# EDGAR Filing Document

**Accession Number:** 0002030954
**File Stem:** 0001493152-26-023745
**Filing Date:** 2026-5
**Character Count:** 98090
**Document Hash:** 29eb6caae3eb168372567c186f71ce56
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-26-023745.hdr.sgml**: 20260515

**ACCESSION NUMBER**: 0001493152-26-023745

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 73

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260515

**DATE AS OF CHANGE**: 20260515

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** TEN Holdings, Inc.
- **CENTRAL INDEX KEY:** 0002030954
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-BUSINESS SERVICES, NEC [7389]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 991291725
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-42515
- **FILM NUMBER:** 26987058

**BUSINESS ADDRESS:**
- **STREET 1:** 1170 WHEELER WAY
- **CITY:** LANGHORNE
- **STATE:** PA
- **ZIP:** 19047
- **BUSINESS PHONE:** 1.800.909.9598

**MAIL ADDRESS:**
- **STREET 1:** 1170 WHEELER WAY
- **CITY:** LANGHORNE
- **STATE:** PA
- **ZIP:** 19047

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

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 10-Q**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended March 31, 2026**

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from to** 

**Commission File Number: 001-42515**

**TEN Holdings, Inc.**

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

---

| | |
|:---|:---|
| **Nevada** | **99-1291725** |
| **(State or other jurisdiction of**<br> **incorporation or organization)** | **(I.R.S. Employer**<br> **Identification No.)** |

---

**1170 Wheeler Way**

**Langhorne, PA 19047**

**(Address of principal executive offices) (Zip Code)**

**1.800.909.9598** **(Registrant's telephone number, including area code)**

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each Class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock | XHLD | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of May 12, 2026, there were 3,977,443 shares of common stock, par value $0.0001 per share, outstanding.

**TEN Holdings, Inc.**

**Form 10-Q**

**For the Quarterly Period Ended March 31, 2026**

**Contents**

---

| | | |
|:---|:---|:---|
|  |  | Page |
| Part I | [Financial Information](#a_001) | 1 |
| Item 1 | [Financial Statements](#a_002) | 1 |
|  | [Condensed Consolidated Balance Sheets as of March 31, 2026 (Unaudited) and December 31, 2025](#F_001) | 1 |
|  | [Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2026 and 2025 (Unaudited)](#F_002) | 2 |
|  | [Condensed Consolidated Statements of Changes in Stockholders' Equity for the Three Months Ended March 31, 2026 and 2025 (Unaudited)](#F_003) | 3 |
|  | [Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2026 and 2025 (Unaudited)](#F_004) | 4 |
|  | [Notes to Unaudited Condensed Consolidated Financial Statements](#F_005) | 5 |
| Item 2 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#a_003) | 18 |
| Item 3 | [Quantitative and Qualitative Disclosures about Market Risk](#a_004) | 24 |
| Item 4 | [Controls and Procedures](#a_005) | 24 |
| Part II | [Other Information](#a_006) | 25 |
| Item 1 | [Legal Proceedings](#a_007) | 25 |
| Item 1A | [Risk Factors](#a_008) | 25 |
| Item 2 | [Unregistered Sales of Equity Securities and Use of Proceeds](#a_009) | 25 |
| Item 3 | [Defaults Upon Senior Securities](#a_010) | 25 |
| Item 4 | [Mine Safety Disclosures](#a_011) | 25 |
| Item 5 | [Other Information](#a_012) | 25 |
| Item 6 | [Exhibits](#a_013) | 26 |
| [Signatures](#a_014) | [Signatures](#a_014) | 27 |

---

i

**TEN Holdings, Inc.**

**PART I - FINANCIAL INFORMATION**

Item 1. <u>Financial Statements</u>

**TEN HOLDINGS, INC. AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS**

**(in thousands, except share and per share data)**

---

| | | |
|:---|:---|:---|
|  | **March 31,** | **December 31,** |
|  | **2026** | **2025** |
|  | **(Unaudited)** | **(Audited)** |
| **ASSETS** |  |  |
| Current Assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $79 | $1631 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 596 | 635 |
| &nbsp;&nbsp;&nbsp;Receivable due from related party | 4300 | 5400 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 2408 | 2759 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current Assets | 7383 | 10425 |
| Non-current Assets: |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 161 | 172 |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets, net | 436 | 455 |
| &nbsp;&nbsp;&nbsp;Other assets |  | 914 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Non-current Assets | 597 | 1541 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Assets | $7980 | $11966 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Trade accounts payable | $444 | $284 |
| &nbsp;&nbsp;&nbsp;Other payable and accrued expenses | 2112 | 1900 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 259 | 430 |
| &nbsp;&nbsp;&nbsp;Current portion of operating lease liabilities | 82 | 80 |
| &nbsp;&nbsp;&nbsp;Short-term loans - Related party | 3021 | 4571 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current Liabilities | 5918 | 7265 |
| Non-current Liability: |  |  |
| &nbsp;&nbsp;&nbsp;Non-current operating lease liabilities | 400 | 422 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Non-current Liability | 400 | 422 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities | 6318 | 7687 |
| &nbsp;&nbsp;&nbsp;Commitment and Contingencies (Note 6) |  |  |
| Stockholders' Equity: |  |  |
| Preferred stock; $0.0001 par value – 1,000,000 shares authorized as of March 31, 2026 and December 31, 2025; No shares issued or outstanding as of March 31, 2026 and December 31, 2025 |  |  |
| Common stock, $0.0001 par value – 250,000,000 shares authorized as of March 31, 2026 and December 31, 2025; 3,977,443 shares issued and outstanding as of March 31, 2026 and December 31, 2025 | \* | \* |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 25996 | 25710 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (24334) | (21431) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Stockholders' Equity | 1662 | 4279 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities & Stockholders' Equity | $7980 | $11966 |

---

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

\* Less than $1,000

**TEN HOLDINGS, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

**(in thousands, except share and per share data)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** |
| Revenue | $853 | $739 |
| Cost of revenue | (307) | (186) |
| Gross profit | 546 | 553 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;Selling, General and Administrative Expenses | 3378 | 5166 |
| &nbsp;&nbsp;&nbsp;Depreciation expenses | 11 | 149 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 3389 | 5315 |
| Loss from operations | (2843) | (4762) |
| Other income (expenses), net | 1 | (5) |
| Interest expenses, net | (61) | (69) |
| Loss before income taxes | (2903) | (4836) |
| Income tax expense |  |  |
| Net Loss | $(2903) | $(4836) |
| Net loss per share attributable to common stockholders, basic and diluted | $(0.73) | $(2.68) |
| Weighted-average number of common stocks outstanding used to compute net loss per share, basic and diluted | 3977443 | 1805086 |

---

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

**TEN HOLDINGS, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIENCY)**

**(in thousands, except share data)**

**(Unaudited)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Stock Class** | **Stock Class** | | | |
|  | **Common Stocks** | **Common Stocks** | | | |
|  | **Shares** | **Amount** | **Additional**<br>**Paid-In**<br>**Capital** |<br>**Accumulated**<br>**Deficit** | **Total Stockholders'**<br>**Equity**<br>**(Deficit)** |
| **Balance, December 31, 2024** | 1712609 | $\* | $322 | $(1922) | $(1600) |
| &nbsp;&nbsp;&nbsp;Issuance of shares upon initial public offering, net off offering costs | 111133 | \* | 7842 |  | 7842 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 3512 |  | 3512 |
| &nbsp;&nbsp;&nbsp;Issuance of shares in connection with consulting agreement | 89154 | \* | \* |  | \* |
| &nbsp;&nbsp;&nbsp;Net loss |  |  |  | (4836) | (4836) |
| **Balance, March 31, 2025** | 1912896 | $\* | $11676 | $(6758) | $4918 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Stock Class** | **Stock Class** | | | |
|  | **Common Stocks** | **Common Stocks** | | | |
|  | **Shares** | **Amount** | **Additional**<br>**Paid-In**<br>**Capital** |<br>**Accumulated**<br>**Deficit** | **Total Stockholders'**<br>**Equity**<br>**(Deficit)** |
| **Balance, December 31, 2025** | 3977443 | $\* | $25710 | $(21431) | $4279 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 286 |  | 286 |
| &nbsp;&nbsp;&nbsp;Net loss |  |  |  | (2903) | (2903) |
| **Balance, March 31, 2026** | 3977443 | $— | $25996 | $(24334) | $1662 |

---

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

\* Less than $1,000

**TEN HOLDINGS, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(in thousands)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** |
| **Cash flows from operating activities:** |  |  |
| Net loss | $(2903) | $(4836) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 11 | 149 |
| &nbsp;&nbsp;&nbsp;Noncash lease expenses | 19 | 18 |
| &nbsp;&nbsp;&nbsp;Noncash interest expenses | 61 | 69 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 286 | 3512 |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 39 | 203 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advance – related party |  | (5265) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | 352 | (33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | 914 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 158 | (321) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other payable and accrued expenses | 151 | (387) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | (170) | 123 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | (20) | (17) |
| Net cash used in by operating activities | (1102) | (6785) |
| **Cash flows from investing activities:** |  |  |
| Purchase of capitalized internal-use software |  | (273) |
| Cash used in investing activities |  | (273) |
| **Cash flows from financing activities:** |  |  |
| Proceeds from short-term loans - Related party |  | 385 |
| Repayments of short-term loans - Related party | (450) | (2000) |
| Proceed from issuance of shares |  | 8900 |
| Payment for deferred offering costs |  | (28) |
| Net cash (used in) provided by financing activities | (450) | 7257 |
| Net change in cash and cash equivalents | (1552) | 199 |
| Cash and cash equivalents at beginning of period | 1631 | 48 |
| Cash and cash equivalents at end of period | $79 | $247 |
| **Non-cash investing and financing activities:** |  |  |
| Settlement of debt through offsetting with receivable due from related party | $1100 | $— |

---

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

**TEN HOLDINGS, INC. AND ITS SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**1. Organization, Nature of Business**

TEN Holdings, Inc. (the "Company") was incorporated on February 12, 2024 in Pennsylvania to act as the holding company of TEN Events, Inc. ("TEN Events"), which was incorporated in Pennsylvania in May of 2011 and is an operating entity. TEN Events was formed for the purpose of planning, producing, and broadcasting virtual, hybrid and self-service events using its event platforms, the Xyvid Pro platform and TEN Pro platform, and delivering physical events. TEN Events' platform provides a dynamic, interactive, and engaging virtual event experience to its clients and enables clients to engage and interact with their target audience anywhere in the world through event webcasting.

At incorporation, the Company issued 100 shares of common stock with no stated par value. On July 2, 2024, as part of its reorganization, the Company entered into a share exchange agreement with V-Cube, Inc., the Company's then-principal stockholder. The Company acquired 1,000 shares of TEN Events from V-Cube, Inc. in exchange for 100 shares of common stock of the Company. After the share exchange, TEN Events became a wholly owned subsidiary of the Company.

On July 24, 2024, the Company changed its domicile of incorporation from the Commonwealth of Pennsylvania to the state of Nevada. Thereupon, each share of common stock, no par value per share, of the Company that was issued and outstanding was automatically converted into a share of common stock, par value $0.0001 of the Company. After domestication, the total common stock issued and outstanding is 50,000,000 shares.

On October 9, 2024, the Company's sole director and the majority stockholder approved a reverse stock split of the Company's issued common stock at a ratio of 2:1, which became effective on October 9, 2024.

The reorganization involved entities under common control. Under the guidance in ASC 805-50, for transactions between entities under common control, the assets, liabilities, and results of operations are recognized at their carrying amounts on the date of the restructuring, which required retrospective combination of the Company and TEN Events. The Company's consolidated financial statements have been prepared as if the existing corporate structure had been in existence throughout all periods presented rather than from the incorporation. This includes a retrospective presentation for all equity related disclosures, which were under common control throughout the relevant periods as a single economic enterprise although legal parent-subsidiary relationship were not established.

On November 10, 2025, the Company's Board of Directors approved a reverse stock split of the Company's issued common stock at a ratio of 15:1, which became effective on December 1, 2025.

***Going concern***

The Company has evaluated whether there are certain conditions and events, considered in aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that the consolidated financial statements are issued.

The Company's consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. The Company's ability to continue as a going concern is dependent upon the Company's ability to attract and retain revenue generating customers, acquire new customer contracts, and additional financing.

The Company has incurred and continues to incur losses from operations as well as negative cash flow from operations. For the three months ended March 31, 2026, the Company had a net loss of $2.9 million, net cash used in operations of $1.1 million, and as of March 31, 2026, the Company had an accumulated deficit of $24.3 million. These factors raise substantial doubt regarding the Company's ability to continue as a going concern.

Management's plans to address these conditions include pursuing additional revenue-generating customer contracts, implementing cost control measures, obtaining financial support from related parties, and evaluating additional debt or equity financing alternatives. In March 2026, the Company entered into a Corporate Support and Funding Agreement with V-Cube, Inc., pursuant to which V-Cube committed to provide financial support in the aggregate amount of $5.4 million, payable in installments during 2026.

There can be no assurance that the Company will be successful in obtaining new customer contracts, receiving related-party support when needed, or securing additional financing on acceptable terms or at all. The financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts, or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

**2. Summary of Significant Accounting Policies**

***Basis of Presentation***

 

The accompanying unaudited consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") regarding interim financial reporting. Accordingly, they do not include all of the financial information and footnotes required by U.S. GAAP for complete financial statements.

The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The unaudited consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the Company's financial position, results of operations, shareholders' equity, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be expected for the full year ending December 31, 2026 or any other future interim periods.

As an emerging growth company, the Jumpstart Our Business Startups Act allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to delay adoption of certain new or revised accounting standards. As a result, the Company's consolidated financial statements may not be comparable to the financial statements of issuers who are required to comply with the effective date for new or revised accounting standards that are applicable to public companies.

***Basis of Consolidation***

The Company consolidates entities in which it has a controlling financial interest: TEN Events and V-Cube USA Acquisition Company, LLC. Intercompany balances and transactions have been eliminated in such consolidation.

***Use of Estimates***

The preparation of the consolidated financial statements in conformity with the U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the reporting date, and the reported amounts of revenue and expense during the reporting period. These estimates are based on management's best knowledge of current events and actions that the Company may undertake in the future and include, but are not limited to, allowance for credit losses, useful lives of property and equipment and capitalized software, the carrying value of operating lease right-of-use assets, impairment of long-lived assets and valuation allowance of deferred tax assets. Actual results could differ from those estimates.

***Revenue Recognition***

The Company applies ASC Topic 606, *Revenue from Contracts with Customers* ("ASC 606") for all periods presented in the consolidated financial statements. To determine the appropriate amount of revenue to be recognized in accordance with ASC 606, the Company follows a five-step model as follows:

1 – Identification of the contract with a customer

2 – Identification of the performance obligation in the contract

3 – Determination of the transaction price

4 – Allocation of the transaction price to the performance obligation in the contract

5 – Recognition of revenue when, or as, a performance obligation is satisfied

**Hybrid, virtual, self-service and physical event revenue**

Revenue from hybrid, virtual, self-service and physical events is generated from producing and delivering hybrid, virtual or self-service events using the Company's platforms, the Xyvid Pro and TEN Pro platforms and SaaS Development, or delivering physical events. Virtual events are online events and conferences where participants interact in an online environment, and physical events are events where participants meet in a physical location.

The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring services to the customer. The transaction price is generally fixed at contract inception and is based on the agreed upon rates stated in the contract which indicates the amount of consideration the Company expects to be entitled to in exchange for satisfaction of performance obligation (i.e., delivering events). The amount on the final invoice depends on the actual work performed and might differ from the amount stated in the initial contract. When there is variable consideration included in the transaction price if, in the management's judgment, it is probable that a significant future reversal of cumulative revenue recognized under the contract will not occur, the Company and the customer agree on the price on the final invoice, and revenue is recognized based on the amount on the final invoice. None of our contracts contain a significant financing component. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to government entities.

Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised services to the customer, which is upon completion of the event. Revenue is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those services.

The Company sometimes enters into the contract with a bundle of events. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on each performance obligation's relative standalone selling price. The Company's contracts with multiple performance obligations are generally sold over the same contract terms as that of the contract with single performance obligation and have the same pattern of transferring services to the customer, and therefore, they are accounted for as one combined performance obligation in the context of the contract.

From time to time, the Company engages subcontractors for delivering events. The Company assesses and records revenue on a gross basis as a principal versus on a net basis as an agent in the presentation of revenues and expenses. For events delivered with subcontractors, the Company has concluded that gross reporting is appropriate because the Company (i) has the risk of identifying and hiring qualified vendors, (ii) has the discretion to select the vendors and establish their price and duties, and (iii) bears the risk for services that are not fully paid for by its customers.

***Segment Information***

The Company currently operates its business as one operating segment which includes two revenue types: Hybrid and Virtual Events and Physical Events. The Company's chief operating decision maker ("CODM") is its Chief Executive Officer ("CEO"), who reviews financial information for purposes of making operating decisions, assessing financial performance, and allocating resources. The Company's CODM evaluates financial information as a whole for the purpose of assessing financial performance and making operating decisions.

***Concentration of Customers and Vendors***

The consolidated balance sheet items that potentially subject the Company to concentrations of credit risk are primarily cash and accounts receivable. The Company continuously evaluates the credit worthiness of its customers' financial condition and generally does not require collateral. The Company maintains cash balances in bank accounts that may, at times, exceed Federal Deposit Insurance Corporation ("FDIC") limits of $250,000 per institution. The Company incurred no losses from such accounts and management considers the risk of loss to be minimal.

For the three months ended March 31, 2026 and 2025, there were two customers who accounted for more than 10% of the Company's total revenue in both periods. As of March 31, 2026 and December 31, 2025, there were three customers who accounted for more than 10% of the Company's total accounts receivable in both periods.

For the three months ended March 31, 2026 and 2025, there were two and three suppliers, respectively, who accounted for more than 10% of the Company's total purchase. As of March 31, 2026 and December 31, 2025, there were two and five suppliers, respectively, who accounted for more than 10% of the Company's total accounts payable.

***Cash and Cash Equivalents***

The Company considers all highly liquid short-term investments purchased with an initial maturity date of three months or less to be cash equivalents.

***Accounts Receivable, Net***

Accounts receivable primarily consist of the amounts billed and currently due from customers, net of an allowance for credit losses, if recorded. When the Company has an unconditional right to payment, subject only to the passage of time, the right is treated as receivable. The Company's accounts receivable balances are unsecured, bearing no interest. Fees billed in advance of the related contractual term represent contract liabilities and are presented as deferred revenue. Typical payment terms provide for customer payment within 30 to 90 days of the invoice date.

Accounts receivable are subject to collection risk. The Company performs evaluations of its customers' financial positions and generally extends credit on account, without collateral.

At each balance sheet date, the Company recognizes an expected allowance for credit losses. In addition, at each reporting date, this estimate is updated to reflect any changes in credit risk since the receivable was initially recorded. This estimate is calculated on a pooled basis where similar risk characteristics exist.

The allowance estimate is derived from a review of the Company's historical losses on the aging of receivables. This estimate is adjusted for management's assessment of current conditions, reasonable and supportable forecasts regarding future events, and any other factors deemed relevant by the Company. The Company believes historical loss information is a reasonable starting point in which to calculate the expected allowance for credit losses as the Company's customers' composition have remained constant. The Company did not record an allowance for credit loss as of March 31, 2026 and December 31, 2025.

The Company writes off receivables when there is information that indicates the debtor is facing significant financial difficulty and there is no possibility of recovery. If any recoveries are made from any accounts previously written off, they will be recognized in income or an offset to credit loss expense in the year of recovery. The Company did not have any write-offs of receivables during the three months ended March 31, 2026 and the year ended December 31, 2025.

***Deferred Offering Costs***

Deferred offering costs include specific incremental costs directly attributable to the Company's initial public offering of securities. Deferred offering costs exclude management salaries or other general and administrative expenses. These costs are being deferred and were charged against the gross proceeds of the offering. Deferred offering costs are included in prepaid expenses and other current assets in the Consolidated Balance Sheets.

Upon the completion of the initial public offering, the deferred offering costs were fully charged to additional paid-in capital, and there was no balance as of March 31, 2026.

***Property and Equipment, Net***

Property and equipment are recorded at the cost less accumulated depreciation. Depreciation is computed using the straight-line method. The estimated useful lives of assets are as follows:

Schedule of Estimated Useful Lives of Assets

---

| | |
|:---|:---|
| **Property and Equipment** | **Estimated Useful Life** |
| Computer and equipment | 7 years |
| Furniture and fixture | 10 years |
| Leasehold improvement | Shorter of 10 years or lease term |

---

Repair and maintenance costs are expensed as incurred.

***Intangible Assets***

Intangible assets consist of capitalized software. The Company accounts for its software development costs in accordance with the guidance in ASC 350-40, *Internal-use software*. The costs incurred prior to the application development stage and post implementation are expensed as incurred. Direct and incremental internal and external costs incurred during the application development stage are capitalized until the application is substantially complete and ready for its intended use, at which point amortization begins. Training, data conversion and maintenance costs are expensed as incurred. Costs of capitalized software are amortized on a straight-line basis over the estimated period of benefit, which is approximately five to seven years, and are recorded in cost of revenue in the Consolidated Statements of Operations.

***Impairment of Long-Lived Assets***

Long-lived assets used in operations are reviewed for impairment whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. For long-lived assets to be held and used, the Company recognizes an impairment loss only if the carrying amount is not recoverable when compared to the Company's undiscounted cash flows, and the impairment loss is measured based on the difference between the carrying amount and fair value. Long-lived assets held for sales are reported at the lower of cost or fair value less costs to sell.

***Leases***

Leases are comprised of operating leases for office space. In accordance with FASB ASC Topic 842, *Leases*, the Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (ROU) assets, current portion of operating lease liabilities, and non-current operating lease liabilities in the Consolidated Balance Sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date.

For leases with terms greater than 12 months, the Company records a ROU asset and a lease liability representing the present value of future lease payments. The discount rate used to measure the lease asset and liability is determined at the beginning of the lease term using the rate implicit in the lease, or the Company's collateralized incremental borrowing rate. The implicit rate within the Company's leases is generally not determinable and, therefore, the incremental borrowing rate at lease commencement is utilized to determine the present value of lease payments. The Company estimates its incremental borrowing rate based on third-party lender quotes to obtain secured debt in a like currency for a similar asset over a timeframe similar to the term of the lease. For those contracts that include fixed rental payments for both the use of the asset ("lease costs") as well as for other occupancy or service costs relating to the asset ("non-lease costs"), the Company generally includes both the lease costs and non-lease costs in the measurement of the lease asset and liability.

The Company accounts for each lease and any non-lease components associated with that lease as a single lease component for all asset classes. Lease expenses for the Company's operating leases are recognized on a straight-line basis over the lease term except for variable lease costs, which are expensed as incurred. The Company does not recognize ROU assets and operating lease liabilities that arise from leases with an initial lease term of 12 months or less.

***Fair Value Measurements***

The Company reports financial assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis in accordance with ASC Topic 820 *Fair Value Measurement* ("ASC 820"). ASC 820 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk.

ASC 820 also establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three levels. The U.S. GAAP established a hierarchy framework to classify the fair value based on the observability of significant inputs to the measurement.

The levels of the fair value hierarchy are as follows:

Level 1: Quoted price in an active market for identical assets or liabilities.

Level 2: Quoted prices for similar assets and liabilities in active markets or inputs that are observable.

Level 3: Inputs that are unobservable (for example, cash flow modeling inputs based on assumptions).

The carrying amounts of the Company's financial instruments, such as cash, accounts receivable, accounts payable, and short-term loans approximate fair values due to the short-term nature of these instruments.

***Deferred Revenue***

Contract liabilities consist of deferred revenue. Revenue is deferred when the Company has the right to invoice in advance of performance under a customer contract. The current portion of deferred revenue balances is recognized over the next 12 months. During the three months ended March 31, 2026 and 2025, the Company recognized revenue of approximately $0.3 million and $0.2 million, respectively, that was included in deferred revenue at the beginning of each respective period.

***Cost of Revenue***

Cost of revenue primarily consists of costs paid to its employees for delivering events and costs of renting equipment and studio.

***Advertising and Marketing Costs***

Advertising and marketing costs are expensed as incurred and are included in selling, general and administrative expenses in the Consolidated Statements of Operations. For the three months ended March 31, 2026 and 2025, these costs were $0.2 million and $0.2 million, respectively.

***Employee Benefit Plan***

Substantially all employees are eligible to participate in the 401(k) defined contribution plan which is sponsored by the Company. Participants may contribute a portion of their compensation to the plan up to the maximum amount permitted under Section 401(k) of the Internal Revenue Code. At the Company's discretion, the Company can match a portion of the participants' contributions. During the three months ended March 31, 2026 and 2025, the Company recognized $0.002 million and $0.02 million, respectively, of expenses for the defined contribution plans.

***Income Taxes***

The Company accounts for income taxes under the asset and liability method in accordance with ASC Topic 740, *Income Taxes*, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined on the differences between the financial statement and tax basis of assets, liabilities and net operating loss by using enacted tax rate in effect for the fiscal year in which the differences are expected to reverse. The effect of a change in tax rate on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

The Company recognizes deferred tax assets to the extent that these assets are believed to be more likely than not to be realized. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations.

The Company files tax returns in the tax jurisdictions of the United States. Tax benefits for uncertain tax positions are based upon management's evaluation of the information available at the reporting date. To be recognized in the financial statements, a tax benefit must be at least more likely than not of being sustained based on technical merits. The benefit for positions meeting the recognition threshold is measured as the largest benefit more likely than not of being realized upon settlement with a taxing authority that has full knowledge of all relevant information.

***Net Loss per Share***

Basic net loss per common stock is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per common stock is computed by dividing the net loss by the weighted-average number of shares of common stock and potentially dilutive securities outstanding for the period determined using the treasury stock method.

***Recently Issued Accounting Pronouncements***

The following Accounting Standards Updates ("ASUs") were issued by the Financial Accounting Standards Board ("FASB") which relate to or could relate to the Company as concerns the Company's normal ongoing operations or the industry in which the Company operates.

In September 2025, the FASB issued ASU 2025-11, *Interim Reporting (Topic 270): Narrow-Scope Improvements*. This ASU clarifies the interim disclosure requirements and the applicability of Topic 270. The guidance is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements.

In December 2025, the FASB issued ASU 2025-07, *Derivatives and Hedging (ASC 815) and Revenue from Contracts with Customers (ASC 606): Scope Refinements and Share-Based Noncash Consideration*. This ASU clarifies the scope of derivative accounting for certain contracts and the accounting for share-based noncash consideration received from customers. The guidance is effective for fiscal years beginning after December 15, 2026, including interim periods. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements.

In September 2025, the FASB issued ASU No. 2025-06 Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): *Targeted Improvements to the Accounting for Internal-Use Software* This ASU modernizes the accounting for software costs that are accounted for under Subtopic 350-40, Intangibles—Goodwill and Other—Internal-Use Software. The guidance is effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years. Early adoption is permitted, and entities should apply the amendments prospectively. The Company is currently evaluating the impact that adoption of this ASU will have on its consolidated financial statements.

In November 2024, the FASB issued ASU No. 2024-03 Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): *Disaggregation of Income Statement Expenses*. This ASU requires public business entities to disclose, for interim and annual reporting periods, additional information about certain income statement expense categories. The guidance is effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027. Entities are permitted to apply either the prospective or retrospective transition methods. The Company is currently evaluating the impact that the adoption of this ASU will have on its consolidated financial statements.

In October 2023, the FASB issued ASU No. 2023-06, "Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative" ("ASU 2023-06"). This ASU incorporates certain SEC disclosure requirements into the FASB Accounting Standards Codification ("ASC"). The amendments in the ASU are expected to clarify or improve disclosure and presentation requirements of a variety of ASC Topics, allow users to more easily compare entities subject to the SEC's existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the ASC with the SEC's regulations. The ASU has an unusual effective date and transition requirements since it is contingent on future SEC rule setting. If the SEC fails to enact required changes by June 30, 2027, this ASU is not effective for any entities. Early adoption is not permitted. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statement.

**3. Property and Equipment, Net**

As of March 31, 2026 and December 31, 2025, property and equipment consisted of the following:

Schedule of Property and Equipment

---

| | | |
|:---|:---|:---|
|  | **March 31,** | **December 31,** |
|  | **2026** | **2025** |
|  | **(unaudited)** | **(audited)** |
| Computer and equipment | $487 | $487 |
| Furniture and fixture | 17 | 17 |
| Leasehold improvement | 20 | 20 |
| Total property and equipment | 524 | 524 |
| Less: Accumulated depreciation | (363) | (352) |
| &nbsp;&nbsp;&nbsp;Total property and equipment, net | $161 | $172 |

---

The Company recognized depreciation expenses on property and equipment of $0.01 million and $0.01 million during the three months ended March 31, 2026 and 2025, respectively.

**4. Intangible Assets, Net**

The Company's intangible assets consist of internally developed capitalized software.

During the year ended December 31, 2025, the Company has performed impairment assessment and identified triggering events including recurring operating losses and negative cash flows indicating that the carrying amount of the intangible assets may not be recoverable. Accordingly, the Company recognized an impairment loss of $4.2 million related to the capitalized software.

As of March 31, 2026 and December 31, 2025, intangible assets consisted of the following:

Schedule of Intangible Assets

---

| | | |
|:---|:---|:---|
|  | **March 31,** | **December 31,** |
|  | **2026** | **2025** |
|  | **(unaudited)** | **(audited)** |
| Capitalized software | $4874 | $4874 |
| &nbsp;&nbsp;&nbsp;Total intangible assets | 4874 | 4874 |
| Less: Impairment | (4194) | (4194) |
| Less: Accumulated Amortization | (680) | (680) |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | $— | $— |

---

The Company recognized amortization expenses on intangible assets of nil and $0.1 million during the three months ended March 31, 2026 and 2025, respectively.

**5*.* Leases**

The Company has an operating lease for its office space in Pennsylvania. As of March 31, 2026 and December 31, 2025, the following amounts were recorded in the Consolidated Balance Sheets relating to the Company's operating lease.

Schedule of Operating Lease

---

| | | |
|:---|:---|:---|
|  | **March 31,** | **December 31,** |
|  | **2026** | **2025** |
|  | **(unaudited)** | **(audited)** |
| **Right-of-Use Assets** |  |  |
| Operating lease assets | $436 | $455 |
| **Lease Liabilities** |  |  |
| Operating lease liabilities - Current | $82 | $80 |
| Operating lease liabilities - Non-current | $400 | $422 |

---

The following table summarizes the contractual maturities of operating lease liabilities as of March 31, 2026:

---

| | |
|:---|:---|
| Year Ending December 31, |  |
| 2026 (remaining) | $81 |
| 2027 | 112 |
| 2028 | 117 |
| 2029 | 121 |
| 2030 | 126 |
| Total lease payments | 557 |
| Less amounts representing interest | (75) |
| Present value of lease payments | 482 |
| Less: current portion | (82) |
| Non-current lease liabilities | $400 |

---

The following table illustrates information for the Company's operating lease during the three months ended March 31, 2026 and the year ended December 31, 2025:

Schedule of Operating Lease Cost

---

| | | |
|:---|:---|:---|
|  | **March 31,** | **December 31,** |
|  | **2026** | **2025** |
| Total operating lease cost | $20 | $71 |
| Short-term lease cost | $— | $— |
| Cash paid for amounts included in the measurement of the operating lease liability | $27 | $104 |
| Weighted average remaining lease term (years) | 4.8 | 5.0 |
| Weighted average discount rate | 6.0% | 6.0% |

---

**6. Commitments and Contingencies**

***Guarantees and Commitments***

There were no commitments under certain purchase or guarantee arrangements as of March 31, 2026 and December 31, 2025.

***Legal Matters***

From time to time, in the normal course of business, the Company may be subject to various legal matters such as threatened or pending claims or proceedings. There were no such material matters as of March 31, 2026 and December 31, 2025, except those disclosed below.

On October 27, 2025, the Company received a grand jury subpoena from the U.S. Attorney's Office in connection with an investigation in the Southern District of New York. The subpoena calls for the production of documents relating to the Company's initial public offering. The Company has produced records in response to that grand jury subpoena. Subsequently, the Company received an additional DOJ request for information to include documents and communications relating to four contracts the Company executed after its IPO. The Company is complying with this additional request for information.

On October 28, 2025, the Company learned that the SEC is conducting a related investigation pursuant to its authority. On March 10, 2026, the Company received a subpoena for documents from the SEC, which also calls for the production of documents and communications related to the Company's initial public offering and other items. The Company is aware that its former Chief Executive Officer also received a SEC subpoena that seeks records and communications relating to these investigations.

The Company is fully cooperating with both investigations and will comply with its obligations under the subpoenas. The Company cannot predict the scope or timing of the investigations, the resolution or the outcome of the investigations, the costs or the potential impact on the Company.

***Indemnification***

In the ordinary course of business, the Company often includes standard indemnification provisions in its arrangements with third parties. To date, the Company has not paid any material claims or been required to defend any material actions related to its indemnification obligations. However, the Company may record charges in the future as a result of these indemnification obligations.

**7. Other Payables and Accrued Expenses**

As of March 31, 2026 and December 31, 2025, other payable and accrued expenses include the following components:

Schedule of Accrued Expenses

---

| | | |
|:---|:---|:---|
|  | **March 31,** | **December 31,** |
|  | **2026** | **2025** |
|  | **(unaudited)** | **(audited)** |
| Other payable | $990 | $490 |
| Accrued operating expenses | 340 | 619 |
| Accrued payroll expenses | 77 | 217 |
| Other accrued expenses | 705 | 574 |
| Total other payable and accrued expenses | $2112 | $1900 |

---

**8. Short-term Loans – Related Party**

Short-term loans – related party as of March 31, 2026 and December 31, 2025 consisted of the following:

Schedule of Short-term Loans

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | | **March 31,** | **December 31,** |
|  |<br>**Interest Rate** | <br>**Maturity** | **2026** | **2025** |
|  |  |  | **(unaudited)** | **(audited)** |
| V-Cube, Inc. | 6.00% | June 30, 2026 | $2901 | $465 |
| Wizlearn Technologies Pte. Ltd. | 6.00% | June 30, 2026 |  | 1665 |
| Pave Education Pte. Ltd. | 6.00% | June 30, 2026 |  | 2322 |
| Naoaki Mashita | 6.00% | June 30, 2026 | 120 | 120 |
| &nbsp;&nbsp;&nbsp;Total short-term loans |  |  | $3021 | $4571 |

---

The Company's outstanding short-term loans from related parties are unsecured and are contractually repayable at their respective maturity dates in accordance with the underlying loan agreements.

**9*.* Net Loss per Share**

The following table sets forth the computation of basic and diluted net loss per share:

Schedule of Net Loss per Share

---

| | | |
|:---|:---|:---|
|  | **Three month ended March 31,** | **Three month ended March 31,** |
|  | **2026** | **2025** |
| Basic and diluted net loss per common share: |  |  |
| Net loss attributable | $(2903) | $(4836) |
| Weighted average common shares outstanding – basic and diluted | 3977443 | 1805086 |
| Net loss per common share – basic and diluted | $(0.73) | $(2.68) |

---

The following potentially dilutive securities were excluded from the computation of diluted net loss per share calculations for the periods presented because the impact of including them would have been anti-dilutive:

Schedule of Dilutive Securities Excluded from Computation of Net Loss

---

| | | |
|:---|:---|:---|
|  | **Three month ended March 31,** | **Three month ended March 31,** |
|  | **2026** | **2025** |
| Common stock options | 70254 | 74862 |

---

**10. Stockholders' Equity**

**Preferred Stock**

As of March 31, 2026, the Company has authorized 1,000,000 shares of preferred stock with rights and preferences, including voting rights, to be designated from time to time by the board of directors. There were no shares of preferred stock issued or outstanding as of March 31, 2026.

**Common Stock**

As of March 31, 2026, the Company is authorized to issue 250,000,000 shares of common stock, par value $0.0001 per share. Each holder of common stock is entitled to one vote per share and to receive dividends when and if declared by the Board of Directors.

As of March 31, 2026, there were 3,977,443 shares of common stock issued and outstanding.

On December 1, 2025, the Company effected a 1-for-15 reverse stock split of its issued and outstanding common stock. All share and per share amounts presented herein have been retroactively adjusted to reflect the reverse stock split.

During the three months ended March 31, 2026, there were no material issuances of common stock.

As of March 31, 2026, the Company has an effective Common Stock Purchase Agreement with Lincoln Park Capital Fund, LLC, pursuant to which the Company may, from time to time, sell shares of its common stock for aggregate gross proceeds of up to $20.0 million, subject to the terms and conditions set forth in the agreement. No shares were issued under this agreement during the three months ended March 31, 2026.

**11. Equity Incentive Plan**

On September 27, 2024, the Company's Board of Directors approved the Company's 2024 Equity Incentive Plan (the "Equity Incentive Plan"). On October 10, 2024, the Company granted stock options to certain individuals who were the Company's directors and employees to purchase an aggregate of 176,017 shares of common stock at an exercise price of $6.90 per share. The options have a contractual term of ten years and vest upon the satisfaction of service conditions for Company employees and performance conditions for Company directors. Of the 176,017 stock options granted, 74,862 stock options vested on February 18, 2025 upon the completion of the Company's IPO.

The fair value of the stock options was estimated using the Black-Scholes option-pricing model. The following table summarizes the significant assumptions used to estimate the fair value of the stock option.

Schedule of Assumptions Used to Estimate the Fair Value of the Stock Option

---

| | |
|:---|:---|
| Expected term | 5 years |
| Expected volatility | 49.04% |
| Expected dividend rate | 0.00% |
| Risk-free rate | 3.75% |

---

The Company recognized stock-based compensation expenses of $0.3 million and $3.5 million during the three months ended March 31, 2026 and 2025, respectively. Stock-based compensation expenses are included in selling, general and administrative expenses in the Consolidated Statements of Operations.

As of March 31, 2026, the Company's unrecognized stock-based compensation expense for unvested options was $3.2 million.

**12. Revenue**

Disaggregation of Revenue

The tables below reflect revenue by major source and timing of transfer of goods and services for the three months ended March 31, 2026 and 2025. The Company had no revenue derived from geographical regions outside of the U.S. during the three months ended March 31, 2026 and 2025. All revenue during the three months ended March 31, 2026 and 2025 was recognized when the performance obligation was satisfied at point in time.

---

| | | |
|:---|:---|:---|
|  | **Three Month Ended March 31,** | **Three Month Ended March 31,** |
|  | **2026** | **2025** |
| Delivered events - Virtual and Hybrid | $791 | $713 |
| Delivered events - Physical | 62 | 26 |
| Total | $853 | $739 |

---

The following table summarizes the activity in deferred revenue during the three months ended March 31, 2026 and the year ended December 31, 2025:

---

| | | |
|:---|:---|:---|
|  | **Three Month Ended March 31,** | **Three Month Ended March 31,** |
|  | **2026** | **2025** |
| Balance, beginning of period | $430 | $147 |
| Revenue earned | (263) | (218) |
| Deferral of revenue | 92 | 341 |
| Balance, end of period | $259 | $270 |

---

**13. Cost of Revenue**

Disaggregation of Cost of revenue

The table below reflects cost of revenue by major source for the three months ended March 31, 2026 and 2025.

---

| | | |
|:---|:---|:---|
|  | **Three Month Ended March 31,** | **Three Month Ended March 31,** |
|  | **2025** | **2024** |
| Delivered events - Virtual and Hybrid | $286 | $173 |
| Delivered events - Physical | 21 | 13 |
| Total | $307 | $186 |

---

**14. Consulting and Advisory Agreement**

On July 18, 2025, the Company entered into a market awareness agreement, dated as of June 27, 2025 (the "MCA Agreement"), with MicroCap Advisory, LLC (the "MC Advisor"), pursuant to which the MC Advisor will provide investor communications and market awareness services to the Company for a six-month term. The MC Advisor will develop and implement a multi-step investor outreach strategy, including positioning, media planning, and campaign execution. As compensation, the MC Advisor received a $15,000 setup fee and is entitled to $100,000 per month, beginning one week after execution of the MCA Agreement. Additionally, pursuant to the MCA Agreement, the MC Advisor is entitled to receive 33,333 warrants, exercisable at $6.00 per share for two years, with anti-dilution adjustments in the event of a reverse stock split and cashless exercise rights if unregistered.

As of March 31, 2026 and through the date of this report, the warrants had not been legally issued or granted, and no warrant agreement had been executed. The issuance of the warrants remains subject to completion of the applicable corporate approval and issuance process. Accordingly, the Company has not recorded any warrant-related expense or additional paid-in capital related to the MCA Agreement as of March 31, 2026. If and when the warrants are legally issued or granted, the Company will measure the fair value of the warrants on the grant date and recognize the related expense within selling, general and administrative expenses, with a corresponding increase to additional paid-in capital, as applicable.

Either party may terminate the MCA Agreement after 60 days upon 30 days' written notice. As of the date of this report, the Company has not determined the timing of any issuance of warrants to the MC Advisor.

On February 5, 2024, V-Cube, Inc., the former principal stockholder of the Company, entered into a consulting and services agreement with Spirit Advisors, which agreement was assigned to and assumed by the Company on September 5, 2024. Pursuant to the agreement, the Company agreed to compensate Spirit Advisors with warrants, which became exercisable upon completion of the Company's IPO for the period of 10 years to purchase 4.9% of the fully diluted share capital of the Company as of February 12, 2024 for an exercise price per share of $0.3, subject to adjustments as set forth in the warrants, as partial compensation for professional services provided by Spirit Advisors in connection with the IPO.

The warrants became exercisable upon the completion of the IPO. On February 19, 2025, Spirit Advisors elected to exercise its warrants in full. The net shares issued under this exercise were 89,154 shares of common stock. These transactions were recorded within stockholders' equity.

**15. Related Party**

The related parties that had material balances and transactions as of March 31, 2026 and December 31, 2025 and for the three months ended March 31, 2026 and 2025 consist of the following:

---

| | |
|:---|:---|
| Name of Related Party | Nature of Relationship at March 31, 2026 |
| V-Cube, Inc. | The largest stockholder of the Company |
| Wizlearn Technologies Pte. Ltd. | An affiliate of the Company and a subsidiary of V-Cube, Inc. |
| Pave Education Pte. Ltd. | An affiliate of the Company and a subsidiary of V-Cube, Inc. |
| Naoaki Mashita | Chief Executive Officer of V-Cube, Inc., the largest stockholder of the Company |

---

The Company had the following related party balances as of March 31, 2026 and December 31, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | |  | **March 31,** | **December 31,** |
|  |<br>**Nature of transactions** |  | **2026** | **2025** |
| **Receivable due from related party:** |  |  |  |  |
| V-Cube, Inc. | For additional paid-in capital | \*\* | $4300 | $5400 |
| **Short-term loans due to related party:** |  |  |  |  |
| V-Cube, Inc. | Loan payable for working capital |  | 2901 | 465 |
| Wizlearn Technologies Pte. Ltd. | Loan payable for working capital |  |  | 1665 |
| Pave Education Pte. Ltd. | Loan payable for working capital |  |  | 2322 |
| Naoaki Mashita | Loan payable for working capital |  | 120 | 120 |

---

The Company's outstanding short-term loans from related parties are unsecured and are contractually repayable at their respective maturity dates in accordance with the underlying loan agreements.

The Company had no operating transactions with its related parties during the three months ended March 31, 2026 and 2025.

\*\* On March 18, 2026, the Company entered into a Corporate Support and Funding Agreement (the "Agreement") with V-Cube, Inc., a related party, pursuant to which V-Cube committed to provide aggregate capital contributions of $5.4 million to support the Company's operations. The contributions are scheduled to be funded in installments of $1.1 million on March 31, 2026, $1.5 million on September 30, 2026, and $2.8 million on December 31, 2026.

As of March 31, 2026, the Company offset $1.1 million against related-party balances and recorded a related-party receivable of $4.3 million, representing the remaining committed amount due from the related party.

**16. Subsequent Events**

The Company has evaluated subsequent events after the consolidated balance sheet date through May 14, 2026, the date the consolidated financial statements were available for issuance. Management has determined that no significant events or transactions have occurred subsequent to the consolidated balance sheet date that require both recognition and disclosure in the consolidated financial statements.

Item 2. <u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u>

*The following discussion and analysis should be read in conjunction with the consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q.*

**Forward-Looking Statements**

This Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and Rule 3b-6 promulgated thereunder. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including, but not limited to: any projections of earnings, revenue, or other financial items; any statements regarding the adequacy, availability, and sources of capital, any statements of the plans, strategies, and objectives of management for future operations; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing. Forward-looking statements may include the words "may," "might," "will," "should," "would," "could," "likely," "estimate," "intend," "continue," "future," "potential," "believe," "expect," "plan," "project," "target," "forecast," "outlook," or "anticipate," and other similar words or phrases. In addition to any assumptions and other factors and matters referred to specifically in connection with such forward-looking statements, factors that could cause actual results or outcomes to differ materially from those contained in the forward-looking statements include those factors set forth in the "Risk Factors" section included in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities Exchange Commission (the "SEC") on March 18, 2026 (the "Annual Report") .

Although we believe that the expectations reflected in our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, such as those disclosed in this Quarterly Report on Form 10-Q. We do not intend, and undertake no obligation, to update any forward-looking statement, except as required by law.

The information included in this Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our unaudited condensed consolidated financial statements and the notes included in this Quarterly Report on Form 10-Q, and the audited consolidated financial statements and notes and Management's Discussion and Analysis of Financial Condition and Results of Operations contained in the Annual Report.

**Business Overview**

TEN Holdings, Inc. (the "Company," "TEN Holdings," "we," "us," or "our"), headquartered in Langhorne, Pennsylvania, was incorporated on February 12, 2024 in Pennsylvania to act as the holding company of TEN Events, Inc. ("TEN Events"), which was incorporated in Pennsylvania in May of 2011 and is an operating entity. TEN Events is a provider of event planning, production, and broadcasting services. TEN Events produces virtual, hybrid, self-service, and physical events. Virtual, hybrid, and self-service events could involve virtual and hybrid event planning, production and broadcasting services, and continuing education services, all of which are supported by our proprietary Xyvid Pro platform and TEN Pro platform. Physical events were added to our revenue streams, due to our corporate restructuring completed in fiscal year 2023, and mainly involve live streaming and video recording of physical events.

As of the date of this Quarterly Report on Form 10-Q, we primarily generate revenue from virtual and hybrid events delivered to corporate customers. We experienced an increase in our total revenue in the first quarter of fiscal year 2026, mainly due to one of our repeatable clients increasing their revenue quarter-over-quarter by over 100%, compared to the same period last year. For the three months ended March 31, 2026 and 2025, we had total revenue of approximately $0.9 million and $0.7 million, respectively, and net loss of approximately $2.9 and $4.8 million, respectively. For the three months ended March 31, 2026 and 2025, the revenue generated from virtual and hybrid events was approximately $0.8 and $0.7 million, respectively, accounting for approximately 92.7% and 96.4% of our total revenue, respectively; and the revenue generated from physical events was approximately $0.1 and $0.03 million, respectively, accounting for approximately 7.3% and 3.6% of our total revenue, respectively.

Our mission is to deliver top-tier planning, production, and broadcasting services for virtual, hybrid, self-service, and physical events. Our goal is to become a global leader in innovative virtual events that enhance engagement and connectivity, making impactful and memorable experiences accessible to all.

**Key Financial Performance Indicators**

***Revenue***

Our revenue is derived from the provision of virtual and hybrid events and physical events on our Xyvid Pro and TEN Pro platforms.

***Cost of revenue***

Our cost of revenue is primarily driven by the costs paid to our employees for producing events and the costs of renting equipment and our studio.

***Selling, general and administrative expenses***

Selling, general and administrative expenses are primarily composed of personnel costs for sales and marketing staff and general corporate functions, computer and software costs, and advertising and marketing expenses.

We expect general and administrative expenses to fluctuate as a result of operating as a public company.

***Operating profit and operating profit margin***

Operating profit is the difference between our revenue and cost of revenue and selling, general and administrative expenses. Operating profit margin is the operating profit as a percentage of revenue.

***Other income (expenses)***

From time to time, we have non-recurring, non-operating gains and losses which are reflected through other income (expenses).

***Interest expenses***

Interest expenses consist of interest expenses arising from borrowings.

**Results of Operations**

***Comparison of Results of Operations for the three months ended March 31, 2026 and 2025***

The following table sets forth our statements of operations for the three months ended March 31, 2026 and 2025:

**(in thousands, except change % data)**

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Change**<br> **(2026 vs. 2025)** |
|  | **2026($)** | **2025($)** | **YoY %** |
| **Revenue** |  |  |  |
| &nbsp;&nbsp;&nbsp;Delivered events - Virtual and Hybrid | 791 | 713 | 10.9% |
| &nbsp;&nbsp;&nbsp;Delivered events - Physical | 62 | 26 | 138.5% |
| Total Revenue | 853 | 739 | 15.4% |
| Cost of revenue | 307 | 186 | 65.1% |
| **Gross Profit** | 546 | **553**) | (1.3)% |
| Operating expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;Selling, General and Administrative Expenses | 3378 | 5166) | (34.6)% |
| &nbsp;&nbsp;&nbsp;Depreciation expenses | 11 | 149 | (92.6)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 3389 | 5315 | (36.2)% |
| **Loss from operations** | (2843) | **(4762)** | (40.3)% |
| &nbsp;&nbsp;&nbsp;Other income (expenses), net | 1 | (5) | (120.0)% |
| &nbsp;&nbsp;&nbsp;Interest expenses | (61) | (69) | (11.6)% |
| **Loss before income taxes** | (2903) | **(4836)** | (40.0)% |
| Provision for income taxes | - | - | 0.0% |
| **Net Loss** | (2903) | **(4836)** | (40.0)% |

---

*Revenue*

Revenue increased by $0.1 million, or 15.4%, to $0.9 million. The increase was primarily driven by one of our major customers increasing their revenue quarter-over-quarter by 100%.

*Cost of Revenue*

Cost of revenue increased by $0.1 million, or 65.1%, to $0.3 million, driven by one major event that took place in the quarter from one of our customers that did not take place during the same period last year.

*Selling, General and Administrative Expenses ("SG&A expenses")*

SG&A expenses decreased by $1.8 million, or 34.6%, to $3.4 million, due to lower headcount cost during the same period last year as well as the less stock-based compensation expenses recognized in the current period.

*Depreciation Expense*

Deprecation expense decreased by $0.1 million to $0.01 million due to the company taking a large impairment expense at the end of 2025 which will cause all future periods to be less than 2025.

*Other Income (Expense), net*

Other income (expense), net increased by $0.006 million, or 120.0%, from $0.005 million of other expenses to $0.001 million of other income, primarily due to interest income.

*Interest Expenses*

Interest expenses increased by $0.008 million, or 11.6%, to $0.06 million, primarily due to continued accrued interest on the loans taken by the Company.

*Net Loss*

As a result of the foregoing, the net loss was $2.9 million during the three months ended March 31, 2026 compared to the net loss of $4.8 million during the three months ended March 31, 2025.

**Non-GAAP Financial Measures**

*Non-GAAP Net Loss and Non-GAAP Net Loss per Share*

We define non-GAAP net loss as GAAP net loss excluding the impact of stock-based compensation expense. Non-GAAP net loss per share is calculated by dividing non-GAAP net loss by the diluted weighted average shares of common stock outstanding. Our management believes non-GAAP net loss and non-GAAP net loss per share are key performance measures and uses such measures to evaluate our operating performance. Accordingly, we believe that the presentation of these adjusted operating results provides useful supplemental information to investors and facilitates the analysis and comparison of our operating results across reporting periods. Our calculation of non-GAAP net loss and non-GAAP net loss per share may differ from similarly titled non-GAAP measures, if any, reported by our peer companies and therefore may not serve as an accurate basis of comparison among companies. Non-GAAP net loss and non-GAAP net loss per share should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** |
|  | **(in thousands, except share data)** | **(in thousands, except share data)** |
| Net Loss | $(2903) | $(4836) |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expense | 286 | 3512 |
| Non-GAAP net loss | $(2617) | $(1324) |
| Weighted-average number of shares of common stock outstanding used to compute net loss per share, basic and diluted | 3977443 | 1805086 |
| Net loss per share - basic and diluted | $(0.73) | $(2.68) |
| Non-GAAP net loss per share - basic and diluted | $(0.66) | $(0.73) |

---

*Adjusted EBITDA*

Adjusted EBITDA is a key measure used by our management to help us analyze our financial results, establish budgets and operating goals for managing our business, evaluate our performance and make strategic decisions. Accordingly, we believe that the presentation of Adjusted EBITDA is useful supplemental information to investors and facilitates the analysis and comparison of our operating results across reporting periods. Our calculation of Adjusted EBITDA may differ from similarly titled non-GAAP measures, if any, reported by our peer companies and therefore may not serve as an accurate basis of comparison among companies. Adjusted EBITDA should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

We define Adjusted EBITDA as our net loss excluding: (i) interest expense, (ii) provision for income taxes, (iii) depreciation and amortization, (iv) other expense (income), and (v) stock-based compensation expense.

The following table provides a reconciliation of net loss to Adjusted EBITDA:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** |
|  | **(in thousands)** | **(in thousands)** |
| Net loss | $(2903) | $(4836) |
| &nbsp;&nbsp;&nbsp;Interest expenses | 61 | 69 |
| &nbsp;&nbsp;&nbsp;Provision for income taxes |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 11 | 149 |
| &nbsp;&nbsp;&nbsp;Other (income) expenses, net | (1) | 5 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expenses | 286 | 3512 |
| Adjusted EBITDA | $(2546) | $(1101) |

---

**Liquidity and Capital Resources**

**Sources of Liquidity**

Our primary liquidity needs for the next 12 months and beyond will include cash to (i) provide capital to facilitate the growth of our business, (ii) pay our short-term debt obligations, as discussed in the notes to the consolidated financial statements, and (iii) pay our operating expenses.

As of March 31, 2026 and December 31, 2025, we had cash of $0.1 million and $1.6 million, respectively. Liquidity is a measure of our ability to meet potential cash requirements. We generally fund our operations with cash flow from operations, and, when needed, borrowed funds from financial institutions and related parties. In addition, as we continue to grow, we expect to continue funding our operations by issuing shares of our common stock to a wider stockholder base, subject to market conditions. In June 2025, we entered into a purchase agreement with Lincoln Park Capital Fund, LLC ("Lincoln Park"), giving the us the right, but not the obligation to sell to Lincoln Park up to $20.0 million worth of shares of our common stock (the "ELOC"). We do not intend to sell further shares pursuant to the ELOC at this time.

Our principal use of liquidity has been to fund our daily operations and working capital and we expect that to continue for the next 12 months and beyond. We have incurred and continue to incur losses from operations and negative cash flows from operating activities. For the three months ended March 31, 2026, we incurred a net loss of $2.9 million and used $1.1 million of cash in operating activities. As of March 31, 2026, we had an accumulated deficit of $24.3 million and short-term related-party debt obligations of $3.0 million, all of which mature within the next twelve months. These conditions, together with our limited cash balance as of March 31, 2026, raise substantial doubt about our ability to continue as a going concern.

Our ability to continue as a going concern depends upon our ability to attract and retain revenue-generating customers, acquire new customer contracts, implement cost control measures, receive financial support from related parties, and secure additional debt or equity financing. In March 2026, we entered into a Corporate Support and Funding Agreement with V-Cube, Inc., pursuant to which V-Cube committed to provide financial support in the aggregate amount of $5.4 million, payable in installments during 2026. Management is also evaluating additional debt or equity financing alternatives, although there can be no assurance that any such financing will be available on acceptable terms or at all.

Based on our current cash resources, recurring losses, negative operating cash flows, and short-term debt obligations, we will require additional liquidity to fund our operating expenses and cash obligations over the next twelve months. There can be no assurance that we will be successful in obtaining new customer contracts, receiving related-party support when needed, implementing cost reductions, or securing additional financing. If we are unable to obtain sufficient liquidity, we may be required to delay, reduce, or eliminate certain operating activities or otherwise modify our business plans.

**Contractual Obligations and Commitments**

As of March 31, 2026, the Company had a total of $3.6 million in contractual obligations for future payments.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **As of March 31, 2026** | **As of March 31, 2026** | **As of March 31, 2026** | **As of March 31, 2026** | **As of March 31, 2026** |
| <br>**(in thousands)** | **Payments due by period:** | **Payments due by period:** | **Payments due by period:** | **Payments due by period:** | **Payments due by period:** |
|  | **Total** | **Less than** <br> **1 year** | **1 - 3 years** | **4 - 5 years** | **More than** <br> **5 years** |
| Short-term debt | $3021 | $3021 | $- | $- | $- |
| Operating lease payments | 557 | 81 | 229 | 247 | - |
| &nbsp;&nbsp;&nbsp;**Total** | $3578 | $3102 | $229 | $247 | $- |

---

As of March 31, 2026, we had outstanding short-term debt obligations of $3.0 million which mature within the next twelve months. We also have $0.6 million in operating lease obligations due over the next five years.

**Capital Expenditures**

Our capital expenditures primarily consist of acquisition of computer hardware equipment and capitalized software.

During the three months ended March 31, 2026 and 2025, we spent nil and $0.3 million, respectively, on acquisitions of capitalized software.

**Off-Balance Sheet Arrangements**

As of March 31, 2026, the Company did not have any off-balance sheet arrangements, as defined in the rules and regulations of the SEC.

**Cash flows for the three months ended March 31, 2026 and 2025**

**(in thousands)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** |
| **Cash flows from operating activities:** |  |  |
| Net loss | $(2903) | $(4836) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 11 | 149 |
| &nbsp;&nbsp;&nbsp;Noncash lease expenses | 19 | 18 |
| &nbsp;&nbsp;&nbsp;Noncash interest expenses | 61 | 69 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 286 | 3512 |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 39 | 203 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advance - related party |  | (5265) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | 352 | (33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | 914 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 158 | (321) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other payable and accrued expenses | 151 | (387) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | (170) | 123 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | (20) | (17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (1102) | (6785) |
| **Cash flows from investing activities:** |  |  |
| Purchase of capitalized internal-use software | - | (273) |
| Net cash used in investing activities | - | (273) |
| **Cash flows from financing activities:** |  |  |
| Proceeds from short-term loans - related party |  | 385 |
| Repayments of short-term loans - related party | (450) | (2000) |
| Proceed from issuance of shares |  | 8900 |
| Payment for deferred offering costs | - | (28) |
| Net cash provided by financing activities | (450) | 7257 |
| Net change in cash and cash equivalents | (1552) | 199 |
| Cash and cash equivalents at beginning of period | 1631 | 48 |
| Cash and cash equivalents at end of period | $79 | $247 |

---

***Operating Activities***

Net cash used in operating activities mainly consists of our net loss adjusted for certain non-cash items, including stock-based compensation expense and depreciation and amortization, as well as the effect of changes in operating assets and liabilities during each period.

For the three months ended March 31, 2026, net cash used in operating activities was $1.1 million, compared to $6.8 million during the three months ended March 31, 2025. The decrease was primarily due a lower net loss during the current period.

***Investing Activities***

Net cash used in investing activities decreased to nil for the three months ended March 31, 2026, compared to $0.3 million for the three months ended March 31, 2025. The decrease was primarily due to reduced expenditures for capitalized software during the current period.

***Financing Activities***

Net cash provided by financing activities shifted to a net outflow of $0.5 million for the three months ended March 31, 2026, compared to a net inflow of $7.3 million for the three months ended March 31, 2025. The decrease was primarily driven by $8.9 million in proceeds from issuance of shares received during the prior-year period, which did not recur in the current quarter.

**Critical Accounting Estimates**

The preparation of the consolidated financial statements and accompanying notes included elsewhere in this Quarterly Report on Form 10-Q in conformity with U.S. GAAP requires us to make estimates, assumptions and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. We base our estimates on historical experience, management's best knowledge of current events, actions that the Company may undertake in the future, and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis of making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Our actual results could differ from these estimates under different assumptions or conditions. Refer to "Critical Accounting Policies and Estimates" contained in Part II, Item 7 of the Annual Report for a complete discussion of our critical accounting policies and estimates. There have been no material changes to our critical accounting policies and estimates since the Annual Report.

Item 3. <u>Quantitative and Qualitative Disclosures About Market Risk</u>.

As a smaller reporting company, we are not required to provide this information.

Item 4. <u>Controls and Procedures</u>

**Disclosure Controls and Procedures**

We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) that are designed to provide reasonable assurance that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, we recognize that no controls and procedures, no matter how well designed and operated, can provide absolute assurance of achieving the desired control objectives.

In accordance with Rules 13a-15(b) and 15d-15(b) of the Exchange Act, management, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, carried out an evaluation of the effectiveness of our disclosure controls and procedures as of March 31, 2026 and determined that the disclosure controls and procedures were effective at a reasonable assurance level as of that date.

**Internal Control Over Financial Reporting**

There were no changes in our internal control over financial reporting (as the term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the first fiscal quarter of the fiscal year ending December 31, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**TEN Holdings, Inc.**

**PART II - OTHER INFORMATION**

Item 1. <u>Legal Proceedings</u>

We are not currently involved in any material legal proceedings, other than as disclosed below. From time-to-time we are, and we anticipate that we will be, involved in legal proceedings, claims, and litigation arising in the ordinary course of our business and otherwise. The ultimate costs to resolve any such matters could have a material adverse effect on our financial statements. We could be forced to incur material expenses with respect to these legal proceedings, and in the event that there is an outcome in any that is adverse to us, our financial position and prospects could be harmed.

On October 27, 2025, the Company received a grand jury subpoena from the U.S. Attorney's Office in connection with an investigation in the Southern District of New York. The subpoena calls for the production of documents relating to the Company's initial public offering. The Company has produced records in response to that grand jury subpoena. Subsequently, the Company received an additional DOJ request for information to include documents and communications relating to four contracts the Company executed after its IPO. The Company is complying with this additional request for information.

On October 28, 2025, the Company learned that the SEC is conducting a related investigation pursuant to its authority. On March 10, 2026, the Company received a subpoena for documents from the SEC, which also calls for the production of documents and communications related to the Company's initial public offering and other items. The Company is aware that its former Chief Executive Officer also received a SEC subpoena that seeks records and communications relating to these investigations.

The Company is fully cooperating with both investigations and will comply with its obligations under the subpoenas. The Company cannot predict the scope or timing of the investigations, the resolution or the outcome of the investigations, the costs or the potential impact on the Company.

As of the reporting date, the investigations remain ongoing, no conclusions have been reached, and no final determinations have been made.

Item 1A. <u>Risk Factors</u>

As of the date of this Quarterly Report on Form 10-Q, there have been no material changes to the risk factors disclosed in our Annual Report on Form 10-K filed with the SEC on March 18, 2026.

Item 2. <u>Unregistered Sales of Equity Securities and Use of Proceeds</u>

*Sales of Unregistered Securities*

During the three months ended March 31, 2026, we did not issue any unregistered shares of common stock.

*Use of Proceeds*

 

Not applicable.

*Purchase of Equity Securities*

 

We did not repurchase any shares of common stock during the three months ended March 31, 2026.

Item 3. <u>Defaults Upon Senior Securities</u>

None.

Item 4. <u>Mine Safety Disclosures</u>

Not applicable.

Item 5. <u>Other Information</u>

None.

Item 6. <u>Exhibits</u>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Incorporated by Reference**<br> **(Unless Otherwise Indicated)** | **Incorporated by Reference**<br> **(Unless Otherwise Indicated)** | **Incorporated by Reference**<br> **(Unless Otherwise Indicated)** | **Incorporated by Reference**<br> **(Unless Otherwise Indicated)** |
| <br>**Exhibit Number** | <br>**Exhibit Title** | **Form** | **File** | **Exhibit** | **Filing Date** |
| 3.1 | [Articles of Incorporation](https://www.sec.gov/Archives/edgar/data/2030954/000149315225021532/ex3-1.htm) | 10-Q | 001-42515 | 3.1 | November 10, 2025 |
| 3.2 | [Bylaws](https://www.sec.gov/Archives/edgar/data/2030954/000149315225021532/ex3-2.htm) | 10-Q | 001-42515 | 3.2 | November 10, 2025 |
| 10.1 | [Corporate Support and Funding Agreement, dated March 18, 2026, by and between V-Cube, Inc. and the Registrant](https://www.sec.gov/Archives/edgar/data/2030954/000149315226011249/ex10-29.htm) | 10-K | 001-42515 | 10.29 | March 18, 2026 |
| 4.1 | [Specimen Stock Certificate](https://www.sec.gov/Archives/edgar/data/2030954/000149315224040936/ex4-1.htm) | S-1 | 333-282621 | 4.1 | October 11, 2024 |
| 31.1 | [Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ex31-1.htm) | Filed herewith | Filed herewith | Filed herewith | Filed herewith |
| 32.1\* | [Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ex32-1.htm) | Furnished herewith | Furnished herewith | Furnished herewith | Furnished herewith |
| 101.INS | Inline XBRL Instance Document | Filed herewith | Filed herewith | Filed herewith | Filed herewith |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document | Filed herewith | Filed herewith | Filed herewith | Filed herewith |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | Filed herewith | Filed herewith | Filed herewith | Filed herewith |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | Filed herewith | Filed herewith | Filed herewith | Filed herewith |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | Filed herewith | Filed herewith | Filed herewith | Filed herewith |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | Filed herewith | Filed herewith | Filed herewith | Filed herewith |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | Filed herewith | Filed herewith | Filed herewith | Filed herewith |

---

\* In accordance with Item 601(b)(32)(ii) of Regulation S-K, the certification furnished in Exhibit 32.1 herewith is deemed to accompany this Form 10-Q and will not be deemed filed for purposes of Section 18 of the Exchange Act. Such certification will not be deemed to be incorporated by reference into any filings under the Securities Act or the Exchange Act.

**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 hereunto duly authorized.

Date: May 15, 2026

---

| | |
|:---|:---|
| **TEN Holdings, Inc.** | **TEN Holdings, Inc.** |
| By: | */s/ Virgilio D. Torres* |
|  | Virgilio D. Torres |
|  | Chief Executive Officer and Chief Financial Officer |

---

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Virgilio D. Torres, certify that:

1. I have reviewed this report on Form 10-Q of TEN Holdings, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 15, 2026

---

| |
|:---|
| */s/ Virgilio D. Torres* |
| Virgilio D. Torres |
| Chief Executive Officer and Chief Financial Officer |
| (Principal Executive Officer and Principal Accounting and Financial Officer) |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

The undersigned hereby certifies, in his capacity as an officer of TEN Holdings, Inc. (the "Company"), for the purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:

(1) The Quarterly Report of the Company on Form 10-Q for the quarter ended March 31, 2026 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 15, 2026

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| |
|:---|
| */s/ Virgilio D. Torres* |
| Virgilio D. Torres |
| Chief Executive Officer and Chief Financial Officer |
| (Principal Executive Officer and Principal Accounting and Financial Officer) |

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