# EDGAR Filing Document

**Accession Number:** 0001782941
**File Stem:** 0001410578-25-001918
**Filing Date:** 2025-8
**Character Count:** 188881
**Document Hash:** 9beee98a744934ee8bcd5c0e18206de3
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001410578-25-001918.hdr.sgml**: 20250829

**ACCESSION NUMBER**: 0001410578-25-001918

**CONFORMED SUBMISSION TYPE**: 6-K/A

**PUBLIC DOCUMENT COUNT**: 101

**CONFORMED PERIOD OF REPORT**: 20250430

**FILED AS OF DATE**: 20250829

**DATE AS OF CHANGE**: 20250829

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** TIAN RUIXIANG HOLDINGS LTD
- **CENTRAL INDEX KEY:** 0001782941
- **STANDARD INDUSTRIAL CLASSIFICATION:** INSURANCE AGENTS BROKERS & SERVICES [6411]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 000000000
- **STATE OF INCORPORATION:** E9
- **FISCAL YEAR END:** 1031

**FILING VALUES:**
- **FORM TYPE:** 6-K/A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-39925
- **FILM NUMBER:** 251280996

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 21A JINGYUAN ART CENTER, 3 GUANGQU ROAD,
- **STREET 2:** CHAOYANG DISTRICT,
- **CITY:** BEIJING
- **PROVINCE COUNTRY:** F4
- **BUSINESS PHONE:** 01087529409

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 21A JINGYUAN ART CENTER, 3 GUANGQU ROAD,
- **STREET 2:** CHAOYANG DISTRICT,
- **CITY:** BEIJING
- **PROVINCE COUNTRY:** F4

?xml version='1.0' encoding='ASCII'? TIAN RUIXIANG Holdings Ltd_2025-04-30

------

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**Amendment No. 1**

**To**

**FORM** **6-K**

**REPORT OF FOREIGN PRIVATE ISSUER**

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

**UNDER THE SECURITIES EXCHANGE ACT OF 1934**

**For the month of August 2025**

**Commission File Number: 001-39925**

**TIAN RUIXIANG Holdings Ltd**<br>

---

| |
|:---|
| &nbsp;&nbsp;**Room 918, Jingding Building,**<br>**Xicheng District, District, Beijing,**<br>**Xicheng District, District, Beijing, People's Republic of China** |
| &nbsp;&nbsp;(Address of principal executive offices)  |

---

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

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

------

**EXPLANATORY NOTE**

This Amendment No.1 to Form 6-K of TIAN RUIXIANG Holdings Ltd., a company incorporated under the laws of the Cayman Islands (the "**Company**"), amends (1) the Form 6-K of the Company furnished with the Securities and Exchange Commission (the "**SEC**") on June 30, 2025 (the "**6-K re UCare Acquisition**"), and (2) the Form 6-K of the Company funished with the SEC on August 22, 2025 (the "**6-K re Semiannual Report** ").

**INFORMATION CONTAINED IN THIS FORM 6-K REPORT**

**Amendment re UCare Acquisition** 

*This Amendment No. 1 to the 6-K amends the 6-K re UCare acquisition to include the following information and exhibits*

***Financial Statements in Connection with the UCare Acquisition***

On June 30, 2025, TIAN RUIXIANG Holdings Ltd, an exempted company with limited liability incorporated under the laws of the Cayman Islands (the **"Company"** or "**TRX**"), completed its previously announced acquisition of Ucare Inc., an exempted company incorporated under the laws of the Cayman Islands **(**the **"Target" or "Ucare"),** pursuant to the share exchange agreement dated as of May 30, 2025, by and among the company, VitaCare Limited, a business company incorporated under the laws of the British Virgin Islands, entered into a with all shareholders of Ucare, and Mr. Wei Zhu serving as seller representative (the **"Acquisition").**

The Target constitutes a "significant business" of which separate target financial statements and related pro forma financial statements of the Target are required under Rule 3-05 and Article 11 of Regulation S-X.

This Amendment No. 1 to Form 6-K includes the following financial statements: (1) the audited financial statements of the Target as of and for the years ended October 31, 2023 and 2024, the notes related thereto, and the Report of Independent Registered Public Accounting Firm, Enrome LLP, dated May 30, 2025, (2) the unaudited condensed financial statements of the Target as of April 30, 2025 and October 31, 2024 and for the six months ended April 30, 2024 and 2025, and the notes related thereto (3) the unaudited proforma condensed combined financial information of the Company and the Target as of and for the year ended October 31, 2024, and for the six months ended April 30, 2025, which are filed as Exhibit 99.1, 99.2 and 99.3, respectively, and incorporated herein by reference.

The unaudited pro forma condensed combined income statement has been prepared for illustrative purposes only and does not purport to represent the actual results of operations of the Company. It is based on available measures and certain assumptions and is not necessarily indicative of the results that would have been achieved had the Acquisition occurred on the date indicated. In addition, the unaudited pro forma condensed combined income statement does not purport to project the future operating results of the Company. Future results may vary significantly from the results reflected because of various factors.

The foregoing description is qualified in its entirety by reference to the full text of the agreements filed as Exhibits 2.1, 10.1 and 10.2 to the Company's Form 6-K dated May 30, 2025 and are incorporated in this Report by reference.

**Amendment to the 6-K re Semiannual Report**

*This Amendmento No. 1 to the 6-K amends the 6-K re Semiannual Report to add the following section immediately below and the reference to "this Report on Form 6-K" contained in the section immediately below refers to the Form 6-K re Semiannual Report and the "exhibits hereto" refers to the exhibits to the Form 6-K re Semiannual Report.* 

***Incorporation by Reference***

This Report on Form 6-K and the exhibits hereto, including any amendment and report filed for the purpose of updating such document, are incorporated by reference into the Company's Registration Statement on Form F-3 originally filed on January 20, 2023 (File No. 23542014), as amended, and Form S-8 (File No. 231108961), Form S-8 filed on December 3, 2021 (File No. 211470458), as amended by Post Effective Amendment No. 1 to Form S-8 filed on April 18, 2022 (File No. 22832364), in each case from the date on which this Report on Form 6-K is furnished to the extent not superseded by information subsequently filed or furnished (to the extent we expressly state that we incorporate such furnished information by reference) by the Company under the Securities Act of 1933, as amended (the "Securities Act") or the Securities Exchange Act of 1934, as amended (the "Exchange Act").

**INCORPORATION BY REFERENCE**

This Report on Form 6-K and the exhibits hereto, including any amendment and report filed for the purpose of updating such document, are hereby incorporated by reference into the registrant's Registration Statement on Form F-3 originally filed on January 20, 2023 (File No. 23542014), as amended, and Form S-8 (File No. 231108961), Form S-8 filed on December 3, 2021 (File No. 211470458), as amended by Post Effective Amendment No. 1 to Form S-8 filed on April 18, 2022 (File No. 22832364), in each case to the extent not superseded by information subsequently filed or furnished (to the extent we expressly state that we incorporate such furnished information by reference) by the Company under the Securities Act of 1933, as amended (the "Securities Act") or the Securities Exchange Act of 1934, as amended (the "Exchange Act").

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | [Audited financial statements of Ucare Inc. as of and for the years ended October 31, 2023 and 2024, the notes related thereto, and the Reprot of Independent Registered Public Accounting Firm, Enrome LLP, dated May 30, 2025.](tirx-20250630xex99d1.htm) |
| 99.2 | [Unaudited condensed financial statements of Ucare Inc. as of April 30, 2025 and October 31, 2024 and for the six months ended April 30, 2024 and 2025, and the notes related thereto](tirx-20250630xex99d2.htm) |
| 99.3 | [Unaudited pro forma condensed combined financial information of the Company and Ucare Inc. as of and for the year ended October 31, 2024, and for the six months ended April 30, 2025.](tirx-20250630xex99d3.htm) |
| 101 | Interactive Data Files (formatted as Inline XBRL) |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

---

**SIGNATURES**

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

---

| | | |
|:---|:---|:---|
|  | **TIAN RUIXIANG Holdings Ltd** | **TIAN RUIXIANG Holdings Ltd** |
| Date: August 29, 2025 | By: | /s/Baohai Xu |
|  | Name: | Baohai Xu |
|  | Title: | Chief Executive Officer |

---

## Exhibit 99.1

?xml version='1.0' encoding='ASCII'? TIAN RUIXIANG Holdings Ltd_2025-04-30

**Exhibit 99.1**

![Graphic](tirx-20250630xex99d1001.jpg)

#### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of

Ucare Inc

#### Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Ucare Inc and its subsidiaries (the "Company") as of October 31, 2024 and 2023, and the related consolidated statements of operations and comprehensive income/(loss), changes in shareholders' deficits, and cash flows for each of the years ended October 31, 2024 and 2023 and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of October 31, 2024 and 2023, and the results of its operations and its cash flows for each of the years ended October 31, 2024 and 2023, in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP")

#### Emphasis of Matter — 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 to the consolidated financial statements as of October 31, 2024, the Company had a working capital deficit and shareholders' deficit was approximately $205,000 and $15,615,000, as of October 31, 2024, respectively. The Company had incurred accumulated deficit and generated negative cash flow from operating activities of approximately $46,750,000 and $1,525,000 for the year ended October 31, 2024, respectively. These conditions raised 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 to the consolidated financial statements. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our opinion is not modified with respect to this matter.

#### Basis for Opinion
These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated 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 U.S. 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. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated 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.

![Graphic](tirx-20250630xex99d1001.jpg)

Our audits included performing procedures to assess the risks of material misstatement of the consolidated 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 consolidated 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 consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

![Graphic](tirx-20250630xex99d1003.jpg)

/s/ Enrome LLP

We have served as the Company's auditor since 2024

Singapore

May 30, 2025

#### UCARE INC.

#### CONSOLIDATED BALANCE SHEETS

---

| | | |
|:---|:---|:---|
|  | **As of October 31,** | **As of October 31,** |
|  | **2024** | **2023** |
| **ASSETS** |  |  |
| Cash and cash equivalents | $267369 | $9231 |
| Restricted cash |  | 4100 |
| Accounts receivable, net | 4594897 | 3952655 |
| Due from related party | 190382 | 188777 |
| Prepaid assets and other receivable | 964951 | 867266 |
| Other current assets | 162478 | 157948 |
| &nbsp;&nbsp;Total Current Assets | 6180077 | 5179977 |
| Fixed assets, net | 66963 | 112481 |
| Deferred tax assets | 934464 | 1003893 |
| &nbsp;&nbsp;Total Non-current Assets | 1001427 | 1116374 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Assets** | $7181504 | $6296351 |
| **LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY** |  |  |
| Accounts payable | $1039051 | $1213298 |
| Accrued liabilities and other payables | 1538398 | 1532305 |
| Salary payable | 1451471 | 2496202 |
| Taxes payable | 263494 | 288342 |
| Due to related parties | 207171 | 201952 |
| Contract liabilities | 1464476 | 1881864 |
| Short term loans | 421479 | 642375 |
| &nbsp;&nbsp;Total Current Liabilities | 6385540 | 8256338 |
| Long term loans | 3519805 | 1332586 |
| &nbsp;&nbsp;Total Non-current Liabilities | 3519805 | 1332586 |
| **Total Liabilities** | 9905345 | 9588924 |
| **Commitments and contingencies** |  |  |
| **Mezzanine Equity:** |  |  |
| Series A-1 preferred shares ($0.0001 par value, 1,476,741 shares authorized; 1,476,741 shares issued and outstanding at October 31, 2024, and 2023) | 1696586 | 1395763 |
| Series A-2 preferred shares ($0.0001 par value, 601,884 shares authorized; 601,884 shares issued and outstanding at October 31, 2024, and 2023) | 848279 | 697868 |
| Series B-1 preferred shares ($0.0001 par value, 2,054,487 shares authorized; 2,054,487 shares issued and outstanding at October 31, 2024, and 2023) | 2434918 | 1803192 |
| Series B-2 preferred shares ($0.0001 par value, 3,668,728 shares authorized; 3,668,728 shares issued and outstanding at October 31, 2024, and 2023) | 5046942 | 3542833 |
| Series B+ preferred shares ($0.0001 par value, 1,975,544 shares authorized; 1,975,544 shares issued and outstanding at October 31, 2024, and 2023) | 2864849 | 1649945 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total mezzanine equity** | 12891574 | 9089601 |
| **Shareholders' Deficits:** |  |  |
| Ordinary shares ($0.0001 par value, 490,222,616 shares authorized; 10,000,000 shares issued and outstanding at October 31, 2024, and 2023) | 1000 | 1000 |
| Additional paid-in capital | 31837949 | 35574089 |
| Subscription receivable | (1000) | (1000) |
| Accumulated deficits | (46750013) | (47367045) |
| Accumulated other comprehensive loss | (703351) | (589218) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total shareholders' deficits** | (15615415) | (12382174) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Mezzanine Equity and Shareholders' Deficits** | (2723841) | (3292573) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Liabilities, Mezzanine Equity and Shareholders' Deficits** | $7181504 | $6296351 |

---

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

#### UCARE INC.

#### CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS)

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended October 31,** | **For the Years Ended October 31,** |
|  | **2024** | **2023** |
| **Revenues** | $5392700 | $7261748 |
| **Cost of Revenues** | 559311 | 1234289 |
| Gross Profit | 4833389 | 6027459 |
| **Operating Expenses** |  |  |
| &nbsp;&nbsp;Selling and marketing expenses | 1990708 | 4104101 |
| &nbsp;&nbsp;General and administrative expenses | 763505 | 2885470 |
| &nbsp;&nbsp;Research and development expenses | 1265086 | 3239253 |
| Total Operating Expenses | 4019299 | 10228824 |
| **Income (Loss) from Operations** | 814090 | (4201365) |
| **Other Income (Expenses)** |  |  |
| &nbsp;&nbsp;Interest expense | (79601) | (109023) |
| &nbsp;&nbsp;Other (expense) income | (20908) | 20145 |
| Total Other Expense, net | (100509) | (88878) |
| **Income (Loss) before Income Taxes** | 713581 | (4290243) |
| **Income tax expense/(benefit)** | 96549 | (135761) |
| **Net Income (Loss)** | $617032 | $(4154482) |
| **Net Income (Loss) per Share** |  |  |
| Basic | $0.12 | $(0.41) |
| Diluted | $0.02 | $(0.51) |
| **Weighted Average Shares Outstanding** |  |  |
| Basic | 10000000 | 10000000 |
| Diluted | 11710456 | 10000000 |
| **Comprehensive Income (Loss)** |  |  |
| Net Income (Loss) | $617032 | $(4154482) |
| Other Comprehensive Loss |  |  |
| &nbsp;&nbsp;Unrealized foreign currency translation loss | (114133) | (17780) |
| **Comprehensive Income (Loss)** | $502899 | $(4172262) |

---

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

#### UCARE INC.

#### CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICITS

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Preferred Shares** | **Preferred Shares** | **Ordinary Shares** | **Ordinary Shares** | | | | | |
|  | **Number of**<br>**Shares** | <br>**Amount** | **Number of**<br>**Shares** | <br>**Amount** | <br>**Additional**<br>**Paid-in**<br>**Capital** | <br>**Stock**<br>**Subscription**<br>**Receivable** | <br>**Accumulated**<br>**Deficit** | <br>**Accumulated**<br>**Other**<br>**Comprehensive**<br>**Loss** | **Total**<br>**Mezzanine**<br>**Equity**<br>**and Shareholders'**<br>**Deficits** |
| **Balance, November 1, 2022** | **9777384** | $**5298017** | **10000000** | $**1000** | $**39240351** | $**(1000)** | $**(43212563)** | $**(571438)** | $**754367** |
| Accretion on preferred shares to redemption value |  | 3791584 |  |  | (3791584) |  |  |  |  |
| Stock-based compensation |  |  |  |  | 125322 |  |  |  | 125322 |
| Net loss |  |  |  |  |  |  | (4154482) |  | (4154482) |
| Foreign currency translation adjustment |  |  |  |  |  |  |  | (17780) | (17780) |
| **Balance, October 31, 2023** | **10000000** | **9089601** | **10000000** | **1000** | **35574089** | **(1000)** | **(47367045)** | **(589218)** | **(3292573)** |
| Accretion on preferred shares to redemption value |  | 3801973 |  |  | (3801973) |  |  |  |  |
| Stock-based compensation |  |  |  |  | 65833 |  |  |  | 65833 |
| Net income |  |  |  |  |  |  | 617032 |  | 617032 |
| Foreign currency translation adjustment |  |  |  |  |  |  |  | (114133) | (114133) |
| **Balance, October 31, 2024** | **10000000** | $**12891574** | **10000000** | $**1000** | $**31837949** | $**(1000)** | $**(46750013)** | $**(703351)** | $**(2723841)** |

---

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

#### UCARE INC.
**CONSOLIDATED STATEMENTS OF CASH FLOWS**

#### (IN U.S. DOLLARS)

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended October 31,** | **For the Years Ended October 31,** |
|  | **2024** | **2023** |
| **Cash Flows from Operating Activities:** |  |  |
| Net income/(loss) | $617032 | $(4154482) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |  |
| &nbsp;&nbsp;Depreciation expense | 4731 | 5485 |
| &nbsp;&nbsp;Stock-based compensation | 65832 | 125322 |
| &nbsp;&nbsp;Provision of allowance for doubtful accounts | 221262 | 157693 |
| &nbsp;&nbsp;Loss (gain) on disposal of fixed assets | 20908 | (18296) |
| &nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (863504) | (2208150) |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid assets and other receivable | (100895) | (366964) |
| &nbsp;&nbsp;&nbsp;&nbsp;Due from related parties | 1605 | (7492) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | 4530 | (129296) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax assets | 69429 | (129657) |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxes payable | (24848) | 274787 |
| &nbsp;&nbsp;&nbsp;&nbsp;Salary payable | (1044731) | 1757045 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities and other payables | (497059) | 1365683 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net Cash Used in Operating Activities** | (1525708) | (3328322) |
| **Cash Flows from Investing Activities** |  |  |
| Purchase of property and equipment |  | (1681) |
| Proceeds from sale of short-term investments |  | 410689 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net Cash Provided by Investing Activities** |  | 409008 |
| **Cash Flows from Financing Activity** |  |  |
| Net increase (decrease) in long-term borrowings | 1966323 | (550015) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net Cash Provided by (Used in) Financing Activity** | 1966323 | (550015) |
| **Effect of Exchange Rate Changes on Cash** | (186577) | 213366 |
| **Net Change in Cash** | 254038 | (3255963) |
| Cash - beginning of year | 13331 | 3269294 |
| Cash - end of year | $267369 | $13331 |
| **Supplemental Disclosure of Cash Flow Information** |  |  |
| Cash paid for: |  |  |
| Interest | $81089 | $123585 |
| Income taxes | $— | $— |

---

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

#### UCARE INC.

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### Note 1 — Organization and Principal Activities
Ucare Inc. ("Ucare") is a holding company incorporated in the Cayman Islands on August 28, 2018. Ucare, through two variable interest entities ("VIE"), develops innovative healthcare solutions that enables providers, payers, and institutions to reduce fraud, abuse, waste, and administrative costs in the People's Republic of China ("PRC" or "China"). Ucare and its subsidiaries (collectively referred to as the "Company") specializes in the in-depth exploration of healthcare big data and Artificial Intelligence ("AI") applications, continuously refines disease models by integrating real-world data, the latest medical guidelines, and real-time intelligence. Ucare's vision is to ease the burden on patients, expand coverage, and ultimately improve access to healthcare for everyone.

On September 12, 2018, the Company formed its wholly-owned subsidiary, Ucare HK Limited ("Ucare HK") in Hong Kong. On June 12, 2019, Ucare HK formed a Wholly Foreign-Owned Enterprise, Beijing Youkai Information Technology Co., Ltd.("WOFE") in PRC.

WOFE entered into a series of contractual arrangements with Beijing Yading Information Technology Co., Ltd. ("Beijing Yading") and Tianjin Aideng Technology Co., Ltd. ("Tianjin Aideng") which were effective in 2021, and its equity holders through WFOE to obtain control and became the primary beneficiary of Beijing Yading and Tianjin Aideng.

Details of the Company's subsidiaries as of October 31, 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| <br>**Company name** | **Date of**<br>**Incorporation**<br>**or**<br>**acquisition** | **Place of**<br>**incorporation**<br>**or**<br>**establishment** | <br>**Ownership**<br>**interest** |
| **Subsidiaries:** |  |  |  |
| Ucare HK | September 12, 2018 | Hong Kong | 100% owned by Ucare |
| WOFE | June 12, 2019 | China | 100% owned by Ucare HK |
| Chengdu Youkai Information Technology Co., Ltd.("Chengdu Youkai") | September 8, 2021 | China | 100% owned by WOFE |
| Chongqing Lizhiyou Information Technology Co., Ltd.("Lizhiyou") | September 10, 2021 | China | 100% owned by WOFE |
| **VIE:** |  |  |  |
| Beijing Yading | August 17, 2018 | China | 100% |
| Tianjin Aideng | April 7, 2016 | China | 100% |
| Shanghai Muji Network Technology Co., Ltd. ("Muji") | June 29, 2015 | China | 100% owned by Beijing Yading |
| Bozhou Yading Information Technology Co., Ltd. ("Bozhou Yading") | January 17, 2023 | China | 100% owned by Beijing Yading |
| Bozhou Multi-domain Information Technology Co., Ltd. ("Bozhou") | August 3, 2022 | China | 100% owned by Beijing Yading |

---

As all the above-mentioned companies presented were under common control, the series of contractual arrangements between the Company and Beijing Yading and Tianjin Aideng in 2021 and 2022 constituted a reorganization under common control and were required to be retrospectively applied to the consolidated financial statements at their historical amounts. The consolidated financial statements have been prepared as if the existing corporate structure had been in existence throughout all periods. This includes a retrospective presentation for all equity related disclosures, including share and per share, which have been revised to reflect the effects of the reorganization.

#### Note 2 — Significant Accounting Policies

#### Basis of Presentation
The accompanying consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC").

#### Principles of Consolidation
The consolidated financial statements include the accounts of the Company and include the assets, liabilities, revenues and expenses of wholly owned subsidiaries, VIE and subsidiaries of the VIE over which the Company exercises control and, when applicable, entity for which the Company has a controlling financial interest or is the primary beneficiary. All inter-company accounts and transactions have been eliminated in consolidation.

Subsidiary is entity in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors.

An entity is considered to be a VIE if the entity's equity holders do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties.

The Company consolidates entities for which the Company is the primary beneficiary if the entity's other equity holders do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties.

In determining whether the Company or its subsidiaries is the primary beneficiary of a VIE, the Company considered whether it has the power to direct activities that are significant to the VIE's economic performance, including the power to appoint senior management, right to direct company strategy, power to approve capital expenditure budgets, and power to establish and manage ordinary business operation procedures.

Upon loss of control, the Company derecognizes the assets and liabilities of the subsidiary, any non-controlling interests and the other components of equity related to the subsidiary. Any surplus or deficit arising on the loss of control is recognized in profit or loss. If the Company retains any interest in the previous subsidiary, then such interest is measured at fair value at the date that control is lost. Subsequently it is accounted for as an equity-accounted investee or as cost method investment depending on the level of influence retained.

#### Translation of Foreign Currencies
The functional currency is the U.S. dollar for the Company's Cayman Island operations, Hong Kong dollars for Hong Kong entity, and the Renminbi for all other Company operations. The Company's reporting currency is the U.S. dollar. Assets and liabilities denominated in foreign currencies are translated at year-end exchange rates, income statement accounts are translated at average rates of exchange for the year and equity is translated at historical exchange rates. Any translation gains or losses are recorded in other comprehensive income (loss). Gains or losses resulting from foreign currency transactions are included in net income (loss).

#### VIE Agreements
Due to PRC legal restrictions or foreign ownership in certain sectors, neither the Company or the Company's subsidiaries own any equity interest in Beijing Yading and Tianjin Aideng (together "VIE"). Instead, WFOE, VIE and VIE's shareholders entered into a series of contractual arrangements ("VIE Agreements") in 2021 and 2022. The VIE agreements are designed to provide WFOE with the power, rights and obligations equivalent in all material respects to those it would possess as the sole equity holder of VIE, including absolute control rights and the rights to the assets, property and net income of VIE. Accordingly, the Company is considered the primary beneficiary of VIE and has consolidated the VIE and the VIE's subsidiaries' assets, liabilities, results of operations, and cash flows in the accompanying consolidated financial statements.

Each of the VIE Agreements is described in detail below:

Contracts that enable the Company to receive substantially all of the economic benefits from the VIE

*Exclusive Business Cooperation Agreement*

Pursuant to the Exclusive Business Cooperation Agreement between VIE and WFOE, WFOE provides VIE with technical support, consulting services and other management services relating to its day-to-day business operations and management, on an exclusive basis. The Exclusive Business Cooperation Agreement has come into effect as of July 28, 2021. For services rendered to VIE by WFOE under this agreement, WFOE is entitled to collect a service fee that shall be paid per month of 100% of VIE's monthly profit. The term of the Exclusive Business Cooperation Agreement is ten years unless it is terminated by WFOE with 30-day prior notice.

Contracts that give the Company effective control of the VIE

*Equity Interest Pledge Agreement*

WFOE, VIE and VIE's shareholders entered into an Equity Interest Pledge Agreement, pursuant to which VIE's shareholders pledged all of their equity interest in VIE to WFOE in order to guarantee the performance of VIE's obligations under the Exclusive Business Cooperation Agreement as described above. The Equity Interest Pledge Agreement has come into effect as of June 21, 2022. During the term of the pledge, WFOE is entitled to receive any dividends declared on the pledged equity interest of VIE. The Equity Interest Pledge Agreement ends when all contractual obligations under the Exclusive Business Cooperation Agreement have been fully performed.

*Exclusive Equity Interests Purchase Agreement*

Under the Exclusive Equity Interests Purchase Agreement, the VIE's Shareholders granted WFOE (or its designee) an exclusive option to purchase, to the extent permitted under PRC law, part or all of their equity interests in VIE. The option price is equal to RMB 1 or the lowest price permissible under the applicable PRC laws and regulations (whichever is lower). The Exclusive Equity Interests Purchase Agreement remains effective for a term of ten years and may be renewed at WFOE's election.

*Power of Attorney*

Each shareholder of the VIE has executed an irrevocable power of attorney in favor of WFOE. Pursuant to this power of attorney, the WFOE has full power and authority to exercise all of such shareholder's rights with respect to his equity interest in the VIE. The power of attorney will remain in force for so long as the shareholder remains a shareholder of VIE.

Based on the foregoing VIE Agreements, WFOE has effective control of VIE which enables WFOE to receive all of the expected residual returns and absorb the expected losses of the VIE and its subsidiaries. Management therefore concludes that the Company, through the above contractual arrangements, has the power to direct the activities that most significantly impact the VIE's economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the VIE, and therefore the Company is the ultimate primary beneficiary of the VIE. Consequently, the Company consolidates the accounts of VIE and its subsidiaries for the periods presented herein, in accordance with Accounting Standards Codification ("ASC") 810-10, Consolidation.

The following consolidated financial information of the VIE and its subsidiaries as a whole as of October 31, 2024 and 2023 and for the years ended October 31, 2024, and 2023 was included in the accompanying consolidated financial statements of the Company. Intercompany transactions between the VIE and VIE's subsidiaries are eliminated in the financial information presented below:

---

| | | |
|:---|:---|:---|
|  | **As of October 31,** | **As of October 31,** |
|  | **2024** | **2023** |
| Cash and cash equivalents | $231578 | $4517 |
| Restricted cash |  | 4100 |
| Accounts receivable, net | 4552859 | 3952652 |
| Due from related parties | 190382 | 188777 |
| Prepaid assets and other receivable | 793072 | 686116 |
| Other current assets | 2081 | 2025 |
| Fixed assets, net | 54028 | 64917 |
| Deferred tax assets | 934464 | 1003893 |
| Total Assets | $6758464 | $5906997 |
| Accounts payable | $1039051 | $1213298 |
| Accrued liabilities and other payables | 596835 | 731576 |
| Salary payable | 630954 | 1177884 |
| Taxes payable | 261125 | 282361 |
| Due to related parties | 207171 | 201952 |
| Contract liabilities | 1464476 | 1881678 |
| Short term loans | 421479 | 369024 |
| Long term loans | 1369805 | 1332586 |
| Total Liabilities | $5990896 | $7190359 |

---

---

| | | |
|:---|:---|:---|
|  | **Years Ended October 31,** | **Years Ended October 31,** |
|  | **2024** | **2023** |
| Revenues | $5353063 | $7261751 |
| Income (loss) from operations | $2001556 | $(350859) |
| Net income (loss) | $1804490 | $(301282) |

---

---

| | | |
|:---|:---|:---|
|  | **Years Ended October 31,** | **Years Ended October 31,** |
|  | **2024** | **2023** |
| Net Cash (Used in) Provided by Operating Activities | (18971) | (1002752) |
| Net Cash Used in Investing Activities |  | (1681) |
| Net Cash (Used in) Provided by Financing Activities | 89674 | (355637) |

---

#### Risks in relation to the VIE structure
As all of the VIE Agreements are governed by PRC law and provide for the resolution of disputes through arbitration in the PRC, they would be interpreted in accordance with PRC law and any disputes would be resolved in accordance with PRC legal procedures. The legal environment in the PRC may not be as developed as in other jurisdictions. As a result, uncertainties in the PRC legal system could further limit the Company's ability to enforce these VIE Agreements. Furthermore, these contracts may not be enforceable in China if PRC government authorities or courts take a view that such contracts contravene PRC laws and regulations or are otherwise not enforceable for public policy reasons. In the event the Company is unable to enforce these VIE Agreements, it may not be able to exert effective control over Beijing Yadin and Tianjin Aideng and its ability to conduct its business may be materially and adversely affected.

All of the Company's main current operations are conducted through Beijing Yadin and Tianjin Aideng and its subsidiaries. Current regulations in China permit Beijing Yadin and Tianjin Aideng to pay dividends to the Company only out of its accumulated distributable profits, if any, determined in accordance with its article of association and PRC accounting standards and regulations. The ability of Beijing Yadin and Tianjin Aideng to make dividends and other payments to the Company may be restricted by factors including changes in applicable foreign exchange and other laws and regulations.

#### Current Expected Credit Losses
On November 1, 2022, the Company adopted FASB ASC Topic 326 – "Financial Instruments – Credit Losses" ("ASC Topic 326") for financial assets at amortized cost including accounts receivable and other receivables. This guidance replaced the "incurred loss" impairment methodology with an approach based on "expected losses" to estimate credit losses on certain types of financial instruments and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The guidance requires financial assets to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the cost of the financial asset to present the net carrying value at the amount expected to be collected on the financial asset.

#### Use of Estimates
The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Changes in these estimates and assumptions may have a material impact on the consolidated financial statements and accompanying notes. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates.

Significant estimates during the years ended October 31, 2024 and 2023 include the assumptions used in assessing impairment of long-term assets, the valuation of deferred tax assets and associated valuation allowances, and the valuation of stock-based compensation.

#### Cash and Cash Equivalents
Cash and cash equivalents consist of deposits with banks and all highly liquid investments, with maturities of three months or less, that are not segregated and deposited for regulatory purposes.

At October 31, 2024 and 2023, the Company's cash balances by geographic area were as follows:

---

| | | |
|:---|:---|:---|
| | **October 31,** | **October 31,** |
| <br>**Country:** | **2024** | **2023** |
| China | $237707 | $10263 |
| United States | 29662 | 3068 |
| Total cash and restricted cash | $267369 | $13331 |

---

The Company maintains its cash in bank deposit accounts which at times may exceed insured limits. The Company has two bank accounts with U.S. bank subject to FDIC insurance. The Company has not experienced any losses in such accounts. Management believes that the Company is not exposed to any significant credit risk on cash and cash equivalents.

Cash in China may not be freely transferable out of the PRC because of exchange control regulations or other reasons.

#### Accounts Receivable and Allowance for Doubtful Accounts
Accounts receivable are presented net of an allowance for doubtful accounts. The Company maintains allowance for doubtful accounts for estimated losses. The Company reviews its accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer's historical payment history, its current credit-worthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. As of October 31, 2024 and 2023, the Company recorded $566,572 and $345,311 bad debt expenses, respectively. The amount was included in the line item "General and administrative" in the consolidated income statements.

#### Other Current Asset
Other current asset consists of input value added taxes ("VAT") credits, which represents the VAT amount that remains unused due to the discrepancy between input and output VAT over a specific period. When output VAT is lower than input VAT, the unused input VAT can be carried forward for deduction in future periods. This unused portion is referred to as carryforward VAT credits. As of October 31, 2024, and 2023, the balance of other current asset was $162,478 and $157,948, respectively.

#### Fixed Assets, net
Fix assets are stated at cost less accumulated depreciation, and depreciated on a straight-line basis over the estimated useful lives of the assets. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income/loss in the year of disposition. Estimated useful lives are as follows:

---

| | |
|:---|:---|
|  | Estimated Useful Life |
| Office equipment | 3 years |
| Software | 10 years |

---

#### Impairment of Long-lived Assets
Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount may not be fully recoverable or that the useful life is shorter than the Company had originally estimated. When these events occur, the Company evaluates the impairment by comparing carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Company recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. The Company did not record any impairment charge for the years ended October 31, 2024 and 2023, as there was no impairment indicator noted.

#### Contract liabilities
Contract liabilities on uncompleted contracts represent the amounts of cash collected from customers, billings to clients on contracts in advance of work performed and revenue recognized. The majority of these amounts are expected to be earned within twelve months and are classified as current liabilities.

#### Concentration of Credit Risk and Uncertainties
Currently, the Company's operations are carried out in China. Accordingly, the Company's business, financial condition and results of operations may be influenced by the political, economic and legal environment in China, and by the general state of China's economy. The Company's operations in China are subject to specific considerations and significant risks not typically associated with companies in North America. The Company's results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things.

Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of trade accounts receivable. A portion of the Company's sales are credit sales to customers whose ability to pay are dependent upon the prevailing industry economics. The Company also performs ongoing credit evaluations of its customers to help further reduce credit risk.

No customer accounted for 10% or more of the Company's revenue during the years ended October 31, 2024 and 2023. No supplier accounted for 10% or more of the Company's purchase during the years ended October 31, 2024 and 2023

#### Revenue Recognition
The Company recognizes revenue under Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("ASC 606"). The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle:

● Step 1: Identify the contract with the customer

● Step 2: Identify the performance obligations in the contract

● Step 3: Determine the transaction price

● Step 4: Allocate the transaction price to the performance obligations in the contract

● Step 5: Recognize revenue when the company satisfies a performance obligation

In order to identify the performance obligations in a contract with a customer, a company must assess the promised goods or services in the contract and identify each promised goods or service that is distinct. A performance obligation meets ASC 606's definition of a "distinct" goods or service (or bundle of goods or services) if both of the following criteria are met:

● The customer can benefit from the goods or service either on its own or together with other resources that are readily available to the customer (i.e., the goods or service is capable of being distinct).

● The entity's promise to transfer the goods or service to the customer is separately identifiable from other promises in the contract (i.e., the promise to transfer the goods or service is distinct within the context of the contract).

If a goods or service is not distinct, the goods or service is combined with other promised goods or services until a bundle of goods or services is identified that is distinct.

The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties (for example, some sales taxes). The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. Variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved.

The transaction price is allocated to each performance obligation on a relative standalone selling price basis. The transaction price allocated to each performance obligation is recognized when that performance obligation is satisfied, at a point in time or over time as appropriate.

*Types of revenue:*

SaaS services

The Company provide SaaS services to its customers with its flagship Software as a Service ("SaaS") platform. The platform integrates hospital data flows to provide efficient, secure, and streamlined operations. The platform supports seven core product areas, including medical record quality control, cost analysis, and decision-making, enabling precise hospital management and etc.. The Company primarily focuses on direct sales and establishing long-term partnerships with hospitals.

A contract is established between the Company and the customer, specifying the services to be performed and the payment terms. By signing the sales contract, customers agree to utilize the Hospital DRG/DIP Collaborative Management Platform and pay the specified consideration. To mitigate credit risk, the Company typically requires advance payments from customers. As of October 31, 2024 and 2023, the Company recorded contract liabilities of $1,464,476 and $1,881,864, respectively, which will be recognized as revenue upon performance/delivery of the services/products sold. The Company identifies a single performance obligation for the services provided, eliminating the need for transaction price allocation. The contract specifies a fixed amount as the annual service fee. Revenue from fixed-price contracts is recognized on a straight-line basis over the service period as the services are performed.

Software

The Company provides software for the Hospital DRG/DIP Collaborative Management Platform to its customers, designed to facilitate the management of internal hospital DRG/DIP medical insurance. Installation and operational training are conducted for customers before the software is accepted. The Company also offers customers data maintenance service ranging from 1 to 5 years.

A contract is established between the Company and the customer, outlining the terms governing the transfer of products and payment. By signing the sales contract, customers agree to purchase the software for use in the Hospital DRG/DIP Collaborative Management Platform and to pay the specified consideration. To mitigate credit risk, the Company typically requires advance payments from customers. Two performance obligations are identified – sales of the software and data maintenance services provided. The contract specifies a fixed amount for each performance obligation. Accordingly, revenue from software sales is recognized at point in time when the title and risk of loss transfer to the customer, delivery is deemed complete, and customer acceptance is confirmed. Revenue from data maintenance service is recognized on a straight-line basis over the service period.

Other

The interface fee refers to the charge for integrating with the internal system. Revenue is recognized at the point when the integration is successfully completed.

#### Disaggregation of Revenue
The following table sets forth the Company's revenue based on services for the periods indicated:

---

| | | |
|:---|:---|:---|
|  | **Years Ended October 31,** | **Years Ended October 31,** |
|  | **2024** | **2023** |
| SaaS services | $1970450 | $1930709 |
| Software | 3417039 | 5322428 |
| Other | 5211 | 8611 |
| Total revenue | $5392700 | $7261748 |

---

#### Cost of Revenue
Cost of revenue includes cost of hardware and devices, SaaS operational and maintenance expenses, and tax charges.

#### Selling and Marketing Expenses
All costs related to selling and marketing are expensed as incurred. For the years ended October 31, 2024 and 2023, selling and marketing costs amounted to $1,990,708 and $4,104,101, respectively. Advertising costs are expensed as incurred and included in the selling and marketing expenses. Advertising costs were nil- and $718,087 for the years ended October 31, 2024 and 2023, respectively.

#### Research and Development Expenses
Research and development expenses are expensed in the period when incurred. These costs primarily consist of designing, coding, project management, and other IT services related to developing and enhancing the project.

#### Stock-based Compensation
The Company follows the provisions of Financial Accounting Standards Board ("FASB") ASC 718, "Compensation — Stock Compensation," which establishes accounting standards for non-employee and employee stock-based awards. Under the provisions of FASB ASC 718, the fair value of stock issued is used to measure the fair value of services received by the Company. The fair value of the equity instrument is calculated and then recognized as compensation expense over the requisite performance period. For employee stock-based awards, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense with graded vesting on a straight–line basis, as specified in the stock grant, over the requisite service period for the award.

#### Commitments and Contingencies
In the normal course of business, the Company is subject to contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters. Liabilities for such contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.

#### Income Taxes
The Company accounts for income taxes using the asset/liability method prescribed by ASC 740, "Income Taxes." Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date.

The Company follows the accounting guidance for uncertainty in income taxes using the provisions of ASC 740 "Income Taxes". Using that guidance, tax positions initially need to be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. As of October 31, 2024 and 2023, the Company had no significant uncertain tax positions that qualify for either recognition or disclosure in the financial statements. The Company recognizes interest and penalties related to significant uncertain income tax positions in other expense, if any. There were no such interest and penalties as of October 31, 2024 and 2023.

#### Value Added Tax
Revenues from SaaS service and other services is subject to a VAT of 6%. Software sales is subject to a VAT of 13%. The amount of VAT liability is determined by applying the applicable tax rate to the invoiced amount of services/products provided/sold. The Company reports revenue net of PRC's VAT for all the years presented on the consolidated statements of operations and comprehensive loss.

#### Fair Value of Financial Instruments and Fair Value Measurements
The Company adopted the guidance of ASC 820 for fair value measurements which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:

● Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.

● Level 2-Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data.

● Level 3-Inputs are unobservable inputs which reflect the reporting entity's own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information.

Financial instruments included in current assets and current liabilities are reported in the consolidated balance sheets at face value or cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. Assets and liabilities measured at fair value on a recurring basis.

#### Earnings per Share
ASC Topic 260 "Earnings per Share," requires presentation of both basic and diluted earnings per share ("EPS") with a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. Basic EPS excludes dilution. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue ordinary stock were exercised or converted into ordinary stock or resulted in the issuance of ordinary stock that then shared in the earnings of the entity.

Basic net loss per ordinary share is computed by dividing net loss available to ordinary shareholders by the weighted average number of shares of ordinary stock outstanding during the period. Diluted net loss per ordinary share is computed by dividing net loss by the weighted average number of shares of ordinary stock, ordinary stock equivalents and potentially dilutive securities outstanding during each period. For the years ended October 31, 2024 and 2023, potentially dilutive ordinary shares consisted of ordinary shares issuable upon the exercise of stock options and convertible preferred shares. Ordinary shares equivalents are not included in the calculation of diluted loss per ordinary share if their effect would be anti-dilutive. In a period in which the Company has a net loss, all potentially dilutive securities are excluded from the computation of diluted shares outstanding as they would have had an anti-dilutive impact.

The following table summarizes the securities that were excluded from the diluted per share calculation because the effect of including these potential shares was antidilutive:

---

| | | |
|:---|:---|:---|
|  | **Years Ended October 31,** | **Years Ended October 31,** |
|  | **2024** | **2023** |
| Stock options | 1,710,456 |  |

---

#### Comprehensive Income
Comprehensive income is comprised of net income (loss) and all changes to the statements of shareholders' equity (deficit), except those due to investments by shareholders and changes in paid-in capital. For the Company, comprehensive income for the years ended October 31, 2024 and 2023 consisted of net income and unrealized income (loss) from foreign currency translation adjustment.

#### Related Parties
A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party.

#### Segment Reporting
ASC 280 "Segment reporting" establishes standards for reporting information on operating segments in interim and annual financial statements. The Company uses "the management approach" in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company's chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company's reportable segments. The Company's chief operating decision maker is the Chief Executive Officer ("CEO") and chairman of the Company, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. The Company has determined that it has one reportable business segment. During the years ended October 31, 2024 and 2023, all of the Company's customers are in the PRC and all revenue is derived from the provision of SaaS services and software.

#### Going Concern
These consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates, among other things, the realization of assets and the satisfaction of liabilities in the normal course of business.

As reflected in the accompanying consolidated financial statements, the Company's working capital deficit and shareholders' deficit was approximately $205,000 and $15,615,000, as of October 31, 2024, respectively. The Company had incurred accumulated deficit and generated negative cash flow from operating activities of approximately $46,750,000 and $1,525,000 for the year ended October 31, 2024, respectively.

These matters raise substantial doubt about the Company's ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company's ability to raise additional capital, implement its business plan, and generate significant revenues. There are no assurances that the Company will be successful in its efforts to generate significant revenues, maintain sufficient cash balance or report profitable operations or to continue as a going concern. The Company plans to raise capital through the sale of equity to implement its business plan. However, there is no assurance these plans will be realized and that any additional financings will be available to the Company on satisfactory terms and conditions, if any.

The accompanying consolidated financial statements do not include any adjustments related to the recoverability or classification of asset-carrying amounts or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern.

#### Recent Accounting Pronouncements
In November 2023, the FASB issued ASU No. 2023-07, *Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures* (ASU 2023-07), which requires an enhanced disclosure of significant segment expenses on an annual and interim basis. This guidance will be effective for the annual periods beginning the year ended December 31, 2024, and for interim periods beginning January 1, 2025. Early adoption is permitted. Upon adoption, the guidance should be applied retrospectively to all prior periods presented in the financial statements. The Company does not expect the adoption to have a material impact on the consolidated financial statements.

In December 2023, the FASB issued ASU 2023 - 09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This guidance is intended to enhance the transparency and decision - usefulness of income tax disclosures. The amendments in ASU 2023 - 09 address investor requests for enhanced income tax information primarily through changes to disclosure regarding rate reconciliation and income taxes paid both in the U.S. and in foreign jurisdictions. ASU 2023 - 09 is effective for fiscal years beginning after December 15, 2024 on a prospective basis, with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements disclosures.

In November 2024, the FASB issued ASU No. 2024-03, *Income Statement* – *Reporting Comprehensive Income* – *Expense Disaggregation Disclosures (Subtopic 220-40),* which requires disaggregated disclosure of income statement expenses for public business entities. The objective of ASU 2024-03 is to "address requests from investors for more detailed information about the types of expenses . . . in commonly presented expense captions (such as cost of sales, SG&A [selling, general, and administrative expenses], and research and development)." Investors advised the FASB that "disclosure of disaggregated information about expenses is critically important in understanding an entity's performance, assessing an entity's prospects for future cash flows, and comparing an entity's performance over time and with that of other entities." ASU 2024-03 adds ASC 220-40 to require a footnote disclosure about specific expenses by requiring public entities to disaggregate, in a tabular presentation, each relevant expense caption on the face of the income statement that includes any of the following natural expenses: (1) purchases of inventory, (2) employee compensation, (3) depreciation, (4) intangible asset amortization, and (5) depreciation, depletion, and amortization (DD&A) recognized as part of oil- and gas-producing activities or other types of depletion expenses. The tabular disclosure would also include certain other expenses, when applicable. The ASU does not change or remove existing expense disclosure requirements; however, it may affect where that information appears in the footnotes to the financial statements. ASU 2024-03 is effective for all public entities for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company does not expect the adoption to have a material impact on the consolidated financial statements.

In November 2024, the FASB issued ASU 2024-04, *Debt—Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments*. The ASU provides additional guidance on whether induced conversion or extinguishment accounting should be applied to certain settlements of convertible debt instruments that do not occur in accordance with the instruments' preexisting terms. The ASU requires entities to apply a preexisting contract approach. To qualify for induced conversion accounting under this approach, the inducement offer is required to preserve the form of consideration and result in an amount of consideration that is no less than that issuable pursuant to the preexisting conversion privileges. ASU 2024-04 clarifies how entities should assess the form and amount of consideration when applying this approach. In addition, the new ASU clarifies that induced conversion accounting can be applied to settlements of certain convertible debt instruments that are not currently convertible as long as the instrument contained a substantive conversion feature as of both its issuance date and the inducement offer acceptance date. The amendments in the ASU are effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company does not expect the adoption to have a material impact on the consolidated financial statements.

In January 2025, the FASB issued ASU 2025-01 Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40). The Board issued Update 2024-03 on November 4, 2024. Update 2024-03 states that the amendments are effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Following the issuance of Update 2024-03, the Board was asked to clarify the initial effective date for entities that do not have an annual reporting period that ends on December 31 (referred to as non-calendar year-end entities). Because of how the effective date guidance was written, a non-calendar year-end entity may have concluded that it would be required to initially adopt the disclosure requirements in Update 2024-03 in an interim reporting period, rather than in an annual reporting period. The Board's intent in the basis for conclusions of Update 2024-03 is clear that all public business entities should initially adopt the disclosure requirements in the first annual reporting period beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. However, the Board acknowledges that there was ambiguity between the intent in the basis for conclusions in Update 2024-03 and the transition guidance that was included in the Codification when Update 2024-03 was issued. We do not expect the adoption of this accounting standard to have an impact on our consolidated financial statements..

Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its consolidated financial condition, results of operations, cash flows or disclosures.

#### Note 3 – Accounts receivable, net
Accounts receivable, net consists of the following:

---

| | | |
|:---|:---|:---|
|  | **Years Ended October 31,** | **Years Ended October 31,** |
|  | **2024** | **2023** |
| Accounts receivable | $5161469 | $4297966 |
| Allowance for doubtful accounts | (566572) | (345311) |
| Total accounts receivable, net | $4594897 | $3952655 |

---

The Company has collected $1,111,018 of its accounts receivable subsequent to yearend to the date of this report.

Movements of allowance for doubtful accounts are as follows:

---

| | | |
|:---|:---|:---|
|  | **Years Ended October 31,** | **Years Ended October 31,** |
|  | **2024** | **2023** |
| Beginning balance | $345310 | $187618 |
| Addition | 221262 | 157693 |
| Ending balance | $566572 | $345311 |

---

#### Note 4 - Prepaid assets and other receivable
At October 31, 2024 and 2023, prepaid assets and other receivable consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **Years Ended October 31,** | **Years Ended October 31,** |
|  | **2024** | **2023** |
| Receivable from a third-party <sup>(1)</sup> | $846548 | $729536 |
| Deposits <sup>(2)</sup> | 85267 | 94937 |
| Others <sup>(3)</sup> | 33136 | 42793 |
|  | $964951 | $867266 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Consists of advances made to a third-party company to pay for operating expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Consists of rent deposits and deposit on bidding. Some customers may require the Company to pay a certain amount of deposit during the bidding process which will be refunded upon completion of the sales.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Consists of prepaid rent, advances to employees for travel expenses, office supply purchases, and etc .

#### Note 5 – Fixed Assets, net
At October 31, 2024 and 2023, fixed assets consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **Years Ended October 31,** | **Years Ended October 31,** |
|  | **2024** | **2023** |
| Office equipment | $634291 | $619292 |
| Software | 60302 | 58663 |
| Less: accumulated depreciation | (627630) | (565474) |
|  | $66963 | $112481 |

---

For the years ended October 31, 2024, and 2023, depreciation expense amounted to $4,731 and $5,485, respectively.

#### Note 6 – Taxes Payable
At October 31, 2024 and 2023, taxes payable consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **Years Ended October 31,** | **Years Ended October 31,** |
|  | **2024** | **2023** |
| VAT Payable | $199982 | $235361 |
| Others | 63512 | 52981 |
|  | $263494 | $288342 |

---

#### Note 7 – Salary Payable
At October 31, 2024 and 2023, salary payable consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **Years Ended October 31,** | **Years Ended October 31,** |
|  | **2024** | **2023** |
| Salary payable | $1319758 | $2358325 |
| Social security payable | 131713 | 137877 |
|  | $1451471 | $2496202 |

---

#### Note 8 – Accrued Liabilities and Other Payable
At October 31, 2024 and 2023, accrued liabilities and other payables consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **Years Ended October 31,** | **Years Ended October 31,** |
|  | **2024** | **2023** |
| Payable to a third-party company <sup>(1)</sup> | $744244 | $608474 |
| Payable to payroll agent | 405462 | 574613 |
| Payable to employees | 195278 | 197140 |
| Others | 193414 | 152078 |
|  | $1538398 | $1532305 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Consists of advances received from a third-party company which is short-term in nature, non-interest bearing, unsecured and repayable on demand. The Company used the advances to pay for operating expenses.

The Company made a total payment of $229,394 subsequent to yearend to the date of this report.

#### Note 9 – Short-term Loan
On December 15, 2022, Beijing Youkai obtained a short-term loan in the amount of RMB 2,000,000 (approximately $273,000) from Bank of Beijing Co., Ltd. Zhongguancun Branch with an interest rate of LPR per annum and due on December 14, 2023. The loan was guaranteed by Beijing Guohua Wenke Financing Guarantee Co., Ltd.. The loan was repaid in full in December 2023. As of October 31, 2024 and 2023, the outstanding balance for this loan was $-0- and $273,351, respectively. For the years ended October 31, 2024 and 2023, the Company recorded interest expense in the amount of $2,187 and $10,075, respectively.

On March 10, 2023, Beijing Yading obtained a short-term loan in the amount of RMB 2,700,000 (approximately $369,000) from Bank of Hangzhou Co., Ltd. Zhongguancun Branch with an interest rate of 4.8% per annum and due on March 9, 2024. The loan was guaranteed by Beijing Haidian Technology Enterprise Financing Guarantee Co., Ltd.. The loan was repaid in full in March 2024. As of October 31, 2024 and 2023, the outstanding balance for this loan was nil- and $369,024, respectively. For the years ended October 31, 2024 and 2023, interest expense on the loan was $8,517 and $9,591, respectively.

On December 25, 2023, Beijing Yading obtained a short-term loan in the amount of RMB 3,000,000 (approximately $421,000) from Bank of Beijing Co., Ltd. Zhongguancun Branch with an interest rate of LPR per annum and due on December 24, 2024. The loan was guaranteed by Beijing Guohua Wenke Financing Guarantee Co., Ltd.. As of October 31, 2024, the outstanding balance for this loan was $421,479. For the year ended October 31, 2024, interest expense on the loan was $10,723. The loan was repaid in full on December 9, 2024.

#### Note 10 – Long-term Loan
On July 13, 2020, Beijing Yading obtained a long-term loan in the amount of RMB 7,000,000 (approximately $958,000) from China Construction Bank Corporation Beijing Chaoyang Branch with an interest rate of Loan Prime Rate ("LPR"), which was determined by the People's Bank of China, plus 0.7% per annum and due on July 12, 2023. The Company's CEO pledged his residential property as collateral for this loan. The loan was repaid in full in May 2023. For the year ended October 31, 2023, the Company recorded interest expense in the amount of $23,806.

On September 28, 2022, SPD Silicon Valley Bank issued Beijing Yading and Beijing Youkai a letter of credit ("Letter of Credit") in the aggregate principal amount of RMB 10,000,000 (approximately $1,369,000) with an interest rate of LPR plus 3.3%. The Letter of Credit was due 18 months after the issuance date. Beijing Yading and Beijing Youkai drew the full amount and the balance was paid in full in September 2023. For the year ended October 31, 2023, the Company recorded interest expense in the amount of $60,933.

On June 20, 2023, Beijing Yading obtained a long-term loan in the amount of RMB 9,750,000 (approximately $1,333,000) from Huaxia Bank Co., Ltd. Beijing Dongsi Branch with an interest rate of LPR per annum and due on June 20, 2026. The loan is secured by the Company's CEO's residential property. As of October 31, 2024 and 2023, the outstanding balance for this loan was $1,369,805 and $1,332,586, respectively. For the years ended October 31, 2024 and 2023, interest expense on the loan was $59,662 and $19,180, respectively.

On December 4, 2023, the Company obtained a long-term loan in the principal amount of $2,150,000 from Sinovation Fund IV, L.P. ("Sinovation"). The loan has a two-year term, with the principal and accrued interest due for repayment on the maturity date. Unless Sinovation exercises the Call Option (as defined below) on or before the maturity date, the loan will accrue interest at an annual rate of 12%, or at a rate of 18% ("Default Rate") in the event of a default by the Company. In the event that the Company fails to pay any amount due as principal or the interest on the maturity date, (i) the interest will accrue at the Default Rate from the maturity date through the date of the actual payment, and (ii) a surcharge interest at the rate of 0.05% per diem will also accrue on the outstanding loan balance. The loan is guaranteed by the Company's CEO and one of the its ordinary shareholder (the "Shareholder"). The Shareholder has agreed to grant to Sinovation, a call option ("Call Option") over 1,723,367 ordinary shares of the Company. Upon the exercise of this Call Option, such ordinary shares will be reclassified as Series Angel preferred shares, which shall have the rights, privileges and restrictions ranking pari passu with Series A-1 preferred shares. The Call Option shall be exercisable at any time after the call agreement is executed and will expire on December 4, 2025. If Sinovation exercises the Call Option, it waives the right to claim repayment of the $2,150,000 loan.

#### Note 11 – Related Party Transactions

#### Due from related party
As of October 31, 2024 and 2023, the balance due from related party was $190,382 and $188,777, respectively. The balance represents multiple advances provided to a related party company, which is 86.43% owned by the Company's Chairman, to support its working capital needs. The balance was short-term in nature, unsecured, repayable on demand, and bears no interest. The Company historically has not experienced an uncollectible receivable from the related party. Management believes that the related party receivable is fully collectable. Therefore, no allowance for doubtful accounts is deemed to be required on its due from related party at October 31, 2024 and 2023. During the years ended October 31, 2024 and 2023, the Company advances to the related party company $7,640 and $3,468, respectively, and received $11,272 and $10,900, respectively, for repayment.

#### Due to related parties
At October 31, 2024 and 2023, due to related party consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **Years Ended October 31,** | **Years Ended October 31,** |
|  | **2024** | **2023** |
| Jingpeng Guo (1) | $11239 | $10934 |
| Ye Li (2) | 1742 | 1695 |
| Wei Zhu (3) | 123634 | 120274 |
| Xiamen Heying (defined below) (4) | 70556 | 69049 |
| Total | $207171 | $201952 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Vice President of the Company

&nbsp;&nbsp;&nbsp;&nbsp;(2) Director of the Company

&nbsp;&nbsp;&nbsp;&nbsp;(3) Chairman and Chief Executive Office of the Company

&nbsp;&nbsp;&nbsp;&nbsp;(4) Xiamen Heying Information Technology Ltd. ("Xiamen Heying"), which was 86.43% owned by Mr. Wei Zhu

The balance of due to related parties represents expenses paid by these related parties on behalf of the Company and advances from the related parties for working capital. During the years ended October 31, 2024 and 2023, the Company borrowed $-0- and $139,728, respectively, from related parties and repaid $418 and $-0-, respectively, to such related parties. The related parties' borrowings are short-term in nature, non-interest bearing, unsecured and repayable on demand.

#### Note 12 – Income Taxes
The entities within the Company file separate tax returns in the respective tax jurisdictions in which they operate.

#### Cayman Islands
The Company is a tax-exempt entity incorporated in Cayman Islands.

#### Hong Kong
Ucare HK was incorporated in Hong Kong and does not conduct any substantial operations of its own. No provision for Hong Kong profits tax has been made in the consolidated financial statements as Ucare HK has no assessable profits for the year ended October 31, 2024.

#### China
The Company's PRC operating subsidiary and VIEs, being incorporated in the PRC, are governed by the income tax law of the PRC and is subject to PRC enterprise income tax ("EIT"). The EIT rate of PRC is 25%, which applies to both domestic and foreign invested enterprises.

#### Reconciliation of the Differences Between Statutory Tax Rate and the Effective Tax Rate
The Company operates in serval tax jurisdictions. Therefore, its income is subject to various rates of taxation. The income tax expense differs from the amount that would have resulted from applying the Cayman Islands statutory income tax rate to the Company's pre-tax income as follows:

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended October 31,** | **For the Years Ended October 31,** |
|  | **2024** | **2023** |
| Income (loss) before income tax | $713581 | $(4290243) |
| Statutory tax rate in the PRC | 25% | 25% |
| Income tax expense at statutory tax rate | 178395 |  |
| Non-deductible expenses | 341232 | 813791 |
| Change in valuation allowance | (69429) | 129658 |
| Income tax | $— | $— |

---

The Company's approximate net deferred tax assets as of October 31, 2024 and 2023 attributable to tax filings in the PRC were as follows:

---

| | | |
|:---|:---|:---|
| | **As of October 31,** | **As of October 31,** |
| <br>**Deferred tax assets:** | **2024** | **2023** |
| Net operating loss carryforward | $3650478 | $3730859 |
| Valuation allowance | (3650478) | (3730859) |
| Bad debt expenses | 91969 | 56085 |
| Share-based compensation | 609526 | 586055 |
| Advertisement expenses | 83685 | 185550 |
| Sales commissions | 149284 | 176203 |
| Net deferred tax assets | $934464 | $1003893 |

---

Management has applied a valuation allowance to the total amount of deferred tax assets based on the determination that it is more likely than not that the deferred tax asset will not be realized. This determination was based on the historic and estimated future profitability of the entities to which the deferred tax assets relate.

The movement of valuation allowance as follows:

---

| | | |
|:---|:---|:---|
|  | **As of October 31,** | **As of October 31,** |
|  | **2024** | **2023** |
| Balance at beginning of the period | $1003893 | $874235 |
| Additions | (69429) | 129658 |
| Balance at ending of the period | $934464 | $1003893 |

---

According to the Circular of relevant governmental regulatory authorities of Taxation on Extending the Loss Carry-over Period of High-tech Enterprises and High-tech SMEs (Cai Shui [2018] No. 76), from January 1, 2018, the enterprises that have the qualifications of high-tech enterprises or high-tech SMEs will be able to make up for the losses that have not been completed in the previous five years before the qualification year. The longest carry-over period is extended from 5 years to 10 years. As of October 31, 2024, the potential tax benefit arising from the loss carryforward will begin to expire in 2025.

The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As October 31, 2024 and 2023, the Company did not have any significant unrecognized uncertain tax positions. As of October 31, 2024, income tax returns for the tax years ended October 31, 2017 through October 31, 2018 remain open for statutory examination by PRC tax authorities.

#### Note 13 – Mezzanine Equity
The Company was authorized to issue 9,777,384 shares of preferred shares with a par value of $0.0001 each, of which, (i) 1,476,741 shares are designated as Series A-1 Preferred Shares, (ii) 601,884 shares are designated as Series A-2 Preferred Shares, (iii) 2,054,487 shares are designated as Series B-1 Preferred Shares, (iv) 3,668,728 shares are designated as Series B-2 Preferred Shares, and (v) 1,975,544 shares are designated as Series B+ Preferred Shares.

Since inception to October 31, 2022, 9,777,384 preferred shares were issued and outstanding. There was no additional issuances during the years ended October 31, 2024 and 2023. The following table summarized the preferred shares outstanding as of October 31, 2024:

---

| | | | |
|:---|:---|:---|:---|
| <br>**Issuance Date** | <br>**Class of Shares** | <br>**Warrants** | **Number**<br>**of Shares** |
| March 8, 2019 | Series A-1 Preferred Shares |  | 1476741 |
| March 8, 2019 | Series A-2 Preferred Shares |  | 601884 |
| October 15, 2019 | Series B-1 Preferred Shares |  | 1630545 |
| December 22, 2020 | Series B-1 Preferred Shares | Series B-1 warrant | 423942 |
| June 21, 2021 | Series B-2 Preferred Shares |  | 2934983 |
| June 21, 2021 | Series B-2 Preferred Shares |  | 733745 |
| June 13, 2022 | Series B+ Preferred Shares | Series B+ warrant | 372429 |
| June 13, 2022 | Series B+ Preferred Shares | Series B+ warrant | 1241431 |
| June 13, 2022 | Series B+ Preferred Shares | Series B+ warrant | 198629 |
| June 21, 2022 | Series B+ Preferred Shares |  | 163055 |
|  |  |  | **9777384** |

---

In connection with the preferred shares issuances, the Company issued warrants to its preferred shareholders to purchase a total of 423,942 shares of Series B-1 preferred shares ("Series B-1 Warrant") and 1,812,489 shares of Series B+ preferred shares ("Series B+ Warrant") as of October 31, 2022. No issuance during the years ended October 31, 2024 and 2023.

The Series B-1Warrants have an exercise price of $3.0665 per share. The Series B+ Warrants have an exercise price of $6.1329 per share.

Certain rights, preferences and privileges of the preferred shares are as follows:

Dividends Rights

The directors may declare dividends and distributions on preferred shares in issue and authorize payment of the dividends or distributions out of the funds of the Company lawfully available therefor. No dividend or distribution shall be paid except out of the realized or unrealized profits of the Company, or out of the share premium account or as otherwise permitted by the Statute.

Liquidation Rights

In the event of any liquidation, dissolution or winding up of the Company, the holders of the preferred shares shall be entitled to receive for each preferred shares held by such holder, on parity with each other and prior and in preference to any distribution of any of the assets or funds of the Company to the holders of any other class or series of shares by reason of their ownership of such shares, an amount equal to the sum of (i) 100% of the issue price, (ii) an compound return at an annual interest rate of 10% for each year, and (iii) any and all accrued or declared but unpaid dividends on such preferred shares. The remaining liquidation funds shall be distributed ratably among the ordinary shareholders and the preferred shareholders in proportion to the number of shares held by them.

Conversion Rights

The holders of the preferred shares shall have the rights described below with respect to the conversion of the preferred shares into ordinary shares:

● Any preferred share may, at the option of the holder, be converted at any time after the date of issuance of such shares, into ordinary shares based on the then-effective conversion price

● Each preferred share shall automatically be converted into ordinary shares based on the then-effective conversion price for such preferred share in effect at the time immediately upon the closing of a qualified IPO

The conversion price shall be adjusted and re-adjusted from time to time if as a result of share split, division, combination, dividend, reorganization, mergers, consolidations, re-classifications, exchanges, substitutions, recapitalization or similar events.

Voting Rights

The holder of any preferred share issued and outstanding, whether in person or by proxy, shall have one vote for each preferred share held by such holder. Moreover, the rights relating to the capital shares, such as any amendment or change of the rights, preferences, privileges or powers of the preferred shares, or any stock split, share consolidation and others should be protective, and the Company shall not take any actions without the affirmative vote or prior written consents of the ordinary majority and the preferred majority.

Redemption Rights

Provided that a qualified IPO or a deemed liquidation event has not been consummated by the Company on or before December 31, 2027, the preferred holder has rights to require the Company redeem all or a portion of such shares at the redemption price, which shall be the sum of (x) 100% of the applicable preferred share purchase price, (y) a compound return at an annual interest rate of 10% for each year, and (z) any declared but unpaid dividends on such preferred share, upon written notice. Once received such notice, the Company shall not (and shall not permit any subsidiary to) take any action which would have the effect of delaying, undermining or restricting the redemption.

SEC Accounting Series Release No. 268 ("ASR 268") requires preferred securities that are redeemable for cash or other assets to be classified outside of permanent equity if they are redeemable (1) at a fixed or determinable price on a fixed or determinable date, (2) at the option of the holder, or (3) upon the occurrence of an event that is not solely within the control of the issuer. In accordance with applicable accounting standards, all outstanding preferred shares were qualified as redeemable securities and are classified as mezzanine equity.

For the year ended October 31, 2023, the Company recorded $9,088,624 in accrued interest, with a 10% annual compound rate, and added it to the carrying value of the preferred shares, resulting in the carrying amount accreted to $9,089,601.

For the year ended October 31, 2024, the Company recorded $12,890,596 in accrued interest, with a 10% annual compound rate, and added it to the carrying value of the preferred shares, resulting in the carrying amount accreted to $12,891,574.

In accounting for the issuance of the preferred shares under ASU 2020-06, the Company recorded each issuance as a single amount in its entirety according to the new framework. The new ASU eliminates the beneficial conversion and cash conversion accounting models for convertible instruments.

#### Note 14 - Equity

#### Ordinary Shares
The Company was authorized to issue 490,222,616 ordinary shares with a par value of $0.0001 each.

As of October 31, 2024, 10,000,000 shares were issued and outstanding.

#### 2021 Performance Incentive Plan
The Company adopted the 2021 Share Incentive Plan in September 2021 and reserved 1,764,706 ordinary shares for issuance thereunder. As of October 31, 2024, the Company had issued a total of 1,764,706 shares of ordinary shares. Employees granted an option shall be categorized into two Companys: Company A and Company B, each with different vesting periods.

#### Stock-based Compensation
In 2021, options to purchase an aggregate of 1,202,906 shares of ordinary shares were granted to 11 employees at an exercise price of $0.01 per share. These options were categorized under Company A. The options have terms of 10 years and were fully vested on the grant date. The fair value of the options on the date of grant using the Black-Scholes option-pricing model was $4,918,201.

In 2022, options to purchase an aggregate of 453,300 shares of ordinary shares were granted to 32 employees at an exercise price of $0.01 per share. These options were categorized under Company A. The options have terms of 10 years and were fully vested on the grant date. The fair value of the options using the Black-Scholes option-pricing model with the assumptions below on the date of issuance was $2,780,044:

---

| | |
|:---|:---|
|  | **Company A** |
| Expected term in years | 7.17 - 7.92 |
| Stock price | $4.0886 - 6.1329 |
| Expected dividend yield | 0% |
| Volatility | 27.09% |
| Risk-free interest Rate | 1.5% |
| Initial fair value per share | $4.0886 - 6.1329 |

---

In 2021, options to purchase an aggregate of 66,000 shares of ordinary shares were granted to 7 employees at an exercise price of $2.86 per share. These options were categorized under Company B. The options have a term of 10 years, with 25% of the shares subject to the options vesting every twelve months from the grant date, contingent upon the recipient's continued service with the Company. The fair value of the options on the date of grant using the Black-Scholes option-pricing model was $136,488.

In 2022, options to purchase an aggregate of 42,500 shares of ordinary shares were granted to 2 employees at an exercise price of $2.86 per share. These options were categorized under Company B. The options have a term of 10 years, with 25% of the shares subject to the options vesting every twelve months from the grant date, contingent upon the recipient's continued service with the Company. The fair value of the options using the Black-Scholes option-pricing model with the assumptions below on the date of issuance was $165,648:

---

| | |
|:---|:---|
|  | **Company B** |
| Expected term in years | 7.17 - 8.17 |
| Stock price | $4.0886 - 6.1329 |
| Expected dividend yield | 0% |
| Volatility | 27.09% |
| Risk-free interest Rate | 1.5% |
| Initial fair value per share | $2.068 - 3.8976 |

---

During the year ended October 31, 2024 and 2023, the Company recognized option stock-based compensation expense of $65,833 and $125,322, respectively.

#### Statutory Reserve
The Company's subsidiary, VIE and VIE's subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company. The payment of dividends by entities organized in China is subject to limitations, procedures and formalities. Regulations in the PRC currently permit payment of dividends only out of accumulated profits as determined in accordance with accounting standards and regulations in China.

The Company is required to make appropriations to certain reserve funds, comprising the statutory surplus reserve and the discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC ("PRC GAAP"). Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entity's registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the Company's board of directors. The statutory reserve may be applied against prior year losses, if any, and may be used for general business expansion and production or increase in registered capital, but are not distributable as cash dividends.

For the years ended October 31, 2024, and 2023, the Company has no addition to the statutory reserve.

#### Note 15 – Commitments and Contingencies

#### Commitments
As of October 31, 2024, future minimum payments during the next five fiscal years and thereafter are as follows:

---

| | |
|:---|:---|
|  | **Year ended October 31,** |
| 2025 | $10413 |
| Total | 10413 |

---

#### Contingencies
From time to time, the Company may be subject to certain legal proceedings, claims and disputes that arise in the ordinary course of business. Although the outcomes of these legal proceedings cannot be predicted, the Company does not believe these actions, in the aggregate, will have a material adverse impact on its financial position, results of operations or liquidity.

#### Note 16 – Condensed Financial Information of the Parent Company
Pursuant to the requirements of Rule 12-04(a), 5-04(c) and 4-08(e)(3) of Regulation S-X, the condensed financial information of the parent company shall be filed when the restricted net assets of consolidated subsidiary exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. For purposes of this test, restricted net assets of consolidated subsidiary, VIE and VIE's subsidiaries shall mean that amount of the Company's proportionate share of net assets of consolidated subsidiary (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiary in the form of loans, advances or cash dividends without the consent of a third party.

The Company performed a test on the restricted net assets of consolidated subsidiary in accordance with such requirement and concluded that it was not applicable to the Company as the restricted net assets of the Company's PRC subsidiary, VIE and VIE's subsidiaries did not exceeded 25% of the consolidated net assets of the Company, therefore, the condensed financial statements for the parent company have not been required.

#### Note 17 – Subsequent Events
In accordance with ASC Topic 855, "Subsequent Events", which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before the financial statements are issued. The Company has evaluated all events or transactions that occurred after October 31, 2024, up through the date the Company issued the consolidated financial statements and concluded that no material subsequent events to be disclosed.

## Exhibit 99.2

?xml version='1.0' encoding='ASCII'? TIAN RUIXIANG Holdings Ltd_2025-04-30

**Exhibit 99.2**

**UCARE INC.**

**UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **April 30,**<br>**2025** | **October 31,**<br>**2024** |
|  | (unaudited) |  |
| **ASSETS** |  |  |
| Cash and cash equivalents | $269179 | $267369 |
| Accounts receivable, net | 4385951 | 4594897 |
| Due from related party | 186381 | 190382 |
| Prepaid assets and other receivable | 139875 | 964951 |
| Other current assets | 158686 | 162478 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Current Assets | 5140072 | 6180077 |
| Fixed assets, net | 35685 | 66963 |
| Deferred tax assets | 860051 | 934464 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Non-current Assets | 895736 | 1001427 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Assets** | $6035808 | $7181504 |
| **LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY** |  |  |
| Accounts payable | $987864 | $1039051 |
| Accrued liabilities and other payables | 972999 | 1538398 |
| Salary payable | 1194816 | 1451471 |
| Taxes payable | 267447 | 263494 |
| Due to related parties | 202817 | 207171 |
| Contract liabilities | 1679113 | 1464476 |
| Short term loans | 412621 | 421479 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Current Liabilities | 5717677 | 6385540 |
| Long term loans | 3491017 | 3519805 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Non-current Liabilities | 3491017 | 3519805 |
| **Total Liabilities** | 9208694 | 9905345 |
| **Commitments and contingencies (see Note 15)** |  |  |
| **Mezzanine Equity:** |  |  |
| Series A-1 preferred shares ($0.0001 par value, 1,476,741 shares authorized; 1,476,741 shares issued and outstanding at April 30, 2025 and October 31, 2024) | 1696586 | 1696586 |
| Series A-2 preferred shares ($0.0001 par value, 601,884 shares authorized; 601,884 shares issued and outstanding at April 30, 2025 and October 31, 2024) | 848279 | 848279 |
| Series B-1 preferred shares ($0.0001 par value, 2,054,487 shares authorized; 2,054,487 shares issued and outstanding at April 30, 2025 and October 31, 2024) | 2434918 | 2434918 |
| Series B-2 preferred shares ($0.0001 par value, 3,668,728 shares authorized; 3,668,728 shares issued and outstanding at April 30, 2025 and October 31, 2024) | 5046942 | 5046942 |
| Series B+ preferred shares ($0.0001 par value, 1,975,544 shares authorized; 1,975,544 shares issued and outstanding at April 30, 2025 and October 31, 2024) | 2864849 | 2864849 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total mezzanine equity** | 12891574 | 12891574 |
| **Shareholders' Deficits:** |  |  |
| Ordinary shares ($0.0001 par value, 490,222,616 shares authorized; 10,000,000 shares issued and outstanding at April 30, 2025 and October 31, 2024) | 1000 | 1000 |
| Additional paid-in capital | 31854637 | 31837949 |
| Subscription receivable | (1000) | (1000) |
| Accumulated deficits | (46998363) | (46750013) |
| Accumulated other comprehensive loss | (920734) | (703351) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total shareholders' deficits** | (16064460) | (15615415) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Mezzanine Equity and Shareholders' Deficits** | (3172886) | (2723841) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Liabilities, Mezzanine Equity and Shareholders' Deficits** | $6035808 | $7181504 |

---

**UCARE INC.**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS)**

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended April 30,** | **For the Six Months Ended April 30,** |
|  | **2025** | **2024** |
| **Revenues** | $2012283 | $3132801 |
| **Cost of Revenues** | 289444 | 323610 |
| Gross Profit | 1722839 | 2809191 |
| **Operating Expenses** |  |  |
| &nbsp;&nbsp;Selling and marketing | 650798 | 1090742 |
| &nbsp;&nbsp;General and administrative | 637900 | 481010 |
| &nbsp;&nbsp;Research and development | 569661 | 653827 |
| Total Operating Expenses | 1858359 | 2225579 |
| **(Loss) Income from Operations** | (135520) | 583612 |
| **Other Expenses** |  |  |
| Interest expense | (48294) | (43202) |
| Other expenses | (9743) | (17588) |
| Total Other Expense, net | (58037) | (60790) |
| **(Loss) Income before Income Taxes** | (193557) | 522822 |
| **Income tax expense** | 54793 | 103935 |
| **Net (Loss) Income** | $(248350) | $418887 |
| **Net (Loss) Income per Share** |  |  |
| Basic | $(0.02) | $0.01 |
| Diluted | $(0.02) | $0.01 |
| **Weighted Average Shares Outstanding** |  |  |
| Basic | 10000000 | 10000000 |
| Diluted | 10000000 | 10000000 |
| **Comprehensive Income (Loss)** |  |  |
| Net (Loss) Income | $(248350) | $418887 |
| Other Comprehensive Loss |  |  |
| &nbsp;&nbsp;Unrealized foreign currency translation loss | (217383) | (168243) |
| Comprehensive (Loss) Income | $(465733) | $250644 |

---

**UCARE INC.**

**UNAUDITED CONDESED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICITS**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  | | | | | |
|  | **Preferred Shares** | **Preferred Shares** | **Ordinary Shares** | **Ordinary Shares** | | | | | |
|  | **Number of**<br>**Shares** | <br>**Amount** | **Number of**<br>**Shares** | <br>**Amount** | <br>**Additional**<br>**Paid-in**<br>**Capital** | <br>**Stock**<br>**Subscription**<br>**Receivable** | <br>**Accumulated**<br>**Deficit** | <br>**Accumulated**<br>**Other**<br>**Comprehensive**<br>**Loss** | **Total&nbsp;&nbsp;&nbsp;&nbsp;**<br>**Mezzanine**<br>**Equity**<br>**and**<br>**Shareholders'**<br>**Deficits** |
| **Balance, November 1, 2024** | **9777384** | $**12891574** | **10000000** | $**1000** | $**31837949** | $**(1000)** | $**(46750013)** | $**(703351)** | $**(2723841)** |
| Stock-based compensation |  |  |  |  | 16688 |  |  |  | 16688 |
| Net loss |  |  |  |  |  |  | (248350) |  | (248350) |
| Foreign currency translation adjustment |  |  |  |  |  |  |  | (217383) | (217383) |
| **Balance, April 30, 2025** | **9777384** | $**12891574** | **10000000** | $**1000** | $**31854637** | $**(1000)** | $**(46998363)** | $**(920734)** | $**(3172886)** |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Preferred Shares** | **Preferred Shares** | **Ordinary Shares** | **Ordinary Shares** | | | | | |
|  | **Number of**<br>**Shares** | <br>**Amount** | **Number of**<br>**Shares** | <br>**Amount** | <br>**Additional**<br>**Paid-in**<br>**Capital** | <br>**Stock**<br>**Subscription**<br>**Receivable** | <br>**Accumulated**<br>**Deficit** | <br>**Accumulated**<br>**Other**<br>**Comprehensive**<br>**Loss** | **Total**<br>**Mezzanine**<br>**Equity**<br>**and**<br>**Shareholders'**<br>**Deficits** |
| **Balance, November 1, 2023** | **9777384** | $**9089601** | **10000000** | $**1000** | $**35574089** | $**(1000)** | $**(47367045)** | $**(589218)** | $**(3292573)** |
| Accretion on preferred shares to redemption value |  | 1890599 |  |  | (1890599) |  |  |  |  |
| Stock-based compensation |  |  |  |  | 32916 |  |  |  | 32916 |
| Net income |  |  |  |  |  |  | 418887 |  | 418887 |
| Foreign currency translation adjustment |  |  |  |  |  |  |  | (168243) | (168243) |
| **Balance, April 30, 2024** | **9777384** | $**10980200** | **10000000** | $**1000** | $**33716406** | $**(1000)** | $**(46948158)** | $**(757461)** | $**(3009013)** |

---

**UCARE INC.**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (IN U.S. DOLLARS)**

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended** | **For the Six Months Ended** |
|  | **April 30,** | **April 30,** |
|  | **2025** | **2024** |
| **Cash Flows from Operating Activities** |  |  |
| Net (loss) income | $(248350) | $418887 |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |  |
| &nbsp;&nbsp;Depreciation expense | 10518 | 25229 |
| &nbsp;&nbsp;Stock-based compensation and service expense | 16688 | 32916 |
| &nbsp;&nbsp;Allowance for credit losses | 339675 | 167207 |
| &nbsp;&nbsp;Loss on disposal of property and equipment | 15564 |  |
| &nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net decrease in accounts receivable | (118705) | (536668) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net decrease in other accounts receivable | 825076 | 684509 |
| &nbsp;&nbsp;&nbsp;&nbsp;Due from related party | 4001 | (9439) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | 3792 | (1713) |
| &nbsp;&nbsp;&nbsp;&nbsp;Decrease in deferred tax assets | 74413 | 92678 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net increase in taxes payable | 3953 | 5246 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net increase salary payable | (256655) | (447331) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net increase in accounts payable and other payables | (406303) | (1078281) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net Cash Provided by (Used in) Operating Activities** | 263667 | (646760) |
| **Cash Flows from Investing Activities** |  |  |
| &nbsp;&nbsp;Purchase of property and equipment | (558) |  |
| &nbsp;&nbsp;Proceeds from sale of property and equipment | 3550 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net Cash Provided by Investing Activities** | 2992 |  |
| **Cash Flows from Financing Activity** |  |  |
| &nbsp;&nbsp;Net decrease in long-term borrowings | (37646) | 1936064 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net Cash (Used in) Provided by Financing Activity** | (37646) | 1936064 |
| **Effect of Exchange Rate Changes on Cash** | (227203) | (166986) |
| **Net Change in Cash, Cash Equivalents, and Restricted Cash** | 1810 | 1122318 |
| **Cash, Cash Equivalents, and Restricted Cash - beginning of the period** | 267369 | 13331 |
| **Cash, Cash Equivalents, and Restricted Cash - end of the period** | $269179 | $1135649 |
| **Supplemental Disclosure of Cash Flow Information** |  |  |
| **Cash paid for interest expense** | $48294 | $43202 |

---

**UCARE INC.**

**NOTES TO UNAUDITED CONDESED CONSOLIDATED FINANCIAL STATEMENTS**

**Note 1 — Organization and Principal Activities**

Ucare Inc. ("Ucare") is a holding company incorporated in the Cayman Islands on August 28, 2018. Ucare, through two variable interest entities ("VIE"), offers cloud-based Diagnosis Related Company ("DRG")/Diagnosis Intervention Packet ("DIP") medical insurance payment products and data analytics services to healthcare institutions in the People's Republic of China ("PRC" or "China"). Ucare and its subsidiaries (collectively referred to as the "Company") focuses on the areas of "disease classification" and "medical record quality control." The Company specializes in the in-depth exploration of healthcare big data and Artificial Intelligence ("AI") applications, developed an AI-powered "Disease Classification Knowledge Graph" and a comprehensive DRG/DIP solution for hospital management across various departments.

**Note 2 — Significant Accounting Policies**

**Basis of Presentation**

The accompanying unaudited condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are of a normal recurring nature and are necessary to fairly present the financial statements for the interim periods. The condensed consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and have been prepared in accordance with the regulations of the Securities and Exchange Commission ("SEC") for interim financial statements. Results for the interim periods are not necessarily indicative of results to be expected for the full year. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended October 31, 2024.

**Principles of Consolidation**

The consolidated financial statements include the accounts of the Company and include the assets, liabilities, revenues and expenses of wholly owned subsidiaries, VIE and subsidiaries of the VIE over which the Company exercises control and, when applicable, entity for which the Company has a controlling financial interest or is the primary beneficiary. All inter-company accounts and transactions have been eliminated in consolidation.

Subsidiary is entity in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors.

An entity is considered to be a VIE if the entity's equity holders do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties.

The Company consolidates entities for which the Company is the primary beneficiary if the entity's other equity holders do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties.

In determining whether the Company or its subsidiaries is the primary beneficiary of a VIE, the Company considered whether it has the power to direct activities that are significant to the VIE's economic performance, including the power to appoint senior management, right to direct company strategy, power to approve capital expenditure budgets, and power to establish and manage ordinary business operation procedures.

Upon loss of control, the Company derecognizes the assets and liabilities of the subsidiary, any non-controlling interests and the other components of equity related to the subsidiary. Any surplus or deficit arising on the loss of control is recognized in profit or loss. If the Company retains any interest in the previous subsidiary, then such interest is measured at fair value at the date that control is lost. Subsequently it is accounted for as an equity-accounted investee or as cost method investment depending on the level of influence retained.

**Translation of Foreign Currencies**

The functional currency is the U.S. dollar for the Company's Cayman Island operations, Hong Kong dollars for Hong Kong entity, and the Renminbi for all other Company operations. The Company's reporting currency is the U.S. dollar. Assets and liabilities denominated in foreign currencies are translated at year-end exchange rates, income statement accounts are translated at average rates of exchange for the year and equity is translated at historical exchange rates. Any translation gains or losses are recorded in other comprehensive income (loss). Gains or losses resulting from foreign currency transactions are included in net income (loss).

**Use of Estimates**

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Changes in these estimates and assumptions may have a material impact on the consolidated financial statements and accompanying notes. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates.

Significant estimates during the six months ended April 30, 2025 include the assumptions used in assessing impairment of long- term assets, the valuation of deferred tax assets and associated valuation allowances, and the valuation of stock-based compensation.

**Cash and Cash Equivalents**

Cash and cash equivalents consist of deposits with banks and all highly liquid investments, with maturities of three months or less, that are not segregated and deposited for regulatory purposes.

At April 30, 2025 and October 31, 2024, the Company's cash balances by geographic area were as follows:

---

| | | |
|:---|:---|:---|
| <br>**Country:** | **April 30,**<br>**2025** | **October 31,**<br>**2024** |
| China | $254956 | $237707 |
| United States | 14223 | 29662 |
| Total cash and restricted cash | $269179 | $267369 |

---

The Company maintains its cash in bank deposit accounts which at times may exceed insured limits. The Company has two bank accounts with U.S. bank subject to FDIC insurance. The Company has not experienced any losses in such accounts. Management believes that the Company is not exposed to any significant credit risk on cash and cash equivalents.

Cash in China may not be freely transferable out of the PRC because of exchange control regulations or other reasons.

**Accounts Receivable and Allowance for Credit Losses**

Accounts receivable are stated at the historical carrying amount net of allowance for expected credit losses.

On November 1, 2022, the Company adopted FASB ASC Topic 326 — "Financial Instruments — Credit losses" ("ASC Topic 326") to estimate the allowance for expected credit losses which replaces the incurred loss methodology with the current expected credit loss ("CECL") methodology. The Company adopted ASC Topic 326 using the modified retrospective approach for all in-scope assets. The adoption of ASC Topic 326 on the Company's consolidated and combined financial statements was immaterial.

The Company has developed a current expected credit loss ("CECL") model based on historical experience, the age of the accounts receivable balances, credit quality of its customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from customers. The Company considers historical collection rates, current financial status, macroeconomic factors, and other industry-specific factors when evaluating for current expected credit losses.

**Other Current Asset**

Other current asset consists of input value added taxes ("VAT") credits, which represents the VAT amount that remains unused due to the discrepancy between input and output VAT over a specific period. When output VAT is lower than input VAT, the unused input VAT can be carried forward for deduction in future periods. This unused portion is referred to as carryforward VAT credits. As of April 30, 2025 and October 31, 2024, the balance of other current asset was $158,686 and $162,478, respectively.

**Fixed Assets, net**

Fix assets are stated at cost less accumulated depreciation and depreciated on a straight-line basis over the estimated useful lives of the assets. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of,

the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income/loss in the year of disposition. Estimated useful lives are as follows:

---

| | |
|:---|:---|
|  | **Estimated Useful Life** |
| Office equipment | 3 years |
| Software | 10 years |

---

**Impairment of Long-lived Assets**

Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount may not be fully recoverable or that the useful life is shorter than the Company had originally estimated. When these events occur, the Company evaluates the impairment by comparing carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Company recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. As of April 30, 2025, and October 31, 2024, the Company did not record any impairment charge, as no impairment indicators were noted.

**Contract Liabilities**

Contract liabilities on uncompleted contracts represent the amounts of cash collected from customers, billings to clients on contracts in advance of work performed and revenue recognized. The majority of these amounts are expected to be earned within twelve months and are classified as current liabilities.

**Concentration of Credit Risk and Uncertainties**

Currently, the Company's operations are carried out in China. Accordingly, the Company's business, financial condition and results of operations may be influenced by the political, economic and legal environment in China, and by the general state of China's economy. The Company's operations in China are subject to specific considerations and significant risks not typically associated with companies in North America. The Company's results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things.

Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of trade accounts receivable. A portion of the Company's sales are credit sales to customers whose ability to pay are dependent upon the prevailing industry economics. The Company also performs ongoing credit evaluations of its customers to help further reduce credit risk.

No customer accounted for 10% or more of the Company's revenue during the six months ended April 30, 2025 and 2024. No supplier accounted for 10% or more of the Company's purchase during the six months ended April 30, 2025 and 2024

**Revenue Recognition**

The Company recognizes revenue under Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("ASC 606"). The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle:

● Step 1: Identify the contract with the customer

● Step 2: Identify the performance obligations in the contract

● Step 3: Determine the transaction price

● Step 4: Allocate the transaction price to the performance obligations in the contract

● Step 5: Recognize revenue when the company satisfies a performance obligation

In order to identify the performance obligations in a contract with a customer, a company must assess the promised goods or services in the contract and identify each promised goods or service that is distinct. A performance obligation meets ASC 606's definition of a "distinct" goods or service (or bundle of goods or services) if both of the following criteria are met:

● The customer can benefit from the goods or service either on its own or together with other resources that are readily available to the customer (i.e., the goods or service is capable of being distinct).

● The entity's promise to transfer the goods or service to the customer is separately identifiable from other promises in the contract (i.e., the promise to transfer the goods or service is distinct within the context of the contract).

If a goods or service is not distinct, the goods or service is combined with other promised goods or services until a bundle of goods or services is identified that is distinct.

The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties (for example, some sales taxes). The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. Variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved.

The transaction price is allocated to each performance obligation on a relative standalone selling price basis. The transaction price allocated to each performance obligation is recognized when that performance obligation is satisfied, at a point in time or over time as appropriate.

*Types of revenue:*

SaaS services

The Company provide SaaS services to its customers with its flagship Software as a Service ("SaaS") platform. The platform integrates hospital data flows to provide efficient, secure, and streamlined operations. The platform supports seven core product areas, including medical record quality control, cost analysis, and decision-making, enabling precise hospital management and etc.. The Company primarily focuses on direct sales and establishing long-term partnerships with hospitals.

A contract is established between the Company and the customer, specifying the services to be performed and the payment terms. By signing the sales contract, customers agree to utilize the Hospital DRG/DIP Collaborative Management Platform and pay the specified consideration. To mitigate credit risk, the Company typically requires advance payments from customers. As of April 30, 2025 and October 31, 2024, the Company recorded contract liabilities of $1,679,113 and $1,464,476, respectively, which will be recognized as revenue upon performance/delivery of the services/products sold. The Company identifies a single performance obligation for the services provided, eliminating the need for transaction price allocation. The contract specifies a fixed amount as the annual service fee. Revenue from fixed-price contracts is recognized on a straight-line basis over the service period as the services are performed.

Software

The Company provides software for the Hospital DRG/DIP Collaborative Management Platform to its customers, designed to facilitate the management of internal hospital DRG/DIP medical insurance. Installation and operational training are conducted for customers before the software is accepted. The Company also offers customers data maintenance service ranging from 1 to 5 years.

A contract is established between the Company and the customer, outlining the terms governing the transfer of products and payment. By signing the sales contract, customers agree to purchase the software for use in the Hospital DRG/DIP Collaborative Management Platform and to pay the specified consideration. To mitigate credit risk, the Company typically requires advance payments from customers. Two performance obligations are identified – sales of the software and data maintenance services provided. The contract specifies a fixed amount for each performance obligation. Accordingly, revenue from software sales is recognized at point in time when the title and risk of loss transfer to the customer, delivery is deemed complete, and customer acceptance is confirmed. Revenue from data maintenance service is recognized on a straight-line basis over the service period.

Other

The interface fee refers to the charge for integrating with the internal system. Revenue is recognized at the point when the integration is successfully completed.

**Disaggregation of Revenue**

The following table sets forth the Company's revenue based on services for the periods indicated:

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended April 30,** | **Six Months Ended April 30,** |
|  | **2025** | **2024** |
| SaaS services | $1049996 | $2135410 |
| Software | 80499 | 5225 |
| Other | 881788 | 992166 |
| Total revenue | $2012283 | $3132801 |

---

**Cost of Revenue**

Cost of revenue includes cost of hardware and devices, SaaS operational and maintenance expenses, and tax charges.

**Selling and Marketing Expenses**

All costs related to selling and marketing are expensed as incurred. For the six months ended April 30, 2025 and 2024, selling and marketing costs amounted to $650,798 and $1,090,742, respectively. Advertising costs are expensed as incurred and included in the selling and marketing expenses. Advertising costs were $-0- for the six months ended April 30, 2025 and 2024.

**Research and Development Expenses**

Research and development expenses are expensed in the period when incurred. These costs primarily consist of designing, coding, project management, and other IT services related to developing and enhancing the project.

**Stock-based Compensation**

The Company follows the provisions of Financial Accounting Standards Board ("FASB") ASC 718, "Compensation — Stock Compensation," which establishes accounting standards for non-employee and employee stock-based awards. Under the provisions of FASB ASC 718, the fair value of stock issued is used to measure the fair value of services received by the Company. The fair value of the equity instrument is calculated and then recognized as compensation expense over the requisite performance period. For employee stock-based awards, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense with graded vesting on a straight–line basis, as specified in the stock grant, over the requisite service period for the award.

**Commitments and Contingencies**

In the normal course of business, the Company is subject to contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters. Liabilities for such contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.

**Income Taxes**

The Company accounts for income taxes using the asset/liability method prescribed by ASC 740, "Income Taxes." Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if, based on the weight of available evidence, it is more-likely- than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date.

The Company follows the accounting guidance for uncertainty in income taxes using the provisions of ASC 740 "Income Taxes". Using that guidance, tax positions initially need to be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. As of April 30, 2025 and October 31, 2024, the Company had no significant uncertain tax positions that qualify for either recognition or disclosure in the financial statements. The Company recognizes interest and penalties related to significant uncertain income tax positions in other expense, if any. There were no such interest and penalties as of April 30, 2025 and October 31, 2024.

**Value Added Tax**

Revenues from SaaS service and other services is subject to a VAT of 6%. Software sales is subject to a VAT of 13%. The amount of VAT liability is determined by applying the applicable tax rate to the invoiced amount of services/products provided/sold. The Company reports revenue net of PRC's VAT for all the years presented on the consolidated statements of operations and comprehensive loss.

**Fair Value of Financial Instruments and Fair Value Measurements**

The Company adopted the guidance of ASC 820 for fair value measurements which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:

● Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.

● Level 2-Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data.

● Level 3-Inputs are unobservable inputs which reflect the reporting entity's own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information.

Financial instruments included in current assets and current liabilities are reported in the consolidated balance sheets at face value or cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. Assets and liabilities measured at fair value on a recurring basis.

**Earnings per Share**

ASC Topic 260 "Earnings per Share," requires presentation of both basic and diluted earnings per share ("EPS") with a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. Basic EPS excludes dilution. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue ordinary stock were exercised or converted into ordinary stock or resulted in the issuance of ordinary stock that then shared in the earnings of the entity.

Basic net loss per ordinary share is computed by dividing net loss available to ordinary shareholders by the weighted average number of shares of ordinary stock outstanding during the period. Diluted net loss per ordinary share is computed by dividing net loss by the weighted average number of shares of ordinary stock, ordinary stock equivalents and potentially dilutive securities outstanding during each period. For the six months ended April 30, 2025, potentially dilutive ordinary shares consisted of ordinary shares issuable upon the exercise of stock options and convertible preferred shares. Ordinary shares equivalents are not included in the calculation of diluted loss per ordinary share if their effect would be anti-dilutive. In a period in which the Company has a net loss, all potentially dilutive securities are excluded from the computation of diluted shares outstanding as they would have had an anti- dilutive impact.

The following table summarizes the securities that were excluded from the diluted per share calculation because the effect of including these potential shares was antidilutive:

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended April 30,** | **Six Months Ended April 30,** |
|  | **2025** | **2024** |
| Convertible preferred shares | 9777384 | 9777384 |
| Stock options | 1710456 | 1683331 |

---

**Comprehensive Income (Loss)**

Comprehensive income is comprised of net income (loss) and all changes to the statements of shareholders' equity (deficit), except those due to investments by shareholders and changes in paid-in capital. For the Company, comprehensive income for the six months ended April 30, 2025 and 2024 consisted of net income and unrealized income (loss) from foreign currency translation adjustment.

**Related Parties**

A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent

that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party.

**Segment Reporting**

ASC 280 "Segment reporting" establishes standards for reporting information on operating segments in interim and annual financial statements. The Company uses "the management approach" in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company's chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company's reportable segments. The Company's chief operating decision maker is the Chief Executive Officer ("CEO") and chairman of the Company, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. The Company has determined that it has one reportable business segment. During the six months ended April 30, 2025 and 2024, all of the Company's customers are in the PRC and all revenue is derived from the provision of SaaS services and software.

**Going Concern**

These unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates, among other things, the realization of assets and the satisfaction of liabilities in the normal course of business.

As reflected in the accompanying unaudited condensed consolidated financial statements, the Company's working capital deficit and shareholders' deficit were $577,605 and $16,064,460,respectively, as of April 30, 2025. The Company had incurred accumulated deficit of $46,998,363.

These matters raise substantial doubt about the Company's ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company's ability to raise additional capital, implement its business plan, and generate significant revenues. There are no assurances that the Company will be successful in its efforts to generate significant revenues, maintain sufficient cash balance or report profitable operations or to continue as a going concern. The Company plans to raise capital through the sale of equity to implement its business plan. However, there is no assurance these plans will be realized and that any additional financings will be available to the Company on satisfactory terms and conditions, if any.

The accompanying unaudited condensed consolidated financial statements do not include any adjustments related to the recoverability or classification of asset-carrying amounts or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern.

**Recent Accounting Pronouncements**

In December 2023, the FASB issued ASU 2023 - 09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This guidance is intended to enhance the transparency and decision - usefulness of income tax disclosures. The amendments in ASU 2023 - 09 address investor requests for enhanced income tax information primarily through changes to disclosure regarding rate reconciliation and income taxes paid both in the U.S. and in foreign jurisdictions. ASU 2023 - 09 is effective for fiscal years beginning after December 15, 2024 on a prospective basis, with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements disclosures.

In November 2024, the FASB issued ASU No. 2024-03, *Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40),* which requires disaggregated disclosure of income statement expenses for public business entities. The objective of ASU 2024-03 is to "address requests from investors for more detailed information about the types of expenses . . . in commonly presented expense captions (such as cost of sales, selling, general, and administrative expenses, and research and development)." Investors advised the FASB that "disclosure of disaggregated information about expenses is critically important in understanding an entity's performance, assessing an entity's prospects for future cash flows, and comparing an entity's performance over time and with that of other entities." ASU 2024-03 adds ASC 220-40 to require a footnote disclosure about specific expenses by requiring public entities to disaggregate, in a tabular presentation, each relevant expense caption on the face of the income statement that includes any of the following natural expenses: (1) purchases of inventory, (2) employee compensation, (3) depreciation, (4) intangible asset amortization, and (5) depreciation, depletion, and amortization (DD&A) recognized as part of oil- and gas-producing activities or other types of depletion expenses. The tabular disclosure would also include certain other expenses, when applicable. The ASU does not change or remove existing expense disclosure requirements; however, it may affect where that information appears in the footnotes to the financial statements. ASU 2024-03 is effective for all public entities for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company does not expect the adoption to have a material impact on the consolidated financial statements.

Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its consolidated financial condition, results of operations, cash flows or disclosures.

**Note 3 – Accounts receivable, net**

Accounts receivable, net consists of the following:

---

| | | |
|:---|:---|:---|
|  | **April 30,**<br>**2025** | **October 31,**<br>**2024** |
| Accounts receivable | $5280174 | $5161469 |
| Allowance for credit losses | (894223) | (566572) |
| Total accounts receivable, net | $4385951 | $4594897 |

---

The Company has collected $643,193 of its accounts receivable subsequent to yearend to the date of this report.

Movements of Allowance for credit losses are as follows:

---

| | | |
|:---|:---|:---|
|  | **April 30,**<br>**2025** | **October 31,**<br>**2024** |
| Beginning balance | $566572 | $345310 |
| Addition | 339675 | 209624 |
| Exchange rate effect | (12024) | 11638 |
| Ending balance | $894223 | $566572 |

---

**Note 4 - Prepaid Assets and Other Receivable**

Prepaid assets and other receivable consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **April 30,**<br>**2025** | **October 31,**<br>**2024** |
| Receivable from a third-party <sup>(1)</sup> | $1169 | $846548 |
| Deposits <sup>(2)</sup> | 78627 | 85267 |
| Others <sup>(3)</sup> | 60079 | 33136 |
|  | $139875 | $964951 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Consists of advances made to a third-party company to pay for operating expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Consists of rent deposits and deposits on bidding. Some customers may require the Company to pay a certain amount of deposit during the bidding process which will be refunded upon completion of the sales.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Consists of prepaid rent, advances to employees for travel expenses, office supply purchases, and etc.

**Note 5 – Fixed Assets, net**

Fixed assets consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **April 30,**<br>**2025** | **October 31,**<br>**2024** |
| Office equipment | $231522 | $634291 |
| Software | 59035 | 60302 |
| Less: accumulated depreciation | (254872) | (627630) |
|  | $35685 | $66963 |

---

For the six months ended April 30, 2025 and 2024, depreciation expense amounted to $10,518 and $25,229, respectively.

**Note 6 – Taxes Payable**

Taxes payable consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **April 30,**<br>**2025** |  | **October 31,**<br>**2024** |
| VAT Payable |  | 205,503 |  | 199,982 |
| Others |  | 61,944 |  | 63,512 |
|  |  | 267,447 |  | 263,494 |

---

**Note 7 – Salary Payable**

Salary payable consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **April 30,**<br>**2025** | **October 31,**<br>**2024** |
| Salary payable | $1066119 | $1319758 |
| Social security payable | 128697 | 131713 |
|  | $1194816 | $1451471 |

---

**Note 8 – Accrued Liabilities and Other Payable**

Accrued liabilities and other payables consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **April 30,**<br>**2025** | **October 31,**<br>**2024** |
| Payable to a third-party company <sup>(1)</sup> | $129865 | $744243 |
| Payable to payroll agent | 358360 | 405462 |
| Payable to employees | 182581 | 195278 |
| Others | 302193 | 193414 |
|  | $972999 | $1538398 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Consists of advances received from a third-party company which is short-term in nature, non-interest bearing, unsecured and repayable on demand. The Company used the advances to pay for operating expenses.

**Note 9 – Short-term Loan**

On December 15, 2022, Beijing Youkai obtained a short-term loan in the amount of RMB 2,000,000 (approximately $273,000) from Bank of Beijing Co., Ltd. Zhongguancun Branch with an interest rate of LPR per annum and due on December 14, 2023. The loan was guaranteed by Beijing Guohua Wenke Financing Guarantee Co., Ltd.. The loan was repaid in full in December 2023.

On March 10, 2023, Beijing Yading obtained a short-term loan in the amount of RMB 2,700,000 (approximately $369,000) from Bank of Hangzhou Co., Ltd. Zhongguancun Branch with an interest rate of 4.8% per annum and due on March 9, 2024. The loan was guaranteed by Beijing Haidian Technology Enterprise Financing Guarantee Co., Ltd.. The loan was repaid in full in March 2024.

On December 25, 2023, Beijing Yading obtained a short-term loan in the amount of RMB 3,000,000 (approximately $421,000) from Bank of Beijing Co., Ltd. Zhongguancun Branch with an interest rate of LPR per annum and due on December 24, 2024. The loan was guaranteed by Beijing Guohua Wenke Financing Guarantee Co., Ltd.. As of April 30, 2025 and October 31, 2024, the outstanding balance for this loan was $412,621 and $421,479, respectively. The loan was repaid in full on December 9, 2024 and reborrowed for the same amount.

**Note 10 – Long-term Loan**

On June 20, 2023, Beijing Yading obtained a long-term loan in the amount of RMB 9,750,000 (approximately $1,333,000) from Huaxia Bank Co., Ltd. Beijing Dongsi Branch with an interest rate of LPR per annum and due on June 20, 2026. The loan is secured by the Company's CEO's residential property. As of April 30, 2025 and October 31, 2024, the outstanding balance for this loan was $1,341,017 and $1,369,805, respectively.

On December 4, 2023, the Company obtained a long-term loan in the principal amount of $2,150,000 from Sinovation Fund IV, L.P. ("Sinovation"). The loan has a two-year term, with the principal and accrued interest due for repayment on the maturity date. Unless Sinovation exercises the Call Option (as defined below) on or before the maturity date, the loan will accrue interest at an annual rate of 12%, or at a rate of 18% ("Default Rate") in the event of a default by the Company. In the event that the Company fails to pay any

amount due as principal or the interest on the maturity date, (i) the interest will accrue at the Default Rate from the maturity date through the date of the actual payment, and (ii) a surcharge interest at the rate of 0.05% per diem will also accrue on the outstanding loan balance. The loan is guaranteed by the Company's CEO and one of the its ordinary shareholder (the "Shareholder"). The Shareholder has agreed to grant to Sinovation, a call option ("Call Option") over 1,723,367 ordinary shares of the Company. Upon the exercise of this Call Option, such ordinary shares will be reclassified as Series Angel preferred shares, which shall have the rights, privileges and restrictions ranking pari passu with Series A-1 preferred shares. The Call Option shall be exercisable at any time after the call agreement is executed and will expire on December 4, 2025. If Sinovation exercises the Call Option, it waives the right to claim repayment of the $2,150,000 loan. In June 2025, Sinovation exercised the Call Option and the loan was considered repaid.

**Note 11 – Related Party Transactions**

**Due from related party**

As of April 30, 2025 and as of October 31, 2024, the balance due from related party was $186,381 and $190,382, respectively. The balance represents multiple advances provided to a related party company, which is 86.43% owned by the Company's Chairman, to support its working capital needs. The balance was short-term in nature, unsecured, repayable on demand, and bears no interest. The Company historically has not experienced an uncollectible receivable from the related party. Management believes that the related party receivable is fully collectable. Therefore, no Allowance for credit losses is deemed to be required on its due from related party at April 30, 2025 and as of October 31, 2024. During the six months ended April 30, 2025 and 2024, the Company advances to the related party company nil and nil, respectively, and received nil and $9,439, respectively, for repayment.

**Due to related parties**

Due to related party consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **April 30,**<br>**2025** | **October 31,**<br>**2024** |
| Jingpeng Guo (1) | $11003 | $11239 |
| Ye Li (2) | 1705 | 1742 |
| Wei Zhu (3) | 121035 | 123634 |
| Xiamen Heying (defined below) (4) | 69073 | 70556 |
| Total | $202817 | $207171 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Vice President of the Company

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Director of the Company

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Chairman and Chief Executive Office of the Company

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Xiamen Heying Information Technology Ltd. ("Xiamen Heying"), which was 86.43% owned by Mr. Wei Zhu

The balance of due to related parties represents expenses paid by these related parties on behalf of the Company and advances from the related parties for working capital. During the six months ended April 30, 2025 and 2024, the Company borrowed nil and nil-, respectively, from related parties and repaid nil and $119,826, respectively, to such related parties. The related parties' borrowings are short-term in nature, non-interest bearing, unsecured and repayable on demand.

**Note 12 – Lease**

All of the Company's leases are classified as operating leases and primarily consist of real estate leases for corporate offices and other facilities. The Company's lease agreements do not contain any residual value guarantees, restrictions or covenants. Cash paid for lease expenses was approximately $20,186 and $73,133 for the years ended April 30, 2025 and 2024, respectively.

The following table presents operating lease cost reported in rent expenses on the consolidated statements of operations and comprehensive income/(loss) related to the Company's leases:

---

| | | |
|:---|:---|:---|
|  | **For the six months ended April 30,** | **For the six months ended April 30,** |
|  | **2025** | **2024** |
| Operating lease expense | $15601 | $33121 |

---

**Note 13 – Mezzanine Equity**

The Company was authorized to issue 9,777,384 shares of preferred shares with a par value of $0.0001 each, of which, (i) 1,476,741 shares are designated as Series A-1 Preferred Shares, (ii) 601,884 shares are designated as Series A-2 Preferred Shares, (iii) 2,054,487 shares are designated as Series B-1 Preferred Shares, (iv) 3,668,728 shares are designated as Series B-2 Preferred Shares, and (v) 1,975,544 shares are designated as Series B+ Preferred Shares.

Since inception to October 31, 2022, 9,777,384 preferred shares were issued and outstanding. There was no additional issuance since October 31, 2022 to date. The following table summarized the preferred shares outstanding as of April 30, 2025:

---

| | | | |
|:---|:---|:---|:---|
| <br>**Issuance Date** | <br>**Class of Shares** | <br>**Warrants** | **Number**<br>**of Shares** |
| March 8, 2019 | Series A-1 Preferred Shares |  | 1476741 |
| March 8, 2019 | Series A-2 Preferred Shares |  | 601884 |
| October 15, 2019 | Series B-1 Preferred Shares |  | 1630545 |
| December 22, 2020 | Series B-1 Preferred Shares | Series B-1 warrant | 423942 |
| June 21, 2021 | Series B-2 Preferred Shares |  | 2934983 |
| June 21, 2021 | Series B-2 Preferred Shares |  | 733745 |
| June 13, 2022 | Series B+ Preferred Shares | Series B+ warrant | 372429 |
| June 13, 2022 | Series B+ Preferred Shares | Series B+ warrant | 1241431 |
| June 13, 2022 | Series B+ Preferred Shares | Series B+ warrant | 198629 |
| June 21, 2022 | Series B+ Preferred Shares |  | 163055 |
|  |  |  | **9777384** |

---

In connection with the preferred shares issuances, the Company issued warrants to its preferred shareholders to purchase a total of 423,942 shares of Series B-1 preferred shares ("Series B-1 Warrant") and 1,812,489 shares of Series B+ preferred shares ("Series B+ Warrant") as of October 31, 2022. There was no additional issuance since October 31, 2022 to date.

The Series B-1Warrants have an exercise price of $3.0665 per share. The Series B+ Warrants have an exercise price of $6.1329 per share.

Certain rights, preferences and privileges of the preferred shares are as follows:

Dividends Rights

The directors may declare dividends and distributions on preferred shares in issue and authorize payment of the dividends or distributions out of the funds of the Company lawfully available therefor. No dividend or distribution shall be paid except out of the realized or unrealized profits of the Company, or out of the share premium account or as otherwise permitted by the Statute.

Liquidation Rights

In the event of any liquidation, dissolution or winding up of the Company, the holders of the preferred shares shall be entitled to receive for each preferred shares held by such holder, on parity with each other and prior and in preference to any distribution of any of the assets or funds of the Company to the holders of any other class or series of shares by reason of their ownership of such shares, an amount equal to the sum of (i) 100% of the issue price, (ii) an compound return at an annual interest rate of 10% for each year, and (iii) any and all accrued or declared but unpaid dividends on such preferred shares. The remaining liquidation funds shall be distributed ratably among the ordinary shareholders and the preferred shareholders in proportion to the number of shares held by them.

Conversion Rights

The holders of the preferred shares shall have the rights described below with respect to the conversion of the preferred shares into ordinary shares:

● Any preferred share may, at the option of the holder, be converted at any time after the date of issuance of such shares, into ordinary shares based on the then-effective conversion price

● Each preferred share shall automatically be converted into ordinary shares based on the then-effective conversion price for such preferred share in effect at the time immediately upon the closing of a qualified IPO

The conversion price shall be adjusted and re-adjusted from time to time if as a result of share split, division, combination, dividend, reorganization, mergers, consolidations, re-classifications, exchanges, substitutions, recapitalization or similar events.

Voting Rights

The holder of any preferred share issued and outstanding, whether in person or by proxy, shall have one vote for each preferred share held by such holder. Moreover, the rights relating to the capital shares, such as any amendment or change of the rights, preferences, privileges or powers of the preferred shares, or any stock split, share consolidation and others should be protective, and the Company shall not take any actions without the affirmative vote or prior written consents of the ordinary majority and the preferred majority.

Redemption Rights

Provided that a qualified IPO or a deemed liquidation event has not been consummated by the Company on or before December 31, 2027, the preferred holder has rights to require the Company redeem all or a portion of such shares at the redemption price, which shall be the sum of (x) 100% of the applicable preferred share purchase price, (y) a compound return at an annual interest rate of 10% for each year, and (z) any declared but unpaid dividends on such preferred share, upon written notice. Once received such notice, the Company shall not (and shall not permit any subsidiary to) take any action which would have the effect of delaying, undermining or restricting the redemption.

SEC Accounting Series Release No. 268 ("ASR 268") requires preferred securities that are redeemable for cash or other assets to be classified outside of permanent equity if they are redeemable (1) at a fixed or determinable price on a fixed or determinable date, (2) at the option of the holder, or (3) upon the occurrence of an event that is not solely within the control of the issuer. In accordance with applicable accounting standards, all outstanding preferred shares were qualified as redeemable securities and are classified as mezzanine equity.

As of April 30, 2024, the Company recorded $10,979,222 in accrued interest, with a 10% annual compound rate, and added it to the carrying value of the preferred shares, resulting in the carrying amount accreted to $10,980,199.

As of April 30, 2025, the Company recorded $12,890,596 in accrued interest, with a 10% annual compound rate, and added it to the carrying value of the preferred shares, resulting in the carrying amount accreted to $12,891,574.

In June 2025, all preferred shares were converted to ordinary shares.

In accounting for the issuance of the preferred shares under ASU 2020-06, the Company recorded each issuance as a single amount in its entirety according to the new framework. The new ASU eliminates the beneficial conversion and cash conversion accounting models for convertible instruments.

**Note 14 - Equity**

**Ordinary Shares**

The Company was authorized to issue 490,222,616 ordinary shares with a par value of $0.0001 each.

As of April 30, 2025 and as of October 31, 2024, 10,000,000 shares were issued and outstanding.

**2021 Performance Incentive Plan**

The Company adopted the 2021 Share Incentive Plan in September 2021 and reserved 1,764,706 ordinary shares for issuance thereunder. As of April 30, 2025 and as of October 31, 2024, the Company had issued a total of 1,764,706 shares of ordinary shares. Employees granted an option shall be categorized into two categories: Company A and Company B, each with different vesting periods.

**Stock-based Compensation**

In 2021, options to purchase an aggregate of 1,202,906 shares of ordinary shares were granted to 11 employees at an exercise price of $0.01 per share. These options were categorized under Company A. The options have terms of 10 years and were fully vested on the grant date. The fair value of the options on the date of grant using the Black-Scholes option-pricing model was $4,918,201.

In 2022, options to purchase an aggregate of 453,300 shares of ordinary shares were granted to 32 employees at an exercise price of $0.01 per share. These options were categorized under Company A. The options have terms of 10 years and were fully vested on the

grant date. The fair value of the options using the Black-Scholes option-pricing model with the assumptions below on the date of issuance was $2,780,044:

---

| | |
|:---|:---|
|  | **Company A** |
| Expected term in years | 7.17 - 7.92 |
| Stock price | $4.0886 - 6.1329 |
| Expected dividend yield | 0% |
| Volatility | 27.09% |
| Risk-free interest Rate | 1.5% |
| Initial fair value per share | $4.0886 - 6.1329 |

---

In 2021, options to purchase an aggregate of 66,000 shares of ordinary shares were granted to 7 employees at an exercise price of $2.86 per share. These options were categorized under Company B. The options have a term of 10 years, with 25% of the shares subject to the options vesting every twelve months from the grant date, contingent upon the recipient's continued service with the Company. The fair value of the options on the date of grant using the Black-Scholes option-pricing model was $136,488.

In 2022, options to purchase an aggregate of 42,500 shares of ordinary shares were granted to 2 employees at an exercise price of $2.86 per share. These options were categorized under Company B. The options have a term of 10 years, with 25% of the shares subject to the options vesting every twelve months from the grant date, contingent upon the recipient's continued service with the Company. The fair value of the options using the Black-Scholes option-pricing model with the assumptions below on the date of issuance was $165,648:

---

| | |
|:---|:---|
|  | **Company B** |
| Expected term in years | 7.17 - 8.17 |
| Stock price | $4.0886 - 6.1329 |
| Expected dividend yield | 0% |
| Volatility | 27.09% |
| Risk-free interest Rate | 1.5% |
| Initial fair value per share | $2.068 - 3.8976 |

---

During the six months ended April 30, 2025 and 2024, the Company recognized option stock-based compensation expense of $16,688 and $32,916, respectively.

**Note 15 – Commitments and Contingencies**

**Commitments**

As of April 30, 2025, there was no future minimum payments during the next five fiscal years and thereafter.

**Contingencies**

From time to time, the Company may be subject to certain legal proceedings, claims and disputes that arise in the ordinary course of business. Although the outcomes of these legal proceedings cannot be predicted, the Company does not believe these actions, in the aggregate, will have a material adverse impact on its financial position, results of operations or liquidity.

**Note 16 – Subsequent Events**

The Company entered into a share exchange agreement (the "Agreement") with Tian Ruixiang Holdings Ltd. ("TRX"), all shareholders of Ucare (the "Sellers"), and Mr. Wei Zhu serving as seller representative. Pursuant to the Agreement, the Purchaser has agreed to acquire 100% of Ucare's issued and outstanding shares from the Sellers (the "Acquisition"), in exchange for newly- issued class A ordinary shares of a par value of US$0.025 each, of TRX (the "TRX Exchange Shares").

On June 30, 2025, the Company closed the Acquisition for a purchase price of 101,486,575 TRX Exchange Shares. On the same day, the Company issued an aggregate of 10,148,658 Class A Ordinary Shares, representing 10% of the TRX Exchange Shares, to the financial consultant and/or its designees.

In accordance with ASC Topic 855, "Subsequent Events", which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before the financial statements are issued. The Company has evaluated all events or transactions that occurred after April 30, 2025, up through the date the Company issued the unaudited condensed consolidated financial statements and concluded that no other material subsequent events to be disclosed.

## Exhibit 99.3

#### Exhibit 99.3

#### UNAUDITED PRO FORMA COMBINED FINANCIAL INFORMATION
The following unaudited pro forma combined financial information combines the individual historical unaudited results of **TIAN RUIXIANG Holdings Ltd** ("TRX", "TIAN RUIXIANG", or the "Company") and Ucare Inc. ("Ucare") adjusted to give effect to the June 30, 2025 merger of Ucare. The unaudited pro forma combined statements of income for the year ended October 31, 2024 and six months ended April 30, 2025 give effect to the merger as if it had occurred on November 1, 2023, respectively, and the unaudited pro forma combined balance sheet as of October 31, 2024 gives effect to the merger as if it had occurred on November 1, 2023.

The transaction accounting adjustments for the acquisition consist of necessary adjustments to account for the merger. The aggregate preliminary consideration paid by the Company in connection with the merger was 101,486,575 shares of newly issued Class A Ordinary Shares of TRX (the "Company Shares," the "Merger Consideration"), which on June 30, 2025 were valued at $119.754.159. The assumptions and estimates for the preliminary adjustments to the unaudited pro forma combined financial information, are described in the accompanying notes, which should be read together with the unaudited pro forma combined financial information.

The unaudited pro forma combined financial statements have been prepared for illustrative purposes only and are not necessarily indicative of the operating results for the future periods. The unaudited pro forma combined financial information does not purport to represent what our consolidated results of operation or consolidated financial condition would have been had the merger actually occurred on the dates indicated and does not intend to project the future consolidated results of operation or consolidated financial condition.

------

#### TIAN RUIXIANG HOLDINGS LTD AND SUBSIDIARIES

#### UNAUDITED PRO FORMA COMBINED BALANCE SHEET
**As of October 31, 2024**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Historical** | **Historical** | | |
|  | **TIAN RUIXIANG** | **UCARE** | **Transaction**<br>**Accounting**<br>**Adjustments** | <br>**Pro Forma**<br>**Combined** |
| **ASSETS** |  |  |  |  |
| **CURRENT ASSETS:** |  |  |  |  |
| &nbsp;&nbsp;Cash | $297288 | $267369 | $(135722)<br> c | $428935 |
| &nbsp;&nbsp;Restricted cash | 698949 |  |  | 698949 |
| &nbsp;&nbsp;Short-term investments | 28090382 |  |  | 28090382 |
| &nbsp;&nbsp;Accounts receivable | 1411786 | 4594897 |  | 6006683 |
| &nbsp;&nbsp;Note receivable | 7800000 |  |  | 7800000 |
| &nbsp;&nbsp;Note receivable - related party | 1370741 |  |  | 1370741 |
| &nbsp;&nbsp;Interest receivable | 156000 |  |  | 156000 |
| &nbsp;&nbsp;Due from related party | 10097 | 190382 |  | 200479 |
| &nbsp;&nbsp;Prepaid assets and other receivable |  | 964951 |  | 964951 |
| &nbsp;&nbsp;Other current assets | 86150 | 162478 |  | 248628 |
| &nbsp;&nbsp;**Total Current Assets** | **39921393** | **6180077** | **(135722)** | **45965748** |
| **NON-CURRENT ASSETS:** |  |  |  |  |
| &nbsp;&nbsp;Right-of-use assets, operating leases, net | 52853 |  |  | 52853 |
| &nbsp;&nbsp;Note receivable |  |  |  |  |
| &nbsp;&nbsp;Property and equipment, net | 4948 |  |  | 4948 |
| &nbsp;&nbsp;Fixed assets, net |  | 66963 |  | 66963 |
| &nbsp;&nbsp;Deferred tax assets |  | 934464 |  | 934464 |
| &nbsp;&nbsp;Intangible assets |  |  | 36431000<br> b | 36431000 |
| &nbsp;&nbsp;Goodwill |  |  | 95121943<br> b | 95121943 |
| &nbsp;&nbsp;**Total Non-current Assets** | **57801** | **1001427** | **131552943** | **132612171** |
| **Total Assets** | $**39979194** | $**7181504** | $**131417221** | $**178577919** |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |  |  |
| **CURRENT LIABILITIES:** |  |  |  |  |
| &nbsp;&nbsp;Operating lease liabilities | $24820 | $— | $— | $24820 |
| &nbsp;&nbsp;Taxes payable | 732849 | 263494 |  | 996343 |
| &nbsp;&nbsp;Salary payable | 910675 | 1451471 |  | 2362146 |
| &nbsp;&nbsp;Accrued liabilities and other payables | 1563520 | 1538398 | 85224<br> c | 3187142 |
| &nbsp;&nbsp;Loan payable | 983421 |  |  | 983421 |
| &nbsp;&nbsp;Due to related parties | 1703421 | 207171 |  | 1910592 |
| &nbsp;&nbsp;Accounts payable |  | 1039051 |  | 1039051 |
| &nbsp;&nbsp;Contract liabilities |  | 1464476 |  | 1464476 |
| &nbsp;&nbsp;Short term loans |  | 421479 |  | 421479 |
| &nbsp;&nbsp;**Total Current Liabilities** | **5918706** | **6385540** | **85224** | **12389470** |
| **NON-CURRENT LIABILITIES:** |  |  |  |  |
| &nbsp;&nbsp;Operating lease liabilities - noncurrent portion | 29867 |  |  | 29867 |
| &nbsp;&nbsp;Loan payable | 140491 |  |  | 140491 |
| &nbsp;&nbsp;Long term loans |  | 3519805 | (2150000)<br> d | 1369805 |
| &nbsp;&nbsp;**Total Non-current Liabilities** | **170358** | **3519805** | **(2150000)** | **1540163** |
| **Total Liabilities** | $**6089064** | $**9905345** | $**(2064776)** | $**13929633** |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Historical** | **Historical** | | |
|  | **TIAN RUIXIANG** | **UCARE** | **Transaction**<br>**Accounting**<br>**Adjustments** | <br>**Pro Forma**<br>**Combined** |
| &nbsp;&nbsp;**MEZZANINE EQUITY:** |  |  |  |  |
| &nbsp;&nbsp;Series A-1 preferred shares ($0.0001 par value, 1,476,741 shares authorized; 1,476,741 shares issued and outstanding at October 31, 2024, and 2023) | $— | $1696586 | $(1696586)<br> a | $— |
| &nbsp;&nbsp;Series A-2 preferred shares ($0.0001 par value, 601,884 shares authorized; 601,884 shares issued and outstanding at October 31, 2024, and 2023) |  | 848279 | (848279)<br> a |  |
| &nbsp;&nbsp;Series B-1 preferred shares ($0.0001 par value, 2,054,487 shares authorized; 2,054,487 shares issued and outstanding at October 31, 2024, and 2023) |  | 2434918 | (2434918)<br> a |  |
| &nbsp;&nbsp;Series B-2 preferred shares ($0.0001 par value, 3,668,728 shares authorized; 3,668,728 shares issued and outstanding at October 31, 2024, and 2023) |  | 5046942 | (5046942)<br> a |  |
| &nbsp;&nbsp;Series B+ preferred shares ($0.0001 par value, 1,975,544 shares authorized; 1,975,544 shares issued and outstanding at October 31, 2024, and 2023) |  | 2864849 | (2864849)<br> a |  |
| &nbsp;&nbsp;**Total mezzanine equity** | **—** | **12891574** | **(12891574)** | **—** |
| &nbsp;&nbsp;**TIAN RUIXIANG Holdings Ltd & UCARE Shareholders' Equity:** |  |  |  |  |
| &nbsp;&nbsp;Ordinary shares: $0.025 par value; 40,000,000 shares authorized; |  |  |  |  |
| &nbsp;&nbsp;Ordinary shares ($0.0001 par value, 490,222,616 shares authorized; 10,000,000 shares issued and outstanding at October 31, 2024, and 2023) |  | 1000 | (1000)<br> a |  |
| &nbsp;&nbsp;Class A ordinary shares: $0.025 par value; 36,000,000 shares authorized; 2,334,353 and 674,949 shares issued and outstanding at October 31, 2024 and 2023, respectively | 58359 |  | 2537164<br> b | 2849239 |
|  |  |  | 253716<br> c |  |
| &nbsp;&nbsp;Class B ordinary shares: $0.025 par value; 4,000,000 shares authorized; 50,000 shares issued and outstanding at October 31, 2024 and 2023 | 1250 |  |  | 1250 |
| &nbsp;&nbsp;Additional paid-in capital | 48760856 | 31837949 | (34561790)<br> a | 188924494 |
|  |  |  | 11721700<br> c |  |
|  |  |  | 129015779<br> b |  |
|  |  |  | 2150000<br> d |  |
| &nbsp;&nbsp;Subscription receivable |  | (1000) | 1000<br> a |  |
| &nbsp;&nbsp;Accumulated deficit | (12332150) | (46750013) | 46750013<br> a | (24528223) |
|  |  |  | (12196073)<br> c |  |
| &nbsp;&nbsp;Statutory reserve | 316684 |  |  | 316684 |
| &nbsp;&nbsp;Accumulated other comprehensive loss | (2915271) | (703351) | 703351<br> a | (2915560) |
|  |  |  | (289) |  |
| &nbsp;&nbsp;**Total TIAN RUIXIANG Holdings Ltd shareholders' equity** | **33889728** | **(15615415)** | **146373571** | **164647884** |
| &nbsp;&nbsp;Non-controlling interest | 402 |  |  | 402 |
| &nbsp;&nbsp;Total Equity | 33890130 | (15615415) | 146373571 | 164648286 |
| &nbsp;&nbsp;**Total Liabilities, Mezzanine Equity and Shareholders' Deficits** | $**39979194** | $**7181504** | $**131417221** | $**178577919** |

---

------

#### TIAN RUIXIANG HOLDINGS LTD AND SUBSIDIARIES

#### UNAUDITED PRO FORMA COMBINED STATEMENT OF INCOME
**For the Six Months Ended April 30, 2025**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Historical** | **Historical** | | |
|  | **TIAN RUIXIANG** | **UCARE** | **Transaction**<br>**Accounting**<br>**Adjustments** | <br>**Pro Forma**<br>**Combined** |
| **REVENUE** | $2823312 | 2012283 |  | 4835595 |
| **COST OF REVENUE** |  | 289444 |  | 289444 |
| &nbsp;&nbsp;**Gross Profit** | **2823312** | **1722839** | **—** | **4546151** |
| **OPERATING EXPENSES** |  |  |  |  |
| &nbsp;&nbsp;Selling and marketing | 4491649 | 650798 |  | 5142447 |
| &nbsp;&nbsp;General and administrative - professional fees | 1275960 |  | 12196073<br> a | 13472033 |
| &nbsp;&nbsp;General and administrative - compensation and related benefits | 182963 |  |  | 182963 |
| &nbsp;&nbsp;General and administrative | 103731 | 637900 |  | 741631 |
| &nbsp;&nbsp;Research and development expenses |  | 569661 |  | 569661 |
| &nbsp;&nbsp;**Total Operating Expenses** | **6054303** | **1858359** | **12196073** | **20108735** |
| &nbsp;&nbsp;**INCOME (LOSS) FROM OPERATIONS** | (3230991) | (135520) | (12196073) | (15562584) |
| &nbsp;&nbsp;**OTHER INCOME (EXPENSE)** |  |  |  |  |
| &nbsp;&nbsp;Interest income (expense), net | 616882 | (48294) |  | 568588 |
| &nbsp;&nbsp;Loss on settlement of payables – related parties | (257558) |  |  |  |
| &nbsp;&nbsp;Other expense | (12662) | (9743) |  | (22405) |
| &nbsp;&nbsp;**Total Other Income (Expense), net** | **346662** | **(58037)** | **—** | **546183** |
| &nbsp;&nbsp;&nbsp;&nbsp;**(LOSS) INCOME BEFORE INCOME TAXES** | (2884329) | (193557) | (12196073) | (15016401) |
| &nbsp;&nbsp;INCOME TAX EXPENSE | 6033 | 54793 |  | 60826 |
| &nbsp;&nbsp;**NET (LOSS) INCOME** | $**(2890362)** | $**(248350)** | $**(12196073)** | $**(15077227)** |
| &nbsp;&nbsp;LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST |  |  |  |  |
| &nbsp;&nbsp;**NET LOSS ATTRIBUTABLE TO TIAN RUIXIANG HOLDINGS LTD ORDINARY SHAREHOLDERS** | $**(2890362)** | $**(248350)** | $**(12196073)** | $**(15334785)** |
| &nbsp;&nbsp;**NET LOSS PER ORDINARY SHARE ATTRIBUTABLE TO TIAN RUIXIANG HOLDINGS LTD ORDINARY SHAREHOLDERS:** |  |  |  |  |
| &nbsp;&nbsp;Basic and diluted | $(0.31) |  | $(1.20) | $(0.79) |
| &nbsp;&nbsp;**WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING:** |  |  |  |  |
| &nbsp;&nbsp;Basic and diluted | 9300741 |  | 10148658<br> b | 19449399 |
| &nbsp;&nbsp;**COMPREHENSIVE LOSS:** |  |  |  |  |
| &nbsp;&nbsp;**NET LOSS** | $**(2890362)** | $**(248350)** | $**(12196073)** | $**(15077227)** |
| &nbsp;&nbsp;OTHER COMPREHENSIVE INCOME (LOSS) |  |  |  |  |
| &nbsp;&nbsp;Unrealized foreign currency translation gain (loss) | (598083) | (217383) | 289 | (815177) |
| &nbsp;&nbsp;COMPREHENSIVE LOSS | (3488445) | (465733) | (12195784) | (16149962) |
| &nbsp;&nbsp;LESS: COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTEREST | (8) |  |  | (8) |
| &nbsp;&nbsp;**COMPREHENSIVE LOSS ATTRIBUTABLE TO TIAN RUIXIANG HOLDINGS LTD ORDINARY SHAREHOLDERS** | $**(3488437)** | $**(465733)** | $**(12195784)** | $**(16149954)** |

---

------

#### TIAN RUIXIANG HOLDINGS LTD AND SUBSIDIARIES

#### UNAUDITED PRO FORMA COMBINED STATEMENT OF INCOME
**For the Year Ended October 31, 2024**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Historical** | **Historical** | | |
|  | **TIAN RUIXIANG** | **UCARE** | **Transaction**<br>**Accounting**<br>**Adjustments** | <br>**Pro Forma**<br>**Combined** |
| **REVENUE** | $3219336 | 5392700 |  | 8612036 |
| **COST OF REVENUE** |  | 559311 |  | 559311 |
| &nbsp;&nbsp;**Gross Profit** | **3219336** | **4833389** | **—** | **8052725** |
| **OPERATING EXPENSES** |  |  |  |  |
| &nbsp;&nbsp;Selling and marketing | 3372829 | 1990708 |  | 5363537 |
| &nbsp;&nbsp;General and administrative - professional fees | 934732 |  | 12196073<br> a | 13130805 |
| &nbsp;&nbsp;General and administrative - compensation and related benefits | 1701489 |  |  | 1701489 |
| &nbsp;&nbsp;General and administrative | 178232 | 763505 |  | 941737 |
| &nbsp;&nbsp;Research and development expenses |  | 1265086 |  | 1265086 |
| &nbsp;&nbsp;Impairment loss | 1677301 |  |  | 1677301 |
| &nbsp;&nbsp;**Total Operating Expenses** | **7864583** | **4019299** | **12196073** | **24079955** |
| &nbsp;&nbsp;**INCOME (LOSS) FROM OPERATIONS** | (4645247) | 814090 | (12196073) | (16027230) |
| &nbsp;&nbsp;**OTHER INCOME (EXPENSE)** |  |  |  |  |
| &nbsp;&nbsp;Interest income (expense) | 700884 | (79601) |  | 621283 |
| &nbsp;&nbsp;Other expense | (442) | (20908) |  | (21350) |
| &nbsp;&nbsp;**Total Other Income (Expense), net** | **700442** | **(100509)** | **—** | **599933** |
| &nbsp;&nbsp;&nbsp;&nbsp;**(LOSS) INCOME BEFORE INCOME TAXES** | (3944805) | 713581 | (12196073) | (15427297) |
| &nbsp;&nbsp;INCOME TAX EXPENSE | 42123 | 96549 |  | 138672 |
| &nbsp;&nbsp;**NET (LOSS) INCOME** | $**(3986928)** | $**617032** | $**(12196073)** | $**(15565969)** |
| &nbsp;&nbsp;LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST | (3) |  |  | (3) |
| &nbsp;&nbsp;**NET LOSS ATTRIBUTABLE TO TIAN RUIXIANG HOLDINGS LTD ORDINARY SHAREHOLDERS** | $**(3986931)** | $**617032** | $**(12196073)** | $**(15565972)** |
| &nbsp;&nbsp;**NET LOSS PER ORDINARY SHARE ATTRIBUTABLE TO TIAN RUIXIANG HOLDINGS LTD ORDINARY SHAREHOLDERS:** |  |  |  |  |
| &nbsp;&nbsp;Basic and diluted | $(2.42) |  | $(1.20) | $(1.32) |
| &nbsp;&nbsp;**WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING:** |  |  |  |  |
| &nbsp;&nbsp;Basic and diluted | 1646378 |  | 10148658<br> b | 11795036 |
| &nbsp;&nbsp;**COMPREHENSIVE LOSS:** |  |  |  |  |
| &nbsp;&nbsp;**NET LOSS** | $**(3986928)** | $**617032** | $**(12196073)** | $**(15565969)** |
| &nbsp;&nbsp;OTHER COMPREHENSIVE INCOME (LOSS) |  |  |  |  |
| &nbsp;&nbsp;Unrealized foreign currency translation gain (loss) | 766585 | (114133) | 289 | 652741 |
| &nbsp;&nbsp;COMPREHENSIVE LOSS | (3220343) | 617032 | (12195784) | (14799095) |
| &nbsp;&nbsp;LESS: COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTEREST | 8 |  |  | 8 |
| &nbsp;&nbsp;**COMPREHENSIVE LOSS ATTRIBUTABLE TO TIAN RUIXIANG HOLDINGS LTD ORDINARY SHAREHOLDERS** | $**(3220351)** | $**617032** | $**(12195784)** | $**(14799103)** |

---

------

#### NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

#### Note 1. Description of the Transaction
On May 30, 2025, the Company and its wholly-owned subsidiary, VitaCare Limited, a business company incorporated under the laws of the British Virgin Islands (the "Purchaser"), entered into a share exchange agreement (the "Agreement") with Ucare Inc., an exempted company incorporated under the laws of the Cayman Islands ("Ucare"), all shareholders of Ucare (the "Sellers"), and Mr. Wei Zhu serving as seller representative. Ucare, through its intermediate holding subsidiaries and PRC operating entities, is primarily engaged in developing innovative healthcare solutions that enables providers, payers, and institutions to reduce fraud, abuse, waste, and administrative costs.

Pursuant to the Agreement, the Purchaser has agreed to acquire 100% of Ucare's issued and outstanding shares from the Sellers, in exchange for newly-issued class A ordinary shares (the "Class A Ordinary Shares") of a par value of $0.025 each, of the Company (the "TRX Exchange Shares"). The exact number of TRX Exchange Shares to be issued, which is 101,486,575, is be calculated by dividing $150 million by the weighted average closing price of the Class A Ordinary Shares over the three-month period immediately preceding the date of the Agreement, which corresponds to a per-share price of $1.478. The TRX Exchange Shares to be issued to the Sellers will represent approximately 91.75% of the Company's total issued and outstanding Class A Ordinary Shares and approximately 13.70% of total voting power of the Company immediately following completion of the transaction.

The TRX Exchange Shares will initially be held in escrow and subsequently released to the Sellers based on Ucare's achievement of specified revenue-based performance targets. Specifically, the TRX Exchange Shares will be proportionally released from escrow based upon Ucare's achievement of annual revenue targets over clearly defined evaluation periods during the 36 months following the closing date. If, by the end of the 36-month performance evaluation period, the cumulative revenue of Ucare does not reach or exceed RMB 150 million (approximately $20.6 million), any unreleased TRX Exchange Shares will automatically revert to the Company and be forfeited by the Sellers.

In addition, if Ucare generates net income and distributes such income to the Company during the performance periods, the Company may issue additional Class A Ordinary Shares ("Earn-Out Shares") to certain designated earn-out recipients. The number of Earn-Out Shares is calculated as the earnings distribution amount multiplied by 15, divided by the weighted average closing price of the Company's Class A Ordinary Shares over the three-month period preceding the end of the applicable performance period.

The completion of the transaction is subject to customary closing conditions, including, but not limited to, obtaining required regulatory approvals. The Agreement also includes "make-good" obligations, pursuant to which certain members of Ucare's management team have agreed to compensate the Company in cash for any net losses incurred by Ucare during the performance evaluation periods. Additionally, the Agreement provides the Sellers with certain registration rights, allowing for the registration of their TRX Exchange Shares under specified conditions as detailed within the Agreement.

Upon closing, Ucare will become a wholly-owned subsidiary of VitaCare Limited and thereby an indirect wholly-owned subsidiary of the Company. Certain key management personnel, including Mr. Wei Zhu, Chief Executive Officer of Ucare, will continue to manage Ucare's post-closing pursuant to conditions stipulated in the Agreement, and they will not assume any board or management positions within the Company.

The Agreement and the transactions contemplated thereby have been unanimously approved by the board of directors of the Company. In connection with the transactions, on December 27, 2024, and April 17, 2025, the Company entered into (i) a Financial Advisory Engagement Letter and (ii) Amendment No. 1 to the Financial Advisory Engagement Letter (collectively, the "Financial Advisory Agreements") with a certain consultant (the "Consultant"). Pursuant to the Financial Advisory Agreements, the Company agreed to issue to the Consultant and/or its designees an aggregate of 10% of the TRX Exchange Shares issued by the Company in the transactions, as consideration for the Consultant's financial advisory services in connection with the transactions. The shares to be issued to the Consultant and/or its designees will be issued in reliance on the exemption from registration provided by Regulation S and/or Regulation D under the Securities Act of 1933, as amended (the "Securities Act").

On June 30, 2025, the Company closed the acquisition for a purchase price of 101,486,575 Shares of its Class A Ordinary Shares. On the same day, the Company issued an aggregate of 10,148,658 shares of its Class A Ordinary Shares, representing 10% of the TRX Exchange Shares, to the Consultant and/or its designees.

------

#### Note 2. Basis of Presentation
The unaudited pro forma combined balance sheet as of October 31, 2024 and the unaudited pro forma combined statement of incomes for the year ended October 31, 2024 and six months ended April 30, 2025 are based on the historical financial statements of TRX and the combined financial statements of Ucare. The unaudited pro forma combined balance sheet was prepared using the TRX condensed consolidated balance sheet, the Ucare combined balance sheet and gives effect to the transaction as if it had occurred on October 31, 2024. The unaudited pro forma combined statements of income were prepared using the TRX condensed consolidated statements of income, the Ucare combined statement of income and gives effect to the transaction as if it had occurred on November 1, 2023.

The unaudited pro forma combined financial statements were accounted for using the acquisition method in accordance with business combination accounting guidance as provided by Financial Accounting Standards Board Accounting Standards Codification 805, Business Combinations ("ASC 805"). Under the acquisition method of accounting, the Company allocates the purchase price of a business acquisition based on the fair value of the identifiable tangible and intangible assets. Goodwill is recognized to the extent that the purchase consideration exceeds the assets acquired and liabilities assumed. The Company uses its best estimate to determine the fair value of the assets acquired and liabilities assumed. During the measurement period, which can be up to one year after the acquisition date, the Company can make adjustments to the fair value of the assets acquired and liabilities assumed, with the offset being an adjustment to goodwill.

The unaudited pro forma combined financial statements have been prepared for illustrative purposes only and are not necessarily indicative of the operating results for the future periods. The unaudited pro forma combined financial statements were based on Transaction Accounting Adjustments and do not reflect any operating efficiencies, synergies or cost savings that the Company may achieve, or any additional operating expenses that may be incurred with respect to the combined company.

The unaudited pro forma combined financial statements should be read in conjunction with: TRX's audited financial statements included in its Annual Report on Form 20-F for the annual period ended October 31, 2024, filed with the Securities and Exchange Commission ("SEC") on July 7, 2025 ("TRX 20-F").

#### Note 3. Estimated Merger Consideration and Preliminary Purchase Price Allocation
The transaction was accounted for as a business combination in accordance with ASC 805, and as such, assets acquired, liabilities assumed, and consideration transferred were recorded at their estimated fair values on the acquisition date. The fair value of the assets and liabilities in the unaudited pro forma combined financial statements are based upon a preliminary assessment of fair value and may change as valuations for certain tangible assets and intangible assets are finalized and the associated income tax impacts are determined. The Company expects to finalize the purchase price allocation as soon as practicable, but no longer than one year from the acquisition date.

------

The following table summarizes the preliminary allocation of the consideration paid for Ucare to the preliminary estimated fair value of the assets acquired and liabilities assumed at the acquisition date, with the excess recorded to goodwill.

---

| | |
|:---|:---|
| Shares consideration (a) | $131552943 |
| **Total consideration** | $131552943 |
| **Assets acquired:** |  |
| Cash and cash equivalents | $244019 |
| Accounts receivable | 4371598 |
| Prepaid assets and other receivable | 309028 |
| Inventories |  |
| Fixed assets, net | 35119 |
| Right-of-use assets |  |
| Other non-current assets | 863007 |
| Intangible assets-customer relationship  | 36431000 |
| Goodwill (b) | 96266492 |
| **Total assets acquired** | 138520263 |
| **Liabilities assumed:** |  |
| Accounts payable | 955812 |
| Other payables | 2492922 |
| Other payables - related party | 12872 |
| Contract Liabilities | 1729577 |
| Long term debt | 1776137 |
| **Total liabilities assumed** | 6967320 |
| **Estimated fair value of net assets acquired** | $131552943 |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;(a) The total consideration includes 101,486,575 escrow shares valued at $1.18 per share. It also accounts for an expected earn-out share issuance valued at $27,766,005 and a reduction for a performance contingent liability of ($15,967,221)

&nbsp;&nbsp;&nbsp;&nbsp;(b) The above purchase price allocation does not give effect to certain pro forma adjustments that were included in the unaudited pro forma condensed combined financial statements that would ultimately impact the purchase price allocation. For any proforma adjustments that were not captured within the closing balance sheet at the time the purchase price allocation was performed, an adjustment was made to goodwill.

The preliminary purchase price allocation above, which is as of the acquisition date of June 30, 2025, has been used to prepare the transaction accounting adjustments in the unaudited pro forma combined balance sheet and unaudited pro forma combined statement of income.

------

#### Note 4. Notes to Unaudited Pro Forma Combined Balance Sheet
The following is a description of the preliminary transaction accounting adjustments reflected in the unaudited pro forma combined balance sheet.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Represents the elimination of the historical accumulated deficit of Ucare .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Represents the issuance of 4,680,000 Class A ordinary shares in Escrow Account and the Goodwill adjustment reflects the purchase price paid in excess of the preliminary estimated fair value of assets acquired and liabilities assumed. See Note 3 for further details on the purchase price allocation and goodwill.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Represents estimated non-recurring transaction costs of approximately $12,196,000 that were incurred by TRX subsequent to October 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Represents payment of long term debt through issuance of shares

#### Note 5. Notes to Unaudited Pro Forma Combined Statement of Income
The following is a description of preliminary transaction accounting adjustments reflected in the unaudited pro forma combined statement of income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Represents estimated non-recurring transaction costs of approximately $12,196,000 that were incurred by TRX subsequent to October 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The pro froma combined basic and diluted weighted average shares outstanding has been calculated using the historical weighted average shares outstanding of TRX ordinary shares and the additional 101,486,575 shares issued in connection with the merger for the six months ended April 30, 2025 and the year to date ended October 31, 2024 .

------