caps imposed by regulators may curb our growth in key markets. Utilities throughout the country have different rules and regulations regarding interconnection and some utilities cap or limit the amount of solar energy that can be interconnected to the grid. Our systems do not provide power to customers until they are interconnected to the grid.

Interconnection regulations are based on claims from utilities regarding the amount of solar energy that can be connected to the grid without causing grid reliability issues or requiring significant grid upgrades. Some states require the activation of some advanced inverter functionality to head off presumed grid reliability issues, which might require more expensive equipment and more oversight of the operation of the solar energy systems over time. Such regulations might hamper our ability to sell our offerings in certain markets and increase our costs, adversely affecting our business, operating results, financial condition, and prospects. These advanced functions will become more commonplace as regions start to require 1547-2018 inverters, with activation of some advanced functions starting January 2022 in Colorado and elsewhere.

***We might not be able to obtain sufficient raw materials in a timely manner or on commercially reasonable terms, which could have a material adverse effect on our results of operations and financial condition.***

Although the global supply of polysilicon has increased significantly, we might experience interruption to our supply of silicon or other raw materials or late delivery in the future for the following reasons, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· suppliers under
 our raw materials supply contracts might delay deliveries for a significant period of time
 without incurring penalties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· our virgin polysilicon
 suppliers might not be able to meet our production needs consistently or on a timely basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· compared with
 us, some of our competitors who also purchase virgin polysilicon from our suppliers have
 longer and stronger relationships with and have greater buying power and bargaining leverage
 over some of our key suppliers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· our supply of
 silicon or other raw materials is subject to the business risk of our suppliers, some of
 whom have limited operating history and limited financial resources, any one or more of which
 could go out of business for reasons beyond our control.

Our failure to obtain the required amounts of silicon raw materials and other raw materials, such as glass, in a timely manner and on commercially reasonable terms could increase our manufacturing costs and substantially limit our ability to meet our contractual obligations to our customers. Any failure by us to meet such obligations could have a material adverse effect on our reputation, ability to retain customers, market share, business and results of operations and may subject us to claims from our customers and other disputes. Our failure to obtain sufficient silicon and other raw materials would result in under-utilization of our production facilities and an increase in our marginal production costs, and any of the above events could have a material adverse effect on our growth, profitability and results of operations.

***Technological changes in the solar power industry could render our products uncompetitive or obsolete, which could reduce our market share and cause our revenue and net income to decline.***

The solar power industry is characterized by evolving technologies and standards, which developments place increasing demands on the improvement of our products, such as solar cells with higher conversion efficiency and larger and thinner silicon wafers and solar cells. Other companies may develop production technologies that enable them to produce silicon wafers, solar cells and solar modules with higher conversion efficiencies at a lower cost than our products. Some of our competitors are developing alternative and competing solar technologies that might require significantly less silicon than crystalline silicon wafers and solar cells, or no silicon at all. Technologies developed or adopted by others may prove more advantageous than ours for commercialization of solar power products and may render our products obsolete. We might need to invest significant resources in research and development to maintain our market position, to keep pace with technological advances in the solar power industry, and effectively compete in the future. Our failure to further refine and enhance our products and processes or to keep pace with evolving technologies and industry standards could cause our products to become uncompetitive or obsolete, which could materially adversely reduce our market share and affect our results of operations.

***We might face termination and late charges and risks relating to the termination and amendment of certain equipment purchases contracts.***

We transact with a limited number of equipment suppliers for all our principal manufacturing equipment and spare parts, including our silicon ingot furnaces, squaring machines, wire saws, diffusion furnaces, firing furnaces and screen print machine. We rely on certain major suppliers to provide a substantial portion of the principal manufacturing equipment and spare parts as part of our expansion plan in the future. If we fail to develop or maintain our relationships with these and other equipment suppliers or should any of our major equipment suppliers encounter difficulties in the manufacturing or shipment of its equipment or spare parts to us, including due to natural disasters or otherwise fail to supply equipment or spare parts according to our requirements, it will be difficult for us to find alternative providers for such equipment on a timely basis and on commercially reasonable terms. As a result, our production and result of operation could be adversely affected.

***Failure to achieve satisfactory production volumes of our solar module products could result in higher unit production costs.***

The production of solar modules involves complex processes. Deviations in the manufacturing process can cause a substantial decrease in output and, in some cases, disrupt production significantly or result in no output. From time to time, we have experienced lower-than-anticipated manufacturing output during the ramp-up of production lines, which can occur during the introduction of new products, the installation of new equipment or the implementation of new process technologies. As we bring additional lines or facilities into production, we might operate at less than intended capacity during the ramp-up period, and the demand in global solar power product markets might decrease, including the demand for solar modules, which could cause us to operate at less than intended capacity, and result in higher marginal production costs and lower output, which could have a material adverse effect on our business, financial condition and results of operations.

***Demand for solar power products may be adversely affected by seasonality.***

Demand for solar power products tends to be weaker during the winter months partly due to adverse weather conditions in certain regions, which complicates the installation of solar power systems, and our operating results might fluctuate from period to period based on the seasonality of industry demand for solar power products, which, might result in the underutilization of our capacity and increase our average costs per unit. We might also not be able to capture all of the available demand if our capacity is insufficient during the summer months, and fluctuations in the demand for our products might have a material adverse effect on our business, financial condition and results of operations.

***Performance shortcomings in our products might cause us to incur additional expenses and warranty costs, damage our reputation and cause our sales to decline.***

Our products might contain defects that are not detected until after they are shipped or inspected by our customers.

Our solar modules are typically sold with a 10-year warranty for material and workmanship and a 25-year (30-year for dual glass module) linear power output warranty against the maximum degradation of the actual power output for each year after the warranty start date, and if a solar module is defective during the relevant warranty period, we will either repair or replace the solar module. As we continue to increase our sales to the major export markets, we might be exposed to increased warranty claims.

Product defects could cause significant damage to our market reputation and reduce our product sales and market share, and our failure to maintain the consistency and quality throughout our production process could result in substandard quality or performance of our products. If we deliver our products with defects, or if there is a perception that our products are of substandard quality, we might incur substantially increased costs associated with returns or replacements of our products, our credibility and market reputation could be harmed and our sales and market share may be materially adversely affected.

***Our lack of sufficient patent protection in and outside of US might undermine our competitive position and subject us to intellectual property disputes with third parties, both of which might have a material adverse effect on our business, results of operations and financial condition.***

We have developed various production process related know-how and technologies, which have a critical role in our quality assurance and cost reduction. We have also implemented our research and development programs to develop techniques and processes that will improve production efficiency and product quality. Our intellectual property and proprietary rights from our research and development programs will be crucial in maintaining our competitive edge in the solar power industry. As of the date of this prospectus, we have two patents and two other pending patent applications in the US Our patents' validity is generally ten years, and we plan to sustain protection for our intellectual property and proprietary knowledge with patents and otherwise, but cannot assure you that we will be successful in obtaining patents in the US in a timely manner or at all. We also use contractual arrangements with employees and trade secret protections to protect our intellectual property and proprietary rights, but contractual arrangements afford only limited protection and the actions we might take to protect our intellectual property and proprietary rights might not be adequate.

Other parties might obtain knowledge of our know-how and technologies through independent development, and our inability to protect our production process, related know-how and technologies, our intellectual property and proprietary rights or any combination of the above might undermine our competitive position. Third parties may infringe upon or misappropriate our proprietary technologies or other intellectual property and proprietary rights. Policing unauthorized use of proprietary technology can be difficult and expensive, and litigation can be costly and diverts management attention and other resources away from our business, but might be necessary to enforce our intellectual property rights, protect our trade secrets or determine the validity and scope of our proprietary rights. We cannot assure you that we will prevail in any potential litigation, and an adverse determination might impair our intellectual property and proprietary rights and harm our business, prospects and reputation.

***Compliance with environmentally safe production and construction and renewable energy development regulations can be costly, while non-compliance with such regulations might result in adverse publicity and potentially significant monetary damages, fines and suspension of our business operations.***

In connection with SJ Technology's solar module assembly business, we are required to comply with all national and local environmental protection regulations for our operations in the United States, and some of our subsidiaries must obtain and maintain pollution discharge permits or registrations, or are in the process of application for such permits and registrations, which are subject to application, renewal or extension on an annual basis or within a longer period. We cannot assure you that we are or will be able to successfully obtain, renew or extend these permits in a timely manner or at all.

SJ Technology, uses, stores and generates volatile and otherwise dangerous chemicals and wastes during our manufacturing processes, and is subject to a variety of government regulations related to the use, storage and disposal of such hazardous chemicals and waste. We are also required to obtain construction permits before commencing constructing production facilities. Although we will try to take measures to prevent environmental incidents from occurring in the future, we cannot assure you that our operations will not be disrupted by the environmental incidents. We note that the relevant authorities might issue more stringent environmental protection, safety production and construction regulations that might impact our domestic manufacturing facilities, and the costs of compliance with new regulations could be substantial. If we fail to comply with the future environmentally safe production and construction laws and regulations, we might be required to pay fines, suspend construction or production, or cease operations, and any failure by us to properly manage the discharge of dangerous substances could subject us to potentially significant monetary damages and fines or the suspension of our business operations.

***The COVID-19 pandemic has resulted in a widespread health crisis that has adversely affected the economies and financial markets worldwide. Government efforts to contain the spread of the coronavirus including lockdowns of cities, business closures, restrictions on travel and emergency quarantines, and responses by businesses and individuals to reduce the risk of exposure to infection, including reduced travel, cancellation of meetings and events, and implementation of work-at-home policies, have caused significant disruptions to the global economy and normal business operations. Our results might be significantly impacted by continuous or new lockdowns or similar policies adopted by the jurisdictions in which we operate.***

Our operating results substantially depend on revenues derived from SJ Australia's trading of PV components and SJ America's solar and roofing product installation activities. The measures implemented to curb the spread of the virus have resulted in supply chain disruptions, insufficient work force and suspended manufacturing and construction works for solar industry as COVID-19 has persisted. One or more of our customers, partners, service providers or suppliers might experience financial distress, delays or defaults on payment, file for bankruptcy protection, suffer diminished business, or business disruptions in their business. The efforts enacted to control COVID-19 have placed heavy pressure on our operations, marketing and sales activities. We continue to assess the related risks and impacts that the COVID-19 pandemic might have on our business and financial performance. Until such time as the COVID-19 pandemic is contained or eradicated and global business return to more customary levels, our business and financial results might be materially adversely affected.

***Implication of the Holding Foreign Companies Accountable Act***

The Holding Foreign Companies Accountable Act, (the "HFCAA"), was enacted on December 18, 2020. The HFCA Act states that if the United States Securities and Exchange Commission (the "SEC") determines that an issuer's audit reports issued by a registered public accounting firm have not been subject to inspection by the Public Company Accounting Oversight Board (United States) ("PCAOB") for three consecutive years beginning in 2021, the SEC shall prohibit such issuer's securities from being traded on a national securities exchange or in the over-the-counter trading market in the United States. Therefore, the Company's securities may be delisted from a national securities exchange in the US pursuant to the HFCA Act. Under certain pending legislation the time period leading up to a prohibition on trading may be shortened. A termination in the trading our of securities or any restriction on the trading in our securities would be expected to have a negative impact on the Company as well as on the value of our securities. While the Company's auditor is based in the United States and is registered with PCAOB and subject to PCAOB inspection, in the event it is later determined that the PCAOB is unable to inspect or investigate completely the Company's auditor because of a position taken by an authority in a foreign jurisdiction, then such lack of inspection could cause trading in the Company's securities to be prohibited under the Holding Foreign Companies Accountable Act, and ultimately result in a determination by a securities exchange to delist the Company's securities.

Any of these actions, or uncertainties in the market about the possibility of such actions, could adversely affect our prospects to successfully complete a business combination with a China-based company, our access to the U.S. capital markets and the price of our shares.

Other developments in U.S. laws and regulatory environment, including but not limited to executive orders such as Executive Order (E.O.) 13959, "Addressing the Threat from Securities Investments That Finance Communist Chinese Military Companies," may further restrict our ability to complete a business combination with certain China-based businesses.

***Invasion of Ukraine could disrupt our delivery and operations, which could materially and adversely affect our business, financial condition, and results of operations.***

On February 24, 2022, the Russian Federation launched an invasion of Ukraine that has had an immediate impact on the global economy resulting in higher energy prices and higher prices for certain raw materials and goods and services which in turn is contributing to higher inflation in the United States and other countries across the globe with significant disruption to financial markets. We do not have any operations or business in Russia or Ukraine, however, we may be potentially indirectly adversely impacted any significant disruption it has caused and may continue to escalate. In addition, the United States and other countries have imposed sanctions on Russia which increases the risk that Russia may resort to retaliatory actions, including the launching of cyberattacks. It is possible that these attacks could have collateral effects on additional critical infrastructure and financial institutions globally, which could adversely affect our operations. It is difficult to assess the likelihood of such threat and any potential impact at this time. Any one or more of these events may impede our operation and delivery efforts and adversely affect our sales results, or even for a prolonged period of time, which could materially and adversely affect our business, financial condition, and results of operations.

***Significant losses raise concerns about the Company's ability to continue as a going concern.***

The Company has incurred significant losses and needs to raise additional funds to sustain its operations. As a result of these conditions, our auditor's opinion on our December 31, 2021 financial statements include an explanatory paragraph in respect to there being substantial doubt about our ability to continue as a going concern. As disclosed in Note 3 Going concern to the Company's unaudited condensed consolidated interim financial statements, The Company has incurred a net loss of $0.6 million during the six months ended June 30, 2022. The cash flow used in the operation activities for the six months ended June 30, 2022 was $4.3 million, the accumulated deficit as of June 30, 2022 was $31.8 million and working capital deficit as of June 30, 2022 was $1.1 million. These conditions raise substantial doubt about the Company's ability to continue as a going concern. While management believes that its plans will be adequate to allow the Company to meet its liquidity and cash flow requirements within one year after September 16, 2022, the date that the condensed consolidated interim financial statements were issued, there is no assurance that the plans will be successfully implemented. If the Company fails to achieve these goals, the Company may need additional financing to repay debt obligations and execute its business plan, and the Company may not be able to obtain the necessary additional capital on a timely basis, on acceptable terms, or at all. The inclusion of a going concern explanatory paragraph may negatively impact the trading price of our ordinary shares, have an adverse impact on our relationship with third parties with whom we do business, including our customers, vendors and employees, and could make it challenging and difficult for us to raise additional debt or equity financing to the extent needed, all of which could have a material adverse impact on our business, results of operations, financial condition and prospects.

The company expects to begin generating operating cash flow from its solar module assembly facility in California in Q4 2022, which operating cash flow we expect will further increase throughout 2023 and beyond as our McClellan Park facility progresses toward full capacity and its goal of producing an aggregate number of solar modules capable of generating 1.1 GW of electricity. We further plan to replicate the McClellan Park operation at one or more other locations in the United States over the next few years. In the short term can access capital from our parent company SPI Energy, and from certain of our officers and directors, and have done so in the recent past to fund what we believe is a compelling opportunity to be a pioneer and leader in the "Made in America" solar module industry. The Company has also had discussions with third parties regarding both debt financing and equity capital financing for the Company to help fund our solar module manufacturing business and other operations, especially during the current period in which we are scaling up solar module production toward the stated 1.1GW goal.

**RISKS RELATING TO OUR ORDINARY SHARES AND THIS OFFERING**

***There has been no prior public market for our ordinary shares, and an active, liquid and orderly trading market for our ordinary shares might not develop or be maintained in the United States, which could limit your ability to sell our ordinary shares.***

There has been no public market for our ordinary shares in the United States. Although we have applied to list our ordinary shares on the Nasdaq Capital Market, an active US public market for our ordinary shares might not develop or be sustained after this offering, and if an active market does not develop, you might experience difficulty selling the ordinary shares that you purchase in this offering.

***Our ordinary share price might be volatile after this offering and, as a result, you could lose a significant portion or all of your investment.***

The market price of the ordinary shares on the Nasdaq Capital Market might fluctuate after listing as a result of several factors, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· variations in our operating results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· changes in financial estimates by securities analysts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· announcements made by us or our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the depth and liquidity of the market for our shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· additions to or departures of, our executive officers and other members
 of our senior management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· release or expiration of lock-up or other transfer restrictions on
 our shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· sales or anticipated sales of additional shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the general economy and other factors.

The stock markets often experience significant price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many companies. These fluctuations often have been unrelated or disproportionate to the operating performance of those companies, and in combination with general economic, political and market conditions such as recessions or interest rate changes might cause the market price of our ordinary shares to decline.

 ***The trading price of our ordinary shares following this offering may be subject to rapid and substantial price volatility that may be unrelated to our actual or expected operating performance and financial condition or prospects, making it difficult for prospective investors to assess the rapidly changing value of our ordinary shares.***

The trading price of our ordinary shares following this offering may be subject to rapid and substantial price volatility that may be unrelated to our actual or expected operating performance and financial condition or prospects, making it difficult for prospective investors to assess the rapidly changing value of our ordinary shares. Our ordinary shares may trade at prices higher or lower than the offering price. There have been recent instances of extreme share price run-ups followed by rapid price declines following initial public offerings, with share price volatility seemingly unrelated to company performance, particularly among companies with relatively smaller public floats, and we expect that such instances may continue and/or increase in the future. Contributing to this risk of volatility are a number of factors. First, we anticipate our ordinary shares will initially be held by a relatively limited number of shareholders and thus, are likely to be more sporadically and thinly traded than that of larger, more established companies. As a consequence of this lack of liquidity, the trading of relatively small quantities of shares by our shareholders may disproportionately influence the price of those shares in either direction. The price of our ordinary shares could, for example, decline precipitously in the event that a large number of our shares are sold on the market without commensurate demand as compared to a seasoned issuer that could better absorb those sales without adverse impact on its share price. Second, we are a speculative investment due to our limited operating history in our current business strategy, not being profitable, and being an early stage company with no guarantee that we can operate our business profitably. As a consequence of this enhanced risk, more risk-adverse investors may, under the fear of losing all or most of their investment in the event of negative news or lack of progress, be more inclined to sell their shares on the market more quickly and at greater discounts than would be the case with the shares of a larger, more established company that has a relatively large public float.

Many of these factors are beyond our control and may decrease the market price of our ordinary shares. Such volatility, including any stock run-ups, may be unrelated or disproportionate to our actual or expected operating performance and financial condition or prospects, making it difficult for prospective investors to assess the rapidly changing value of our ordinary shares. Accordingly, you could lose all or part of your investment.

***As a foreign private issuer, we are subject to different US securities laws and the Nasdaq Capital Market governance standards than domestic US issuers. This might afford less protection to holders of our ordinary shares, and you might not receive corporate and company information and disclosures in the timing and manner that you are accustomed to receiving.***

As a "foreign private issuer" for US securities laws purposes, the rules governing the information that we will be required to disclose differ materially from those governing US corporations pursuant to the Exchange Act. The periodic disclosure required of foreign private issuers is more limited than that required of domestic US issuers and there might therefore be less publicly available information about us than is regularly published by or about US public companies For example, we will not be required to file quarterly reports on Form 10-Q or provide current reports on Form 8-K disclosing significant events within four days of their occurrence and our quarterly (should we provide them) or current reports may contain less or different information than required under US filings. In addition, as a foreign private issuer, we will be exempt from the proxy rules under Section 14 of the Exchange Act, and proxy statements that we distribute will not be subject to review by the SEC. Our exemption from Section 16 rules under the Exchange Act regarding sales of ordinary shares by our insiders means that you will have less data in this regard than shareholders of US companies that are subject to the Exchange Act. As a result, you may not have all the data that you are accustomed to having when making investment decisions. Also, our officers, directors and principal shareholder are exempt from the reporting and "short-swing" profit recovery provisions of Section 16 of the Exchange Act and the rules thereunder with respect to their purchases and sales of our ordinary shares.

As a foreign private issuer, we will be exempt from complying with certain corporate governance requirements of the Nasdaq Stock Market applicable to a US issuer, including the requirement that a majority of our board of directors consist of independent directors, and as an exempted company incorporated in the Cayman Islands, we are permitted to adopt certain home country practices in relation to corporate governance matters that differ significantly from the Nasdaq Stock Market corporate governance listing standards. Because the corporate governance standards applicable to us are different than those applicable to domestic US issuers, you might not have the same protections afforded under US law and the Nasdaq Stock Market as shareholders of companies that do not have such exemptions.

 ****

***We might lose our foreign private issuer status in the future, which could result in significant additional costs and expenses.***

We could cease to be a foreign private issuer if a majority of our outstanding voting securities are directly or indirectly held of record by US residents and we fail to meet additional requirements necessary to avoid loss of foreign private issuer status. The regulatory and compliance costs to us under US securities laws as a US domestic issuer might be significantly higher than costs we incur as a foreign private issuer, which could have a material adverse effect on our business and financial results.

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***Sales of a substantial number of our ordinary shares in the public market by our existing shareholder could cause our share price to fall.***

Sales of a substantial number of our ordinary shares in the public market, or the perception that these sales might occur, could depress the market price of our ordinary shares and could impair our ability to raise capital through the sale of additional equity securities. We are unable to predict the effect that sales may have on the prevailing market price of our ordinary shares. All of the ordinary shares owned by our existing shareholder are subject to lock-up agreements with the underwriters of this offering that restrict the shareholder's ability to transfer our ordinary shares for at least twelve months from the date of this prospectus. Substantially all of our outstanding ordinary shares will become eligible for unrestricted sale upon expiration of the lock-up period, as described in the section of this prospectus entitled "Shares Eligible for Future Sale." In addition, ordinary shares issued or issuable upon exercise of options and warrants vested as of the expiration of the lock-up period will be eligible for sale at that time. Sales of ordinary shares by these shareholders could have a material adverse effect on the trading price of our ordinary shares.

***If you purchase our ordinary shares in this offering, you will incur immediate and substantial dilution in the book value of your shares.***

 

The initial public offering price is substantially higher than the net tangible book value per share of our ordinary shares. Investors purchasing ordinary shares in this offering will pay a price per share that substantially exceeds the net tangible book value of our ordinary shares. As a result, investors purchasing ordinary shares in this offering will incur immediate dilution of $7.17 per share, based on the initial public offering price of $8.00 per share (the midpoint of the price range set forth on the cover page of this prospectus) and our net tangible book value as of June 30, 2022. As a result of this dilution, investors purchasing shares in this offering might receive significantly less than the purchase price paid in this offering in the event of liquidation. For more information, please refer to the section of this prospectus entitled "Dilution."

***Future issuance of additional ordinary shares could cause dilution of ownership interests and adversely affect our stock price.***

We may choose to raise additional capital due to market conditions or strategic considerations even if we believe we have sufficient funds for our current or future operating plans. To the extent that additional capital is raised through the sale of equity or convertible debt securities, the issuance of these securities could result in further dilution to our stockholders or result in downward pressure on the price of our ordinary shares

 ****

***Shares eligible for future sale may depress our stock price.***

As of the date of this prospectus, there were 25,000,000 ordinary shares outstanding. Sales of ordinary shares under Rule 144 or another exemption under the Securities Act or pursuant to a registration statement could have a material adverse effect on the price of the ordinary shares and could impair our ability to raise additional capital through the sale of equity securities.

 ****

***We might issue preferred shares with greater rights than our ordinary shares.***

As of the date of this prospectus, there were no preferred shares outstanding. Our articles of association authorize our board of directors to issue one or more series of preferred shares and set the terms of the preferred shares without seeking any further approval from our shareholders. Any preferred shares we may issue might rank ahead of our ordinary shares, in terms of dividends, liquidation rights and voting rights.

***SPI Energy Co., Ltd. ("SPI"), our controlling shareholder, engages in a variety of businesses, which might not be aligned with the interests of our other shareholders.***

SolarJuice Co., Ltd is 100% owned by SPI, and, immediately following this offering, SPI will continue to own a majority of our outstanding shares. SPI will have significant influence over our business and affairs, including in electing our board of directors, decisions in respect of mergers or other business combinations, acquisition or disposition of assets, issuance of additional shares or other equity securities, timing and amount of dividend payments, and our management. Without SPI's consent, we could be prevented from entering into transactions that could be beneficial to us. This concentration of ownership may also discourage, delay, or prevent a change in control of our Company, which could deprive our shareholders of an opportunity to receive a premium for the shares as part of a sale of our Company and may significantly reduce the price of our shares.

***Our Chairman of the Board of Directors and our Chief Executive Officer will allocate their time to other businesses, thereby causing potential conflicts of interest in their determinations as to how much time to devote to our affairs. These conflicts of interest could have a negative impact on our business operations and our ability to complete this offering.***

In addition to their positions at the Company, Mr. Xiaofeng Denton Peng, our Chairman of Board of Directors, will continue to serve as chief executive officer, a director and executive chairman of the board of directors of our parent company, SPI Energy Co., Ltd. ("SPI"), and Mr. Hoong Khoeng Cheong, our Chief Executive Officer, will continue to serve as a director and chief operating officer of SPI, which may result in conflicts of interest in allocating their time between our operations and SPI's operations. If SPI's business affairs require Mr. Peng and/or Mr. Cheong to devote substantial amounts of time to such affairs in excess of their current commitment levels, their ability to devote time to our affairs could be impaired, which may negatively impact our business operations and our ability to complete this offering. The business of the Company accounts for more than 90% of SPI's revenue. Messrs. Peng and Cheong have devoted a substantial amount of time on Company business. SPI, as the majority shareholder of the Company, has a high degree of alignment of interest with the Company, and the residential and small commercial business of the Company does not conflict with the other businesses of SPI.

***We are a "controlled company" within the meaning of the Nasdaq Stock Market Rules and, as a result, may rely on exemptions from certain corporate governance requirements that provide protection to shareholders of other companies.***

 ****

We are, and, upon completion of this offering, we will continue to be a "controlled company," as defined under the Nasdaq Stock Market rules, because SPI holds, and will continue to own, more than 50% of our voting power. For as long as we remain a controlled company under that definition, we are permitted to elect to rely, and may rely, on certain exemptions from the obligation to comply with certain corporate governance requirements, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the requirement that our director nominees must be selected or recommended
 solely by independent directors; and

· the requirement that we have a corporate governance and nominating
 committee, composed entirely of independent directors, with a written charter addressing the committee's purpose and responsibilities.

As a result, you will not have the same protections afforded to shareholders of companies that are subject to all of the corporate governance requirements of the Nasdaq Stock Market rules, if we use these exemptions. We currently intend to not rely on the controlled company exemptions.

***We will have discretion in applying a portion of the net proceeds of this offering and may not use these proceeds in ways that will enhance the market value of our ordinary shares.***

Our management will have considerable discretion in the application of the proceeds received by us from this offering. We intend to use the net proceeds of this offering for working capital and general corporate purposes. You will not have the opportunity, as part of your investment decision, to assess whether the proceeds are being used appropriately, and must rely on the judgment of our management regarding the application of the net proceeds of this offering. The net proceeds may be used for corporate purposes that do not improve our profitability or increase our share price. The net proceeds from this offering may also be placed in investments that do not produce income or that lose value. Future issuances of capital stock may depress the trading price of our ordinary shares. Any issuance of our ordinary shares after this offering could dilute the interests of our existing stockholders and could substantially decrease the trading price of our ordinary shares. We may issue additional ordinary shares in the future for a number of reasons, including to finance our operations and business strategy (including in connection with acquisitions, strategic collaborations or other transactions).

Sales of a substantial number of our ordinary shares in the public market could depress the market price of our ordinary shares, and impair our ability to raise capital through the sale of additional equity securities. We cannot predict the effect that future sales of our ordinary shares or other equity-related securities would have on the market price of our ordinary shares.

***If securities or industry analysts do not publish or cease publishing research reports about us, if they adversely change their recommendations regarding our ordinary shares or if our operating results do not meet their expectations, the price of our ordinary shares could decline.***

The trading market for our ordinary shares will be influenced by the research and reports that industry or securities analysts may publish about us, our business, our market or our competitors. Securities and industry analysts currently publish limited research on us. If there is limited or no securities or industry analyst coverage of our company, the market price and trading volume of our ordinary shares would likely be negatively impacted. Moreover, if any of the analysts who may cover us downgrade our ordinary shares, provide more favorable relative recommendations about our competitors or if our operating results or prospects do not meet their expectations, the market price of our ordinary shares could decline. If any of the analysts who may cover us were to cease coverage or fail to regularly publish reports on us, we could lose visibility in the financial markets, which in turn could cause our share price or trading volume to decline.

***As an "emerging growth company" under the JOBS Act, we are allowed to postpone the date by which we must comply with some of the laws and regulations intended to protect investors and to reduce the amount of information we provide in our reports filed with the SEC, which could undermine investor confidence in our company and adversely affect the market price of our ordinary shares.***

For so long as we remain an "emerging growth company" as defined in the JOBS Act, we intend to take advantage of certain exemptions from various requirements that are applicable to public companies that are not "emerging growth companies" including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· being permitted to provide only two years of audited financial statements,
 in addition to any required unaudited interim financial statements, with correspondingly reduced "Management's Discussion
 and Analysis of Financial Condition and Results of Operations" disclosure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· not being required to comply with the auditor attestation requirements
 for the assessment of our internal control over financial reporting provided by Section 404 of the Sarbanes-Oxley Act of 2002;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· not being required to comply with any requirements adopted by the Public
 Company Accounting Oversight Board requiring mandatory audit firm rotation or a supplement to the auditor's report in which
 the auditor would be required to provide additional information about the audit and our financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· reduced disclosure obligations regarding executive compensation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· not being required to hold a nonbinding advisory vote on executive
 compensation or seek shareholder approval of any golden parachute payments not previously approved.

We intend to take advantage of these exemptions until we are no longer an "emerging growth company." We will remain an emerging growth company until the earlier of: (1) the last day of the fiscal year (a) following the fifth anniversary of the completion of this offering, (b) in which we have total annual gross revenue of at least $1.07 billion, or (c) in which we are deemed to be a large accelerated filer, which means the market value of our ordinary shares that is held by non-affiliates exceeds $700 million as of the prior June 30, and (2) the date on which we have issued more than $1 billion in non-convertible debt during the prior three-year period.

 ****

***We will incur significantly increased costs as a result of becoming a public company in the United States.***

As a public company in the United States, we will incur significant legal, accounting, insurance and other expenses that we have not previously incurred, including costs associated with US public company reporting requirements. We also have incurred and will incur costs associated with the Sarbanes-Oxley Act of 2002 and the Dodd Frank Wall Street Reform and Consumer Protection Act and related rules implemented by the SEC and the Nasdaq.

***You might face difficulties in protecting your interests, and your ability to protect your rights through US courts might be limited, because we are incorporated under Cayman Islands law.***

We are an exempted company incorporated under the laws of the Cayman Islands with limited liability. Our corporate affairs are governed by our memorandum and articles of association, the Companies Act (As Revised) of the Cayman Islands and the common law of the Cayman Islands. The rights of shareholders to take actions against the directors, actions by minority shareholders and the fiduciary duties of our directors to us under Cayman Islands law are to a large extent governed by the common law of the Cayman Islands. The common law of the Cayman Islands is derived in part from comparatively limited judicial precedent in the Cayman Islands as well as from the common law of England, the decisions of whose courts are of persuasive authority, but are not binding, on a court in the Cayman Islands. The rights of our shareholders and the fiduciary duties of our directors under Cayman Islands law are not as clearly established as they would be under statutes or judicial precedent in some jurisdictions in the United States. In particular, the Cayman Islands has a less developed body of securities laws than the United States. Some US states, such as Delaware, have more fully developed and judicially interpreted bodies of corporate law than the Cayman Islands. In addition, Cayman Islands companies may not have standing to initiate a shareholder derivative action in a federal court of the United States.

Shareholders of Cayman Islands exempted companies like us have no general rights under Cayman Islands law to inspect corporate records or to obtain copies of lists of shareholders of these companies. Our directors will have discretion, under the Memorandum and Articles of Association, to determine whether or not, and under what conditions, our corporate records may be inspected by our shareholders, but are not obliged to make them available to our shareholders. This may make it more difficult for you to obtain the information needed to establish any facts necessary for a shareholder resolution or to solicit proxies from other shareholders in connection with a proxy contest.

As a result of all of the above, our public shareholders might have more difficulty in protecting their interests in the face of actions taken by management, members of the board of directors or our controlling shareholder than they would as public shareholders of a company incorporated in the United States. For a discussion of significant differences between the provisions of the Companies Act (Revised) of the Cayman Islands and the laws applicable to companies incorporated in the United States and their shareholders, see "Description of Share and Governing Documents—Differences in Corporate Law".

**SPECIAL NOTE ON FORWARD-LOOKING STATEMENTS**

This prospectus contains many statements that are "forward-looking" and uses forward-looking terminology such as "anticipate," "believe," "could," "estimate," "expect," "future," "intend," "may," "ought to," "plan," "possible," "potentially," "predicts," "project," "should," "will," "would," or negatives of such terms or other similar statements. You should not place undue reliance on any forward-looking statement due to its inherent risk and uncertainty, both in general and specifically. Although we believe the assumptions on which the forward-looking statements are based are reasonable and within the bounds of our knowledge of our business and operations as of the date of this prospectus, any or all of those assumptions could prove to be inaccurate. As a result, the forward-looking statements based on those assumptions could also be incorrect. The forward-looking statements in this prospectus include, without limitation, statements relating to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· our goals and strategies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· our future business development, results of operations
 and financial condition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· projected revenues, profits, earnings and other estimated
 financial information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· our planned use of proceeds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· governmental policies regarding our industry; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· market acceptance of solar energy.

These risks and uncertainties are not exhaustive. Other sections of this prospectus include additional factors which could adversely impact our business and financial performance. The forward-looking statements contained in this prospectus speak only as of the date of this prospectus or, if obtained from third-party studies or reports, the date of the corresponding study or report, and are expressly qualified in their entirety by the cautionary statements in this prospectus. Since we operate in an emerging and evolving environment and new risk factors and uncertainties emerge from time to time, you should not rely upon forward-looking statements as predictions of future events. Except as otherwise required by the securities laws of the United States, we undertake no obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of this prospectus or to reflect the occurrence of unanticipated events.

**USE OF PROCEEDS**

We estimate that our net proceeds from this offering, after deducting underwriting discounts and commissions and the estimated offering expenses payable by us, will be approximately $17,430,000, based on an assumed initial public offering price of $8.00 per ordinary share which represents the mid-point of the estimated range of the initial public offering price shown on the cover page of this prospectus.

We intend to use the net proceeds from this offering for working capital and general corporate purposes and as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Expand U.S. assembly factory capacity for solar
 modules. In addition to our current module manufacturing facility in California, we plan to build a 2.5GW module assembly factory
 with leased space in east cost of U.S. and industry leading machinery that we plan to purchase from Asia. We will invest in new staff
 hiring and training, as well as raw material purchases. We expect to invest approximately $15.4 million for this purpose.

· Expand our distribution business in Australia and
 other countries by funding the working capital needed to establish inventory levels that can support the growth. We expect to invest
 approximately $1.0 million for this purpose.

· Expand our U.S. roof and solar system installation business
 by hiring new sales staff, opportunistically purchase in bulk to lower material costs. We
 expect to invest approximately $1.0 million for this purpose.

· Other general corporate purposes. We expect to invest
 all the rest of offering net proceeds for this purpose.

**DIVIDEND POLICY**

We have not declared or paid any dividends on our ordinary shares. We intend to retain any earnings for use in our business and do not currently intend to pay cash dividends on our ordinary shares. Our board of directors has discretion on whether to distribute dividends, subject to certain requirements of Cayman Islands law. Even if our board of directors decides to pay dividends, the form, frequency and amount will depend upon our future operations and earnings, capital requirements and surplus, general financial condition, contractual restrictions and other factors that the board of directors may deem relevant.

**CAPITALIZATION**

The following table, should be read in conjunction with the audited consolidated financial statements included in this prospectus, sets forth our capitalization as of June 30, 2022, and as adjusted as described below and as adjusted basis to give effect to the issuance and sale of 2,500,000 ordinary shares at the offering price of $8.00 per share, after deducting underwriters' fees and expenses and estimated offering expenses.

---

| | | |
|:---|:---|:---|
|  | **As of June 30, 2022<br> (USD 000s)** | **As of June 30, 2022<br> (USD 000s)** |
|  | **Actual** | **As adjusted <sup>(1)</sup>** |
| Cash and cash equivalents (1) | $3241 | $20671 |
| Debt: |  |  |
| &nbsp;&nbsp;&nbsp;Borrowings | 9074 | 9074 |
| &nbsp;&nbsp;&nbsp;Loan from a related party | 12021 | 12021 |
| Total debt | 21095 | 21095 |
| Shareholders' equity: |  |  |
| Ordinary shares, par value $0.00004, 1,250,000,000 shares authorized, 25,000,000 issued and outstanding on actual basis, 27,500,000 as adjusted, respectively | $1 | $1 |
| Subscription receivable | $(1) | $(1) |
| Additional paid in capital (1) | $34694 | $52124 |
| Accumulated other comprehensive loss | (911) | (911) |
| Accumulated deficit | (31768) | (31768) |
| Non-controlling interest | $4139 | $4139 |
| Total equity | $6154 | $23584 |
| Total capitalization (1) | $27249 | $44679 |

---

___________________

&nbsp;&nbsp;&nbsp;&nbsp;(1) Pro forma additional paid in capital reflects the net proceeds we expect
 to receive, after deducting underwriting fee, underwriter expense allowance and other expenses. We expect to receive net proceeds
 of approximately $17,430,000 (offering proceeds of $20,000,000, less underwriting discounts of $1,400,000, and
 offering expenses of $1,170,000).

**DILUTION**

If you invest in our ordinary shares in this offering, your interest will be diluted immediately to the extent of the difference between the offering price per ordinary share you will pay in this offering and the as adjusted net tangible book value per share of our ordinary shares after giving effect to this offering. Our historical net tangible book value as of June 30, 2022 was approximately $5,292,000, or $0.21 per share. Historical net tangible book value per share represents the amount of our total tangible assets less total liabilities, divided by the number of shares of our ordinary shares outstanding on June 30, 2022.

After giving effect to the assumed sale of our ordinary shares in the aggregate amount of $20,000,000 in this offering at an assumed offering price of $8.00 per share, which is the average of the high and low prices of the range set forth on the cover of this prospectus, and after deducting estimated offering commissions and expenses payable by us, our net tangible book value as of June 30, 2022, would have been approximately $22,722,000, or $0.83 per share. This represents an immediate increase in as adjusted net tangible book value per share of $0.62 to existing stockholders and immediate decrease of $7.17 per share in as adjusted net tangible book value per share to new investors participating in this offering. The following table illustrates this per share dilution to investors participating in this offering:

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| | |
|:---|:---|
| Offering price per share | $8.0 |
| Net tangible book value per share as of June 30, 2022 | $0.21 |
| Dilution per share to new investors in the offering | $7.17 |
| As adjusted net tangible book value per share after this offering | $0.83 |
| Increase per share to existing investors | $0.62 |

---

The above discussion and table are based on 25,000,000 ordinary shares outstanding as of June 30, 2022, which excludes 2,500,000 shares issued at a price of $8.00 per share.

To the extent that any of our outstanding options or warrants are exercised and any of our outstanding convertible securities are converted, additional options or other awards are issued under our equity incentive plans or we otherwise issue additional ordinary shares in the future at a price less than the offering price, there may be further dilution to new investors purchasing our ordinary shares in this offering.

**EXCHANGE RATE INFORMATION**

We are subject to risks associated with foreign currency exchange rates, fluctuations of which may negatively affect our revenue, cost of goods sold and gross margins and could result in exchange losses. We operate in several jurisdictions including Australia, New Zealand, other Pacific countries and the US, and our local operations are generally conducted in the functional currency of the home jurisdiction. A significant portion of our product suppliers is sourced from Asia. Thus, we deal on a regular basis in several currencies concurrently, which exposes us to significant currency exchange risks. Any increased costs or reduced revenue as a result of foreign exchange rate fluctuations could adversely affect our profit margins. The fluctuation of foreign exchange rates also affects the value of our monetary and other assets and liabilities denominated in local currencies. Generally, an appreciation of the US dollar against the relevant local currencies could result in a foreign exchange loss for assets denominated in such local currencies and a foreign exchange gain for liabilities denominated in such local currencies. Conversely, a devaluation of the US dollar against the relevant local currencies could result in a foreign exchange gain for assets denominated in such local currencies and a foreign exchange loss for liabilities denominated in such local currencies. We may also expand into other emerging markets in Pacific or Americas, some of which may have an uncertain regulatory environment relating to currency policy. Conducting business in such emerging markets could increase our exposure to foreign exchange risks. We have not entered into any hedging transactions to reduce the foreign exchange risks, but may do so in the future when appropriate. However, if we decide to hedge our foreign exchange exposure in the future, we cannot assure that we will be able to reduce our foreign currency risk exposure in an effective manner, at reasonable costs, or at all.

**ENFORCEABILITY OF CIVIL LIABILITIES**

We are incorporated in the Cayman Islands in order to take advantage of certain benefits associated with being a Cayman Islands exempted company, such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· political and economic stability;

· an effective judicial system;

· a favorable tax system;

· the absence of exchange control or currency restrictions; and

· the availability of professional and support services.

However, certain disadvantages accompany incorporation in the Cayman Islands. These disadvantages include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The Cayman Islands has a less developed body of securities laws as compared
 to the United States and provides significantly less protection to investors as compared to the United States; and

· Cayman Islands companies may not have standing to sue before the federal
 courts of the United States.

Our constituent documents do not contain provisions requiring that disputes, including those arising under the securities laws of the United States, between us, our officers, directors and shareholders, be arbitrated.

We have appointed Randolph Conone, our Chief Financial Officer, as our agent for service of process in the United States with respect to any action brought against us in the United States District Court for the Southern District of New York under the securities laws of the United States or any State of the United States or any action brought against us in the Supreme Court of the State of New York in the County of New York under the securities laws of the State of New York.

Carey Olsen Hong Kong LLP ("Carey Olsen"), our counsel as to Cayman Islands law, has advised us that there is uncertainty as to whether the courts of the Cayman Islands would (i) recognize or enforce judgments of United States courts obtained against us or our directors or officers predicated upon the civil liability provisions of the securities laws of the United States or any state in the United States, or (ii) entertain original actions brought in each respective jurisdiction against us or our directors or officers predicated upon the securities laws of the United States or any state in the United States.

Carey Olsen has informed us that it is uncertain whether the courts of the Cayman Islands will allow shareholders of our company to originate actions in the Cayman Islands based upon securities laws of the United States. In addition, there is uncertainty with regard to Cayman Islands law related to whether a judgment obtained from the US courts under civil liability provisions of US securities laws will be determined by the courts of the Cayman Islands as penal or punitive in nature. If such a determination is made, the courts of the Cayman Islands will not recognize or enforce the judgment against a Cayman Islands company, such as our company. As the courts of the Cayman Islands have yet to rule on making such a determination in relation to judgments obtained from US courts under civil liability provisions of US securities laws, it is uncertain whether such judgments would be enforceable in the Cayman Islands.

Carey Olsen has further advised us that the courts of the Cayman Islands would recognize as a valid judgment a final and conclusive judgment *in personam* obtained in the federal or state courts in the United States under which a sum of money is payable (other than a sum of money payable in respect of multiple damages, taxes or other charges of a like nature or in respect of a fine or other penalty) or, in certain circumstances, an *in personam* judgment for non-monetary relief, and would give a judgment based thereon provided that: (a) such courts had proper jurisdiction over the parties subject to such judgment; (b) such courts did not contravene the rules of natural justice of the Cayman Islands; (c) such judgment was not obtained by fraud; (d) the enforcement of the judgment would not be contrary to the public policy of the Cayman Islands; (e) no new admissible evidence relevant to the action is submitted prior to the rendering of the judgment by the courts of the Cayman Islands; and (f) there is due compliance with the correct procedures under the laws of the Cayman Islands.

**SELECTED CONSOLIDATED FINANCIAL INFORMATION**

 

*You should read the following summary consolidated financial information in conjunction with our consolidated financial statements and related notes beginning on page F-1 and "[Management's Discussion and Analysis of Financial Condition and Results of Operations](#a13)" beginning on page 50 in this prospectus.*

---

| | | |
|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2022** | **2021** |
|  | **Unaudited** | **Unaudited** |
| In $ thousands |  |  |
| **Consolidated Statements of Operation Data:** |  |  |
| Sales | $81517 | $75798 |
| Cost of revenue | 77546 | 70435 |
| &nbsp;&nbsp;&nbsp; Gross profit | 3971 | 5363 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp; General and administrative | 7000 | 9236 |
| &nbsp;&nbsp;&nbsp; Sales, marketing and customer service | 1617 | 2584 |
| &nbsp;&nbsp;&nbsp; (Reversal of) provision for credit losses | (209) | 319 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 8408 | 12139 |
| Operating Loss | (4437) | (6776) |
| Other income (expense): |  |  |
| &nbsp;&nbsp;&nbsp; Interest expense, net | (373) | (607) |
| &nbsp;&nbsp;&nbsp; Net foreign exchange gain/(loss) | 19 | (777) |
| &nbsp;&nbsp;&nbsp; Others | 4784 | 586 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other income (expense), net | 4430 | (798) |
| Loss before income taxes | (7) | (7574) |
| &nbsp;&nbsp;&nbsp; Income tax expense | (579) | (566) |
| Net Loss | (586) | (8140) |
| &nbsp;&nbsp;&nbsp; Less: Net income attributable to non-controlling interests | 192 | 376 |
| Net Loss attributable to shareholder of SolarJuice Co., Ltd. | $(778) | $(8516) |

---

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2021** | **2020** |
| In $ thousands |  |  |
| **Consolidated Statements of Operation Data:** |  |  |
| &nbsp;&nbsp;&nbsp;Net sales | $153276 | $113505 |
| &nbsp;&nbsp;&nbsp;Cost of revenue | 145896 | 104313 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 7380 | 9192 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | 18593 | 3889 |
| &nbsp;&nbsp;&nbsp;Sales, marketing and customer service | 6128 | 1939 |
| &nbsp;&nbsp;&nbsp;Provision for credit losses | 2635 | 145 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 27356 | 5973 |
| Operating (loss) income | (19976) | 3219 |
| Other income (expense): |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense, net | (887) | (329) |
| &nbsp;&nbsp;&nbsp;Net foreign exchange loss | (858) | (1390) |
| &nbsp;&nbsp;&nbsp;Others | 524 | (129) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense, net | (1221) | (1848) |
| (Loss) income before income taxes | (21197) | 1371 |
| &nbsp;&nbsp;&nbsp;Income tax expense | (1427) | (424) |
| Net (loss) income including noncontrolling interests | $(22624) | $947 |
| &nbsp;&nbsp;&nbsp;Less: Net income attributable to noncontrolling interests | 657 | 184 |
| Net (loss) income attributable to shareholder of SolarJuice | $(23281) | $763 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30,**<br> **2022** | **December 31,**<br> **2021** | **December 31,**<br> **2020** |
| In $ thousands | (Unaudited) |  |  |
| **Summary Consolidated Balance Sheet Data:** |  |  |  |
| &nbsp;&nbsp;&nbsp; Cash and cash equivalents | $3241 | $1342 | $14824 |
| &nbsp;&nbsp;&nbsp; Current assets | 46766 | 45012 | 42251 |
| &nbsp;&nbsp;&nbsp; Total assets | 56410 | 52610 | 44285 |
| &nbsp;&nbsp;&nbsp; Current liabilities | 47856 | 38234 | 16955 |
| &nbsp;&nbsp;&nbsp; Total liabilities | 50256 | 45242 | 17113 |
| &nbsp;&nbsp;&nbsp; Total equity | 6154 | 7368 | 27172 |
| &nbsp;&nbsp;&nbsp; Total liabilities and equity | 56410 | 52610 | 44285 |

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**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

 

*The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes included elsewhere in this prospectus. This discussion and analysis and other parts of this prospectus contain forward-looking statements based upon current beliefs, plans and expectations that involve risks, uncertainties and assumptions. Our actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements as a result of several factors, including those set forth under "Risk Factors" and elsewhere in this prospectus. You should carefully read the "Risk Factors" section of this prospectus to gain an understanding of the important factors that could cause actual results to differ materially from our forward-looking statements.*

 

**A.** **Operating Results** 

SolarJuice provides solar photovoltaic (PV) based energy solutions for residential and small commercial building markets in Australia and the United States. Through three main business units, SJ Australia, SJ America and SJ Technology, we wholesale and distribute PV modules, solar energy inverters, batteries and storage devices, other solar "balance of system" ("BOS") components, and accessories to commercial customers located in every state and territory of Australia; we are a roofing contractor and we resell and install solar energy systems to residential and commercial customers in five states in the US and we design, manufacture, and sell PV modules and related products to customers. SJ Australia is a leading wholesaler of PV systems and components in Australia. SJ America installs solar energy systems, energy storage solutions, and roofing products in California, Colorado, Florida, Nevada, and Texas. SJ Technology produces and sells solar PV modules in the US.

Our revenue was $153.3 million and $113.5 million for the years ended December 31, 2021 and 2020, respectively. For the six months ended June 30, 2022 and 2021, our revenues were $81.5 million and $75.8 million, respectively.

**Principal Factors Affecting Our Results of Operations**

We believe that the following factors have and will continue to have, a significant effect on the development of our business, financial condition and results of operations.

**COVID-19**

The novel coronavirus (COVID-19) pandemic has adversely affected the economies and financial markets worldwide. Government efforts to contain the spread of the coronavirus including lockdowns of cities, business closures, restrictions on travel and emergency quarantines, and responses by businesses and individuals to reduce the risk of exposure to infection, including reduced travel, cancellation of meetings and events, and implementation of work-at-home policies, have caused significant disruptions to normal business operations and the global economy.

Illnesses and measures implemented to curb the spread of the virus have resulted in disruption of our supply chains, work force deficiencies, and impaired construction activities. One or more of our customers, business partners, service providers, or suppliers may experience financial distress, delays or defaults on payment, file for bankruptcy protection or suffer diminished or disrupted business due to the outbreak. These preventative measures have also impacted our daily operations. The efforts enacted to control COVID-19 have placed heavy pressure on our ability to conduct in-person marketing and sales activities. We continue to assess the related risks and impacts COVID-19 pandemic may have on our business and our financial performance. In light of the rapidly changing situation across different countries and regions, it remains difficult to estimate the duration and magnitude of COVID-19 impact. Until such time as the COVID-19 pandemic is contained or eradicated and global business returns to more customary levels, our business and financial results may be materially adversely affected.

**Market Demand**

As PV and energy storage technology advances and the average system costs decrease, in many cases the residential or small business owners of solar power systems have effectively achieved grid parity for their systems. Aided by smart meter and virtual power plant technologies such systems can be an attractive alternative to electricity grid in many localities. We expect traditionally strong residential solar markets such as California and Australia to continue to grow. We anticipate capturing scale economies as the overall solar power market grows, and expect our cost of sales to decrease and our revenue and profitability to increase.

**Government Subsidies and Incentive Policies**

Federal, state and local government bodies provide incentives to owners, end users, distributors, system integrators and manufacturers of solar energy systems to promote solar energy in the form of rebates, tax credits and other financial incentives such as system performance payments, payments for renewable energy credits associated with renewable energy generation and exclusion of solar energy systems from property tax assessments. These incentives enable us to lower the price we charge customers and to increase customer acceptance of solar energy. Our domestic operations, currently generate approximately 90% of its revenue from California, and we expect to enjoy continued benefits from a change in the California building code that requires all new single-family and multi-family homes to install solar power systems beginning in 2020. SJ America's dual function as a leading roofing and solar power installation company in California should position us well to benefit from this new mandate, and we estimate that approximately 18% of our home builder roofing contracts in California include a solar installation component.

Major government regulation that impacts SJ Australia includes the Clean Energy Regulator Act 2011, Competition and Consumer Act 2010 and Clean Energy Council accreditation. The regulatory environment in Australia for solar industry has been generally stable in recent years.

Our ability to generate net sales and profits is subject, in the near term, to variability based on the availability and size of government subsidies and economic incentives, such as quotas, renewable portfolio standards, and tendering systems. Financial incentives for PV solar energy might include tax and production incentives, and many governments have proposed or implemented policies or support programs intended to stimulate their respective economies. Such support programs may include additional incentives for renewable energy projects, including PV solar power systems, over several years. Although we expect to become less impacted by and less dependent on these forms of government support over time, such programs continue to influence the demand for PV solar energy in the US

Domestic state and federal tax incentive programs can take the form of investment and production tax credits, accelerated depreciation, and sales and property tax exemptions and abatements. Federal investment tax credits for business and residential solar energy systems have gone through several cycles of enactment and expiration since the 1980s, and the current federal energy investment tax credit ("ITC") for both residential and commercial solar installations requires projects to have commenced construction by a certain date, which may be achieved by certain qualifying procurement activities. In 2020, the US Congress extended the 26% ITC through 2022 as part of its COVID-19 relief efforts. Such credit is currently scheduled to step down to 22% for projects that commence construction in 2023 and 10% for projects that commence construction thereafter. During 2021, legislation was introduced in the US Congress to incentivize domestic solar manufacturing and accelerate the transition to clean energy by providing tax credits for US solar manufacturers and project developers. Among other things, such proposed legislation extends the ITC up to 40% for 10 years for solar projects that satisfy certain domestic content, labor, and wage requirements; introduces certain refundable tax credits for solar module components manufactured in the US; revives certain tax credits for capital investments in the manufacturing of solar module components; and expands the scope of production tax credits for energy storage projects. See https://www.energy.gov/eere/solar/articles/residential-and-commercial-itc-factsheets. At this time, it is unclear whether and to what extent such measures will be enacted into law. The ITC has been an important economic driver of solar installations and qualifying procurement activities in the United States, and its extension is expected to contribute to greater medium-term demand. The positive impact of the ITC depends to a large degree on the availability of tax equity for project financing, and any significant reduction in the availability of tax equity in the future could make it more difficult to develop and construct projects requiring financing.

The majority of states in the United States have also enacted legislation adopting Renewable Portfolio Standard ("RPS") mechanisms. Under an RPS, regulated utilities and other load serving entities are required to procure a specified percentage of their total retail electricity sales to end-user customers from eligible renewable resources, such as solar energy generation facilities, by a specified date. For example, California's RPS program, which is one of the most significant in the United States in terms of the volume of renewable electricity required to meet its RPS mandate, currently requires utilities and other obligated load serving entities to procure 60% of their total retail electricity demand from eligible renewable resources by 2030 and 100% of such electricity demand from carbon-free resources by 2045. Some programs may further require that a specified portion of the total percentage of renewable energy must come from solar generation facilities or other technologies. RPS mechanisms and other legislation vary significantly from state to state, particularly with respect to the percentage of renewable energy required to achieve the state's RPS, the definition of eligible renewable energy resources, and the extent to which renewable energy credits qualify for RPS compliance.

**Selected Statement of Operations Items**

***Revenue***

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Our revenues for the years ended December 31, 2021 and 2020 as well as for the six months ended June 30, 2022 and 2021 were mainly derived from sales of PV components, which include four major product types: solar modules, inverters, batteries and balance of system ("BoS")/mounting components, and related products included under the Others category. Our roofing & solar energy systems installation business also began generating revenues in February 2021 after our PDI asset acquisition.

 **For the years ended December 31, 2021 and 2020:**

The following table delineates our revenue by category of activities for the periods indicated. Our revenue growth of 35.0% from 2020 to 2021 was driven by the strong growth in the overall roof-top solar market (including both residential and small commercial buildings) in Australia, which increased from 3.0GW in 2020 to 3.3GW in 2021, according to the Clean Energy Council, and above industry-average growth in battery sales. Our Tesla Powerwall battery sales increased by 9% from 38.7MW to 42.35 MW, as the residential energy storage market in Australia grew from 23,796 units installed in 2020 to 34,731 units in 2021, according to the Clean Energy Council. Our domestic Roofing & Solar Energy Systems Installation activities started in February 2021 after our PDI asset acquisition, and the largest contributors to its revenue were SunPower Corporation Systems, Toll Brothers, Greystar and Woodbridge Pacific Group.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2021** | **2021** | **2020** | **2020** |
|  | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** |
| PV components | $123138 | 80.3% | $112442 | 99.1% |
| Roofing & Solar Energy Systems Installation | 29028 | 19.0% |  |  |
| Others | 1110 | 0.7% | 1063 | 0.9% |
|  | $153276 | 100% | $113505 | 100% |

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 **For the six months ended June 30, 2022 and 2021:**

For the six months ended June 30, 2022 and 2021, our revenues were $81.5 million and $75.8 million, respectively. The increase in revenues is mainly due to increase in the roofing and solar energy system installation in the United States.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2022** | **2022** | **2021** | **2021** |
|  | **(Unaudited) <br> ($ in thousands)**  | **(Unaudited) <br> ($ in thousands)**  | **(Unaudited) <br> ($ in thousands)**  | **(Unaudited) <br> ($ in thousands)**  |
| PV components | $60858 | 74.7% | $60803 | 80.2% |
| Roofing & Solar Energy Systems Installation | 20153 | 24.7% | 14363 | 19.0% |
| Others | 506 | 0.6% | 632 | 0.8% |
|  | $81517 | 100% | $75798 | 100% |

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***Cost of Revenue***

 **For the years ended December 31, 2021 and 2020:**

During 2021 and 2020, our cost of revenue consisted primarily of inventory costs. In the years ended December 31, 2021 and 2020, cost of revenue was $145.9 million and $104.3 million, respectively. Our gross margin decreased from 8.1% to 4.8% and the decrease in margin was primarily due to launching the new business of roofing and solar energy systems installation, which had a negative gross margin due to rationalization efforts upon the launch of that business.

 **

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 **

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 **For the six months ended June 30, 2022 and 2021**:

For the six months ended June 30, 2022 and 2021, our costs of revenue were $77.5 million and $70.4 million respectively. In the six months ended June 30, 2022 and 2021, our gross margin decreased from 7.1% to 4.9% and the decrease in margin was primarily due to the increase in material cost for roofing and solar installation.

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***Operating Expenses***

Operating expenses consist of general and administrative expenses, sales, marketing and customer service expenses, and provision for credit loss.

*General and administrative expenses*. Our general and administrative expenses consist primarily of salaries, professional service fees, rent expense, and office supplies expenses.

 **For the years ended December 31, 2021 and 2020:**

In the years ended December 31, 2021 and 2020, our general and administrative expenses were $18.6 million and $3.9 million, respectively, resulting from higher employee compensation and higher insurance costs as we launched our domestic operations and increased our SJ Australia operations. Our general and administrative expense increased from 3.4% in 2020 to 12.1% in 2021.

 **For the six months ended June 30, 2022 and 2021**:

For the six months ended June 30, 2022 and 2021, our general and administrative expenses were $7.0 million and $9.2 million respectively, the decrease in general and administrative expenses is mainly due to lower expenses related to service-based stock options.

*Sales, marketing and customer service expenses*. Our sales, marketing and customer service expenses consist primarily of salaries, storage and logistic expenses, and marketing expenses such as product information events and training sessions.

 **For the years ended December 31, 2021 and 2020:**

In the years ended December 31, 2021 and 2020, our sales, marketing and customer service expenses were $6.1 million and $1.9 million, respectively, primarily due to the increase of employees' compensation and the amortization of the cost of customer list and work in progress contracts purchased from PDI. As a percentage of revenue, sales expense increased from 1.7% in 2020 to 4.0% in 2021.

 **For the six months ended June 30, 2022 and 2021**:

For the six months ended June 30, 2022 and 2021, our sales, marketing and customer service expenses were $1.6 million and $2.6 million, respectively, resulting from lower expense of advertising and promotion activities.

*Provision for credit loss*.

 **For the years ended December 31, 2021 and 2020:**

In the years ended December 31, 2021 and 2020, provision for credit loss was $2.6 million and $0.1 million, respectively, primarily due to the provision for accounts receivable generated from the new roofing and solar energy systems installation business.

 **For the six months ended June 30, 2022 and 2021**:

For the six months ended June 30, 2022 and 2021, the reversal of credit loss was $0.2 million and the provision for credit loss was $0.3 million, respectively, primarily due to the reversal and provision for accounts receivable generated from the roofing and solar energy systems installation business.

***Other Income (Expense)***

Other income (expense) includes interest expense, net foreign exchange loss, and others.

*Interest expense.* Interest expense arises from borrowings. In the years ended December 31, 2021 and 2020, interest expense was $0.9 million and $0.3 million, respectively. For the six months ended June 30, 2022 and 2021, the interest expenses were $0.3 million and $0.6 million, respectively.

 

*Net foreign exchange loss*. Foreign exchange gain and loss result mainly from foreign currency transactions. We recorded a foreign exchange loss of $0.9 million, in 2021 and $1.4 million in 2020. For the six months ended June 30, 2022 and 2021, the net foreign exchange gain was $0.02 million and net foreign exchange loss was $0.8 million respectively.

***Income Tax***

Income before provision for income taxes is attributable to the following geographic locations for 2021 and 2020 as well as for the six months ended June 30, 2022. There was no business activity in Hong Kong in 2021 and 2020 as well as for the six months ended June 30, 2022; there was no business activity in the United States in 2020 (in $000s).

 **For the years ended December 31, 2021 and 2020 (in $000s):**

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| | | |
|:---|:---|:---|
|  | **2021** | **2020** |
| Australia | $4710 | $1343 |
| United States | (25907) |  |
| Hong Kong | – | 28 |
|  | $(21197) | $1371 |

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 **For the six months ended June 30, 2022 and 2021 (in $000s)**:

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| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
|  | **(unaudited)** | **(unaudited)** |
| Australia | $1408 | $2446 |
| United States | (1415) | (10020) |
| Hong Kong | – | – |
|  | $(7) | $(7574) |

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***Cayman Islands***

The Company is incorporated in the Cayman Islands, and is not subject to income or capital gains tax in the Cayman Islands under the laws of that jurisdiction. Payments of dividends and capital in respect of the Company's shares will not be subject to taxation in the Cayman Islands no withholding will be required on the payment of a dividend or capital to any holder of the Company's shares, and no gains derived from the disposal of the Company's shares will be subject to Cayman Islands income or corporation tax. The Cayman Islands currently have no income, corporation or capital gains tax and no estate duty, inheritance tax or gift tax.

***Hong Kong***

Our subsidiaries incorporated in Hong Kong were subject to the uniform tax rate of 8.25% for 2021 and 2020 as well as for the six months ended June 30, 2022 and 2021. They were exempted from the Hong Kong income tax on its foreign-derived income and there were no withholding taxes in Hong Kong on the remittance of dividends. No provision for Hong Kong tax has been made in our consolidated financial statements.

***Australia***

The Company's subsidiary incorporated in Australia was subject to a federal income tax rate of 30% for the years ended December 31, 2021 and 2020 as well as for the six months ended June 30, 2022 and 2021, respectively.

***US***

The Company's subsidiary incorporated in United States was subject to a federal income tax rate of 21% for the years ended December 31, 2021 and 2020 as well as for the six months ended June 30, 2022 and 2021, respectively.

**Critical Accounting Policies and Estimates**

Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, which require us to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements, the reported amounts of revenues and expenses during the reporting periods and the related disclosures in the consolidated financial statements and accompanying footnotes. Out of our significant accounting policies, which are described in Note 3—Summary of Significant Accounting Policies of our consolidated financial statements included elsewhere in this registration statement, certain accounting policies are deemed "critical," as they require management's highest degree of judgment, estimates and assumptions. While management believes its judgments, estimates and assumptions are reasonable, they are based on information presently available and actual results may differ significantly from those estimates under different assumptions and conditions.

***Revenue Recognition***

On January 1, 2019, the Group adopted Accounting Standards Codification ("ASC") No. 606, "Revenue from Contracts with Customers" ("ASC 606" or "Topic 606") and applied the modified retrospective method to all contracts that were not completed as of January 1, 2019. The Group has determined that the impact of the transition to the new standard is immaterial to the Group's revenue recognition model. Accordingly, the Group has not made any adjustments to opening retained earnings and revenues for the years ended December 31, 2020 and 2021, as well as for the six months ended June 30, 2022 and 2021 were presented under ASC 606.

The Group's accounting practices under ASC Topic 606 are as follows:

*<u>Sale of PV components</u>*

 

The Group generated revenue from sales of PV components for the years ended December 31, 2021 and 2020, as well as for the six months ended June 30, 2022 and 2021.

 

Revenue on sales of PV components includes one performance obligation of delivering the products and the revenue is recognized at a point in time following the transfer of control of such products to the customer, which typically occurs upon shipment or acceptance of the customer depending on the terms of the underlying contracts.

*<u>Revenue from roofing and solar energy system installation</u>*

Revenue from roofing and solar energy system installation is recognized over time.

For revenue from solar energy system installation, the Company's only performance obligation is to design and install a customized solar energy system, reinstall the customer's existing solar energy system. For revenue from roofing, the Company's only performance obligation is to design and build the roof system per customer specifications.

All costs to obtain and fulfill contracts associated with system sales and other product sales are expensed to cost of revenue when the corresponding revenue is recognized.

The Company recognizes revenue using a cost-based input method that recognizes revenue and gross profit as work is performed based on the relationship between actual costs incurred compared to the total estimated cost of the contract, to determine the Company's progress towards contract completion and to calculate the corresponding amount of revenue and gross profit to recognize. The total estimated cost of the contract consists of material cost and labor cost, and is developed based on the size and specific situation of different jobs. Changes in estimates are mainly due to: (i) unforeseen field conditions that impacts the estimated workload, and (ii) change of the unit price of material or labor cost.

If the estimated total costs on any contract are greater than the net contract revenues, we recognize the entire estimated loss in the period the loss becomes known.

The Company's roofing projects involve the construction of a specific roof systems in accordance each customer's selection; the Company's solar energy system installations involve solar modules being retrofitted to existing consumer roofs using rails, then connected to the utility using an inverter system. For both solar energy system installation and roofing, typically jobs are completed within three months, the specific timing depends on the size of the job and the complexity of the job site, and the contract price includes all material and labor needed, and payments are collected based on specific milestones.

The Company provides solar energy systems and roofing installation for various customers, such as homeowners and real estate developers, but the design and installation for each customer differs substantially on the basis of each customer's needs and the type of shingle or roof that is placed with the solar energy system. The asset consequently has no alternative use to the Company because the customer specific design limits the Company's practical ability to readily direct the solar energy system to another customer. As such the Company's performance does not create an asset with an alternative use to the Company. Pursuant to the contract, the customers agree to pay for any costs, expenses and losses incurred by the Company upon termination, and therefore, revenue is recognized over time according to ASC 606-10-25-27(c).

All costs to obtain and fulfill contracts associated with system sales and other product sales are expensed to cost of revenue when the corresponding revenue is recognized.

The Company recognizes revenue using a cost-based input method that recognizes revenue and gross profit as work is performed based on the relationship between actual costs incurred compared to the total estimated cost of the contract, to determine the Company's progress towards contract completion and to calculate the corresponding amount of revenue and gross profit to recognize. The total estimated cost of the contract constitutes of material cost and labor cost, and are developed based on the size and specific situation of different jobs. Changes in estimates mainly due to: (i) unforeseen field conditions that impacts the estimated workload, and (ii) change of the unit price of material or labor cost.

If the estimated total costs on any contract are greater than the net contract revenues, we recognize the entire estimated loss in the period the loss becomes known.

*<u>Other revenue</u>*

 

Other revenue primarily represents freight revenue for product shipments and the revenue from sales of self-assembled solar panels. Other revenues are recognized at a point in time following the transfer of control of such service or products to the customer, which typically occurs upon shipment of product or acceptance of the customer depending on the terms of the underlying contracts.

Other revenue is recognized at a point in time following the transfer of control of such service to the customer, which typically occurs upon shipment of product or acceptance of the customer depending on the terms of the underlying contracts.

***Inventories***

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Inventories are stated at the lower of cost or net realizable value. The cost of raw materials is determined on the basis of weighted average cost method. The cost of finished goods is determined on the basis of weighted average and comprises direct materials, direct labor and an appropriate proportion of overhead. Net realizable value is based on estimated selling prices less selling expenses and any further costs expected to be incurred for completion. Adjustments to reduce the cost of inventory to net realizable value are made, if required, for estimated excess, obsolescence, or impaired balances if any. We evaluate the recoverability of our inventories based on assumptions about expected demand and market conditions. Our assumptions of expected demand are developed based on our analysis of sales backlog, market forecast, and competitive intelligence, and our assumptions of expected demand are relative to available inventory, production capacity, available third-party inventory, and growth plans.

During the years ended December 31, 2021 and 2020, inventories were written down by $0.6 million and nil, respectively, to reflect the lower of cost or net realizable value. During the six months ended June 30, 2022 and 2021, no inventories were written down.

***Accounts Receivables and Allowance for Credit Losses***

We grant open credit terms to credit-worthy customers. Accounts receivable are primarily related to sales of PV components, and revenue from roofing and solar energy systems installation.

We maintain allowances for credit losses for estimated losses resulting from the inability of our customers to make required payments. Accounts receivable are considered past due based on our contractual terms, and when establishing the allowance, management considers historical losses, the financial condition, the accounts receivables aging, the payment patterns and the forecasted information in pooling basis upon the use of the Current Expected Credit Loss Model ("CECL Model") in accordance with ASC topic 326, Financial Instruments - Credit Losses. Accounts receivable that are deemed to be uncollectible are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. There is a time lag between when the Company estimates a portion of or the entire account balances to be uncollectible and when a write off of the account balances is taken. We take a write off of the account balances when we can demonstrate all means of collection on the outstanding balances have been exhausted, and do not have any off-balance-sheet credit exposure related to our customers, however, we may contractually charge interest for extended payment terms and require collateral.

Our provision for credit losses was $2.6 million and $0.1 million for the years ended December 31, 2021 and 2020, respectively. During the six months ended June 30, 2022 and 2021, the reversal of credit loss was $0.2 million and the provision for credit loss was $0.3 million, respectively.

**Off Balance Sheet Arrangements and Credit Exposures**

The Company entered into an Amended and Restated Invoice Purchase Agreement ("AIPA") with LSQ Funding Group L.C. and LS DE LLC ("LSQ") in connection with the PDI asset acquisition, pursuant to which the Company entered into a factoring arrangement with LSQ. According to the agreement, the Company shall immediately on demand by LSQ repurchase any purchased accounts receivable that LSQ determines in its sole discretion is uncollectible for any reason or is otherwise no longer an eligible accounts receivable and on such demand shall pay to LSQ the then unpaid face amount of the accounts receivable, together with any accrued but unpaid fees relating to the accounts receivable.

LSQ could demand that the Company repurchase any purchased accounts receivable at its sole discretion, which means that the Company as transferor maintains effective control over the transferred accounts receivable, the Company accounted for the transfer as a secured borrowing, retained the transferred accounts receivable in the balance sheet and recognized the deposit received as borrowings.

The liability assumed of $11.0 million and pledged accounts receivable of $11.8 million by the Company in connection with the PDI transaction are recognized separately as liability and assets in the balance sheet of the Company. The Company is responsible to repay the loan first using the pledged accounts receivable, and for any remaining part of the LSQ liability, if the collection of the pledged accounts receivable is not able to cover the balance of the loan, the Company will be responsible to repay the balance of the loan. For the pledged accounts receivable, if there is any excess amount after the LSQ liability of $11.0 million is fully repaid, remaining pledged accounts receivable will be released to the Company.

The Company entered into an accounts receivable factoring arrangement with LSQ after the acquisition, the Company sold new accounts receivable and used the collection from both the new accounts receivable and pledged accounts receivable of PDI to repay the borrowing. As of December 31, 2021, the accumulated repayment after the acquisition was $35.8 million, and the accumulated addition of borrowing was $28.2 million (not including the liability assumed from PDI of $11 million), and the balance of the borrowing is $3.4 million. As of September 15, 2022, the balance of the LSQ borrowing is $2.4 million.

As of December 31, 2021, the balance of pledged accounts receivable assumed from PDI was $1.3 million. Since this balance has been overdue for more than 9 months, we considered that the collectability of the remaining accounts receivable is low and provided for full allowance. As of September 15, 2022, the balance remained relatively stable as not much collection was made.

***Share-Based Compensation***

The Group's share-based payment transactions with employees, such as restricted shares and share options, are measured based on the grant-date fair value of the equity instrument granted. The fair value of the award is recognized as compensation expense, net of estimated forfeitures, over the period during which an employee is required to provide service in exchange for the award, which is generally the vesting period.

The Group estimates the fair value of service-based stock options granted using the Black-Scholes option-pricing formula, which requires the use of highly subjective and complex assumptions. If we had made different assumptions, our stock-based compensation expense, net loss and net loss per share of ordinary shares could have been significantly different. See Note 12 to our audited financial statements included elsewhere in this registration statement for information concerning certain of the specific assumptions we used in applying the Black-Scholes option pricing model to determine the estimated fair value of our stock options granted during the year ended December 31, 2021. There was no share-based award granted in the year 2020.

***Income Taxes***

The Group accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion, or all, of a deferred tax asset will not be realized.

The Group recognizes in the consolidated financial statements the impact of a tax position, if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, management presumes that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information. In addition, a tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to be recognized in the financial statements. The tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. The Group's tax liability associated with unrecognized tax benefits is adjusted periodically due to changing circumstances, such as the progress of the tax audits, case law developments and new or emerging legislation. Such adjustments are recognized entirely in the period in which they are identified. The Group records interest and penalties related to an uncertain tax position, if and when required, as part of income tax expense in the consolidated statements of income. No reserve for uncertainty tax position was recorded by the Group for the years ended December 31, 2021 and 2020 as well as for the six months ended June 30, 2022 and 2021.

**Recent Change in SJ America Business Operations**

In July 2022, SolarJuice made a decision that its SJ America subsidiary would pause its roofing and solar energy system installation business in the states of Florida, Texas, Nevada and Colorado, due to insufficient business volume and profitability in those four states. The Company continually assesses the market demand, the scale and geographic scope of its business lines, especially the roofing and solar energy system installation business, which includes the installation of solar panels, batteries and EV chargers, for profitability, and we plan that we will continue to do so in the future.

The Company has been in the process of pausing its roofing and installation operations in Colorado, Florida, Nevada and Texas for several weeks as of the date of this filing, and we believe that we have minimal if any continuing roofing and installation operations in any of the four aforementioned states. We have provided notice to the landlords of the properties we lease in Colorado, Florida, Nevada and Texas of our decision to terminate those leases. We have also terminated all of our employees who worked out of our offices in Colorado, Florida, Nevada and Texas, except for one District Manager in Florida who is assisting the Company with winding up its affairs in Florida. Where appropriate and necessary we have made arrangements for other companies to complete any remaining roofing and solar energy system installation work that has not been complete.

While the Company is not currently conducting solar energy installations or roofing installation business in in Florida, Texas, Nevada and Colorado, we do still maintain our licenses to do such business as well as our business contacts, in the event we determine to resume operations in one or more of those states.

In August 2022 we provided our notice to terminate the leases for our offices in Colorado, Florida, Nevada and Texas to the respective landlords. We are currently in the process of negotiating and making the appropriate arrangements to satisfy any outstanding lease obligations and to terminate such leases. We do expect to incur some related costs associated with the lease terminations, but we do not anticipate such costs or penalties relating to those four lease terminations to be material. The negotiations with those landlords are ongoing at this time, and we currently estimate the total lease termination costs for those four locations to be between $100,000 and $150,000.

**Recent Accounting Pronouncements**

***Recently Adopted Accounting Standards***

In December 2019, the FASB issued ASU No. 2019-12, Income taxes (Topic 740), Simplifying the Accounting for Income Taxes. This guidance amends ASC Topic 740 and addresses several aspects including 1) evaluation of step-up tax basis of goodwill when there is not a business combination, 2) policy election to not allocate consolidated taxes on a separate entity basis to entities not subject to income tax, 3) accounting for tax law changes or rates during interim periods, 4) ownership changes from equity method investment to subsidiary or vice versa, 5) elimination of exception to intraperiod allocation when there is gain in discontinued operations and a loss from continuing operations, and 6) treatment of franchise taxes that are partially based on income. The standard is effective for interim and annual periods beginning after December 15, 2020. We adopted this ASU from January 1, 2021, and the adoption of ASU No. 2019-12 did not have a material impact on our consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, which amends the current accounting guidance and requires the measurement of all expected losses based on historical experience, current conditions and reasonable and supportable forecasts. For trade receivables, loans, and other financial instruments, we will be required to use a forward-looking expected loss model that reflects losses that are probable rather than the incurred loss model for recognizing credit losses. The standard became effective for interim and annual periods beginning after December 15, 2019. The Group adopted ASU 2019-12 from January 1, 2020. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. The adoption did not have a material impact on our consolidated financial statements.

In November 2021, The FASB issued ASU No. 2021-10, Government Assistance (Topic 832), Disclosures by Business Entities about Government Assistance. This guidance requires business entities to make annual disclosures about transactions with a government (including government assistance) they account for by analogizing to a grant or contribution accounting model (e.g., IAS 20, Accounting for Government Grants and Disclosure of Government Assistance). The required disclosures include the nature of the transaction, the entity's related accounting policy, the financial statement line items affected and the amounts reflected in the current period financial statements, as well as any significant terms and conditions. An entity that omits any of this information because it is legally prohibited from being disclosed needs to include a statement to that effect. The guidance is effective for financial statements issued for annual periods beginning after December 15, 2021, and early adoption is permitted. We adopted this ASU from January 1, 2022 and the adoption did not have a material impact on our consolidated financial statements.

We do not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of income and cash flows.

**Results of Operations**

The following table sets forth a summary, for the periods indicated, of our consolidated results of income and each item expressed as a percentage of our total net revenues. Our historical results presented below are not necessarily indicative of the results that may be expected for any future period (in $000s).

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| | | | | |
|:---|:---|:---|:---|:---|
|  | | **% of Sales** | | **% of Sales** |
|  | **Six months ended June 30, 2022**<br> **(unaudited)** | | **Six months ended June 30, 2021**<br> **(unaudited)** | |
| Net sales | $81517 | 100.0% | $75798 | 100.0% |
| Cost of revenue | 77546 | 95.1% | 70435 | 92.9% |
| &nbsp;&nbsp;&nbsp; Gross profit | 3971 | 4.9% | 5363 | 7.1% |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; General and administrative | 7000 | 8.6% | 9236 | 12.2% |
| &nbsp;&nbsp;&nbsp; Sales, marketing and customer service | 1617 | 2.0% | 2584 | 3.4% |
| &nbsp;&nbsp;&nbsp; Provision for doubtful accounts | (209) | (0.3%) | 319 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 8408 | 10.3% | 12139 | 16.0% |
| Operating (loss) income | (4437) | (5.4%) | (6776) | (8.9%) |
| Other income (expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Interest expense, net | (373) | (0.5%) | (607) | (0.8%) |
| &nbsp;&nbsp;&nbsp; Net foreign exchange loss | 19 |  | (777) | (1.0%) |
| &nbsp;&nbsp;&nbsp; Others | 4784 | 5.9% | 586 | 0.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other expense, net | 4430 | 5.4% | (798) | (1.1%) |
| Loss before income taxes | (7) |  | (7574) | (10.0%) |
| &nbsp;&nbsp;&nbsp; Income tax expense | (579) | (0.7%) | (566) | (0.7%) |
| Net (loss) income | (586) | (0.7%) | (8140) | (10.7%) |
| &nbsp;&nbsp;&nbsp; Less: Net income attributable to non-controlling interests | 192 | 0.2% | 376 | 0.5% |
| Net (loss) income attributable to shareholder of SolarJuice Co., Ltd. | (778) | (1.0%) | (8516) | (11.2%) |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2021** | **% of Sales** | **2020** | **% of Sales** |
| In $ thousands |  |  |  |  |
| **Consolidated Statements of Operation Data:** |  |  |  |  |
| Net sales | $153276 | 100.0% | $113505 | 100.0% |
| Cost of revenue | 145896 | 95.2% | 104313 | 91.9% |
| Gross profit | 7380 | 4.8% | 9192 | 8.1% |
| Operating expenses: |  |  |  |  |
| General and administrative | 18593 | 12.1% | 3889 | 3.5% |
| Sales, marketing and customer service | 6128 | 4.0% | 1939 | 1.7% |
| Provision for credit loss | 2635 | 1.7% | 145 | 0.1% |
| Total operating expenses | 27356 | 17.8% | 5973 | 5.3% |
| Operating (loss) income | (19976) | (13.0%) | 3219 | 2.8% |
| Other income (expense): |  |  |  |  |
| Interest expense, net | (887) | (0.6%) | (329) | (0.3%) |
| Net foreign exchange loss | (858) | (0.6%) | (1390) | (1.2%) |
| Others | 524 | 0.3% | (129) | (0.1%) |
| Total other expense, net | (1221) | (0.8%) | (1848) | (1.6%) |
| (Loss) income before income taxes | (21197) | (13.8%) | 1371 | 1.2% |
| Income tax expense | (1427) | (0.9%) | (424) | (0.4%) |
| Net (loss) income | $(22624) | (14.7%) | $947 | 0.8% |
| Less: Net income attributable to noncontrolling interests | 657 | 0.4% | 184 | 0.2% |
| Net (loss) income attributable to shareholder of SolarJuice Co., Ltd. | $(23281) | (15.1%) | $763 | 0.6% |

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 **Comparison of the year ended December 31, 2021 to the year ended December 31, 2020 and the six months ended June 30, 2022 and 2021:**

 

*Net sales* — Net sales were $153.3 million and $113.5 million for the years ended December 31, 2021 and 2020, respectively, representing an increase of $39.8 million or 35.0%. The increase in net sales resulted primarily from our new business of roofing and solar system installation in the US in 2021, as well as growth in the residential solar market in Australia, as costs for solar components continued to decrease, and electricity generated by solar became increasingly affordable, in comparison to utility generated electricity. Australian businesses such as solar installation and distribution industries were less affected than in other countries by COVID-19 prior to mid-2021, and demand for batteries increased in Australia, particularly for the Tesla Powerwall of which SJ is a leading distributor.

For the six months ended June 30, 2022 and 2021, our revenue was $81.5 million and $75.8 million respectively. The increase in revenues is mainly due to increase in the roofing and solar energy system installation in the United States.

*Gross profit* — Gross profit decreased to $7.4 million in 2021 from $9.2 million in 2020. Gross margins were 4.8% and 8.1% for the years ended December 31, 2021 and 2020, respectively. The decrease in gross margin was primarily due to our new domestic business of roofing and solar energy systems installation which had a negative gross margin due to initial rationalization issues.

For the six months ended June 30, 2022 and 2021, the gross profit was $4.0 million and $5.4 million, respectively. In the six months ended June 30, 2022 and 2021, our gross margin decreased from 7.1% to 4.9%. The decrease in gross margin was primarily due to the increase in material cost for roofing and solar installation.

*General and administrative expenses* — General and administrative expenses were $18.6 million and $3.9 million for the years ended December 31, 2021 and 2020 and 12.1% and 3.4% of net sales, respectively, representing an increase of $14.7 million, or 378.1%. The increase in our general and administrative expenses was mainly due to increases in employees' salaries, insurance fees and professional services, driven by our entry into the domestic roofing and solar energy systems installation business in February 2021 after acquisition of Petersen-Dean Assets.

For the six months ended June 30, 2022 and 2021, general and administrative expenses were $7 million and $9.2 million and 8.6% and 12.2% of net sales, respectively, the decrease in general and administrative expenses is mainly due to lower expenses related to service-based stock options.

 

*Sales, marketing and customer service expenses* — Sales, marketing and customer service expenses were $6.1 million and $1.9 million for the years ended December 31, 2021 and 2020 and 4.0% and 1.7% of net sales, respectively. Sales, marketing and customer service expenses increased as a percentage of sales as we increased our marketing activities within online videos, conferences and newsletters. The increase in our sales, marketing and customer service expenses was mainly due to the increase of employees' salaries and the amortization of the cost of customer list and work in process contracts purchased from the PDI.

For the six months ended June 30, 2022 and 2021, sales, marketing and customer service expenses were $1.6 million and $2.6 million and 2.0% and 3.4% of net sales, respectively, the decrease in sales, marketing and customer service expenses is mainly due to lower expense of advertising and promotion activities.

 

*Income tax expense* — We had a provision for income taxes of $1.4 million and $0.4 million for the years ended December 31, 2021 and 2020 and 0.9% and 0.4% of net sales, respectively. For the six months ended June 30, 2022 and 2021, we had a provision for income taxes of $0.6 million and $0.6 million and 0.7% and 0.7% of net sales, respectively.

 

*Net (loss) income* — As a result of forgoing, we generated a net loss of $22.6 million for the year ended December 31, 2021, compared to net income of $0.9 million for the year ended December 31, 2020, or a loss of 14.8% and income of 0.8%, respectively. We generated a net loss of $0.6 million and $8.1 million for the six months ended June 30, 2022 and 2021, or a loss of 0.7% and 10.7%, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Liquidity and Capital Resources

**Liquidity**

A summary of the sources and uses of cash and cash equivalents for 2021 and 2020 is as follows:

 **For the years ended December 31, 2021 and 2020 (in $000s):**

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| | | |
|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2021** | **2020** |
| Net cash used in operating activities | $(7463) | $(2592) |
| Net cash used in investing activities | (8387) | (159) |
| Net cash generated from financing activities | 2251 | 16524 |
| Effect of exchange rate changes on cash and cash equivalents | (126) | 870 |
| Net (decrease)/increase in cash and cash equivalents | $(13725) | $14643 |

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As of December 31, 2021 and 2020, we had $1.3 million and $14.8 million, respectively, in cash and cash equivalents. SolarJuice incurred a net loss of $22.6 million during the year ended December 31, 2021. The cash flow used in the operation activities for the year ended December 31, 2021 was $7.5 million, the accumulated deficit as of December 31, 2021 was $30.1 million, and the Company needs to raise additional funds to sustain its operations. These conditions raise substantial doubt about SolarJuice's ability to continue as a going concern.

 **For the six months ended June 30, 2022 and 2021 (in $000s):**

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| | | |
|:---|:---|:---|
|  | **Six months ended June 30, 2022**<br> **(unaudited)** | **Six months ended June 30, 2021**<br> **(unaudited)** |
| Net cash used in operating activities | $(4263) | $(5681) |
| Net cash used in investing activities | (2213) | (8260) |
| Net cash generated from financing activities | 9522 | 2156 |
| Effect of exchange rate changes on cash and cash equivalents | (208) | 437 |
| Net (decrease)/increase in cash and cash equivalents | $2838 | $(11348) |

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As of June 30, 2022, we had cash and cash equivalents of $3.2 million. We incurred a net loss of $0.68 million during the six months ended June 30, 2022, and the net cash used in operating activities was $4.3 million. As of June 30, 2022, we had an accumulated deficit of $31.8 million, and net current liability of $1.1 million, respectively.

We have historically funded our operation, capital expenditure and working capital requirements through borrowings from prior owner, payments received from customers, short-term working capital loans from our parent company, SPI Energy Co., Ltd., and in 2020, the Paycheck Protection Program (the "PPP loan") under CARES Act. On April 25, 2022, we received approval for the formal forgiveness of the PPP loan, and recognized a gain from forgiveness of PPP loan of $4.5 million in other income during the six months ended June 30, 2022.

SolarJuice has sufficient internal liquidity to continue as a going concern for the rest of 2022 based on the level of our current assets and rate of cash used in operations. Our Q2 2022 figures include an unrestricted cash balance of $3.2 million and net working capital of $10.9 million (not including the loan due to parent company SPI Energy Co., Ltd.). We also expect to generate internal cash flow from operations both from SJ Australia and SJ Technology over the remainder of 2022. The expected cash burn for the remainder of 2022 should not exceed the available capital source mention above. For the 12 months, following July 18, 2022, the issuance date of our consolidated financial statements for the year ended December 31, 2021, SolarJuice plans to continue implementing various measures to increase revenue and control the cost and expenses to an acceptable level. Such measures include: (a) improve the profitability of the business in the United States; (b) strictly control and reduce business, marketing and advertising expenses; (c) begin a new line of business involving the assembly of solar modules. The Group also plans to obtain public and private market equity financing and seek credit facilities. We expect SolarJuice to generate cash from operations in Q4 2022, especially from SJ Australia and SJ Technology operations. Moreover, our parent company SPI Energy Co., Ltd. has approximately $13.6 million of unrestricted cash on its balance sheet as of June 30, 2022, which can potentially be accessed through intercompany loans, certain of the Company's officers and directors have and can again make loans to the company, and the Company can potentially raise capital from third-party private investors through various debt and equity investments in the company.

While management believes that the its plans will be adequate to permit SolarJuice to meet its liquidity and cash flow requirements within one year after the date that the consolidated financial statements are issued, there is no assurance that the plans will be successfully implemented. If SolarJuice fails to achieve these goals, SolarJuice may need additional financing to repay debt obligations and execute its business plan.

 ****

***Operating Activities***

 **For the years ended December 31, 2021 and 2020:**

Net cash used in operating activities was $7.5 million for the year ended December 31, 2021, which was primarily as a result of (i) net loss of $22.6 million, (ii) change in inventory of $6.2 million, (iii) change in prepaid expenses and other assets of $3.2 million; the decrease was partially offset by (i) change in accounts payable of $7.5 million and change in advance from customers of $2.5 million, (ii) change in accounts receivable of $1.2 million, (iii) change in accrued liabilities and other liabilities of $1.8 million, and (iv) major non-cash expenses including depreciation and amortization expense of $3.9 million, provision for credit losses of $2.6 million and share-based compensation expense of $3.5 million.

Net cash used in operating activities was $2.6 million for the year ended December 31, 2020, the decrease of cash was primarily as a result of (i) change in inventory of $0.5 million, (ii) change in accounts payable of $4.9 million, (iii) change in amount due from related parties of $0.6 million; the decrease was partially offset by (i) net income of $1.0 million, (ii) change in accounts receivable of $0.9 million, and (iii) change in accrued liabilities and other liabilities of $1.0 million.

 **For the six months ended June 30, 2022 and 2021:**

Net cash used in operating activities was $4.3 million for six months ended June 30, 2022, which was primarily as a result of (i) net loss of $0.6 million and (ii) forgiveness of PPP loan of $4.5 million; (iii) change in accounts receivable of $1.2 million; (iv) change in advance from customers of $1.6 million; the decrease was partially offset by (i) change in accrued liabilities and other liabilities of $0.9 million and change in income taxes payable of $0.6 million; (ii) change in prepaid expenses and other assets of $0.9 million; (iii) change in inventories of $0.5 million; (iv) non-cash items of depreciation and amortization of $0.4 million, accrual of warranty reserve of $0.2 million and amortization of right-of-use assets of $0.1 million.

Net cash used in operating activities was $5.7 million for six months ended June 30, 2021, which was primarily as a result of (i) net loss of $8.1 million, (ii) change in inventory of $5.9 million, (iii) change in prepaid expenses and other assets of $2.9 million, (iv) change in accounts receivable of $0.8 million; the decrease was partially offset by (i) change in accounts payable of $6.4 million and change in advance from customers of $1.7 million, (ii) major non-cash expenses items of depreciation and amortization of $1.4 million and share-based compensation of $2.6 million.

***Investing Activities***

 **For the years ended December 31, 2021 and 2020:**

Net cash used in investing activities was $8.4 million for the year ended December 31, 2021, primarily as a result of the cash paid for the purchase of the PDI assets in the amount of $8.0 million.

Net cash used in investing activities was $0.2 million for the year ended December 31, 2020, primarily as a result of purchase of property and equipment.

 **For the six months ended June 30, 2022 and 2021:**

Net cash used in investing activities was $2.2 million for the six months ended June 30, 2022, primarily as a result of the cash paid for the purchase of property and equipment.

Net cash used in investing activities was $8.3 million for the six months ended June 30, 2021, primarily as a result of cash paid for the purchase of the PDI assets.

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***Financing Activities***

 **For the years ended December 31, 2021 and 2020:**

Net cash generated from financing activities was $2.3 million for the year ended December 31, 2021, primarily as a result of net proceeds from borrowing from a related party

Net cash generated from financing activities was $16.5 million for the year ended December 31, 2020, from an equity funding of $16.0 million from SPI, our parent company. We raised funds to launch operations in the United States and to fund the growth of SJ Australia, and had net proceeds from borrowing of $0.3 million, and a capital injection from SJ Australia's non-controlling minority shareholders of $0.2 million.

 **For the six months ended June 30, 2022 and 2021:**

Net cash generated from financing activities was $9.5 million for the six months ended June 30, 2022, primarily as a result of net proceeds from borrowing from a related party.

Net cash generated from financing activities was $2.2 million for the six months ended June 30, 2021, primarily as a result of net proceeds from borrowing from a related party.

**Trend information**

 **Inflation Reduction Act of 2022 - New and Expanded Production and Tax Credits for Manufacturers and Projects to Support Clean Energy**

On August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022 (the "IRA"). The IRA contains provisions which we expect will have a significant impact on the development and financing of clean energy projects in the United States over the next ten years. The IRA includes a number of key changes relevant to clean energy in the United States, among them the extension of the Investment Tax Credit and Production Tax Credit and the addition of expanded tax credits for other technologies and for manufacturing of clean energy equipment as well as terms allowing parties to more easily monetize the tax credits. The IRA also includes some targeted incentives intended to encourage development in low-income communities and the use of domestically produced materials and compliance with certain prevailing wage requirements. The IRA contains a two-tiered credit-amount structure for many applicable tax credits. Specifically, many of the credits have a lower base credit amount that can be increased up to five times if the taxpayer can satisfy applicable prevailing wage or apprenticeship requirements. In general, under the prevailing wage requirements, the IRA requires all laborers, mechanics and workers to be paid the prevailing wage during project construction (and, during the credit term, for repairs and alterations). Separately and subject to certain exceptions, to meet the apprenticeship requirements, qualified apprentices have to perform an applicable percentage of total labor hours for project construction. Further, the IRA establishes certain options to cure the failure to meet either the prevailing wage or apprenticeship requirements.

We believe that two areas of the IRA will have direct significant benefits for us. First, the impact of the new Section 45X of the IRA will be significant to us, especially our SJ Technology business. Under Section 45X, production credits will be available for each eligible solar component that is produced domestically and sold to an unrelated party. Section 45X credits are based on the type of equipment or material manufactured, how much equipment or material is produced, and certain other criteria. We anticipate that Section 45X will spur United States solar manufacturing to a degree that may not yet be fully appreciated. According to Section 45X of the IRA, the Advanced Manufacturing Production Credit (AMPTC) is available for the production of eligible components which includes solar modules, solar wafers, solar cells produced in the United States and sold after December 31, 2022. The amount of the AMPTC for solar modules are mandated to be $0.07 per module capacity in Wdc. SJ Technology produces "Made-in-America" solar modules under its Solar4America brand. The Section 45X production credit encourages innovation and efficiency because, for example, with respect to certain solar components, credits are tied to the productivity of a solar panel rather than its cost, encouraging companies to manufacture higher-efficiency panels rather than raise prices to increase credits.

Secondly, the Residential Clean Energy Credit under the IRA allows residential customers to subtract 30 percent of solar costs off their federal taxes as a tax credit through 2032. If residential customers install solar energy equipment in their residence any time from 2022 through the end of 2032, they are entitled to a nonrefundable tax credit off their federal income taxes, equal to 30 percent of eligible expenses. There's no dollar limit on those expenses. We believe this increase to a 30% tax credit will significantly enhance SJ America's U.S. residential roofing and solar installation business. According to the Department of Energy, the new IRA's language covers the same expenses to be eligible for this new solar tax credit, as those that were declining under the expiring old law, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Solar photovoltaic (PV) panels.

· PV cells used to power an attic fan (but not the fan itself).

· Contractor labor for onsite preparation, assembly, or original installation.

· Permitting fees, inspection costs, and developer fees.

· All equipment needed to get the solar system running, including wiring, inverters, and mounting equipment.

· Storage batteries. (You can claim the tax credit for these even if you buy and install them a year or more after you install
 the solar system.)

· Sales taxes on eligible expenses.

Our operating results substantially depend on revenues derived from our Australian subsidiary's sales of PV components. As the COVID-19 spread continues, the measures implemented to curb the spread of the virus have resulted in supply chain disruptions, insufficient work force and suspended manufacturing and construction works for solar industry. In light of the rapidly changing situation across different countries and regions, it remains difficult to estimate the extent, duration and/or magnitude of COVID-19's impact on our business. Australia enacted strict restrictions on business activities, due to increased cases of COVID in July 2021, and the City of Sydney, where SolarJuice Australia is headquartered, enacted more restrictions than other areas. Most indoor businesses such as SolarJuice Australia are closed, and employees are working remotely. The construction industry, including solar installation, was also prohibited for a period, but was among the first group of industries permitted to re-open (subject to potential further restrictions based on case numbers). With the rapid increases in vaccination rates and seasonal changes, we expect that solar installation, conducted mostly outdoors, to remain open. Results for SJ Australia are likely to be negatively impacted by the COVID restrictions.

Other than as disclosed elsewhere in this prospectus, we are not aware of any trends, uncertainties, demands, commitments or events for 2020 and 2021 or since the beginning of the current year that are reasonably likely to have a material effect on our net revenues, income, profitability, liquidity or capital resources, or that would cause reported consolidated financial information not necessarily to be indicative of future operating results or financial conditions.

***Off-Balance Sheet Arrangements***

We have not entered into any financial guarantees or other commitments to guarantee the payment obligations of any other third parties. We have not entered into any derivative contracts that are indexed to our own shares and classified as shareholder's equity, or that are not reflected in our consolidated financial statements. We do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. We do not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing, hedging or research and development services with us.

***Tabular Disclosure of Contractual Obligations***

The following table sets forth our contractual obligations as of June 30, 2022:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Payment due by period** | **Payment due by period** | **Payment due by period** | **Payment due by period** | **Payment due by period** |
| | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** |
| <br>**Contractual Obligations** | **Total** | **less than<br> 1 year** | **1-3 years** | **3-5 years** | **more than<br> 5 years** |
| Borrowings | $9074 | $9074 | $– | $– | $– |
| Operating lease obligations | 4448 | 754 | 2151 | 1386 | 157 |
| Total | $13522 | $9828 | $2151 | $1386 | $157 |

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**BUSINESS**

**Overview**

SolarJuice provides solar photovoltaic (PV) based energy solutions and roofing installation for residential and small commercial building markets in Australia and the United States. Through three main business units, SJ Australia, SJ America and SJ Technology, we wholesale and distribute PV modules, solar energy inverters, batteries and storage devices, other solar "balance of system" ("BOS") components and accessories to commercial customers located in every state and territory of Australia. We are also a roofing contractor and resell and install solar energy systems to residential and commercial customers in the US; and design, manufacture, and sell PV modules and related products to customers. SJ Australia is a leading wholesaler of PV systems and components in Australia, and SJ America installs solar energy systems, energy storage solutions, and roofs in five states in the United States: California, Nevada, Texas, Colorado and Florida. Our newest domestic business line SJ Technology produces and sells solar modules in the US.

SJ Australia, our 80%-owned Australian subsidiary, distributes popular brands of solar PV modules solar energy inverters, batteries and storage devices, other solar energy system components, and accessories to over 5,000 commercial customers located in every state and territory of Australia, as well as New Zealand, and several Pacific islands. SJ Australia was established in 2009, is one of Australia's largest importers of solar-related products, and has also designed and introduced its private label line of "Opal" products, including solar modules energy storage systems.

SJ America is our wholly-owned US subsidiary which installs solar energy systems, energy storage solutions, and roofs in five US states: California, Colorado, Florida, Nevada, and Texas. SJ America engages in the solar panel installation and residential roofing business, under the trade names Solar4America and Roofs4America. SJ America performs retail installations, as well as commercial projects for some of the nation's largest builders and developers, is one of only a few residential solar panel installation companies with extensive roofing experience, and employs approximately 270 solar energy system and roofing installers.

SJ Technology launched its solar module factory in McClellan Park, California, which commenced pilot production in the second quarter of 2022 and began delivering Solar4America brand modules to customers weekly during the third quarter of 2022. SJ Technology intends to sell most of our American-made solar modules under our own "Solar4America" brand, to distributors, project developers and system integrator customers, and sell a small portion of solar modules on an OEM basis. We have entered into purchase and other agreements with various suppliers including Jincheng, Sunergy and Autowell to purchase additional manufacturing equipment and expand of our production capacities. In August 2022, we subleased additional space, with a total floor area of 56,000 square feet, adjacent to SJ Technology's current solar module manufacturing facility at McClellan Park. We expect that our annual production capacity at the McClellan Park facility will expand to approximately 650MW of solar modules this year once all the solar module assembly equipment is fully assembled and ready to commence production. We expect that our production capacity will be further increased to 2.4 GW per year by the end of 2023 as the result acquiring and putting into operation additional solar module assembly equipment and coupled with the complete utilization of the additional 56,000 square feet facility in McClellan Park, California as well as bringing on a new facility on the East Coast of the United States. We expect that sales of solar modules will be a significant future revenue source for the Company, and we expect to sell increasing volumes of American-made solar modules in the U.S. markets.

SolarJuice was incorporated in the Cayman Islands, in February 2017, by SPI Energy Co., Ltd. ("SPI") to own 80% of Solar Juice Pty Ltd. SJ Australia was incorporated in September 2009 to be a wholesaler of solar components in Australia. SPI China (HK) Ltd., a company then related to SPI, subsequently in May 2015 acquired 80% of SJ Australia and then in August 2018, SPI sold SPI China (HK) Ltd., pursuant to which SPI China (HK) Ltd. transferred its 80% interest in SJ Australia to SPI. SolarJuice American Inc. ("SJ America") was incorporated in 2019, and SolarJuice Technology Inc. was incorporated in the second quarter of 2021, to hold, respectively, our roofing, and solar module and other technology related operations in the US.

**Introduction to PV Business**

The typical residential or small commercial building solar energy system includes solar modules, an inverter, equipment to mount the modules on a building's roof, and a performance monitoring system that tracks electricity production. The solar modules collect energy from the sun and turn it into electricity, which is passed through the inverter and converted into a form that can be used directly to power a home or commercial building or transmitted into the electrical grid or stored in batteries for later use. The vast majority of residential solar energy systems are connected to the electricity grid (or "grid-tied"). When solar modules are producing more electricity than needed, the excess is fed back into the power grid, and when more electricity is needed than the solar modules are producing, power is drawn from the electric grid. Credits are often given on the utility bill for electricity sent to the grid, which process is known as, "net metering" is required by state law to varying degrees in some US states, in recent years these states have been amending or eliminating these rules.

The following are the principal components of a home solar power system:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Solar modules

· Solar inverter

· Solar racking

· Solar performance monitoring and maintenance

· Solar energy storage

*Solar modules*

A solar module, or photo-voltaic (PV) module, is an assembly of photo-voltaic cells mounted in a rigid metal frame for installation. Solar modules use sunlight as a source of energy and generate direct current electricity, a system of PV modules is called an array. Arrays of a PV system supply solar electricity to electrical equipment, the solar modules are the key elements of a solar energy power system, and have the essential distinguishing attributes of efficiency, cost, warranty, and technology type.

The two types of solar modules most suitable for residential solar installations are monocrystalline and polycrystalline modules. These perform similarly, although the monocrystalline is slightly more efficient and a little more expensive. The number and placement of solar modules depend on:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The system owner's energy requirements

· Usable roof surface area

· Climate

· Peak sunlight in your location

· Efficiency rating of the solar modules

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Whether net metering is available

A professional solar installer can help calculate the number of solar modules to create the most cost-effective system, and online calculators are also available for this purpose.

*Solar inverter*

An inverter converts direct current (DC) electricity generated by the solar module into alternating current (AC) electricity for use in a home or building or transmission to the electrical grid. DC electricity is maintained at constant voltage in one direction, and AC electricity flows in both directions in the circuit as the voltage changes from positive to negative. Inverters are just one example of a class of devices called power electronics that regulate the flow of electrical power, and come in three types:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· String or centralized inverters: These are connected to multiple modules
 and are the least expensive, but can be inefficient because there is potential production loss if there is shading on the roof, which
 can cause the entire string of modules to turn off

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Microinverters: These inverters are more expensive, but generally result
 in a more efficient overall solar system. They are attached to each solar module, allowing for smooth operation, even when some modules
 are shaded

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Power optimizers: Installed in each module, power optimizers optimize
 the DC output of each PV module, which then transmits to a string inverter for conversion to AC power. They are less expensive than
 micro inverters, but slightly more expensive than string inverters

*Solar racking*

Also called PV mounting systems, a solar racking system is used to safely affix solar modules to various surfaces such as roofs, building facades, or the ground, and is designed to easily be retrofitted to existing rooftops and structures. Solar modules are not attached to the roof directly, but are mounted on racking systems, which are attached to the roof and angled for the optimal degree of sun exposure.

The inverter, racking, connections and wiring are known as the "balance of system."

*Solar performance monitoring*

Solar power system performance monitoring is used for several purposes, to creating a performance baseline, failure detection, and scheduling service and cleaning. A monitoring system shows how much electricity the solar power system is generating per hour, per day, or per year.

An online monitoring and maintenance system is contained in a cloud-based software that collects data from hardware, such as optimizers, inverters, or energy storage systems installed at customer's site. The data are transmitted to the cloud-based software through a cellular network or local internet, then the data and system status information will be further analyzed by the software, and information is presented, selectively, to the end users, installers, or regional distributors. Some sophisticated software can remotely perform equipment diagnostics and solve technical issues.

*Solar energy storage*

Batteries can be used to store energy produced by solar modules for later use, and some solar batteries are integrated with built-in, two-way inverters that can be connected directly to a customer's electrical system. When solar modules are producing more electricity than needed, the excess energy can be used to charge batteries, which can then provide power when the solar modules are not producing electricity. Power is sent to the grid only when the battery is fully charged, and batteries also offer short-term backup power during a power outage.

**SolarJuice's Business**

SolarJuice, through its subsidiaries, is engaged in three lines of business: wholesale distribution through SJ Australia, solar energy system and roof installation through SJ America, and manufacturing and sale of solar modules through SJ Technology.

We can offer end-to-end clean energy solutions for residential and small commercial clients. We believe that we are uniquely positioned to combine the product sourcing of SJ Australia, product design and manufacturing capacity of SJ Technology with the installation expertise of SJ America to form a complete value chain of residential and small commercial building PV system requirements. We can review the whole value chain for opportunities to lower cost and improve performance for our customers*.*

**SJ Australia – Wholesale and Distribution**

SJ Australia wholesales solar modules, solar inverters, mounting, monitoring systems, battery storage, and other BOS components in Australia through nine Australian warehouses which SJ Australia maintains in Sydney, Melbourne, Brisbane, Adelaide, Perth and Townsville, as well as a warehouse in Singapore, offices in Southeast Asia and a warehouse and other offices servicing the Southeast Asian Pacific region.

SJ Australia benefits from its well-established experience and scale as a leading supplier Australian for roofing product installers in Australia. We relatedly believe that our nationwide customer base and educational programs make SJ Australia a preferred distributor to introduce new products into the highly fragmented Australia market.

The Australian solar installation market is populated by approximately 8,000 contractors having fewer than five employees. Over 5,500 contractors have opened accounts with SJ Australia, and our current active user count (which we define as having made a purchase in the past 3 months) is over 1000. Compared to total solar and storage installation volumes, as published by Clean Energy Council, SJ Australia's 2021 total inverter sales of over 342MW, total module sales of over 157MW, and total battery sales of 43MW were equivalent to approximately 10% in total roof-top PV and residential storage installation in Australia in 2021, and SJ Australia has firmly established itself as one of Australia's leading solar distributors. For comparison, there are over 1,400 Clean Energy Council approved solar retailers.

We also design and distribute our own solar energy storage products, under the brand name Opal Storage, to offer customers additional value-for-money choices. Opal Storage products are designed by SJ Australia, and include features, such as battery management system (BMS), inverter in cabinet, solar array DC switch, and battery DC circuit breakers, with all AC circuit breakers built in. SJ Australia sells its Opal brand of products through its distribution network. SJ Australia has sold combined of 7.5MW Opal brand solar modules and 3.7MW Opal brand solar invertors in 2020 and 2021.

SJ Australia competes by its:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· *Scale and cost to clients*. Scale enables SJ Australia to offer
 competitive prices, payment terms and delivery from its suppliers, and enables us to drive down overhead costs, which we, in turn,
 pass on to clients. Scale is also reflected in the density of our warehouse locations, which affects delivery costs.

· *Product mix*. As a wholesaler, SJ Australia can identify and
 focus resources on high turnover, high margin profitable products, as well as low turnover or low margin products essential to our
 being a full-service distributor. Determining the proper mix for these two types of products is key to successful wholesaling.

· *Product knowledge*. SJ Australia identifies and builds consensus
 with its clients regarding the merits of profitable products, and we share this expertise through online and offline promotion activities.

· *Service*. SJ Australia offers after sales services such as return,
 exchange, warranty and local technical support in addition to our product education and training services.

· *Access to liquidity*. Wholesalers must continuously invest in
 working capital to carry more products to maintain revenue growth. We established an accounts receivable factoring facility with
 Scottish Pacific in 2019 and expect to continue to improve our access to liquidity through a combination of equity and loans.

We compete in Australia, primarily, with One Stop Warehouse, a privately owned, country-leading solar distributor located in five Australian states.

SJ Australia's value proposition is to offer its clients:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· one stop shopping for solar and storage products

· availability of leading brands that elsewhere are in short supply

· product knowledge and industry insights through product and training
 events such as Portfolio Nights and Training Roadshows across Australia (pre-COVID-19); since March 2020 SJ Australia has continued
 its customer educational programs by expanding its social media sharing with videos, podcasts and contents in words and pictures

· local post-sale services such as return, exchange, and technical support

SJ Australia plans to continue to improve its financial performance by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· focusing on high volume good margin products, reducing the number of
 key brands we carry for each of the four major categories (module, inverter, battery and mounting) to approximately six, three, two
 and two, respectively

· seeking access to cheaper sources of capital with higher credit limits

· deepening relationships with top tier manufacturers by growing sales and continuous co-marketing

· building the "SolarJuice" and "Opal" brands by continuous industry outreach
 and marketing efforts

· opportunistically capturing other customer categories; in March 2021
 SJ Australia contracted with the Aboriginal Housing Office of New South Wales, Australia, to supply PV systems to up to 2,600 properties
 in the state, representing up to 8.5MWs to be installed over a 12-month period. This project was completed by the end of June 2022.

**SJ America - Roofing and Solar System Installation**

SolarJuice American Inc., or, "SJ America," d/b/a Roofs4America, installs roofing products and roof-top solar energy systems for developers, general contractors, residents and small businesses, as well as other residential clean energy systems, such as battery storage and electric vehicle ("EV") chargers. SJ America services both businesses ("B2B") and consumers ("B2C") through eight office/warehouse facilities in California, Colorado, Florida, Nevada, and Texas.

The home building industry puts high emphasis on long-term relationships, and timely delivery with minimal quality issues/accidents for securing recurring contracts and revenues. We believe that PDI's bankruptcy has hurt SJ America's reputation with suppliers regarding its payment practices and with clients regarding service warranties, however, it did not affect the ability and reputation of the skilled craftsman formerly employed by PDI to properly design and install quality roofs. SJ America has hired many skilled craftsmen formerly employed by PDI, and we believe that these experienced craftsman continue to capably and timely perform solar and roofing product installations. SJ America is rebuilding and forging new relationships with clients and reputation with suppliers through timely work performance and payments, and we expect to fully leverage the reputation of our skilled and experienced employees.

Our commercial roofing clients are home builders, commercial real estate developers, and general contractors. We bid for installation contracts based on their existing roofing designs, follow their overall construction schedule to order materials for delivery to the job sites, and dispatch our crews to the job sites to install the solar and roofing products.

We offer our solar product customers a full range of services, including design, system engineering, procurement, permitting, construction, warranty, and, provide grid connection, system monitoring and system maintenance; we obtain interconnection permission from the applicable local primary electric utility for grid connection. Depending on the size of the solar energy system and local law requirements, interconnection permission is provided by the local utility to us or our customer. Interconnection permissions are typically issued on the basis of a standard process that has been pre-approved by the local public utility commission or other regulatory body with jurisdiction over net energy metering procedures, and no additional regulatory approvals are typically required once interconnection permission is given.

SJ America has extensive knowledge of roofing among domestic rooftop solar energy system installers, enabling us to minimize the risks of defective designs or improper installations and to increase our addressable market and margin opportunities. A roof might be unable to support the weight of a solar system, or its installation might cause leaks, and we are responsible for all such considerations, so that our customers avoid having to determine whether the roofer or solar installer is responsible for a proper installation.

We believe that our expertise will improve our competitive position in California, where we generate approximately 80% of SJ America's revenue. California requires all new single-family and multi-family homes to install solar energy systems beginning in 2020. We note that approximately 18% of our home builder roofing contracts in California include a solar installation component, and homeowners in other regions that typically have re-roof demands due to hurricanes, such as Houston, increasingly embrace solar installations.

When extreme weather causes roof damage, as well as power outages, our re-roofing business provides opportunities to sell our complementary battery storage products as back-up power supplies. We note that approximately 20% of our B2C solar clients also indicate an interest in purchasing batteries, and, with the current shortage of batteries we have been able to sell our private label products. We have also introduced our commercial battery products to some of our B2B clients for use at hotels and hospitals that need back up generation, and such sales involve minimum additional marketing and sales cost.

 

*Petersen Dean Transaction*

SJ America entered the solar and roofing products installation business in February 2021, upon acquiring certain assets from PDI, which was founded in 1984, and specialized in residential roofing and solar installations in California, Colorado, Florida, Nevada, and Texas. PDI partnered with some of the nation's largest builders and developers for their roofing and solar product installations.

PDI filed a proceeding under Chapter 11 of the Bankruptcy Code, in June 2020, following the onset of the COVID-19 pandemic. The bankruptcy court organized several rounds of asset auctions, starting in October 2020, and various asset packages were auctioned, such as trucks, furniture, and battery units. SJ America participated in two of the court-organized sales, emerging as the highest bidder in both, one for both PDI's remaining consumer division assets and one for PDI's remaining commercial division assets in the final auction.

An auction was held on December 14, 2020 and SolarJuice's parent company SPI entered a successful bid of $875,000 for the consumer division assets, and the Bankruptcy Court issued an order on December 28, 2020 approving the sale of PDI's consumer division assets to SPI. SJ America paid $875,000 in cash on January 6, 2021 to complete the purchase of PDI's consumer division assets, consisting of approximately 1,200 unfinished consumer contracts, and we view this purchase as a purchase of 1,200 consumer leads.

A subsequent auction was held on December 21, 2020 to sell substantially all of the remaining assets of PDI's commercial division. SJ America entered a successful cash bid of $7,850,000, along with an assumption of up to $11,000,000 of PDI's obligations under the DIP Facility, which is pledged by the accounts receivable of PDI factored as of the acquisition date, which totaled $11.8 million. The cash amount subsequently was reduced to $6,850,000 following due diligence, which found many vehicles and lifts listed on court-provided asset schedules to be missing, and SJ America found some of the accounts receivable of doubtful quality.

SJ America entered into an Interim Management Agreement ("IMA") with PDI, on January 13, 2021, which allowed SJ America access to PDI's employees and operations to conduct due diligence before closing on the purchase of the commercial division assets. SJ America mainly learned about the solar and roofing product installation business operations and reviewed the quality of PDI's assets. The IMA gave SJ America the right, but not the obligation, to fund the PDI operation if necessary, however as there was no guarantee that SJ America would close the purchase or recoup such funding, SJ America only funded a one-time material purchase in February 2021, after LSQ agreed to reimburse SJ America for such funding from receivable collections.

SJ America and PDI entered into an Asset Purchase Agreement ("APA"), on February 5, 2021, for purchase of the commercial division assets. The APA is filed as Exhibit 10.2 to this Form F-1 and is incorporated herein by reference. The closing of the APA occurred on February 25, 2021, following the Bankruptcy Court's approval, and on February 5, 2021, SJ America entered into an Assignment and Assumption Agreement regarding the DIP Facility with PDI, LSQ, and other PDI creditors, pursuant to which SJ America agreed to assume PDI's obligations under the DIP Facility up to $11,000,000. SJ America entered into an Amended and Restated Invoice Purchase Agreement ("AIPA") with LSQ, on February 24, 2021, pursuant to which SJ America acknowledged that LSQ purchased all of PDI commercial division accounts receivable that were eligible for purchase under LSQ criteria, and that SJ America will continue to sell accounts receivable from commercial clients that it generates to LSQ. SJ America is responsible to settle the remaining part of the facility if the collection of the factored accounts receivable is not able to cover the loan balance, and if there is any excess amount on the factored accounts receivable after the LSQ loan is fully repaid, remaining factored accounts receivable will be released to SJ America. The AIPA is filed as Exhibit 10.3 to this Form F-1 and is incorporated herein by reference.

SJ America purchased all of PDI's remaining commercial division assets, pursuant to the APA, including equipment, inventories and supplies, assumed the majority of PDI's work-in-progress executory contracts and certain unexpired leases, obtained most of PDI's commercial customer lists, books and records, and other intangible assets such as trademarks, service marks, trade names, websites and domain names.

PDI terminated all of its 357 employees upon the closing of the APA, and SJ America subsequently hired 321 of those employees, subject to a 90-day observation period, however, SJ America did not hire executives from PDI. PDI lost its CEO and CFO after the bankruptcy filing, and, in February 2021, the only remaining executive was its COO, whom SJ America did not hire. SJ America has been actively building its own management team including the hiring of a Chief Financial Officer, a Chief Product Officer, a Chief Technology Officer, a Chief Operating Officer and a senior vice president for consumer operations. The Chairman and the CEO of SolarJuice, and the new management team are integrating the new employees and rationalizing our business, including a new organization structure and new reporting lines, pay grades and incentive programs, subscribing to and implementing new customer relationship management ("CRM") and enterprise resource planning ("ERP") systems; and adopting our parent SPI's policies and procedures, regarding contract approval, payment application, and headcount addition. SJ America has launched the B2C business and the Product Development business to fully utilize PDI's B2B infrastructure.

*B2B*

Our B2B business includes installing roofing and solar energy system products for homebuilders, commercial building developers, and general contractors of low-rise commercial building development projects, which includes installing roof top solar energy systems on new homes for PPA providers, and preparing roofing product systems for solar energy system installations for other residential solar companies. SJ America has approximately 100 active roofing product installation clients, of which 18 clients in California engage us for solar pre-installations.

The residential and small commercial building developer roofing products business in the US is a fragmented, localized industry. The process of bidding, clearing and billing projects can vary meaningfully between municipalities within a state due to local licensing, safety, environmental, and building code requirement, which factors act as impediments to entering new markets, and typically results in each local market having about four to five installers with stable gross margins within each local market. The availability of trained roofing workers also affects local market margin, and, in markets with higher living costs, such as the California Bay Area, workers are more scarce and gross margins are over 30%, whereas in markets with lower living costs and more available workers, such as Fresno, California, margins are approximately 20%.

Within each local market, roofing companies compete based upon their ability to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· provide the working capital for construction, as they need to first
 purchase materials and labor, then issue milestone-based or periodic billings according to their contracts, which typically have
 45 to 60 day payment terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· negotiate better payment terms with suppliers, including credit terms, which typically are 30 to
 60 days, and potential discounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· attract skilled workers, who need special training in safety and materials
 handling, construction activities are seasonal, and roofing companies compete with each other or other construction trades, in general,
 in the warmer, dryer seasons to complete jobs on schedule; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· attract managers to oversee workers, the timeliness and quality of work, and safety issues.

SJ America' value proposition to its B2B clients is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· *Our expertise in single-family/ multi-family /low rise commercial buildings roofing product installation*. SJ America has hired key former PDI personnel, such as operation
 managers and superintendents, who have significant technical expertise regarding these types of roofs.

· *We provide roofing and solar energy system and storage product installations.* The California Solar Mandate, a building code that became effective January 1,
 2020, requires new residential construction to have a solar system for single-family homes and multi-family homes up to three
 stories high. SJ America's strength in both roofing and solar energy system products allows home builders to avoid disputes
 between separate roof and solar installers if quality issues arise. Power outages resulting from extreme weather in Texas in
 2021 and wildfires in California in 2019 have increased contractors' interest in companies that can offer combined solar
 and storage products for alternative power sources.

· *Multi-state presence and transparency as part of a public company*. Upon the effectiveness of this offering, we will be a public company and believe that our transparency as
 a public company, compared with smaller privately owned local competitors, will help us procure new contracts.

SJ America plans to improve its financial performance by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· aggressively bidding on new contracts: Given the stable
 margins in each local market, bidding is more focused on relationships and persuasion rather than price competition. SJ America entered
 the market at the end of the first quarter of 2021, when the annual contract award cycle almost concluded. With proper execution
 of the contracts that we did win, and the preparation work we have started for 2022 bidding, we believe that we will begin winning
 a sufficient share of contracts to become profitable;

· seeking access to cheaper sources of capital with higher credit limits;

· deepening the relationship with key suppliers by building and expanding
 credit lines;

· seeking opportunities to acquire solar and storage assets and businesses
 to increase scale.

*B2C*

SJ America's business includes re-roofing and sales of roof-top solar energy systems, energy storage systems, and EV chargers for homeowners. SJ America has built a team of over 10 people since March 2021, including sales, designers, permitters, project coordinators and customer service workers. We employ the same installers, superintendents, facilities, and vehicles and equipment as we dispatch for our B2C services in states in which our B2B business already operates.

The B2C re-roofing and solar energy product installation industry in the US is more fragmented than the B2B business. Over 4,000 contractors are licensed to do roofing in California, and all of the over 60,000 licensed electricians can install solar energy systems. While some of our competitors have greater financial resources, operational experience and technical capabilities than we do, our current experience suggests that there is no clear dominant or preferred competitor in the markets in which we compete. We do not believe that any competitor has more than 10% of the market across all of the areas in which we operate. We compete with other solar installers on pricing, service, and the ability to arrange financing, and believe our competitors include national brands, such as Sunrun Inc., and regional competitors, such as Sunworks, Inc.

Companies such as Sunrun enter into solar PPAs with their customers. A PPA is a financial agreement where the provider arranges for the design, permitting, financing and installation of a solar energy system on a customer's property at little to no cost to the customer. The provider sells the power generated to the host customer (the property owner) at a fixed rate that is typically lower than the local utility's retail rate. This lower electricity price serves to offset the customer's purchase of electricity from the grid while the developer receives the income from these sales of electricity, as well as any tax credits and other incentives generated from the solar energy system. PPAs typically range from 10 to 25 years, and the developer remains responsible for the operation and maintenance of the system for the duration of the agreement. Potential solar system customers may prefer a PPA to an installation by SJ America.

SJ America's value proposition to its B2C clients is to offer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· *Combined roof and solar technical expertise:* We
 understand the structural issues involved in mounting solar modules on a roof and can appropriately evaluate and design the new roof
 or solar system.

· *Provide roofing, solar, storage and EV charger products:* Our competitive strength has become more important in our marketing and sales with the increased demand for storage
 units due to recent extreme weather in California, Texas, and elsewhere and the increased adoption of EV.

· *Choices for best value with our own Solar4America brand modules and batteries:* Our products are all from tier one manufacturers, accompanied with top tier design/installation/customer
 services.

We plan to improve SJ America's financial performance by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· increasing the size of our sales team through a combination
 of in-house sales employees, commission-only direct sales contractors, and franchisees

· leveraging our B2B infrastructure for design, permitting
 and installation, and building up subcontractor and franchise networks in states outside of our current B2B footprint

· continuously seeking better financing solutions for
 consumers by working with leading lenders or PPA providers

· seeking opportunities to acquire assets and businesses
 to provide roofing, solar, storage, EV charger and maintenance products and services

· promoting the Solar4America brand since we believe
 that our brand's distinctive name and visual design will distinguish us from the rest of the residential solar industry, and,
 with our supply chain management ability provided by our product development segment, investment in this brand can improve profitability
 of both installation and product sales. We have launched our cloud-based energy management software, and we plan to invest in our
 customer loyalty and referral program. We believe that our online platforms will generate ongoing, positive contacts with owners
 of residential and small commercial buildings post installation, and change the norm of a one-time sale relationship into a recurring
 business, including system maintenance plans, software-based system management service, easy design and add on for storage or electrical
 vehicle charger units, expansion of system sizes and connection to other nearby solar system to form a virtual power plant. We believe
 an integrated online platform will maximize our strength in both B2C service and product development, and differentiate the Solar4America
 brand from other residential solar installers.

SJ America purchases materials from leading distributors in the construction and PV industries. We also purchase key solar components, such as modules and batteries from suppliers in Asia and in the US SJ America plans to offer its Solar4America private-label products as its standard, with third-party products as premium choices for consumers.

*Product Development*

We believe product design is a driving factor to distinguish our products from others with similar technologies, and price is the key factor in choosing our branded product over a legacy solar brand. We have consequently initiated a strategy to have the SPI affiliates collaborate to design and order products from OEM suppliers for solar modules, energy storage units, batteries, and other complementary products with our proprietary designs.

SJ America sells our Solar4America brand of solar modules and energy storage systems specially designed for the US market through its multiple sales channels. The 7.6kWh and 11.2 kWh average sized energy storage systems are designed for typical household 200A electricity distribution modules. We plan to build our own distribution network through ecommerce, an in-house sales team or independent sales representatives, and distribution partners leveraging our existing installation sales channels.

SJ America launched its cloud based online monitoring and maintenance software system on June 3, 2021. This cloud-based software transmits data collected from Solar4America equipment, such as hybrid inverters, energy storage systems, or EV chargers installed at each customer's site to our cloud-based servers through the cellular network. The data and system status information is further analyzed by the software automatically, and related information is selectively presented to the end users, installers, or regional distributors and system administrators. Our proprietary software can diagnose and help solve technical issues remotely, lowering our customers' maintenance and service costs.

SJ America plans to launch its e-commerce platform in the third quarter of 2022. The platform will include on-line stores on our own website and stores opened with larger e-commerce platforms. We plan to launch a new line of Solar4America off-grid energy products, such as 100W-200W solar modules, foldable solar modules, portable power stations, solar charge controllers, and battery charging management systems that are specially adapted for mobile applications, recreational vehicles, boats, camping and DIY solar kits for homes. By launching this category of products under the Solar4America brand, we hope to create significant online presence online and generate brand awareness among our targeted consumer groups. We believe there will be significant synergy between our e-commerce business and our roofing and other off-grid solar and roofing businesses, as the products are complementary and should create repeated exposure to the same potential customers.

We compete with other branded manufacturers of solar modules, energy storage systems and inverters in this segment, some of which have more significant resources or, are our suppliers. We believe our long-term market position and brand awareness in our specific markets can help us to sell our own branded products despite our smaller scale, if we offer specialized designs and provide the full range of products and tailored services. For example, Solar4America battery products come with a built-in inverter, which can lower the overall system cost by eliminating the need for a separate inverter if we simultaneously install both the roof top solar system and the battery. We plan to roll out 20KWh battery products to match our small commercial-building roof-top systems, and we are evaluating snap-on designs for the frame of our private-label modules which, although adding to the cost of the modules, can provide cost savings during installation. We believe that we have advantages when directly interacting with end consumers directly through our sales and installation services, and are one of the few solar companies that offer services from product development, supply chain management, installation and ongoing management and maintenance; we have the visibility on costs and benefits for each step of the process, and can design our products and services from both the upstream and downstream perspective in the value chain to optimize the cost and benefit tradeoffs, bringing overall lower costs to our end customers.

Competition in this segment is primarily based on technology innovations, product reliability and performance, customer service and supply chain management, which drive improved performance and lower costs. Our product design distinguishes our products from those with similar technologies, and, in addition, price is a key variable for adopting an in-store versus OEM brand. We also believe that offering the full range of client-centric service is an effective means of building our brand image.

We plan to improve the performance under this business line through:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· leveraging the infrastructure of our B2C sales network,
 since approximately 20% of our B2C clients for roof-top solar energy systems indicate that they also want an energy storage unit,
 and we have only recently launched our Solar4America brand of batteries. We expect that will be able to employ better product education
 to clients regarding the merits of pairing the solar energy systems with battery units and the merits of Solar4America's own
 battery, such as the built-in inverter, which can eliminate the need for another inverter for the solar system and lower overall
 costs.

· utilizing our reach to small commercial builders to
 target niche B2B markets, such as hospitals, medical offices and hotels, in which backup power is required, and sell our storage
 units as an alternative to diesel generators, which are more expensive to maintain.

· building our dealership network with small to mid-size
 regional distributors of solar products who have stronger influence over their clients' product choices, and incentivizing
 sales through commissions to both dealers and installers.

· launching off-grid products through our e-commerce platforms or cross sell
 to B2C clients.

We believe that there are strong synergies between the infrastructure we are building for our B2C business and the technology and supply chain management capacity we are developing with our products. We also believe that because of the sales and installation service that every residential solar company needs to offer, our senior management team will have significant PV industry knowledge and experience that can be shared with our customers.

*Government Regulations, Incentives, and Subsidies*

We hold all required licenses for roofing and solar product installation in the states and localities in which we operate.

We must comply with various federal and state laws and regulations, including OSHA, and Cal/OSHA for projects in California. We have to comply with the Department of Labor with respect to wage, hour and labor laws throughout the states within which we operate, and the Department of Industrial Relations in California also regulates payment of wages, overtime, meals, rest and break period compliance.

US federal, state and local government bodies and utilities provide incentives to end-users of solar energy systems to promote solar electricity in the form of rebates, tax credits and other financial incentives such as system performance payments and payments for renewable energy credits associated with renewable energy generation. The incentives enable us to lower the price we charge our customers for solar energy systems, however, these incentives may expire on a particular date, end when the allocated funding is exhausted, or be reduced or terminated as solar energy adoption rates increase. The reductions or terminations often occur without warning, and applicable authorities may adjust or decrease incentives or include provisions for minimum domestic content requirements or other requirements to qualify for these incentives. The reduction, elimination or expiration of such incentives or delays or interruptions in the implementation of favorable federal or state laws could substantially increase the cost of our systems to our customers, resulting in a significant reduction in demand for our solar energy systems, which would negatively impact our business.

The market for solar energy systems is heavily influenced by foreign, federal, state and local government regulations and policies concerning the electric utility industry, as well as policies adopted by electric utilities. The regulations and policies often relate to electricity pricing and technical interconnection of customer-owned electricity generation. For example, a majority of states have a regulatory policy known as net energy metering, or "net metering", which allows our customers to interconnect their on-site solar energy systems to the utility grid and offset their utility electricity purchases by receiving a bill credit at the utility's retail rate for energy generated by their solar energy system that is exported to the grid and not consumed on-site. A customer consequently pays for the net energy used or receives a credit at the retail rate if more electricity is produced than consumed. Net metering is being replaced in certain states with lower credits for the excess electricity sent onto the grid from solar energy systems, and utilities are imposing minimum or fixed monthly charges on owners of solar energy systems. Such regulations and policies have been modified in the past and may be modified in the future in ways that can restrict the interconnection of solar energy systems and deter purchases of solar energy systems by customers. Electricity generated by solar energy systems also competes most favorably in markets with tiered rate structures or peak hour pricing that increase the price of electricity when more is consumed. Modifications to these rate structures by utilities, such as reducing peak hour or tiered pricing or adopting flat rate pricing, could require the price of solar energy systems to be reduced in order to compete with the price of utility generated electricity.

**SJ Technology - Manufacturing**

SJ Technology opened our first United States solar module assembly factory in McClellan Park, California in January 2022 which commenced pilot production in the second quarter of 2022. SJ Technology intends to sell most of our American-made solar modules under our own "Solar4America" brand, with a small portion of solar modules on an OEM basis, to customers which include distributors, project developers and system integrators. We subleased existing solar module manufacturing facilities with a total floor area of 139,100 square feet located in McClellan Park, California, acquired certain pieces of solar module assembly equipment from Sunergy California LLC, and additional solar module assembly equipment from YingKou JinChen Machinery Co Ltd and Wuxi Autowell Supply Chain Management Co Ltd. to expand our capacity at the McClellan Park facility and are hiring an expanded workforce to increase our solar module assembly operations. We expect that our production capacity will expand to approximately 650MW solar modules by the end of 2022 once all the solar module assembly equipment is fully assembled and ready for production. We believe that SJ Technology is poised to exploit this growth trend in domestic solar energy power demand with our expanded facility in McClellan Park, California as we intend to build annual solar module production capacity of 650MW by the end of 2022. We expect that our production capacity will be further increased to 2.4 GW per year by the end of 2023 as the result acquiring and putting into operation additional solar module assembly equipment and coupled with the complete utilization of the additional 56,000 square feetfacility in McClellan Park, California and well as bringing on a new facility on the East Coast of the United States.

We expect that sales of solar modules will be a significant future revenue source for the Company and expect to domestically assemble and sell increasing volumes of American-made solar modules.

Our solar modules utilize advanced solar technologies, such as the PERC technology and half/full cell technology. PERC solar cells are modified conventional cells that enable the cells to produce 6 to 12 percent more energy than conventional solar modules, and PERC solar cells have an extra layer within the back side of the cell which allows some of the sun's rays to reflect back into the solar cell, generating more solar energy. Our high-quality manufacturing capabilities have enabled us to produce solar modules meeting the industry's highest performance standards, and all of our American-made solar modules sold in North America are UL certified.

*SJ Technology Products*

SJ Technology produces "Made-in-America" solar modules under its Solar4America brands.

We believe having our own branded products provides greater opportunities to differentiate us in a competitive market. We have found that having our own company products can set us apart from competition when certain products are in short supply in the market, such as the current United States market for "Made-in-America" solar modules, which accelerate our brand and product penetration into the United States domestic market.

We commenced producing solar modules in the second quarter of 2022, expect that sales of solar modules will be our largest revenue source in the future, and we expect to sell increasing volumes of American-made solar modules in the United States.

*Manufacturing Process*

Solar modules are produced by interconnecting multiple solar cells into desired electrical configurations through welding. The interconnected solar cells are laid out and laminated in a vacuum with laboratory details, and through these processes and designs, the solar modules are weather-sealed, and thus are able to withstand high levels of ultraviolet radiation, moisture, wind, transportation damage and sand. Assembled solar modules are packaged in a protective aluminum frame prior to testing.

*Raw and Ancillary Materials*

The raw materials used in our manufacturing process consist primarily of solar cells, EVA, tempered glass, aluminum frames, back sheets, junction boxes and other related consumables. The prices of raw materials have been subject to significant volatility, and we procure these materials from third parties on a monthly basis. See "Item 3. Key Information—D. Risk Factors—Risks Related to Our Business and Industry—Volatility in the prices of silicon raw materials makes our procurement planning challenging and could have a material adverse effect on our results of operations and financial condition."

We may not be able to obtain sufficient raw materials in a timely manner or on commercially reasonable terms, which could have a material adverse effect on our results of operations and financial condition. Suppliers under our raw materials supply contracts might delay deliveries for a significant period of time without incurring penalties, and our supply of silicon or other raw materials is subject to the business risk of our suppliers, some of whom have limited operating history and limited financial resources, any one or more of which could go out of business for reasons beyond our control in the current economic environment.

*Customers and Markets*

SJ Technology intends to primarily sell our solar modules under our own "Solar4America" brand, while also producing a small portion of solar modules on a private label basis, to our customers including distributors, project developers and system integrators in the residential, commercial and industrial domestic market segments. We believe having our own branded products provides greater opportunities to differentiate us in a competitive market. Management believes that based, on its's Chairman's and CEO's prior experience with making solar modules at other companies, SJ Technology's products can distinguish us from competition when certain products are in short supply in the market, such as the current market condition for "Made-in-America" solar modules in the United States, which we expect will accelerate our domestic brand and product penetration.

*Sales and Marketing*

We plan to sell solar modules under short-term contracts and by spot market sales, and we expect to negotiate payment terms on an ad hoc basis. We expect to retain a portion of our capacity for our own "Solar4America" solar modules, while maintaining our flexibility to provide private label services to other customers to achieve full capacity operation.

We plan to diversify our product lines and expand our domestic marketing footprint, and we established a sales and marketing center in McClellan Park, California in June 2022, which provides us with convenient access to domestic sales channels. We intend to leverage the human resources and sales offices of SJ America which are located in California, Colorado, Florida, Nevada, and Texas to expand our customer base and increase our market penetration.

We also plan to devote significant resources to developing solar module customers and a stable end-user customer base through establishing diversified sales channels comprising project developers, system integrators, distributors and sales agents and diversified marketing activities, including advertising on major industry publications, attending trade shows and exhibits worldwide as well as providing high quality services to our customers.

*Quality Control*

We employ strict quality control procedures at each stage of the manufacturing process in accordance with ISO9001 and UL61730 Quality Management Standards to ensure the consistency of our product quality and compliance with our internal production benchmarks.

We conduct systematic inspections of incoming raw materials. We have formulated and adopted guidelines and continue to devote efforts to developing and improving our inspection measures and standards on raw materials and production of solar modules. We conduct a final quality check before packing to ensure that our solar power products meet all our internal standards and customers' specifications, and provide periodic training to our employees to ensure the effectiveness of our quality control procedures.

We have a dedicated team overseeing our quality control processes, and have established operation management and project-based customer service teams, aiming to supervise the whole installation process and service our customers in a timely manner, who work collaboratively with our sales team to provide customer support and after-sale services. We emphasize gathering customer feedback for our products and addressing customer concerns in a timely manner.

*Production Safety*

We are subject to extensive US labor and safety laws and regulations, have adopted stringent safety procedures at our facilities to limit potential damage and personal injury in the event of an accident or natural disaster and have devised a number of internal guidelines as well as instructions for our manufacturing processes, including the operation of equipment and handling of chemicals. We distribute safety-related manuals to employees and post bulletins setting forth safety instructions, guidelines and policies throughout our facilities, and note that failure by employees to follow these guidelines and instructions result in monetary fines. All of our new employees undergo extensive safety training and education, and we require our technical staff to attend weekly training programs taught by instructors to enhance their work safety awareness and ensure safe equipment operation. We conduct regular inspections and our experienced equipment maintenance team oversees the operation of our manufacturing lines to maintain proper and safe working conditions. Since our inception, we have not experienced any major work-related injuries.

*Environmental Matters*

We generate and discharge chemical wastes, waste water, gaseous waste and other industrial waste at various stages of our manufacturing process as well as during the processing of recovering silicon material.

We are required to obtain construction permits before commencing constructing production facilities, and are required to obtain approvals from US environmental protection authorities before commencing commercial operations of our manufacturing facilities. We will commence construction of a portion of our solar module production facilities prior to obtaining the construction permits and will commence operations of certain of our production facilities prior to obtaining the environmental approvals for commencing commercial operation and completing the required safety evaluation procedure. We have obtained all required environmental approvals covering all of our existing production capacity except a portion of our solar module production capacity.

*Seasonality*

Demand for solar power products tends to be weaker during the winter months partly due to adverse weather conditions in certain regions, which complicates the installation of solar power systems. Our quarterly operating results may vary based on the seasonality of industry demand for solar power products.

*Regulatory, Environmental, Health, and Safety Matters*

We are subject to various federal, state, local, and international laws and regulations, and are often subject to oversight and regulation in accordance with national and local ordinances relating to building codes, safety, and other matters. We are also subject to regulatory oversight and liability if we fail to operate our PV solar power systems in compliance with applicable renewable energy law, electric business law, and project permits and approvals. The impact of these laws and requirements may increase our overall costs and may delay, prevent, or increase the cost of manufacturing PV modules. As we operate in the US and internationally, we are also subject to the application of US trade laws and trade laws of other countries. Such tariffs and policies, or any other US or global trade remedies or other trade barriers that apply to us given our global operations, may directly or indirectly affect our business, financial condition, and results of operations. See Item 1A. "Risk Factors – Existing regulations and policies, changes thereto, and new regulations and policies may present technical, regulatory, and economic barriers to the purchase and use of PV solar products, which may significantly reduce demand for our modules."

*Intellectual Property Rights*

Our success partially depends on our ability to maintain and protect our proprietary technology and to conduct our business without infringing on the proprietary rights of others. We primarily rely on a combination of patents, trademarks, and trade secrets, as well as associate and third-party confidentiality agreements, to safeguard our intellectual property. We regularly file patent applications to protect inventions arising from our R&D activities and are currently pursuing patent applications in the United States. Our patent applications and any future patent applications may not result in a patent being issued with the scope of the claims we seek, or at all, and any patents we may receive may be challenged, invalidated, or declared unenforceable. In addition, we have registered and/or have applied to register trademarks and service marks in the United States.

We rely on trade secret protection and confidentiality agreements to safeguard our interests regarding proprietary know how that is not patentable and for processes for which patents are difficult to enforce. We believe that many elements of our PV solar module manufacturing processes, including our unique materials sourcing, involve proprietary know-how, technology, or data that are not covered by patents or patent applications, including technical processes, equipment designs, algorithms, and procedures. We have taken security measures to protect these elements. Our R&D personnel have entered into confidentiality and proprietary information agreements with us, and such agreements address intellectual property protection issues and require our associates to assign to us all of the inventions, designs, and technologies which they develop during the course of their employment with us. We also require our customers and business partners to enter into confidentiality agreements before we disclose sensitive aspects of our modules, technology, or business plans, and have not been subject to any material intellectual property infringement or misappropriation claims.

**Our Operations**

**Facilities and Employees**

Our global headquarters is located at 1/10-12 Forsyth Close, Wetherill Park, Sydney, NSW, and SJ Australia has warehouses across the country in Melbourne, Perth, Adelaide, Townsville, and Brisbane. SJ America's headquarters is located at 4741 Urbani Avenue, McClellan Park, California 95652. We lease manufacturing facilities with a total floor area of 139,100 square feet located in McClellan Park, California near Sacramento for production use. We also have warehouses and/or offices in West Sacramento CA, Anaheim CA, and Orange Cove CA, Las Vegas NV, Houston TX, Denver CO, Orlando FL and Port St. Lucie FL. In August 2022, in furtherance of our plans to pause the roofing and solar energy system installation business in the states of Nevada, Texas, Colorado and Florida, the Company provided lease termination notices to the landlords of our warehouses and/or offices located in Las Vegas NV, Houston TX, Denver CO, Orlando FL and Port St. Lucie FL.

We employ a total of approximately 274 full-time employees, of whom 30 are SJ Australia employees, 218 are employed by SJ America and 26 are employed by SJ Technology. Our Chairman – Xiaofeng Peng, Chief Financial Officer – Randolph Conone, Chief Product Officer – Qi ("Kemp") Qiu, and Chief Operating Officer – William Chen are based in the United States, our Chief Supply Chain Officer – Rami Fedda, and Chief Sales Officer – Andrew Burgess, are based in Australia, and our Chief Executive Officer- Hoong Khoeng Cheong is based in Singapore. In August 2022, in furtherance of our plans to pause the roofing and solar energy system installation business in the states of Nevada, Texas, Colorado and Florida, the Company terminated all of our employees who worked out of our offices in Colorado, Florida, Nevada and Texas, except for one District Manager in Florida who is assisting the Company with winding up its affairs in Florida.

**Suppliers**

SJ Australia purchases its products from quality PV manufacturers that offer attractive products which generally allow us to sell at higher gross margins. Our leading brands in each product category include, for inverters, Fronius and SMA; for solar panels, Trina and JA, for battery storage systems, Tesla; and for BOS and mounting, Tigo, SwitchDin, Clenergy, and Mibet. SJ Australia actively reviews its product portfolio to discontinue products with low volume, low margin, or poor performance records. SJ Australia enters into agreements with its suppliers during the ordinary course of business.

SJ America purchases materials from leading distributors in the construction and PV industries. We also purchase key solar components, such as solar cells and batteries from suppliers in Asia and in the United States. SJ America plans to offer our "Made-in-US Solar4America" private label as its standard product, with third party products offered as premium choices for consumers. SJ America enters into agreements with its suppliers during the ordinary course of business.

SJ Technology supply contracts generally include prepayment obligations for the procurement of raw material. Our prepayments, secured or unsecured, expose us to the credit risks of our suppliers, and reduce our chances of obtaining the return of such prepayments in the event that our suppliers become insolvent or bankrupt, and we might have difficulty recovering such prepayments if any of our suppliers fails to fulfill its contractual delivery obligations to us. Any default by our suppliers to whom we have made substantial prepayments might have a material adverse effect on our financial condition, results of operations and liquidity.

SJ Australia solar energy systems customers consist mainly of installers that have fewer than five employees. According to Clean Energy Council, the number of its accredited installers grew 17% to 7,713 in 2020, among which over 5,000 installers have opened accounts with SJ Australia since the company's inception. In addition to products, SJ Australia provides product training, industry information sharing through its roadshows and social media updates, as well as before- and after-sales services to clients. More than 900 contractors have active accounts (defined as having purchased in the last three months) with SJ Australia.

SJ America's commercial customers include some of the largest homebuilders across the United States, as well as smaller, local homebuilders and low-rise commercial building developers. We also perform as subcontractor to a general contractor in some markets, and serve as subcontractors, particularly for the roof-preparation work before solar installation, to other larger residential solar companies such as Tesla and SunPower.

SJ America's B2C customers are primarily homeowners. While most homeowners install roof top solar energy systems only once, we believe that, through loyalty programs offering upgrade opportunities, such as adding battery storage to the PV system or electronic vehicle chargers, and maintenance programs such as app-based smart meter management programs, we can create recurring revenues and build brand reputation.

**Competitors**

SJ Australia principally competes with One Stop Warehouse Pty Ltd., typically based upon our ability to source products at better pricing and payment terms and our ability to serve the hundreds of small installer clients.

SJ America competes with domestic solar and roofing installation companies that offer products and services similar to ours. Some of these companies have greater financial resources, operational experience and technical capabilities than us. The residential solar industry remains highly fragmented with hundreds of installers in the California market alone. We compete with other solar installers on pricing, service, and the ability to arrange financing, including through leasing and power purchase agreements ("PPA"). We currently have no direct relationships with providers of financing. We believe our competitors include national brands, such as Sunrun Inc., which offers PPAs, as well as regional competitors, like Sunworks, Inc.

SJ Technology mainly competes in the United States solar module assembly market with "Made-in-America" manufacturers of solar modules and expects to face increased competition as other solar module manufacturers continue to expand their domestic operations. Some of our current and potential competitors are highly-integrated producers or may have longer operating histories, greater financial and other resources, stronger brand recognition, better access to raw materials, stronger relationships with customers and greater economies of scale than we do. Some companies are also currently developing or manufacturing solar power products based on new technologies, including thin film materials and Crystalline Silicon Photovoltaic Cells or "CSPV." These new alternative products may cost less than those based on monocrystalline or multicrystalline technologies, while achieving the same or similar levels of conversion efficiency in the future, and the solar industry generally competes with other renewable energy and conventional energy sources.

**Technology**

We plan to invest in the development and implementation of client relationship management (CRM) and enterprise resource planning (ERP) systems to facilitate the integration and operation of SJ America's business, with an emphasis on inventory management. Our ability in Australia to fulfill client orders and track inventory is essential to our success, and we continuously customize and upgrade our CRM/ERP systems.

We also plan to invest continuously in new technologies or designs for our products. We have hired a Chief Product Officer and a Chief Operating Officer, both solar industry veterans with significant technology expertise, to continuously improve and expand our Solar4America, Roofs 4 America and Opal families of solar and storage products. We also plan to invest in research and development of our cloud-based monitoring and maintenance software, and ready-to-install rooftop or portable solar kits that clients can purchase and set up themselves.

**Effects of Inflationary Pressures and the Russian Invasion of Ukraine**

SolarJuice has experienced inflationary pressures to varying degrees across its three business divisions, the Australia wholesale business ("SJ Australia"), the domestic roofing and solar installation business ("SJ America"), and the new solar module assembly business ("SJ Technology"). SJ Australia's wholesale business only experienced minor inflationary pressures. SJ Australia has not taken and currently does not plan to take any corrective actions to address the minor inflationary pressures it has experienced to date. SJ America's domestic roofing and solar installation business has experienced increased costs for products, such as roofing shingles, solar panels, metal and support structures, relative to 2021, as well as higher labor costs, all of which have impacted SJ America margins. SJ America is attempting to pass through some of those higher input costs to our customers, but the installation business is highly competitive and thus, our ability to pass on increased costs to customers is limited. Inflation has also had some impact on SJ Technology's solar module production business, as the input costs of the component materials such as solar cells, glass, frames, and other auxiliary materials for the solar panels, have risen in price and in some cases scarcity has limited availability of component materials. In addition, higher costs to import certain pieces of the manufacturing equipment for the solar assembly operations have also impacted SJ Technology's business. We continue to negotiate for the best possible prices and terms in all three business divisions and to pass through higher costs in sales where possible.

SolarJuice does not conduct business with any companies operating in Ukraine or Russia and we have had no direct supply chain disruptions from that conflict. None of the business lines of SJ Australia, SJ America and SJ Technology have experienced any supply chain disruptions, material or otherwise, in connection with Russia's invasion of Ukraine, and we do not expect to experience any future supply chain disruptions relating to Russia's invasion of Ukraine. Although we have previously experienced some challenges due to minor supply chain disruptions, particularly when sourcing solar products for SJ Australia's business from Asian countries, including Vietnam, Thailand, Hong Kong and Malaysia, we have not experienced any material disruption to our day-to-day business and operations. Specifically,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. SolarJuice has no plans to suspend the production, purchase, sale
 or maintenance of certain items due to a lack of raw materials, parts, or equipment; inventory
 shortages; closed factories or stores; reduced headcount; or delayed projects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. SolarJuice has not
 experienced labor shortages that have impacted its business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. SolarJuice has not
 experienced any cybersecurity attacks that have affected its supply chain;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. SolarJuice has not experienced higher costs due to constrained
 capacity or increased commodity prices or challenges sourcing materials (e.g., nickel, palladium,
 neon, cobalt, iron, platinum or other raw material sourced from Russia, Belarus, or Ukraine);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. SolarJuice has observed a minor impact and decline in demand for
 its products based on general economic conditions, unrelated to the Russian invasion of Ukraine,
 however we were able to adjust our supply; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. SolarJuice has not been unable to
 supply products at competitive prices or at all due to export restrictions, sanctions, tariffs,
 trade barriers, or political or trade tensions among countries or the ongoing invasion; or
 be exposed to supply chain risk in light of Russia's invasion of Ukraine and/or related
 geopolitical tension or have sought, made or announced plans to "de-globalize"
 your supply chain.

**Cybersecurity Risks**

SolarJuice utilizes electronic messages and online portals to process transactions with its supply chain channels. A cybersecurity incident to this order can potentially disrupt Company operations and its obligations to deliver material deliverables to its customers. To mitigate these risks of a cybersecurity incident, SolarJuice's IT infrastructure and computing for all of its business lines are protected through several layers of security technology. The physical network parameters are guarded with next generation Sophos UTM firewalls and Microsoft Azure Active Directory Services with Multi-Factor Authentication. Although SolarJuice does not have any direct channels with Russia or Ukraine, the Company's IT department has configured geographic conditional access policies to block account logins from known IP addresses from Russia. Individual remote access traffic is encrypted with layer two VPN connectivity. The workstation endpoints are secured with managed anti-virus solutions from Webroot and the Atera Remote Monitoring and Management application. The Company's user accounts are enforced with password policies that follow industry best practices. All server and network storage appliances are locked down and audited for any suspicious activity. This is documented in the SolarJuice computer use and written information security policy. Backup systems are maintained for all on premise data collection points and tested for integrity. We are also rolling out security awareness training to help educate the Company's employees on how to better protect our data from cybersecurity incidents. Our corporate IT department performs annual reviews of all applications to make sure they are optimized for efficiency and security. We believe these efforts help reduce the risk of a material cybersecurity incident for the Company and its affiliated entities. Our board of directors oversees cybersecurity risks that are presented to the board of directors. The board of directors is kept apprised of the IT department's mitigation measures regarding cybersecurity risks outlined above, and the company's internal IT team periodically works with third-party cybersecurity and other IT consultants to enhance and ensure protection from cybersecurity risks.

**Government Regulation and Incentives**

Our domestic operations are subject to stringent and complex federal, state and local laws, including regulations governing the occupational health and safety of our employees and wage regulations. We are subject to the requirements of the federal Occupational Safety and Health Act, as amended, or OSHA, and comparable state laws that protect and regulate employee health and safety.

Federal, state and local government bodies provide incentives to owners, end users, distributors, system integrators and manufacturers of solar energy systems to promote solar energy in the form of rebates, federal and state tax credits and other financial incentives such as system performance payments, payments for renewable energy credits associated with renewable energy generation and exclusion of solar energy systems from property tax assessments. These incentives enable us to lower the price we charge customers and to increase customer acceptance of solar energy. Our US operations, which generates over 90% of its revenue from California, expects to benefit from a change in building code that, beginning in 2020, requires all new single family and multi-family homes to install solar energy systems, and approximately 18% of our home builder roofing contracts in California include a solar installation component.

**Foreign Private Issuer Status**

We are a foreign private issuer within the meaning of the rules under the Securities Exchange Act of 1934, as amended (which we refer to as the Exchange Act), and are exempt from certain provisions applicable to US domestic public companies. For example:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· we are not required to provide as many Exchange Act reports, or as
 frequently, as a domestic public company;

· for interim reporting, we are permitted to comply solely with our home
 country requirements, which are less rigorous than the rules that apply to domestic public companies;

· we are not required to provide the same level of disclosure on certain
 issues, such as executive compensation;

· we are exempt from provisions of Regulation FD aimed at preventing
 issuers from making selective disclosures of material information;

· we are not required to comply with the sections of the Exchange Act
 regulating the solicitation of proxies, consents or authorizations in respect of a security registered under the Exchange Act; and

· we are not required to comply with Section 16 of the Exchange Act requiring
 insiders to file public reports of their share ownership and trading activities and establishing insider liability for profits realized
 from any "short-swing" trading transaction.

**Emerging Growth Company Status**

We are an "emerging growth company," as defined in the Jumpstart Our Business Startups Act (or the JOBS Act), and we are eligible to take advantage of certain exemptions from various reporting and financial disclosure requirements that are applicable to other public companies that are not emerging growth companies, including, but not limited to, (1) presenting only two years of audited financial statements and only two years of related management's discussion and analysis of financial condition and results of operations in this prospectus, (2) not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act"), (3) reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and (4) exemptions from the requirements of holding a non-binding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. We intend to take advantage of these exemptions, and investors might consequently find investing in our ordinary shares less attractive.

Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended (or the Securities Act), for complying with new or revised accounting standards. As a result, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies, and we intend to take advantage of this extended transaction period.

We could remain an emerging growth company for up to five years, or until the earliest of (1) the last day of the first fiscal year in which our annual gross revenues exceed $1.07 billion, (2) the date that we become a "large accelerated filer" as defined in Rule 12b-2 under the Exchange Act, which would occur if the market value of our ordinary shares that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter and we have been publicly reporting for at least 12 months, or (3) the date on which we have issued more than $1 billion in non-convertible debt during the preceding three-year period.

**Our Corporate Structure**

SolarJuice was incorporated in the Cayman Islands, in February 2017, by SPI Energy Co., Ltd. ("SPI") to hold 80% of Solar Juice Pty Ltd. ("SJ Australia"). The other 20% of SJ Australia is beneficially owned by SJ Australia's founders Rami Fedda (7%) and Andrew Burgess (7%), and by Allied Energy Holding Pte Ltd. (6%), a Singapore based privately-owned company which was an original investor to SJ Australia when it was founded in 2009. SPI is a Cayman Island company that is listed on the Nasdaq Global Select Market, trading under the symbol "SPI" since January 2016. SJ Australia was incorporated in September 2009 to be a wholesaler of solar components in Australia. In May 2015, SPI China (HK) Ltd., a company then related to SPI, acquired 80% of SJ Australia. In August 2018, SPI sold SPI China (HK) Ltd., and, as part of this transaction, SPI China (HK) Ltd. transferred its 80% interest in SJ Australia to SPI. SolarJuice American Inc. ("SJ America") was incorporated in July 2019, and SolarJuice Technology Inc., now known as Solar4America Technology, Inc. ("SJ Technology"), Solar4America Inc., Roofs4America Inc., SolarJuice Distribution Inc. and SolarJuice Franchise Inc. were incorporated in 2021 to hold, respectively, our solar module, roofing, and battery, e-commerce, and other technology related operations. SolarJuice (HK) Ltd has had very limited activities in the last two fiscal years.

**Corporate Information**

Our global headquarters is located at 1/10-12 Forsyth Close, Wetherill Park, Sydney, NSW, Australia. Our principal executive office in the United States is located at 4741 Urbani Avenue, McClellan Park, California 95652. Our telephone number at this address is 888 575-1940. Our registered office in the Cayman Islands is located at the offices of Vistra (Cayman) Limited, P.O. Box 31119 Grand Pavilion, Hibiscus Way, 802 West Bay Road, Grand Cayman, KY1-1205 Cayman Islands.

Our website is http://www.solar4america.com. Information contained on, or that can be accessed through, our websites is not part of, and shall not be incorporated by reference into, this prospectus. Our agent for service of process in the United States is Randolph Conone, 4741 Urbani Avenue, McClellan Park, California 95652.

**Properties and Equipment**

The tables below set forth certain information relating to our leased properties. We are not aware of any major encumbrances on these properties outside of the usual mortgage or other property financing arrangements that the landlords of these buildings may have in place. We use these warehouses primarily to store inventories for distribution, or for installation. We are not aware of any environmental issues that may affect our utilization of these properties.

SJ Australia rents one office and two warehouses (35,219 square feet, in total) in Sydney. It uses third-party logistics services, which are not leases, in six locations in Sydney, Melbourne, Brisbane, Adelaide, Perth and Townsville in Australia.

The following table sets forth certain information relating to the premises SJ Australia occupies:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Premises** | **Nature of Use** | **Terms of Use** | **Area Occupied**<br> **(in square feet)** |
| 1 | Unit 2, 10-12 Forsyth Close <br> Wetherill Park NSW 2164 | Office and Warehouse space. | leased for a term through July 31, 2023. Current annual rent is AU$128,681.30 | 11248 |
| 2 | Unit 1, 10-12 Forsyth Close <br> Wetherill Park NSW 2164 | Office and Warehouse space. | Leased for a term through July 31, 2023. Current annual rent is AU$265,367 | 23196 |
| 3 | 1101, 275 Alfred Street, North Sydney NSW 2060 | Office | Leased for a term through January 5, 2024. Current annual rent is AU$40,792.32, adjustable every year afterwards and subject to an increase of 3.75%. | 775 |
|  | Total |  |  | 35219 |

---

SJ America rents nine office/warehouse facilities with combined space of over 110,059 square feet in CA, NV, CO, TX and FL.

The following table sets forth certain information relating to the premises SJ America occupies:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Premises** | **Nature of Use** | **Terms of Use** | **Area Occupied**<br> **(in square feet)** |
| 1 | 2210 South Dupont Drive <br> Anaheim, CA 92806 | Office and warehouse | Leased for a term through April 30, 2025. Current monthly rent is $18,637 | 13175 |
| 2 | 2901 S Highland Drive <br> Las Vegas, NV 89109<sup>(1)</sup> | Office, warehouse space | Leased for a term through March 31, 2022. Monthly rent for months 0 to 12 is $11,750 and for months 13 to 24 is $12,220. | 22695 |
| 3 | 574 NW Mercantile Place #104 & 105<br> Port St. Lucie, FL 34986<sup>(1)</sup> | Office and warehouse space | Leased for a term through April 30, 2024. Monthly rent for months 0 to 12 is $3,971; for months 13 to 24 is $4,090; and for months 25 to 36 is $4,213. | 3000 |
| 4 | 6950 & 6954 Preston Avenue <br> Livermore, CA 94551 | Office and warehouse | Leased for a term through September 15, 2027. Monthly rent for months 0 to 5.5 is $0; for months 5.5 to 15, $31,893; for months 16 to 27, $46,390, adjustable every year afterwards and subject to a minimum increase of 3%. | 57988 |
| 5 | 7110 Brittmoore Road<br> Houston, TX 77041<sup>(1)</sup> | Office and warehouse | Leased for a term through May 31, 2024 Monthly rent for the first month is $0, for months 2 to 13 is $4,582; for months 14 to 25 is $4,711; and for months 26 to 37 is $4,840. | 7160 |
| 6 | 7501 Village Square Drive, Suite 100<br> Castle Pines, CO 80108<sup>(1)</sup> | Office | Leased for a term through January 31, 2024. Monthly rent for months 0 to 3 is $3,000, for months 4 to 15 is $2,650, for months 16 to 27 is $2,729 and for months 28 to 39 is $2,811. | 1044 |

---

________________________________

<sup>(1)</sup> In connection with SJ America's July 2022 decision to pause its roofing and solar energy system installation business in Florida, Texas, Nevada and Colorado, the Company plans to terminate the leases for the properties located in Nevada, Florida, Texas and Colorado, which are set forth in the table above, as properties 2, 3,5 and 6.

SJ Technology, a wholly owned subsidiary of the Company, subleases from SPI Solar, Inc., an entity owned by the Company's Parent, space located at Building 783, 4741 Urbani Avenue, McClellan, California 95652 consisting of a total floor area of 139,100 square feet (the :"Premises"). Initially, SJ Technology entered into a short term six-month sublease with SPI Solar, Inc. for a portion of the Premises, consisting of 125,190 square feet. The terms of the verbal sublease were as follows: for a period of six months from January 1, 2022 to June 30, 2022 SJ Technology agrees to sublease from SPI Solar, Inc. a total floor area of 125,190 square feet at a base rent of $45,093 per month, plus additional rent as set forth in the lease between SPI Energy Co., Ltd. and the landlord for Premises located at Building 783, 4741 Urbani Avenue, McClellan, California 95652, as amended (the "Master Lease"). This sublease terminated on June 30, 2022. The written version of this sublease is attached hereto as Exhibit 10.9.

In July 2022, SJ Technology determined to sublease the entire Premises from SPI Solar, Inc. The current terms of this sublease are as follows: for a term from July 1, 2022 continuing through January 31, 2031, SJ Technology subleases the Premises at the following monthly base rent: $50,104 per month for July 1, 2022 to December 31, 2022; $51,606 per month for January 1, 2023 to December 31, 2023; $53,150 per month for January 1, 2024 to December 31, 2024; $54,750 per month for January 1, 2025 to December 31, 2025; $56,391 per month for January 1, 2026 to December 31, 2026; $58,088 per month for January 1, 2027 to January 31, 2028; $80,622 per month for February 1, 2028 to January 31, 2029; $83,041 per month for February 1, 2029 to January 31, 2030; $85,532 per month for February 1, 2030 to January 31, 2031, plus additional rent as provided for in the Master Lease. SJ Technology also agreed to provide a security deposit to SPI Solar, Inc. pursuant to the sublease in the amount of $385,000 payable on or before December 31, 2022 and to reimburse SPI Solar, Inc. for the $415,000 that SPI Solar, Inc. paid for the assignment of the Master Lease payable on or before December 31, 2022. The written version of this sublease is attached hereto as Exhibit 10.10.

In August 2022, SJ Technology agreed to sublease from SPI Solar, Inc. 56,000 square feet of space adjacent to the Premises located at Building 783, 4741 Urbani Avenue, McClellan, California 95652 (the "Extension Premises"). Pursuant to current terms of this sublease, SJ Technology agreed to sublease the Extension Premises commencing on the date of occupation, which estimated to be February 1, 2023, at the following monthly base rents: months 1 to 2 at $0; months 3 to 12 at $28,000; and thereafter the rent is adjustable every year subject to a minimum increase of 3%, plus additional rent as provided for in the Master Lease. Additionally, SJ Technology agreed to provide a security deposit to SPI Solar, Inc. pursuant to the sublease for the Extension Premises in the amount of $28,000 payable on or before the commencement date of the sublease for the Extension Premises. The written version of this sublease is attached hereto as Exhibit 10.11.

**Legal Proceedings**

On September 23, 2022, the Company was named as a defendant in a lawsuit that was commenced by Highland Industrial Park, LLC the landlord for the property located at 2901 S Highland Drive, Las Vegas, NV 89109 that was leased by the Company (the "Nevada Office") in connection with its roofing and solar energy system installation business in Las Vegas, Nevada. The lawsuit is entitled: <u>Highland Industrial Park, LLC v. SolarJuice Co., Ltd, SPI Energy Co., Ltd.</u> is pending in the District Court in Clark County, Nevada and assigned Case No. A-22-858872-C. The lawsuit involves the Company's termination of the lease for the Nevada Office in July 2022. The lawsuit seeks to collect an unspecified amount which includes all amounts due under the lease for the full term of the lease and other damages. The Company is in the process of negotiating a resolution of the lawsuit and does not expect that the lawsuit will have a material effect on the Company's performance.

**Employees**

SJ Australia employs approximately 30 employees and none of them are unionized. SJ Australia does not believe unionization will be a major risk factor for it in the foreseeable future.

SJ America and SJ Technology employ approximately 244 employees. None of the employees are unionized. SJ America and SJ Technology do not believe unionization will be a major risk factor in the foreseeable future.

**Concentration of Risk**

We purchase solar modules, inverters, energy storage systems and other system components and instruments from a limited number of suppliers, making us susceptible to quality issues, shortages and price changes. Our top three suppliers for solar modules in 2021 included Trina, Longi, and REC, our top three suppliers for inverters included Sungrow, Fronious and SMA, our top three suppliers for battery Storage included Tesla, Sungrow and Solax. Our top three suppliers for solar modules in 2020 included Trina, JA, and Longi, our top three suppliers for inverters included Fronious SMA, and Sungrow, and our top three supplier for battery storage included Tesla, Solax and LG Chem. None of our clients account for over 5% of revenue.

 **Subsequent Event**

**Recent Change in SJ America Business Operations**

In July 2022, SolarJuice made a decision that its SJ America subsidiary would pause its roofing and solar energy system installation business in the states of Florida, Texas, Nevada and Colorado, due to insufficient business volume and profitability in those four states. The Company continually assesses the market demand, the scale and geographic scope of its business lines, especially the roofing and solar energy system installation business, which includes the installation of solar panels, batteries and EV chargers, for profitability, and we plan that we will continue to do so in the future.

Currently, SJ America generates over 85% of its roofing and solar energy system installation business revenue in California, largely attributable to the high demand for solar products in California, and we have determined to focus our roofing and solar energy system installation business on the well-established, higher volume, higher profitability business in the state of California.

The Company has been in the process of pausing its roofing and installation operations in Colorado, Florida, Nevada and Texas for several weeks as of the date of this filing, and we believe that we have minimal if any continuing roofing and installation operations in any of the four aforementioned states. We have provided notice to the landlords of the properties we lease in Colorado, Florida, Nevada and Texas of our decision to terminate those leases. We have also terminated all of our employees who worked out of our offices in Colorado, Florida, Nevada and Texas, except for one District Manager in Florida who is assisting the Company with winding up its affairs in Florida. Where appropriate and necessary we have made arrangements for other companies to complete any remaining roofing and solar energy system installation work that has not been complete.

While the Company is not currently conducting solar energy installations or roofing installation business in in Florida, Texas, Nevada and Colorado, we do still maintain our licenses to do such business as well as our business contacts, in the event we determine to resume operations in one or more of those states.

In August 2022 we provided our notice to terminate the leases for our offices in Colorado, Florida, Nevada and Texas to the respective landlords. We are currently in the process of negotiating and making the appropriate arrangements to satisfy any outstanding lease obligations and to terminate such leases. We do expect to incur some related costs associated with the lease terminations, but we do not anticipate such costs or penalties relating to those four lease terminations to be material. The negotiations with those landlords are ongoing at this time, and we currently estimate the total lease termination costs for those four locations to be between $100,000 and $150,000.

**MANAGEMENT**

**Directors and Executive Officers**

The following discussion sets forth information regarding our executive officers and directors as of the date of this prospectus.

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| Xiaofeng Peng | 47 | Chairman of Board of Directors |
| Hoong Khoeng Cheong | 57 | Director and Chief Executive Officer |
| Ken He | 42 | Independent Director |
| Philip Comberg | 54 | Independent Director |
| Yun Fei | 60 | Independent Director |
| Randolph Conone | 56 | Chief Financial Officer and General Counsel |
| Andrew Burgess | 42 | Founder and Chief Sales Officer |
| Rami Fedda | 44 | Founder and Chief Supply Chain Officer |
| Qi ("Kemp") Qiu | 47 | Chief Product Officer |

---

**Xiaofeng Peng** has served as the Chairman of our board of directors since February 2017. Mr. Peng has served as a director and the executive chairman of the board of directors of SPI Energy Co., Ltd., our parent company, since January 10, 2011, as Chairman of the board of SJ Australia since April 2015, and as the chief executive officer of SPI Energy Co., Ltd. since March 25, 2016. Mr. Peng founded LDK Solar Co., Ltd., or LDK, in July 2005 and acted as LDK's chairman of the board from July 2005 until August 2014, and as chief executive officer from July 2005 until November 2012. On February 21, 2014, LDK filed a provisional liquidation application with the Grand Court of the Cayman Islands. More than 20 months after Mr. Peng's departure from LDK, on April 6, 2016 the Cayman Court ordered that LDK be wound up pursuant to a joint creditor's petition. Prior to founding LDK, Mr. Peng founded Suzhou Liouxin Co., Ltd., or Suzhou Liouxin, in March 1997 and was its chief executive officer until February 2006. Suzhou Liouxin was a leading manufacturer of personal protective equipment in Asia. Mr. Peng graduated from Jiangxi Foreign Trade School with a diploma in international business in 1993 and from Beijing University Guanghua School of Management with an executive MBA degree in 2002.

**Hoong Khoeng Cheong** has served as our Chief Executive Officer and a member of our board of directors since September 2019. Mr. Cheong has served as a director of the board of SJ Australia since April 2015, as a director of SPI Energy Co., Ltd., our parent company, since September 2017, and as its chief operating officer since May 2014. Mr. Cheong previously served as SPI Energy Co., Ltd.'s general manager from 2007 to 2011 and was responsible for PV system design and development as well as the manufacturing of key components for PV modules and racking systems before joining LDK. Mr. Cheong served in various management positions in LDK from 2011 to 2014 and from March 2013 to May 2014 served as the chairman of the Management Board and chief executive officer of Sunways AG ("Sunways"), a publicly listed company in Germany, in which held a 71% controlling interest since April 2012. In May 2013, Sunways filed a German preliminary insolvency proceeding due, to Sunways' financial difficulties that had commenced prior to March 2013. While Sunways rescinded this proceeding in August 2013, due to LDK's liquidation filings, Sunways filed for preliminary insolvency proceedings in Germany on March 21, 2014 and entered into formal insolvency proceedings on April 28, 2014. Prior to joining the solar industry in 2007, Mr. Cheong spent 16 years in the electronics industry responsible for engineering development and manufacturing of liquid crystal display products and he served as the Vice President of Engineering of an affiliate of Flextronics International Ltd. Mr. Cheong holds a Bachelor of Science degree in mechanical engineering from the University of Louisiana and obtained his Master of Science degree in computer integrated manufacturing from Nanyang Technology University, Singapore in 1997.

 **Ken He** shall become an independent director of the Company upon the closing of the offering. Mr. He also serves as independent director of the board of directors, chairman of audit committee and chairman of remuneration and appraisal committee of Fantawild Holdings Inc. since May 2022; independent director of the board of directors, chairman of audit committee and chairman of nominating committee of 4399 Network Co., Limited since June 2022; and independent director of the board of directors of Moli Media Inc. since March 2021. Additionally, Mr. He is currently serving as a director and senior partner of JK Asset Management (HK) Limited, an asset management company, where he oversees its asset management and financial activities. Mr. He served as independent director of the board of directors and chairman of audit committee of Hailiang Education Group Inc. from June 2015 to September 2022 and its chairman of special committee from February 2022 to September 2022. From June 2020 to November 2021, he served as independent director of the board of directors and chairman of audit committee of Ebang International Holdings Inc. From September 2015 to February 2021, he was the director, vice president and responsible officer of Racing Capital Management (HK) Limited, a company principally engaged in asset management, and was mainly responsible for overseeing its asset management and financial activities. From August 2011 to September 2015, Mr. He served as the chief financial officer of China Shengda Packaging Group Inc., or China Shengda, where he oversaw China Shengda's financing and investment activities, accounting practices and investor relations. Before joining China Shengda, Mr. He served as an investment director with Wealthcharm Investments Limited, a private investment company, from September 2009. Prior to that, Mr. He spent five years at PricewaterhouseCoopers Australia and China. Having several years of experience in the financial and accounting field. Mr. He is experienced and familiar with Chinese accounting standards, Hong Kong accounting standards, Australian accounting standards, international accounting standards and US GAAP, as well as the differences among them. Mr. He holds a bachelor's degree in management, majoring in accounting from Sun Yat-Sen University, China and a master's degree in applied finance from Macquarie University, Australia. Mr. He is a US Certified Public Accountant, and he also holds a Certified Public Accountant designation from the Chinese Institute of CPA, a Certified Public Accountant designation from the Hong Kong Institute of CPA, a Certified Practicing Accountant designation from the CPA Australia and a Chartered Financial Analyst designation from the CFA Institute.

**Dr. Philip Comberg** shall become an independent director of the Company upon the closing of the offering. Dr. Comberg is an experienced board member having served on boards of public and private companies in various industries in the US, UK, China and Germany. In the past 15 years he has held senior roles in the renewable energy industry, which included Chairman of battery storage company Vionx Energy, CEO of Vivopower International, Chairman of Solarcentury Holdings and building a large solar power asset portfolio in the UK with Magnetar Capital. From 2011 to 2014 he was Chairman and CEO of Conergy leading its restructuring and sale to Kawa Capital and Magnetar Capital. Prior to that he served on the board of Chinese NASDAQ listed solar manufacturer Solarfun Power Holdings (now Hanwha QCells). Previously, in 2004, Mr. Comberg co-founded Alcosa Capital, a Frankfurt based special situation investment and advisory firm focusing on the German SME sector. Before, he worked as an investment banker at Deutsche Bank and as an attorney with Freshfields Bruckhaus Deringer in Germany and China. He studied law and Chinese at the University of Heidelberg, Germany and Zhongshan University in China, subsequently completing his Master's degree at New York University and a Doctor of Law at the University of Düsseldorf, Germany.

**Yun Fei** shall become an independent director of the Company upon the closing of the offering. Mr. Fei Yun has more than three decades of experience in the research and development of solar cells, PV systems and senior management role in the industry in Australia and China. Mr. Fei Yun currently serves as General Manager of Semco Smartech since 2019. Previously, he has served as General Manager of Xinghang PV Technology (Suzhou) Co., Ltd. since July 2014. Mr. Yun held senior management positions at various solar companies, including as Vice President of Technology at LDK Solar Co., Ltd. from February 2010 to June 2013; Chief Technology Officer at Solar Enertech Corp. from December 2007 to January 2010; Vice President of Technology at SolarFun (Now Hanwha Solar One) from July 2006 to November 2007; General Manager and Chief Engineer at Tera Solar Technologies from March 2004 to June 2006. Mr. Yun received his bachelor's degree in Physics from Jinan University, his master's degree in Solar Energy from the Asian Institute of Technology(AIT) in Bangkok, Thailand. He also had nearly 10 years of research and development experience in silicon-based solar cells at the ARC Photovoltaics Centre of Excellence at the University of New South Wales in Sydney, Australia, his expertise is focused on the high efficiency silicon solar cell.

**Andrew Burgess** has served as our Founder and Chief Sales Officer since September 2009. Mr. Burgess founded Solar Juice Pty Ltd., our 80% owned subsidiary and has served as Sales Director of Solar Juice Pty Ltd. since September 2009. Mr. Burgess commenced his career in renewables in 1998 working for Solarex and subsequently spent 10 years working for BP Solar across various commercial roles covering industrial, telecommunications and critical infrastructure. He also worked in the Global Emerging markets that involved deploying solar to emerging countries in Asia Pacific for rural village electrification, water pumping and emergency power supply. Mr. Burgess holds a diploma in networking systems from Western Sydney Tafe in 2008 and partially completed MBA courses from Macquarie Graduate School of Management in 2012.

**Rami Fedda** has served as our Founder and Chief Supply Chain Officer since September 2009. Mr. Fedda co-founded Solar Juice Pty Ltd., our 80% owned subsidiary and has served as Supply Director of Solar Juice Pty Ltd. since September 2009, managing supplier relationships and marketing activities. Mr. Fedda started in the solar industry in 1997 with Solarex (owned by Amoco/Enron) & BP Solar. From 1997 to 2007, Mr. Fedda worked in manufacturing, planning, raw material sales and global procurement. In 2007, Mr. Fedda established a solar silicon trading company, supplying silicon material to wafer and cell manufactures. Mr. Fedda holds a diploma in networking systems from Western Sydney Tafe in 2008.

**Qi "Kemp" Qiu** has served as our Chief Product Officer since March 2021. Mr. Qiu was previously the founder and CEO of LeadSolar Energy Co., Ltd., a solar business he built from scratch and successfully grew to tens of millions of dollars in annual revenue. Mr. Qiu had also been the Director of data networking products at Finisar Inc. (previously NASDAQ: FNSR), Director of product and International Partnerships for Securus, a GPS-tracking SaaS services company, and Product Manager at Xinray Systems, a JV of Siemens and Xintek. Mr. Qiu earned his MBA from University of North Carolina at Chapel Hill in 2008, Master in computer and electrical engineering from North Carolina State University in 2003 and Master in Physics from University of North Carolina at Chapel Hill in 2001.

**Randolph Conone** has served as our Chief Financial Officer and General Counsel since March 2022, and he has run the Investor Relations function for our parent company SPI Energy since July 2021. Mr. Conone has three decades of experience as a financial and legal professional including management of transactions, asset management, capital markets, investor relations and corporate legal issues. He has extensive capital markets and corporate experience including tenures as an investment banker with Bear, Stearns & Co. Inc. and Oberon Securities, he was a Principal and Co-Portfolio Manager of the Occasio Fund a US long/short equity hedge fund from 2004 to 2010, he was a Fortune 50 officer serving as an Assistant General Counsel for the Masonite Corporation division of International Paper Company from 1995 to 1998, and previously worked as a corporate attorney focusing on securities, M&A, lending and other corporate matters. He earned his MBA in finance in 1999 from the University of Chicago Booth School of Business where he was on the Dean's List, his JD in 1990 from the University of Virginia School of Law, and his BSBA in finance in 1987 from The Ohio State University with *Summa Cum Laude* honors.

There are no family relationships among any of our directors and executive officers.

None of our non-executive directors has any employment or service contract with our company.

None of the events listed in Item 401(f) of Regulation S-K has occurred during the past ten years that is material to the evaluation of the ability or integrity of any of our directors or executive officers.

**Board of Directors**

Our board of directors will consist of five directors, two of whom are executive directors and three of whom are independent directors who will be appointed immediately prior to the listing of our ordinary shares on Nasdaq. A director is not required to hold any shares in our company to qualify to serve as a director. A director may vote with respect to any contract, transaction or arrangement in which he or she is materially interested provided the nature of the interest is disclosed prior to its consideration and as long as he has not been disqualified by the chairman of the relevant board meeting. Our board of directors may exercise all of the powers of our company to borrow money, to mortgage or charge its undertaking, property and uncalled capital, or any part thereof, and to issue debentures, debenture stock or other securities whether outright or as security for any debt, liability or obligation of our company or of any third-party. None of our directors has a service contract with us that provides for benefits upon termination of service.

A majority of our directors and executive officers are residents of jurisdictions other than the United States and most of their assets are located outside the United States, consequently it might be difficult for a shareholder to effect service of process within the United States upon these individuals, to bring an action against us or these individuals in the United States, or to enforce against us or them judgments obtained in United States courts, including judgments predicated upon the civil liability provisions of the securities laws of the United States or any state in the United States.

**Duties of Directors**

Under Cayman Islands law, our directors have a fiduciary duty to act honestly in good faith with a view to our best interests. Our directors also have a duty to exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. In fulfilling their duty of care to us, our directors must ensure compliance with our memorandum and articles of association, as amended and restated from time to time. A shareholder has the right to seek damages if a duty owed by our directors is breached.

The functions and powers of our board of directors include, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· conducting and managing the business of our company;

· representing our company in contracts and deals;

· appointing attorneys for our company;

· select senior management such as managing directors
 and executive directors;

· providing employee benefits and pension;

· managing our company's finance and bank accounts;

· exercising the borrowing powers of our company and
 mortgaging the property of our company; and

· exercising any other powers conferred by the shareholders
 meetings or under our memorandum and articles of association, as amended and restated from time to time.

**Terms of Directors and Officers**

Our directors hold office until such time as they are removed from office by ordinary resolution or the unanimous written resolution of all shareholders. A director will be removed from office automatically if, among other things, the director (i) becomes bankrupt or makes any arrangement or composition with his creditors; or (ii) dies or is found by our company to be or becomes of unsound mind. The compensation of our directors is determined by the board of directors. There is no mandatory retirement age for directors. Our officers are elected by and serve at the discretion of the board of directors.

**Executive Officer and Director Compensation**

In 2022, we paid aggregate cash compensation of $599,389 to our directors and executive officers as a group. We did not pay any other cash compensation or benefits in kind to our directors and executive officers. We have not set aside or accrued any amount to provide pension, retirement or other similar benefits to our directors and executive officers.

For information regarding share awards granted to our directors and executive officers, see "—Share Incentive Plan."

**Labor Contracts**

We have entered into labor contracts with our executive officers. Each of our executive officers is employed for a specified time period. We may terminate the employment for cause, at any time, without notice or remuneration, for certain acts of the executive officer, including but not limited to the commitments of any serious or persistent breach or non-observance of the terms and conditions of the employment, conviction of a criminal offense, willful disobedience of a lawful and reasonable order, fraud or dishonesty, receipt of bribery, or severe neglect of his or her duties. An executive officer may terminate his or her employment at any time with a one-month prior written notice.

Each executive officer has agreed to hold, both during and after the labor contract expires, in strict confidence and not to use or disclose to any person, corporation or other entity without written consent, any confidential information. Each executive officer has also agreed to assign to our group all his or her all inventions, improvements, designs, original works of authorship, formulas, processes, compositions of matter, computer software programs, databases, mask works, concepts and trade secrets.

**Share Incentive Plan**

On February 28, 2021, the Board of Directors approved the 2021 Omnibus Equity Incentive Plan (the "2021 Plan"), to be effective on February 28, 2021, provided that it is approved by our stockholders.

The 2021 Plan provides for the grant of non-qualified stock options, incentive stock options, restricted stock awards, restricted stock units, unrestricted stock awards, stock appreciation rights, performance stock awards, performance unit awards, unrestricted stock awards, distribution equivalent rights and/or any combination of the foregoing.

**General Terms of the 2021 Plan**

*Administration*

The 2021 Plan will be administered by a committee of the Board of Directors (the "Committee"), which shall be appointed by the Board of Directors.

*Grant of Awards*

The maximum number of shares that may be subject to equity awards pursuant to the 2021 Plan, or the share reserve, was set at 9% of the Company's outstanding shares on a fully diluted basis. The maxim number of shares that may be subject to awards of incentive stock options shall not be more than the aggregate number of shares available for awards under the 2021 Plan.

*Term*

The 2021 Plan shall continue in effect, unless sooner terminated, until the tenth (10th) anniversary of the date on which it is adopted by Board of Directors.

*Eligibility*

All employees and directors of, and consultants and other persons providing services to, the Company or any of its subsidiaries (or any parent or other related company, as determined by the Committee) are eligible to become Participants in the 2021 Plan, except that non-employees may not be granted incentive stock options.

*Prohibition Against Re-pricing*

Except to the extent (i) approved in advance by holders of a majority of the shares of the Company entitled to vote generally in the election of directors, or (ii) as a result of any Change of Control or any adjustment as provided in the 2021 Plan, the Committee shall not have the power or authority to reduce, whether through amendment or otherwise, the exercise price under any outstanding Option or Stock Appreciation Right, or to grant any new Award or make any payment of cash in substitution for or upon the cancellation of Options and/or Stock Appreciation Rights previously granted.

*Change in Control*

In the event of a Change in Control, the Committee may cancel any outstanding awards in return for cash payment of the current value of the award, determined with the award fully vested at the time of payment, provided that in the case of an option, the amount of such payment will be the excess of value of the ordinary shares subject to the option at the time of the transaction over the exercise price (and the option will be cancelled with no payment if the value of the shares at the time of the transaction are equal to or less than the exercise price).

*Amendment and Termination*

 

The Board of Directors may amend or terminate the 2021 Plan at any time. The Board of Directors may not make any material amendments to the 2021 Plan without stockholder approval.

*Award Agreements*

 

Equity awards granted under the Plan are evidenced by award agreements that set forth the terms, conditions and limitations for each award, which must be consistent with the Plan.

*Vesting Schedule*

 

The vesting schedule of each equity award granted under the Plan will be set forth in the award agreement for such equity award.

*Award Grants*

 

As of the date of this prospectus, SolarJuice issued options to its executive officers and employees under the 2021 Plan as follows: (1) between May 17, 2021 and December 12, 2021, options to purchase 1,529,290 ordinary shares at an exercise price of $1.92 per share, of which options to purchase 738,394 ordinary shares have been forfeited, (2) on July 6, 2022, options to purchase 277,502 ordinary shares at an exercise price of $2.11 per share, of which options to purchase 5,000 ordinary shares have been forfeited and (3) on October 1, 2022, options to purchase 106,250 ordinary shares at an exercise price of $7.26 per share. The ordinary shares underlying the options vest annually over a four-year period, with 25% of the options vesting on each of the first, second, third and fourth anniversaries of the grant date. The table below summarizes the outstanding options granted under the 2021 Plan to our directors and executive officers:

 

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| | | | |
|:---|:---|:---|:---|
| **Name** | **Position** | **Ordinary Shares<br> Underlying Options<sup>1</sup>** | **Grant Date** |
| Hoong Khoeng Cheong | Chief Executive Officer | 250000 | May 17, 2021 |
| Andrew Burgess | Chief Sales Officer | 125000 | May 17, 2021 |
| Rami Fedda | Chief Supply Chain Officer | 125000 | May 17, 2021 |
| Qi Qiu | Chief Product Officer | 100000 | May 17, 2021 |
|  Randolph Conone | Chief Financial Officer and General Counsel | 20000 | December 12, 2021 |
| Randolph Conone | Chief Financial Officer and General Counsel | 130000 | July 6, 2022 |

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___________________

<sup>1</sup> The number of ordinary shares underlying the option takes into consideration the one (1) share for four (4) share reverse stock split that occurred on July 6, 2022.

 **Other Stock Option Issuance**

On February 28, 2021, the Company issued to Xiaofeng Peng fully vested options to purchase 1,500,000 ordinary shares at an exercise price of $1.92 per share. The options issued to Xiaofeng Peng were not issued under the 2021 Plan.

**Board Committees and Practices**

Our board of directors shall consist of five directors, three of whom shall be considered "independent" as that term is used in the Nasdaq corporate governance rules.

A director may be removed by an ordinary resolution. The office of a director shall be vacated if (a) he gives notice in writing to our company that he resigns the office of director; or (b) he absents himself from three consecutive meetings of the board of directors without special leave of absence from the directors, and they pass a resolution that he has by reason of such absence vacated office; or (c) he dies, becomes bankrupt or makes any arrangement or composition with his creditors generally; or (d) he is found to be or becomes of unsound mind; or (e) all the other directors (being not less than two in number) resolve that he should be removed as a director. A director so elected or appointed shall hold office for the term, if any, fixed by the terms of his appointment or until his earlier death, bankruptcy, insanity, resignation or removal. If no term is fixed on the appointment of a director, the director serves indefinitely until his earlier death, bankruptcy, insanity, resignation or removal.

A director may vote in respect of any transaction or contract in which the director is interested, provided that such director has disclosed the nature of his interest in any such transaction or contract at or prior to its consideration and any vote thereon.

**Duties of directors**

Under Cayman Islands law, our directors owe fiduciary duties to our company, including a duty of loyalty, a duty to act honestly, and a duty to act in what they consider in good faith and in our best interests. Our directors also have a duty to exercise the care, diligence and skills that a reasonably prudent person would exercise in comparable circumstances. In fulfilling their duty of care to us, our directors must ensure compliance with our Memorandum and Articles of Association then in effect. In certain limited circumstances, our shareholders may have the right to seek damages through a derivative action in the name of our company if a duty owed by our directors is breached.

**Committees of our board of directors**

Immediately upon the effectiveness of our registration statement of which this prospectus forms a part, we will establish an Audit Committee, a Compensation Committee and a Nominating and Corporate Governance Committee, and we will adopt a charter for each of these committees. These committees' members and functions are briefly described below.

***Audit Committee***

When established, Ken He, Philip Comberg and Yun Fei each of whom meets the independence standards of Nasdaq and the SEC, shall serve on our Audit Committee. Ken He shall serve as Chairman of the Audit Committee and as our Audit Committee financial expert as defined by the rules and regulations of the SEC and Nasdaq. The responsibilities of our Audit Committee will include, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Appointing, and overseeing the work of our independent
 auditors, approving the compensation of our independent auditors, and, if appropriate, discharging our independent auditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Pre-approving engagements of our independent auditors
 to render audit services and/or establishing pre-approval policies and procedures for such engagements and pre-approving any non-audit
 services proposed to be provided to us by our independent auditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Discussing with management and our independent auditors
 significant financial reporting issues raised and judgments made in connection with the preparation of our financial statements;

· Reviewing and discussing reports from our independent
 auditors on (1) the major critical accounting policies to be used, (2) significant alternative treatments of financial
 information within the US generally accepted accounting principles, or GAAP, that have been discussed with management, (3) ramifications
 of the use of such alternative disclosures and treatments, and (4) other material written communications between our independent
 auditors and management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Resolving any disagreements between management and our
 independent auditors regarding financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Establishing procedures for receiving, retaining and
 treating any complaints we receive regarding accounting, internal accounting controls or auditing matters and procedures for the
 confidential, anonymous submission by employees of concerns regarding questionable accounting or auditing matters; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reporting regularly to the full board of directors.

***Nominating and Corporate Governance Committee***

Our nominating and corporate governance committee will consist of Ken He, Philip Comberg and Yun Fei, and is chaired by Yun Fei. We have determined that each of these directors satisfies the ''independence'' requirements of Rule 5605(a)(2) of the Listing Rules of the Nasdaq. The nominating and corporate governance committee assists the board in selecting individuals qualified to become our directors and in determining the composition of the board and its committees. The nominating and corporate governance committee is responsible for, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Recommending nominees to the board for election or re-election
 to the board, or for appointment to fill any vacancy on the board;

· Reviewing annually with the board the current composition
 of the board with regards to characteristics such as independence, knowledge, skills, experience, expertise, diversity and availability
 of service to us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Resolving any disagreements between management and our
 independent auditors regarding financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Selecting and recommending to the board the names of
 directors to serve as members of the audit committee and the compensation committee, as well as of the nominating and corporate governance
 committee itself;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Developing and reviewing at least annually the corporate
 governance principles adopted by the board and advising the board with respect to significant developments in the law and practice
 of corporate governance and our compliance with such laws and practices.

***Compensation Committee***

When established, Ken He, Philip Comberg and Yun Fei, each of whom meets the independence standards of Nasdaq and the SEC, shall serve on our Compensation Committee. Philip Comberg shall serve as the Chairman of the Compensation Committee. The Compensation Committee assists the board of directors in reviewing and approving the compensation structure of our directors and officers, including all forms of compensation to be provided to our directors and officers. The responsibilities of our Compensation Committee include, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reviewing and recommending to our board of directors
 with respect to the total compensation package for our executive officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reviewing and recommending to our board of directors
 with respect to director compensation, including equity-based compensation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reviewing periodically and recommending to the board
 of directors with respect to any long term incentive compensation or equity plans, programs or similar arrangements, annual bonuses,
 employee pension and welfare benefit plans.

***Controlled Company***

We are a "controlled company" as defined under the Nasdaq Stock Market Rules because our controlling shareholder, SPI, holds more than 50% of our voting power, and we expect we will continue to be a controlled company upon completion of this offering. For so long as we remain a controlled company under that definition, we are permitted to elect to rely, and may rely, on certain exemptions from the obligation to comply with certain corporate governance requirements, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the requirement that our director nominees must be selected
 or recommended solely by independent directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the requirement that we have a corporate governance and
 nominating committee that is composed entirely of independent directors with a written charter addressing the committee's purpose
 and responsibilities.

We currently do not intend to utilize these exemptions. However, in the event we decide to utilize these exemptions in the future. In any case, these exemptions do not modify the independence requirements for our audit committee, and we intend to comply with the requirements of Rule 10A-3 of the Exchange Act and the Nasdaq Stock Market Rules.

**Code of Business Conduct and Ethics**

We intend to adopt a Code of Business Conduct and Ethics in accordance with Section 406 of the Sarbanes-Oxley Act of 2002 and Item 406 of Regulation S-K, which will be applicable to all of our directors, officers and employees. The Code of Business Conduct and Ethics is intended to promote honest and ethical conduct, full and accurate reporting, and compliance with laws as well as other matters. A copy of our Code of Business Conduct and Ethics is filed as an exhibit to our registration statement of which this prospectus forms a part.

**RELATED PARTY TRANSACTIONS**

Employment Agreements with Management

See "Management – Labor Contracts."

Share Incentive Plan

See "Management – Share Incentive Plan."

Loans from SPI

The amount due to related parties of $2,935,000 and nil as of December 31, 2021 and 2020, respectively, represented loan from SPI with a maturity date of December 31, 2022, at an interest of 3.25% per annum. The amount due to SPI of $12,021,751 and nil as of June 30, 2022 and 2021, respectively, which are a $9,086,751 loan from SPI with a maturity date of December 31, 2022 with no interest and a $2,935,000 loan from SPI with an extended maturity date of December 31, 2022, at an interest of 3.25% per annum.

Capital Injection

In December 2020, pursuant to a board resolution of SPI Energy Co., Ltd. dated October 25, 2020, $16,000,000 of cash equity was injected by SPI to the Company to launch operations in the United States and to fund the growth of SJ Australia.

In May 2020, SJ Australia, issued additional shares to its shareholders. SPI and the minority shareholders of SJ Australia subscribed for the shares pro rata and made capital investment in cash of $996,000 and $249,000 respectively.

Transactions with Our Directors and Officers

The amount due from related parties of $369,000, $370,000 and $41,000 as of December 31, 2021, 2020 and 2019, respectively, represented advance payments to management for business operations as well as amount due from an affiliated entity of the Company for a payment received by the affiliated entity on behalf of the Company. Among which, the amounts due from Andrew Burgess, our Chief Sales Officer, were $41,000, $44,000 and $30,000 as of December 31, 2021, 2020 and 2019, respectively, and the amounts due from Rami Fedda, our Chief Supply Chain Officer were $12,000, $12,000 and $11,000 as of December 31, 2021, 2020 and 2019, respectively. As of August 18, 2022, the balances due from Andrew Burgess and Rami Fedda were $40,000 and $42,000 respectively.

The advances were made to management for conducting business on behalf of the Company, with the understanding that such advances will be expensed when the relevant services or goods are received by the Company. As of September 15, 2022, all the advances to Andrew Burgess and Rami Fedda have been expensed as administrative expenses and the balances due from Andrew Burgess and Rami Fedda are currently nil and nil respectively. Accordingly, as of September 15, 2022, there is no money due to the Company from any director or officer of the Company.

The remaining $314,000 due from related parties balance constitutes a payment received by an affiliated entity of the Company, SPI Solar, Inc., on behalf of the Company for sales of PV modules. The Company has entered into a tri-party agreement on September 14, 2022 with SPI Solar, Inc., an affiliated entity, and Solar Juice (HK) limited, a subsidiary of the Company to net off the $314,000 due from SPI Solar, Inc. with the amount due to SPI Energy Co., Ltd.

The amount due to related parties of nil and $239,000 as of December 31, 2020 and 2019, respectively, represented the amount owed to management for payment made on the Company's behalf for business operation.

On February 28, 2021, an option to purchase 6,000,000 fully vested ordinary shares at an exercise price of $0.48 per share was granted to LDK New Energy Holding Limited, an entity wholly owned by Mr. Peng's wife. SPI's board, pursuant to an ordinary resolution dated February 28, 2021, granted Mr. Xiaofeng Peng, our chairman, who is also SPI's Chairman and CEO, a fully vested option to purchase 6,000,000 ordinary shares of the Company at an exercise price of $0.48 per share, to recognize and compensate Mr. Peng for his overall contribution to SPI and the Company, in particular his work to support our operations, including the acquisition of SJ Australia's majority share in 2015, guidance and support of SJ Australia since its acquisition, setting up SJ America, in 2019, and identifying, negotiating and purchasing PDI's assets and the launch of the Company's US operations in 2021. More specifically Mr. Peng's support focuses on ensuring SPI's subsidiaries obtain necessary funding through a combination of loans and equity funding, using his extensive network to recruit and vet directors and officers for the subsidiaries, and introducing business development opportunities to the subsidiaries, such as acquisitions and partnerships. Mr. Peng is also instrumental in supporting our initial public offering. We believe this option award will also further align Mr. Peng's personal interest with that of the Company's. Mr. Peng indicated to SPI that he would like to use LDK New Energy Holding Limited, a holding vehicle 100% owned by his wife and effectively controlled by him, to be the entity to hold this option grant. Based on the one (1) share for four (4) share reverse stock split that occurred on July 6, 2022, such options have been reduced to 1,500,000 and the exercise price has been increased to $1.92.

Sublease of McClellan Park Facility

In November 2021, SPI Solar, Inc. a wholly owned subsidiary of SPI Energy Co., Ltd., the Company's parent company, assumed the assignment of a lease (the "Master Lease") for that certain premises located at Building 783, 4741 Urbani Avenue, McClellan, California 95652 consisting of a total floor area of 139,100 square feet (the "Premises"). On January 1, 2022, SJ Technology, a wholly owned subsidiary of the Company, verbally agreed with SPI Solar, Inc. to sublease a portion of the Premises located at Building 783, 4741 Urbani Avenue, McClellan, California 95652 consisting of a total floor area of 125,190 square feet. Since SJ Technology just started its domestic module manufacturing business in January 2022 and it was difficult for the Company to estimate the capacity of the manufacturing based on the market condition at that time, while SPI Solar, Inc. was preparing its EV charger assembly business in the Premises, the management of SPI Solar, Inc. agreed to share the production site with SJ Technology temporarily for SJ Technology to conduct solar module manufacturing pilot production and thus SJ Technology verbally agreed to a short-term sublease agreement with SPI Solar, Inc. The terms of the verbal sublease were as follows: for a period of six months from January 1, 2022 to June 30, 2022 SJ Technology agrees to sublease from SPI Solar, Inc. a total floor area of 125,190 square feet at a base rent of $45,093 per month, plus additional rent as set forth in the Master Lease. The lease period was six months. During the six months ended June 30, 2022, the Company recognized $0.3 million rent expenses for the sublease arrangement with SPI solar and paid $0.3 million rent to SPI solar. There was no rent payable due to related party as of June 30, 2022.

In July 2022, after SJ Technology completed its solar module pilot production conducted in the second quarter of 2022, the management of the Company considered that it was necessary to expand capacity of SJ Technology's module production to meet the increasing market demand and SJ Technology decided to agree to a long-term sublease agreement with SPI Solar, Inc. SPI Solar, Inc. agreed to vacate the portion of the Premises it occupied and then sought other sites for its EV charger assembly business. SJ Technology verbally agreed with SPI Solar, Inc. to sublease the entire Premises located at Building 783, 4741 Urbani Avenue, McClellan, California 95652 consisting of a total floor area of 139,100 square feet for the entire term based on the terms provided for in the Master Lease. The terms of the verbal sublease were to sublease the Premises for the entire term under the Master Lease and at the same base rent as follows: $50,104 per month for July 1, 2022 to December 31, 2022; $51,606 per month for January 1, 2023 to December 31, 2023; $53,150 per month for January 1, 2024 to December 31, 2024; $54,750 per month for January 1, 2025 to December 31, 2025; $56,391 per month for January 1, 2026 to December 31, 2026; $58,088 per month for January 1, 2027 to January 31, 2028, plus additional rent as provided for in the Master Lease. SJ Technology also agreed to provide a security deposit to SPI Solar, Inc. for the sublease in the amount of $385,000 payable on or before December 31, 2022 and to reimburse SPI Solar, Inc. for the $415,000 that SPI Solar, Inc. paid for the assignment of the Master Lease payable on or before December 31, 2022. The lease period is sixty-seven months. The Company recognized $3.5 million right of use assets and $3.1 million lease liability, respectively, for this sublease contract with SPI solar in July 2022.

As customer demand for modules further increased, SJ Technology determined that it could use additional space at the McClellan Park facility to expand its solar module production capacity. Thus, on August 17, 2022, SPI Solar, Inc. amended the Master Lease with the landlord (the "Third Amendment") to (1) extend the lease term for the Premises by 3 years and (2) add an additional 56,000 sq. ft. of space to the Premises (the "Extension Premises"). Simultaneous therewith, SJ Technology entered into two verbal agreements with SPI Solar, Inc. (1) to modify the verbal sublease for the Premises to extend the lease term for the Premises for three years from February 1, 2028 through January 31, 2031 at the following monthly base rent: months 1 to 12 at $80,622; months 13 to 24 at $83,041 and months 25 to 36 at 85,532, and (2) to sublease the Extension Premises commencing on the date of occupation, which is estimated to be February 1, 2023, at the following monthly base rents: months 1 to 2 at $0; months 3 to 12 at $28,000; and thereafter the rent is adjustable every year subject to a minimum increase of 3%, plus additional rent as provided for in the Master Lease. Additionally, SJ Technology agreed to provide a security deposit to SPI Solar, Inc. for the sublease for the Extension Premises in the amount of $28,000 payable on or before the commencement date of the sublease for the Extension Premises. The Company accounted for both the lease modification and the new lease as separate new lease agreements and will recognize right of use asset and lease liability as of the sublease commencement date.

Each of the above described oral sublease agreements have been memorialized into three separate written sublease agreements that have been consented to by the Landlord under the Master Lease. One written sublease is for a portion of the Premises, consisting of a total floor area of 125,190 square feet for a term of 6 months, from January 1, 2022 through June 30, 2022, which is attached hereto as Exhibit 10.9. The second written sublease is for the entire Premises, consisting of a total floor area of 139,100 square feet, for a term from July 1, 2022 through January 31, 2031, which is attached hereto as Exhibit 10.10. The third written sublease is for the Expansion Premises, consisting of a total floor area of 56,000 square for a term commencing on the date of occupation, which is estimated to be February 1, 2023, through January 31, 2031, which is attached hereto as Exhibit 10.11.

**PRINCIPAL SHAREHOLDERS**

The following table sets forth information as of the date of this prospectus with respect to the beneficial ownership, within the meaning of Rule 13d-3 under the Exchange Act, of our ordinary shares prior to the offering and after the offering, for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· each person known to us to own beneficially more than
 5% of our ordinary shares;

· each of our directors and executive officers who beneficially
 own our ordinary shares; and

· all of our directors and executive officers as a group.

Beneficial ownership includes voting or investment power with respect to the securities. Except as indicated below, and subject to applicable community property laws, the persons named in the table have or share the voting and investment power with respect to all shares shown as beneficially owned by them. The number of our shares used in calculating the percentage for each listed person includes any options exercisable by such person within 60 days after the date of this prospectus, but excludes unvested restricted shares that will not vest within 60 days after the date of this prospectus.

The percentage of beneficial ownership prior to this offering for holders of ordinary shares is based on 25,000,000 ordinary shares issued and outstanding as of the date of this prospectus. On all matters subject to vote at general meetings of the company, the holders of ordinary shares are entitled to one vote per share.

---

| | | | |
|:---|:---|:---|:---|
| **Name of Beneficial Owner** | **Number of**<br> **ordinary shares**<br> **beneficially owned prior to**<br> **the offering** | **Percentage of** <br> **ordinary shares** <br> **beneficially owned prior to** <br> **the offering** | **Percentage of<br> ordinary shares<br> beneficially owned after<br> the offering** |
| ***Executive Officers, Directors and Director Nominees †*** | ***Executive Officers, Directors and Director Nominees †*** | | |
| Xiaofeng Peng (1) | 1500000 | 6.0% | 5.5%  |
| HoongKhoeng Cheong (2) | 62500 | \* | \* |
| Andrew Burgess (2) | 31250 | \* | \* |
| Rami Fedda (2) | 31250 | \* | \* |
| Qi Qiu (2) | 25000 | \* | \* |
| Randolph Conone | 5000 | \* | \* |
| All directors and Executive Officers as a Group | 1655000 | 6.6% | 6.0% |
| SPI Investments Holding Limited (3) | 25000000 | 100.0% | 90.9% |

---

_____________________

\* Means less than 1%

***†*** The business address of our directors, executive officers and director nominees is c/o, SolarJuice Co., Ltd., 4741 Urbani Avenue, McClellan Park, California 95652.

&nbsp;&nbsp;&nbsp;&nbsp;(1) Represents 6,000,000 ordinary shares underlying options to purchase
 6,000,000 shares granted to LDK New Energy Holding Limited. On February 28, 2021, an option to
 purchase 6,000,000 fully vested ordinary shares at an exercise price of $0.48 per share was granted
 to LDK New Energy Holding Limited, an entity wholly owned by Mr. Peng's wife. This is compensation
 to Mr. Peng for his service as a director. Mr. Peng has not exercised the right to purchase these
 shares. Based on the one (1) share for four (4) share reverse stock split that occurred on July
 6, 2022, such options have been reduced to 1,500,000 and the exercise price has been increased
 to $1.92.

&nbsp;&nbsp;&nbsp;&nbsp;(2) On May 17, 2021, the Company's executive officers were granted
 options to purchase their respective number of ordinary shares at an exercise price of $0.48 per
 share, which would vest annually over a four-year period, with twenty-five percent (25%) of the
 shares vesting on each of the first, second, third, and fourth anniversaries of the grant date.
 Currently, 25% of these options have vested. Based on the one (1) share for four (4) share reverse
 stock split that occurred on July 6, 2022, such options have been reduced to 150,000 and the exercise
 price has been increased to $1.92.

&nbsp;&nbsp;&nbsp;&nbsp;(3) All of the Company's outstanding ordinary shares held by
 SPI Investments Holding Limited, a British Virgin Islands company wholly owned by SPI Energy Co.,
 Ltd., which is a Cayman Islands company listed on Nasdaq. The registered address of SPI Investments
 Holding Limited is at P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British
 Virgin Islands.

The board of directors of SPI Energy Co., Ltd. has voting and investment control over these shares.

**DESCRIPTION OF SHARES AND GOVERNING DOCUMENTS**

**General**

We are an exempted company with limited liability incorporated under the laws of the Cayman Islands and our affairs are governed by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· our memorandum and articles of association;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the Companies Act (As Revised) of the Cayman Islands,
 which is referred to as the Companies Act below; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the common law of the Cayman Islands.

As of the date of this prospectus, our authorized share capital is US$50,000 divided into 1,250,000,000 ordinary shares with a par value of US$0.00004. As of the date of this prospectus, there were 25,000,000 ordinary shares issued and outstanding.

Upon the closing of this offering, we will have 27,500,000 ordinary shares issued and outstanding (or 27,875,000 ordinary shares if the underwriters exercise in full the option to purchase additional ordinary shares), excluding (i) ordinary shares issuable upon the exercise of the options issued to LDK New Energy Holding Limited, (ii) ordinary shares issuable upon the exercise of the representative's warrants, and (iii) ordinary shares reserved for future issuance under our share incentive plan.

The following are summaries of material provisions of our Memorandum and Articles of Association and the Companies Act insofar as they relate to the material terms of our share capital.

**Memorandum and Articles of Association**

Subject to other provisions in the Articles, the shareholders may by ordinary resolution increase, or by special resolution decrease, our authorized share capital and may also by special resolution amend our Memorandum and Articles of Association.

**Ordinary shares**

 

*General*

All of our outstanding ordinary shares are fully paid and non-assessable. Certificates representing the ordinary shares are issued in registered form. The ordinary shares are not entitled to any preemptive conversion, subscription or redemption rights. Our shareholders may freely hold and vote their shares.

 

*Voting rights*

Each ordinary share is entitled to one vote on all matters upon which the ordinary shares are entitled to vote, including the election of directors. At any meeting of members, the chairman of the meeting is responsible for deciding in such manner as he considers appropriate whether any resolution proposed has been carried or not and the result of his decision shall be announced at the meeting. Shareholders may approve corporate matters without a meeting being held by way of written resolution signed by or on behalf of all shareholders entitled to attend and vote at a meeting called for the purpose of passing such a resolution or taking any other action. The consent may be in the form of counterparts, each counterpart being signed by one or more shareholders or persons.

A quorum required for a meeting of shareholders consists of at least two or more shareholders holding shares which carry in aggregate (or representing by proxy) not less than one-third of all votes attaching to all shares in issue present in person or by proxy and entitled to vote. Shareholders' meetings are not required to be held annually and may otherwise be convened by any director on his or her own initiative. Advance notice of at least five (5) calendar days is required for the convening of any meeting of shareholders.

Any ordinary resolution to be made by the shareholders requires the affirmative vote of a simple majority of the votes attaching to the ordinary shares cast in person or by proxy at a meeting of our shareholders or a unanimous written resolution of all our shareholders. A special resolution requires the affirmative vote of not less than two-thirds of the votes cast in person, by a duly authorized representative in the case of a shareholder who is a corporation, or by proxy at a meeting of our shareholders or a unanimous written resolution of all our shareholders. A special resolution is required for matters such as amending our Memorandum and Articles of Association and reducing our authorized share capital.

*Dividends*

The holders of our ordinary shares are entitled to receive such dividends as may be declared by our board of directors subject to our Memorandum and Articles of Association and the Companies Act. Dividends may be paid only out of profits, which include net earnings and retained earnings undistributed in prior years, and out of share premium, a concept analogous to paid-in surplus in the United States. No dividend may be declared and paid unless our directors determine that immediately after the payment, we will be able to satisfy our liabilities as they become due in the ordinary course of business and we have funds lawfully available for such purpose.

*Liquidation*

If we were to be liquidated and the assets available for distribution among the shareholders are insufficient to repay the whole of the share capital, such assets shall be distributed so that, as nearly as may be, the losses shall be borne by the shareholders in proportion to the par value of the ordinary shares held by them. If in a winding up the assets available for distribution among the shareholders shall be more than sufficient to repay the whole of the share capital at the commencement of the liquidation, the surplus shall be distributed among the shareholders in proportion to the par value of the ordinary shares held by them at the commencement of the liquidation, subject to a deduction from those ordinary shares in respect of which there are monies due, of all monies payable to us, without prejudice to the rights of the holders of ordinary shares issued upon special terms and conditions.

If we were to be liquidated the liquidator may, with the approval by a special resolution of the shareholders, divide among the shareholders in species or in kind the whole or any part of our assets (whether they shall consist of property of the same kind or not) and may, for such purpose set such value as he/she deems fair upon any property to be divided and may determine how such division shall be carried out as between the shareholders or different classes of shareholders. The liquidator may, with the approval by a special resolution of the shareholders, vest the whole or any part of such assets in trustees upon such trusts for the benefit of the contributories as the liquidator, with the approval by a special resolution of the shareholders shall think fit, but so that no shareholder shall be compelled to accept any shares or other securities whereon there is any liability.

*Miscellaneous*

Share certificates registered in the names of two or more persons are deliverable to any one of them named in the share register and, if two or more such persons tender a vote, the vote of the person whose name first appears in the share register will be accepted to the exclusion of any other.

*Transfer of shares*

Subject to the restrictions of our Memorandum and Articles of Association, as applicable, any of our shareholders may transfer all or any of his or her ordinary shares by an instrument of transfer in the usual or common form or any other form approved by our board.

Our board of directors may, in its sole discretion, (except with respect to a transfer from an ordinary shareholder to its Affiliate(s)), decline to register any transfer of any ordinary shares which is not fully paid up or on which we have a lien. Our directors may also decline to register any transfer of any ordinary share unless (a) the instrument of transfer is lodged with us, accompanied by the certificate for the ordinary shares to which it relates and such other evidence as our board of directors may reasonably require to show the right of the transferor to make the transfer; (b) the instrument of transfer is in respect of only one class of ordinary shares; (c) the instrument of transfer is duly and properly signed; (d) in the case of a transfer to joint holders, the number of joint holders to whom the ordinary share is to be transferred does not exceed four; or (e) a fee of such maximum sum as our board of directors may from time to time require, is paid to us in respect thereof.

If our board of directors refuses to register a transfer, it shall, within two months after the date on which the instrument of transfer was lodged, send to each of the transferor and the transferee notice of such refusal. The registration of transfers may be suspended and the register closed at such times and for such periods as our board of directors may from time to time determine; provided, however that the registration of transfers shall not be suspended nor the register closed for more than 30 days in any year.

*Variation of rights of shares*

Subject to the Memorandum and Articles and except as otherwise provided therein, all or any of the special rights attached to any class of our shares may, unless otherwise provided by the terms of issue of the shares of that class, from time to time be materially adversely varied with the consent in writing of the holders of at least two-thirds of the issued shares of that class, or a resolution by holders of two-thirds of the shares of that class present in person or by proxy at a separate meeting of the holders of the shares of that class.

*Inspection of books and records*

Holders of our ordinary shares will have no general right under Cayman Islands law to inspect or obtain copies of our list of shareholders or our corporate records. However, we will provide our shareholders with annual audited financial statements. See "[Where you can find more information](#a24)."

**Preferred shares**

Pursuant to our Amended and Restated Memorandum and Articles of Association, our board of directors has the authority, without further action by the shareholders, to issue preferred shares in one or more series and determine the designations, powers, preferences, privileges and other rights, including dividend rights, conversion rights, redemption rights and liquidation preferences, any or all of which may be greater than the rights of the ordinary shares. Subject to the directors' duty of acting for a proper purpose, preferred shares can be issued quickly with terms calculated to delay or prevent a change of control of our company or make removal of management more difficult. Additionally, the issuance of preferred shares may have the effect of decreasing the market price of our ordinary shares and may adversely affect the voting and other rights of the holders of ordinary shares. As of the date of this prospectus, there were no preferred shares outstanding, and we have no plans to issue preferred shares.

**Differences in corporate law**

The Companies Act is derived, to a large extent, from the older Companies Acts of England but does not follow recent English statutory enactments and accordingly there are significant differences between the Companies Act and the current Companies Act of England. In addition, the Companies Act differs from laws applicable to US corporations and their shareholders. Set forth below is a summary of certain significant differences between the provisions of the Companies Act applicable to us and the laws applicable to companies incorporated in the United States and their shareholders.

***Mergers and Similar Arrangements***

The Companies Act permits mergers and consolidations between Cayman Islands companies and between Cayman Islands companies and non-Cayman Islands companies. For these purposes, (a) "merger" means the merging of two or more constituent companies and the vesting of their undertaking, property and liabilities in one of such companies as the surviving company, and (b) a "consolidation" means the combination of two or more constituent companies into a consolidated company and the vesting of the undertaking, property and liabilities of such companies to the consolidated company. In order to effect such a merger or consolidation, the directors of each constituent company must approve a written plan of merger or consolidation, which must then be authorized by (i) a special resolution of the shareholders of each constituent company, and (ii) such other authorization, if any, as may be specified in such constituent company's articles of association. The written plan of merger or consolidation must be filed with the Registrar of Companies of the Cayman Islands together with a declaration as to the solvency of the consolidated or surviving company, a list of the assets and liabilities of each constituent company and an undertaking that a copy of the certificate of merger or consolidation will be given to the members and creditors of each constituent company and that notification of the merger or consolidation will be published in the Cayman Islands Gazette. Court approval is not required for a merger or consolidation which is effected in compliance with these statutory procedures.

A merger between a Cayman parent company and its Cayman subsidiary or subsidiaries does not require authorization by a resolution of shareholders of that Cayman subsidiary if a copy of the plan of merger is given to every member of that Cayman subsidiary to be merged unless that member agrees otherwise. For this purpose a company is a "parent" of a subsidiary if it holds issued shares that together represent at least ninety percent (90%) of the votes at a general meeting of the subsidiary.

The consent of each holder of a fixed or floating security interest over a constituent company is required unless this requirement is waived by a court in the Cayman Islands.

Save in certain limited circumstances, a shareholder of a Cayman constituent company who dissents from the merger or consolidation is entitled to payment of the fair value of his shares (which, if not agreed between the parties, will be determined by the Cayman Islands court) upon dissenting to the merger or consolidation, provided the dissenting shareholder complies strictly with the procedures set out in the Companies Act. The exercise of dissenter rights will preclude the exercise by the dissenting shareholder of any other rights to which he or she might otherwise be entitled by virtue of holding shares, save for the right to seek relief on the grounds that the merger or consolidation is void or unlawful.

Separate from the statutory provisions relating to mergers and consolidations, the Companies Act also contains statutory provisions that facilitate the reconstruction and amalgamation of companies by way of schemes of arrangement, provided that the arrangement is approved by a majority in number of each class of shareholders and creditors with whom the arrangement is to be made, and who must in addition represent three-fourths in value of each such class of shareholders or creditors, as the case may be, that are present and voting either in person or by proxy at a meeting, or meetings, convened for that purpose. The convening of the meetings and subsequently the arrangement must be sanctioned by the Grand Court of the Cayman Islands. While a dissenting shareholder has the right to express to the court the view that the transaction ought not to be approved, the court can be expected to approve the arrangement if it determines that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the statutory provisions as to the required majority
 vote have been met;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the shareholders have been fairly represented at the
 meeting in question and the statutory majority are acting bona fide without coercion of the minority to promote interests adverse
 to those of the class;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the arrangement is such that may be reasonably approved
 by an intelligent and honest man of that class acting in respect of his interest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the arrangement is not one that would more properly be
 sanctioned under some other provision of the Companies Act.

The Companies Act also contains a statutory power of compulsory acquisition which may facilitate the "squeeze out" of dissenting minority shareholders upon a tender offer. When a tender offer is made and accepted by holders of 90% of the shares affected within four months, the offer or may, within a two-month period commencing on the expiration of such four month period, require the holders of the remaining shares to transfer such shares to the offer or on the terms of the offer. An objection can be made to the Grand Court of the Cayman Islands but this is unlikely to succeed in the case of an offer which has been so approved unless there is evidence of fraud, bad faith or collusion.

If an arrangement and reconstruction is thus approved, or if a tender offer is made and accepted, a dissenting shareholder would have no rights comparable to appraisal rights, which would otherwise ordinarily be available to dissenting shareholders of Delaware corporations, providing rights to receive payment in cash for the judicially determined value of the shares.

***Shareholders' Suits***

In principle, we will normally be the proper plaintiff to sue for a wrong done to us as a company, and as a general rule a derivative action may not be brought by a minority shareholder. However, based on English authorities, which would in all likelihood be of persuasive authority in the Cayman Islands, the Cayman Islands court can be expected to follow and apply the common law principles (namely the rule in Foss v. Harbottle and the exceptions thereto) so that a non-controlling shareholder may be permitted to commence a class action against or derivative actions in the name of the company to challenge actions where:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a company acts or proposes to act illegally or ultra
 vires;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the act complained of, although not ultra vires, could
 only be effected if duly authorized by more than a simple majority vote that has not been obtained; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· those who control the company are perpetrating a "fraud
 on the minority."

***Indemnification of Directors and Executive Officers and Limitation of Liability***.

Cayman Islands law does not limit the extent to which a company's memorandum and articles of association may provide for indemnification of officers and directors, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against civil fraud or the consequences of committing a crime. Our Memorandum and Articles of Association provides for indemnification of officers and directors for losses, damages, costs and expenses incurred in their capacities as such, except through their own actual fraud or willful default.

***Directors' Fiduciary Duties***

Under Delaware corporate law, a director of a Delaware corporation has a fiduciary duty to the corporation and its shareholders. This duty is generally viewed to have two main components: the duty of care and the duty of loyalty. The duty of care requires that a director act in good faith, with the care that an ordinarily prudent person would exercise under similar circumstances. Under this duty, a director must inform himself of, and disclose to shareholders, all material information reasonably available regarding a significant transaction. The duty of loyalty requires that a director act in a manner he reasonably believes to be in the best interests of the corporation. He must not use his corporate position for personal gain or advantage. This duty prohibits self-dealing by a director and mandates that the best interest of the corporation and its shareholders take precedence over any interest possessed by a director, officer or controlling shareholder and not shared by the shareholders generally. In general, actions of a director are presumed to have been made on an informed basis, in good faith and in the honest belief that the action taken was in the best interests of the corporation. However, this presumption may be rebutted by evidence of a breach of one of the fiduciary duties. Should such evidence be presented concerning a transaction by a director, a director must prove the procedural fairness of the transaction, and that the transaction was of fair value to the corporation.

As a matter of Cayman Islands law, a director of a Cayman Islands exempted company is in the position of a fiduciary with respect to the company, and therefore it is considered that he owes the following duties to the company—a duty to act bona fide in the best interests of the company, a duty not to make a profit based on his position as director (unless the company permits him to do so) and a duty not to put himself in a position where the interests of the company conflict with his personal interest or his duty to a third party, and a duty to exercise powers for the purpose for which such powers were intended. A director of a Cayman Islands exempted company owes to the company a duty to act with skill and care. It was previously considered that a director need not exhibit in the performance of his duties a greater degree of skill than may reasonably be expected from a person of his knowledge and experience. However, English and Commonwealth courts have moved towards an objective standard with regard to the required skill and care and these authorities are likely to be followed in the Cayman Islands.

 ****

***Shareholder Action by Written Consent***

Under the Delaware General Corporation Law, a corporation may eliminate the right of shareholders to act by written consent by amendment to its certificate of incorporation. Pursuant to Cayman Islands law and our Memorandum and Articles of Association, shareholders may approve corporate matters without a meeting being held by way of unanimous written resolution. The consent may be in the form of counterparts, each counterpart being signed by one or more shareholders or persons.

***Shareholder Proposals***

Under the Delaware General Corporation Law, a shareholder has the right to put a proposal before the annual meeting of shareholders, provided it complies with the DGCL and the notice provisions in the governing documents. A special meeting may be called by the board of directors or any other person authorized to do so in the governing documents, but shareholders may be precluded from calling special meetings.

The Companies Act provides shareholders with only limited rights to requisition a general meeting, and does not provide shareholders with any right to put any proposal before a general meeting. However, these rights may be provided in a company's articles of association. Our Memorandum and Articles of Association provides that, subject to certain procedure prescribed therein being satisfied, the shareholders holding not less than ten percent (10%) of the paid-up capital of the company (the "**Requisitionists**"), or any of the Requisitionists representing not less than a majority of the aggregate voting rights of all of them, may themselves convene a general meeting. The general meeting convened by the Requisitionists shall be convened in the same manner as nearly as possible as that in which general meetings are to be convened by the directors. As an exempted Cayman Islands company, we are not obliged by law to call shareholders' annual general meetings.

***Cumulative Voting***

Under the Delaware General Corporation Law, cumulative voting for elections of directors is not permitted unless the corporation's certificate of incorporation specifically provides for it. Cumulative voting potentially facilitates the representation of minority shareholders on a board of directors since it permits the minority shareholder to cast all the votes to which the shareholder is entitled on a single director, which increases the shareholder's voting power with respect to electing such director. There are no prohibitions in relation to cumulative voting under the laws of the Cayman Islands, but our Memorandum and Articles of Association specifically do not allow cumulative voting. As a result, our shareholders are not afforded any less favorable protections or rights on this issue than shareholders of a Delaware corporation.

***Removal of Directors***

Under the Delaware General Corporation Law, a director of a corporation with a classified board may be removed only for cause with the approval of a majority of the outstanding shares entitled to vote, unless the certificate of incorporation provides otherwise. Under our Memorandum and Articles of Association, an independent director may be removed for negligence or other reasonable cause at any time before the expiration of his or her term by a special resolution passed at a duly convened shareholders meeting by the holders of at least two-thirds of our outstanding shares being entitled to vote in person or by proxy at such a meeting or by a unanimous written consent of our shareholders. A director, other than an independent director, may be removed from office by ordinary resolutions passed at a duly convened shareholders meeting by a simple majority or by a unanimous written consent of our shareholders at any time before the expiration of his term notwithstanding anything in the Memorandum and Articles or in any agreement between the company and such director (but without prejudice to any claim for damages under such agreement).

***Transactions with Interested Shareholders***

The Delaware General Corporation Law contains a business combination statute applicable to Delaware public corporations whereby, unless the corporation has specifically elected not to be governed by such statute by amendment to its certificate of incorporation, it is prohibited from engaging in certain business combinations with an "interested shareholder" for three years following the date on which such person becomes an interested shareholder. An interested shareholder generally is one which owns or owned 15% or more of the target's outstanding voting shares within the past three years. This has the effect of limiting the ability of a potential acquirer to make a two-tiered bid for the target in which all shareholders would not be treated equally. The statute does not apply if, among other things, prior to the date on which such shareholder becomes an interested shareholder, the board of directors approves either the business combination or the transaction that resulted in the person becoming an interested shareholder. This encourages any potential acquirer of a Delaware public corporation to negotiate the terms of any acquisition transaction with the target's board of directors.

Cayman Islands law has no comparable statute. As a result, we cannot avail ourselves of the types of protections afforded by the Delaware business combination statute. However, although Cayman Islands law does not regulate transactions between a company and its significant shareholders, it does provide that such transactions entered into must be bona fide in the best interests of the company and not with the effect of constituting a fraud on the minority shareholders.

***Dissolution; Winding up***

Under the Delaware General Corporation Law, unless the board of directors approves the proposal to dissolve, dissolution must be approved by shareholders holding 100% of the total voting power of the corporation. Only if the dissolution is initiated by the board of directors may it be approved by a simple majority of the corporation's outstanding shares. The Delaware General Corporation Law allows a Delaware corporation to include in its certificate of incorporation a supermajority voting requirement in connection with dissolutions initiated by the board of directors.

Under Cayman Islands law, a company may be wound up by either an order of the courts of the Cayman Islands or by a special resolution of its members or, if the company is unable to pay its debts as they fall due, by an ordinary resolution of its members. The court has authority to order winding up in a number of specified circumstances including where it is, in the opinion of the court, just and equitable to do so. Under the Companies Act, our company may be dissolved, liquidated or wound up by a special resolution of our shareholders.

***Variation of Rights of Shares***

Under the Delaware General Corporation Law, a corporation may vary the rights of a class of shares with the approval of a majority of the outstanding shares of such class, unless the certificate of incorporation provides otherwise. Under Cayman Islands law and our Memorandum and Articles of Association, if our share capital is divided into more than one class of shares, we may vary the rights attached to any class only with the vote of holders of at least two-thirds of the issued shares of such class.

***Amendment of Governing Documents***

Under the Delaware General Corporation Law, a corporation's governing documents may be amended with the approval of a majority of the outstanding shares entitled to vote, unless the certificate of incorporation provides otherwise. Under the Companies Act and our Memorandum and Articles of Association may only be amended by a special resolution passed at a duly convened shareholders meeting by the holders of at least two-thirds of our outstanding shares being entitled to vote in person or by proxy at such meeting or by a unanimous written consent of all our shareholders.

***Inspection of books and records***

Under the Delaware General Corporation Law, any shareholder of a corporation may for any proper purpose inspect or make copies of the corporation's stock ledger, list of shareholders and other books and records. Holders of our shares will have no general right under Cayman Islands law to inspect or obtain copies of our list of shareholders or our corporate records. However, we intend to provide our shareholders with annual reports containing audited financial statements.

***Anti-takeover Provisions in our Memorandum and Articles of Association***

Some provisions of our Memorandum and Articles of Association may discourage, delay or prevent a change of control of our company or management that shareholders may consider favorable, including provisions that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Authorize our board of directors to issue preferred shares
 in one or more series and to designate the price, rights, preferences, privileges and restrictions of such preferred shares without
 any further vote or action by our shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Prohibit cumulative voting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Create a classified board of directors pursuant to which
 our directors are elected for staggered terms, which means that shareholders can only elect, or remove, a limited number of directors
 in any given year; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Establish advance notice requirements for nominating
 board of directors' nominees or for proposing matters that can be acted on by shareholders at annual shareholder meetings.

However, under Cayman Islands law, our directors may only exercise the rights and powers granted to them under our Memorandum and Articles of Association for a proper purpose and for what they believe in good faith to be in the best interests of our company.

***Rights of Non-resident or Foreign Shareholders***

There are no limitations imposed by our Memorandum and Articles of Association on the rights of non-resident or foreign shareholders to hold or exercise voting rights on our shares. In addition, there are no provisions in our Memorandum and Articles of Association governing the ownership threshold above which shareholder ownership must be disclosed.

***Anti-money laundering—Cayman Islands***

In order to comply with legislation or regulations aimed at the prevention of money laundering we may adopt and maintain anti-money laundering procedures, and we may require shareholders to provide evidence to verify their identity and source of funds. Where permitted, and subject to certain conditions, we may also delegate the maintenance of our anti-money laundering procedures (including the acquisition of due diligence information) to a suitable person.

We reserve the right to request such information as is necessary to verify the identity of a shareholder, unless in the particular case we are satisfied that an exemption applies under the Money Laundering Regulations (As Revised) of the Cayman Islands, as amended and revised from time to time, or the Regulations. Depending on the circumstances of each application, a detailed verification of identity might not be required where:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The shareholder makes the payment for their investment
 from an account held in the applicant's name at a recognized financial institution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The shareholder is regulated by a recognized regulatory
 authority and is based or incorporated in, or formed under the law of, a recognized jurisdiction; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The purchase of shares is made through an intermediary
 which is regulated by a recognized regulatory authority and is based in or incorporated in, or formed under the law of a recognized
 jurisdiction and an assurance is provided in relation to the procedures undertaken on the underlying investors.

For the purposes of these exceptions, recognition of a financial institution, regulatory authority or jurisdiction will be determined in accordance with the Regulations by reference to those jurisdictions recognized by the Cayman Islands Monetary Authority as having equivalent anti-money laundering regulations.

In the event of delay or failure on the part of the subscriber in producing any information required for verification purposes, we may refuse to accept the application, in which case any funds received will be returned without interest to the account from which they were originally debited. We also reserve the right to refuse to make any redemption payment to a shareholder if our directors suspect or are advised that the payment of redemption proceeds to such shareholder might result in a breach of applicable anti-money laundering or other laws or regulations by any person in any relevant jurisdiction, or if such refusal is considered necessary or appropriate to ensure the compliance by us with any such laws or regulations in any applicable jurisdiction.

If any person resident in the Cayman Islands knows or suspects or has reasonable grounds for knowing or suspecting that another person is engaged in criminal conduct or is involved with terrorism or terrorist property and the information for that knowledge or suspicion came to their attention in the course of business in the regulated sector, the person will be required to report such knowledge or suspicion to (i) the Financial Reporting Authority of the Cayman Islands, pursuant to the Proceeds of Crime Act of the Cayman Islands (As Revised) if the disclosure relates to criminal conduct or money laundering, or (ii) a police officer of the rank of constable or higher pursuant to the Terrorism Act of the Cayman Islands (As Revised) if the disclosure relates to involvement with terrorism or terrorist financing and property. Such a report shall not be treated as a breach of confidence or of any restriction upon the disclosure of information imposed by any enactment or otherwise.

 ****

***Listing***

We have applied to list our ordinary shares on the Nasdaq Capital Market under the symbol "SJA". We cannot guarantee that we will be successful in listing our ordinary shares on the Nasdaq Capital Market. However, we will not complete this offering unless we are so listed.

***Transfer Agent and Registrar***

 ****

The transfer agent and registrar for our ordinary shares is Vstock Transfer, LLC. The transfer agent and registrar's address is 18 Lafayette Place, Woodmere, NY 11598.

**SHARES ELIGIBLE FOR FUTURE SALE**

Prior to this offering, there has been no public market for our ordinary shares, and while we have applied to list our ordinary shares on the Nasdaq Capital Market, we cannot assure you that an active trading market for our ordinary shares will develop. All of the ordinary shares sold in this offering will be freely transferable by persons other than our "affiliates" without restriction or further registration under the Securities Act. Sales of substantial amounts of our ordinary shares in the public market could have a material adverse effect on the prevailing market prices of our ordinary shares. Future sales of substantial amounts of our ordinary shares in the public market could adversely affect prevailing market prices of our ordinary shares from time to time and could impair our ability to raise equity capital in the future

Upon the closing of this offering, we will have 27,500,000 ordinary shares issued and outstanding based on the number of ordinary shares outstanding as of December 31, 2022. In addition, we will have 125,000 ordinary shares issuable upon the exercise of the representative's warrants.

**Lock-up agreements**

For further details on the lock-up agreements, see the section entitled "[Underwriting](#a21) – Lock Up Agreements."

**Rule 144**

In general, under Rule 144 as currently in effect, a person who has beneficially owned our "restricted securities" within the meaning of Rule 144 for at least six months is entitled to sell the restricted securities without registration under the Securities Act, subject to certain restrictions. Persons who are our affiliates may sell within any three-month period a number of restricted securities that does not exceed the greater of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· 1% of the number of shares of ordinary shares then outstanding,
 which will equal approximately 250,000 ordinary shares based on the number of ordinary shares outstanding as of December
 31, 2022, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The average weekly trading volume of our ordinary shares
 on the Nasdaq Capital Market during the four calendar weeks preceding the date on which notice of the sale is filed with the SEC.

Sales under Rule 144 by persons who are deemed our affiliates are subject to manner-of-sale provisions, notice requirements and the availability of current public information about us. Persons who are not our affiliates and have beneficially owned our restricted securities for more than six months but not more than one year may sell the restricted securities without registration under the Securities Act, subject to the availability of current public information about us. Persons who are not our affiliates and have beneficially owned our restricted securities for more than one year may freely sell the restricted securities without registration under the Securities Act.

In addition, in each case, any shares that are subject to lock-up arrangements would only become eligible for sale when the lock-up period expires.

**TAXATION**

***Cayman Islands Taxation***

 **

Prospective investors should consult their professional advisers on the possible tax consequences of buying, holding or selling any ordinary shares under the laws of their country of citizenship, residence or domicile.

The following is a discussion on certain Cayman Islands income tax consequences of an investment in the ordinary shares. The discussion is a general summary of present law, which is subject to prospective and retroactive change. It is not intended as tax advice, does not consider any investor's particular circumstances, and does not consider tax consequences other than those arising under Cayman Islands law.

The Cayman Islands currently levies no taxes on individuals or corporations based upon profits, income, gains or appreciation and there is no taxation in the nature of inheritance tax or estate duty. There are no other taxes likely to be material to us levied by the government of the Cayman Islands except for stamp duties which may be applicable on instruments executed in, or brought within the jurisdiction of the Cayman Islands. The Cayman Islands is not party to any double tax treaties that are applicable to any payments made to or by our company. There are no exchange control regulations or currency restrictions in the Cayman Islands.

Payments of dividends and capital in respect of our ordinary shares will not be subject to taxation in the Cayman Islands, and no withholding will be required on the payment of a dividend or capital to any holder of our ordinary shares, nor will gains derived from the disposal of our ordinary shares be subject to Cayman Islands income or corporation tax.

No stamp duty is payable in respect of the issue of the shares or on an instrument of transfer in respect of a share.

We were incorporated under the laws of the Cayman Islands as an exempted company with limited liability and, as such, have applied for an undertaking from the Governor of the Cayman Islands that no law enacted in the Cayman Islands during the validity of such undertaking imposing any tax to be levied on profits, income, gains or appreciation shall apply to us or our operations and no such tax or any tax in the nature of estate duty or inheritance tax shall be payable (directly or by way of withholding) on the ordinary shares, debentures or other obligations of ours.

 ****

 ***U.S. Federal Income Taxation***

**General**

The following discussion is a summary of U.S. federal income tax considerations generally applicable to U.S. Holders (as defined below) of the ownership and disposition of our ordinary shares. This summary applies only to U.S. Holders that hold our ordinary shares as capital assets (generally, property held for investment) and that have the U.S. dollar as their functional currency. This summary is based on U.S. federal tax laws in effect as of the date of this prospectus, on U.S. Treasury regulations in effect or, in some cases, proposed as of the date of this prospectus, and judicial and administrative interpretations thereof available on or before such date. All of the foregoing authorities are subject to change, which could apply retroactively and could affect the tax consequences described below. No ruling has been sought from the Internal Revenue Service ("IRS") with respect to any U.S. federal income tax considerations described below, and there can be no assurance that the IRS or a court will not take a contrary position. Moreover, this summary does not address the U.S. federal estate, gift, backup withholding, and alternative minimum tax considerations, or any state, local, and non-U.S. tax considerations, relating to the ownership and disposition of our ordinary shares. The following summary does not address all aspects of U.S. federal income taxation that may be important to particular investors in light of their individual circumstances or to persons in special tax situations such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· financial institutions or financial services entities;

· broker-dealers;

· persons that are subject to the mark-to-market accounting rules;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· tax-exempt entities;

· governments or agencies or instrumentalities thereof;

· insurance companies;

· cooperatives;

· persons liable for alternative minimum tax;

· regulated investment companies;

· real estate investment trusts;

· certain expatriates or former long term residents of the United States;

· persons that actually or constructively own 5% or more of our voting shares (including as a result of ownership of the ordinary shares);

· persons that acquired the ordinary shares pursuant to an exercise of employee options, in connection with employee incentive plans or otherwise as compensation;

· persons that hold the ordinary shares as part of a straddle, constructive sale, hedging, conversion or other integrated transaction;

· persons whose functional currency is not the US dollar;

· passive foreign investment companies; or

· controlled foreign corporations.

The discussion below of the U.S. federal income tax consequences to "U.S. Holders" will apply to a beneficial owner of the ordinary shares that is for U.S. federal income tax purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· an individual citizen or resident of the United States;

· a corporation (or other entity treated as a corporation) that is created or organized (or treated as created or organized) in or under the laws of the United States, any state thereof or the District of Columbia;

· an estate whose income is includible in gross income for U.S. federal income tax purposes regardless of its source; or

· a trust if (i) a U.S. court can exercise primary supervision over the trust's administration and one or more U.S. persons are authorized to control all substantial decisions of the trust, or (ii) it has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person.

If a partnership (or other entity classified as a partnership for U.S. federal income tax purposes) is the beneficial owner of the ordinary shares, the U.S. federal income tax treatment of a partner in the partnership generally will depend on the status of the partner and the activities of the partnership.

EACH PROSPECTIVE INVESTOR IN OUR ORDINARY SHARES IS URGED TO CONSULT ITS OWN TAX ADVISOR WITH RESPECT TO THE PARTICULAR U.S. FEDERAL INCOME TAX CONSEQUENCES TO SUCH INVESTOR OF THE ACQUISITION, OWNERSHIP AND DISPOSITION OF OUR ORDINARY SHARES, INCLUDING THE APPLICABILITY AND EFFECT OF ANY STATE, LOCAL, AND NON-U.S. TAX LAWS, AS WELL AS U.S. FEDERAL TAX LAWS AND ANY APPLICABLE TAX TREATIES.

 

***Taxation of Dividends and Other Distributions Paid on Ordinary Shares***

Subject to the passive foreign investment company ("PFIC") rules discussed below, a US Holder generally will be required to include in gross income as ordinary income the amount of any cash dividend paid on the ordinary shares. A cash distribution on the ordinary shares generally will be treated as a dividend for U.S. federal income tax purposes to the extent the distribution is paid out of our current or accumulated earnings and profits (as determined for U.S. federal income tax purposes). Such dividend generally will not be eligible for the dividends-received deduction generally allowed to U.S. corporations in respect of dividends received from other U.S. corporations. The portion of such cash distribution, if any, in excess of such earnings and profits will be applied against and reduce (but not below zero) the U.S. Holder's adjusted tax basis in the ordinary shares. Any remaining excess generally will be treated as gain from the sale or other taxable disposition of such ordinary shares.

***Taxation on the Sale or Other Disposition of Ordinary Shares***

Upon a sale or other taxable disposition of the ordinary shares, and subject to the PFIC rules discussed below, a U.S. Holder generally will recognize capital gain or loss in an amount equal to the difference between the amount realized and the U.S. Holder's adjusted tax basis in the ordinary shares.

The regular U.S. federal income tax rate on capital gains recognized by U.S. Holders generally is the same as the regular U.S. federal income tax rate on ordinary income, except that long term capital gains recognized by non-corporate US Holders generally are subject to U.S. federal income tax at a maximum regular rate of 20%. Capital gain or loss will constitute long term capital gain or loss if the U.S. Holder's holding period for the ordinary shares exceeds one year. The deductibility of capital losses is subject to various limitations.

 

***Passive Foreign Investment Company Rules***

A foreign (i.e., non-U.S.) corporation will be a PFIC if either (a) at least 75% of its gross income in a taxable year of the foreign corporation, including its pro rata share of the gross income of any corporation in which it is considered to own at least 25% of the shares by value, is passive income, or (b) at least 50% of its assets in a taxable year of the foreign corporation, ordinarily determined based on fair market value and averaged quarterly over the year, including its pro rata share of the assets of any corporation in which it is considered to own at least 25% of the shares by value, are held for the production of, or produce, passive income. Passive income generally includes dividends, interest, rents and royalties (other than certain rents or royalties derived from the active conduct of a trade or business), and gains from the disposition of passive assets.

Based on the expected composition (and estimated values) of the assets and the nature of the income of us and our subsidiaries, we do not expect to be treated as a PFIC for the current taxable year. However, our actual PFIC status for our current taxable year or any subsequent taxable year will not be determinable until after the end of such taxable year. Accordingly, there can be no assurance with respect to our status as a PFIC for our current taxable year or any subsequent taxable year.

If we are determined to be a PFIC for any taxable year (or portion thereof) that is included in the holding period of a U.S. Holder of the ordinary shares, and the U.S. Holder did not make a timely qualified electing fund ("QEF") election for our first taxable year as a PFIC in which the U.S. Holder held (or was deemed to hold) the ordinary shares, a QEF election along with a purging election, or a mark-to-market election, each as described below, such holder generally will be subject to special rules for regular U.S. federal income tax purposes with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· any gain recognized by the U.S. Holder on the sale or other disposition of its ordinary shares; and

· any "excess distribution" made to the U.S. Holder (generally, any distributions to such U.S. Holder during a taxable year of the U.S. Holder that are greater than 125% of the average annual distributions received by such U.S. Holder in respect of the ordinary shares during the three preceding taxable years of such U.S. Holder or, if shorter, such U.S. Holder's holding period for the ordinary shares).

Under these rules,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the U.S. Holder's gain or excess distribution will be allocated ratably over the U.S. Holder's holding period for the ordinary shares;

· the amount allocated to the U.S. Holder's taxable year in which the U.S. Holder recognized the gain or received the excess distribution or to the period in the U.S. Holder's holding period before the first day of our first taxable year in which we qualified as a PFIC will be taxed as ordinary income;

· the amount allocated to other taxable years (or portions thereof) of the U.S. Holder and included in its holding period will be taxed at the highest tax rate in effect for that year and applicable to the U.S. Holder; and

· the interest charge generally applicable to underpayments of tax will be imposed in respect of the tax attributable to each such other taxable year of the U.S. Holder.

In general, if we are determined to be a PFIC, a U.S. Holder may avoid the PFIC tax consequences described above with respect to the ordinary shares by making a timely QEF election (or a QEF election along with a purging election). Pursuant to the QEF election, a U.S. Holder will be required to include in income its pro rata share of our net capital gains (as long term capital gain) and other earnings and profits (as ordinary income), on a current basis, in each case whether or not distributed, in the taxable year of the U.S. Holder in which or with which our taxable year ends if we are treated as a PFIC for that taxable year. A U.S. Holder may make a separate election to defer the payment of taxes on undistributed income inclusions under the QEF rules, but if deferred, any such taxes will be subject to an interest charge.

The QEF election is made on a shareholder-by-shareholder basis and, once made, can be revoked only with the consent of the IRS. A U.S. Holder generally makes a QEF election by attaching a completed IRS Form 8621 (Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund), including the information provided in a PFIC annual information statement, to a timely filed U.S. federal income tax return for the taxable year to which the election relates. Retroactive QEF elections generally may be made only by filing a protective statement with such return and if certain other conditions are met or with the consent of the IRS.

In order to comply with the requirements of a QEF election, a U.S. Holder must receive certain information from us. Upon request from a U.S. Holder, we will endeavor to provide to the U.S. Holder no later than 90 days after the request such information as the IRS may require, including a PFIC annual information statement, in order to enable the U.S. Holder to make and maintain a QEF election. However, there is no assurance that we will have timely knowledge of our status as a PFIC in the future or of the required information to be provided.

If a U.S. Holder has made a QEF election with respect to the ordinary shares, and the special tax and interest charge rules do not apply to the ordinary shares (because of a timely QEF election for our first taxable year as a PFIC in which the U.S. Holder holds (or is deemed to hold) the ordinary shares or a QEF election, along with a purge of the PFIC taint pursuant to a purging election, as described below), any gain recognized on the sale or other taxable disposition of the ordinary shares generally will be taxable as capital gain and no interest charge will be imposed. As discussed above, for regular U.S. federal income tax purposes, U.S. Holders of a QEF generally are currently taxed on their pro rata shares of the QEF's earnings and profits, whether or not distributed. In such case, a subsequent distribution of such earnings and profits that were previously included in income generally should not be taxable as a dividend to such U.S. Holders. The adjusted tax basis of a U.S. Holder's the ordinary shares in a QEF will be increased by amounts that are included in income, and decreased by amounts distributed but not taxed as dividends, under the above rules. Similar basis adjustments apply to property if by reason of holding such property the U.S. Holder is treated under the applicable attribution rules as owning ordinary shares in a QEF.

Although a determination as to our PFIC status will be made annually, an initial determination that we are a PFIC generally will apply for subsequent years to a U.S. Holder who held the ordinary shares while we were a PFIC, whether or not we meet the test for PFIC status in those subsequent years. A U.S. Holder who makes the QEF election discussed above for our first taxable year as a PFIC in which the U.S. Holder holds (or is deemed to hold) the ordinary shares, however, will not be subject to the PFIC tax and interest charge rules discussed above with respect to such ordinary shares. In addition, such U.S. Holder will not be subject to the QEF inclusion regime with respect to such ordinary shares for any of our taxable years that end within or with a taxable year of the U.S. Holder and in which we are not a PFIC. On the other hand, if the QEF election is not effective for each of our taxable years in which we are a PFIC and during which the U.S. Holder holds (or is deemed to hold) the ordinary shares, the PFIC rules discussed above will continue to apply to such ordinary shares unless the holder files on a timely filed U.S. federal income tax return (including extensions) a QEF election and a "purging election" to recognize under the rules of Section 1291 of the Code any gain that it would otherwise recognize if the U.S. Holder sold the ordinary shares for their fair market value on the "qualification" date. The qualification date is the first day of our tax year in which we qualify as a QEF with respect to such U.S. Holder. The purging election can only be made if such U.S. Holder held the ordinary shares on the qualification date. A purging election generally creates a deemed sale of such ordinary shares at their fair market value. The gain recognized by the purging election generally will be subject to the special tax and interest charge rules treating the gain as an excess distribution, as described above. As a result of the purging election, the U.S. Holder generally will increase the adjusted tax basis in its ordinary shares by the amount of gain recognized and will also have a new holding period in its ordinary shares for purposes of the PFIC rules.

Alternatively, if a U.S. Holder, at the close of its taxable year, owns ordinary shares in a PFIC that are treated as marketable stock, the U.S. Holder may make a mark-to-market election with respect to such ordinary shares for such taxable year. If the U.S. Holder makes a valid mark-to-market election for the first taxable year of the U.S. Holder in which the U.S. Holder holds (or is deemed to hold) the ordinary shares and for which we are determined to be a PFIC, such holder generally will not be subject to the PFIC rules described above with respect to its ordinary shares as long as such ordinary shares continue to be treated as marketable stock. Instead, in general, the U.S. Holder will include as ordinary income each year that we are treated as a PFIC the excess, if any, of the fair market value of its ordinary shares at the end of its taxable year over the adjusted tax basis in its ordinary shares. The U.S. Holder also will be allowed to take an ordinary loss in respect of the excess, if any, of the adjusted tax basis of its ordinary shares over the fair market value of its ordinary shares at the end of its taxable year (but only to the extent of the net amount of previously included income as a result of the mark-to-market election). The U.S. Holder's adjusted tax basis in its ordinary shares will be adjusted to reflect any such income or loss amounts, and any further gain recognized on a sale or other taxable disposition of the ordinary shares in a taxable year in which we are treated as a PFIC will be treated as ordinary income. Special tax rules may also apply if a U.S. Holder makes a mark-to-market election for a taxable year after the first taxable year in which the U.S. Holder holds (or is deemed to hold) the ordinary shares and for which we are treated as a PFIC.

The mark-to-market election is available only for stock that is regularly traded on a national securities exchange that is registered with the Securities and Exchange Commission, including NASDAQ, or on a foreign exchange or market that the IRS determines has rules sufficient to ensure that the market price represents a legitimate and sound fair market value. Although we have applied to list our ordinary shares on the NASDAQ, we cannot guarantee that our application will be approved or, if approved, that the ordinary shares will continue to be listed and traded on the NASDAQ. U.S. Holders should consult their own tax advisors regarding the availability and tax consequences of a mark-to-market election with respect to the ordinary shares under their particular circumstances.

If we are a PFIC and, at any time, have a foreign subsidiary that is classified as a PFIC, a U.S. Holder of the ordinary shares generally should be deemed to own a portion of the shares of such lower-tier PFIC, and generally could incur liability for the deferred tax and interest charge described above if we receive a distribution from, or dispose of all or part of our interest in, or the U.S. Holder were otherwise deemed to have disposed of an interest in, the lower-tier PFIC. Upon request, we will endeavor to cause any lower-tier PFIC to provide to a U.S. Holder no later than 90 days after the request the information that may be required to make or maintain a QEF election with respect to the lower-tier PFIC. However, there is no assurance that we will have timely knowledge of the status of any such lower-tier PFIC or that we will be able to cause the lower-tier PFIC to provide the required information. A mark-to-market election generally would not be available with respect to such a lower-tier PFIC. U.S. Holders are urged to consult their own tax advisors regarding the tax issues raised by lower-tier PFICs.

A U.S. Holder that owns (or is deemed to own) ordinary shares in a PFIC during any taxable year of the U.S. Holder may have to file an IRS Form 8621 (whether or not a QEF election or mark-to-market election is or has been made) with such U.S. Holder's U.S. federal income tax return and provide such other information as may be required by the U.S. Treasury Department.

The rules dealing with PFICs and with the QEF and mark-to-market elections are very complex and are affected by various factors in addition to those described above. Accordingly, U.S. Holders of the ordinary shares should consult their own tax advisors concerning the application of the PFIC rules to the ordinary shares under their particular circumstances.

**Backup Withholding and Information Reporting**

Certain U.S. Holders are required to report information to the Internal Revenue Service relating to an interest in "specified foreign financial assets," including shares issued by a non-United States corporation, for any year in which the aggregate value of all specified foreign financial assets exceeds $50,000 (or a higher dollar amount prescribed by the Internal Revenue Service), subject to certain exceptions (including an exception for shares held in custodial accounts maintained with a U.S. financial institution). These rules also impose penalties if a U.S. Holder is required to submit such information to the Internal Revenue Service and fails to do so.

In addition, dividend payments with respect to our ordinary shares and proceeds from the sale, exchange or redemption of our ordinary shares may be subject to additional information reporting to the IRS and possible U.S. backup withholding. Backup withholding will not apply, however, to a U.S. Holder who furnishes a correct taxpayer identification number and makes any other required certification on IRS Form W-9 or who is otherwise exempt from backup withholding. U.S. Holders who are required to establish their exempt status generally must provide such certification on IRS Form W-9. U.S. Holders are urged to consult their tax advisors regarding the application of the U.S. information reporting and backup withholding rules.

Backup withholding is not an additional tax. Amounts withheld as backup withholding may be credited against your U.S. federal income tax liability, and you may obtain a refund of any excess amounts withheld under the backup withholding rules by filing the appropriate claim for refund with the IRS and furnishing any required information. We do not intend to withhold taxes for individual shareholders. However, transactions effected through certain brokers or other intermediaries may be subject to withholding taxes (including backup withholding), and such brokers or intermediaries may be required by law to withhold such taxes.

 **THE PRECEDING DISCUSSION OF U.S. FEDERAL TAX CONSIDERATIONS IS FOR GENERAL INFORMATION PURPOSES ONLY. IT IS NOT TAX ADVICE. EACH PROSPECTIVE INVESTOR SHOULD CONSULT ITS OWN TAX ADVISOR REGARDING THE PARTICULAR U.S. FEDERAL, STATE, LOCAL AND FOREIGN TAX CONSEQUENCES OF PURCHASING, HOLDING AND DISPOSING OF OUR ORDINARY SHARES, INCLUDING THE CONSEQUENCES OF ANY PROPOSED CHANGE IN APPLICABLE LAWS.**

**UNDERWRITING**

We have entered into an underwriting agreement with Maxim Group, LLC to act as the representative of the underwriters named below. Subject to the terms and conditions of the underwriting agreement, the underwriters named below have agreed to purchase, and we have agreed to sell to them, the number of our ordinary shares at the initial public offering price, less the underwriting discounts and commissions, as set forth on the cover page of this prospectus and as indicated below:

---

| | |
|:---|:---|
| **Name** | **Number of Shares** |
| Maxim Group, LLC |  |
| **Total** |  |

---

The underwriters are offering the shares subject to their acceptance of the shares from us and subject to prior sale. The underwriting agreement provides that the obligations of the underwriters to pay for and accept delivery of the shares offered by this prospectus are subject to the approval of certain legal matters by their counsel and to certain other conditions. The underwriters are obligated to take and pay for all of the shares offered by this prospectus if any such shares are taken. However, the underwriters are not required to take or pay for the shares covered by the underwriters' over-allotment option described below.

We have granted to the underwriters an option, exercisable for 45 days from the date of this prospectus, to purchase up to an additional 375,000 ordinary shares at the initial public offering price listed on the cover page of this prospectus, less underwriting discounts and commissions. The option may be exercised in whole or in part, and may be exercised more than once, during the 45-day option period. The underwriters may exercise this option solely for the purpose of covering over-allotments, if any, made in connection with the offering contemplated by this prospectus. To the extent the option is exercised, each underwriter will become obligated, subject to certain conditions, to purchase the same percentage of the additional shares as the number listed next to the underwriter's name in the preceding table bears to the total number of shares listed next to the names of all underwriters in the preceding table.

The underwriters will offer the shares to the public at the initial public offering price set forth on the cover page of this prospectus and to certain dealers at that price less a concession not in excess of $0.56 per share. After this offering, the initial public offering price, concession and reallowance to dealers may be reduced by the representative. No such reduction shall change the amount of proceeds to be received by us as set forth on the cover page of this prospectus. The securities are offered by the underwriters as stated herein, subject to receipt and acceptance by them and subject to their right to reject any order in whole or in part. The underwriters have informed us that they do not intend to confirm sales to any accounts over which they exercise discretionary authority.

**Commissions and Expenses**

The underwriting discounts and commissions are equal to 7% of the initial public offering price.

The following table shows the price per share and total initial public offering price, underwriting discounts and commissions, and proceeds before expenses to us. The total amounts are shown assuming both no exercise and full exercise of the underwriters' over-allotment option.

---

| | | | |
|:---|:---|:---|:---|
|  | | **Total** | **Total** |
|  | <br>**Per Share** | **No Exercise of<br> Over-allotment<br> Option** | **Full Exercise of<br> Over-allotment<br> Option** |
| Initial public offering price | $8.00 | $20000000 | $23000000 |
| Underwriting discounts and commissions to be paid by us | $0.56 | $1400000 | $1610000 |
| Proceeds, before expenses, to us | $7.44 | $18600000 | $21390000 |

---

We have agreed to reimburse the representative up to a maximum of $200,000 for out-of-pocket accountable expenses (including the legal fees and other disbursements as disclosed below).

We have agreed to pay all expenses relating to the offering, including, but not limited to, (i) all filing fees and communication expenses relating to the registration of the shares to be sold in this offering with the SEC and the filing of the offering materials with FINRA; (ii) up to $200,000 towards accountable expenses of the representative, including, but not limited to, (a) legal fees incurred by the representative, (b) all reasonable travel and lodging expenses incurred by the representative or its counsel in connection with visits to, and examinations of, our company, (c) translation costs for due diligence purposes, and (d) reasonable costs for road show meetings, including the costs of informational meetings at the offices of the representative (iv) all fees, expenses and disbursements relating to the registration or qualification of the shares under the "blue sky" securities laws of such states and other jurisdictions as the representative may reasonably designate (including, without limitation, all filing and registration fees, and the reasonable fees and disbursements of Representative's counsel); (v) the costs of all mailing and printing of the placement documents, registration statements, prospectuses and all amendments, supplements and exhibits thereto and as many preliminary and final prospectuses as the representative may reasonably deem necessary; and (vi) the costs of preparing, printing and delivering certificates representing the shares and the fees and expenses of the transfer agent for such shares.

We estimate that the total expenses of the offering payable by us, excluding the underwriting discounts and commissions and non-accountable expense allowance, will be approximately $1,170,000, including a maximum aggregate reimbursement of $200,000 of the representative's accountable expenses.

We have agreed that for a period of 12 months from the closing of this offering, the representative will have a right of first refusal to act as manager with respect to any public or private sale of any of our securities or any of our subsidiaries' securities or other financings, excluding issuances in connection with an equity incentive plan for our employees; provided, however, that such right shall be subject to FINRA Rule 5110(f)(2). In connection with such right, we have agreed to furnish the representative with the terms and conditions of any financing and/or bona fide proposed private or public sale of securities to be made by us and/or any of our subsidiaries, and the name and address of such person, entity, or representative.

In addition, we have agreed, until the effectiveness of the registration statement in connection with this offering, not to negotiate with any other broker-dealer relating to a possible private and/or public offering of our securities without the written consent of the representative. If we do not complete the offering and listing of the securities on a national securities exchange and enter into discussions regarding a letter of intent or similar agreement with a third party broker-dealer and enter into a new engagement letter, and/or effect a private and/or public offering of the securities with another broker-dealer or any other person without the written consent of the representative, prior to the 12 month period following the effective date of our letter of intent with the representative, we will be liable to the representative for the accountable expenses of the representative and $100,000; provided, however, that such fees shall be subject to FINRA Rule 5110(f)(2) and shall not apply if and to the extent the representative has advised us of the representative's inability or unwillingness to proceed with this offering.

The address of the representative is 300 Park Avenue, 16th Floor, New York, NY 10022.

**Representative's Warrants**

In addition, we have agreed to issue the representative's warrants to the representative to purchase up to an aggregate number of ordinary shares equal to 5% of the total number of ordinary shares sold in this offering, including any shares issued pursuant to the exercise of the underwriters' over-allotment option. Such warrants shall have an exercise price equal to 110% of the initial public offering price of the ordinary shares sold in this offering. The representative's warrants may be purchased in cash or via cashless exercise, will be exercisable for five years from the effective date of the registration statement of which this prospectus forms a part and will terminate on the fifth anniversary of the effective date of the registration statement of which this prospectus forms a part. The representative's warrants and the underlying shares will be deemed compensation by FINRA, and therefore will be subject to FINRA Rule 5110(g)(1). In accordance with FINRA Rule 5110(g)(1), and except as otherwise permitted by FINRA rules, neither the representative's warrants nor any of our shares issued upon exercise of the representative's warrants may be sold, transferred, assigned, pledged or hypothecated, or be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective economic disposition of such securities by any person, for a period of 180 days immediately following the effective date of the registration statement of which this prospectus forms a part. In addition, although the representative's warrants and the underlying ordinary shares will be registered in the registration statement of which this prospectus forms a part, we have also agreed that the representative's warrants will provide for registration rights in certain cases. These registration rights apply to all of the securities directly and indirectly issuable upon exercise of the representative's warrants. The piggyback registration right provided will not be greater than seven years from the effective date of the offering in compliance with FINRA Rule 5110(f)(2)(G)(v).

We will bear all fees and expenses attendant to registering the ordinary shares underlying the representative's warrants, other than any underwriting commissions incurred and payable by the warrant holders. The exercise price and number of ordinary shares issuable upon exercise of the representative's warrants may be adjusted in certain circumstances, including in the event of a stock dividend, extraordinary cash dividend or our recapitalization, reorganization, merger or consolidation. The warrant exercise price and/or underlying shares may also be adjusted for issuances of ordinary shares at a price below the warrant exercise price.

**Lock-Up Agreements**

Our officers, directors and shareholders have agreed, subject to certain exceptions, to a six-month lock-up period from the date of this prospectus with respect to the ordinary shares that they beneficially own, including the issuance of shares upon the exercise of convertible securities and options that may be currently outstanding or which may be issued. This means that, for a period of six months following the date of this prospectus, such persons may not offer, sell, pledge or otherwise dispose of these securities without the prior written consent of the representative.

The representative has no present intention to waive or shorten the lock-up period; however, the terms of the lock-up agreements may be waived at its discretion. In determining whether to waive the terms of the lock-up agreements, the representative may base its decision on its assessment of the relative strengths of the securities markets and companies similar to ours in general, and the trading pattern of, and demand for, our securities in general.

**Listing**

We have applied to list our ordinary shares on the Nasdaq Capital Market under the symbol "SJA". We make no representation that such application will be approved or that our ordinary shares will trade on such market either now or at any time in the future. However, we will not complete this offering unless we are so listed.

**Electronic Offer, Sale and Distribution**

A prospectus in electronic format may be made available on websites or through other online services maintained by the underwriters or selling group members, if any, or by their affiliates, and the underwriters may distribute prospectus electronically. The underwriters may agree to allocate a number of ordinary shares to selling group members for sale to their online brokerage account holders. The ordinary shares to be sold pursuant to internet distributions will be allocated on the same basis as other allocations. Other than the prospectus in electronic format, the information on, or that can be accessed through, these websites and any information contained in any other website maintained by these entities is not part of, and is not incorporated by reference into, this prospectus or the registration statement of which this prospectus forms a part, has not been approved and/or endorsed by us or the underwriters, and should not be relied upon by investors.

In connection with this offering, certain of the underwriters or securities dealers may distribute prospectuses by electronic means, such as e-mail.

**Passive Market Making**

Any underwriter who is a qualified market maker on Nasdaq may engage in passive market making transactions on Nasdaq, in accordance with Rule 103 of Regulation M under the Exchange Act, during a period before the commencement of offers or sales of the shares and extending through the completion of the distribution. Passive market makers must comply with applicable volume and price limitations and must be identified as a passive market maker. In general, a passive market maker must display its bid at a price not in excess of the highest independent bid for such security. If all independent bids are lowered below the passive market maker's bid, however, the passive market maker's bid must then be lowered when certain purchase limits are exceeded.

**Pricing of this Offering**

Prior to this offering, there has been no public market for our ordinary shares. The initial public offering price for our ordinary shares will be determined through negotiations between us and the representative. Among the factors to be considered in these negotiations will be prevailing market conditions, our financial information, market valuations of other companies that we and the representative believe to be comparable to us, estimate of our business potential and earning prospects, the present state of our development and other factors deemed relevant. The initial public offering price of our ordinary shares in this offering does not necessarily bear any direct relationship to the assets, operations, book or other established criteria of value of our company.

**Potential Conflicts of Interest**

The underwriters and their affiliates may, from time to time, engage in transactions with and perform services for us in the ordinary course of their business for which they may receive customary fees and reimbursement of expenses. In the ordinary course of their various business activities, the underwriters and their affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (including bank loans) for their own accounts and for the accounts of their customers and such investment and securities activities may involve securities and/or instruments of our Company. The underwriters and their affiliates may also make investment recommendations and/or publish or express independent research views in respect of such securities or instruments and may at any time hold, or recommend to clients that they acquire, long and/or short positions in such securities and instruments.

**No Sales of Similar Securities**

We have agreed not to offer, pledge, announce the intention to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase or otherwise transfer or dispose of, directly or indirectly, any ordinary shares or any securities convertible into or exercisable or exchangeable for ordinary shares or enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of our ordinary shares, whether any such transaction is to be settled by delivery of ordinary shares or such other securities, in cash or otherwise, without the prior written consent of the representative, for a period of 180 days from the date of this prospectus.

**Selling Restrictions**

Other than in the United States, no action may be taken, and no action has been taken, by us or the underwriters that would permit a public offering of the ordinary shares offered by, or the possession, circulation or distribution of, this prospectus in any jurisdiction where action for that purpose is required. The ordinary shares offered by this prospectus may not be offered or sold, directly or indirectly, nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such shares be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and to observe any restrictions relating to the offering and the distribution of this prospectus. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any ordinary shares offered by this prospectus in any jurisdiction in which such an offer or a solicitation is unlawful.

In addition to the offering of the ordinary shares in the United States, the underwriters may, subject to applicable foreign laws, also offer the ordinary shares in certain countries.

**Stamp Taxes**

If you purchase ordinary shares offered by this prospectus, you may be required to pay stamp taxes and other charges under the laws and practices of the country of purchase, in addition to the initial public offering price listed on the cover page of this prospectus.

**Price Stabilization, Short Positions and Penalty Bids**

Until the distribution of the ordinary shares offered by this prospectus is completed, rules of the SEC may limit the ability of the underwriters to bid for and to purchase our ordinary shares. As an exception to these rules, the underwriters may engage in transactions effected in accordance with Regulation M under the Exchange Act that are intended to stabilize, maintain or otherwise affect the price of our ordinary shares. The underwriters may engage in over-allotment sales, syndicate covering transactions, stabilizing transactions and penalty bids in accordance with Regulation M.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Stabilizing transactions consist of bids or purchases
 made by the managing underwriter for the purpose of preventing or slowing a decline in the market price of our securities while this
 offering is in progress.

· Short sales and over-allotments occur when the managing
 underwriter, on behalf of the underwriting syndicate, sells more of our shares than they purchase from us in this offering. In order
 to cover the resulting short position, the managing underwriter may exercise the overallotment option described above and/or may
 engage in syndicate covering transactions. There is no contractual limit on the size of any syndicate covering transaction. The underwriters
 will deliver a prospectus in connection with any such short sales. Purchasers of shares sold short by the underwriters are entitled
 to the same remedies under the federal securities laws as any other purchaser of units covered by the registration statement.

· Syndicate covering transactions are bids for or purchases
 of our securities on the open market by the managing underwriter on behalf of the underwriters in order to reduce a short position
 incurred by the managing underwriter on behalf of the underwriters.

· A penalty bid is an arrangement permitting the managing
 underwriter to reclaim the selling concession that would otherwise accrue to an underwriter if the ordinary shares originally sold
 by the underwriter were later repurchased by the managing underwriter and therefore were not effectively sold to the public by such
 underwriter.

Stabilization, syndicate covering transactions and penalty bids may have the effect of raising or maintaining the market price of our ordinary shares or preventing or delaying a decline in the market price of our ordinary shares. As a result, the price of our ordinary shares may be higher than the price that might otherwise exist in the open market.

Neither we nor the underwriters make any representation or prediction as to the effect that the transactions described above may have on the prices of our ordinary shares. These transactions may occur on Nasdaq or on any trading market. If any of these transactions are commenced, they may be discontinued without notice at any time.

**Offer Restrictions Outside the United States**

Other than in the United States, no action has been taken by us or the underwriters that would permit a public offering of the securities offered by this prospectus in any jurisdiction where action for that purpose is required. The securities offered by this prospectus may not be offered or sold, directly or indirectly, nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such securities be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and to observe any restrictions relating to the offering and the distribution of this prospectus. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities offered by this prospectus in any jurisdiction in which such an offer or a solicitation is unlawful.

***Cayman Islands***

This prospectus does not constitute a public offer of the ordinary shares, whether by way of sale or subscription, in the Cayman Islands. Each underwriter has represented and agreed that it has not offered or sold, and will not offer or sell, directly or indirectly, any ordinary shares to any member of the public in the Cayman Islands.

***China***

This prospectus has not been and will not be circulated or distributed in the PRC and the shares may not be offered or sold to any person for re-offering or resale, directly or indirectly, to any resident of the PRC except pursuant to applicable laws and regulations of the PRC. For the purpose of this section only, the PRC does not include Taiwan and the special administrative regions of Hong Kong and Macau. This prospectus has not been nor will it be approved by or registered with the relevant Chinese governmental authorities, and it does not constitute nor is it intended to constitute an offer of securities within the meaning prescribed under the PRC securities law or other laws and regulations of the PRC. Accordingly, this prospectus shall not be offered or made available, nor may the ordinary shares be marketed or offered for sale to the general public, directly or indirectly, in the PRC. The ordinary shares shall only be offered or sold to PRC investors that are authorized or qualified to be engaged in the purchase of the ordinary shares being offered. Potential investors in the PRC are responsible for obtaining all the relevant regulatory approvals/licenses from the Chinese government by themselves, including, without limitation, those that may be required from the state administration of foreign exchange, the China banking regulatory commission, the ministry of commerce and the national development and reform commission, where appropriate, and for complying with all the relevant PRC laws and regulations in subscribing for ordinary shares.

***European Economic Area***

In relation to each Member State of the European Economic Area that has implemented the Prospectus Directive, or a Relevant Member State, from and including the date on which the Prospectus Directive is implemented in that Relevant Member State, or the Relevant Implementation Date, an offer of the shares to the public may not be made in that Relevant Member State prior to the publication of a prospectus in relation to the shares that has been approved by the competent authority in that Relevant Member State or, where appropriate, approved in another Relevant Member State and the competent authority in that Relevant Member State has been notified, all in accordance with the Prospectus Directive, except that it may, with effect from and including the Relevant Implementation Date, make an offer of the shares to the public in that Relevant Member State at any time,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· to legal entities that are authorized or regulated to
 operate in the financial markets or, if not so authorized or regulated, whose corporate purpose is solely to invest in securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· to any legal entity that has two or more of (1) an
 average of at least 250 employees during the last financial year, (2) a total balance sheet of more than €43,000,000, and (3)
 an annual net turnover of more than €50,000,000, as shown in its last annual or consolidated accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· to fewer than 100 natural or legal persons (other than
 qualified investors as defined in the Prospectus Directive; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· in any other circumstances that do not require the publication
 by the company of a prospectus pursuant to Article 3 of the Prospectus Directive;

provided that no such offer of shares shall result in a requirement for the publication by the company of a prospectus pursuant to Article 3 of the Prospectus Directive.

For purposes of the above provision, the expression "an offer of ADSs to the public" in relation to any shares in any Relevant Member State means the communication in any form and by any means of sufficient information on the terms of the offer and the shares to be offered so as to enable an investor to decide to purchase or subscribe the shares, as the same may be varied in that Member State by any measure implementing the Prospectus Directive in that Member State, and the expression "Prospectus Directive" means Directive 2003/71/EC and includes any relevant implementing measure in each Relevant Member State.

***France***

Neither this prospectus nor any other offering material relating to the shares described in this prospectus has been submitted to the clearance procedures of the Autorité des Marchés Financiers or of the competent authority of another member state of the European Economic Area and notified to the Autorité des Marchés Financiers. The shares have not been offered or sold and will not be offered or sold, directly or indirectly, to the public in France. Neither this prospectus nor any other offering material relating to the shares has been or will be (1) released, issued, distributed or caused to be released, issued or distributed to the public in France; or (2) used in connection with any offer for subscription or sale of the shares to the public in France.

Such offers, sales and distributions will be made in France only:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to qualified investors (*investisseurs estraint*) and/or to a restricted circle of investors (*cercle estraint d'investisseurs*), in each case investing for
 their own account, all as defined in, and in accordance with, articles L.411-2, D.411-1, D.411-2, D.734-1, D.744-1, D.754-1 and D.764-1of
 the French Code monétaire et financier;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to investment services providers
 authorized to engage in portfolio management on behalf of third parties; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in a transaction that, in accordance
 with article L.411-2-II-1° -or-2° -or 3° of the French Code monétaire et financier and article 211-2 of
 the General Regulations (*Réglement Général*) of the Autorité des Marchés Financiers, does
 not constitute a public offer (*appel public á l'épargne*).

The shares may be resold directly or indirectly, only in compliance with articles L.411-1, L.411-2, L412-1 and L.621-8 through L.621-8-3 of the French Code monétaire et financier.

***Hong Kong***

These securities have not been delivered for registration to the registrar of companies in Hong Kong and, accordingly, must not be issued, circulated or distributed in Hong Kong other than to persons whose ordinary business it is to buy or sell shares or debentures, whether as principal or agent, within the meaning of the Hong Kong companies ordinance (the "ordinance") or in circumstances which do not constitute an offer to the public for the purposes of the ordinance. Unless permitted by the securities laws of Hong Kong, no person may issue or cause to be issued in Hong Kong these securities or any or other invitation, advertisement or document relating to the securities to anyone other than a person whose business involves the acquisition, disposal or holding of securities, whether as principal or agent.

***Japan***

The ordinary shares have not been and will not be registered under the Financial Instruments and Exchange Law of Japan, and ordinary shares will not be offered or sold, directly or indirectly, in Japan or to, or for the benefit of, any resident of Japan (which term as used herein means any person resident in Japan, including any corporation or other entity organized under the laws of Japan), or to others for re-offering or resale, directly or indirectly, in Japan or to a resident of Japan, except pursuant to any exemption from the registration requirements of, and otherwise in compliance with, the Financial Instruments and Exchange Law and any other applicable laws, regulations and ministerial guidelines of Japan.

***Korea***

The shares have not been and will not be registered under the Financial Investments Services and Capital Markets Act of Korea and the decrees and regulations thereunder (the "FSCMA"), and the shares have been and will be offered in Korea as a private placement under the FSCMA. None of the shares may be offered, sold or delivered directly or indirectly, or offered or sold to any person for re-offering or resale, directly or indirectly, in Korea or to any resident of Korea except pursuant to the applicable laws and regulations of Korea, including the FSCMA and the Foreign Exchange Transaction Law of Korea and the decrees and regulations thereunder (the "FETL"). Furthermore, the purchaser of the shares shall comply with all applicable regulatory requirements (including but not limited to requirements under the FETL) in connection with the purchase of the shares. By the purchase of the shares, the relevant holder thereof will be deemed to represent and warrant that if it is in Korea or is a resident of Korea, it purchased the shares pursuant to the applicable laws and regulations of Korea.

***Malaysia***

No prospectus or other offering material or document in connection with the offer and sale of the shares has been or will be registered with the Securities Commission of Malaysia ("Commission") for the Commission's approval pursuant to the Capital Markets and Services Act 2007. Accordingly, this prospectus and any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of the shares may not be circulated or distributed, nor may the shares be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Malaysia other than (i) a closed end fund approved by the Commission; (ii) a holder of a Capital Markets Services License; (iii) a person who acquires the shares, as principal, if the offer is on terms that the shares may only be acquired at a consideration of not less than RM250,000 (or its equivalent in foreign currencies) for each transaction; (iv) an individual whose total net personal assets or total net joint assets with his or her spouse exceeds RM3 million (or its equivalent in foreign currencies), excluding the value of the primary residence of the individual; (v) an individual who has a gross annual income exceeding RM300,000 (or its equivalent in foreign currencies) per annum in the preceding 12 months; (vi) an individual who, jointly with his or her spouse, has a gross annual income of RM400,000 (or its equivalent in foreign currencies), per annum in the preceding 12 months; (vii) a corporation with total net assets exceeding RM10 million (or its equivalent in a foreign currencies) based on the last audited accounts; (viii) a partnership with total net assets exceeding RM10 million (or its equivalent in foreign currencies); (ix) a bank licensee or insurance licensee as defined in the Labuan Financial Services and Securities Act 2010; (x) an Islamic bank licensee or takaful licensee as defined in the Labuan Financial Services and Securities Act 2010; and (xi) any other person as may be specified by the Commission; provided that, in the each of the preceding categories (i) to (xi), the distribution of the shares is made by a holder of a Capital Markets Services License who carries on the business of dealing in securities. The distribution in Malaysia of this prospectus is subject to Malaysian laws. This prospectus does not constitute and may not be used for the purpose of public offering or an issue, offer for subscription or purchase, invitation to subscribe for or purchase any securities requiring the registration of a prospectus with the Commission under the Capital Markets and Services Act 2007.

***Singapore***

The securities represented may not be offered or sold, nor may any document or other material in connection with such securities be distributed, either directly or indirectly, (i) to persons in Singapore other than under circumstances in which such offer or sale does not constitute an offer or sale of such securities to the public in Singapore or (ii) to the public or any member of the public in Singapore other than pursuant to, and in accordance with the conditions of, an exemption invoked under division 5a or part iv of the companies act, chapter 50 of Singapore and to persons to whom the securities may be offered or sold under such exemption.

***Taiwan***

The ordinary shares have not been and will not be registered or filed with, or approved by, the Financial Supervisory Commission of Taiwan pursuant to relevant securities laws and regulations and may not be offered or sold in Taiwan through a public offering or in circumstances which constitute an offer within the meaning of the Securities and Exchange Act of Taiwan or relevant laws and regulations that require a registration, filing or approval of the Financial Supervisory Commission of Taiwan. No person or entity in Taiwan has been authorized to offer or sell the ordinary shares in Taiwan.

***United Kingdom***

An offer of the shares may not be made to the public in the United Kingdom within the meaning of Section 102B of the Financial Services and Markets Act 2000, as amended, or the FSMA, except to legal entities that are authorized or regulated to operate in the financial markets or, if not so authorized or regulated, whose corporate purpose is solely to invest in securities or otherwise in circumstances that do not require the publication by the company of a prospectus pursuant to the Prospectus Rules of the Financial Services Authority, or the FSA.

An invitation or inducement to engage in investment activity (within the meaning of Section 21 of FSMA) may only be communicated to persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 or in circumstances in which Section 21 of FSMA does not apply to the company.

All applicable provisions of the FSMA with respect to anything done by the underwriters in relation to the shares must be complied with in, from or otherwise involving the United Kingdom.

**LEGAL MATTERS**

Certain legal matters as to United States federal and New York law in connection with this offering will be passed upon for us by Loeb & Loeb LLP, New York, New York. The validity of the ordinary shares offered in this offering and certain other matters as to Cayman Islands law will be passed upon for us by Carey Olsen Hong Kong LLP. Loeb & Loeb LLP may rely upon Carey Olsen Hong Kong LLP with respect to matters governed by Cayman Islands law. The underwriters are being represented by Pryor Cashman LLP, New York, New York, in connection with this offering.

**EXPERTS**

The consolidated financial statements of SolarJuice Co., Ltd. as of December 31, 2021 and 2020, and for each of the two years ended in the period ended December 31, 2021 included in this prospectus have been so included in reliance upon the report of Marcum Asia CPAs LLP, an independent registered public accounting firm, appearing elsewhere in this prospectus, and on the authority of said firm as experts in accounting and auditing.

The audit report covering the consolidated financial statements included in this prospectus contains an explanatory paragraph that states that we have incurred significant losses and need to raise additional funds to sustain the operations. These conditions raise substantial doubt about our ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of that uncertainty.

**WHERE YOU CAN FIND ADDITIONAL INFORMATION**

We have filed with the SEC a registration statement (including amendments and exhibits to the registration statement) on Form F-1 under the Securities Act with respect to the ordinary shares offered by this prospectus. This prospectus, which constitutes a part of the registration statement, does not contain all of the information set forth in the registration statement or the exhibits and schedules that are part of the registration statement. For further information about us and about the ordinary shares, you should refer to our registration statement and its exhibits. This prospectus summarizes the content of contracts and other documents to which we refer you. Since this prospectus may not contain all of the information that is important to you, you should review the full text of these documents. We have included copies of these documents as exhibits to our registration statement.

You may review a copy of the registration statement, including exhibits and any schedule filed therewith, and obtain copies of such materials at the SEC's Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains a website at http://www.sec.gov that contains reports, proxy and information statements and other information regarding issuers, like us, that file electronically with the SEC.

Upon the effectiveness of this offering, we will become subject to periodic reporting and other information requirements of the Exchange Act as applicable to foreign private issuers and will file reports, including annual reports on Form 20-F, and other information with the SEC. As we are a foreign private issuer, we are exempt from some of the Exchange Act reporting requirements, the rules prescribing the furnishing and content of proxy statements to shareholders, and Section 16 short swing profit reporting for our officers and directors and for holders of more than 10% of our shares. In addition, we will not be required under the Exchange Act to file periodic reports and financial statements with the SEC as frequently or as promptly as U.S. companies whose securities are registered under the Exchange Act. You may read and copy any document we file with the SEC at the SEC's Public Reference Room at 100 F Street, N.E., Washington D.C. 20549. Please call the SEC at 1-800-SEC-0330 for more information on the public reference rooms and their copy charges. The SEC also maintains a website that contains reports, proxy and information statements and other information regarding issuers, such as us, who file electronically with the SEC. The address of that website is http://www.sec.gov.

We maintain a website at http://www.solar4america.com. Information contained on, or that can be accessed through, our website is not a part of, and shall not be incorporated by reference into, this prospectus.

**EXPENSES RELATING TO THIS OFFERING**

The following table sets forth an itemization of the total expenses we expect to be incurred in connection with this offering, other than the underwriting discounts and commissions and non-accountable expense allowance, which we will be required to pay:

---

| | |
|:---|:---|
|  | US$ |
| US Securities and Exchange Commission registration fee | 2535 |
| Financial Industry Regulatory Authority filing fee | 6500 |
| The Nasdaq Capital Market listing Fee | 75000 |
| Legal fees and expenses | 750000 |
| Accounting fees and expenses | 100000 |
| Printing expenses | 20000 |
| Transfer agent and registrar expenses | 3500 |
| Underwriter's expenses | 200000 |
| Other fees and expenses | 12465 |
| Total | 1170000 |

---

All amounts are estimates, except the US Securities and Exchange Commission registration fee, the Nasdaq Capital Market listing fee and the Financial Industry Regulatory Authority filing fee.

**SOLARJUICE CO., LTD.**

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
|  | **Page** |
| [Report of Independent Registered Public Accounting Firm](#fs2) | F-2 |
| [Consolidated Balance Sheets as of December 31, 2021 and 2020](#fs3) | F-3 |
| [Consolidated Statements of Operations for the years ended December 31, 2021 and 2020](#fs4) | F-4 |
| [Consolidated Statements of Comprehensive (Loss) Income for the years ended December 31, 2021 and 2020](#fs5) | F-5 |
| [Consolidated Statements of Changes in Equity for the years ended December 31, 2021 and 2020](#fs6) | F-6 |
| [Consolidated Statements of Cash Flows for the years ended December 31, 2021 and 2020](#fs7) | F-7 |
| [Notes to Consolidated Financial Statements](#fs8) | F-8 |

---

---

| | |
|:---|:---|
| <u>[Condensed Consolidated Balance Sheets as of June 30, 2022 (unaudited) and December 31, 2021](#bs06)</u> | F-30 |
| <u>[Unaudited Condensed Consolidated Statements of Operations for the six months ended June 30, 2022 and 2021](#is06)</u> | F-31 |
| <u>[Unaudited Condensed Consolidated Statements of Comprehensive Loss for the six months ended June 30, 2022 and 2021](#cl06)</u> | F-32 |
| <u>[Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity for the six months ended June 30, 2022 and 2021](#se06)</u> | F-33 |
| <u>[Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021](#cf06)</u> | F-34 |
| <u>[Notes to Unaudited Condensed Consolidated Financial Statements](#notes06)</u> | F-35 |

---

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (PCAOB ID 5395)**

To the Shareholders and Board of Directors of

SolarJuice Co., Ltd.

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of SolarJuice Co., Ltd. (the "Company") as of December 31, 2021 and 2020, the related consolidated statements of operations, comprehensive (loss) income, changes in equity and cash flows for each of the two years in the period ended December 31, 2021, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020 and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2021, in conformity with accounting principles generally accepted in the United States of America.

**Explanatory Paragraph – Going Concern**

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As more fully described in Note 2, the Company has incurred significant losses and needs to raise additional funds to sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the US federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Marcum Asia CPAs LLP (formerly, Marcum Bernstein & Pinchuk LLP)

We have served as the Company's auditor since 2020.

New York, NY<br> July 18, 2022

**SOLARJUICE CO., LTD.**

**CONSOLIDATED BALANCE SHEETS**

**(In thousands, except for share and per share data)**

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2021** | **December 31,**<br>**2020** |
| ASSETS |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $1342 | $14824 |
| &nbsp;&nbsp;&nbsp;Restricted cash | 640 | 883 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 15494 | 9641 |
| &nbsp;&nbsp;&nbsp;Contract Asset | 1621 |  |
| &nbsp;&nbsp;&nbsp;Inventories | 20553 | 14765 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 4993 | 1768 |
| &nbsp;&nbsp;&nbsp;Amount due from related parties | 369 | 370 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 45012 | 42251 |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 930 | 1118 |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 3577 | 518 |
| &nbsp;&nbsp;&nbsp;Deferred Tax assets, net | 138 |  |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 2953 | 398 |
| &nbsp;&nbsp;&nbsp;Total assets | $52610 | $44285 |
| LIABILITIES AND EQUITY |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $18126 | $11296 |
| &nbsp;&nbsp;&nbsp;Accrued liabilities | 3779 | 1940 |
| &nbsp;&nbsp;&nbsp;Income tax payable | 957 |  |
| &nbsp;&nbsp;&nbsp;Advance from customers | 3103 | 652 |
| &nbsp;&nbsp;&nbsp;Short-term borrowings | 8638 | 2842 |
| &nbsp;&nbsp;&nbsp;Amount due to related parties | 2935 |  |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities, current | 428 | 225 |
| &nbsp;&nbsp;&nbsp;Accrued warranty reserve | 268 | – |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 38234 | 16955 |
| &nbsp;&nbsp;&nbsp;Long term borrowings | 4508 |  |
| &nbsp;&nbsp;&nbsp;Deferred tax liabilities, net |  | 2 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities, non-current | 2500 | 156 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 45242 | 17113 |
| Equity: |  |  |
| &nbsp;&nbsp;&nbsp;Ordinary shares, par $0.00004, 1,250,000,000 shares authorized, 25,000,000 shares issued and outstanding as of December 31, 2021 and 2020, respectively\* | 1 | 1 |
| &nbsp;&nbsp;&nbsp;Subscription receivable | (1) | (1) |
| &nbsp;&nbsp;&nbsp;Additional paid in capital | 34613 | 31141 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive (loss) income | (344) | 125 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (30990) | (7709) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity attributable to the shareholders of SolarJuice Co., Ltd. | 3279 | 23557 |
| &nbsp;&nbsp;&nbsp;Non-controlling interests | 4089 | 3615 |
| &nbsp;&nbsp;&nbsp;Total equity | 7368 | 27172 |
| &nbsp;&nbsp;&nbsp;Total liabilities and equity | $52610 | $44285 |

---

\* The shares are presented on a retrospective basis to reflect the Company's Recapitalization and the reverse stock split (Note 11(a)) 

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

**SOLARJUICE CO., LTD.**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

**(In thousands, except for share and per share data)**

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2021** | **2020** |
| Net sales | $153276 | $113505 |
| Cost of revenue | 145896 | 104313 |
| &nbsp;&nbsp;&nbsp;Gross profit | 7380 | 9192 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | 18593 | 3889 |
| &nbsp;&nbsp;&nbsp;Sales, marketing and customer service | 6128 | 1939 |
| &nbsp;&nbsp;&nbsp;Provision for credit losses | 2635 | 145 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 27356 | 5973 |
| Operating (loss) income | (19976) | 3219 |
| Other income (expense): |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense, net | (887) | (329) |
| &nbsp;&nbsp;&nbsp;Net foreign exchange loss | (858) | (1390) |
| &nbsp;&nbsp;&nbsp;Others | 524 | (129) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense, net | (1221) | (1848) |
| (Loss) income before income taxes | (21197) | 1371 |
| &nbsp;&nbsp;&nbsp;Income tax expense | (1427) | (424) |
| Net (loss) income | $(22624) | $947 |
| &nbsp;&nbsp;&nbsp;Less: Net income attributable to non-controlling interests | 657 | 184 |
| Net (loss) income attributable to shareholder of SolarJuice Co., Ltd. | $(23281) | $763 |
| Net (loss) income per ordinary share: |  |  |
| &nbsp;&nbsp;&nbsp;Basic and Diluted | $(0.93) | $0.03 |
| Weighted average shares outstanding –basic and diluted\* | 25000000 | 25000000 |

---

\* The shares are presented on a retrospective basis to reflect the Company's Recapitalization and the reverse stock split (Note 11(a))

 

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

**SOLARJUICE CO., LTD.**

**CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME**

**(In thousands)**

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2021** | **2020** |
| Net (loss) income | $(22624) | $947 |
| Other comprehensive income (loss), net of tax of nil: |  |  |
| Foreign currency translation (loss) /gain | (652) | 1248 |
| Total comprehensive (loss) income | (23276) | 2195 |
| Comprehensive income attributable to noncontrolling interests | 474 | 433 |
| Comprehensive (loss) income attributable to shareholder of SolarJuice. Co., Ltd | $(23750) | $1762 |

---

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

**SOLARJUICE CO., LTD.**

**CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY** 

**(In thousands, except for share and per share data)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Ordinary Shares** | **Ordinary Shares** | | | | | | | |
|  | **Shares\*** | **Amount** | **Subscription**<br>**Receivable** | **Additional Paid-In**<br>**Capital** | **Accumulated**<br>**Deficit** | **Accumulated Other Comprehensive**<br>**(Loss) Income** | **Equity Attributable to Shareholder of**<br>**SolarJuice** | **Noncontrolling**<br>**Interests** | **Total**<br>**Equity** |
| **Balance at December 31, 2019** | 25000000 | $1 | $(1) | $15145 | $(8472) | $(874) | $5799 | $2933 | $8732 |
| Net income |  |  |  |  | 763 |  | 763 | 184 | 947 |
| Foreign currency translation gains |  |  |  |  |  | 999 | 999 | 249 | 1248 |
| Capital contribution from noncontrolling interests |  |  |  |  |  |  |  | 249 | 249 |
| Shareholder contribution | – | – | – | 15996 | – | – | 15996 | – | 15996 |
| **Balance at December 31, 2020** | 25000000 | $1 | $(1) | $31141 | $(7709) | $125 | $23557 | $3615 | $27172 |
| Net loss |  |  |  |  | (23281) |  | (23281) | 657 | (22624) |
| Foreign currency translation loss |  |  |  |  |  | (469) | (469) | (183) | (652) |
| Share-based compensation | – | – | – | 3472 | – | – | 3472 | – | 3472 |
| **Balance at December 31, 2021** | 25000000 | $1 | $(1) | $34613 | $(30990) | $(344) | $3279 | $4089 | $7368 |

---

\* The shares are presented on a retrospective basis to reflect the Company's Recapitalization and the reverse stock split (Note 11(a))

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

**SOLARJUICE CO., LTD.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(In thousands)**

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2021** | **2020** |
| **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Net (loss) income | $(22624) | $947 |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile net (loss) income to net cash used in operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and Amortization | 3862 | 389 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Write-down of inventories | 554 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | 2635 | 145 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of right-of-use assets | 388 | 317 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrual of warranty reserve | 268 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 3472 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in deferred taxes | (140) | (78) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposition of fixed assets | 36 |  |
| &nbsp;&nbsp;&nbsp;**Changes in operating assets and liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 1175 | 872 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount due from related parties |  | (568) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (6185) | (469) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (3225) | 96 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 7468 | (4890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advance from customers | 2451 | 234 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | 957 | (274) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities and other liabilities | 1841 | 1007 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | (396) | (320) |
| **Net cash used in operating activities** | **(7463)** | **(2592)** |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of PDI assets (Note 4) | (8003) |  |
| &nbsp;&nbsp;&nbsp;Purchases of property and equipment | (429) | (159) |
| &nbsp;&nbsp;&nbsp;Proceeds from disposal of property, plant and equipment | 45 | – |
| **Net cash used in investing activities** | **(8387)** | **(159)** |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from capital injection by a shareholder |  | 15996 |
| &nbsp;&nbsp;&nbsp;Proceeds from capital injection by noncontrolling shareholders |  | 249 |
| &nbsp;&nbsp;&nbsp;Proceeds from loan by a related party | 2935 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from line of credit and loans | 172574 | 122072 |
| &nbsp;&nbsp;&nbsp;Repayment of line of credit and loans | (173258) | (121793) |
| **Net cash generated from financing activities** | **2251** | **16524** |
| &nbsp;&nbsp;&nbsp;Effect of exchange rate changes on cash | (126) | 870 |
| &nbsp;&nbsp;&nbsp;(Decrease) increase in cash, cash equivalents and restricted cash | (13725) | 14643 |
| &nbsp;&nbsp;&nbsp;Cash, cash equivalents and restricted cash at beginning of year | 15707 | 1064 |
| &nbsp;&nbsp;&nbsp;Cash, cash equivalents and restricted cash at end of year | $1982 | $15707 |
| **Reconciliation of cash and cash equivalents, to the consolidated balance sheets** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | 1342 | 14824 |
| &nbsp;&nbsp;&nbsp;Restricted cash | 640 | 883 |
| &nbsp;&nbsp;&nbsp;Total cash, cash equivalents, and restricted cash | $1982 | $15707 |
| **Supplemental cash flow information:** |  |  |
| &nbsp;&nbsp;&nbsp;Interest paid | $900 | $335 |
| &nbsp;&nbsp;&nbsp;Income tax paid | $58 | $1206 |
| **Non-cash activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Right of use assets obtained in exchange for operating lease obligations | $2799 |  |

---

 

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

 

 

 

**SOLARJUICE CO., LTD.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in US$ thousands, except for share and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Description of Business and Organization** 

**Description of Business**

SolarJuice Co., Ltd. ("SolarJuice" or the "Company") and its subsidiaries (collectively the "Group") is a global provider of photovoltaic (PV) and other smart energy solutions for residential and small commercial customers. The Group's business mainly includes wholesale distribution of Solar PV modules, inverters, and other components, as well as energy storage and other related products in Australia. The Group started to engage in roofing and solar energy systems installation in the United States in 2021 and is also starting to assemble solar modules for sale in the United States in 2022.

**Organization**

The Company was incorporated in Cayman Islands in February 2017 by SPI Energy Co., Ltd. ("SPI") to hold 80% of Solar Juice Pty Ltd ("SJ Australia"). SJ Australia was incorporated in September 2009 to be a wholesaler of solar components in Australia. In May 2015, SPI China (HK) Ltd., a then related company to the Group, acquired 80% ownership of SJ Australia. In December 2018, SPI disposed of SPI China (HK) Ltd. and transferred 80% ownership of SJ Australia to the Company. SolarJuice (HK) Ltd ("SJ HK") was incorporated in January 2005. SolarJuice American Inc. ("SJ US") was incorporated in July 2019 and started to engage in roofing and solar energy systems installation business in the United States from 2021.

The major subsidiaries of the Company as of December 31, 2021 are summarized as below:

---

| | | | |
|:---|:---|:---|:---|
| **Major Subsidiaries** | **Abbreviation** | **Ownership** | **Location** |
| Solar Juice Pty Ltd. | SJ Australia | 80% | Australia |
| SolarJuice American Inc. | SJ US | 100% | United States |
| SolarJuice (HK) Ltd. | SJ HK | 100% | Hong Kong |

---

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Going concern** 

The Group has incurred a net loss of $22,624 during the year ended December 31, 2021. The cash flow used in the operation activities for the year ended December 31, 2021 was $7,463, the accumulated deficit as of December 31, 2021 was $30,990. These conditions raise substantial doubt about the Group's ability to continue as a going concern.

For the next 12 months from the issuance date of this report, the Group plans to continue implementing various measures to increase revenue and control the cost and expenses to an acceptable level. Such measures include: 1) improve the profitability of the business in the United States; 2) strictly control and reduce business, marketing and advertising expenses; 3) begin a new line of business involving the assembly of solar modules. The Group also plans to obtain public and private market equity financing and seek credit facilities.

While management believes that the its plans will be adequate to allow the Group to meet its liquidity and cash flow requirements within one year after the date that the consolidated financial statements are issued, there is no assurance that the plans will be successfully implemented. If the Group fails to achieve these goals, the Group may need additional financing to repay debt obligations and execute its business plan, and the Group may not be able to obtain the necessary additional capital on a timely basis, on acceptable terms, or at all. In the event that financing sources are not available, or that the Group is unsuccessful in increasing its gross profit margin and reducing operating losses, the Group may be unable to implement its current plans for expansion, repay debt obligations or respond to competitive pressures, any of which would have a material adverse effect on the Group's business, financial condition and results of operations and may materially adversely affect its ability to continue as a going concern.

The consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded assets or the amounts and classification of liabilities or any other adjustments that might be necessary should the Group be unable to continue as a going concern.

&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Summary of Significant Accounting Policies** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Basis of Presentation** 

The accompanying consolidated financial statements of the Group are prepared in conformity with accounting principles generally accepted in the United States of America ("US GAAP").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Principles of Consolidation** 

The consolidated financial statements include the financial statements of the Group, and its subsidiaries. All material inter-company transactions and balances have been eliminated upon consolidation. For consolidated subsidiaries where the Group's ownership in the subsidiary is less than 100%, the equity interest not held by the Group is shown as noncontrolling interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Use of Estimates** 

The preparation of the financial statements in conformity with US GAAP requires the Group to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant accounting estimates reflected in the Group's consolidated financial statements include the allowance made for doubtful accounts, inventory write-downs, the estimated useful lives of long-lived assets, valuation allowance of deferred tax assets, the lease discount rate, the grant-date fair value of share-based compensation awards and related forfeiture rates, the estimation of progress towards contract completion based on cost-based input method and fair value of financial instruments. Changes in facts and circumstances may result in revised estimates. The current economic environment has increased the degree of uncertainty inherent in those estimates and assumptions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)** **Foreign Currency Translation and Foreign Currency Risk** 

The functional currency of the Group and subsidiaries located in the United States is the United States dollar ("US$" or "$"). The functional currency of the Group's subsidiaries located in the Hong Kong and Australia are Hong Kong Dollar ("HKD') and Australia Dollar ("AUD"), respectively. Transactions denominated in foreign currencies are re-measured into the functional currency at the rates of exchange prevailing when the transactions occur. Monetary assets and liabilities denominated in foreign currencies are re-measured into the functional currency at rates of exchange in effect at the balance sheet dates. Exchange gains and losses are included in the consolidated statements of operations.

The Group's reporting currency is the US$. Assets and liabilities of subsidiaries, whose functional currency is not the US$, are translated into US$ using exchange rates in effect at each period end, and revenues and expenses are translated into US$ at average rates prevailing during the year, and equity is translated at historical exchange rates, except for the change in retained earnings during the year which is the result of the income or loss. Gains and losses resulting from the translations of the financial statements of these subsidiaries into US$ are recognized as other comprehensive income or loss in the consolidated statement of comprehensive (loss) income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)** **Fair Value of Financial Instruments** 

The Group measures at fair value certain of its financial and non-financial assets and liabilities by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, essentially an exit price, based on the highest and best use of the asset or liability. The levels of the fair value hierarchy are:

Ÿ Level 1 — Quoted market prices in active markets for identical assets or liabilities.

---

| | |
|:---|:---|
| Ÿ | Level 2 — Significant other observable inputs (e.g., quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable, such as interest rate and yield curves, and market-corroborated inputs). |

---

Ÿ Level 3 — Unobservable inputs in which there is little or no market data, which require the reporting unit to develop its own assumptions.

The Group uses quoted market prices to determine the fair value when available. If quoted market prices are not available, the Group measures fair value using valuation techniques that use, when possible, current market-based or independently-sourced market parameters, such as interest rates and currency rates.

Cash and cash equivalents, restricted cash, accounts receivable and payable, prepaid expenses and other current assets, amount due from and due to related parties, short term borrowings, accrued liabilities, advance from customers and other current liabilities approximate fair value because of the short maturity period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)** **Asset Acquisition** 

When the Group acquires other entities, if the assets or a group of assets that acquired and liabilities assumed do not constitute a business, the transaction is accounted for as an asset acquisition. Assets are recognized based on the cost, which generally includes the transaction costs of the asset acquisition, and no gain or loss is recognized unless the fair value of noncash assets given as consideration differs from the assets' carrying amounts on the Group's books. If the consideration given is not in the form of cash (that is, in the form of noncash assets, liabilities incurred, or equity interest issued), measurement is based on either the cost to the acquiring entity or the fair value of the assets (or net assets) acquired, whichever is more clearly evident and, thus, more reliably measurable. The cost of a group of assets acquired in an asset acquisition is allocated to the individual assets acquired or liabilities assumed based on their relative fair value and does not give rise to goodwill.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)** **Cash and Cash Equivalents** 

Cash and cash equivalents include cash on hand, cash accounts, interest bearing savings accounts and all highly liquid investments with original maturities of three months or less, and which are unrestricted as to withdrawal or use. As of December 31, 2021 and 2020, the Group had cash of $1,342 and $14,824, respectively, and had no cash equivalents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h)** **Restricted Cash** 

Restricted cash represent bank deposits with designated use, which cannot be withdraw without certain approval or notice.

As of December 31, 2021 and 2020, the Group had restricted bank deposits of $640 and $883, respectively, mainly established for paying the obligations of SJ Australia for debtor finance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)** **Accounts Receivable, net** 

The Group grants open credit terms to credit-worthy customers. Accounts receivable are primarily related to the Group's sales of PV components, and revenue from roofing and solar energy systems installation.

The Group maintains allowances for credit losses for estimated losses resulting from the inability of its customers to make required payments. Accounts receivables are considered past due based on the contractual terms. In establishing the allowance, management considers historical losses, the financial condition, the accounts receivables aging, the payment patterns and the forecasted information in pooling basis upon the use of the Current Expected Credit Loss Model ("CECL Model") in accordance with ASC Topic 326, Financial Instruments - Credit Losses. Accounts receivable that are deemed to be uncollectible are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. There is a time lag between when the Company estimates a portion of or the entire account balances to be uncollectible and when a write off of the account balances is taken. The Group does not have any off-balance-sheet credit exposure related to its customers. Contractually, the Group may charge interest for extended payment terms and require collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(j)** **Inventories** 

Inventories are stated at the lower of cost or net realizable value. The cost of raw materials is determined on the basis of weighted average cost method. The cost of finished goods is determined on the basis of weighted average and comprises direct materials, direct labor and an appropriate proportion of overhead. Net realizable value is based on estimated selling prices less selling expenses and any further costs expected to be incurred for completion. Adjustments to reduce the cost of inventory to net realizable value are made, for estimated excess, obsolescence, or impaired balances if any based on factors such as expected demand and market conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(k)** **Property and Equipment, Net** 

The Group accounts for its property and equipment at cost, less accumulated depreciation and any impairment. Cost includes the prices paid to acquire or construct the assets, interest capitalized during the construction period and any expenditure that substantially extends the useful life of an existing asset. The Group expenses repair and maintenance costs when they are incurred. Depreciation is recorded on the straight-line method based on the estimated useful lives of the assets as follows:

---

| | |
|:---|:---|
| Furniture, fixtures and equipment | 3-7 years |
| Automobiles | 3-7 years |
| Computers | 4 years |
| Leasehold improvements | The shorter of the estimated life or the lease term |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(l)** **Intangible Assets, Net** 

Intangible assets primarily consist of customer relationships. Amortization is recorded on the straight-line method based on the estimated useful lives of the assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(m)** **Impairment of Long-lived Assets** 

The Group's long-lived assets include property and equipment, and other intangible assets with finite lives. The Group evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Group first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. Any impairment write-downs would be treated as permanent reductions in the carrying amounts of the assets and a charge to operations would be recognized. Management has performed a review of all long-lived assets and has determined that no impairment loss for long-lived assets has occurred for the years ended December 31, 2021 and 2020.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(n)** **Income Taxes** 

The Group accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion, or all, of a deferred tax asset will not be realized.

The Group recognizes in the consolidated financial statements the impact of a tax position, if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, management presumes that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information. In addition, a tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to be recognized in the financial statements. The tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. The Group's tax liability associated with unrecognized tax benefits is adjusted periodically due to changing circumstances, such as the progress of the tax audits, case law developments and new or emerging legislation. Such adjustments are recognized entirely in the period in which they are identified. The Group records interest and penalties related to an uncertain tax position, if and when required, as part of income tax expense in the consolidated statements of income. No reserve for uncertainty tax position was recorded by the Group for the years ended December 31, 2021 and 2020.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(o)** **Revenue Recognition** 

The Group adopted Accounting Standards Codification ("ASC") No. 606 "Revenue from Contracts with Customers" ("ASC 606" or "Topic 606") on January 1, 2019.

Under ASC 606, an entity recognizes revenue when our customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements or elements of an arrangement within the scope of ASC 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price, including variable consideration, if any; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation.

The Group's accounting practices under ASC Topic 606 are as follows:

*<u>Sale of PV components</u>*

 

Revenue on sale of PV components includes one performance obligation of delivering the products and the revenue is recognized at a point in time following the transfer of control of such products to the customer, which typically occurs upon shipment or acceptance of the customer depending on the terms of the underlying contracts.

*<u>Revenue from roofing and solar energy systems installation</u>*

 

Revenue from roofing and solar energy system installation is recognized over time.

For revenue from solar energy system installation, the Company's only performance obligation is to design and install a customized solar energy system, reinstall the customer's existing solar energy system. For revenue from roofing, the Company's only performance obligation is to design and build the roof system per customer specifications.

All costs to obtain and fulfill contracts associated with system sales and other product sales are expensed to cost of revenue when the corresponding revenue is recognized.

The Company recognizes revenue using a cost-based input method that recognizes revenue and gross profit as work is performed based on the relationship between actual costs incurred compared to the total estimated cost of the contract, to determine the Company's progress towards contract completion and to calculate the corresponding amount of revenue and gross profit to recognize. The total estimated cost of the contract consists of material cost and labor cost, and is developed based on the size and specific situation of different jobs. Changes in estimates are mainly due to: (i) unforeseen field conditions that impacts the estimated workload, and (ii) change of the unit price of material or labor cost.

If the estimated total costs on any contract are greater than the net contract revenues, we recognize the entire estimated loss in the period the loss becomes known.

The Company's roofing projects involve the construction of a specific roof systems in accordance each customer's selection; the Company's solar energy system installations involve solar modules being retrofitted to existing consumer roofs using rails, then connected to the utility using an inverter system. For both solar energy system installation and roofing, typically jobs are completed within three months, the specific timing depends on the size of the job and the complexity of the job site, and the contract price includes all material and labor needed, and payments are collected based on specific milestones.

The Company provides solar energy systems and roofing installation for various customers, such as homeowners and real estate developers, but the design and installation for each customer differs substantially on the basis of each customer's needs and the type of shingle or roof that is placed with the solar energy system. The asset consequently has no alternative use to the Company because the customer specific design limits the Company's practical ability to readily direct the solar energy system to another customer. As such the Company's performance does not create an asset with an alternative use to the Company. Pursuant to the contract, the customers agree to pay for any costs, expenses and losses incurred by the Company upon termination, and therefore, revenue is recognized over time according to ASC 606-10-25-27(c).

All costs to obtain and fulfill contracts associated with system sales and other product sales are expensed to cost of revenue when the corresponding revenue is recognized.

The Company recognizes revenue using a cost-based input method that recognizes revenue and gross profit as work is performed based on the relationship between actual costs incurred compared to the total estimated cost of the contract, to determine the Company's progress towards contract completion and to calculate the corresponding amount of revenue and gross profit to recognize. The total estimated cost of the contract consists of material cost and labor cost, and are developed based on the size and specific situation of different jobs. Changes in estimates mainly due to: (i) unforeseen field conditions that impacts the estimated workload, (ii) change of the unit price of material or labor cost.

If the estimated total costs on any contract are greater than the net contract revenues, we recognize the entire estimated loss in the period the loss becomes known.

*<u>Other revenue</u>*

Other revenue primarily represents freight revenue for product shipments. Other revenue is recognized at a point in time following the transfer of control of such service to the customer, which typically occurs upon shipment of product or acceptance of the customer depending on the terms of the underlying contracts.

*<u>Disaggregation of revenues</u>*

The Group's revenues are primarily from Australia and the United States. The Group disaggregates its revenue by its three primary categories: sales of PV components, revenue from roofing and solar energy systems installation and other. The following is a summary of the Group's disaggregated revenues for the years ended December 31, 2021 and 2020:

---

| | | | | |
|:---|:---|:---|:---|:---|
| ***<u>By revenue stream</u>*** | **For the year ended December 31, 2021 (in $000s)** | **For the year ended December 31, 2021 (in $000s)** | **For the year ended December 31, 2021 (in $000s)** | **For the year ended December 31, 2021 (in $000s)** |
|  | **Sales of PV components** | **Revenue from roofing and solar energy systems installation** | **Other** | **Total** |
| Australia | 123138 |  | 1110 | 124248 |
| United States | – | 29028 | – | 29028 |
| Total | $123138 | $29028 | $1110 | $153276 |

---

---

| | | | |
|:---|:---|:---|:---|
| ***<u>By revenue stream</u>*** | **For the year ended December 31, 2020 (in $000s)** | **For the year ended December 31, 2020 (in $000s)** | **For the year ended December 31, 2020 (in $000s)** |
|  | **Sales of PV components** | **Other** | **Total** |
| Australia | $112442 | $1063 | $113505 |

---

*<u>Contract balance</u>*

The following table provides information about accounts receivable, net, contract assets and contract liabilities from contracts with customers:

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br> **2021** | **December 31,**<br> **2020** |
| Accounts receivable, net | $15494 | $9641 |
| Contract assets | $1621 | $– |
| Advance from customers | $3103 | $652 |

---

The contract assets primarily relate to the Group's rights to consideration for work completed but not billed at the reporting date, primarily for the revenue from roofing and solar energy systems installation in the United States. The contract assets are transferred to receivables when the rights become unconditional after billing is issued.

Advance from customers, which represents a contract liability, primarily is unrecognized revenue received from customers. Advance from customers is recognized as (or when) the Group performs under the contract. During the years ended December 31, 2021 and 2020, the Group recognized $652 and $418 as revenue that was included in the balance of advance from customers at January 1, 2021 and 2020, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;**(p) Warranties**

*<u>Workmanship Warranty for roofing and solar energy systems installation</u>*

For the revenue from roofing and solar energy systems installation in the United States, the Group provides a workmanship warranty for 10 years to cover the quality of the Group's service. The warranty is designed to cover service defects and damages to customer properties caused by the Group's installation of the solar energy systems or roofing service. The 10-year warranty is consistent with the term provided by competitors and is provided by the Group to remain market competitive. The Group determined that its 10-year workmanship warranty constitutes an assurance-type warranty and should continue to be accounted for under ASC 460 - Guarantees, instead of a service-type warranty which should be accounted for under Topic 606. Based on historical experience and projections of warranty claims, and estimated replacement costs, the Group currently provides a reserve for the workmanship warranty based on 1% of sales of roofing and solar energy system installation, to be periodically adjusted based on historical actual workmanship warranty expenses. The Group's product warranty liability was $268 as of December 31, 2021.

*<u>Product Warranty for products used in roofing and solar energy systems installation</u>*

The Group purchases products including modules and batteries from third-party manufacturers, sometimes with its "Solar4America" label and delivers the products together with its installation service. The Group receives product warranty from the manufactures and transfers the product warranty to the clients in the builder or home improvement contracts. The product manufacturers will service their warranties by repairing or replacing the products. The workmanship warranty does not include the product warranties (modules and inverters) which are covered directly by the manufacturers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(q)** **Cost of Revenues** 

Cost of revenues for PV components is mainly from direct purchase price of PV components. Cost of revenue from roofing and solar energy systems installation includes all direct material, labor and indirect costs related to contract performance, such as indirect labor, utility and truck rental. Cost of revenues for other revenue is mainly from shipping and logistic costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(r)** **Share-based Compensation** 

The Group's share-based payment transactions with employees, such as restricted shares and share options, are measured based on the grant-date fair value of the equity instrument granted. The fair value of the award is recognized as compensation expense, net of estimated forfeitures, over the period during which an employee is required to provide service in exchange for the award on straight line basis, which is generally the vesting period. Forfeitures are required to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(s)** **Segment Reporting** 

Operating segments are defined as components of a company which separate financial information is available that is evaluated regularly by the operating decision maker in deciding how to allocate resources and assessing performance. The Group's chief operating decision maker ("CODM") is Chief Executive Officer, Mr. Hoong Khoeng Cheong. Based on the financial information presented to and reviewed by the CODM, the Group has determined that it had a single operating and reporting segment for the year ended December 31, 2020.

With the expansion and development of the Group's businesses, it divided its operations into two reporting segments including (1) solar products distribution, (2) roofing and solar energy systems installation and its remaining businesses are combined and disclosed as "Other", starting from the year ended December 31, 2021, to better align with the Group's strategic development plan. The Group's CODM evaluates segment performance based on the measures of revenues, costs of sales and gross profit (loss).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(t)** **Earnings/Loss Per Share** 

Basic earnings (loss) per share is computed by dividing net income (loss) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding for the period. Diluted earnings (loss) per share is calculated by dividing net income (loss) attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Potentially dilutive shares are excluded from the computation if their effect is anti-dilutive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(u)** **Comprehensive Income (Loss)** 

US GAAP generally requires that recognized revenue, expenses, gains and losses be included in net income or loss. Although certain changes in assets and liabilities are reported as separate components of the equity section of the consolidated balance sheet, such items, along with net income, are components of comprehensive income or loss. The components of other comprehensive income or loss consist solely of foreign currency translation adjustments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v)** **Commitments and Contingencies** 

Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. Legal costs incurred in connection with loss contingencies are expensed as incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(w)** **Leases** 

The Group adopted Leases (ASC Topic 842), using the modified retrospective transition method effective January 1, 2019. The Group categorizes leases with contractual terms longer than twelve months as either operating or finance lease. The Group has no finance leases for any of the periods presented.

Right-of-use ("ROU") assets represent the Group's rights to use underlying assets for the lease term and lease liabilities represent the Group's obligation to make lease payments arising from the lease. Lease liabilities are recognized at the present value of the future lease payments at the lease commencement date and ROU assets are recognized at amount of lease liabilities and any prepaid lease payments. The interest rate used to determine the present value of the future lease payments is the Group's incremental borrowing rate because the interest rate implicit in the leases is not readily determinable. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. The lease terms include periods under options to extend or terminate the lease when it is reasonably certain that the Group will exercise that option. The Group generally uses the base, non-cancelable, lease term when determining the ROU assets and liabilities.

Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Group determines if an arrangement is a lease at inception. The lease payments under the lease arrangements are fixed. Non-lease components include payments for building management, utilities and property tax. It separates the non-lease components from the lease components to which they relate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(x)** **Recently Accounting Pronouncements** 

*Recently Adopted Accounting Standards*

In December 2019, the FASB issued ASU No. 2019-12, Income taxes (Topic 740), Simplifying the Accounting for Income Taxes. This guidance amends ASC Topic 740 and addresses several aspects including 1) evaluation of step-up tax basis of goodwill when there is not a business combination, 2) policy election to not allocate consolidated taxes on a separate entity basis to entities not subject to income tax, 3) accounting for tax law changes or rates during interim periods, 4) ownership changes from equity method investment to subsidiary or vice versa, 5) elimination of exception to intraperiod allocation when there is gain in discontinued operations and a loss from continuing operations, 6) treatment of franchise taxes that are partially based on income. The Group adopted ASU 2019-12 from January 1, 2021. The adoption of ASU No. 2019-12 did not have a material impact on the Group's consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, which amends the current accounting guidance and requires the measurement of all expected losses based on historical experience, current conditions and reasonable and supportable forecasts. For trade receivables, loans, and other financial instruments, the Group will be required to use a forward-looking expected loss model that reflects losses that are probable rather than the incurred loss model for recognizing credit losses. The Group adopted ASU 2019-12 from January 1, 2020. Application of the amendments is through a cumulative- effect adjustment to retained earnings as of the effective date. The adoption did not have a material impact on its consolidated financial statements.

In November 2021, The FASB issued ASU No. 2021-10, Government Assistance (Topic 832), Disclosures by Business Entities about Government Assistance. This guidance requires business entities to make annual disclosures about transactions with a government (including government assistance) they account for by analogizing to a grant or contribution accounting model (e.g., IAS 20, Accounting for Government Grants and Disclosure of Government Assistance). The required disclosures include the nature of the transaction, the entity's related accounting policy, the financial statement line items affected and the amounts reflected in the current period financial statements, as well as any significant terms and conditions. An entity that omits any of this information because it is legally prohibited from being disclosed needs to include a statement to that effect. The guidance is effective for financial statements issued for annual periods beginning after December 15, 2021, and early adoption is permitted. The Group adopted ASU 2021-10 from January 1, 2022, and the adoption did not have a material impact on its consolidated financial statements.

The Group does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows.

&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Asset acquisitions** 

Petersen-Dean, Inc. ("PDI") specialized in United States residential roofing and solar installations and went bankrupt in late 2020. On January 6, 2021 and February 25, 2021, respectively, SJ US participated in two court auctions and emerged as the highest bidder for two asset packages, one for PDI's consumer contracts and one for all remaining operating assets, including properties and equipment, inventories, customer contracts and customer lists, with cash consideration of $7,725, transaction costs of $278 and assumed liability of $11,000, which is pledged with accounts receivable with amount of $11,764 of PDI. Assumed liability represents that SJ US has agreed to assume up to $11,000 of outstanding balances under the PDI factoring facility with the lender LSQ Funding Group L.C. ("LSQ"), which is pledged by the accounts receivable of PDI factored as of the acquisition date. SJ US is responsible to repay the remaining part of the facility if the collection of the factored accounts receivable is not able to cover the loan balance, and if there is any excess amount on the factored accounts receivable after the LSQ factoring facility is fully repaid, remaining factored accounts receivable will be released to SJ US The cash consideration has been fully paid as of December 31, 2021. The acquisition is accounted as an asset acquisition according to ASC 805 since the assets purchased does not meet the definition of a business. The difference between the consideration with the fair value of the assets acquired of $952 was allocated to the purchased assets based on their relative fair values. As of February 25, 2021, the amount of assets acquired and liability assumed are as follows:

---

| | |
|:---|:---|
|  | **Amount Recognized** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Assets acquired:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>Intangible assets-Customer list and contracts | $3016 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net | 3306 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | 911 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Land | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 11764 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Liability assumed** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debtor-in-possession | (11000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets acquired and liabilities assumed** | 8003 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total consideration** | $8003 |

---

The Company entered into an accounts receivable factoring arrangement with LSQ after the acquisition, the Company sold new accounts receivable and used the collection from both the new accounts receivable and pledged accounts receivable of PDI to repay the borrowing. As of December 31, 2021, the balance of the borrowing is $3,434, the balance of pledged accounts receivable assumed from PDI was $1,296. The Company considered that the collectability of the remaining accounts receivable is low and provided full allowance of $1,296.

&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Accounts Receivable, net** 

The accounts receivable as of December 31, 2021 and 2020 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2021** | **December 31,**<br>**2020** |
| Accounts receivable | $18112 | $9683 |
| Less: Allowance for doubtful accounts | $(2618) | $(42) |
| Accounts receivable, net | $15494 | $9641 |

---

The movements of allowance for doubtful accounts are as follows:

---

| | | |
|:---|:---|:---|
|  | **2021** | **2020** |
| Balance as of January 1, | $42 | $295 |
| Addition | 2635 | 156 |
| Reversal | **–** | (11) |
| Written off | (54) | (396) |
| Foreign currency translation difference | (5) | (2) |
| Balance as of December 31, | $2618 | $42 |

---

On March 18, 2018, SJ Australia entered into debtor finance agreements with Scottish Pacific (BFS) Pty Ltd. ("Scottish Pacific"), whereby Scottish Pacific provided SJ Australia an invoice discounting facility. On February 24, 2021, SJ US entered into debtor finance agreements with LSQ, whereby LSQ provided SJ US an invoice discounting facility. As of December 31, 2021 and 2020, all the outstanding accounts receivable of SJ Australia and SJ US was pledged to Scottish Pacific and LSQ for a total gross amount of $18,112 and $9,683, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Inventories** 

Inventories as of December 31, 2021 and 2020 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2021** | **December 31,**<br>**2020** |
| Raw material | $1774 | $– |
| Finished goods | 15933 | 13720 |
| Goods in transit | 2846 | 1045 |
| Total inventories | $20553 | $14765 |

---

During the years ended December 31, 2021 and 2020, inventories were written down by $554 and nil, respectively, to reflect the lower of cost or net realizable value.

&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Prepaid Expenses and Other Current Assets** 

Prepaid expenses and other current assets as of December 31, 2021 and 2020 consist of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2021** | **December 31,**<br>**2020** |
| Deposit for acquisition | $– | $785 |
| Other deposits and prepayments | 4959 | 528 |
| Income tax receivables |  | 455 |
| Others | 34 | – |
| Total prepaid and other current assets, net | $4993 | $1768 |

---

Deposit for acquisition of $785 as of December 31, 2020 represents the down payment required to purchase PDI's commercial business assets. As of December 31, 2021 and 2020, other deposits and prepayments of $4,959 and $528, respectively, mainly represents payment made to suppliers to secure orders.

&nbsp;&nbsp;&nbsp;&nbsp;**8.** **Intangible Assets, net** 

Intangible assets as of December 31, 2021 and 2020 consisted of the following:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Useful Life**<br>**(in months)** |<br>**Gross** | **Accumulated**<br>**Amortization** | **Impairment**<br>**Charge** |<br>**Net** |
| **As of December 31, 2021** |  |  |  |  |  |
| Customer Relationship | 10-120 | $7642 | $(5193) | $(1519) | $930 |
| **As of December 31, 2020** |  |  |  |  |  |
| Customer Relationship | 120 | $4625 | $(1900) | $(1607) | $1118 |

---

The customer relationship was mainly contributed by the acquisition of SJ Australia in May 2015. The customer relationship with clients of SJ Australia was the key driver of the revenue, which were expected to bring further economic benefit to the Group's business, the balance of SJ Australia is amortized over the useful life of 10 years. The consumer contracts acquired of SJ US mainly represented the customer contracts in process purchased from PDI, the Company could continue the execution of the contracts to generate profit by inputting material and labor cost. As of December 31, 2021, all the contracts in process purchased have either been executed or forfeited, and the cost has been fully amortized during the year ended December 31, 2021.

The impairment balance was recorded in the year of 2016, no impairment loss was provided for intangible assets for the years ended December 31, 2021 and 2020. Amortization expense for intangible assets was $3,293 and $295 for the years ended December 31, 2021 and 2020, respectively.

As of December 31, 2021, the estimated future amortization expense related to intangible assets is as follows:

---

| | |
|:---|:---|
| | **USD** |
| 2022 | $276 |
| 2023 | 276 |
| 2024 | 276 |
| 2025 | 102 |
|  | $930 |

---

&nbsp;&nbsp;&nbsp;&nbsp;**9.** **Property and Equipment, net** 

Property and equipment as of December 31, 2021 and 2020 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2021** | **December 31,**<br>**2020** |
| Furniture, fixtures and equipment | $3416 | $121 |
| Automobiles | 795 | 599 |
| Computers | 175 | 222 |
| Leasehold improvements | 251 | 202 |
|  | 4637 | 1144 |
| Less: accumulated depreciation | (1060) | (626) |
|  | $3577 | $518 |

---

Depreciation of property and equipment was $569 and $94 for the years ended December 31, 2021 and 2020, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;**10.** **Short-term Borrowings and Long-term Borrowings** 

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2021** | **December 31,**<br>**2020** |
| Debtor finance | $3638 | $2789 |
| Short-term bank borrowings | 5000 |  |
| Other short-term borrowings | – | 53 |
| Total Short-term borrowings | 8638 | 2842 |
| Long-term bank borrowings | 4508 | – |
| Total borrowings | $13146 | $2842 |

---

*<u>Debtor Finance</u>*

SJ Australia, entered into debtor finance agreements with Scottish Pacific on March 18, 2018, whereby Scottish Pacific provided SJ Australia an invoice discounting facility with a limit of $5,624, at service fee charge of 0.13% based on the invoices processed, and discount fee charge of margin percentage minus 0.59% (margin percentage is around 6.76% during 2021 and 2020) based on the average daily debtor finance balance. The accounts receivable collection of SJ Australia was automatically transferred to Scottish Pacific for the debtor finance repayment at the ending of each work day.

SJ US, entered into a debtor finance agreement with LSQ on February 24, 2021, whereby LSQ provided SJ US invoice discounting facility with a limit of $11,000, at funds usage daily fee of 0.0222% to 0.0333% per day based on the average amount of balance. LSQ shall maintain a reserve account from which to make advances to SJ US Debtors of SJ US will pay directly to the account established by LSQ for repayment.

*<u>Short-term bank borrowings</u>*

On February 24, 2021, SJ US was granted a loan from the East West Bank in the amount of $5,000 with a maturity date of February 23, 2022 (the "EWB loan"), at an interest rate of 3.25% per annum, which is secured by the deposit of $5,000 from the ultimate controlling shareholder, SPI.

*<u>Long-term bank borrowings</u>*

On May 18, 2021, SJ US was granted a Paycheck Protection Program Loan ("PPP loan") from East West Bank in the amount of $4,508, which was in the form of a promissory note, maturing on May 17, 2026. PPP loan is available to be used to pay for payroll costs, including salaries, commissions, and similar compensation, group health care benefits, and paid leaves, rent, utilities, and interest on certain other outstanding debt. The PPP loan bears interest at a rate of 1.00% per annum, payable monthly commencing on the date that is seven months after the date of the loan. The PPP loan may be prepaid at any time prior to maturity with no prepayment penalties.

The interest expense on borrowings were $900 and $333 for the years ended December 31, 2021 and 2020, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;**11.** **Equity** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Ordinary shares, recapitalization and reverse stock split

On February 16, 2017, the Company issued one ordinary share with par value of $1 per share to the Company's only shareholder, SPI Investments Holding Limited, which is a subsidiary of SPI.

On May 14, 2021, the Company amended its Articles of Association and the Company's share capital was amended to $50, divided into 5,000,000,000 ordinary shares at a par value of $0.00001 each. On the same date, the Company issued 99,900,000 ordinary shares of a par of $0.00001 to its shareholder, SPI Investments Holding Limited, at par value. This nominal share issuance is considered as a recapitalization in substance. On July 6, 2022, the Company declared a one for four reverse stock split. As a result of the amendment of par value of ordinary shares, the recapitalization and the reverse stock split, all share and per share amounts in the consolidated financial statements have been retrospectively adjusted.

The issued and outstanding ordinary shares were 25,000,000 shares at a par value of $0.00004, as of December 31, 2021 and 2020, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Additional paid-in capital

The Group's ultimate controlling shareholder, SPI, made a capital contribution of $15,000 in December 2020 to the Group's subsidiary SJ US.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Non-controlling interests

As of December 31, 2021 and 2020, the Group's noncontrolling interests represented 20% ownership by noncontrolling shareholders in SJ Australia.

In May 2020, SJ Australia issued its shares pro rata to its existing shareholders. SPI and the noncontrolling shareholders of SJ Australia subscribed the shares and made capital investments of $996 and $249, respectively, resulting in an increase of noncontrolling interest of $249 and additional paid-in capital of $996. There is no change in the ownership percentage from this share subscription.

&nbsp;&nbsp;&nbsp;&nbsp;**12.** **Share-based Compensation** 

During the years ended December 31, 2021 and 2020, the share-based compensation expense was $3,472 and nil, respectively.

The following table summarizes the consolidated share-based compensation by line items:

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** |
|  | **December 31,**<br> **2021** | **December 31,**<br> **2020** |
| General and administrative | $3448 | $– |
| Sales, marketing and customer service | 24 | – |
| Total share-based compensation expense, net of nil income taxes | $3472 | $– |

---

As share-based compensation expense recognized in the consolidated statements of operations is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. Forfeitures are required to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

**Determining Fair Value**

*Valuation and Amortization Method —*The Group estimates the fair value of service-based grants using the Black-Scholes option-pricing formula. The fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. Service-based options typically have a ten-year life from date of grant and vesting periods of four years.

*Expected Term —*The Group's expected term represents the period that the Group's share-based awards are expected to be outstanding.

*Expected Volatility* —The Group uses average historical volatility of the comparable public companies to calculate the volatility for its granted options.

*Expected Dividend* —The Group has never paid dividends on its ordinary shares and currently does not intend to do so, and accordingly, the dividend yield percentage is zero for all periods.

*Risk-Free Interest Rate —* The Group bases the risk-free interest rate used in the Black-Scholes valuation model upon the implied yield curve currently available on US Treasury zero-coupon issues with a remaining term equal to the expected term used as the assumption in the model.

Assumptions used in the determination of the fair value of share-based payment awards using the Black-Scholes model for stock option grants were as follows:

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** |
|  | **December 31,**<br> **2021** | **December 31,**<br> **2020** |
| Expected term | 3 years |  |
| Risk-free interest rate | 1.52% |  |
| Expected volatility | 45.3% |  |
| Expected dividend yield | 0% |  |

---

**Equity Incentive Plan**

On May 17, 2021, options to purchase 1,529,290 ordinary shares of the Company at an exercise price of $1.92 per share were granted to employees of the Group, which has been retrospectively adjusted to reflect the reverse stock split as disclosed in Note 11(a). The options are subject to a vesting schedule that vests 25% of granted options per year over the next four years. The fair value of the options as of the grant day is $1.72 per share and the purpose for the grant is for compensation and incentive to these employees for their service to the Group.

The following table summarizes the Group's stock option activities:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Shares** | **Weighted-Average Exercise Price Per Share** | **Weighted-Average<br> Remaining Contractual Term** | **Aggregate Intrinsic Value ($000)** |
| Outstanding as of December 31, 2020 | – |  |  | $– |
| Granted | 1529290 | $1.92 |  |  |
| Exercised |  |  |  |  |
| Forfeited/expired | (413215) | $1.92 |  |  |
| Outstanding as of December 31, 2021 | 1116075 | $1.92 | 9.44 | $1607 |
| Vested and exercisable as of December 31, 2021 |  |  |  |  |
| Non-vested as of December 31, 2021 | 1116075 | $1.92 | 9.44 | $1607 |

---

**Other Stock-based Compensation**

On February 28, 2021, options to purchase 1,500,000 fully vested ordinary shares of the Company at an exercise price of $1.92 per share were granted to Mr. Xiaofeng Denton Peng, the chairman of the board of directors of the Group, which has been retrospectively adjusted to reflect the reverse stock split as disclosed in Note 11(a). The option fair value as of the grant day is $1.72 per share and the purpose for the grant is in recognition of his past service for the Group.

There were no changes to the contractual life of any fully vested options during the years ended December 31, 2021 and 2020. As of December 31, 2021, there were $1,705 of unrecognized share-based compensation expenses related to the share options granted. The expenses are expected to be recognized over a weighted-average period of 3.4 years.

&nbsp;&nbsp;&nbsp;&nbsp;**13.** **Income Taxes** 

&nbsp;&nbsp;&nbsp;&nbsp;(Loss) income before provision for income taxes is attributable to the following geographic locations for the years ended December 31:

---

| | | |
|:---|:---|:---|
|  | **2021** | **2020** |
| Cayman | $– | $– |
| Australia | 4710 | 1343 |
| USA | (25907) |  |
| HK | – | 28 |
|  | $(21197) | $1371 |

---

***Cayman Islands***

The Company is incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to income or capital gains tax in the Cayman Islands. Payments of dividends and capital in respect of the Company's shares will not be subject to taxation in the Cayman Islands and no withholding will be required on the payment of a dividend or capital to any holder of the Company's shares, nor will gains derived from the disposal of the Company's shares be subject to Cayman Islands income or corporation tax. The Cayman Islands currently have no income, corporation or capital gains tax and no estate duty, inheritance tax or gift tax.

***Hong Kong***

According to Tax (Amendment) (No. 3) Ordinance 2018 published by Hong Kong government, form April 1, 2018, under the two-tiered profits tax rates regime, the profits tax rate for the first HKD2 million of assessable profits will be lowered to 8.25% (half of the rate specified in Schedule 8 to the Inland Revenue Ordinance (IRO)) for corporations. No provision for Hong Kong tax has been made in our consolidated financial statements, as our Hong Kong subsidiary had not generated any assessable income for the years ended December 31, 2020 and 2021.

Our subsidiary incorporated in Hong Kong were exempted from the Hong Kong income tax on its foreign-derived income and there were no withholding taxes in Hong Kong on the remittance of dividends.

***Australia***

The Company's subsidiary incorporated in Australia was subject to a federal income tax rate of 30% for the years ended December 31, 2020 and 2021, respectively.

***US***

The Company's subsidiary incorporated in United States was subject to a federal income tax rate of 21% for the years ended December 31, 2020 and 2021, respectively.

The provision for income taxes consists of the following for the years ended December 31:

---

| | | |
|:---|:---|:---|
|  | **2021** | **2020** |
| Current tax: |  |  |
| Federal tax | $– | $– |
| State tax | 2 |  |
| Foreign countries | 1567 | 481 |
| Total current tax | 1569 | 481 |
| Deferred tax: |  |  |
| Federal tax | $– | $– |
| State tax |  |  |
| Foreign countries | (142) | (57) |
| Total deferred tax | (142) | (57) |
| Total provision for income taxes | $1427 | $424 |

---

The reconciliation between the actual income tax expense and income tax computed by applying the statutory US Federal income tax rate for the years ended December 31 is as follows:

---

| | | |
|:---|:---|:---|
|  | **2021** | **2020** |
| Provision for income taxes at US Federal statutory rate | $(4451) | $288 |
| Foreign taxes at different rate | 427 | 127 |
| Non-deductible expenses | 8 | 15 |
| Valuation allowance | 5336 |  |
| Stock Based Compensation | 104 |  |
| Others | 3 | (6) |
| Total provision for income taxes | $1427 | $424 |

---

Deferred income taxes reflect the net tax effects of loss carry forwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Group's deferred tax assets and liabilities for federal, state and foreign income taxes are as follows at December 31 are presented below:

---

| | | |
|:---|:---|:---|
|  | **2021** | **2020** |
| Deferred tax assets: |  |  |
| Net operating loss carry forwards | $3615 | $– |
| Accrued compensation | 91 | 142 |
| Allowance for doubtful accounts | 558 | 11 |
| Inventory write-down | 166 |  |
| Stock-based compensation | 645 |  |
| Other reserves and accruals | 115 | 180 |
| Others | 669 | 99 |
| Valuation allowance | (5336) | – |
| Total deferred tax assets | 523 | 432 |
| Deferred tax liabilities: |  |  |
| Fair value adjustment arising from subsidiaries acquisition | (269) | (352) |
| Others | (116) | (82) |
| Total deferred tax liabilities | (385) | (434) |
| Net deferred tax asset/(liabilities) | $138 | $(2) |

---

As of December 31, 2021 and 2020, the Group had no net operating loss carryover and credit carryover from prior years. As of December 31, 2021, the Group had a net operating loss carry forward for federal income tax purposes of approximately $17,212 which can be carried forward indefinitely subject to a limitation in utilization against 80% of annual taxable income. The Group has no foreign net operating loss carry forward.

The Group recognizes deferred tax assets if it is more likely than not that those deferred tax assets will be realized. Management reviews deferred tax assets periodically for recoverability and makes estimates and judgments regarding the expected geographic sources of taxable income in assessing the need for a valuation allowance to reduce deferred tax assets to their estimated realizable value. Realization of the Group's deferred tax assets is dependent upon future earnings, if any, the timing and amount of which are uncertain.

The Group had no unrecognized tax benefits as of December 31, 2021 and 2020, respectively. The Group currently files income tax returns in Australia and US. The Group is currently not the subject of any income tax examinations. The Group's tax returns generally remain open for tax years after 2011.

The Coronavirus Aid, Relief and Economy Security (CARES) Act ("the CARES Act, H.R. 748") was signed into law on 27 March 2020. The CARES Act temporarily eliminates the 80% taxable income limitation (as enacted under the Tax Cuts and Jobs Act of 2017) for NOL deductions for 2018-2020 tax years and reinstated NOL carrybacks for the 2018-2020 tax years. Moreover, the CARES Act also temporarily increases the business interest deduction limitations from 30% to 50% of adjusted taxable income for the 2019 and 2020 taxable year. Lastly, the Tax Act technical correction classifies qualified improvement property as 15-year recovery period, allowing the bonus depreciation deduction to be claimed for such property retroactively as if it was included in the Tax Act at the time of enactment. The Group does not anticipate a material impact on its financial statements as of December 31, 2021 due to the recent enactment.

&nbsp;&nbsp;&nbsp;&nbsp;**14.** **Leases** 

A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. The Group has operating leases for its office facilities. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Group recognizes lease expense for these leases on a straight-line basis over the lease term. The operating lease expenses were $1,487 and $374 for the years ended December 31, 2021 and 2020, respectively.

Maturities of operating lease liabilities as of December 31, 2021 were as follows:

---

| | |
|:---|:---|
| Maturity of Lease Liabilities | Operating Leases |
| 2022 | $612 |
| 2023 | 672 |
| 2024 | 582 |
| 2025 | 599 |
| 2026 | 617 |
| Thereafter | 470 |
| Total lease payments | 3552 |
| Less: imputed interest | (624) |
| Present value of lease payments | $2928 |
| Operating lease liabilities, current | $428 |
| Operating lease liabilities, noncurrent | $2500 |

---

Supplemental information related to operating leases was as follows:

---

| | | |
|:---|:---|:---|
|  | **For the years ended**<br> **December 31,**  | **For the years ended**<br> **December 31,**  |
|  | **2021** | **2020** |
| Cash paid for amounts included in the measurement of lease liabilities | $396 | $320 |
| New operating lease assets obtained in exchange for operating lease liabilities | $2799 | $– |

---

As of December 31, 2021 and 2020, the operating leases had a weighted average remaining lease term of 5.4 years and 1.9 years, respectively, and a weighted average discount rate of 6.16% and 6.16%, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;**15.** **Commitments and Contingencies** 

From time to time, the Group is involved in various legal and regulatory proceedings arising in the normal course of business. As of December 31, 2021 and 2020, the Group was not involved in any legal and regulatory proceedings that would have a material adverse impact, individually or in the aggregate, to the Group's consolidated financial condition, operations or cash flows. The Group had no capital commitments as of December 31, 2021 and 2020.

&nbsp;&nbsp;&nbsp;&nbsp;**16.** **Concentration Risk** 

A substantial percentage of the Group's net revenue comes from sales made to a large number of customers at a small transaction amount to whom sales are typically made on an open account basis. There was no customer of which the revenue accounted for 10% or more of total net revenue for the years ended December 31, 2021 and 2020. As of December 31, 2021 and 2020, there was no customer of which the accounts receivable accounted for 10% or more of total accounts receivable.

The Group depends on certain suppliers to purchase materials. During the years ended December 31, 2021 and 2020, the materials purchases from the top five suppliers accounted for 61% and 59% of the total purchases, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;**17.** **Related Party Transactions** 

The amount due from related parties of $369 and $370 as of December 31, 2021 and 2020, respectively, represented $314 and $314 payment received by the affiliated company on behalf of the Company and $55 and $56 advances to management for conducting business on behalf of the Company, respectively. The amount due to related parties of $2,935 and nil as of December 31, 2021 and 2020, respectively, represented loan from SPI with a maturity date of December 31, 2022, at an interest of 3.25% per annum.

&nbsp;&nbsp;&nbsp;&nbsp;**18.** **Segment information** 

For the year ended December 31, 2021, there are two operating segments: (1) solar products distribution, (2) roofing and solar energy systems installation. The Group's CODM assesses the performance of each segments based on revenue, cost of sales and gross profit (loss). Other than the information provided below, the CODM does not use any other measures by segments.

Summarized information by segments for the years ended December 31, 2021 and 2020 is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the year ended December 31, 2021** | **For the year ended December 31, 2021** | **For the year ended December 31, 2021** |
|  | **Solar products distribution** | **Roofing and solar energy systems installation** | **Total** |
| Revenues from external customers | $124248 | $29028 | $153276 |
| Cost of sales | 112765 | 33131 | 145896 |
| Gross profit (loss) | $11483 | $(4103) | $7380 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **For the year ended December 31, 2020** | **For the year ended December 31, 2020** | **For the year ended December 31, 2020** |
|  | **Solar products distribution** | **Roofing and solar energy systems installation** | **Total** |
| Revenues from external customers | $113505 | $– | $113505 |
| Cost of sales | 104313 | – | 104313 |
| Gross profit (loss) | $9192 | $– | $9192 |

---

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2021** | **2020** |
|  | USD | USD |
| **Segment assets** |  |  |
| Solar products distribution | $35434 | $28970 |
| Roofing and solar energy systems installation <sup>(1)</sup> | 16861 | 15000 |
| Others | 315 | 315 |
| Total segment assets | $52610 | $44285 |

---

<sup>(1)</sup> The Group's ultimate controlling shareholder, SPI, made a capital contribution of $15,000 in December 2020 to the Group's subsidiary SJ US for SJ US's operation of the contemplating acquisition of PDI. As of December 31, 2020, the segment assets represented cash of $14,215 and deposit for PDI purchase (Note 7) of $785.

Total long-lived assets excluding financial instruments, intangible assets, long-term investment and goodwill by country were as follows:

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2021** | **2020** |
|  | USD | USD |
| Australia | $577 | $916 |
| United States | 5953 |  |
| Others | – | – |
| Total long-lived assets | $6530 | $916 |

---

&nbsp;&nbsp;&nbsp;&nbsp;**19.** **Subsequent Events** 

*Purchase commitment made for new business of solar module assembly* 

 

On February 16, 2022, the Group entered into an agreement with Yingkou Jinchen Machinery Co., Ltd. ("the Seller"), whereby, the Group purchased two sets of solar automation manufacturing equipment lines from the Seller with total consideration of $6,940. The Group intends to expand green energy production with a California-based solar module manufacturing facility and start serving the United States market in 2022.

*Extension of bank loan*

On February 7, 2022, the Group entered into a supplementary agreement with East West Bank ("the Lender"), where by, the loan of $5,000 borrowed on February 23, 2021(Note 14) was extended from February 23, 2022 to February 23, 2023.

The Group has evaluated subsequent events through the date of issuance of the consolidated financial statements, there were no other subsequent events occurred that would require recognition or disclosure in the consolidated financial statements.

**SOLARJUICE CO., LTD.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(In thousands, except for share and per share data)**

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2022** | **December 31,**<br>**2021** |
|  | **Unaudited** | |
| ASSETS |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $3241 | $1342 |
| &nbsp;&nbsp;&nbsp;Restricted cash | 1579 | 640 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 16930 | 15494 |
| &nbsp;&nbsp;&nbsp;Contract Asset | 1129 | 1621 |
| &nbsp;&nbsp;&nbsp;Inventories | 19372 | 20553 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 4118 | 4993 |
| &nbsp;&nbsp;&nbsp;Amount due from related parties | 397 | 369 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current assets** | **46766** | **45012** |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 862 | 930 |
| &nbsp;&nbsp;&nbsp;Prepayments, noncurrent | 1755 |  |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 3757 | 3577 |
| &nbsp;&nbsp;&nbsp;Deferred tax assets, net | 103 | 138 |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 3167 | 2953 |
| &nbsp;&nbsp;&nbsp;**Total assets** | $**56410** | $**52610** |
| LIABILITIES AND EQUITY |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $17777 | $18126 |
| &nbsp;&nbsp;&nbsp;Accrued liabilities | 4690 | 3779 |
| &nbsp;&nbsp;&nbsp;Income tax payable | 1551 | 957 |
| &nbsp;&nbsp;&nbsp;Advance from customers | 1510 | 3103 |
| &nbsp;&nbsp;&nbsp;Short-term borrowings | 9074 | 8638 |
| &nbsp;&nbsp;&nbsp;Amount due to related parties | 12021 | 2935 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities, current | 743 | 428 |
| &nbsp;&nbsp;&nbsp;Accrued warranty reserve | 490 | 268 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current liabilities** | **47856** | **38234** |
| &nbsp;&nbsp;&nbsp;Long term borrowings |  | 4508 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities, non-current | 2400 | 2500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | **50256** | **45242** |
| Equity: |  |  |
| &nbsp;&nbsp;&nbsp;Ordinary shares, par $0.00004, 1,250,000,000 shares authorized, 25,000,000 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively\* | 1 | 1 |
| &nbsp;&nbsp;&nbsp;Subscription receivable | (1) | (1) |
| &nbsp;&nbsp;&nbsp;Additional paid in capital | 34694 | 34613 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (911) | (344) |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (31768) | (30990) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity attributable to the shareholders of SolarJuice Co., Ltd. | **2015** | **3279** |
| &nbsp;&nbsp;&nbsp;Non-controlling interests | 4139 | 4089 |
| **Total equity** | **6154** | **7368** |
| **Total liabilities and equity** | $**56410** | $**52610** |

---

 

*\*The shares are presented on a retrospective basis to reflect the Company's reverse stock split (Note 7)*

 

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

**SOLARJUICE CO., LTD.**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

**(In thousands, except for share and per share data)**

---

| | | |
|:---|:---|:---|
|  | **Six months ended June 30, 2022** | **Six months ended June 30, 2021** |
| Sales | $81517 | $75798 |
| Cost of revenue | 77546 | 70435 |
| &nbsp;&nbsp;&nbsp;Gross profit | 3971 | 5363 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | 7000 | 9236 |
| &nbsp;&nbsp;&nbsp;Sales, marketing and customer service | 1617 | 2584 |
| &nbsp;&nbsp;&nbsp;(Reversal of) provision for credit losses | (209) | 319 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 8408 | 12139 |
| Operating Loss | (4437) | (6776) |
| Other income (expense): |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense, net | (373) | (607) |
| &nbsp;&nbsp;&nbsp;Net foreign exchange gain/(loss) | 19 | (777) |
| &nbsp;&nbsp;&nbsp;Others | 4784 | 586 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense), net | 4430 | (798) |
| Loss before income taxes | (7) | (7574) |
| &nbsp;&nbsp;&nbsp;Income tax expense | (579) | (566) |
| Net Loss | (586) | (8140) |
| &nbsp;&nbsp;&nbsp;Less: Net income attributable to non-controlling interests | 192 | 376 |
| Net Loss attributable to shareholder of SolarJuice Co., Ltd. | (778) | (8516) |
| Net Loss per ordinary share\*: |  |  |
| &nbsp;&nbsp;&nbsp;Basic and Diluted | (0.03) | (0.34) |
| Weighted average shares outstanding –basic and diluted\* | 25000000 | 25000000 |

---

*\* The shares are presented on a retrospective basis to reflect the Company's reverse stock split (Note 7)*

 

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

**SOLARJUICE CO., LTD.**

**UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS**

**(In thousands)**

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
|  | **2022** | **2021** |
| Net loss | $(586) | $(8140) |
| Other comprehensive income (loss), net of tax of nil: |  |  |
| Foreign currency translation (loss) /gain | (709) | 226 |
| Total comprehensive loss | (1295) | (7914) |
| Comprehensive income attributable to noncontrolling interests | 50 | 421 |
| Comprehensive (loss) income attributable to shareholder of SolarJuice. Co., Ltd | $(1345) | $(8335) |

---

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

**SOLARJUICE CO., LTD.**

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

**(In thousands, except for share and per share data)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Ordinary Shares** | **Ordinary Shares** | | | | | | | |
|  | **Shares\*** | **Amount** | **Subscription**<br>**Receivable** | **Additional Paid-In**<br>**Capital** | **Accumulated**<br>**Deficit** | **Accumulated Other Comprehensive (Loss)**<br>**Income** | **Equity Attributable to Shareholder of**<br>**SolarJuice** | **Noncontrolling**<br>**Interests** | **Total**<br>**Equity** |
| **Balance at January 1, 2021** | 25000000 | $1 | $(1) | $31141 | $(7709) | $125 | $23557 | $3615 | $27172 |
| Net loss |  |  |  |  | $(8516) |  | $(8516) | $376 | $(8140) |
| Foreign currency translation adjustment |  |  |  |  |  | $181 | $181 | $45 | $226 |
| Share-based compensation | – | – | – | $2613 | – | – | $2613 | – | $2613 |
| **Balance as of June 30, 2021** | 25000000 | $1 | $(1) | $33754 | $(16225) | $306 | $17835 | $4036 | $21871 |
| **Balance at January 1, 2022** | 25000000 | $1 | $(1) | $34613 | $(30990) | $(344) | $3279 | $4089 | $7368 |
| Net loss |  |  |  |  | $(778) |  | $(778) | $192 | $(586) |
| Foreign currency translation adjustment |  |  |  |  |  | $(567) | $(567) | $(142) | $(709) |
| Share-based compensation | – | – | – | $81 | – | – | $81 | – | $81 |
| **Balance as of June 30, 2022** | 25000000 | $1 | $(1) | $34694 | $(31768) | $(911) | $2015 | $4139 | $6154 |

---

*\* The shares are presented on a retrospective basis to reflect the Company's reverse stock split (Note 7)*

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

**SOLARJUICE CO., LTD.**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(In thousands)**

---

| | | |
|:---|:---|:---|
|  | **Six months ended June 30,**<br>**2022** | **Six months ended June 30,**<br>**2021** |
| **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(586) | $(8140) |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile net loss to net cash used in operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and Amortization | 402 | 1448 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Reversal of) provision for credit losses | (209) | 319 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of right-of-use assets | 148 | 341 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrual of warranty reserve | 223 | 105 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 81 | 2613 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in deferred taxes | 35 | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on forgiveness of PPP loan | (4508) |  |
| &nbsp;&nbsp;&nbsp;**Changes in operating assets and liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (1248) | (808) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | 483 | (5850) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | 876 | (2960) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 277 | 6431 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advance from customers | (1593) | 1660 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | 594 | (166) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities and other liabilities | 910 | (420) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | (148) | (309) |
| **Net cash used in operating activities** | (4263) | (5681) |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of PDI assets (Note 4) |  | (8003) |
| &nbsp;&nbsp;&nbsp;Purchases of property and equipment | (2239) | (257) |
| &nbsp;&nbsp;&nbsp;Proceeds from disposal of property, plant and equipment | 26 | – |
| **Net cash used in investing activities** | (2213) | (8260) |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from loan by a related party | 9086 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from line of credit and loans | 82714 | 80173 |
| &nbsp;&nbsp;&nbsp;Repayment of line of credit and loans | (82278) | (78017) |
| **Net cash generated from financing activities** | 9522 | 2156 |
| &nbsp;&nbsp;&nbsp;Effect of exchange rate changes on cash | (208) | 437 |
| &nbsp;&nbsp;&nbsp;Increase (decrease) in cash, cash equivalents and restricted cash | 2838 | (11348) |
| &nbsp;&nbsp;&nbsp;Cash, cash equivalents and restricted cash at beginning of year | 1982 | 15707 |
| &nbsp;&nbsp;&nbsp;Cash, cash equivalents and restricted cash at end of year | 4820 | 4359 |
| **Reconciliation of cash and cash equivalents, to the consolidated balance sheets** |  |  |
| Cash and cash equivalents | 3241 | 2121 |
| Restricted cash | 1579 | 2238 |
| Total cash, cash equivalents, and restricted cash | 4820 | 4359 |
| **Supplemental cash flow information:** |  |  |
| &nbsp;&nbsp;&nbsp;Interest paid | 383 | 234 |
| &nbsp;&nbsp;&nbsp;Income tax paid |  | 58 |
| **Non-cash activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Right of use assets obtained in exchange for operating lease obligations | 270 | 2794 |

---

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

**SOLARJUICE CO., LTD.**

**NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in US$ thousands, except for share and per share data)**

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Description of Business and Organization** 

**Description of Business**

SolarJuice Co., Ltd. ("SolarJuice" or the "Company") and its subsidiaries (collectively the "Group") is a global provider of photovoltaic (PV) and other smart energy solutions for residential and small commercial customers. The Group's business mainly includes wholesale distribution of Solar PV modules, inverters, and other components, as well as energy storage and other related products in Australia. The Group started to engage in roofing and solar energy systems installation in the United States in 2021 and is also starting to assemble solar modules for sale in the United States in 2022.

**Organization**

The Company was incorporated in Cayman Islands in February 2017 by SPI Energy Co., Ltd. ("SPI") to hold 80% of Solar Juice Pty Ltd ("SJ Australia"). SJ Australia was incorporated in September 2009 to be a wholesaler of solar components in Australia. In May 2015, SPI China (HK) Ltd., a then related company to the Group, acquired 80% ownership of SJ Australia. In December 2018, SPI disposed of SPI China (HK) Ltd. and transferred 80% ownership of SJ Australia to the Company. SolarJuice (HK) Ltd ("SJ HK") was incorporated in January 2005. SolarJuice American Inc. ("SJ US") was incorporated in July 2019 and started to engage in roofing and solar energy systems installation business in the United States from 2021.

**Impact Related to COVID-19 and Global Economic Factors**

The effect of the novel coronavirus ("COVID-19") has significantly impacted the United States and the global economy. COVID-19 and the measures taken by many countries in response have adversely affected and could in the future materially adversely impact the Group's business, results of operations, and financial condition. The ongoing worldwide economic situation, including the COVID-19 outbreak, economic sanctions, the outbreak of war in Ukraine, future weakness in the credit markets, and significant liquidity problems for the financial services industry may impact our financial condition in a number of ways. For example, our current or potential customers, may delay or decrease spending with us, or may not pay us, or may delay paying us for previously purchased products and services. Also, we may have difficulties in securing additional financing.

Public health efforts to mitigate the impact of COVID-19 have included government actions such as travel restrictions, limitations on public gatherings, shelter in place orders, and mandatory closures. These actions are being lifted to varying degrees. However, the associated impact of COVID-19 closures and mobility restrictions on the economy are expected to continue to unfold. Supply chain disruptions, inflation, work force deficiencies, impaired construction activities, high energy prices, and supply-demand imbalances are expected to continue in 2022. The Group closely monitors customer accounts and has not experienced significant delays in the collection of accounts receivable.

The ultimate impact of COVID-19 and the outbreak of war in Ukraine on our business, results of operations, financial condition, and cash flows is dependent on future developments, including the duration of COVID-19 and the crisis in Ukraine, government responses and the related length of this impact on the economy, which are uncertain and cannot be predicted at this time.

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Summary of Significant Accounting Policies** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Basis of Presentation** 

The unaudited condensed consolidated financial statements of the Group are prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The unaudited condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's consolidated financial statements as of December 31, 2021 and 2020.

In the opinion of the management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments, which are necessary for a fair presentation of financial results for the interim periods presented. The Company believes that the disclosures are adequate to make the information presented not misleading. The accompanying unaudited condensed consolidated financial statements have been prepared using the same accounting policies as used in the preparation of the Group's consolidated financial statements for the year ended December 31, 2021 and December 31, 2020. The results of operations for the six months ended June 30, 2022 and 2021 are not necessarily indicative of the results for the full years or any future periods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Revenue Recognition** 

Under ASC 606, an entity recognizes revenue when our customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements or elements of an arrangement within the scope of ASC 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price, including variable consideration, if any; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation.

The Group's accounting practices under ASC Topic 606 are as follows:

*<u>Sale of PV components</u>*

 

Revenue on sale of PV components includes one performance obligation of delivering the products and the revenue is recognized at a point in time following the transfer of control of such products to the customer, which typically occurs upon shipment or acceptance of the customer depending on the terms of the underlying contracts.

 

*<u>Revenue from roofing and solar energy systems installation</u>*

 

Revenue from roofing and solar energy system installation is recognized over time.

For revenue from solar energy system installation, the Company's only performance obligation is to design and install a customized solar energy system, reinstall the customer's existing solar energy system. For revenue from roofing, the Company's only performance obligation is to design and build the roof system per customer specifications.

All costs to obtain and fulfill contracts associated with system sales and other product sales are expensed to cost of revenue when the corresponding revenue is recognized.

The Company recognizes revenue using a cost-based input method that recognizes revenue and gross profit as work is performed based on the relationship between actual costs incurred compared to the total estimated cost of the contract, to determine the Company's progress towards contract completion and to calculate the corresponding amount of revenue and gross profit to recognize. The total estimated cost of the contract consists of material cost and labor cost, and is developed based on the size and specific situation of different jobs. Changes in estimates are mainly due to: (i) unforeseen field conditions that impacts the estimated workload, and (ii) change of the unit price of material or labor cost.

If the estimated total costs on any contract are greater than the net contract revenues, we recognize the entire estimated loss in the period the loss becomes known.

*<u>Other revenues</u>*

Other revenue primarily represents freight revenue for product shipments and the revenue from sales of self-assembled solar panels. Other revenues are recognized at a point in time following the transfer of control of such service or products to the customer, which typically occurs upon shipment of product or acceptance of the customer depending on the terms of the underlying contracts.

*<u>Disaggregation of revenues</u>*

The Group's revenues are primarily from Australia and the United States. The Group disaggregates its revenue by its three primary categories: sales of PV components, revenue from roofing and solar energy systems installation and other. The following is a summary of the Group's disaggregated revenues for six months ended June 30, 2022 and 2021:

---

| | | | | |
|:---|:---|:---|:---|:---|
| ***<u>By revenue stream</u>*** | **For the six months ended June 30, 2022** | **For the six months ended June 30, 2022** | **For the six months ended June 30, 2022** | **For the six months ended June 30, 2022** |
|  | **Sales of PV components** | **Revenue from roofing and solar energy systems installation** | **Other** | **Total** |
| Australia | $59554 | $– | $442 | $59996 |
| United States | 1304 | 20153 | 64 | 21521 |
| Total | $60858 | $20153 | $506 | $81517 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| ***<u>By revenue stream</u>*** | **For the six months ended June 30, 2021** | **For the six months ended June 30, 2021** | **For the six months ended June 30, 2021** | **For the six months ended June 30, 2021** |
|  | **Sales of PV components** | **Revenue from roofing and solar energy systems installation** | **Other** | **Total** |
| Australia | $60803 | $– | $632 | $61435 |
| United States | – | 14363 | – | 14363 |
| Total | $60803 | $14363 | $632 | $75798 |

---

*<u>Contract balance</u>*

The following table provides information about contract assets and contract liabilities from contracts with customers:

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br> **2022** | **December 31,**<br> **2021** |
| Contract assets | $1129 | $1621 |
| Advance from customers | $1510 | $3103 |

---

The contract assets primarily relate to the Group's rights to consideration for work completed but not billed at the reporting date, primarily for the revenue from roofing and solar energy systems installation in the United States. The contract assets are transferred to receivables when the rights become unconditional after billing is issued.

Advance from customers, which represents a contract liability, primarily is unrecognized revenue received from customers. Advance from customers is recognized as (or when) the Group performs under the contract. During the six months ended June 30, 2022 and 2021, the Group recognized $3,103 and $652 as revenue that was included in the balance of advance from customers at January 1, 2022 and 2021, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Going concern** 

The Group's condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of the business. The Group had incurred a net loss of $586 during the six months ended June 30, 2022, and the cash flow used in operating activities was $4,263. As of June 30, 2022, the Group had accumulated deficit of $31,768 and working capital deficit of $1,090. These factors raised substantial doubt as to the Group's ability to continue as a going concern. The group's management intends to finance through initial public offering and related party loans to meet the Group's obligations and sustain its operations and development plan over the next 12 months from the issuance date of the condensed consolidated financial statements. While the Group believes that it will be successful in obtaining the necessary financing to fund its operations, there is no assurance to that effect. The Group's condensed consolidated financial statements do not include any adjustments that may result from the outcome of these uncertainties.

&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Accounts Receivable, net** 

The accounts receivable consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30, 2022**<br>**(unaudited)** | **December 31, 2021** |
| Accounts receivable | $19333 | $18112 |
| Less: Allowance for doubtful accounts | $(2403) | $(2618) |
| Accounts receivable, net | $16930 | $15494 |

---

&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Inventories** 

Inventories consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30, 2022**<br>**(unaudited)** | **December 31, 2021** |
| Raw material | $1687 | $1774 |
| Work in process | 328 |  |
| Finished goods | 14791 | 15933 |
| Goods in transit | 2566 | 2846 |
| Total inventories | $19372 | $20553 |

---

&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Prepaid Expenses and Other Current Assets** 

Prepaid expenses and other current assets consist of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30, 2022**<br>**(unaudited)** | **December 31, 2021** |
| Deposits | $2018 | $1877 |
| Prepaid purchase costs | 1731 | 2838 |
| Others | 369 | 278 |
| Total prepaid and other current assets, net | $4118 | $4993 |

---

&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Ordinary shares and recapitalization** 

On February 16, 2017, the Company issued one ordinary share with par value of $1 per share to the Company's only shareholder, SPI Investments Holding Limited, which is a subsidiary of SPI.

On May 14, 2021, the Company amended its Articles of Association and the Company's share capital was amended to $50, divided into 5,000,000,000 ordinary shares at a par value of $0.00001 each. On the same date, the Company issued 99,900,000 ordinary shares of a par of $0.00001 to its shareholder, SPI Investments Holding Limited, at par value. This nominal share issuance is considered as a recapitalization in substance.

On July 6, 2022, the Company declared a one for four reverse stock split. As a result of the amendment of par value of ordinary

shares, the recapitalization and the reverse stock split, all share and per share amounts in the consolidated financial statements have been retrospectively adjusted.

&nbsp;&nbsp;&nbsp;&nbsp;**8.** **Share-based Compensation** 

During the six months ended June 30, 2022 and 2021, the share-based compensation expense was 81 and 2,613, respectively.

During the six months ended June 30, 2022 and 2021, nil and a total of 2,650,000 options were granted to a group of managements and employees of the Company under Equity Incentive Plan, which are subject to an annual vesting schedule that vests 25% of granted options over the next four years. The exercise price was $1.92 per share.

There were no changes to the contractual life of any fully vested options during the six months ended June 30, 2022 and 2021. As of June 30, 2022, unrecognized share-based compensation expenses related to the share options granted were $1,256. The expenses are expected to be recognized over a weighted-average period of 1.73 years.

&nbsp;&nbsp;&nbsp;&nbsp;**9.** **Related Party Transactions** 

The amount due from related parties of $397 and $369 as of June 30, 2022 and December 31, 2021, respectively, represented $314 and $314 payment received by the affiliated company on behalf of the Company and $83 and $55 advances to management for conducting business on behalf of the Company, respectively. The amount due to related parties of $12,021 and $2,935 as of June 30, 2022 and as of December 31, 2021, respectively, represented short-term working capital loans, which are $9,086 loan from SPI with a maturity date of December 31, 2022 with no interest and $2,935 loan from SPI with an extended maturity date of December 31, 2022, at an interest of 3.25% per annum.

In January 2022, the Company entered into a sublease agreement with an affiliated company, SPI Solar, for a 125,190 square foot manufacturing facility. The lease period is six months. During the six months ended June 30, 2022, the Company recognized $271 rent expenses for the sublease arrangement with SPI Solar and paid $271 rent to SPI Solar. There was no rent due to related party as of June 30, 2022.

Subsequently in July 2022, the Company entered into a new sublease agreement with SPI Solar for a 139,100 square foot manufacturing site for a lease period of sixty-seven months. The Company recognized $3,480 right of use assets and $3,065 lease liability, respectively, for the sublease contract with SPI Solar in July 2022. In addition, in August 2022, the Company entered into (1) an amendment to the sublease contract with SPI Solar to extend the lease term for the 139,100 square foot manufacturing facility for an additional 3 years where the Company does not consider the amendment as a separate lease contract and remeasure the lease liability on the modification date to reflect the change in the lease term. The Company recognized the adjustment to increase the lease liability and right of use assets by $1,940 and $1,940, respectively; and (2) a new sublease with SPI Solar to sublease an additional 56,000 square feet of space adjacent to the 139,100 facility where the Company accounts for the lease modification as a separate and new lease and will recognize a right of use asset of $2,276 and a lease liability of $2,276 as of February 2023, the lease commencement date.

&nbsp;&nbsp;&nbsp;&nbsp;**10.** **Short-term Borrowings and Long-term Borrowings** 

---

| | | |
|:---|:---|:---|
|  | **June 30, 2022**<br>**(unaudited)** | **December 31, 2021** |
| Debtor finance | $4074 | $3638 |
| Short-term bank borrowings | 5000 | 5000 |
| Total Short-term borrowings | 9074 | 8638 |
| Long-term borrowings | – | 4508 |
| Total borrowings | $9074 | $13146 |

---

PPP Loan

On May 19, 2021, the Group was granted a second PPP loan in the amount of $4,508 from the lender. On April 25, 2022, the Group received approval for the formal forgiveness of the PPP loan, and recognized a gain from forgiveness of PPP loan of $4,508 in other income during the six months ended June 30, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;**11.** **Commitments and Contingencies** 

From time to time, the Group is involved in various legal and regulatory proceedings arising in the normal course of business. As of June 30, 2022, the Group was not involved in any legal and regulatory proceedings that would have a material adverse impact, individually or in the aggregate, to the Group's consolidated financial condition, operations or cash flows.

The Group had approximately $6,078 capital commitments as of June 30, 2022. These capital commitments were solely related to contracts signed with vendors to purchase automation production line equipment.

&nbsp;&nbsp;&nbsp;&nbsp;**12.** **Segment information** 

For the six months ended June 30, 2022 and 2021, there are three operating segments: (1) solar products distribution, (2) roofing and solar energy systems installation and (3) others. The Group's CODM assesses the performance of each segments based on revenue, cost of sales and gross profit (loss). Other than the information provided below, the CODM does not use any other measures by segments.

Summarized information by segments for the six months ended June 30, 2022 and 2021 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the six months ended June 30, 2022** | **For the six months ended June 30, 2022** | **For the six months ended June 30, 2022** | **For the six months ended June 30, 2022** |
|  | **Solar products distribution** | **Roofing and solar energy systems installation** | **Others** | **Total** |
| Revenues from external customers | $59996 | $21457 | $64 | $81517 |
| Cost of sales | 56486 | 20996 | 64 | 77546 |
| Gross profit (loss) | $3510 | $461 | $– | $3971 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the six months ended June 30, 2021** | **For the six months ended June 30, 2021** | **For the six months ended June 30, 2021** | **For the six months ended June 30, 2021** |
|  | **Solar products distribution** | **Roofing and solar energy systems installation** | **Others** | **Total** |
| Revenues from external customers | $61435 | $14363 | $– | $75798 |
| Cost of sales | 54129 | 16306 | – | 70435 |
| Gross profit (loss) | $7306 | $(1943) | $– | $5363 |

---

---

| | | |
|:---|:---|:---|
|  | **As of June 30, 2022**<br> **(Unaudited)** | **As of December 31, 2021** |
|  | USD | USD |
| **Segment assets** |  |  |
| Solar products distribution | $34093 | $35434 |
| Roofing and solar energy systems installation | 17836 | 16861 |
| Others | 4481 | 315 |
| Total segment assets | $56410 | $52610 |

---

Total long-lived assets excluding financial instruments and intangible assets by country were as follows:

---

| | | |
|:---|:---|:---|
|  | **As of June 30, 2022**<br> **(Unaudited)** | **As of December 31, 2021** |
|  | USD | USD |
| Australia | $744 | $577 |
| United States | 7935 | 5953 |
| Total long-lived assets | $8679 | $6530 |

---

&nbsp;&nbsp;&nbsp;&nbsp;**14.** **Subsequent Events** 

*<u>Temporary termination of roofing and installation business in certain areas</u>*

In July 2022, the Group made a decision that its SJ America subsidiary would pause its roofing and solar energy system installation business in the states of Florida, Texas, Nevada and Colorado, due to insufficient business volume and profitability in those four states.

The Group has evaluated subsequent events through September 16, 2022, the date of issuance of the unaudited condensed consolidated financial statements, there were no other subsequent events occurred that would require recognition or disclosure in the consolidated financial statements except for the leases with a related party as disclosed in note 9 to the condensed consolidated financial statements.

**PART II**

**INFORMATION NOT REQUIRED IN PROSPECTUS**

**Item 6.** ***Indemnification of Directors and Officers***

Cayman Islands law does not limit the extent to which a company's articles of association may provide for indemnification of officers and directors, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against civil fraud or the consequences of committing a crime. Our Memorandum and Articles of Association provide for indemnification of officers and directors for losses, damages, costs and expenses incurred in their capacities as such, except through their own actual fraud or willful default.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling the Registrant pursuant to the foregoing provisions, the Registrant has been informed that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

**Item 7.** ***Recent Sales of Unregistered Securities***

Set forth below is information regarding share capital issued by us during the last three years. None of the below described transactions involved any underwriters, underwriting discounts or commissions, or any public offering.

On February 16, 2017, 1 ordinary share, par value $1.00 per ordinary share, of our company was issued to SPI Investments Holding Limited.

On February 28, 2021, an option to purchase 6,000,000 fully vested ordinary shares at an exercise price of $0.48 per share was granted to LDK New Energy Holding Limited, an entity wholly owned by Mr. Peng's wife. Based on the one (1) share for four (4) share reverse stock split that occurred on July 6, 2022, such options have been reduced to 1,500,000 and the exercise price has been increased to $1.92.

On February 28, 2021, our authorized share capital was altered from $50,000 divided into 4,500,000,000 ordinary shares, par value $0.00001 per share and 500,000,000 Preferred Shares, par value $0.00001 per share, to 5,000,000,000 ordinary shares of par value $0.00001 per share. In connection with the alteration of share capital, we reclassified our 50,000,000 preferred shares issued as ordinary shares.

On May 14, 2021, our share capital $50,000 was divided into 4,500,000,000 ordinary shares, par value $0.00001 per share and 500,000,000 Preferred Shares, par value $0.00001 per share.

On May 14, 2021, pursuant to a subscription agreement by and between the Company and SPI Investments Holding Limited, SPI Investments Holding Limited subscribed for 99,900,000 ordinary shares, par value $0.00001 from us for a purchase price equal to the aggregate par value of the shares.

As a result of the subscription and the share capital division, 100,000,000 ordinary shares of our company were issued to SPI Investments Holding Limited. Our issued and outstanding ordinary shares were retrospectively adjusted to reflect such share capital division and the subscription from the first period presented, which were 100,000,000 shares with a par value of $0.00001 per share.

On May 17, 2021, options to purchase approximately 4,600,000 shares, subject to a four-year vesting schedule, was granted to approximately 80 employees as part of our employee stock purchase plan. Going forward we plan to continue to grant share options to our employees so that the majority of them will become a shareholder of the Company.

On June 7, 2021, we reclassified 500,000,000 preferred shares, par value $0.00001 per share, to 500,000,000 ordinary shares, par value $0.00001 per share. The authorized share capital of the Company was changed from US$50,000 divided into 4,500,000,000 ordinary shares of par value US$0.00001 per share and 500,000,000 preferred shares of par value US$0.00001 per share, to 5,000,000,000 ordinary shares of par value US$0.00001 each.

On July 6, 2022, each issued and unissued ordinary share of par value US$0.00001 per share was consolidated into 1 ordinary share of US$0.00004 each pursuant to a one (1) share for four (4) shares reverse stock split. As a result of the reverse stock split, the authorized share capital of the Company was changed from US$50,000 divided into 5,000,000,000 ordinary shares of par value US$0.00001 each, to US$50,000 divided into 1,250,000,000 ordinary shares of par value US$0.00004 each.

We believe that the offers, sales and issuance of the securities described in the preceding paragraph were exempt from registration either (a) under Section 4(a)(2) of the Securities Act and the rules and regulations promulgated thereunder, in that the transactions were between an issuer and sophisticated investors or members of its senior executive management and did not involve any public offering within the meaning of Section 4(a)(2), (b) under Regulation S promulgated under the Securities Act in that offers, sales and issuance were not made to persons in the United States and no directed selling efforts were made in the United States, or (c) under Rule 701 promulgated under the Securities Act in that the transactions were underwritten compensatory benefit plans or written compensatory contracts.

**Item 8.** ***Exhibits and Financial Statement Schedules***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Exhibits

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit<br> Number** | **Description of Document** |
| 1.1 | [Form of Underwriting Agreement](solarjuice_ex0101.htm) |
| 3.1+ | [Memorandum and Articles of Association of the Registrant, as currently in effect](http://www.sec.gov/Archives/edgar/data/1866518/000168316822006471/solar_ex0301.htm) |
| 3.2+ | [Form of Amended and Restated Memorandum and Articles of Association of the Registrant, to be effective upon the effectiveness of this offering](http://www.sec.gov/Archives/edgar/data/1866518/000168316822006471/solar_ex0302.htm) |
| 4.1+ | [Registrant's Specimen Certificate for Ordinary Shares](http://www.sec.gov/Archives/edgar/data/1866518/000168316822006908/solar_ex0401.htm) |
| 4.2 | [Form of Representative's Warrant](solarjuice_ex0402.htm) |
| 5.1+ | [Opinion of Carey Olsen Hong Kong LLP regarding the validity of the ordinary shares being registered](http://www.sec.gov/Archives/edgar/data/1866518/000168316822006471/solar_ex0501.htm) |
| 10.1+ | [Form of Independent Director Agreement between the Registrant and each of its directors](http://www.sec.gov/Archives/edgar/data/1866518/000168316822006908/solar_ex1001.htm) |
| 10.2+ | [Asset Purchase and Sale Agreement, dated February 5, 2021, between Petersen-Dean, Inc. and the other Debtors named therein and SolarJuice American, Inc.](http://www.sec.gov/Archives/edgar/data/1866518/000168316822006471/solar_ex1002.htm) |
| 10.3+ | [Amended and Restated Invoice Purchase Agreement, dated as of February 24, 2021, between LS DE LLC, LSQ Funding Group L.C. and SolarJuice American Inc.](http://www.sec.gov/Archives/edgar/data/1866518/000168316822006471/solar_ex1003.htm) |
| 10.4+ | [Lease Agreement, dated February 13, 2019, between Petersen-Dean, Inc. and Blue-Water Dupont, LLC.](http://www.sec.gov/Archives/edgar/data/1866518/000168316822006471/solar_ex1004.htm) |
| 10.5+ | [Lease Agreement, dated March 1, 2021, between SolarJuice American, Inc. and Cranbrook Realty Investment Fund, L.P.](http://www.sec.gov/Archives/edgar/data/1866518/000168316822006471/solar_ex1005.htm) |
| 10.6+ | [Lease Agreement, dated March 1, 2019, between Red Rose, Inc. dba PetersenDean Roofing Systems and 5050 Timbercreek, LLC.](http://www.sec.gov/Archives/edgar/data/1866518/000168316822006471/solar_ex1006.htm) |
| 10.7+ | [Lease Agreement, dated August 1, 2018, between Solar Juice Pty Ltd and Carvet Pty Ltd.](http://www.sec.gov/Archives/edgar/data/1866518/000168316822006471/solar_ex1007.htm) |
| 10.8+ | [Lease Agreement, dated August 1, 2018, between Solar Juice Pty Ltd and Carvet Pty Ltd.](http://www.sec.gov/Archives/edgar/data/1866518/000168316822006471/solar_ex1008.htm) |
| 10.9+ | [Sublease Agreement, dated October 13, 2022, between SPI Solar, Inc. and Solar4America Technology, Inc. for 125,190 square feet of space at Building 783, 4741 Urbani Avenue, McClellan, California 95652.](http://www.sec.gov/Archives/edgar/data/1866518/000168316822006908/solar_ex1009.htm) |
| 10.10+ | [Sublease Agreement, dated October 13, 2022, between SPI Solar, Inc. and Solar4America Technology, Inc. for 139,100 square feet of space at Building 783, 4741 Urbani Avenue, McClellan, California 95652.](http://www.sec.gov/Archives/edgar/data/1866518/000168316822006908/solar_ex1010.htm) |
| 10.11+ | [Sublease Agreement, dated October 13, 2022, between SPI Solar, Inc. and Solar4America Technology, Inc. for 56,000 square feet of space at Building 783, 4741 Urbani Avenue, McClellan, California 95652.](http://www.sec.gov/Archives/edgar/data/1866518/000168316822006908/solar_ex1011.htm) |

---

---

| | |
|:---|:---|
| 14+ | [Code of Business Conduct and Ethics](http://www.sec.gov/Archives/edgar/data/1866518/000168316822006908/solar_ex1400.htm) |
| 21.1+ | [List of Subsidiaries of the Registrant](http://www.sec.gov/Archives/edgar/data/1866518/000168316822006908/solar_ex2101.htm) |
| 23.1 | [Consent of Marcum Asia CPAs LLP, Independent Registered Public Accounting Firm](solarjuice_ex2301.htm) |
| 23.2+ | [Consent of Carey Olsen Hong Kong LLP](http://www.sec.gov/Archives/edgar/data/1866518/000168316822006471/solar_ex0501.htm) (included in Exhibit 5.1) |
| 24.1+ | Powers of Attorney (included on signature page) |
| 99.1+ | [Audit Committee Charter](http://www.sec.gov/Archives/edgar/data/1866518/000168316822006908/solar_ex9901.htm) |
| 99.2 + | [Compensation Committee Charter](http://www.sec.gov/Archives/edgar/data/1866518/000168316822006908/solar_ex9902.htm) |
| 99.3 + | [Corporate Governance and Nominating Committee Charter](http://www.sec.gov/Archives/edgar/data/1866518/000168316822006908/solar_ex9903.htm) |
| 99.4 | [Consent of Ken He, as independent director nominee](solarjuice_ex9904.htm) |
| 99.5 | [Consent of Dr. Philip Comberg, as independent director nominee](solarjuice_ex9905.htm) |
| 99.6 | [Consent of Yun Fei, as independent director nominee](solarjuice_ex9906.htm) |
| 107 | [Filing Fee Table](solarjuice_ex107.htm) |

---

_________________

\* To be filed by amendment.

+ Previously filed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Financial Statement Schedules

All schedules have been omitted since they are not required or are not applicable or the required information is shown in the financial statements or related notes.

**Item 9. *Undertakings***

The registrant hereby undertakes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) for purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) for the purpose of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) to file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to include any prospectus required by Section 10(a)(3) of the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20 percent change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.

Provided, however, that paragraphs (3)(i) and (3)(ii) of this section do not apply if the registration statement is on Form S-3, Form S-8 or Form F-3, and the information required to be included in a post-effective amendment by those paragraphs is contained in periodic reports filed with or furnished to the Commission by the Registrant pursuant to Section 13 or Section 15(d) of the Exchange Act that are incorporated by reference in the registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) to remove from registration by means of a post-effective amendment any of the securities being registered that remain unsold at the termination of the offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) to file a post-effective amendment to the registration statement to include any financial statements required by Item 8.A. of Form 20-F at the start of any delayed offering or throughout a continuous offering. Financial statements and information otherwise required by Section 10(a)(3) of the Act need not be furnished, provided that the registrant includes in the prospectus, by means of a post-effective amendment, financial statements required pursuant to this paragraph (a)(4) and other information necessary to ensure that all other information in the prospectus is at least as current as the date of those financial statements. Notwithstanding the foregoing, with respect to registration statements on Form F-3, a post-effective amendment need not be filed to include financial statements and information required by Section 10(a)(3) of the Act or Rule 3-19 of this chapter if such financial statements and information are contained in periodic reports filed with or furnished to the Commission by the registrant pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the Form F-3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) for purposes of determining any liability under the Securities Act, each filing of the registrant's annual report pursuant to Section 13(a) or Section 15(d) of the Exchange Act (and, where applicable, each filing of an employee benefit plan's pursuant to Section 15(d) of the Exchange Act) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) for the purposes of determining liability to any purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If the registrant is subject to Rule 430C, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) for the purpose of determining liability of the registrant under the Securities Act to any purchaser in the initial distribution of the securities: The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form F-1 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized in McClellan, California on January 19, 2023.

---

| | |
|:---|:---|
| **SOLARJUICE CO., LTD.** | **SOLARJUICE CO., LTD.** |
| By: | /s/ Hoong Khoeng Cheong |
| Name: | Hoong Khoeng Cheong |
| Title: | Chief Executive Officer |
| By: | /s/ Randolph Conone |
| Name: | Randolph Conone |
| Title: | Chief Financial Officer |

---

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated:

---

| | | |
|:---|:---|:---|
| Dated: January 19, 2023 | By: | /s/ Hoong Khoeng Cheong |
|  | Name: | Hoong Khoeng Cheong |
|  | Title: | Chief Executive Officer and (Principal Executive Officer) |
| Dated: January 19, 2023 | By: | /s/ Randolph Conone |
|  | Name: | Randolph Conone |
|  | Title: | Chief Financial Officer (Principal Financial and Accounting Officer) |
| Dated: January 19, 2023 | By: | /s/ Xiaofeng Peng |
|  | Name: | Xiaofeng Peng |
|  | Title: | Director |

---

**SIGNATURE OF AUTHORIZED REPRESENTATIVE IN THE UNITED STATES**

Pursuant to the Securities Act of 1933, as amended, the undersigned, the duly authorized representative in the United States of SolarJuice Co., Ltd. has signed this registration statement or amendment thereto in New York, New York, United States of America on January 19, 2023.

---

| |
|:---|
| Authorized United States Representative |
| /s/ Randolph Conone |
| Randolph Conone |

---

## Exhibit 1.1

**Exhibit 1.1**

**SOLARJUICE CO., LTD.**

UNDERWRITING AGREEMENT

[ ], 2023

Maxim Group LLC

300 Park Avenue, 16<sup>th</sup> Floor

New York, New York 10022

*As Representative of the Underwriters*

*named on <u>Schedule A</u> hereto*

Ladies and Gentlemen:

SolarJuice Co., Ltd., a Cayman Islands exempted company with limited liability (the "<u>Company</u>"), proposes, subject to the terms and conditions stated herein, to issue and sell an aggregate of [ ] of the Company's ordinary shares, US$0.00004 par value per share (the "<u>Ordinary Shares</u>"), to the several underwriters (such underwriters, for whom Maxim Group LLC ("<u>Maxim</u>" or the "<u>Representative</u>") is acting as representative, the "<u>Underwriters</u>" and each an "<u>Underwriter</u>"). Such Ordinary Shares are hereinafter called the "<u>Firm Shares</u>" or the "<u>Firm Securities</u>." The Company has also agreed to grant to the Representative on behalf of the Underwriters an option (the "<u>Option</u>") to purchase up to an additional [ ] Ordinary Shares (the "<u>Option Shares</u>" or "<u>Option Securities</u>", and together with the Firm Shares, the "<u>Offered Securities</u>") on the terms set forth in Section 1(b) hereof and the offering of such Offered Securities is hereinafter called the "<u>Offering</u>". The Offered Securities and the Underwriters' Securities are herein collectively called the "<u>Securities</u>."

The Company confirms as follows its agreement with each of the Underwriters:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Agreement to Sell and Purchase</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Purchase of Firm Securities.* On the basis of the representations, warranties and agreements of the Company contained herein and subject to all the terms and conditions of this Agreement, the Company agrees to sell to the Underwriters, severally and not jointly, and the Underwriters, severally and not jointly, agree to purchase from the Company, the Firm Shares, at a purchase price (the "<u>Purchase Price</u>") (prior to discount and commissions) of $[ ] per Share (or $[ ] (net of discount and commissions)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Purchase of Option Shares.* Subject to all the terms and conditions of this Agreement, the Company grants to the Representative on behalf of the Underwriters the Option to purchase, severally and not jointly, all or less than all of the Option Shares. The purchase price (net of discount and commissions) to be paid for each Option Share will be the same Purchase Price (net of discount and commissions) allocated to each Firm Share. The Option may be exercised in whole or in part at any time on or before the 45th day after the date of this Agreement, upon written notice (the "<u>Option Notice</u>") by the Representative to the Company no later than 12:00 noon, New York City time, at least one and no more than five business days before the date specified for closing in the Option Notice (the "<u>Option Closing Date</u>") setting forth the aggregate number of Ordinary Shares to be purchased and the time and date for such purchase. Upon exercise of the Option, the Company will become obligated to convey to the Underwriters, and, subject to the terms and conditions set forth herein, the Underwriters will become obligated to purchase, the number of Ordinary Shares specified in the Option Notice. If any Option Shares are to be purchased, each Underwriter agrees, severally and not jointly, to purchase the number of Option Shares that bears the same proportion to the number of Firm Shares to be purchased by it as set forth on <u>Schedule A</u> opposite such Underwriter's name as the total number of Option Shares to be purchased bears to the total number of Firm Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Underwriters' Warrants*. The Company hereby agrees to issue to the Underwriters (and/or their respective designees) on the Closing Date, Warrants to purchase an aggregate of five percent (5%) of the number of Ordinary Shares issued in the Offering (the "<u>Underwriters' Warrants</u>"). The Underwriters' Warrants shall be exercisable, in whole or in part, commencing 181 days after the Effective Date and expiring on the five-year anniversary of the date on which the Underwriters' Warrants first become exercisable, at an initial exercise price of $[ ] per share, which is equal to one hundred and ten percent (110%) of the initial public offering price of the Firm Units issued at such closing. The Underwriters' Warrants and the Ordinary Shares issuable upon exercise of the Underwriters' Warrants are hereinafter referred to collectively as the "<u>Underwriters' Securities</u>."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Delivery and Payment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Closing.* Delivery of the Firm Securities shall be made to the Representative through the facilities of the Depository Trust Company ("<u>DTC</u>") for the respective accounts of the Underwriters against payment of the Purchase Price by wire transfer of immediately available funds to the order of the Company. Such payment shall be made at 10:00 a.m., New York City time, on the second business day (the third business day, should the Offering be priced after 4:00 p.m., New York City Time) after the date of this Agreement or at such time on such other date, not later than ten business days after such date, as may be agreed upon by the Company and the Representative (such date is hereinafter referred to as the "<u>Closing Date</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Option Closing.* To the extent the Option is exercised, delivery of the Option Securities against payment by the Underwriters (in the manner and at the location specified above) shall take place at the time and date (which may be the Closing Date, but not earlier than the Closing Date) specified in the Option Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Electronic Transfer.* Electronic transfer of the Offered Securities shall be made at the time of purchase in such names and in such denominations as the Representative shall specify.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Tax Stamps.* The cost of original issue tax stamps, if any, in connection with the issuance and delivery of the Securities by the Company to the Underwriters shall be borne by the Company. The Company shall pay and hold each Underwriter and any subsequent holder of the Securities harmless from any and all liabilities with respect to or resulting from any failure or delay in paying United States federal and state and foreign stamp and other transfer taxes, if any, which may be payable or determined to be payable in connection with the original issuance, sale and delivery to such Underwriter of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Representations and Warranties of the Company</u>. The Company represents and warrants to, and covenants with, each of the Underwriters as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Compliance with Registration Requirements.* A registration statement on Form F-1 (Registration No. 333-267486) relating to the Offered Securities, including a preliminary prospectus and such amendments to such registration statement as may have been required prior to the date of this Agreement, has been prepared by the Company under the provisions of the Securities Act of 1933, as amended (the "<u>Act</u>"), and the rules and regulations (collectively referred to as the "<u>Rules and Regulations</u>") of the Securities and Exchange Commission (the "<u>Commission</u>") thereunder, and has been filed with the Commission. Copies of such registration statement and of each amendment thereto, if any, including the related preliminary prospectuses, heretofore filed by the Company with the Commission have been delivered to the Underwriters. The term "<u>Registration Statement</u>" means such registration statement on Form F-1 as amended at the time it becomes or became effective, including financial statements, all exhibits and any information deemed to be included or incorporated by reference therein, including any information deemed to be included pursuant to Rule 430A or Rule 430B of the Rules and Regulations, as applicable. If the Company files a registration statement to register a portion of the Offered Securities and relies on Rule 462(b) of the Rules and Regulations for such registration statement to become effective upon filing with the Commission (the "<u>Rule 462 Registration Statement</u>"), then any reference to the "Registration Statement" shall be deemed to include the Rule 462 Registration Statement, as amended from time to time. The term "<u>preliminary prospectus</u>" as used herein means a preliminary prospectus as contemplated by Rule 430 or Rule 430A of the Rules and Regulations included at any time as part of, or deemed to be part of or included in, the Registration Statement. The term "<u>Prospectus</u>" means the final prospectus in connection with this Offering as first filed with the Commission pursuant to Rule 424(b) of the Rules and Regulations or, if no such filing is required, the form of final prospectus included in the Registration Statement at the effective date, except that if any revised prospectus or prospectus supplement shall be provided to the Representative by the Company for use in connection with the Offered Securities which differs from the Prospectus (whether or not such revised prospectus or prospectus supplement is required to be filed by the Company pursuant to Rule 424(b)), the term "Prospectus" shall also refer to such revised prospectus or prospectus supplement, as the case may be, from and after the time it is first provided to the Representative for such use. Any reference herein to the terms "amend", "amendment" or "supplement" with respect to the Registration Statement, any preliminary prospectus or the Prospectus shall be deemed to refer to and include: (i) the filing of any document under the Securities Exchange Act of 1934, as amended, and together with the rules and regulations promulgated thereunder (collectively, the "<u>Exchange Act</u>") after the effective date of the Registration Statement, the date of such preliminary prospectus or the date of the Prospectus, as the case may be, which is incorporated therein by reference, and (ii) any such document so filed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Effectiveness of Registration.* The Registration Statement, any Rule 462 Registration Statement and any post-effective amendment thereto have been declared effective by the Commission under the Act or have become effective pursuant to Rule 462 of the Rules and Regulations. The Company has responded to all requests, if any, of the Commission for additional or supplemental information. No stop order suspending the effectiveness of the Registration Statement or any Rule 462 Registration Statement is in effect and no proceedings for such purpose have been instituted or are pending or, to the knowledge of the Company, are threatened by the Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Accuracy of Registration Statement.* Each of the Registration Statement, any Rule 462 Registration Statement and any post-effective amendment thereto, at the time it became effective, when any document filed under the Exchange Act was or is filed and at all subsequent times, complied and will comply in all material respects with the Act and the Rules and Regulations, and did not and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein not misleading. The Prospectus, as amended or supplemented, as of its date and at all subsequent times when a prospectus is delivered or required (or, but for the provisions of Rule 172, would be required) by applicable law to be delivered in connection with sales of Securities, complied and will comply in all material respects with the Act, the Exchange Act and the Rules and Regulations, and did not or will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein not misleading, in the light of the circumstances under which they were made. Each preliminary prospectus (including the preliminary prospectus or prospectuses filed as part of the Registration Statement or any amendment thereto) complied when so filed in all material respects with Act, the Exchange Act and the Rules and Regulations, and each preliminary prospectus and the Prospectus delivered to the Representative for use in connection with this Offering is identical to the electronically transmitted copies thereof filed with the Commission on EDGAR, except to the extent permitted by Regulation S-T. The foregoing representations and warranties in this Section 3(c) do not apply to any statements or omissions made in reliance on and in conformity with information relating to the Underwriters furnished in writing to the Company by the Underwriters through the Representative specifically for inclusion in the Registration Statement or Prospectus or any amendment or supplement thereto. For all purposes of this Agreement, the information set forth in the Prospectus (i) in the paragraphs under the caption "Underwriting" setting forth the over-allotment that may be undertaken by the Underwriters and the amount of the selling concession, (ii) in the paragraphs under the caption "Underwriting" regarding stabilization, short positions and penalty bids and (iii) the statements set forth under the caption "Underwriting" insofar as such statements relate to the names and corresponding share amounts set forth in the table of Underwriters, constitutes the only information (the "<u>Underwriters' Information</u>") relating to the Underwriters furnished in writing to the Company by the Underwriters through the Representative specifically for inclusion in the preliminary prospectus, the Registration Statement or the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Company Not Ineligible Issuer*. (i) At the time of filing the Registration Statement relating to the Securities and (ii) as of the date of the execution and delivery of this Agreement (with such date being used as the determination date for purposes of this clause (ii)), the Company was not and is not an "ineligible issuer" (as defined in Rule 405 of the Rules and Regulations).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Disclosure at the Time of Sale.* As of the Applicable Time, neither (i) the Issuer General Use Free Writing Prospectus(es) (as defined below) issued at or prior to the Applicable Time, the most recent preliminary prospectus related to this Offering, and the information included on <u>Schedule II</u> hereto, all considered together (collectively, the "<u>General Disclosure Package</u>"), nor (ii) any individual Issuer Limited Use Free Writing Prospectus, when considered together with the General Disclosure Package, included any untrue statement of a material fact or omitted to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The preceding sentence does not apply to statements in or omissions from the General Disclosure Package based upon and in conformity with written information furnished to the Company by the Underwriters through the Representative specifically for use therein, it being understood and agreed that the only such information furnished by the Underwriters consists of the Underwriters' Information.

As used in this subsection and elsewhere in this Agreement:

"<u>Applicable Time</u>" means 5:00 p.m. (New York City Time) on [ ], 2023 or such other time as agreed by the Company and the Representative.

"<u>Issuer Free Writing Prospectus</u>" means any "issuer free writing prospectus," as defined in Rule 433 of the Rules and Regulations, relating to the Offered Securities that (i) is required to be filed with the Commission by the Company, (ii) is "a written communication that is a road show" within the meaning of Rule 433(d)(8)(i), whether or not required to be filed with the Commission or (iii) is exempt from filing pursuant to Rule 433(d)(5)(i) because it contains a description of the Securities or of the Offering that does not reflect the final terms, in each case in the form filed or required to be filed with the Commission or, if not required to be filed, in the form retained in the Company's records pursuant to Rule 433(g).

"<u>Issuer General Use Free Writing Prospectus</u>" means any Issuer Free Writing Prospectus that is intended for general distribution to prospective investors, as evidenced by its being specified in <u>Schedule I</u> hereto.

"<u>Issuer Limited Use Free Writing Prospectus</u>" means any Issuer Free Writing Prospectus that is not an Issuer General Use Free Writing Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Issuer Free Writing Prospectuses.* Each Issuer Free Writing Prospectus, as of its issue date and at all subsequent times through the Prospectus Delivery Period (as defined below), does not include any information that conflicts in any material respect with the information contained in the Registration Statement. The foregoing sentence does not apply to statements in or omissions from any Issuer Free Writing Prospectus based upon and in conformity with the Underwriters' Information. If at any time following the issuance of an Issuer Free Writing Prospectus there occurred an event or development as a result of which such Issuer Free Writing Prospectus conflicted in any material respect with the information contained in the Registration Statement relating to the Securities or included an untrue statement of material fact or omitted to state a material fact necessary in order to make the statements therein, in light of the circumstances prevailing at that subsequent time, not misleading, the Company has promptly notified the Representative and has promptly amended or supplemented, at its own expense, such Issuer Free Writing Prospectus to eliminate or correct such conflict, untrue statement or omission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *Distribution of Offering Material by the Company.* The Company has not distributed and will not distribute, prior to the later of the Closing Date, any Option Closing Date and the completion of the Underwriters' distribution of the Offered Securities, any offering material in connection with the offering or sale of the Offered Securities, the Registration Statement, the preliminary prospectus, the Permitted Free Writing Prospectuses reviewed and consented to by the Representative and included in <u>Schedule I</u> hereto, and the Prospectus. None of the Marketing Materials, as of their respective issue dates and at all subsequent times through the Prospectus Delivery Period (as defined below), include any information that conflicts in any material respect with the information contained in the Registration Statement. If at any time following the issuance of any Marketing Material there occurred an event or development as a result of which such Marketing Material conflicted in any material respect with the information contained in the Registration Statement relating to the Securities or included an untrue statement of material fact or omitted to state a material fact necessary in order to make the statements therein, in light of the circumstances prevailing at that subsequent time, not misleading, the Company has promptly notified the Representative and has promptly amended or supplemented, at its own expense, such Marketing Material to eliminate or correct such conflict, untrue statement or omission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *Subsidiaries*. All of the direct and indirect subsidiaries of the Company (each, a "<u>Subsidiary</u>") are set forth in the Registration Statement, the General Disclosure Package and the Prospectus. The Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other similar restriction (each, a "<u>Lien</u>"), and all of the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Organization and Qualification*. The Company and each of the Subsidiaries is an entity incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own and use its properties and assets and to carry on its business as set forth in the Registration Statement. Neither the Company nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, would not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity or enforceability of this Agreement, the Underwriters' Warrants, or any other agreement, document, certificate or instrument required to be delivered pursuant to this Agreement (collectively, the "<u>Transaction Documents</u>"), (ii) a material adverse effect on the results of operations, assets, business, prospects or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company's ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a "<u>Material Adverse Effect</u>") and no action, claim, suit or proceeding (including, without limitation, a partial proceeding, such as a deposition), whether commenced or threatened (each, a "<u>Proceeding</u>") has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) *Authorization; Enforcement*. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement and each of the other Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, the Board of Directors or the Company's stockholders in connection herewith or therewith other than in connection with the Required Approvals (as hereinafter defined in <u>Section 3(l)</u>). This Agreement and each other Transaction Document to which the Company is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, assuming due authorization, execution and delivery by the Representative, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) *No Conflicts*. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to which it is a party, the issuance and sale of the Securities and the consummation by it of the transactions contemplated hereby and thereby do not and will not (i) conflict with or violate any provision of the Company's or any Subsidiary's certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as would not have or reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) *Filings, Consents and Approvals*. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than: (i) the filing with the Commission of the Registration Statement and the Prospectus, (ii) application(s) to the Nasdaq Capital Market for the listing of the Securities for trading thereon in the time and manner required thereby, (iii) such filings, if any, as are required to be made under applicable state securities laws, (iv) such notices, filings or authorizations as are required to be obtained or made under applicable rules of the Financial Industry Regulatory Authority, Inc. ("<u>FINRA</u>") and The Nasdaq Stock Market, and (v) such notices, filings or authorizations as have been obtained, given or made as of the date hereof (collectively, the "<u>Required Approvals</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) [Reserved.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) *Issuance of the Securities*. The Securities are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents, will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company. The Company has reserved from its duly authorized capital stock the maximum number of Ordinary Shares issuable pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) *Capitalization*. The capitalization of the Company as of the date hereof is as set forth in the Registration Statement, the General Disclosure Package and the Prospectus. The Company has not issued any capital stock since the date of the Registration Statement, other than pursuant to the Company's equity incentive plans, the issuance of Ordinary Shares to employees, directors or consultants pursuant to the Company's equity incentive plans and pursuant to the conversion and/or exercise of any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Ordinary Shares, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Ordinary Shares ("<u>Ordinary Share Equivalents</u>") and is outstanding as of the date of the Registration Statement. No individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind (each, a "<u>Person</u>") has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents. Except as a result of the purchase and sale of the Securities or as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any Ordinary Shares or the capital stock of any Subsidiary, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional Ordinary Shares or Ordinary Share Equivalents or capital stock of any Subsidiary. The issuance and sale of the Securities will not obligate the Company or any Subsidiary to issue Ordinary Shares or other securities to any Person (other than the Underwriters) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities. There are no securities of the Company or any Subsidiary that have any anti-dilution or similar adjustment rights (other than adjustments for stock splits, recapitalizations, and the like) to the exercise or conversion price, have any exchange rights, or reset rights. Except as set forth in the Registration Statement, the General Disclosure Package and the Prospectus, there are no outstanding securities or instruments of the Company or any Subsidiary that contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to redeem a security of the Company or such Subsidiary. The Company does not have any stock appreciation rights or "phantom stock" plans or agreements or any similar plan or agreement. All of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in compliance in all material respects with all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. No further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the Securities. There are no stockholders agreements, voting agreements or other similar agreements with respect to the Company's capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company's stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) *SEC Reports; Financial Statements*. As of their respective dates, the Registration Statement, the General Disclosure Package and the Prospectus (being collectively referred to herein as the "<u>SEC Reports</u>") complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The financial statements of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods involved ("<u>GAAP</u>"), except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments. The agreements and documents described in the SEC Reports conform in all material respects to the descriptions thereof contained therein and there are no agreements or other documents required by the Securities Act and the rules and regulations thereunder to be described in the SEC Reports or to be filed with the Commission as exhibits to the Registration Statement, that have not been so described or filed. Each agreement or other instrument (however characterized or described) to which the Company is a party or by which it is or may be bound or affected and (i) that is referred to in the SEC Reports, or (ii) is material to the Company's business, has been duly authorized and validly executed by the Company, is in full force and effect in all material respects and is enforceable against the Company and, to the Company's knowledge, the other parties thereto, in accordance with its terms, except (x) as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting creditors' rights generally, (y) as enforceability of any indemnification or contribution provision may be limited under the federal and state securities laws, and (z) that the remedy of specific performance and injunctive and other forms of equitable relief may be subject to the equitable defenses and to the discretion of the court before which any proceeding therefore may be brought. Except as disclosed in the SEC Reports, none of such agreements or instruments has been assigned by the Company, and neither the Company nor, to the best of the Company's knowledge, any other party is in default thereunder and, to the best of the Company's knowledge, no event has occurred that, with the lapse of time or the giving of notice, or both, would constitute a default thereunder. To the best of the Company's knowledge, performance by the Company of the material provisions of such agreements or instruments will not result in a violation of any existing applicable law, rule, regulation, judgment, order or decree of any governmental agency or court, domestic or foreign, having jurisdiction over the Company or any of its assets or businesses, including, without limitation, those relating to environmental laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) *Material Changes; Undisclosed Events, Liabilities or Developments*. Since the date of the latest audited financial statements included within the SEC Reports, except as reflected or specifically disclosed in a subsequent SEC Report filed prior to the date hereof, (i) there has been no event, occurrence or development that has had or that would reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company's financial statements pursuant to GAAP or disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company equity incentive plans or as set forth in the Registration Statement, the General Disclosure Package and the Prospectus. The Company does not have pending before the Commission any request for confidential treatment of information. Except for the issuance of the Securities contemplated by this Agreement, no event, liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the Company or its Subsidiaries or their respective businesses, prospects, properties, operations, assets or financial condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed at least 1 Trading Day prior to the date that this representation is made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) *Litigation*. There is no action, suit, inquiry, notice of violation or proceeding pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an "<u>Action</u>") which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Securities or (ii) would, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, neither the Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company or any current or former director or officer of the Company. The Commission has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) *Labor Relations*. No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the Company, which would reasonably be expected to result in a Material Adverse Effect. None of the Company's or its Subsidiaries' employees is a member of a union that relates to such employee's relationship with the Company or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe that their relationships with their employees are good. To the knowledge of the Company, no executive officer of the Company or any Subsidiary, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant in favor of any third party, and the continued employment of each such executive officer does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance with all U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices, terms and conditions of employment and wages and hours, except where the failure to be in compliance would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) *Compliance*. Except as set forth in the Registration Statement, the General Disclosure Package and the Prospectus, neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any judgment, decree or order of any court, arbitrator or other governmental authority or (iii) is or has been in violation of any statute, rule, ordinance or regulation of any governmental authority, including, without limitation, all foreign, federal, state and local laws relating to taxes, environmental protection, occupational health and safety, product quality and safety and employment and labor matters, except in each case as would not have or reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) *Environmental Laws*. The Company and its Subsidiaries (i) are in compliance in all material respects with all federal, state, local and foreign laws relating to pollution or protection of human health or the environment (including ambient air, surface water, groundwater, land surface or subsurface strata), including laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, "<u>Hazardous Materials</u>") into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands, or demand letters, injunctions, judgments, licenses, notices or notice letters, orders, permits, plans or regulations, issued, entered, promulgated or approved thereunder ("<u>Environmental Laws</u>"); (ii) have received all permits licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses; and (iii) are in compliance with all terms and conditions of any such permit, license or approval where in each clause (i), (ii) and (iii), the failure to so comply would be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) *Regulatory Permits*. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports, except where the failure to possess such permits would not reasonably be expected to result in a Material Adverse Effect ("<u>Material Permits</u>"), and neither the Company nor any Subsidiary has received any written notice of proceedings relating to the revocation or modification of any Material Permit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) *Title to Assets*. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them and good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries, in each case free and clear of all Liens, except for (i) Liens as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries and (ii) Liens for the payment of federal, state or other taxes, for which appropriate reserves have been made therefor in accordance with GAAP and, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries are in compliance in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) *Intellectual Property*. To the knowledge of the Company, the Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights and similar rights necessary or required for use in connection with their respective businesses as described in the SEC Reports and which the failure to so have could have a Material Adverse Effect (collectively, the "<u>Intellectual Property Rights</u>"). None of, and neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of, the Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire or be abandoned, within two (2) years from the date of this Agreement, except where such action would not reasonably be expected to have a Material Adverse Effect. Neither the Company nor any Subsidiary has received, since the date of the latest audited financial statements included within the SEC Reports, a written notice of a claim or otherwise has any knowledge that the Intellectual Property Rights violate or infringe upon the rights of any Person, except as would not have or reasonably be expected to not have a Material Adverse Effect. To the knowledge of the Company, all such Intellectual Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights. The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual properties, except where failure to do so would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The Company has no knowledge that it lacks or will be unable to obtain any rights or licenses to use all Intellectual Property Rights that are necessary to conduct its business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) *Insurance*. The Company and the Subsidiaries are insured against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged, including, but not limited to, directors and officers insurance coverage. Neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant increase in cost.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) *Transactions With Affiliates and Employees*. Except as set forth in the SEC Reports, none of the officers or directors of the Company or any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, providing for the borrowing of money from or lending of money to or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member or partner, in each case in excess of $120,000 other than for (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements under any stock option plan of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) *Sarbanes-Oxley; Internal Accounting Controls*. The Company and the Subsidiaries are in compliance in all material respects with any and all applicable requirements of the Sarbanes-Oxley Act of 2002 that are effective and applicable to the Company as of the date hereof, and any and all applicable rules and regulations promulgated by the Commission thereunder that are effective as of the date hereof and as of the Closing Date or the Option Closing Date, as applicable. Except as set forth in the SEC Reports, the Company and the Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that: (i) transactions are executed in accordance with management's general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management's general or specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company and the Subsidiaries have established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and the Subsidiaries and designed such disclosure controls and procedures to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission's rules and forms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) *Certain Fees; FINRA Affiliation*. Except as set forth in the Registration Statement, the General Disclosure Package and the Prospectus, no brokerage or finder's fees or commissions are or will be payable by the Company or any Subsidiary to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents. To the Company's knowledge, there are no other arrangements, agreements or understandings of the Company or, to the Company's knowledge, any of its stockholders that may affect the Underwriters' compensation, as determined by FINRA. The Company has not made any direct or indirect payments (in cash, securities or otherwise) to (i) any person, as a finder's fee, investing fee or otherwise, in consideration of such person raising capital for the Company or introducing to the Company persons who provided capital to the Company, (ii) any FINRA member, or (iii) any person or entity that has any direct or indirect affiliation or association with any FINRA member within the 12-month period prior to the date on which the Registration Statement was filed with the Commission (the "<u>Filing Date</u>") or thereafter. To the Company's knowledge, no (i) officer or director of the Company or its subsidiaries, (ii) owner of 10% or more of the Company's unregistered securities or that of its subsidiaries or (iii) owner of any amount of the Company's unregistered securities acquired within the 180-day period prior to the Filing Date, has any direct or indirect affiliation or association with any FINRA member. The Company will advise the Underwriters and their respective counsel if it becomes aware that any officer, director or stockholder of the Company or its subsidiaries is or becomes an affiliate or associated person of a FINRA member participating in the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) *Investment Company*. The Company is not, and is not an affiliate of, and immediately after receipt of payment for the Offered Securities, will not be or be an affiliate of, an "investment company" within the meaning of the Investment Company Act of 1940, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) *Registration Rights*. Except as set forth in the Registration Statement, the General Disclosure Package and the Prospectus, no Person has any right to cause the Company or any Subsidiary to effect the registration under the Securities Act of any securities of the Company or any Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) *Listing and Maintenance Requirements*. The Ordinary Shares are registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Ordinary Shares under the Exchange Act nor has the Company received any notification that the Commission is contemplating terminating such registration. The Company is in compliance with all such listing and maintenance requirements. The Ordinary Shares are currently eligible for electronic transfer through the Depository Trust Company or another established clearing corporation and the Company is current in payment of the fees to the Depository Trust Company (or such other established clearing corporation) in connection with such electronic transfer. The issuance and sale of the Securities hereunder does not contravene in any material respect the rules and regulations of The Nasdaq Stock Market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) [Reserved.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) *No Integrated Offering*. Neither the Company or any Person acting on its behalf, nor, to the Company's knowledge, any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with the Company (as such terms are used in and construed under Rule 405 under the Securities Act) (each, an "<u>Affiliate</u>") or any Person acting on their behalf, has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering of the Offered Securities to be integrated with prior offerings by the Company for purposes of any applicable shareholder approval provisions of The Nasdaq Stock Market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) *Solvency*. Based on the consolidated financial condition of the Company as of the Closing Date and as of the Option Closing Date, after giving effect to the receipt by the Company of the proceeds from the sale of the Offered Securities hereunder, the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, may be insufficient to pay all amounts on or in respect of its liabilities when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt). Except as set forth in the Registration Statement, the General Disclosure Package and the Prospectus, the Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within one year from the Closing Date or the Option Closing Date, as applicable. The Registration Statement, the General Disclosure Package and the Prospectus sets forth as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary has commitments. For the purposes of this Agreement, "<u>Indebtedness</u>" means (x) any liabilities for borrowed money or amounts owed in excess of $50,000 (other than trade accounts payable incurred in the ordinary course of business), (y) all guaranties, endorsements and other contingent obligations in respect of indebtedness of others, whether or not the same are or should be reflected in the Company's consolidated balance sheet (or the notes thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business; and (z) the present value of any lease payments in excess of $50,000 due under leases required to be capitalized in accordance with GAAP. Except as set forth in the Registration Statement, the General Disclosure Package and the Prospectus, neither the Company nor any Subsidiary is in default with respect to any Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Tax Status*. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect, each of the Company and its Subsidiaries (i) has made or filed all United States federal, state and local income and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations and (iii) has set aside on its books provision reasonably adequate for the payment of all material taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company or of any Subsidiary know of no basis for any such claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) *Foreign Corrupt Practices*. Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary, any agent or other person acting on behalf of the Company or any Subsidiary, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made by any person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended, or any similar law of any foreign jurisdiction applicable to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) *Accountants*. The Company's accounting firm is Marcum Asia CPAs LLP (the "<u>Accountants</u>"). To the knowledge of the Company, such accounting firm (i) is a registered public accounting firm as required by the Exchange Act and (ii) shall express its opinion with respect to the financial statements to be included in the Company's Annual Report for the fiscal year ending December 31, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) *Regulation M Compliance*. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the Company, other than, in the case of clauses (ii) and (iii), compensation paid to the Underwriters in connection with the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) [Reserved.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) *Office of Foreign Assets Control*. Neither the Company nor any Subsidiary nor, to the Company's knowledge, any director, officer, agent, employee or Affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department ("<u>OFAC</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) *U.S. Real Property Holding Corporation*. The Company is not and has never been a U.S. real property holding corporation within the meaning of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon the Representative's request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) *Bank Holding Company Act*. Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank Holding Company Act of 1956, as amended (the "<u>BHCA</u>"), and to regulation by the Board of Governors of the Federal Reserve System (the "<u>Federal Reserve</u>"). Neither the Company nor any of its Subsidiaries or, to the knowledge of the Company or any Subsidiary, Affiliates, owns or controls, directly or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent (25%) or more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither the Company nor any of its Subsidiaries or Affiliates exercises a controlling influence over the management or policies of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) *Money Laundering*. The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance in all material respects with applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the "<u>Money Laundering Laws</u>"), and no Action or Proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge of the Company or any Subsidiary, threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr) *Equity Incentive Plan*. Each share option granted by the Company under the Company's equity incentive plan was granted in accordance with the terms of the Company's equity incentive plan. No share option granted under the Company's equity incentive plan has been backdated. The Company has not knowingly granted, and there is no and has been no Company policy or practice to knowingly grant, share options prior to, or otherwise knowingly coordinate the grant of share options with, the release or other public announcement of material information regarding the Company or its Subsidiaries or their financial results or prospects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ss) *Officer's Certificates*. Any certificate signed by any officer of the Company or any of its Subsidiaries delivered to the Representative or its counsel shall be deemed a representation and warranty by the Company to the Underwriters as to the matters covered thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Agreements of the Company</u>. The Company agrees with the Underwriters as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Amendments and Supplements to Registration Statement.* The Company shall not, either prior to any effective date or thereafter during such period as the Prospectus is required by law to be delivered (whether physically or through compliance with Rule 172 of the Rules and Regulations or any similar rule) (the "<u>Prospectus Delivery Period</u>") in connection with sales of the Securities by an Underwriter or dealer, amend or supplement the Registration Statement, the General Disclosure Package or the Prospectus, unless a copy of such amendment or supplement thereof shall first have been submitted to the Representative within a reasonable period of time prior to the filing or, if no filing is required, the use thereof and the Representative shall not have objected thereto in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Amendments and Supplements to the Registration Statement, the General Disclosure Package, and the Prospectus and Other Securities Act Matters. During the Prospectus Delivery Period, the Company will comply in all material respects with all requirements imposed upon it by the Securities Act, as now and hereafter amended, and by the Rules and Regulations, as from time to time in force, and by the Exchange Act so far as necessary to permit the continuance of sales of or dealings in the Securities as contemplated by the provisions hereof, the General Disclosure Package, the Registration Statement and the Prospectus. If, during the Prospectus Delivery Period, any event or development shall occur or condition exist as a result of which the General Disclosure Package or the Prospectus, as then amended or supplemented, would include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances then prevailing or under which they were made, as the case may be, not misleading, or if it shall be necessary to amend or supplement the General Disclosure Package or the Prospectus in order to make the statements therein, in the light of the circumstances then prevailing or under which they were made, as the case may be, not misleading, or if in the opinion of the Representative it is otherwise necessary to amend or supplement the Registration Statement, the General Disclosure Package or the Prospectus, or to file a new registration statement containing the Prospectus, in order to comply with the Act, the Rules and Regulations, the Exchange Act or the Exchange Act Rules, including in connection with the delivery of the Prospectus, the Company agrees to (i) promptly notify the Representative of any such event or condition and (ii) promptly prepare (subject to Section 4(a) and 4(f) hereof), file with the Commission (and use its commercially reasonable efforts to have any amendment to the Registration Statement or any new registration statement to be declared effective) and furnish at its own expense to the Representative (and, if applicable, to dealers), amendments or supplements to the Registration Statement, the General Disclosure Package or the Prospectus, or any new registration statement, necessary in order to make the statements in the General Disclosure Package or the Prospectus as so amended or supplemented, in the light of the circumstances then prevailing or under which they were made, as the case may be, not misleading, or so that the Registration Statement or the Prospectus, as amended or supplemented, will comply in all material respects with the Act, the Rules and Regulations, the Exchange Act or the Exchange Act Rules or any other applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Notifications to the Underwriters.* The Company shall use its commercially reasonable efforts to cause the Registration Statement to become effective, and shall notify the Representative promptly, and shall confirm such advice in writing, (i) when any post-effective amendment to the Registration Statement has become effective and when any post-effective amendment thereto becomes effective, (ii) of any request by the Commission for amendments or supplements to the Registration Statement or the Prospectus or for additional information, (iii) of the commencement by the Commission or by any state securities commission of any proceedings for the suspension of the qualification of any of the Offered Securities for offering or sale in any jurisdiction or of the initiation, or the threatening, of any proceeding for that purpose, including, without limitation, the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose or the threat thereof, (iv) of the happening of any event during the Prospectus Delivery Period that in the judgment of the Company makes any statement made in the Registration Statement or the Prospectus misleading (including by omission) or untrue or that requires the making of any changes in the Registration Statement or the Prospectus in order to make the statements therein, in light of the circumstances in which they are made, not misleading (including by omission), and (v) of receipt by the Company or any representative of the Company of any other communication from the Commission relating to the Company, the Registration Statement, any preliminary prospectus or the Prospectus. If at any time the Commission shall issue any order suspending the effectiveness of the Registration Statement, the Company shall use reasonable best efforts to obtain the withdrawal of such order at the earliest possible moment. The Company shall comply in all material respects with the provisions of and make all requisite filings with the Commission pursuant to Rules 424(b), 430A, 430B and 462(b) of the Rules and Regulations and to notify the Representative promptly of all such filings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Executed Registration Statement.* Upon the Representative's request, the Company shall furnish to the Representative, without charge, one signed copy of the Registration Statement, and of any post-effective amendment thereto, including financial statements and schedules, and all exhibits thereto, and shall furnish to the Representative, without charge, a copy of the Registration Statement and any post-effective amendment thereto, including financial statements and schedules but without exhibits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Undertakings.* The Company shall comply in all material respects with all the provisions of any undertakings contained and required to be contained in the Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Prospectus.* The Company shall prepare the Prospectus in a form reasonably approved by the Representative and shall file such Prospectus with the Commission pursuant to Rule 424(b) of the Rules and Regulations with a filing date not later than the second business day following the execution and delivery of this Agreement. Promptly after the effective date of the Registration Statement, and thereafter from time to time during the period when the Prospectus is required (or, but for the provisions of Rule 172 under the Act, would be required) to be delivered, the Company shall deliver to the Representative, without charge, as many copies of the Prospectus and any amendment or supplement thereto as the Representative may reasonably request. The Company consents to the use of the Prospectus and any amendment or supplement thereto by the Representative and by all dealers to whom the Offered Securities may be sold, both in connection with the offering or sale of the Offered Securities and for any period of time thereafter during the Prospectus Delivery Period. If, during the Prospectus Delivery Period any event shall occur that in the judgment of the Company or counsel to the Underwriters should be set forth in the Prospectus in order to make any statement therein, in the light of the circumstances under which it was made, not misleading (including by omission), or if it is necessary to supplement or amend the Prospectus to comply with applicable law, the Company shall forthwith prepare and file with the Commission an appropriate supplement or amendment thereto, and shall deliver to the Representative, without charge, such number of copies thereof as the Representative may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *Permitted Free Writing Prospectuses.* The Company represents and agrees that it has not made and, unless it obtains the prior consent of the Representative, will not make, any offer relating to the Offered Securities that would constitute a "free writing prospectus" as defined in Rule 405 of the Rules and Regulations, required to be filed with the Commission or retained by the Company under Rule 433 of the Rules and Regulations; *provided* that the prior written consent of the Representative hereto shall be deemed to have been given in respect of the Issuer Free Writing Prospectuses included in <u>Schedule I</u> hereto. Any such free writing prospectus consented to by the Representative is herein referred to as a "<u>Permitted Free Writing Prospectus</u>." The Company agrees that (i) it has treated and will treat, as the case may be, each Permitted Free Writing Prospectus as an Issuer Free Writing Prospectus, and (ii) has complied in all material respects and will comply in all material respects, as the case may be, with the requirements of Rules 164 and 433 of the Act applicable to any Permitted Free Writing Prospectus, including in respect of timely filing with the Commission, legending and record keeping. If at any time following the issuance of an Issuer Free Writing Prospectus there occurs an event or development as a result of which such Issuer Free Writing Prospectus would conflict in any material respect with the information contained in the Registration Statement relating to the Offered Securities or would include an untrue statement of material fact or would omit to state a material fact necessary in order to make the statements therein, in light of the circumstances prevailing at that subsequent time, not misleading, the Company will promptly notify the Representative and will promptly amend or supplement, at its own expense, such Issuer Free Writing Prospectus to eliminate or correct such conflict, untrue statement, or omission. The Company represents that it has satisfied and agrees that it will satisfy the conditions in Rule 433 to avoid a requirement to file with the Commission any electronic road show.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *Compliance with Blue Sky Laws.* Prior to any public offering of the Securities by the Underwriters, the Company shall cooperate with the Representative and counsel to the Underwriters in connection with the registration or qualification (or the obtaining of exemptions from the application thereof) of the Offered Securities for offer and sale under the securities or Blue Sky laws of such jurisdictions as the Representative may request limitation, *provided*, *however*, that in no event shall the Company be obligated to qualify a public offering outside the United States or to do business as a foreign corporation in any jurisdiction where it is not now so qualified, to qualify or register as a dealer in securities, to take any action which would subject it to general service of process in any jurisdiction where it is not now so subject or subject itself to ongoing taxation in respect of doing business in any jurisdiction in which it is not so subject.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Delivery of Financial Statements.* During a period of five years commencing on the effective date of the Registration Statement applicable to the Underwriters, the Company shall furnish to the Representative and each other Underwriter who may so request copies of such financial statements and other periodic and special reports as the Company may from time to time distribute generally to the holders of any class of its capital stock, and will furnish to the Representative and each other Underwriter who may so request a copy of each annual or other report it shall be required to file with the Commission; provided, however, that the availability of electronically transmitted copies filed with the Commission pursuant to EDGAR shall satisfy the Company's obligation to furnish copies hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) *Availability of Earnings Statements.* The Company shall make generally available to holders of its securities as soon as may be practicable but in no event later than the last day of the fifteenth (15<sup>th</sup>) full calendar month following the calendar quarter in which the most recent effective date occurs in accordance with Rule 158 of the Rules and Regulations, an earnings statement (which need not be audited but shall be in reasonable detail) covering a period of twelve (12) months ended commencing after the effective date, and satisfying the provisions of Section 11(a) of the Act (including Rule 158 of the Rules and Regulations).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) *Consideration; Payment of Expenses.* In consideration of the services to be provided for hereunder, the Underwriters or their respective designees their pro rata portion (based on the Securities purchased) of the following compensation with respect to the Offered Securities they are offering:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) An underwriting discount equal to seven percent (7%) of the aggregate gross proceeds raised in the Offering (the "<u>Underwriting Discount</u>"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Underwriters' Warrants; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Additionally, if the Closing occurs, the Company grants the Representative the right of first refusal for a period of twelve (12) months from the date of commencement of sales pursuant to the Prospectus to act as sole managing underwriter and sole book runner and/or sole placement agent for any and all future public or private equity, equity-linked or debt (excluding commercial bank debt) offerings undertaken by the Company, or any successor to or any subsidiary of the Company. The Company shall provide written notice to the Representative with the terms of such offering and if the Representative fails to accept in writing any such proposal within ten (10) business days after receipt of such written notice, then the Representative will have no claim or right with respect to any such offering(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Representative reserves the right to reduce any item of compensation or adjust the terms thereof as specified herein in the event that a determination shall be made by FINRA to the effect that the Underwriters' aggregate compensation is in excess of FINRA rules or that the terms thereof require adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Whether or not the transactions contemplated by this Agreement, the Registration Statement and the Prospectus are consummated or this Agreement is terminated, the Company hereby agrees to pay the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) all expenses in connection with the preparation, printing, formatting for EDGAR and filing of the Registration Statement, any Preliminary Prospectus and the Prospectus and any and all exhibits, amendments and supplements thereto and the mailing and delivering of copies thereof to the Underwriters and dealers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) all filing fees in connection with filings with FINRA's Public Offering System;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) all fees, disbursements and expenses of the Company's counsel, accountants and other agents and representatives in connection with the registration of the Securities under the Act and the Offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) all expenses in connection with the qualifications of the Securities for offering and sale under state or foreign securities or blue sky laws (including, without limitation, all filing and registration fees, and the fees and disbursements of Underwriters' counsel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) all fees and expenses in connection with listing the Securities on a national securities exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) all expenses, including travel and lodging expenses, of the Company's officers, directors and employees and any other expense of the Company incurred in connection with attending or hosting meetings with prospective purchasers of the Securities and any fees and expenses associated with the i-Deal system and NetRoadshow;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) any stock transfer taxes or other taxes incurred in connection with this Agreement or the offering, including any stock transfer taxes payable upon the transfer of securities to the Underwriters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) the costs associated with preparing, printing and delivering certificates representing the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) the cost and charges of any transfer agent or registrar for the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) subject to the following proviso, other costs (including Underwriters' counsel's fees and expenses) and expenses incident to the Offering that are not otherwise specifically provided for in this Section 4(k); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) costs relating to background checks of the Company's officers and directors;

*provided, however*, that all such Underwriters' counsel's fees and expenses that are incurred by the Underwriters and for which the Company shall be responsible shall not exceed $200,000 in the aggregate in the event of a Closing of the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) [Reserved]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) *Reimbursement of Expenses upon Termination of Agreement.* If this Agreement shall be terminated by the Company pursuant to any of the provisions hereof or if for any reason the Company shall be unable to perform its obligations or to fulfill any conditions hereunder, or if the Underwriters shall terminate this Agreement pursuant to the last paragraph of Section 5, Section 7(a), Section 7(e) or Section 7(f), the Company shall reimburse the Underwriters for all out-of-pocket expenses (including the reasonable fees, disbursements and other charges of counsel to the Underwriter) actually incurred by the Underwriters in connection herewith and as allowed under FINRA Rule 5110; *provided*, *however*, that the maximum amount of costs and expenses to be reimbursed by Company to the Underwriters pursuant to this Section 4(l) in respect of the fees, disbursements and other charges of counsel to the Underwriters shall not exceed $100,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) *No Stabilization or Manipulation.* The Company shall not at any time, directly or indirectly, take any action intended to cause or result in, or which might reasonably be expected to cause or result in, or which will constitute, stabilization or manipulation, under the Act or otherwise, of the price of the Ordinary Shares or the Securities to facilitate the sale or resale of any of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) *Use of Proceeds.* The Company shall apply the net proceeds from the offering and sale of the Securities to be sold by the Company in the manner set forth in the General Disclosure Package and the Prospectus under "Use of Proceeds" and shall file such reports with the Commission with respect to the sale of the Securities and the application of the proceeds therefrom as may be required in accordance with Rule 463 under the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) *Lock-Up Agreements of Company, Management and Affiliates.* The Company shall not, for a period of one hundred eighty (180) days after the Closing Date (the "<u>Lock-Up Period</u>"), without the prior written consent of Maxim (which consent may be withheld in its sole discretion), (1) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, or file with the Commission a registration statement under the Act to register, any shares of Ordinary Shares, warrants, or any securities convertible into or exercisable or exchangeable for Ordinary Shares or (2) enter into any swap or other derivatives transaction that transfers to another, in whole or in part, directly or indirectly, any of the economic benefits or risks of ownership of Ordinary Shares, whether any such transaction described in clause (1) or (2) above is to be settled by delivery of Ordinary Shares or other securities, in cash or otherwise, or publicly disclose the intention to enter into any transaction described in clause (1) or (2) above. The foregoing sentence shall not apply to (A) the Securities to be sold hereunder, and (B) the issuance of Ordinary Shares upon the exercise of options or warrants as disclosed as outstanding in the Registration Statement, the General Disclosure Package or the Prospectus, provided that such options or warrants have not been amended since the date of this Agreement to increase the number of such options or warrants or option shares or warrant shares or to decrease the exercise price of such options or warrants or to extend the term of such options or warrants. The Company has caused each of its officers and directors and certain shareholders of five percent (5%) or more of the outstanding Ordinary Shares of the Company to enter into agreements with the Representative in the form set forth in <u>Exhibit A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) *Lock-Up Releases*. If Maxim, in its sole discretion, agrees to release or waive the restrictions set forth in a lock-up letter described in Section 4(p) hereof for an officer or director of the Company and provides the Company with notice of the impending release or waiver at least three business days before the effective date of the release or waiver, the Company agrees to announce the impending release or waiver by a press release substantially in the form of <u>Exhibit B</u> hereto through a major news service at least two business days before the effective date of such release or waiver, or any other method that satisfies the obligations described in FINRA Rule 5131(d)(2) at least two business days before the effective date of the release or waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) *NASDAQ listing*. The Company will use its reasonable best efforts to effect and maintain the listing of the Ordinary Shares on the NASDAQ Capital Market for at least three (3) years after the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) The Company shall use its reasonable best efforts to maintain the effectiveness of the Registration Statement and a current Prospectus relating thereto for as long as the Underwriters' Warrants remain outstanding. During any period when the Company fails to have maintained an effective Registration Statement or a current Prospectus relating thereto and a holder of the Underwriters' Warrants desires to exercise such warrants and, in the opinion of counsel to the holder, Rule 144 is not available as an exemption from registration for the resale of the Ordinary Shares issuable upon exercise of the Underwriters' Warrants, the Company shall promptly file a registration statement registering the resale of such shares and use its reasonable best efforts to have it declared effective by the Commission as promptly as practicable after the filing thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Conditions of the Obligations of the Underwriters</u>. The obligation of the Underwriters to purchase the Firm Securities on the Closing Date or the Option Securities on the Option Closing Date, as the case may be, as provided herein is subject to the accuracy of the representations and warranties of the Company, the performance by the Company of its covenants and other obligations hereunder and to the following additional conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Post Effective Amendments and Prospectus Filings.* Notification that the Registration Statement has become effective shall be received by the Representative not later than 4:30 p.m., New York City time, on the date of this Agreement or at such later date and time as shall be consented to in writing by the Representative and all filings made pursuant to Rules 424, 430A, or 430B of the Rules and Regulations, as applicable, shall have been made or will be made prior to the Closing Date in accordance with all such applicable rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *No Stop Orders, Requests for Information and No Amendments.* (i) No stop order suspending the effectiveness of the Registration Statement shall have been issued and no proceedings for that purpose shall be pending or are, to the knowledge of the Company, threatened by the Commission, (ii) no order suspending the qualification or registration of the Offered Securities under the securities or Blue Sky laws of any jurisdiction shall be in effect and no proceeding for such purpose shall be pending before or threatened or contemplated by the authorities of any such jurisdiction, (iii) any request for additional information on the part of the staff of the Commission or any such authorities shall have been complied with to the satisfaction of the staff of the Commission or such authorities and (iv) after the date hereof no amendment or supplement to the Registration Statement or the Prospectus shall have been filed unless a copy thereof was first submitted to the Representative and the Representative did not object thereto in good faith, and the Representative shall have received certificates, dated the Closing Date and the Option Closing Date and signed by the Chief Executive Officer or the Chairman of the Board of Directors and the Chief Financial Officer of the Company in their capacities as such, and not individually, (who may, as to proceedings threatened, certify to their knowledge), to the effect of clauses (i), (ii) and (iii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *No Material Adverse Effect.* Since the respective dates as of which information is given in the Registration Statement and the Prospectus, except as set forth in the Registration Statement, the General Disclosure Package and the Prospectus (i) there shall not have been a Material Adverse Effect, (ii) the Company shall not have incurred any material liabilities or obligations, direct or contingent, (iii) the Company shall not have entered into any material transactions not in the ordinary course of business other than pursuant to this Agreement and the transactions referred to herein, (iv) the Company shall not have issued any securities (other than the Securities or the Ordinary Shares issued in the ordinary course of business pursuant to existing employee benefit plans of the Company referred to in the Registration Statement, General Disclosure Package and the Prospectus) or declared or paid any dividend or made any distribution in respect of its capital stock of any class or debt (long-term or short-term), and (v) no material amount of the assets of the Company shall have been pledged, mortgaged or otherwise encumbered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *No Actions, Suits or Proceedings.* Since the respective dates as of which information is given in the Registration Statement, the General Disclosure Package and the Prospectus, there shall have been no actions, suits or proceedings instituted, or to the Company's knowledge, threatened against or affecting, the Company or its subsidiaries or any of their respective officers in their capacity as such, before or by any federal, state or local court, commission, regulatory body, administrative agency or other governmental body, domestic or foreign.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *All Representations True and Correct and All Conditions Fulfilled.* Each of the representations and warranties of the Company contained herein shall be true and correct as of the date of the Agreement and at the Closing Date as if made at the Closing Date and any Option Closing Date, as the case may be, and all covenants and agreements contained herein to be performed by the Company and all conditions contained herein to be fulfilled or complied with by the Company at or prior to the Closing Date and any Option Closing Date, shall have been duly performed, fulfilled or complied with.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Opinions of Counsel to the Company.* The Underwriters shall have received the opinions and letters, each dated the Closing Date and any Option Closing Date, as the case may be, each reasonably satisfactory in form and substance to the Representative and counsel for the Underwriters, from Loeb & Loeb LLP, as corporate/securities counsel, and from Carey Olsen Hong Kong LLP, as to the validity of the Offered Securities and certain other matters governed by Cayman Islands law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *Opinion of Counsel to the Underwriters.* The Representative shall have received an opinion, dated the Closing Date and any Option Closing Date, as the case may be, from Pryor Cashman LLP, securities counsel to the Underwriters, with respect to the Registration Statement, the Prospectus and this Agreement, which opinions shall be satisfactory in all respects to the Representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *Accountants' Comfort Letter.* On the date of the Prospectus, the Representative shall have received from the Accountants a letter dated the date of its delivery, addressed to the Underwriters, in form and substance reasonably satisfactory to the Representative and counsel to the Underwriters, containing statements and information of the type ordinarily included in accountant's "comfort letters" to underwriters, delivered according to Statement of Auditing Standards No. 72 (or any successor bulletin), with respect to the audited and unaudited financial statements and certain financial information contained in the Registration Statement and the Prospectus. At the Closing Date and any Option Closing Date, as the case may be, the Representative shall have received from the Accountants a letter dated such date, in form and substance reasonably satisfactory to the Representative and counsel to the Underwriters, to the effect that they reaffirm the statements made in the letter furnished by them pursuant to the preceding sentence and have conducted additional procedures with respect to certain financial figures included in the Prospectus, except that the specified date referred to therein for the carrying out of procedures shall be no more than three business days prior to the Closing Date or any Option Closing Date, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Officers' Certificates.* At the Closing Date and any Option Closing Date, there shall be furnished to the Representative an accurate certificate, dated the date of its delivery, signed by each of the Chief Executive Officer and the Chief Financial Officer of the Company, in their capacities as such, and not individually, in form and substance satisfactory to the Representative and counsel to the Underwriters, to the effect that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each signer of such certificate has carefully examined the Registration Statement and the Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) there has not been a Material Adverse Effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) with respect to the matters set forth in Sections 5(b)(i) and 5(e).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) *Transfer Agent's Certificate*. The Company's transfer agent shall have furnished or caused to be furnished to the Representative a certificate reasonably satisfactory to the Representative of one of its authorized officers with respect to the issuance of the Ordinary Shares and such other customary matters related thereto as the Representative may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) *Eligible for DTC Clearance*. At or prior to the Closing Date and each Option Closing Date, the Ordinary Shares shall be eligible for clearance and settlement through the facilities of the DTC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) *Lock-Up Agreements.* At the date of this Agreement, the Representative shall have received the executed "lock-up" agreements referred to in Section 4(p) hereof from the Company's officers and directors, and from shareholders of five percent (5%) or more of the outstanding Ordinary Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) *Stock Exchange Listing.* The Ordinary Shares shall have been duly authorized for listing on the NASDAQ Capital Market, subject to official notice of issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) *Exchange Act Registration.* One or more registration statements in respect of the Ordinary Shares shall have been filed on Form 8-A pursuant to Section 12(b) of the Exchange Act, each of which registration statements complies in all material respects with the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) *Good Standing.* At the Closing Date and any Option Closing Date, the Company shall have furnished to the Representative satisfactory evidence of the good standing of the Company and its Subsidiaries, in their respective jurisdictions of organization (to the extent the concept of "good standing" or such equivalent concept exists under the laws of the applicable jurisdictions) and their good standing as foreign entities in such other jurisdictions as the Representative may reasonably request, in each case in writing or any standard form of telecommunication from the appropriate governmental authorities of such jurisdictions. If the applicable jurisdiction does not have a concept of "good standing," the Company will furnish evidence in writing or any standard form of telecommunication from the appropriate governmental authorities that the relevant company was incorporated and remains registered in the jurisdiction of its incorporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) *Company Certificates.* The Company shall have furnished to the Representative such certificates, in addition to those specifically mentioned herein, as the Representative may have reasonably requested as to the accuracy and completeness at the Closing Date and any Option Closing Date of any statement in the Registration Statement, the General Disclosure Package or the Prospectus, as to the accuracy at the Closing Date and any Option Closing Date of the representations and warranties of the Company herein, as to the performance by the Company of its obligations hereunder, or as to the fulfillment of the conditions concurrent and precedent to the obligations hereunder of the Underwriters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) *No Objection*. FINRA has confirmed that it has not raised any objection with respect to the fairness and reasonableness of the underwriting terms and arrangements relating to the offering of the Offered Securities.

If any of the conditions hereinabove provided for in this Section 5 shall not have been fulfilled when and as required by this Agreement to be fulfilled, the obligations of the Underwriters hereunder may be terminated by the Representative by notifying the Company of such termination in writing at or prior to the Closing Date or any Option Closing Date, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Indemnification of the Underwriters*. The Company shall indemnify and hold harmless each Underwriter, its affiliates, the directors, officers, employees and agents of such Underwriter and each person, if any, who controls such Underwriter within the meaning of Section 15 of the Act or Section 20 of the Exchange Act from and against any and all losses, claims, liabilities, expenses and damages (including any and all investigative, legal and other expenses reasonably incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding between any of the indemnified parties and any indemnifying parties or between any indemnified party and any third party, or otherwise, or any claim asserted), to which they, or any of them, may become subject under the Act, the Exchange Act or other federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, liabilities, expenses or damages arise out of or are based on (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment thereto), including the information deemed to be a part of the Registration Statement at the time of effectiveness and at any subsequent time pursuant to Rules 430A and 430B of the Rules and Regulations, as applicable, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, any preliminary prospectus supplement, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement to any of the foregoing) or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading or (iii) any untrue statement or alleged untrue statement of a material fact contained in any materials or information provided to investors by, or with the approval of, the Company in connection with the marketing of the offering of the Securities, including any roadshow or investor presentations made to investors by the Company (whether in person or electronically) (collectively, <u>Marketing Materials</u>") or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading or (iv) in whole or in part any inaccuracy in any material respect in the representations and warranties of the Company contained herein; *provided*, *however*, that the Company shall not be liable to the extent that such loss, claim, liability, expense or damage is based on any untrue statement or omission or alleged untrue statement or omission made in reliance on and in conformity with Underwriters' Information. This indemnity agreement will be in addition to any liability that the Company might otherwise have.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Indemnification of the Company.* Each Underwriter, severally and not jointly, agrees to indemnify and hold harmless the Company, its affiliates, the directors, officers, employees and agents of the Company and each other person or entity, if any, who controls the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange Act, against any losses, liabilities, claims, damages and expenses whatsoever, as incurred (including but not limited to reasonable attorneys' fees and any and all reasonable expenses whatsoever, incurred in investigating, preparing or defending against any litigation, commenced or threatened, or any claim whatsoever, and any and all amounts paid in settlement of any claim or litigation), joint or several, to which they or any of them may become subject under the Act, the Exchange Act or otherwise, insofar as such losses, liabilities, claims, damages or expenses (or actions in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the Registration Statement at the time of effectiveness and at any subsequent time pursuant to Rules 430A and 430B of the Rules and Regulations, any Preliminary Prospectus, the Prospectus, or any amendment or supplement to any of them, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, in each case to the extent, but only to the extent, that any such loss, liability, claim, damage or expense (or action in respect thereof) arises out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance upon the Underwriters' Information; <u>provided</u>, <u>however</u>, that in no case shall any Underwriter be liable or responsible for any amount in excess of the underwriting discount and commissions applicable to the Securities purchased by such Underwriter hereunder. The parties agree that such information provided by or on behalf of the Underwriters through the Representative consists solely of the material referred to in the last sentence of Section 3(c) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Indemnification Procedures.* Any party that proposes to assert the right to be indemnified under this Section 6 shall, promptly after receipt of notice of commencement of any action against such party in respect of which a claim is to be made against an indemnifying party or parties under this Section 6, notify each such indemnifying party of the commencement of such action, enclosing a copy of all papers served, but the omission so to notify such indemnifying party shall not relieve the indemnifying party from any liability that it may have to any indemnified party under the foregoing provisions of this Section 6 unless, and only to the extent that, such omission results in the forfeiture of substantive rights or defenses by the indemnifying party. If any such action is brought against any indemnified party and it notifies the indemnifying party of its commencement, the indemnifying party will be entitled to participate in and, to the extent that it elects by delivering written notice to the indemnified party promptly after receiving notice of the commencement of the action from the indemnified party, jointly with any other indemnifying party similarly notified, to assume the defense of the action, with counsel satisfactory to the indemnified party, and after notice from the indemnifying party to the indemnified party of its election to assume the defense, the indemnifying party will not be liable to the indemnified party for any legal or other expenses except as provided below and except for the reasonable out-of-pocket costs of investigation subsequently incurred by the indemnified party in connection with the defense. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (i) the employment of counsel by the indemnified party has been authorized in writing by one of the indemnifying parties in connection with the defense of such action, (ii) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (iii) the indemnified party has reasonably concluded that a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party shall not have the right to direct the defense of such action on behalf of the indemnified party), (iv) the indemnifying party does not diligently defend the action after assumption of the defense, or (v) the indemnifying party has not in fact employed counsel satisfactory to the indemnified party to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel shall be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges shall be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party shall not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld or delayed). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless (x) such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party, and (y) the indemnifying party confirms in writing its indemnification obligations hereunder with respect to such settlement, compromise or judgment. Notwithstanding the foregoing, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 6(a) effected without its written consent if (A) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (B) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Contribution.* In order to provide for just and equitable contribution in circumstances in which the indemnification provided for in the foregoing paragraphs of this Section 6 is applicable in accordance with its terms but for any reason is held to be unavailable, the Company and the Underwriters shall contribute to the total losses, claims, liabilities, expenses and damages (including any investigative, legal and other expenses reasonably incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, but after deducting any contribution received by the Company from persons other than the Underwriters, such as persons who control the Company within the meaning of the Act, officers of the Company who signed the Registration Statement and directors of the Company, who may also be liable for contribution), to which the Company and the Underwriter may be subject in such proportion as shall be appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Securities pursuant to this Agreement. The relative benefits received by the Company and the Underwriters shall be deemed to be in the same proportion as (x) the total proceeds from the Offering (net of underwriting discount and commissions but before deducting expenses) received by the Company bears to (y) the underwriting discount and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus. If, but only if, the allocation provided by the foregoing sentence is not permitted by applicable law, the allocation of contribution shall be made in such proportion as is appropriate to reflect not only the relative benefits referred to in the foregoing sentence but also the relative fault of the Company, on the one hand, and the Underwriters, on the other, with respect to the statements or omissions which resulted in such loss, claim, liability, expense or damage, or action in respect thereof, as well as any other relevant equitable considerations with respect to such offering. Such relative fault shall be determined by reference to whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters, the intent of the parties and their relative knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contributions pursuant to this Section 6(d) were to be determined by pro rata allocation or by any other method of allocation (even if the Underwriters were treated as one entity for such purpose) which does not take into account the equitable considerations referred to herein. The amount paid or payable by an indemnified party as a result of the loss, claim, liability, expense or damage, or action in respect thereof, referred to above in this Section 6(d) shall be deemed to include, for purpose of this Section 6(d), any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 6(d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts and commissions received by it. No person found guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6(d), any person who controls a party to this Agreement within the meaning of the Act will have the same rights to contribution as that party, and each officer of the Company who signed the Registration Statement will have the same rights to contribution as the Company, and each director, officer, employee, counsel or agent of an Underwriter will have the same rights to contribution as such Underwriter, subject in each case to the provisions hereof. Any party entitled to contribution, promptly after receipt of notice of commencement of any action against such party in respect of which a claim for contribution may be made under this Section 6(d), will notify any such party or parties from whom contribution may be sought, but the omission so to notify will not relieve the party or parties from whom contribution may be sought from any other obligation it or they may have under this Section 6(d). The obligations of the Underwriters to contribute pursuant to this Section 6(d) are several in proportion to the respective number of Securities to be purchased by each of the Underwriters hereunder and not joint. No party will be liable for contribution with respect to any action or claim settled without its written consent (which consent will not be unreasonably withheld).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Survival.* The indemnity and contribution agreements contained in this Section 6 and the representations and warranties of the Company contained in this Agreement shall remain operative and in full force and effect regardless of (i) any investigation made by or on behalf of any Underwriter or any controlling Person thereof, (ii) acceptance of any of the Securities and payment therefor or (iii) any termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Termination</u>. The obligations of the Underwriters under this Agreement may be terminated at any time prior to the Closing Date (or, with respect to the Option Securities, on or prior to the Option Closing Date), by notice to the Company from the Representative, without liability on the part of the Underwriters to the Company, if, prior to delivery and payment for the Firm Securities (or the Option Securities, as the case may be), in the sole judgment of the Representative, any of the following shall occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) trading or quotation in any of the equity securities of the Company shall have been suspended or limited by the Commission, The Nasdaq Stock Market or by an exchange or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) trading in securities generally on the New York Stock Exchange, the NYSE MKT, the NASDAQ Capital Market, the NASDAQ Global Market, the NASDAQ Global Select Market shall have been suspended or limited or minimum or maximum prices shall have been generally established on such exchange, or additional material governmental restrictions, not in force on the date of this Agreement, shall have been imposed upon trading in securities generally by such exchange or by order of the Commission or any court or other governmental authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a general banking moratorium shall have been declared by any of U.S. federal, New York authorities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the United States shall have become engaged in new hostilities, there shall have been an escalation in hostilities involving the United States or there shall have been a declaration of a national emergency or war by the United States or there shall have occurred such a material adverse change in general economic, political or financial conditions, including, without limitation, as a result of terrorist activities after the date hereof (or the effect of international conditions on the financial markets in the United States shall be such), or any other calamity or crisis shall have occurred, the effect of any of which is such as to make it impracticable or inadvisable to market the Securities on the terms and in the manner contemplated by the Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Company shall have sustained a loss material or substantial to the Company by reason of flood, fire, accident, hurricane, earthquake, theft, sabotage, or other calamity or malicious act, whether or not such loss shall have been insured, the effect of any of which is such as to make it impracticable or inadvisable to market the Securities on the terms and in the manner contemplated by the Prospectus; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) there shall have been a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Underwriter Default</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If any Underwriter or Underwriters shall default in its or their obligation to purchase Firm Securities hereunder, and if the Securities with respect to which such default relates (the "<u>Default Securities</u>") do not (after giving effect to arrangements, if any, made by the Representative pursuant to subsection (b) below) exceed in the aggregate 10% of the number of the Firm Securities, each non-defaulting Underwriter, acting severally and not jointly, agrees to purchase from the Company that number of Default Securities that bears the same proportion to the total number of Default Securities then being purchased as the number of Firm Securities set forth opposite the name of such Underwriter on <u>Schedule A</u> hereto bears to the aggregate number of Firm Securities set forth opposite the names of the non-defaulting Underwriters; subject, however, to such adjustments to eliminate fractional shares as the Representative in its discretion shall make.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that the aggregate number of Default Securities exceeds 10% of the number of Firm Securities, the Representatives may in their discretion arrange for themselves or for another party or parties (including any non-defaulting Underwriter or Underwriters who so agree) to purchase the Default Securities on the terms contained herein. In the event that within five (5) calendar days after such a default the Representative does not arrange for the purchase of the Default Securities as provided in this Section 8, this Agreement shall thereupon terminate, without liability on the part of the Company with respect thereto (except in each case as provided in Sections 4(k), 6 and 8) or the Underwriters, but nothing in this Agreement shall relieve a defaulting Underwriter or Underwriters of its or their liability, if any, to the other Underwriters and the Company for damages occasioned by its or their default hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that any Default Securities are to be purchased by the non-defaulting Underwriters, or are to be purchased by another party or parties as aforesaid, the Representatives or the Company shall have the right to postpone the Closing Date for a period, not exceeding five (5) Business Days, in order to effect whatever changes may thereby be necessary in the Registration Statement or the Prospectus or in any other documents and arrangements, and the Company agrees to file promptly any amendment or supplement to the Registration Statement or the Prospectus which, in the reasonable opinion of Underwriters' Counsel, may be necessary or advisable. The term "Underwriter" as used in this Agreement shall include any party substituted under this Section 8 with like effect as if it had originally been a party to this Agreement with respect to such Firm Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Notices.* Notice given pursuant to any of the provisions of this Agreement shall be in writing and, unless otherwise specified, shall be mailed, hand delivered or telecopied (a) if to the Company, at the office of the Company, 1/10-12 Forsyth Close, Wetherill Park, Sydney, SNW, Australia, telephone number: +61 2 9725 1111, Attention: Chief Executive Officer, or (b) if to the Representative or any Underwriter, to Maxim Group LLC, 300 Park Avenue, 16<sup>th</sup> Floor, New York, New York 10022, Attention: Legal Department, telecopy number: (212) 895-3555. Any such notice shall be effective only upon receipt. Any notice under Section 6 hereof may be made by telecopy or telephone, but if so made shall be subsequently confirmed in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *No Third Party Beneficiaries.* This Agreement has been and is made solely for the benefit of the Underwriters, the Company and, with respect to Section 6, the controlling persons, directors, officers, employees, counsel and agents referred to in Section 6 hereof, and their respective successors and assigns, and no other person shall acquire or have any right under or by virtue of this Agreement. The term "successors and assigns" as used in this Agreement shall not include a purchaser of Securities from any Underwriter in his, her or its capacity as such a purchaser, as such purchaser of Securities from such Underwriter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Survival of Representations and Warranties.* All representations, warranties and agreements of the Company contained herein or in certificates or other instruments delivered pursuant hereto shall remain operative and in full force and effect regardless of any investigation made by or on behalf of the Underwriters or any of their controlling persons and shall survive delivery of and payment for the Securities hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Disclaimer of Fiduciary Relationship*. The Company acknowledges and agrees that (i) the purchase and sale of the Securities pursuant to this Agreement, including the determination of the public offering price of the Offered Securities and any related discounts and commissions, is an arm's-length commercial transaction between the Company, on the one hand, and the Underwriters, on the other hand, (ii) in connection with the Offering contemplated by this Agreement and the process leading to such transaction, the Underwriters are and have been acting pursuant to a contractual relationship created solely by this Agreement and are not agents or fiduciaries of the Company or its securityholders, creditors, employees or any other party, (iii) no Underwriter has assumed nor will it assume any advisory or fiduciary responsibility in favor of the Company with respect to the offering of the Securities contemplated by this Agreement or the process leading thereto (irrespective of whether such Underwriter or its affiliates has advised or is currently advising the Company on other matters) and each such Underwriter has no obligation to the Company with respect to the offering of the Securities contemplated by this Agreement except the obligations expressly set forth in this Agreement, (iv) the Underwriters and their affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Company, and (v) no Underwriter has provided any legal, accounting, regulatory or tax advice with respect to the Offering contemplated by this Agreement and the Company has consulted its own legal, accounting, regulatory and tax advisors to the extent it deemed appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Governing Law.* THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Submission to Jurisdiction*. The Company irrevocably submits to the non-exclusive jurisdiction of any New York State or United States federal court sitting in The City of New York, Borough of Manhattan, over any suit, action or proceeding arising out of or relating to this Agreement, the Disclosure Package, the Prospectus, the Registration Statement, or the offering of the Securities. The Company irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of venue of any such suit, action or proceeding brought in such a court and any claim that any such suit, action or proceeding brought in such a court has been brought in an inconvenient forum. To the extent that the Company has or hereafter may acquire any immunity (on the grounds of sovereignty or otherwise) from the jurisdiction of any court or from any legal process with respect to itself or its property, the Company irrevocably waives, to the fullest extent permitted by law, such immunity in respect of any such suit, action or proceeding including without limitation, any immunity pursuant to the U.S. Foreign Sovereign Immunities Act of 1976, as amended. Each of the Underwriters and the Company further agrees to accept and acknowledge service of any and all process which may be served in any such suit, action or proceeding in the Supreme Court of the State of New York, New York County, or in the United States District Court for the Southern District of New York and agrees that service of process upon the Company mailed by certified mail or delivered by Federal Express via overnight delivery to the Company's address shall be deemed in every respect effective service of process upon the Company in any such suit, action or proceeding, and service of process upon an Underwriter mailed by certified mail or delivered by Federal Express via overnight delivery to the Underwriters' address shall be deemed in every respect effective service of process upon such Underwriter in any such suit, action or proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *Judgment Currency*. If for the purposes of obtaining judgment in any court it is necessary to convert a sum due hereunder into any currency other than United States dollars, the parties hereto agree, to the fullest extent permitted by law, that the rate of exchange used shall be the rate at which in accordance with normal banking procedures the Underwriters could purchase United States dollars with such other currency in The City of New York on the business day preceding that on which final judgment is given. The obligation of the Company with respect to any sum due from it to an Underwriter or any person controlling such Underwriter shall, notwithstanding any judgment in a currency other than United States dollars, not be discharged until the first business day following receipt by such Underwriter or controlling person of any sum in such other currency, and only to the extent that such Underwriter or controlling person may in accordance with normal banking procedures purchase United States dollars with such other currency. If the United States dollars so purchased are less than the sum originally due to such Underwriter or controlling person hereunder, the Company agrees as a separate obligation and notwithstanding any such judgment, to indemnify such Underwriter or controlling person against such loss. If the United States dollars so purchased are greater than the sum originally due to such Underwriter or controlling person hereunder, such Underwriter or controlling person agrees to pay to the Company an amount equal to the excess of the dollars so purchased over the sum originally due to such Underwriter or controlling person hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *Counterparts.* This Agreement may be signed in two or more counterparts with the same effect as if the signatures thereto and hereto were upon the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Survival of Provisions Upon Invalidity of Any Single Provision.* In case any provision in this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) *Waiver of Jury Trial.* The Company and each Underwriter each hereby irrevocably waive any right they may have to a trial by jury in respect of any claim based upon or arising out of this Agreement or the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) *Titles and Subtitles.* The titles of the sections and subsections of this Agreement are for convenience and reference only and are not to be considered in construing this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) *Entire Agreement.* This Agreement embodies the entire agreement and understanding between the parties hereto and supersedes all prior agreements and understandings relating to the subject matter hereof. This Agreement may not be amended or otherwise modified or any provision hereof waived except by an instrument in writing signed by the parties hereto.

[Signature page follows]

If the foregoing correctly sets forth your understanding, please so indicate in the space provided below for that purpose, whereupon this letter shall constitute a binding agreement among us.

Very truly yours,

**SOLARJUICE CO., LTD.**

By:<u> </u>

Name:<br> Title:

Accepted by the Representatives, acting for themselves and as

Representatives of the Underwriters named on <u>Schedule A</u> hereto,

as of the date first written above:

Maxim Group LLC

By:<u> </u>

Name: Clifford A. Teller<br> Title: Executive Managing Director, Investment Banking

**SCHEDULE A**

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| | |
|:---|:---|
| **Name of Underwriter** | **Number of Firm Shares** |
| Maxim Group LLC |  |
| **Total** |  |

---

Schedule I

ISSUER FREE WRITING PROSPECTUSES:

Schedule II

1. The public offering price per Ordinary Share shall be $[ ].

2. The Company is selling [ ] Ordinary Shares.

3. The Company has granted an option to the Representative, on behalf of the Underwriters, to purchase up to
an additional [ ] Ordinary Shares.

EXHIBIT A

**LOCK-UP AGREEMENT**

[___], 2023

Maxim Group LLC

300 Park Avenue, 16<sup>th</sup> Floor

New York, NY 10022

Re: **SolarJuice Co., Ltd.**

Ladies and Gentlemen:

As an inducement to Maxim Group LLC, as representative of the underwriters (the ***"Representative"***), to execute an underwriting agreement (the ***"Underwriting Agreement"***) providing for a public offering (the ***"Offering"***) of the ordinary shares, par value $0.00004 per share (the ***"Shares"***), of SolarJuice Co., Ltd., a Cayman Islands exempted company with limited liability (the ***"Company"***), the undersigned hereby agrees that without, in each case, the prior written consent of the Representative, during the period specified in the second succeeding paragraph (the ***"Lock-Up Period"***), the undersigned will not (1) offer, pledge, announce the intention to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, make any short sale or otherwise transfer or dispose of, directly or indirectly, any Shares or any securities convertible into, exercisable or exchangeable for or that represent the right to receive Shares (including, without limitation, Shares which may be deemed to be beneficially owned by the undersigned in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (the "***SEC***") and securities which may be issued upon exercise of a stock option or warrant) whether now owned or hereafter acquired (the ***"Undersigned's Securities"***) or (2) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of the Undersigned's Securities, whether any such transaction described in clause (1) or (2) above is to be settled by delivery of Shares or such other securities, in cash or otherwise. The foregoing restriction is expressly agreed to preclude the undersigned from engaging in any hedging or other transaction which is designed to or which reasonably could be expected to lead to or result in a sale or disposition of the Undersigned's Securities even if such Undersigned's Securities would be disposed of by someone other than the undersigned. Such prohibited hedging or other transactions would include, without limitation, any short sale or any purchase, sale or grant of any right (including, without limitation, any put or call option) with respect to any of the Undersigned's Securities or with respect to any security that includes, relates to, or derives any significant part of its value from such Undersigned's Securities.

In addition, the undersigned agrees that, without the prior written consent of the Representative, it will not, during the Lock-Up Period, make any demand for or exercise any right with respect to, the registration of any Shares or any security convertible into or exercisable or exchangeable for Shares other than as contemplated in the registration statement relating to the Offering.

The Lock-Up Period shall mean the period commencing on the date of this Lock-Up Agreement and continue and include the date one hundred and eighty (180) days after the date of the final prospectus supplement used to sell Shares in the Offering pursuant to the Underwriting Agreement.

Notwithstanding the foregoing, the undersigned may transfer the Undersigned's Securities (i) to a Permitted Transferee, (ii) as a *bona fide* gift or gifts, (iii) to any trust for the direct or indirect benefit of the undersigned or the immediate family of the undersigned, (iv) by virtue of the laws of descent and distribution upon death of the undersigned, or (v) pursuant to a qualified domestic relations order or as required by a divorce settlement. As used in this Agreement, the term "Permitted Transferee" shall mean, if the undersigned is a corporation, company, business trust, association, limited liability company, partnership, limited liability partnership or other entity (collectively, the "***Entities***" or, individually, the "***Entity***"), to any person or Entity which controls, is directly or indirectly controlled by, or is under common control with the undersigned and, if the undersigned is a partnership or limited liability company, to its partners, former partners or an affiliated partnership (or members, former members or an affiliated limited liability company) managed by the same manager or managing partner (or managing member, as the case may be) or management company, or managed by an entity controlling, controlled by, or under common control with, such manager or managing partner (or managing member) or management company in accordance with partnership (or membership) interests; *provided,* in the case of clauses (i) through (v), that the transferee agrees in writing with the Representative to be bound by the terms of this Lock-Up Agreement, and *provided*, further, that in the case of clauses (i) through (iii), that no filing by any party in any public report or filing with the SEC shall be required or shall be made voluntarily in connection with such transfer. For purposes of this Lock-Up Agreement, "immediate family" shall mean any relationship by blood, marriage or adoption, not more remote than first cousin.

In addition, the foregoing restrictions shall not apply to (i) the exercise of stock options granted pursuant to the Company's equity incentive plans; *<u>provided</u>*, that such restrictions shall apply to any of the Undersigned's Securities issued upon such exercise, or (ii) the establishment of any contract, instruction or plan (a ***"Plan"***) that satisfies all of the requirements of Rule 10b5-1(c)(1)(i)(B) under the Exchange Act; *<u>provided</u>*, that no sales of the Undersigned's Securities shall be made pursuant to such a Plan prior to the expiration of the Lock-Up Period, and such a Plan may only be established if no public announcement of the establishment or existence thereof and no filing with the SEC or other regulatory authority in respect thereof or transactions thereunder or contemplated thereby, by the undersigned, the Company or any other person, shall be required, and no such announcement or filing is made voluntarily, by the undersigned, the Company or any other person, prior to the expiration of the Lock-Up Period.

In furtherance of the foregoing, the Company and its transfer agent and registrar are hereby authorized to decline to make any transfer of Shares if such transfer would constitute a violation or breach of this Lock-Up Agreement.

The undersigned hereby represents and warrants that the undersigned has full power and authority to enter into this Lock-Up Agreement and that, upon request, the undersigned will execute any additional documents necessary in connection with the enforcement hereof. All authority herein conferred or agreed to be conferred and any obligations of the undersigned shall be binding upon the successors, assigns, heirs or personal representatives of the undersigned.

The undersigned understands that the undersigned shall be released from all obligations under this Lock-Up Agreement if (i) the Company or the Representative informs the other that it does not intend to proceed with the Offering, (ii) the Underwriting Agreement does not become effective or if the Underwriting Agreement (other than the provisions thereof which survive termination) shall terminate or be terminated prior to payment for and delivery of the Ordinary Shares to be sold thereunder, or (iii) the Offering is not completed by [_____], 2023.

The undersigned understands that the Representative is entering into the Underwriting Agreement and proceeding with the Offering in reliance upon this Lock-Up Agreement.

This Lock-Up Agreement shall be governed by, and construed in accordance with, the laws of the State of New York.

Whether or not the Offering actually occurs depends on a number of factors, including market conditions. Any Offering will only be made pursuant to the Underwriting Agreement, the terms of which are subject to negotiation among the parties thereto.

[Signature page follows]

---

| |
|:---|
| Very truly yours, |
| (Name - Please Print) |
| (Signature) |

---

EXHIBIT B

Form of Press Release

[ ]

[Date]

SolarJuice Co., Ltd., a Cayman Islands exempted company with limited liability (the "<u>Company</u>"), announced today that Maxim Group LLC, the lead book-running manager in the Company's recent public sale of ordinary shares, is [waiving][releasing] a lock-up restriction with respect to [___] of the Company's Shares held by [certain officers or directors][an officer or director] of the Company. The [waiver][release] will take effect on [___], and the Shares may be sold on or after such date.

**This press release is not an offer for sale of the securities in the United States or in any other jurisdiction where such offer is prohibited, and such securities may not be offered or sold in the United States absent registration or an exemption from registration under the United States Securities Act of 1933, as amended.**

## Exhibit 4.2

**Exhibit 4.2**

THE REGISTERED HOLDER OF THIS WARRANT BY ITS ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS WARRANT EXCEPT AS HEREIN PROVIDED AND THE REGISTERED HOLDER OF THIS WARRANT AGREES THAT IT WILL NOT SELL, TRANSFER, ASSIGN, PLEDGE OR HYPOTHECATE THIS WARRANT FOR A PERIOD OF ONE HUNDRED EIGHTY DAYS FOLLOWING THE EFFECTIVE DATE (DEFINED BELOW) TO ANYONE OTHER THAN (I) MAXIM GROUP LLC OR AN UNDERWRITER OR A SELECTED DEALER IN CONNECTION WITH THE OFFERING, OR (II) A BONA FIDE OFFICER OR PARTNER OF MAXIM GROUP LLC OR OF ANY SUCH UNDERWRITER OR SELECTED DEALER.

**SOLARJUICE CO., LTD.**

**WARRANT**

Warrant No. [ ] Original Issue Date: [ ], 2023

**SolarJuice Co., Ltd.**, a Cayman Islands exempted company with limited liability (the **"Company"**), hereby certifies that, for value received, Maxim Group LLC or its registered assigns (the **"Holder"**), is entitled to purchase from the Company up to a total of [ ] shares of Common Stock (each such share, a **"Warrant Share"** and all such shares, the **"Warrant Shares"**), at any time and from time to time from and after the 181<sup>st</sup> day (the "**Commencement Date**") immediately following the date of effectiveness of that certain registration statement on Form F-1 (File No. 333-267486) filed by the Company (the "**Effective Date**"), in accordance with FINRA Rule 5110(e)(1), and through and including the fifty-four month anniversary of the date of effectiveness of that certain registration statement on Form F-1 (File No. 333-267486), which such date is [ ], 2028, which such date shall not be more than five years from the commencement of sales of the public offering pursuant to that certain registration statement on Form F-1 (File No. 333-267486) filed by the Company (the **"Expiration Date"**), and subject to the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Definitions</u>. As used in this Warrant, the following terms shall have the respective definitions set forth in this Section 1.

**"Affiliate"** means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 144.

**"Business Day"** means any day except Saturday, Sunday and any day which is a federal legal holiday or a day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.

**"Common Stock"** means the common stock of the Company, US$0.00004 par value per share, and any securities into which such common stock may hereafter be reclassified or for which it may be exchanged as a class.

**"Exchange Act"** means the Securities Exchange Act of 1934, as amended.

**"Exercise Price"** means $[ ], subject to adjustment in accordance with Section 9.

**"Fundamental Transaction"** means any of the following: (1) the Company effects any merger or consolidation of the Company with or into another Person, (2) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions, (3) any tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, or (4) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property.

**"New York Courts"** means the state and federal courts sitting in the City of New York, Borough of Manhattan.

**"Original Issue Date"** means the Original Issue Date first set forth on the first page of this Warrant.

**"Person"** means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

**"Rule 144"** means Rule 144 promulgated by the Securities and Exchange Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Securities and Exchange Commission having substantially the same effect as such Rule.

**"Securities Act"** means the Securities Act of 1933, as amended.

**"Subsidiary"** means any "significant subsidiary" as defined in Rule 1-02(w) of Regulation S-X promulgated by the Securities and Exchange Commission under the Exchange Act.

**"Trading Day"** means (i) a day on which the Common Stock is traded on a Trading Market, or (ii) if the Common Stock is not quoted on any Trading Market, a day on which the Common Stock is quoted in the over-the-counter market as reported by the OTC Markets Group, Inc. (or any similar organization or agency succeeding to its functions of reporting prices); provided, that in the event that the Common Stock is not listed or quoted as set forth in (i) or (ii) hereof, then Trading Day shall mean a Business Day.

**"Trading Market"** means whichever of the New York Stock Exchange, the NYSE MKT, the NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ Capital Market, OTC Bulletin Board, or the OTC Markets Group, Inc. OTCQX or OTCQB tier on which the Common Stock is listed or quoted for trading on the date in question.

**"Warrant Shares"** means the shares of Common Stock issuable upon exercise of this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Registration of Warrant</u>. The Company shall register this Warrant upon records to be maintained by the Company for that purpose (the **"Warrant Register"**), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Transfers</u>. (a) The Company shall register the transfer of any portion of this Warrant in the Warrant Register, upon surrender of this Warrant, with the Form of Assignment attached hereto duly completed and signed, to the Company at its address specified herein. Upon any such registration of transfer, a new Warrant to purchase Common Stock, in substantially the form of this Warrant (any such new Warrant, a **"New Warrant"**), evidencing the portion of this Warrant so transferred shall be issued to the transferee and a New Warrant evidencing the remaining portion of this Warrant not so transferred, if any, shall be issued to the transferring Holder. The acceptance of the New Warrant by the transferee thereof shall be deemed the acceptance by such transferee of all of the rights and obligations of a holder of a Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Warrant may not be sold, transferred, assigned, pledged, or hypothecated, or be the subject of any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of the securities by any person for a period of 180 days immediately following the date of effectiveness of that certain registration statement on Form F-1 (File No. 333-267486) filed by the Company, except as provided in FINRA Rule 5110(e)(2).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Exercise and Duration of Warrants</u>. This Warrant shall be exercisable by the registered Holder at any time and from time to time from and after the 181<sup>st</sup> day immediately following the date of effectiveness of that certain registration statement on Form F-1 (File No. 333-267486) filed by the Company, in accordance with FINRA Rule 5110(e)(1), and through and including the Expiration Date. At 5:30 p.m., New York City time on the Expiration Date, the portion of this Warrant not exercised prior thereto shall be and become void and of no value. The Company may not call or redeem any portion of this Warrant without the prior written consent of the affected Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Delivery of Warrant Shares</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To effect exercises hereunder, the Holder shall not be required to physically surrender this Warrant unless the aggregate Warrant Shares represented by this Warrant is being exercised. Upon delivery of the Exercise Notice (in the form attached hereto) to the Company (with the attached Warrant Shares Exercise Log) at its address for notice set forth herein and upon payment of the Exercise Price multiplied by the number of Warrant Shares that the Holder intends to purchase hereunder, the Company shall promptly (but in no event later than three Trading Days after the Date of Exercise (as defined herein)) issue and deliver to the Holder, a certificate for the Warrant Shares issuable upon such exercise. The Company shall, upon request of the Holder and subsequent to the date on which a registration statement covering the resale of the Warrant Shares has been declared effective by the Securities and Exchange Commission, use its reasonable best efforts to deliver Warrant Shares hereunder electronically through the Depository Trust & Clearing Corporation or another established clearing corporation performing similar functions, if available, <u>provided</u>, that, the Company may, but will not be required to change its transfer agent if its current transfer agent cannot deliver Warrant Shares electronically through the Depository Trust Corporation. A "**Date of Exercise**" means the date on which the Holder shall have delivered to the Company: (i) the Exercise Notice (with the Warrant Exercise Log attached to it), appropriately completed and duly signed and (ii) payment of the Exercise Price for the number of Warrant Shares so indicated by the Holder to be purchased.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If by the third Trading Day after a Date of Exercise the Company fails to deliver the required number of Warrant Shares in the manner required pursuant to Section 5(a), then the Holder will have the right to rescind such exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If by the third Trading Day after a Date of Exercise the Company fails to deliver the required number of Warrant Shares in the manner required pursuant to Section 5(a), and if after such third Trading Day and prior to the receipt of such Warrant Shares, the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a "**Buy-In**"), then the Company shall (1) pay in cash to the Holder the amount by which (x) the Holder's total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (A) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue by (B) the closing bid price of the Common Stock on the Date of Exercise and (2) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company's obligations to issue and deliver Warrant Shares in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other Person of any obligation to the Company or any violation or alleged violation of law by the Holder or any other Person, and irrespective of any other circumstance which might otherwise limit such obligation of the Company to the Holder in connection with the issuance of Warrant Shares. Nothing herein shall limit a Holder's right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company's failure to timely deliver certificates representing Warrant Shares upon exercise of the Warrant as required pursuant to the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Charges, Taxes and Expenses</u>. Issuance and delivery of Warrant Shares upon exercise of this Warrant shall be made without charge to the Holder for any issue or transfer tax, withholding tax, transfer agent fee or other incidental tax or expense in respect of the issuance of such certificates, all of which taxes and expenses shall be paid by the Company; provided, however, that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the registration of any certificates for Warrant Shares or Warrants in a name other than that of the Holder. The Holder shall be responsible for all other tax liability that may arise as a result of holding or transferring this Warrant or receiving Warrant Shares upon exercise hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Replacement of Warrant</u>. If this Warrant is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation hereof, or in lieu of and substitution for this Warrant, a New Warrant, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity (which shall not include a surety bond), if requested. Applicants for a New Warrant under such circumstances shall also comply with such other reasonable regulations and procedures and pay such other reasonable third-party costs as the Company may prescribe. If a New Warrant is requested as a result of a mutilation of this Warrant, then the Holder shall deliver such mutilated Warrant to the Company as a condition precedent to the Company's obligation to issue the New Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Reservation of Warrant Shares</u>. The Company covenants that it will at all times reserve and keep available out of the aggregate of its authorized but unissued and otherwise unreserved Common Stock, solely for the purpose of enabling it to issue Warrant Shares upon exercise of this Warrant as herein provided, the number of Warrant Shares which are then issuable and deliverable upon the exercise of this entire Warrant, free from preemptive rights or any other contingent purchase rights of Persons other than the Holder (taking into account the adjustments and restrictions of Section 9). The Company covenants that all Warrant Shares so issuable and deliverable shall, upon issuance and the payment of the applicable Exercise Price in accordance with the terms hereof, be duly authorized, validly issued and fully paid and nonassessable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Certain Adjustments</u>. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to time as set forth in this Section 9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Stock Dividends and Splits</u>. If the Company, at any time while this Warrant is outstanding, (i) pays a stock dividend on its Common Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides outstanding shares of Common Stock into a larger number of shares, or (iii) combines outstanding shares of Common Stock into a smaller number of shares, then in each such case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Fundamental Transactions</u>. If, at any time while this Warrant is outstanding there is a Fundamental Transaction, then the Holder shall have the right thereafter to receive, upon exercise of this Warrant, the same amount and kind of securities, cash or property as it would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of the number of Warrant Shares then issuable upon exercise in full of this Warrant (the **"Alternate Consideration"**). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. At the Holder's option and request, any successor to the Company or surviving entity in such Fundamental Transaction shall issue to the Holder a new warrant substantially in the form of this Warrant and consistent with the foregoing provisions and evidencing the Holder's right to purchase the Alternate Consideration for the aggregate Exercise Price upon exercise thereof. The terms of any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity to comply with the provisions of this paragraph (b) and ensuring that the Warrant (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Number of Warrant Shares</u>. Simultaneously with any adjustment to the Exercise Price pursuant to this Section 9, the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that after such adjustment the aggregate Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Calculations</u>. All calculations under this Section 9 shall be made to the nearest cent or the nearest 1/100<sup>th</sup> of a share, as applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Notice of Adjustments</u>. Upon the occurrence of each adjustment pursuant to this Section 9, the Company at its expense will promptly compute such adjustment in accordance with the terms of this Warrant and prepare a certificate setting forth such adjustment, including a statement of the adjusted Exercise Price and adjusted number or type of Warrant Shares or other securities issuable upon exercise of this Warrant (as applicable), describing the transactions giving rise to such adjustments and showing in detail the facts upon which such adjustment is based. Upon written request, the Company will promptly deliver a copy of each such certificate to the Holder and to the Company's Transfer Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Notice of Corporate Events</u>. If the Company (i) declares a dividend or any other distribution of cash, securities or other property in respect of its Common Stock, including without limitation any granting of rights or warrants to subscribe for or purchase any capital stock of the Company or any Subsidiary, (ii) authorizes or approves, enters into any agreement contemplating or solicits stockholder approval for any Fundamental Transaction or (iii) authorizes the voluntary dissolution, liquidation or winding up of the affairs of the Company, then the Company shall deliver to the Holder a notice describing the material terms and conditions of such transaction (but only to the extent such disclosure would not result in the dissemination of material, non-public information to the Holder) at least 10 calendar days prior to the applicable record or effective date on which a Person would need to hold Common Stock in order to participate in or vote with respect to such transaction, and the Company will take all steps reasonably necessary in order to ensure that the Holder is given the practical opportunity to exercise this Warrant prior to such time so as to participate in or vote with respect to such transaction; provided, however, that the failure to deliver such notice or any defect therein shall not affect the validity of the corporate action required to be described in such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Payment of Exercise Price</u>. The Holder may pay the Exercise Price in one of the following manners:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Cash Exercise</u>. The Holder may deliver immediately available funds; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Cashless Exercise</u>. The Holder may notify the Company in an Exercise Notice of its election to utilize cashless exercise, in which event the Company shall issue to the Holder the number of Warrant Shares determined as follows:

X = Y [(A-B)/A]

where:

X = the number of Warrant Shares to be issued to the Holder.

Y = the number of Warrant Shares with respect to which this Warrant is being exercised.

A = the average of the daily volume weighted average price for the five Trading Days immediately prior to (but not including) the Exercise Date.

B = the Exercise Price.

For purposes of Rule 144 promulgated under the Securities Act, it is intended, understood and acknowledged that the Warrant Shares issued in a cashless exercise transaction shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced, on the date this Warrant was originally issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Limitations on Exercise</u>. Notwithstanding anything to the contrary contained herein, the number of Warrant Shares that may be acquired by the Holder upon any exercise of this Warrant (or otherwise in respect hereof) shall be limited to the extent necessary to ensure that, following such exercise (or other issuance), the total number of shares of Common Stock then beneficially owned by such Holder and its Affiliates and any other Persons whose beneficial ownership of Common Stock would be aggregated with the Holder's for purposes of Section 13(d) of the Exchange Act, does not exceed 4.99% of the total number of issued and outstanding shares of Common Stock (including for such purpose the shares of Common Stock issuable upon such exercise). For such purposes, beneficial ownership shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. This provision shall not restrict the number of shares of Common Stock which a Holder may receive or beneficially own in order to determine the amount of securities or other consideration that such Holder may receive in the event of a Fundamental Transaction as contemplated in Section 9 of this Warrant. This restriction may not be waived. Notwithstanding anything to the contrary contained in this Warrant, (a) no term of this Section may be waived by any party, nor amended such that the threshold percentage of ownership would be directly or indirectly increased, (b) this restriction runs with the Warrant and may not be modified or waived by any subsequent holder hereof and (c) any attempted waiver, modification or amendment of this Section will be <u>void ab initio</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>No Fractional Shares</u>. No fractional shares of Warrant Shares will be issued in connection with any exercise of this Warrant. In lieu of any fractional shares which would, otherwise be issuable, the Company shall pay cash equal to the product of such fraction multiplied by the closing price of one Warrant Share as reported by the applicable Trading Market on the date of exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Notices</u>. Any and all notices or other communications or deliveries hereunder (including, without limitation, any Exercise Notice) shall be in writing and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in this Section prior to 5:30 p.m. (New York City time) on a Trading Day, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in this Section on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (iii) the Trading Day following the date of mailing, if sent by nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such notice is required to be given. The addresses for such communications shall be: (i) if to the Company, to 1/10-12 Forsyth Close, Wetherill Park, Sydney, SNW, Australia, telephone number: +61 2 9725 1111, Attention: Chief Executive Officer (or such other address as the Company shall indicate in writing in accordance with this Section), or (ii) if to the Holder, to the address or facsimile number appearing on the Warrant Register or such other address or facsimile number as the Holder may provide to the Company in accordance with this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Warrant Agent</u>. The Company shall serve as warrant agent under this Warrant. Upon 10 days' notice to the Holder, the Company may appoint a new warrant agent. Any corporation into which the Company or any new warrant agent may be merged or any corporation resulting from any consolidation to which the Company or any new warrant agent shall be a party or any corporation to which the Company or any new warrant agent transfers substantially all of its corporate trust or shareholders services business shall be a successor warrant agent under this Warrant without any further act. Any such successor warrant agent shall promptly cause notice of its succession as warrant agent to be mailed (by first class mail, postage prepaid) to the Holder at the Holder's last address as shown on the Warrant Register.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Warrant shall be binding on and inure to the benefit of the parties hereto and their respective successors and assigns. Subject to the preceding sentence, nothing in this Warrant shall be construed to give to any Person other than the Company and the Holder any legal or equitable right, remedy or cause of action under this Warrant. This Warrant may be amended only in writing signed by the Company and the Holder and their successors and assigns. The foregoing sentence shall be subject to the restrictions on waivers and amendments set forth in Section 11 of this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of this Warrant and the transactions herein contemplated (**"Proceedings"**) (whether brought against a party hereto or its respective Affiliates, employees or agents) shall be commenced exclusively in the New York Courts. Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any Proceeding, any claim that it is not personally subject to the jurisdiction of any New York Court, or that such Proceeding has been commenced in an improper or inconvenient forum. Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Warrant and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Warrant or the transactions contemplated hereby. If either party shall commence a Proceeding to enforce any provisions of this Warrant, then the prevailing party in such Proceeding shall be reimbursed by the other party for its attorney's fees and other costs and expenses incurred with the investigation, preparation and prosecution of such Proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The headings herein are for convenience only, do not constitute a part of this Warrant and shall not be deemed to limit or affect any of the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In case any one or more of the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Warrant shall not in any way be affected or impaired thereby and the parties will attempt in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Prior to exercise of this Warrant, the Holder hereof shall not, by reason of being a Holder, be entitled to any rights of a stockholder with respect to the Warrant Shares.

IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its authorized officer as of the date first indicated above.

---

| |
|:---|
| **SOLARJUICE CO., LTD.** |
| By: _________________________ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: |

---

**EXERCISE NOTICE**<br> **SOLARJUICE CO., LTD.<br> WARRANT DATED [ ], 2023**

The undersigned Holder hereby irrevocably elects to purchase _____________ shares of Common Stock pursuant to the above referenced Warrant. Capitalized terms used herein and not otherwise defined have the respective meanings set forth in the Warrant.

(1) The undersigned Holder hereby exercises its right to purchase _________________ Warrant Shares pursuant
to the Warrant.

(2) The holder shall pay the sum of $____________ to the Company in accordance with the terms of the Warrant.

(3) Pursuant to this Exercise Notice, the Company shall deliver to the holder _______________ Warrant Shares
in accordance with the terms of the Warrant.

(4) By its delivery of this Exercise Notice, the undersigned represents and warrants to the Company that in
giving effect to the exercise evidenced hereby the Holder will not beneficially own in excess of the number of shares of Common Stock
(determined in accordance with Section 13(d) of the Securities Exchange Act of 1934) permitted to be owned under Section 11 of this Warrant
to which this notice relates.

---

| | |
|:---|:---|
| Dated:_______________ , ____ | Name of Holder: |
|  | (Print) ____________________________ |
|  | By: ______________________________ |
|  | Name: |
|  | Title: |
|  | (Signature must conform in all respects to name of holder as specified on the face of the Warrant) |

---

**<u>Warrant Shares Exercise Log</u>**

Date <u>Number of Warrant Shares Available to be Exercised</u> <u>Number of Warrant Shares Exercised</u> <u>Number of Warrant Shares Remaining to be Exercised</u> <br>        

**SOLARJUICE CO., LTD.<br> WARRANT DATED [ ], 2023<br>** 

<br> FORM OF ASSIGNMENT

[To be completed and signed only upon transfer of Warrant]

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto ________________________________ the right represented by the above-captioned Warrant to purchase ____________ shares of Common Stock to which such Warrant relates and appoints ________________ attorney to transfer said right on the books of the Company with full power of substitution in the premises.

Dated: _______________, ____

_______________________________________<br> (Signature must conform in all respects to name of holder as specified on the face of the Warrant)

_______________________________________<br> Address of Transferee

_______________________________________<br>_______________________________________

In the presence of:

__________________________

## Exhibit 23.1

**Exhibit 23.1**

![](image_002.gif)

<u>Independent Registered Public Accounting Firm's Consent</u>

We consent to the inclusion in this Registration Statement of SolarJuice Co., Ltd. on Amendment No. 4 to the Form F-1, file No. 333-267486 of our report dated July 18, 2022, which includes an explanatory paragraph as to the Company's ability to continue as a going concern, with respect to our audits of the consolidated financial statements of SolarJuice Co., Ltd. as of December 31, 2021 and 2020 and for the years ended December 31, 2021 and 2020, which report appears in the Prospectus, which is part of this Registration Statement. We also consent to the reference to our Firm under the heading "Experts" in such Prospectus.

/s/ Marcum Asia CPAs LLP

Marcum Asia CPAs LLP

(Formerly Marcum Bernstein & Pinchuk LLP)

New York, NY

January 19, 2023

## Ex-Filing

**Exhibit 107**

**Calculation of Filing Fee Tables**

**<u>Form S-1</u>**

(Form Type)

**<u>SolarJuice Co., Ltd.</u>**

(Exact Name of Registrant as Specified in its Charter)

<u>Table 1: Newly Registered Securities</u>

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Security<br> Type | Security Class Title | Fee Calculation<br> or Carry Forward Rule | Amount Registered | Proposed Maximum Offering Price Per Unit | Maximum Aggregate Offering Price**<sup>(1)</sup>** | Fee Rate | Amount of Registration Fee |
| Equity | Ordinary Shares | Rule 457(o) | 2875000 | $8.00 | $23000000 | 0.0001102 | $2534.60 |
| **Total Offering Amounts** | **Total Offering Amounts** |  |  |  | $**23000000** |  |  |
| **Total Fees Previously Paid** | **Total Fees Previously Paid** |  |  |  |  |  | **3708** |
| **Total Fee Offset** | **Total Fee Offset** |  |  |  |  |  |  |
| **Net Fee Due** | **Net Fee Due** |  |  |  |  |  | $**0** |

---

(1) Estimated solely for the purpose of calculating the registration fee.

## Exhibit 99.4

**Exhibit 99.4**

Consent to be Named as a Director Nominee

In connection with the filing by SolarJuice Co., Ltd. of the Registration Statement on Form F-1 with the Securities and Exchange Commission under the Securities Act of 1933, as amended (the "Securities Act"), I hereby consent, pursuant to Rule 438 of the Securities Act, to being named as a nominee to the board of directors of SolarJuice Co., Ltd. in the Registration Statement and any and all amendments and supplements thereto. I also consent to the filing of this consent as an exhibit to such Registration Statement and any amendments thereto.

Dated: January 18, 2023

/s/ Ken He

Ken He

## Exhibit 99.5

**Exhibit 99.5**

Consent to be Named as a Director Nominee

In connection with the filing by SolarJuice Co., Ltd. of the Registration Statement on Form F-1 with the Securities and Exchange Commission under the Securities Act of 1933, as amended (the "Securities Act"), I hereby consent, pursuant to Rule 438 of the Securities Act, to being named as a nominee to the board of directors of SolarJuice Co., Ltd. in the Registration Statement and any and all amendments and supplements thereto. I also consent to the filing of this consent as an exhibit to such Registration Statement and any amendments thereto.

Dated: January 18, 2023

/s/ Philip Comberg

Dr. Philip Comberg

## Exhibit 99.6

**Exhibit 99.6**

Consent to be Named as a Director Nominee

In connection with the filing by SolarJuice Co., Ltd. of the Registration Statement on Form F-1 with the Securities and Exchange Commission under the Securities Act of 1933, as amended (the "Securities Act"), I hereby consent, pursuant to Rule 438 of the Securities Act, to being named as a nominee to the board of directors of SolarJuice Co., Ltd. in the Registration Statement and any and all amendments and supplements thereto. I also consent to the filing of this consent as an exhibit to such Registration Statement and any amendments thereto.

Dated: January 18, 2023

/s/ Yun Fei

Yun Fei